Maruti Incident: How Can HR Prevent Future Issues and Foster Harmony?

Hi team, please address issues that were not previously resolved, as they have led to the incident. What preventive and corrective actions should the HR team focus on? We need to discuss this in order to foster harmonious relations within our industry. Seeking your inputs, team.

Good to note that you have taken up this topic for discussion. I had taken up a similar topic earlier. You can click the following link: http://citehr.com *[link fixed]*

Reasons for the Problem

The major reasons why this problem happened are as follows (this is my viewpoint):

• Overdependence on contract workers.

• Heavy pay disparity between contract workers and permanent employees.

• No weekly off for contract workers (refer to Business Standard of 30-Jul-2012).

• Senior managers living in ivory towers. They had brushed under the carpet the "us and them" attitude.

• Employers should empower HR. They attach HR to their apron strings.

• Management science is not above good old proverbs. Management did a lot of saving by employing and exploiting contract workers. But everything was negated in just a couple of hours. This reminds me of the good old Hindi proverb "Sou Sunar Ki, Ek Luhar Ki".

• Companies like Maruti Suzuki worry about Corporate Social Responsibility (CSR). But then Employee Social Responsibility (ESR) precedes CSR. Each company should note this.

• Lastly, HR should stop playing second fiddle to the management. When employees' rights are trampled, they should not play second fiddle. When Rome was burning, Nero was playing the fiddle. When HR plays the second fiddle, factories like Maruti Suzuki are bound to burn.

Regards,
Dinesh V Divekar

In my opinion, the major reason for this incident was just an ego clash. It is sad to know that these minor issues can result in the loss of innocent lives. The corrective actions have been taken by the company and management, but what HR should focus on are preventive measures, which can be our strength.

Preventive Measures for HR

In India, we often have to rely on contractual labor, and while doing so, we should ensure that diversity—regional ratio and sex ratio—are maintained. The company and HR should be open to supporting labor unions. By collaborating with them, we can truly change the entire scenario.

Regards

I think both Dinesh V Divekar and Aditi Jain have provided valid perspectives on the issue—though Aditi Jain's assumption that the WHOLE and ONLY reason is due to 'ego clashes' doesn't quite align, considering the nature, scope, and extent of the damage done (if we look beyond the 'physical aspect' of the incident).

While I do agree with Dinesh's comments regarding 'empowering HR', I am not so sure if this specific aspect can be applied to the Maruti incident. Suzuki has a reputation for empowering most of their employees/functions—with the condition that performance results must follow, which is understandable and justifiable.

Somehow, the 'profit-only' motive seems to have overridden all other operational aspects in the Non-IT sector—there doesn't seem to be any other logical explanation for the over-dependence on contract labor (as per Mr. Bhargava—Chairman, Maruti—in one of the TV programs, it's ~60% in Maruti, which by any account is quite large).

I think it's here that HR of Maruti failed. Who would have even a semblance of 'ownership/sense-of-belonging' towards the employer when he/she knows that their wages come in ONLY if they attend work and they can be fired without notice? From a purely HR perspective, the Maruti HR ought to have seen this situation coming when such is the mix of the labor force.

In a way, Aditi Jain has a point in saying 'In India we have to rely and depend on contractual labor...'. But it's, by and large, the same the world over.

The KEY would and ought to have been to maintain the Right Balance. Human nature being what it is, when someone sees another person getting more than him/her for the same work, there's bound to be some sort of a counter/reaction—in which direction and in what way and force totally depends on the overall circumstances.

I think the Maruti HR failed to gauge or rather misinterpreted the silence of the workers as 'acceptance' of the company policies/norms.

Another aspect that's still open-ended seems to be the involvement of outsiders in this incident (should be clear only after the Enquiry is complete). Frankly, I too wouldn't rule it out altogether. Given the state and nature of our Indian politics, it wouldn't be surprising to see any political party surreptitiously backing any violent actions of the staff—as long as their involvement doesn't come out into the open.

That's my take on the incident/issue.

I do hope others too contribute to this thread—and I am with Dinesh in appreciating Sridharan for posting.

The way I see it, this incident/issue has all the portents of becoming a classic coursework Case-Study in all MBA-HR Institutions in the time to come, since there seem to be multiple dimensions to this incident.

Regards,
TS

Hi team, these are all very good points to consider and work on. Thank you for providing such valuable input regarding the incident. If many team members share their views and learnings, it will be beneficial for all HR professionals.

Thanks, team.

Regards, Sridharan. K

Mr. Dinesh has highlighted valid points in favor of HR as a remedial action to avert such incidents. I agree with these points. In my opinion, an HR professional at the GM level should be empowered to implement necessary measures to prevent such incidents while maintaining transparency with the management. However, despite these efforts, failures still occur. I believe that there may have been a lack of understanding in terms of human values and ethical practices. Companies, such as Maruti, should not overlook these aspects when formulating their policies.

Furthermore, it is crucial for decision-makers to assess changes in human behavior and monitor shifts in employee behavior through effective HR practices. I believe that HR is the department primarily responsible for engaging with human resources and creating a conducive work environment that upholds human values.

Thank you,
Bijay

I appreciate that such an issue was taken for discussion; that shows how concerned all of us are about what happened in Maruti Udyog Manesar Unit. I am in agreement with all the comments above. But what I personally feel is that it's a total failure of the management system followed in Maruti and similarly replicated in other industries. Ultimately, most people start blaming the failure of the HR Department in Maruti and talk about empowering the HR department, but in my opinion, it's not the failure of the HR department, nor have they had less power; they were fully empowered.

Failure of Maruti's Management System

If you see the entire story, one can notice many things like a huge pay difference between Maruti Udyog employees and contract employees performing the same job (this is a violation of the basic fundamental right "Right to Equality"). There is an ego clash between Maruti Udyog employees and contract employees, a violation of social harmony. A business is the custodian of society's assets; it takes everything from society—energy, raw materials, and manpower. It sells back its products to society, exploits society's natural resources, and contributes to pollution in society. So, it becomes essential for them to behave in a socially responsible manner. It is the responsibility of the business to maintain social harmony, take steps to maintain social harmony and peace in society.

In the race to earn profit, they have forgotten fundamentals and allowed the business to be driven by the thought of "Profit at any cost." They have allowed the practice of exploitation of social resources. It has resulted in an outburst in such a manner that is not acceptable or supported by any culture. This incident has not only damaged Maruti Udyog but also damaged the social image of India, especially Gurgaon.

Responsibility Beyond the HR Department

The wrong management policy of Maruti Udyog should have been controlled and rectified by all departments, not only by the HR department. All employees of Maruti live in the same society where other exploited employees live (the same city Gurgaon, not talking about housing society). This could have escalated into some other form outside the plant as well. At that time, how could they have saved themselves and their families? Maruti Management at that time escaped by saying it's a local or individual problem, so it was the responsibility of all Maruti Udyog employees to stand against such exploitation of their fellow society members.

This shows it's a failure of the management system, which has failed to create socially responsible employees and build a sense of ownership among all associated with it. A wrong management system cannot be justified by blaming any department for failure or any outsider for the same.

Thanks,

Yogesh S Pandey