Select an organisation or industry as the case study for your report.Identify some of the key challenges for recruiting the workforce forthis organisation/industry, and recommend strategies to address thesechallenges. Your report should make reference to factors such as laboursupply/demand, organisational image, demographic issues (such as an ageingworkforce, generations, diversity etc), as well as recruitment strategies such asemployer branding and types of advertising.
With increasing competitiveness, globalization, deregulation, technological revolution has created a need for human resource management. There is an ever increasing necessity to capitalize on the particular challenges in the changing business environment. It is important for a company to be able to fruitfully stay in front of the competition. Every company needs an effective human resource management structure to contribute as a noteworthy contributor (Armstrong & Taylor, 2014; Stumpf, Doh & Tymon, 2010).
Maruti Suzuki India was formerly known as Maruti Udyog Limited. It is a famous automobile manufacturer and a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki Motor Corporation. The company is famous for manufacturing Cars like: Ertiga, Alto, Swift, Zen, Celerio, Swift DZire, SX4 and Omni etc. Human resource is one of the foremost objectives in an organization to manage employees. The report focus upon the human resource challenges in Maruti. It provides readers with the issues that have lead to underperformance of employees. Following issues will be discussed in the report:
- Organizational image
- Demographic issues
- Recruitment strategies
The report aims is to make an inference regarding the major challenges mentioned above regarding Maruti. The report further aim is to critically assess internal information regarding Maruti’s major HRM issues and to provide with recommendations in order to improve the operations.
This report describes the HRM challenges faced by Maruti in current competitive business scenario. It describes the weakness of HRM process and further discusses the recent challenges and changes that need to be incorporated.
The recruitment and selection procedure at Maruti is based on the availability of job position within the organization. It is done by examining the candidate for the particular job and on the basis of merits. The HR department is responsible for conducting the recruitment and selection process to maintain the availability of staff (Han, 2015).
The objective of Maruti is to organize the activities by arranging effective organizational policies. All these factors help the organization in managing the requirement of employees. The recruitment policies provides with an effective framework for successfully filling up the vacancies. Maruti is bounded by the recruitment policies and procedures. These procedures help them to attain a sustainable position. The human resource department at Maruti is responsible for retaining the employees (Storey, 2007). The HR Department has involved itself in planning and management by filling the gaps in between The 4 stages of HR planning need to be considered:
Maruti needs to understand the use of the Labor stock take. The purpose is to find the total number of employees available in the organization it is important to analyze the total number of employees leaving and joining the organization. There is a necessity to analyze the number of employees through performance review and other tools. All these techniques will help in managing the organization (Saini & Budhwar, 2013).
It is a process to forecast the demand and supply of the required employees. There is a necessity to make an estimation regarding the demand for employees. Internal supply is related to transfers, promotions etc. The source of availability of employees is important for the organization (Harzing & Pinnington, 2010).
It is important for Maruti to forecast the accurate demand of the human resource as per the vacancy. There are various factors that directly affect the demand forecasting at Maruti:
- Supply and demand of jobs
- Literacy rate
- Population rate
- Industry and expected growth rate and levels
- Technological development
The key issue is relating to implementation of policies by addressing to the issues in an effective way. There is a necessity to improve the overall productivity by enhancing the overall productivity in HRM. The human resource planning is important to achieve desired results. The challenges need to be managed in an effective way in order to manage the inaccuracy (Boxall & Purcell, 2011).
In India there is competition in the field of automobile industry. It has become important to manage employees in an effective way by creating solutions. Talent acquisition is one of the biggest problems in India. In India the major issues are relating to Attracting the best talent with critical skills, retaining the best and enhancing productivity (Kapil, 2015). These are the top three human resource challenges Indian organizations anticipate in the coming year. Human resource planning is one of the major issue in today’s competitive business scenario is related with the HR policies. Human resource planning is one of the processes that helps in ensuring right number and right kind of people to b recruited in an organization. It is a method for determining human resource requirements and action plans in order to meet the growing needs. Human resource planning is defined as a strategy to utilize, improve and retain efficient employees. An efficient use of HRM policies is an issue for the organization in meeting the objective. The purpose of Maruti is to recruit efficient employees in order to manage efficiency at work (Sanders, Shipton & Gomes, 2014).
The Manesar plant Of Maruti witnessed three labor strikes in 2011 and a lockout in July 2012 due to brutal murder of General Manager (HRM). The strike led to a loss of a loss of INR 25 Billion. The issue aroused due to workers intention to form of an independent union at the Manesar plant. This has caused a reduction in overall productivity (Bhatnagar, Budhwar, Srivastava & Saini, 2010). Under such a situation it is difficult to retain efficient employees. It is one of the key parameter in gaining organizational objectives. Maruti is facing issues in retaining the employees due to strikes and lockouts as mentioned above (Noe, Hollenbeck, Gerhart & Wright, 2007). The other competitors are providing with competitive packages to their employees. Employees are switching to other companies due to attractive packages and perks. This demonstrates that an ineffective human resource activity has a direct impact on its image (Butler & Eeden, 2017).It is well stated by Vinod Rai, head–supply chain & vendor HR, that The labor turbulence results in the loss of manufacture and market share. There are issues in wage disparities among the regular and contracted workers. One of the issues faced by the company is in terms of lack of connectivity and communication amid management and the workers. This issue have led to breakdown of the internal system and led adverse effect on the productivity (Agrawal, 2016; Durani, Trivedi & Durani, 2015).
Recruitment strategies at Maruti
Maruti Suzuki India has a business purpose of manufacturing two million cars by 2020. Another issue is regarding the demographic issues like age, diversity, and generation gap. .It is due to this fact both employees and customers are facing issues. In India there is a gap found in working between the young and old generation. Ineffective HRM practices while managing the age gap is one of the causes that are forcing employees to quit the organization. Another problem is related with attracting talented employees in the organization. There are problems where it has become difficult for the organization to attract employees from other organization. Poor human resource structure has led to adverse report regarding the HRM practices resulting in attracting and retaining the talent and skills. This has resulted in increasing ineffectiveness in HRM policies. Employees are not happy with the organizational policies. This is one of the reasons the employees inside the organization are not satisfied. There is already excessive competition and gap in business practice causing disparities (Bruce, 2016; Saini & Budhwar, 2007).
Maruti is one of the reliable brands in India trusted by every generation due to its price structure. The Manesar plant Of Maruti has created an adverse situation in the organization lowering the employee’s morale. Employees do not feel motivated due to the incident. Employees were feeling insecure due to the situation (Shukla, 2014). It caused a huge gap in managing the fear. It is due to this reason the organization is facing issues pertaining to employees job security (Budhwar, 2009). In such a condition, the HR department plays a key role in managing the organization by minimizing the number of staff cuts and keeping staff conversant of their potential to get hold of an ongoing role (Tran, 2015). Lack of morale among the employees has caused a wide gap in achieving targets.
Another issue is pertaining to manage the demand and supply of employees. It is the role of the HRM department to take care of the availability of employees. In case of vacancy it is important to fill the job position through filing it with a right person. The HRM department needs to provide with proper training. The factory employees should be given proper training in order to manage the orders in an effective way (Leydon, 2017). The employer should motivate the employees so that they work more efficiently. Minimal training is one of the challenging factors that are causing the overall productivity of the employees (Schuler & Jackson, 2008; Sparrow, Brewster & Chung, 2016).
Forecasting the supply of labor
The company is known as one of the famous company in India and has one of the most talented HR personnel. In such a situation it is recommended to manage the issues in an effective way. There is a necessity to coordinate the efforts by the mean of arranging business affairs in an effective way. In order to reduce the employee’s turnover it is important for Maruti to find different ways through which they can look for new process in order to reduce employee’s turnover. Firstly, it is recommended to introduce an attractive incentive system. This will help in motivating the employees in an effective way. The employees will feel motivated in the organization. This will create a sense of responsibility within them. More than incentive the company can offer non-financial incentives that will motivate employees. Employees are facing issues in dealing the burden and feel de-motivated. In such a situation the non-financial incentives will help the organization in dealing with the issues (Hamel, 2008).
Training and development is one of the critical part of the organization growth. Employee’s growth and development is directly related with the organization growth. It is important for the organization to develop effective training & development process from time to time that will help in organizational growth. This will benefit the organization in making remarkable growth. Training should be given in a way it allows the organization in meeting the goals. Proper training structure will help in development program to retain employees. An effective training and development Program provides employee with an effective training and development program that will help in filling the gap. Maruti is bounded by the recruitment policies and procedures. These procedures help them to attain a sustainable position. The human resource department at Maruti is responsible for retaining the employees (Price, 2007).
Lastly, it is suggested the organization should introduce attractive activities at work to motivate them in order to gain high productivity. Employees feel less motivated at work causing a decrease in overall productivity. In such a condition attractive recruitment policies will help in managing the activities in an effective way. Proper coordination is required to manage the gap in the organization while eliminating the ineffective activities (Trehan & Setia, 2014).
To conclude, it is important for Maruti to strengthen the HRM policies by enhancing the Human resource process. Currently the organization is going through multi-fold issues of human resource practice. The report provides with an effective procedure to meet the challenges faced by the organization through different techniques. It is suggested that the organization requires an effective policies in order to strengthen the current status. Moreover it is important to stabilize the situation by allowing employees to become an integral part of the organization. This will allow them in gaining a sustainable position in order to get effective results.
Forecasting the demand for employees
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