Chapter 1 EXECUTIVE SUMMARY Management is the primary forces within any organization which coordinates the activity of its various systems and relates them to environment. The need for management arises out of the diversity and complexity of human activity. To accomplish the objective of any organization there should be an effective coordination and utilization of these human and non human recourses. The success of management in any organization is mainly due to selection and utilization of human recourses to achieve it economically, effectively and speedily. In early days the production was normally carried through the unskilled workers. These people as not having any technical background the company not only suffered losses but also the product prepared was not of the quality.The workers were selected at random basis and the proper role of HR department was in question. But these being an old and Multinational company have to make a way against all odds. So in 1997 the company personnel have made a new way to make a cost effective and productive approach to this question. The new started highiring those potential young freshers having a technical background which will prove to be cost effective and demand reactive. So now the critical role of HR comes in the way to make the job profile and the criteria to attract the potential people for the company. Thus understanding and scrutinizing from the whole slot of the people and selecting the best candidate for the
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Transcript
Chapter 1
EXECUTIVE SUMMARY
Management is the primary forces within any organization which coordinates the activity
of its various systems and relates them to environment. The need for management arises out of
the diversity and complexity of human activity. To accomplish the objective of any organization
there should be an effective coordination and utilization of these human and non human
recourses. The success of management in any organization is mainly due to selection and
utilization of human recourses to achieve it economically, effectively and speedily.
In early days the production was normally carried through the unskilled workers. These
people as not having any technical background the company not only suffered losses but also the
product prepared was not of the quality.The workers were selected at random basis and the
proper role of HR department was in question. But these being an old and Multinational company
have to make a way against all odds. So in 1997 the company personnel have made a new way to
make a cost effective and productive approach to this question. The new started highiring those
potential young freshers having a technical background which will prove to be cost effective and
demand reactive.
So now the critical role of HR comes in the way to make the job profile and the criteria to
attract the potential people for the company. Thus understanding and scrutinizing from the whole
slot of the people and selecting the best candidate for the company. Thus fulfilling the WST
scheme set by the personal and making this scheme a great success.
Chapter 2
COMPANY PROFILE
The history of Mahindra & Mahindra during World War II, when two- brothers, Mr. J.C.
Mahindra and Mr.K.C.Mahindra envisioned a much greater role for themselves in the building
and growth of independent India. Mr.J.C.Mahinra was then the advisor to the Government of
India and was the first Indian to become the Iron & Steel Controller of India.
Mr. K.C.Mahindra was then the head of the Indian supply mission to Washington, USA.
The Mahindra brothers left their flourishing career to become entrepreneurs gave shape to their
vision and created an organization to be strong pillar in the building and growth of industrial
India. The two brothers and Mr. Gulam Mohammed went on to become Pakistan’s first Finance
minister in 1947 and later on its Governor General.
Mahindra and Mohammed Ltd.was changed on January 13, 1948 to M&M Ltd. M&M
was incorporated on October 2, 1945 as a Pvt. Ltd. Company under the Indian Companies
Act,1913 and was converted into a Public Ltd company on June,1955.
M&M Ltd is the flagship company of US $ 2.59 billion Mahindra group, which has the
significant presence in key sector of the Indian economy. A consistently high performer, M&M is
one of the most respected companies in the country.
M&M has two main operating divisions :-
The Automotive Division manufacturers utility vehicles, light commercial vehicles and
there wheelers. The company has recently entered into a joint venture with Renault of France for
the manufacture of a mid-sized sedan, the Logan, and with International Truck and Engine
Corporation, USA, for manufacture of trucks and buses in India.
The Tractor (Farm Equipment) division makes agricultural tractors and implements that
are used in conjunction with tractors, and has also ventured into manufacturing of industrial
engines. The Tractor Division has won the coveted Deming application Prize 2003, making it
only tractor manufacturing company in the world to secure this prize.
M&M employees around 11,600 people and has eight manufacturing facilities spread
over 5,00,000 sq.mts. It has 49 sales offices that are supported by a network of over 780 Dealers
across the country. This network is connected to the company’s sales departments by an
extensive IT infrastructure.
M&M’s outstanding manufacturing and engineering skills allow it to constantly innovate
and launch new products for the Indian market. The “Scorpio”, a SUV developed by the
company from the ground up, resulted in the company winning the National Award for
outstanding in-house research and development from the Department of Science and Industry of
the Government in2003. In the tractor market, the company launched India’s First Tractor
technology – the Mahindra Sarpanch 595 DI super Turbo.
M&M’s commitment to technology-driven innovation is reflected in companies plans of
setting up of the Mahindra Research Valley, a facility that will house the company’s engineering
research and product development wings, under one roof.
The M&M philosophy of growth is centered on its belief in people. As a result, the
company has put in place initiatives that seek to reward and retain the best talent in the industry.
M&M is also known for its progressive labour management practices.
In the community development sphere, the company has implemented several programs
that have benefited the people and institutions in its areas of operations. On the occasion of its
60th anniversary, the company announced a range of CSR activities supported by a commitment
of 1% of profit after Tax for its CSR initiatives.
Farm Equipment Sector:-
The origin of Farm Equipment Sector lies in the formation of a Joint Venture in 1963
between the company, International Harvester Inc., and Volta’s Limited, christened the
International Tractor Company of India (ITCI).This enterprise was a shot in the arm for the green
revolution then beginning to sweep the country. The launch of high-performance tractors played
a vital role in the mechanization of Indian agriculture.
In 1977, ITCI merged with M&M and become its Tractor Division. After M&M’s
organizational restructuring in 1994, this division was called the Farm Equipment Sector.
M&M’s Farm Equipment Sector is the largest manufacture of tractors in India with
sustained market leadership of over 19 years. The Farm Equipment Sector is the First Tractor
Company in the world to win the “Deming” Application Prize. Also, it is the fourth
company in India and the 10th in the world, outside Japan, to win this Prize. It designs,
develops, manufactures and markets tractors as well as implements that are used in conjunction
with Tractors. Horsepower into the lower segment of 25HP, mid-segment of 35 HP and higher
segment of 45 HP and above segments the tractor industry in India. The Company’s Farm
Equipment Sector has a presence in all these segments across all states.
The Farm Equipment Sector has also ventured into manufacturing of Industrial Engines.
M&M industrial engines are used for various applications like Genset, Industrial, Construction,
and marine Compressors etc. These engines are manufactured at the company’s state of art
Engine Assembly Plants at Kandivli and Nagpur.
M&M has two main tractor manufacturing plants located at Mumbai and Nagpur in
Maharashtra.Both these plants are certified for ISO 9001, QS-9000 and 14001. Apart from these
two main manufacturing units, the Farm Equipment sector has satellite plants located at Rudrapur
in Uttaranchal and Jaipur Rajasthan.
The Farm Equipment Sector of the company has a strong and extensive dealer network of
over 450 dealers for sales and service of tractors and spare parts. 28 area offices, situated in all
over the major cities and covering all the principles states, manage this dealer network.
M&M tractors have earned goodwill and trust of more than 8,00,000 customers and the
Mahindra has come to be recognized as a powerful symbol of productivity and performance. In
addition to capturing the domestic market, M&M’s Farm Equipment Sector has found
significant success in the international market. Whilst around 90% of our tractor exports tractors
to neighboring countries like Uganda, Nigeria, and Zambia etc.Mahindra USA , a wholly owned
subsidiary based in the USA, has established a network of 140 dealers.
Automotive Sector:-
M&M automotive division was created in 1994 following an organizational restructuring,
but its origins go back to1954. That was when the company entered into collaboration with
Willys Overland Corporation (now part of the Daimler Chrysler group) to import and assemble
the Willys Jeep for the Indian market. M&M began producing light commercial vehicles (LCVs)
in 1965. Ever since its inspection, the company has focused on developing its own manufacturing
capabilities. As a result of its relentless ambition in this direction, M&M began indigenously
producing vehicles within a short span of collaboration agreement with Willys.
Over the years the Mahindra brand in utility vehicles has come to represent high quality,
ruggedness, durability, reliability, easy maintenance and operational economy. These are the
qualities that have endeared the vehicle to individuals as well as institutions such as the Indian
armed forces. M&M enjoys a market share of more than 50 % in this segment.
Automotive Division:-
M&M’s automotive division is in the business of manufacturing and marketing utility
vehicles and LCVs. It is the leader in this segment, with a market share in excess of 50 percent.
The M&M brand symbolizes ruggedness, durability, reliability, easy maintenance and
operational economy. The customer profile here includes individuals, traders, entrepreneurs,
contractors, tour operator’s taxi owners, car hire companies, government departments and
institutions, and the Indian army.
Auto Mart India Ltd:-
Auto Mart India is a business-to-customer portal that offers a comprehensive picture of
the Indian Automobile market. Launched in collaboration with a group of partner organizations,
it offers a wide range of new vehicles and a virtual Marketplace to buy or sell used automobiles.
The site also features car reviews, price information, technical comparisons of different models,
and ratings to help the customer make an informed decision. Several other international markets
are being developed to expand M&M’s global reach in the Farm Equipment Sector.
Performance Review:-
Automotive Sector:-
The Automotive Sector of company continues to be a dominant player in the Multi Utility
Vehicles (MUV) segment. The company also significantly improved its position in the large
three-wheelers category. During the year under review, company produced 1,24,795 vehicles
(i.e.MUV and LCV) and22,230 there wheelers as compared to 99,874 vehicles and 17,796 three
wheelers in the previous year. Company entered various new export markets including South
Africa, Uruguay, UAE and Malaysia. With a view to enter into the passenger car segment, a
growing segment of the Indian Automotive Sector, company has entered into a joint venture with
Renault, one of the world’s largest automobile manufactures, to introduce their new sedan,
“Logan”, in India. Company will benefit significantly from this joint venture in which it will hold
a majority stake.
Segments Results:
As required by the new Standards, the results of the group have also been reported on a
segment basis. The results achieved by major business segments of the group are given below.
CORE VALUES:-
Our Core values are influenced by our past tempered by our present and are designed to
shape our future. They are an amalgam of what we have been, what we are and what we want to
be.
These values are the compass that will guide our actions, both personal and corporate.
They are:
Good Corporate citizenship: As in the past, we will continue to seek long-term success that is
in alignment with our country’s needs. We will do this without compromising on ethical business
standards.
Professionalism: We have always sought the best people and given them the freedom and the
opportunity to grow. We will continue to do so. We will support innovation and well-reasoned
risk-taking, but will demand performance.
Customer First: We exist and prosper only because of our customers. We will respond to their
changing needs and expectations speedily, courteously and effectively.
Quality Focus: Quality is the key to delivering value for money to our customers. We will make
quality a driving value in our work, in our products and in our interactions with others. We will