Coffee with HR.

No, it s not a television show; it s a process through which any emp loyee in Maruti Suzuki can communicate his or her problems to the Human Resource s department. The identity of the employee is never revealed and he or she can ha ve coffee with HR any number of times, says SY Siddiqui, the company s HR head. Maruti also has a number of other ways to listen to staffers. It has a QC (Quality Circle), which encourages employees to suggest ways to improve productivity. The company has been able to save #140 crore so far through suggestions received fr om employees, says Shinzo Nakanishi, Managing Director and CEO. The thrust on listening to employees and empowering them was inspired by lessons from Japan. Despite being devastated by the Second World War, Japan quickly eme rged as the most productive manufacturing country in the world. This was only bec ause of contributions by its people, points out Maruti Chairman RC Bhargava. So, right from its inception, Maruti decided to listen to its people. On the gro und, this meant ensuring everyone mixed. That has led to common canteens and oth er facilities for the top management as well as the rank and file. In no way do w e want to show that anyone in the company is less than anyone else, says Bhargava . The auto giant bankrolls the course fees of employees who go in for higher studi es (100% in the case of a one-year MBA course and 50% for a three-year part-time MBA). It also provides employees with training both in India as well as in Japa nese partner Suzuki s facilities. There are many training opportunities. I have att ended training in Japan, says BK Khurana, who works in the engineering division. Maruti places a premium on the welfare of its employees. The carmaker has made m edical check-ups compulsory for all employees over the age of 45. The company mee ts all the medical costs for treatment of employees as well as their family memb ers, says Bhargava. All this has helped Maruti keep attrition within 5.5%. The Japanese people would no doubt approve.

Culture: In India, 'Corporate Governance' standards for listed companies are stipulated b y Securities and Exchange Board of India ( SEBI) through a special provision- Cl ause 49 of the Listing Agreement. As a conscious and vigilant organization, Maruti Suzuki had initiated good 'Corp orate Governance' practices even before Clause 49 became applicable and these pr actices form an integral part of the companys governance culture. The Company strives to foster a corporate culture in which high standards of eth ical behavior, individual accountability and transparent disclosure are ingraine d in all its business dealings and shared by its Board of Directors, Management and Employees. The Company has established systems & procedures to ensure that its Board of Dir ectors is well-informed and well-equipped to fulfill its overall responsibilitie s and to provide the management strategic direction it needs to create long-term shareholder value. On its Board, the Company has four non-Executive- Independent Directors of high stature from varied backgrounds, who bring with them rich experience and high et

hical standards. In recent years, the Company has evolved a Control Self Assessment mechanism to evaluate the effectiveness of internal controls over financial reporting. Key internal controls over financial reporting were identified and put to self a ssessment by control owners in the form of Self Assessment Questionnaires throug h a web based online tool called "Control Managers" . With the successful implementation of the online Controls Self Assessment framew ork, the Company has become one of the few companies in India to have a transpar ent framework for evaluating the effectiveness of internal controls over financi al reporting. The initiative further reinforces the commitment of the Company to adopt best corporate governance practices VALUE At Maruti Suzuki , we believe that a positive attitude and proactive nature take s a person miles ahead. The person should be flexible and should have a never en ding zeal to learn and innovate. Hard work, commitment and persistence are essen tial for any candidate to perform in Maruti Suzuki. The roots of Maruti Suzuki are the discipline, integrity and honesty that it bri ngs in its every process. We have a performance and result oriented culture whic h requires commitment from every person. Its culture breeds good employee bondin g and a self starter approach. WORK CULTURE: At Maruti Suzuki the term 'work culture' has a connotation of 'once in a lifetim e experience' that provides a unique opportunity to every Marutian. With this in mind we promote a work environment where the word passion replaces work, learni ng becomes a tool for better decision making, experience makes way for sharing, and challenges translate to achievements. At Maruti Suzuki, everyday is a unique journey of never ending learning experiences that open up endless possibilities for the Marutian, that lasts for a life time.