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Maruti Udyog Limited (MUL)
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system.
Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world).
A licence and a Joint Venture agreement was signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.
The objectives of MUL then were:
1. Modernization of the Indian Automobile Industry.
2. Production of fuel-efficient vehicles to conserve scarce resources.
3. Production of large number of motor vehicles which was necessary for economic growth.
Maruti Udyog underlying philosophy that has moulded our workforce into a team with common goals and objectives. Its Employee-Management relationship is therefore characterized by
Participative Management.
Team work & Kaizen.
Communication and information sharing.
Open office culture for easy accessibility
To implement this philosophy, Maruti has taken several measures like a flat organizational structure. There are only three levels of responsibilities ranging from the Board Of Directors, Division Heads to Department Heads. Other visible features of this philosophy are an open
office, common uniforms (at all levels), and a common canteen for all.
This structure ensures better communication and speedy decision making processes. It
also creates an environment that builds trust, transparency and a sense of belonging
amongst employees.
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