Maruti Suzuki India has set up a special group to co-ordinate new projects. It has also done a major organisational restructuring by realigning its business verticals.This new development is to make sure the companies streamline cost structures across departments.
The company has decided to cut down on the number of verticals from six to five. The non-core administration vertical has been removed, with its sub-divisions - IT, HR and finance - now reporting independently to managing director Kenichi Ayukawa and joint managing director Toshiaki Hasuike. The five operational verticals are production, marketing & sales, quality, supply chain and R&D. Also, a new special group has been formed with three chief mentors – S Y Siddhiqui, Sudham Maitra and M M Singh. Mayank Pareek, head of marketing & sales for both domestic and overseas markets, has also been made a senior executive officer from an executive officer.
"There are several issues now that require cross-vertical collaboration. The three senior officials have thus been asked to form a special group by the MD to drive new initiatives that may require inputs across functions and also monitor performance,” a Maruti official told FE.
Few industry insiders say that the shift of HR heads and production managers to other roles may also be a result of an internal investigation by parent Suzuki Motor Corporation into the violence at Maruti’s Manesar plant in July 2012.