HR as Transformation Partner in Maruti Suzuki India Ltd.

The Indian business landscape is marked by uncertainty, turbulence, hyper-competition, and non-linear growth, as exemplified by the automobile sector. Increasing competition from foreign automobile organizations and homegrown ones such as Tata Motors are posing a threat to the market leader, Maruti Suzuki India Ltd. A fierce battle for market share is ensuing among these automobile giants. However, Maruti Suzuki has succeeded in maintaining its leadership position. Yet with more companies venturing into the territory of Maruti Suzuki — the small car segment — the threat to Maruti Suzuki’s market share is looming larger than before.

This case illustrates Maruti Suzuki’s journey and depicts the changes in its organizational strategy, HR strategy, and work culture in response to new challenges. Maruti Suzuki had to change from a government-owned organization and a monopoly, to a firm capable of competing with world-class automobile companies. This case describes the various challenges faced by the organization and how HR has assisted in bringing about much-needed transformation. The challenges include having to create a performing workforce, changing the mindset of the employees, coping with cross-cultural issues and, most significantly, engaging in breakthrough innovation. HR needs to create an organizational culture that not only supports breakthrough innovation but also helps retain employees.