CHANDRAGUPT INSTITUTE OF MANAGEMENT

A REPORT ON MARUTI SUZUKI DESIGN,

STRUCTURE AND APPLICATIONS

ORGANISATIONAL THEORY REPORT

GROUP – 9 (SECTION A)

SUBMITTED TO: SUBMITTED BY:

PROF. RAJESH KUMAR ASHISH RANJAN (120014)

MANSI (120023)

PRERNA SINHA (120032)

SHANTANU RAJ (120043)

SHIVANI KUMARI (120047)

VISHAL PRATAP SINGH (120060)

 ACKNOWLEDGEMENT

We express our gratitude to Prof. Rajesh Kumar for giving us the opportunity to work on the
project “ORGANISATIONAL STRUCTURE, DESIGN AND APPLICATIONS”. It was
delight to have a chance to work on this project and every member of group 9, participated
actively in the project. We would also take the opportunity to thank our director Sir Dr. V.
Mukunda Das for motivating us to work in a team. This project is a small attempt to express
our gratitude towards our parents and teachers.

Thank You!
 S.NO CONTENT PAGE NO.

1. About the company

1

2. Vision and Mission

1

Organizational Size
3. 2

Organizational Environment
4. 2-3

Organizational Effectiveness
5. 3-4

Organizational Strategy
6. 4-5

Technology
7. 6

8. Organizational Design
7

9. Evolution
7–9

10. References
10

TABLE OF CONTENTS

1. INTRODUCTION
A brief about the organization:

Maruti Udyog ltd. was established in Feb 1981 an act of parliament to meet the growing
demand of a personal mode of transport cause by the lack of efficient public transport system.
Suzuki motor company was chosen from seven prospective partners worldwide. A license
and a joint venture agreement were signed between Govt. of India and Suzuki Company in
Oct 1982.

Company’s founder is Sanjay Gandhi and the first manufacturing factory of Maruti Suzuki
was established in Gurugram, Haryana.

2. VISION AND MISSION

VISION of Maruti Suzuki ltd. is to be the leader in Indian automobile industry. Creating
customer delight and shareholder wealth: A ride of India.

MISSION is to provide maximum value for money to their customer through continuous
improvement of product and services

3. EFFECTIVNESS
If we look the effectiveness of Maruti Suzuki then it is mainly end focused and its change in
strategy and emphasis on developing effectiveness marketing communication was their
highlights.

4. STRUCTURE
Specialization - Maruti has functional structure and division of labor there is high degree of
specialization.

Centralization- Power is distributed within the hierarchy so, it has moderate degree of
centralization.
Formalization-The instructions, procedures are written down formally in the organization
and on the other hand departments have their own formal procedures of doing work in an
organization so that they have high degree of formalization.
Complexity- Complexity arises because of structural complexity as there is goal
-incompatibility between different departments. It has high complexity.

5. ENVIRONMENT STRATEGY
Environment strategy continuum-
Maruti Suzuki will fall under prospective because it is innovative and growth oriented and
encourage risk taking.

ENVIRONMENT-
Maruti Suzuki exists in a complex and unstable environment, meaning there is a high level
of uncertainty. When company expands into an unfamiliar or untested region they can
experience a locally stormy environment.

6. ORGANIZATION SIZE
 • Produce 15 million vehicles in India
• Export 100+ to other country
• It has 3598 sales outlets across 1861 cites in in India
• It has over 45000 employees and has 35 production facilities in 23 countries.
• 133 distributors in 192 countries.

7. IMPACT OF SIZE ON ORGANIZATION

DIMENSION MARUTI SUZUKI COMPARISION WITH

SIZE
Complexity High positive

Formalization High Positive

Centralization Moderate Positive

8. TECHNOLOGY
• Technology refers to the information, equipment, techniques and processes required
to transform inputs into outputs in the organisation.

• Technology looks at how the inputs are converted into outputs. There is also
agreement that the concept of technology, despite its mechanical or manufacturing
connotation, is applicable to all types and kinds of organisation.

9. WOODWARD’S RESEARCH
• So our organization Maruti Suzuki comes under Mass organization so it will be
moderately complex organization.

• This defines technology as the information, equipment, techniques.

• Under Woodward's research, as the technology being more complex in different

organizations i.e. a unit organization will be less complex than mass and process
production being most complex.
  PERROW’S CONTRIBUTION

Two underlying dimensions of knowledge technology:

a) The first dimension considers the number of exceptions encountered in one’s work.
Labeled task variability, these exceptions will be few in number if the job is high in
routineness.

b) The second dimension Analyzability assesses the type of search procedures followed to
find successful methods for responding adequately to task exceptions.

• These two dimensions—task variability and problem analysability— can be used to

construct a two-by-two matrix.

• The four cells in this matrix represent four types of technology: routine, engineering,
craft, and non-routine.
• Routine technologies (cell 1) have few exceptions and easy to analyse problems. The
mass-production processes used to make automobiles i.e. in Maruti Suzuki belong in
this category.

• Engineering technologies (cell 2) have a large number of exceptions, but they can be
handled in a rational and systematic manner.

• Craft technologies (cell 3) deal with relatively difficult problems but with a limited set
of exceptions.

• Finally, non-routine technologies (cell 4) are characterized by many exceptions and

difficult-to-analyse problems.

• As Maruti Suzuki comes under routine so it will be having high formalisation, Wide
Planning and rigid rules.s define technology as the information, equipment,
techniques

 THOMPSON’S CONTRIBUTION
 • Maruti Suzuki will come under long linked technology as tasks or operations are
sequentially interdependent like manufacturing, designing etc. This technology is
characterized by a fixed sequence of repetitive steps and being a automobile industry
they all have to follow the same task.

FOR MARUTI SUZUKI

• Formalization - high

• Complexity - moderate

• Centralization - decentralized

• Technology - routine (highly well-defined and analysable, and few exceptions).

10. ORGANISATIONAL EVOLUTION

For any company/organization there are four stages in evolution:-

• Introduction

• Growth

• Maturity

• Decline
 GROWTH THROUGH CREATIVITY

• The Dentsu Aegis Network team is now handling digital creative, social, and media
duties for Maruti Suzuki corporate, and for all model brands other than the “Nexa”
portfolio.

• The idea behind having Dentsu Aegis Network as our creative partner in offline is to
have a coherent communication strategy in order to be more productive and efficient.“

• Changing media consumption behavior of consumers, necessitating the need for a

paradigm shift in digital thinking and delivery.

• Dentsu Creative Impact will be in a position to address two key focal points for
Maruti Suzuki - deliver integrated brand solutions, and infuse a layer of brand vision
to the digital delivery.

 GROWTH THROUGH DIRECTION

 GROWTH THROUGH DELEBERATION

• Maruti has a Decentralized structure

• Formalization-The instructions, procedures are on paper formally in the organization

and on the other hand departments have their own formal procedures to do work
within an organization in order to achieve their objectives promptly.

• Span of control-The span of control is generally at the very top level is 3-6, 4-8 at the
center level management and 0-8 at the low level management. In production level at
lower level the span of control is at 40-50.

 GROWTH THROUGH COORDINATION

• The control in Maruti Suzuki plant is an example for the other organizations.

• They have managers to review, evaluate, and line control and final inspection.

• Maruti Suzuki manages time and efforts for the higher production in there plant.

 GROWTH THROUGH COLLABORATION

• Maruti collaborate with Government of India, under the United Front coalition

and Suzuki Motor Corporation over the joint venture.

• Suzuki Motor Corporation gained the controlling stake.

• The success of the joint venture led Suzuki to increase its equity from 26% to 40% in
1987 and to 50% in 1992, and further to 56.21% as of 2013.

• In 1982, both the venture partners entered into an agreement to nominate their
candidate for the post of Managing Director and every Managing Director would have
tenure of five years.