Organising $ Managing for Performance
INTRODUCTION This assessment throws light on Organization Behaviour and Strategic HR issues linked with Maruti Suzuki. The aim is to critically evaluate the recent spate of strikes, note the important casual factors, and recommend how the company could overcome the complexities whilst improving performance.
Maruti Suzuki India Limited, a subsidiary company of Suzuki Motor Co-operation Japan, had to face revenue losses approx. 89.5 million pounds in 2011 due to workers striking, the action being led through (name the unions) (MS, 2012a). This strike revealed the company’s mishandling of its workforce - management relationship and damaged its prestige.
KK & Chauhan reported that the Manesar plant was becoming torturous for example, workers get two 7.5 minutes tea break in eight –hour work shift and within 7.5 minutes they need to remove their safety equipment, run 150 meters to grab their tea and run 400 meters away and be back in seven minutes in case they get a little bit late then abuses from supervisors not even that, supervisors sometimes deny permission for an additional toilet break but according to management 7.5 minutes where designed in a way that allowed workers enough time to have tea, snack and restroom. Further he reported that contract workers were not paid enough and were discriminated with permanent workers on basis of uniform and benefits but management argued that contract labours are paid more than the minimum wage fixed by the government. All this provoked workers and they demanded another union for Manesar facility however company wanted Manesar workers to remain under umbrella of their recognized union “Maruti Udyog Kamgar Union” but this union was basically dominated by Gurgaon facility and company has full control over this union (Economic Times, 2011)
A crucial factor leading to the outburst of the strikes appears to be a breakdown in communication between management and workforce. In addition to this there were some more OB and HR
Maruti Suzuki India Limited, a subsidiary company of Suzuki Motor Co-operation Japan, had to face revenue losses approx. 89.5 million pounds in 2011 due to workers striking, the action being led through (name the unions) (MS, 2012a). This strike revealed the company’s mishandling of its workforce - management relationship and damaged its prestige.
KK & Chauhan reported that the Manesar plant was becoming torturous for example, workers get two 7.5 minutes tea break in eight –hour work shift and within 7.5 minutes they need to remove their safety equipment, run 150 meters to grab their tea and run 400 meters away and be back in seven minutes in case they get a little bit late then abuses from supervisors not even that, supervisors sometimes deny permission for an additional toilet break but according to management 7.5 minutes where designed in a way that allowed workers enough time to have tea, snack and restroom. Further he reported that contract workers were not paid enough and were discriminated with permanent workers on basis of uniform and benefits but management argued that contract labours are paid more than the minimum wage fixed by the government. All this provoked workers and they demanded another union for Manesar facility however company wanted Manesar workers to remain under umbrella of their recognized union “Maruti Udyog Kamgar Union” but this union was basically dominated by Gurgaon facility and company has full control over this union (Economic Times, 2011)
A crucial factor leading to the outburst of the strikes appears to be a breakdown in communication between management and workforce. In addition to this there were some more OB and HR