Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
SUBMITTED BY:
ANUSHREE KAUSHAL
MBA (2010-2012)
ENROLLMENT NO: A30101910092
INDUSTRY GUIDE
FACULTY GUIDE
Mr. G. RAMALINGAM
MANAGER-HR
Sr. Lecturer
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CERTIFICATE OF ORIGIN
Faculty Guide
AGBS
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ACKNOWLEDGEMENT
ANUSHREE KAUSHAL
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TABLE OF CONTENTS
Sr. No
Subject
Page No
1.0
Executive Summary
2.0
Industry Profile
3.0
Company Profile
11
4.0
Learning
28
5.0
Bibliography
77
6.0
Case study
78
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Executive Summary
Resources
departments
namely,
Performance
Appraisal,
Starting its journey from the day when the first car rolled on the streets of
Mumbai in 1898, the Indian automobile industry has demonstrated a
phenomenal growth to this day. Today, the Indian automobile industry
presents a galaxy of varieties and models meeting all possible expectations
and globally established industry standards. Some of the leading names
echoing in the Indian automobile industry include Maruti Suzuki, Tata
Motors, Mahindra and Mahindra, Hyundai Motors, Hero Honda and
Hindustan Motors in addition to a number of others.
During the early stages of its development, Indian automobile industry
heavily depended on foreign technologies. However, over the years, the
manufacturers in India have started using their own technology evolved in
the native soil. The thriving market place in the country has attracted a
number of automobile manufacturers including some of the reputed global
leaders to set their foot in the soil looking forward to enhance their profile
and prospects to new heights. Following a temporary setback on account of
the global economic recession, the Indian automobile market has once again
picked up a remarkable momentum witnessing a buoyant sale for the first
time in its history in the month of September 2009.
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Anushree Kaushal, Amity University
The automobile sector of India is the seventh largest in the world. In a year,
the country manufactures about 2.6 million cars making up an identifiable
chunk in the worlds annual production of about 73 million cars in a year. The
country is the largest manufacturer of motorcycles and the fifth largest
producer of commercial vehicles. Industry experts have visualized an
unbelievably huge increase in these figures over the immediate future. The
figures published by the Asia Economic Institute indicate that the Indian
automobile sector is set to emerge as the global leader by 2012. In the year
2009, India rose to be the fourth largest exporter of automobiles following
Japan, South Korea and Thailand. Experts state that in the year 2050, India
will top the car volumes of all the nations of the world with about 611
million cars running on its roads.
16-18
percent to sell around three million units in the course of 2011-12. In 2009,
India emerged as Asia's fourth largest exporter of passenger cars, behind
Japan, South Korea, and Thailand.
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Audi :
(Leading player in Premium Car segment)
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BMW :
(Leading player in Premium Car segment)
Mercedez-Benz :
(Leading player in Premium Car segment)
Ford:
(Leading player in Medium Range Car
Segment)
General Motors (GM) :
(Leader in Innovative Services)
Tata Motors:
(Leading in Economical Car & Commercial
Vehicle Segment)
Maruti Udyog Limited:
(Leading player in Small Car Segment)
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STRENGTH (S)
WEAKNESSES (W)
Infrastructural setbacks
Low productivity
Too
many
taxes
levied
by
production
OPPORTUNITY (O)
THREATS (T)
increase
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As the Indian economy continues on its growth curve, against all odds,
wealth creation is a natural byproduct. And Indian consumers have always
been dazzled by big brands and their correlation to social status so its not
surprising that the luxury car market has been growing in leaps and bounds.
The Indian consumers new willingness to spend has seen high-end, highstatus cars find their way into far more driveways than ever before. Its
almost as if theres a competition amongst consumers to see who can sport
the bigger, better car. And this has led to another competition, one of greater
significance.
With big brands comes fierce and intense competition. Mercedes was the
first foreign luxury carmaker in India, and dominated the market for nearly
15 years. Even with the introduction of several other luxury brands in the
last four years, Mercedes managed to control over 50% of the market until
2008 that is, when its compatriots literally stormed in and crashed the party.
In 2008, BMW sold 700 cars less than Mercedes, but in 2009 BMW
whipped past the market leader by selling almost 350 more cars. BMW saw
its share of the market increase from 9% in 2006, to a whopping 40% at the
end of 2009. In total, BMW sold 3,619 units in 2009 the highest number of
luxury cars sold by a single manufacturer in India in a single year, and an
increase of almost 25% over the previous year. Mercedes, on the contrary,
had a dip in sales of about 10% over the previous year stating a lack of
inventory due to the introduction of the new E Class as a reason.
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India has been flexible in the face of the global economic meltdown, and this
has reinforced the faith that global automakers have invested in this market
especially in the case of the German luxury triumvirate. As expected, other
luxury brands are entering the market as well. Tatas Jaguar Land Rover is
craving for a piece of the action as are, at the absolute extreme end of the
market, Bentley, Ferrari and Rolls Royce. Each brand is expanding its
presence across the country by opening new dealerships, or, in the case of
Mercedes, revamping its existing setup. The three-pointed star is in no mood
to admit defeat, and has big plans for 2011 with the all-new E Class and GL
Class. And, just to be sure, theyve invested Rs. 150 crore in a new state-ofthe-art plant in Pune, which is also rolling out the new S 500L, which, at Rs.
1 crore, is the most expensive car ever assembled in India.
BMW India has a vast range of artillery themselves, and theyve taken
effective steps to ensure a smooth and fast transition to become the luxury
segment leader. Their aggressive style, sporty undertones, and immense
popularity with the younger generation are certainly some of the reasons for
the surge in sales. More importantly, BMWs are meant to be driven
perhaps a quality that resonates well with the new age of wealth creators in
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the country. With the exceptional performance of their models, BMW caters
to car lovers and not just status seekers.
And with their high performance soul, BMW have cemented their brand
recognition into the hearts of many driving enthusiasts and luxury seekers
alike. Plus, theyve taken the lead in the luxury SUV segment as well with
the X3, X5 and X6, and aim to continue in that vein with the introduction of
the entry level X1 last
performance available from the likes of the Z4, not to mention the legendary
BMW- M cars.
But, being the market leader also means that you have to be that much more
vigilant. Audi has also captured the hearts of many Indians, as was witnessed
at the 10th Auto Expo. BMW and Audi were under the same roof, but it was
almost impossible to move past the Audi display. Huge crowds cramped and
stampeded just to get a glimpse of the Audi vehicles. In its market segment,
Audi is the true winner when it comes to growth. The brand managed to
increase its sales by an impressive 50%. In 2009, Audi sold 1,658 units, as
compared to 1,050 units in 2008. You can be sure that Audi will be a strong
contender for top honors in the coming years, as the brand draws in more
buyers courtesy of its wow-so-sexy designs, its wicked panache, and the
technological excellence under the hoods of its cars.
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But, here comes the shocker. Although the Indian luxury market seems on a
roll, its nothing but a micro-dwarfed midget when compared to its neighbor,
China. A glance at the sales figures is all it takes to understand exactly why
China is a force to be reckoned with. With insurmountable spending power,
China is truly every car manufacturers dream market. More importantly, no
one can doubt the fact that China has practically single handedly rescued the
entire automobile industry during the economic collapse. Here is how big
their pie is compared to ours BMW India created a record by selling 3,619
units in 2009, while BMW China sold an astounding 90,536 units.
Mercedes India sold 3,247 units in 2009, while Mercedes China sold 68,500
units and had a sales increase of 77%. But again, Audi comes out as the
victor. Audi is the leader in the luxury car market in China, and the VW
owned manufacturer sold a sky rocketing 158,941 units in 2009, at an
increase of 33% compared to 2008.
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Its not just that China has a stronger economy, and many more millionaires
than India, the main reason behind these sales figures is the fact that there
are fewer restrictions on foreign imports, both for parts and wholly
assembled vehicles in China. The government has taken huge steps to
encourage foreign manufacturers, and in some cases they also lowered the
required capital investment for new ventures neither do they bombard
consumers with huge levies and taxes. Of course, China has a ten-year head
start at the very least, and is the third largest luxury goods market on the
planet. High end luxury brands have been around far longer in China, while
India is still being explored as a luxury market.
All said and done, India is very much an emerging market, and will continue
down that road. Only time can tell who will emerge victorious in the race to
become market leader in India. Every high-end luxury brand from across the
globe is eyeing this market, and with more brands dropping into India by the
day, competition will only get fiercer meanwhile the Indian consumer can
reap the benefits of this healthy brand war.
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Company Profile
An Insight of BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and
engine manufacturing company founded in 1916. It also owns and produces
the MINI brand, and is the parent company of Rolls-Royce Motor Cars.
BMW produces motorcycles under BMW Motorrad and Husqvarna brands.
BMW is known for its performance and luxury vehicles, and is the world's
largest luxury automobile manufacturer
BMW Group activities worldwide are coordinated from corporations head
office in Munich. A city landmark, the four cylinder tower at the Olympic
park is the nerve centre for an organization which covers over 150 countries
To achieve its aims, the company knows how to deploy its strengths with an
efficiency that is unmatched in the automobile industry.
Strategic objective
The BMW Group is the leading provider of premium products and
premium services for individual mobility.
Vision
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Mission Statement
"To become most successful premium manufacturer in the car indusrty"
Company History
After World War I, BMW was forced to cease aircraft (engine) production by
the terms of the Versailles Armistice Treaty. The company consequently
shifted to motorcycle production in 1923 once the restrictions of the treaty
started to be lifted, followed by automobiles in 192829.
BMW's first significant aircraft engine was the BMW IIIa inline-six liquidcooled engine of 1918, much preferred for its high-altitude performance.
With German rearmament in the 1930s, the company again began producing
aircraft engines for the Luftwaffe. Among its successful World War II engine
designs were the BMW 132 and BMW 801 air-cooled radial engines, and the
pioneering BMW 003 axial-flow turbojet, which powered the tiny, 19441945-era jet-powered "emergency fighter", the Heinkel He 162 Salamander.
The BMW 003 jet engine was tested in the A-1b version of the world's first
jet fighter, the Messerschmitt Me 262, but BMW engines failed on takeoff, a
major setback for the jet fighter program until successful testing with
Junkers engines.
By 1959 the automotive division of BMW was in financial difficulties and a
shareholders meeting was held to decide whether to go into liquidation or
find a way of carrying on. It was decided to carry on and to try to cash in on
the current economy car boom enjoyed so successfully by some of
Germany's ex-aircraft manufacturers such as Messerschmitt and Heinkel.
The rights to manufacture the Italian Iso Isetta were bought, the tiny cars
themselves were to be powered by a modified form of BMW's own
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motorcycle engine. This was moderately successful and helped the company
get back on its feet. The controlling majority shareholder of the BMW
Aktiengesellschaft since 1959 is the Quandt family, which owns about 46%
of the stock. The rest is in public float.
In 1992, BMW acquired a large stake in Californian-based industrial design
studio Designworks USA, which they fully acquired in 1995.
In 1994, BMW bought the British Rover Group (which at the time consisted
of the Rover, Land Rover and MG brands as well as the rights to defunct
brands including Austin and Morris), and owned it for six years.
By 2000, Rover was making huge losses and BMW decided to sell the
combine. The MG and Rover brands were sold to the Phoenix Consortium to
form MG Rover, while Land Rover was taken over by Ford. BMW,
meanwhile, retained the rights to build the new MINI, which was launched
in 2001.
Chief designer Chris Bangle announced his departure from BMW in
February 2009, after serving on the design team for nearly seventeen years.
He was replaced by Adrian van Hooydonk, Bangle's former right hand man.
Bangle was famously (or infamously) known for his radical designs such as
the 2002 7-Series and the 2002 Z4.
In July 2007, the production rights for Husqvarna Motorcycles were
purchased by BMW for a reported 93 million euros. BMW Motorrad plans
to continue operating Husqvarna Motorcycles as a separate enterprise. All
development, sales and production activities, as well as the current
workforce, have remained in place at its present location at Varese.
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Market Trend
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BMW in India
With its assembly plant in Chennai and the head office at Gurgaon, BMW
India is a 100% subsidiary of the BMW group. The initial investment in
India is 1.1 billion INR.
The wide range of BMW activities in India include the establishment of an
assembly production plant in Chennai (Tamil Nadu) and development of an
effective dealer organization across major metropolitan centers of the
country.
In medium term, BMW India has employed around 400 people; up to 600
additional jobs have been created in the dealer and service network.
On 29 March 2007, BMW India officially opened its plant in Chennai. The
BMW Plant Chennai produces the BMW 3 Series and BMW 5 Series sedans
in petrol and diesel variants and has a capacity to produce 3,000 units per
year on a single shift basis
BMW entered the Indian Market by setting up the following
a. National Sales company : Delhi
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Automobile manufacturers
Automotive suppliers
Qualified labor
Cost balance for production location
Infrastructure International Airport, Sea Port, Road Network
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Motors
(Pune),
OSL Prestige
(Kolkata),
Parsoli
Motors
Assembled/Manufactured Locally
BMW X1
BMW X3
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Imported
BMW X6 M
BMW M5
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The following points can be inferred from the organization chart depicted
above:
1. Horizontal Differentiation
1.1 Horizontal
differentiation
is
referred
to
as
departmentalization
1.2 BMW adopts functional departmentalization. The reason
for the same is that the philosophy All the employees
belonging to a function work together
1.3 Main functions in BMW are Logistics and IT, Assembly,
Quality, Human Resources, Plant Control (Finance)
2. Vertical Differentiation
2.1 It refers to hierarchical levels in an organization
2.2 Hierarchy in BMW is that Managing Director- General
Managers-Deputy
Manager-Specialists-
Team
Leader-
Associate
3. Span of Control
3.1 It refers to the number of subordinates a manager can
efficiently and effectively supervise
3.2 Ideally, the number is 5-6 subordinates
3.3. In BMW, the span of control ranges from 3-7
subordinates
4. Centralization
4.1 it refers to the extent to which the decision making
authority is concentrated at the top management
4.2 In BMW, the final decision lies in the hands of Managing
Director
5. Formalization
1.1 It refers to the extent to which the rules, procedures,
communication, and instructions are written down and
followed by organizational members.
1.2 In BMW, formalization is high
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Performance
Luxury
Design
Price
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Satisfacotry
Talent Acquisition
It is a process of attracting, finding and selecting highly talented individuals
those who align with the business strategy possess required competencies,
and who will integrate smoothly and productively into the organization and
its culture, to meet current and future employment needs.
In order to attract people for the jobs, the organization must communicate
the position in such a way that job seekers respond. To be cost effective, the
Talent Acquisition process should attract qualified applicants and provide
enough information for unqualified persons to self-select themselves out.
Thus, the Talent Acquisition process begins when new recruits are sought
and ends when their applications are submitted. The result is a pool
from
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Requisition Process
Sourcing
Application Process
Employment
Offer
Anushree
Kaushal, Amity
University
Notification of Non34
Selected Candidates
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Help reduce the probability that job applicants, once recruited and
selected, will leave the organization only after a short period of time.
will
appropriate candidates.
Devise
values.
methodologies
for
assessing
psychological
traits.
Search for talent globally and not just within the company.
Talent Acquisition represents the first contact that a company makes with
potential employees. It is through recruitment that many individuals will
come to know a company, and eventually decide whether they wish to work
for it. A well-planned and well-managed recruiting effort will result in highquality applicants, whereas, a haphazard and piecemeal effort will result in
mediocre ones. High-quality employees cannot be selected when better
candidates do not know of job openings, are not interested in working for the
company and do not apply.
The Talent Acquisition process should inform qualified individuals about
employment opportunities, create a positive image of the company, provide
enough information about the jobs so that applicants can make comparisons
with their qualifications and interests, and generate enthusiasm among the
best candidates so that they will apply for the vacant positions.
The negative consequences of a poor recruitment process speak volumes
about its role in an organization. The failure to generate an adequate number
of reasonably qualified applicants can prove costly in several ways. It can
greatly complicate the selection process and may result in lowering of
selection standards. The poor quality of selection means extra cost on
training and supervision. Furthermore, when recruitment fails to meet the
organizational needs for talent, a typical response is to raise entry-level pay
scales. This can distort traditional wage and salary relationships in the
organization, resulting in avoidable consequences. Thus, the effectiveness of
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a recruitment process can play a major role in determining the resources that
must be expended on other HR activities and their ultimate success.
The following are the 2 important factors affecting talent acquisition:1) INTERNAL FACTORS
Recruiting policy
Companys size
Cost of recruitment
2) EXTERNAL FACTORS
Unemployment Rate
Labor-market conditions
Social factors
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Economic factors
Technological factors
METHODS OF TALENT ACQUISITION
The following are the most commonly used methods of recruiting people.
INTERNAL METHODS:
1. Promotions and Transfers
This is a method of filling vacancies from within through transfers and
promotions.
A transfer is a lateral movement within the same grade, from one job to
another. It may lead to changes in duties and responsibilities, working
conditions, etc., but not necessarily salary. Promotion, on the other hand,
involves movement of employee from a lower level position to a higher level
position accompanied by changes in duties, responsibilities, status and value.
2. Job Posting
Job posting is another way of hiring people from within. In this method, the
organization publicizes job opening on bulletin boards, electronic method
and similar outlets. One of the important advantages of this method is that it
offers a chance to highly qualified applicants working within the company to
look for growth opportunities within the company to look for growth
opportunities
within
the
company
without
looking
for
greener
pastures outside.
3. Employee Referrals
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Talent Development
Talent Development refers to the process of developing and retaining
current workers to meet current and future business objectives. Companies
engaging in a talent development strategy shift the responsibility of
employees from the human resources department to all managers throughout
the organization.
Performance Management
Leadership & Training Development
Talent Assessment
Employee Development Program
MONITORIN
G
REWARDING
DEVELOPING
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RATING
development, human
resource
development,
Such an approach will serve two purposes. It will measure the impact on the
individual and also, over a period of time, measure the effectiveness of the
training methods used.
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SKIILS
InBasket/InTray
Leadership
Problem
Solving
Scheduling
Exercise
Personality
Test
Role Play
Interpersonal
Administrative
Leadership
Group
Discussion
X
X
Personal
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Employee:
Title:
Org Code:
Position Code:
Reviewer:
Date:
Appraisal Type:
Appraisal Period: From:
To:
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Program
Description
Target Audience
Executive
Development
Sequence
Emphasis on
strategic thinking,
leadership, crossfunctional
integration,
competing globally,
customer satisfaction
Senior professionals
and executives
identified as highpotential
Development of
functional expertise,
business excellence,
management of
change
Manager
Core Leadership
Program
Courses
Professional
Development
Program
Emphasis on
preparation for
specific career path
New Employees
Manager
Development
Global Business
Management
Executive
Development
Corporate
Entry
Leadership
Professional
Development
New Manger
Development
Experienced
Manager
Audit Staff
Financial
Management
Human
Resources
Technical
Leadership
Recruitment
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Anushree Kaushal, Amity University
S.no.
Process Step
Title of Work
Instruction
1.
2.
Request of Basis
Staff (Temp) (Recruitment
for Based on)
Approved
Job
Candidate
Search
(Internal
Candidates,
External
Cnadidates,
Interns/Proj
ect Trainee)
Title of Form
No.
Tools
Recruitment
Agency
/
News/Campu
s
PaperAdvt,
Internet
(Based
on
need)
Manpower
Request Form
Approval
Screening of List
of
Applications Applicants
with their
Applications
4.
Interview
Selection
Interview
Schdule
Mandatory
Approved
Organization
al Chart,
Job
Description
& Manpower
Request
Form
Job
Description
data
Sheet
3.
Process
Form
Job Analysis
Document
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5.
Medical
Test
/
Background
Check
Fitness
Criteria/Refre
nce Check
Medical
Form/Evaluat
ion Form for
Background
Check
Medical
Team/
Security
Agency
5.
Medical
Test
/
Background
Check
Fitness
Criteria/Refre
nce Check
Medical
Form/Evaluat
ion Form for
Background
Check
Medical
Form/Evaluat
ion Form for
Background
Check
6.
The sources of recruitment used by the company for this purpose are as
follows:
a. Recruitment agencies(pre-approved contractors)
b. Campus recruitments
The requirement is for manpower on the shop floor to do technical and
skilled work. Therefore, the interviews are being conducted for the post of a
Trainee to do technical work on the shop floor.
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The interviews are conducted by the Team leaders or Managers, as the case
may be. However, I had the opportunity to perform the short listing of
candiadates which turned out to be a learning experience. The short listed
candidates are sent further for the second round of interview.
The Interview process
Step 1: Rapport Building Phase
The candidate is made comfortable by asking the following questions
a. How are you?
b. Where are you from?
c. How long did you travel from your place to this office?
Step 2: Lead and Probing Questions
In order to check the communication skills and the technical knowledge
possessed by the candidate, the following questions are asked:
a. What is your family background?
Lead Question
Competency tested: Communication Skills
b. What projects have you done so far?
Lead Question
Competency tested: Technical Knowledge
c. Can you explain any one?
Probing Question
Competency tested: Technical Knowledge and Communication skills
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Anushree Kaushal, Amity University
d. For which companies and for how long have you worked?
Lead Question
Competency tested: Technical Knowledge, Work Experience
e. What was the nature of your job?
Probing Question
Competency tested: Technical Knowledge and Communication skills
f. Cite an instance to explain your work responsibility
Probing Question
Competency tested: Technical Knowledge and Communication skills
Step 3: Checking the interest level of the candidate for the job
After having an idea about the technical knowledge and communication
skills of the candidate, further questions might be asked to check whether the
candidate is seriously interested in the job applied for or not.
The following questions were asked in order to know about the knowledge
possessed by the candidate about the company.
a. Why do you want to join BMW?
Lead Question
b. What do you know about BMW?
Lead Question
Competency tested: Knowledge about the company
c. For which department would you like to work for and why?
Lead Question
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Anushree Kaushal, Amity University
The short listed candidates were further for the second round of interview
which is to be conducted by the Team Leaders or Managers, as the case may
be. Till date 75 interviews have been taken out of which 10 have been
selected.
Campus recruitments
The selection process for candidates undergoing campus recruitments is as
follows:
a. Technical round / Aptitude Test
Competency tested: Communication Skills
b. Group Discussion
Competency tested: Communication skills
c. Personal Interview
Competency tested: Communication Skills
All candidates are required to appear for the aptitude test and group
discussion. The short listed candidates are required to appear for personal
interviews.
The forms for the purpose of evaluation the scores of candidates appearing
for the interview are as follows:
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Anushree Kaushal, Amity University
Evaluation Form
Group Discussion Proficiency
Candidate:
Date:
Instructor:
Unsatisfactory
Satisfactory
Excellent
Participation Level
(Clearly prepared for class discussions,
knowledgeable of materials, regular
contributions)
Situation Analysis
(Recognizes confusion in others,
identifies and manages misunderstandings,
recognizes when it
is inappropriate to speak)
Relationship Management
(Adequately manages conflict, allows
others to express different views,
effectively asserts themselves)
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Information Exchange
(listens attentively to others, provides
focused, well-reasoned responses, asks
effective and insightful questions)
Delivery Skills
(Speaks in an audible voice, clearly
articulates ideas, conveys enthusiasm,
addresses comments to entire class)
Total Points:
Overall Assessment (Suggestions for Improvement)
Final Recommendation (When appropriate, this space should be used for the final summative
evaluation. The final summative evaluation can be expressed as pass/inadequate.)
Pass
Inadequate
Recommendation :
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S.No
Name
Technical
GD
Round
Score
Score (50)
(25)
Total
(100)
Personal
Recommendations /
Interview(25)
Remarks, if any
1
2
3
4
5
6
7
8
9
10
Excellent
Attributes
Academics
Good
Average
Rating
Department:
Sex:
Poor
Position:
Candidate Name:
Section:
Date:
Strength:
Experience
Communication
Team work
Weakness:
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Result
Orientation
Final Assessment
Selected
Interview Panel
S. No.
Name
Not Selected
Designation
Hold
Signature
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Training
Constant training is given top all the employees to fine hone their skill set
and to improve on their job performance. BMW emphasis on regular training
to meet their quality standards and to develop the skills of its employees. The
training management process is explained below:
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Anushree Kaushal, Amity University
S.No.
Process step
Title of Work
Title of Form
Instruction
Mandatory
tools
round data
Assess
sheet, document,
training standard
Description Data
and level,
sheet,
projects plant
that
requires performance
skill
Training
annual Management
anticipate
specific
Job
System Procedure
or target,
knowledge
to employee
evaluation,
Development
plan
Training needs Training
Complete
training as identified
Annual
requisition form
Training Plan
i.e.,
In
training,
house
External
Training etc
Identified
Prepare
Training
Plan Annual
Training Plan
and
budget
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Anushree Kaushal, Amity University
Training
4
Post
Training
Organizing training
evaluation,
programme
Internal Training
Evaluation FormF
Reminding
of Development
development
after schedule
Evaluation form
one
due date
Result
of JIT
Evaluation Versatility
records
the
Skill Chart
completed Matrix,
records
Development
Evaluation Sheet
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Anushree Kaushal, Amity University
Once the associate reached the skill level 3, he can be trained in other
stations for versatility. The need and the area of training shall be decided by
the team leader or Manager based on production or quality requirements.
Before training the skill 3 associate in other station, the team leader should
ensure the own station has a minimum 1 person of skill level 4.
Developmental training
This training is given to the employees based on the training needs identified
by their respective team leaders or Managers based on performance
evaluation and the programme identified from the standard list of training
topics. This should be submitted through respective GMs to Human
Resource before 10th May every year.
The quality, usefulness and the application of knowledge gained by the
training programme is evaluated using the development evaluation form.
This also provides an input for improvemet for training arrangement
Human Resources department is responsible for summarizing the training
needs obtained for each employee and preparing an annual training calendar
for each employee. HR has to prepare the plant annual training plan, budget
and schedule. This activity must be completed by mid of May each year in
order to be ready for budget approval process.
The general manager is authorized to revise the training schedule when
necessary and mange the training budget to ensure that the investment is
placed to the right subject to support company goals and business needs.
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Anushree Kaushal, Amity University
Skill Matrix
A skill matrix is prepared for the employees working in the shop floor. The
skill level of these employees is kept under check through this document.
The document helps in identifying the training needs of these employees and
accordingly the scheduling training programs is done to meet those needs
There are 4 skill levels
Level 1: Learner
At this level, a person can perform task only under supervision
Performance will be evaluated every 3 months
Level 2: Executive
At this level, a person can perform task independently but requires assistance
in decision making
Performance will be evaluated every 3 months
Level 3: Excel
At this level, a person can perform task without supervision
Performance will be evaluated every 6 months
Level 4: Preach
At this level, a person can perform task and train others
Performance will be evaluated every 6 months
Training is provided depending upon the skill level possessed by the
employees. The training provided to a person at skill level 1 will be different
from the training provided to those at skill level 2. Training is an ongoing
process and it will be provided until the person reaches skill level 4.
Performance appraisal is conducted periodically and the skill matrix is
updated after every 3 months.
The Skill Matrix document is prepared by the immediate superior of the
employees whose skill level is being evaluated. The skill matrix shall be
submitted by the team leaders or departmental heads, as the case may be, for
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Anushree Kaushal, Amity University
year.
The
performance
appraisal
is
diagrammatically
represented below:
Process Step
Step 1
Set
Input
Plant Calendar
Schedule
for
Performance
Support
Mandatory
Mandatory
from
Concern
Documents
Standard timing
Tools
BMW
ed
specified in
Portfolio
Evaluation
Departm
portfolio round
website
Schedule,
ent
Output
Performance
Communicated
Evaluation
to concerned
Step 2
Portfolio
Round Process
BMW Portfolio
Concern
Evaluation Form
BMW
departments
Result of
principles and
ed
process sheets,
Portfolio
Evaluation
rules, Associate
Departm
Succession
website
from multiple
Model and
ent
Planning
perspective
Leadership
plan of future
Model
management
and expert
Step 3
Record of
Concern
Evaluation Form
BMW
talent
Result of
67
Performance
Evaluation
evidence of
ed
Key Performance
Portfolio
performance v/s
Departm
Indicators:
website
target, BMW
ent
Employee
Associate
Satisfaction,
Model,
Employee
Leadership
Performance
Model
Improvement,
Evaluation
Employee
Step 4
Result of
Concern
Consolidate the
Evaluation,
result
Plant Budget
and
develop a plan
for
Attrition
Evaluation Form
BMW
Summary of
ed
Portfolio
remuneration
Departm
website
and promotion
ent
proposal
individual
remuneration
and promotion
for approval
Step 5
Summary of
Concern
Evaluation form
Feedback
Approved
Obtain
Remuneration
ed
process sheet,
Form
Proposal
Approval
and promotion
Departm
Succession
proposal
Notification
ent
Concern
Planning
Employee
Feedback
New
Letter
ed
Information
Form
Remuneration
Step 6
Notification to
each individual
employee
on
the
of
result
Departm
ent
remuneration
The Appraisal of the people working in the shop floor takes place throughout
the year. The Target Process Management Sheet or the Performance Metrics
is used for the same.
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Anushree Kaushal, Amity University
Input
Mandatory
Step 1
Organization
documents
Process
Development
chart,
Portfolio discussion
I category employees
Step 2
growth plan
Plant
Development Plan
Portfolio Performance
Employee data
Output
sheet, Identification of A, AD,
AE, AX, B, BD, BE, BX,
Plan
development plans
Step 3
Development
Process
Plan
Training
assessment form
Compensation
BMW follows the Lead Policy for Compensation. It pays its employees
higher than the market rate. Since its the leading manufacturer of premium
segment automobiles it needs to recruit the best talent and therefore, lead
policy is adopted by BMW.
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Anushree Kaushal, Amity University
Pay mix of the employee comprises only of the fixed pay. Since BMW Plant
Chennai has been set up only 3 years ago, therefore, variable pay has not yet
been introduced in the company.
Performance based incentives include Bonus. Employees who deliver
outstanding performance are given bonus equal to 120% of the agreed bonus
at the time of joining the organization.
Benefits provided to the employees are as follows
Benefits
Details
Canteen
Transport
Leave
Managing Director
10 statutory holidays, CL 12, EL 20 ,
Work wear
compensatory leave
Shirts, pants, socks, belts , shoes, t-shirts,
Celebrations
Employee birthday
Cake, card
Sweets
Insurance
Health
Insurance
Accident cover
Reimbursement
the employee
Telephone Bill
Rs.
6000
reimbursed
to
the
managers,
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Anushree Kaushal, Amity University
Input
Mandatory
Step 1
Documents
Feedback on issues GTMY Diary
Meeting
received in previous
with
employees
and
Policies
Previous Grievance GTMY Diary
Step 2
Analyzing
and Details
categorizing
the
points
Step 3
Output
Analytical Report
GTMY Diary
Analysis Report
Analysis report to
be presented to
the
Human
Resources
Department
Step 4
Feedback
employees
Open
points
to policy
related
decisions
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Anushree Kaushal, Amity University
Input
Support
Mandatory
Mandator
Output
FISH
from
All
Documents
FISH Guidelines
y Tools
Plant
Formation
department
weekly
the committee
meeting
establish Guidelines
FISH
Committee
of
minutes,
Obtain
approval
from
human
resources
Step 2
FISH
All
Implementatio
Guidelines
department
employees
of
FISH
system
Step 3
FISH
Suggestion
Guidelines
Panel
FISH Guidelines
department
Emails
FISH Guidelines
Communicatio
to
Suggestion
Received
form
suggestions
all
from employees
from
Step 4
employees
Accepted and
Evaluation
Suggestion
VPS
FISH Guidelines
GRID
of s
Rejected
suggestions
Step 5
Suggestion
All
Implementing
department
the suggestion
FISH Guidelines
GRID
FISH
Suggestion
on Direct
implementation
, Focused work
group and Task
Step 6
Suggestion
All
Finalizing
department
VPS
recommendation
suggestions for
FISH
Force Team
on Awards , cash/
trophy
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Anushree Kaushal, Amity University
awards
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Anushree Kaushal, Amity University
The Grid
Impact
Ease
of High
Implementation
High
Medium
Low
1st
2nd
7th
Medium
Low
3rd
4th
8th
5th
6th
9th
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Anushree Kaushal, Amity University
Award
Rs, 200
Rs. 150
Rs. 100
Rs. 50
Surname
Cost center
Other details
(if any)
A. Description _______________________________________________________
Place of improvement ______________________________________________
Current situation __________________________________________________
_______________________________________________________________
Improvement / way of solution / advantage _____________________________
_______________________________________________________________
________________________________________________________________
B. Applicant Sign off
Applicant signature
________________
C.
1.
2.
3.
Department code
_____________
Date
_______
Input
Mandatory
Mandatory
Output
Required
documents
PIN Letter
tools
Circular
Target date of
Website,
completion
online
BMW and/or
Survey
Understand the
Tools
purpose
survey
understanding of
the need for a
78
of
survey,
understanding of
Step 3
time constraints
Website,
standard formats
Step 4
and/or questions
Survey
report Survey
Create
action
plans
Website
Survey
report
from BMW AG
Report
List
of Implementation
points
of action plan
and
implement
Step 5
Survey
report Survey
approved Report
List
of Ensure
points
sustainability of
the change
action plan
Input
Mandatory
Mandatory
Output
Organization
documents
tools
BMW
Policy, H&S Committee Health
and
Meeting,
of
Communication
Committee
Meeting
established
related
the Organization
requirements
Step 2
Activities
H&S Manual, BMW
Define
and BMW
Document
Roles
Responsibilities
of
and Procedures,
and Target
Policy, Meeting
of
Plant,
the
Health
Discussion
Plant Safety
and Employee
Responsibilities,
Defined
the
relevant
job
description
Organization
implementing
79
Anushree Kaushal, Amity University
Health
Step 3
Health
Identification of Safety
and Previous
Health
road Performance
Safety
and Personnel
manual, trained in Health
appraisal,
Training
Training
Materials
personnel
Step 4
Health
Schedule
and Hazard
H&S Manual
requirement
Identified
Road Identification
Hazards
and
H&S sheet
activity
Risk map,
Assessment
per
manual,
Identified
Documented
Hazards
objectives
each
and activity
Hazard
H&S Manual
per Identification
Listed,
quantified
sheet
and
communicated
function
hazards.
Listed,
the quantified
Management
hazards.
Hazard
H&S Manual
Identified
Identification
Management
sheet
Programmes as
Programmes to
achieve
identified
the
Objectives
Step 7
Accident
Accident
Maintaining
Register
Register,
records
on
Accidents,
Aid
H&S Manual
First
Treatment
Register
Data
on
Accidents,
Incidents,
conformance
80
Non
Incidents, Non
conformance
and
corrective
and preventive
action
Step 8
Identified
Management
Programme
agreed
Management
Target date
H&S Manual
Agreed
Implemented
targets
Programme
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Anushree Kaushal, Amity University
and
Ensuring Safety
Process step
Step 1
Formation
Health
Input
Mandatory
Organization
documents
tools
BMW
Policy, H&S Committee Health
and
Safety
Safety Impact of
Committee
the Organization
Step 2
Activities
H&S Manual, BMW
Define
and BMW
Document
Roles
Meeting,
Responsibilities
Plant,
of
and
Communication
Committee
Meeting
established
Policy, Meeting
Output
Plant Safety
and Employee
Discussion
and Procedures,
and Target
of
Mandatory
the
Health
Responsibilities,
Defined
the
relevant
job
description
Organization
map
implementing
Health
and
Safety
Step 3
Health
Identification
Safety
of
Training map,
and Previous
road Performance
Health
Safety
Health
appraisal,
Training
Safety
Materials
requirement
Needs
and
Training
Train
the
Schedule
personnel
82
Anushree Kaushal, Amity University
and
Step 4
Health
Prepare
Safety
Hazard
and Hazard
manual,
Assessment
Planning
Identified
Road Identification
Hazards
H&S sheet
activity
and map,
Risk
H&S Manual
per
the list
Safety
Requirements
Step 5
Identified
Documented
Hazards
Hazard
H&S Manual
per Identification
Listed,
quantified
sheet
and
communicated
function
hazards.
Listed,
the quantified
Management
hazards.
Hazard
H&S Manual
Identified
Identification
Management
sheet
Programmes
as
Programmes to
achieve
identified
the
Objectives
Step 8
Identified
Management
H&S Manual
Programme
agreed
Management
Target date
Agreed
and
Implemented
targets
Programme
Process step
Input
Mandatory
Mandatory tools
Output
documents
83
Anushree Kaushal, Amity University
Step 1
Organization
Formation
Health
BMW
and
Safety
Safety Impact of
Committee
the Organization
Step 2
Activities
H&S Manual, BMW
Define
and BMW
Document
Roles
Meeting,
Communication
Committee
Meeting
established
Policy, Meeting
Responsibilities
Plant,
of
and
Plant Safety
and Employee
Discussion
and Procedures,
and Target
of
the
Health
Responsibilities,
Defined
the
relevant
job
description
Organization
map
implementing
Health
and
Safety
Step 3
Health
Identification
Safety
of
and Previous
road Performance
Training map,
Materials
requirement
H&S Manual
Identified
Train
the
Schedule
and
Risk
Procedure and
Identifying and
the
and Hazard
Safety
Road Identification
Hazards
map,
H&S sheet
activity
manual,
Assessment
Accessing
Health
Safety
Training
Hazard
manual, in
Training
and
Health
Safety
appraisal,
Needs
personnel
Step 4
Prepare
Health
Planning
Process,
Statutory Check
list
Safety
84
and
per
Requirements
85
Anushree Kaushal, Amity University
The work culture here is very friendly and co-operative. It is very easy to go
and clarify your doubts with senior executive in the organization. People in
every department are easily accessible to help you find a solution to your
problems.
BIBLIOGRAPHY
www.article13.com
BMW PLANT CHENNAI
www.bmw.in
www.bmw.ag
www.slideshare.com
wps.pearsoned.co.uk
www.google.com
BMW Annual Report
86
Anushree Kaushal, Amity University
elements of the marketing mix. In the late 1990s, BMW sensed the attitudes
and values of luxury-car buyers were changing with more emphasis on
family and leisure time. These new upscale consumers included aging baby
boomers, yuppies who had started families, and liberal-minded wealthy
professionals. Research indicated they would want more vehicle choices and
more eye-catching designs to suit their changing lifestyles. With its future at
stake, BMW made an ambitious gamble: It invested heavily on broadening
its single, narrow product line into a whole spectrum of upscale cars. It also
acquired Rolls Royce and re-launched the Mini, the British cult car of the
60s. It put the BMW brand on sport-utility vehicles, convertibles, roadsters
and, most recently, a compact car.
BMW is very clear about its targeting. It only targets the premium-priced
cars and does not strive to compete in every segment of the auto industry. It
avoids the high-volume market of middle-of-the-road vehicles and focuses
strictly on the luxury sector. The Mini, for example, is smaller than a Honda
Civic, but is priced at about $3,000 (2,300) more. This strategy has made
BMW, despite its relatively small size, one of the worlds most profitable car
makers.
SIGMA was the company charged with researching the market. Sigma: a
German research firm has pioneered a method of predicting shifts in
consumer tastes. SIGMA looks beyond demographics such as age and
income. It often interviews consumers for hours and even photographs their
homes and offices to build a picture of the mindset of different consumers.
Sigma predictions were that there would be significant expansion of the
luxury car market.
What Sigmas research found was the Ive made it attitude of the 1990s
BMW driver, what they called the social climbers was now changing to a
more family friendly group. They foresaw that as the yuppies declined, other
groups with different upscale mindsets would increase in number. They
suggested four segments going forward and BMW reacted to the new
segments by introducing a car to match 3 of them:
1. Upper liberals includes socially conscious, open-minded
professionals often with families who were successful in the 90s.
They were predominantly Volvos, Saabs and SUVs drivers
What did BMW do? For upper liberals, BMW added the X5. This is a
SUV that the company prefers to call a sports activity vehicle, in a
bid to appeal to this groups active lifestyle.
2. Post-moderns are high-earning innovators like architects,
entrepreneurs and artists. They are highly individualistic and
gravitate toward head-turners like convertibles and roadsters.
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Anushree Kaushal, Amity University
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Anushree Kaushal, Amity University