People Management Fiasco in Honda Motors and Scooters India: Presented by

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PEOPLE

MANAGEMENT
FIASCO IN HONDA
MOTORS AND
SCOOTERS INDIA
Presented by:

Supriya Sawant 48

Aparna Iyer 126

Sananda Sengupta 151

PROCESS OF STRATEGIC
MANAGEMENT

GOALS OF HMSI
LONG TERM GOAL: Products were
intended to be vehicles for change: To
change the way people worked, travelled
and lived.
Develop a strategy for long term cooperation with its employees and rebuild
the brand image of Honda.
SHORT TERM GOAL: To triple the
Gurgaon plants production capacity to
0.6 million motorcycles and 1.2 million
two-wheelers by end of fiscal 2007-2008.

CORPORATE STRATEGY

Growth
Company had
aggressive growth
and expansion plans
and wanted to triple
productivity

BUSINESS UNIT
STRATEGY

Cost Leadership
To supply products
of highest quality,
yet at reasonable
price to ensure
complete customer
satisfaction

HR STRATEGY

Retention and
Minimizing Labour
Cost
Company paid
above average
wages and to reduce
labour cost it hired
contract labourers
who formed 33% of
its workforce.

HR PRACTICES -STRATEGIC ALIGNMENT (STRENGTH)

Focuses on candidate
potential
Introduced
Standardized tests and
realistic job preview
Employed director of
assessment for
evaluation
Formal socialization
process to combat
quick quits
Meeting with HR
Expectation meeting
with manager for
Career as well as
Personal Development

Recruitme
nt
&
Selection

Compensatio
n & Benefits

GROWTH

Employee
Welfare

PMS
Training &
Devpt

New hire orientation


Special customer
service training (FOCUS
training)
Employees paid for
attending training

Group Incentive scheme


Gain sharing program
based on %
improvement in service
If quarterly customer
satisfaction goal was
met then payout upto
$200 is paid
Goal setting method
used
Promotion based on
assessment tests
Customer service
metrics forms an
important measure of
performance

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