Human Resource Strategy
CUMI’s business strategy is evolved from Domestic & Global market trends, Economic Growth, Competitor Analysis and Customer Industries’ Growth Plan. HR strategy is linked to business strategy and facilitates the organisation to achieve the objective by building people capabilities.
CUMI’s concern for people has been driving force for the growth of the organisation over the last 5 decades. The sustained growth over the past several years attributed to the knowledge, skill of the people and technology. HR has always been one of the focus point in the business strategy.
The HR strategy is carefully linked to the Vision, Mission and overall business strategy of the Company.HR Values
- Concern for people.
- Integrity
- Customer Orientation
- Team Work
- Continuous Improvement.
- Execution Excellence
Major HR initiatives which redesigned the organisation’s strategy
- No strike or lock-out in the last five years
- Employee costs increasing from 21 crores in 1995-96 to about 39 cr in 2001-02
- Employee costs as percentage of sales turnover increasing from 10.8% to 13.3%
- A leaner organization; with substantial increase in blue collared and white collared productivity
- No major accidents, reflecting an injury-free work environment
It would be interesting to note that these successes came under all possible scenarios of trade unionism - single union - multiple unions; internal leadership-external leadership; political affiliation-no affiliation. It only goes to prove that if the fundamentals of the approach are strong, any context can be dealt with.
The Journey
Reflecting back on this arduous but interesting journey throws up several aspects, but it would be appropriate to focus on those that dealt with its human resources. Fundamental to any action is a belief. CUMI’s HR operates on certain cardinal principles in line with the values and beliefs of the Murugappa Group. These principles are the cornerstones for all actions.
Principles
- Whether workmen or management staff, employees are employees. They are not different blocs, but two faces of the same coin
- Unions are treated with respect and are made partners in the progress
- Harmony and peace cannot be at the cost of dilution of organization ethos. Fairness and Firmness will govern all employee relations
- Communication and dialogue would be the essence of managing relationships
- A proactive approach and a state of mental and physical preparedness would help in managing unpleasant surprises
Integration of HR Policies and Strategies with the Organisation’s strategy:
The formulation of new policies and changes to the existing policies are done in line with the business plan, business model, market trends, best practices of benchmarked companies, suggestions, employee feedback through communication meetings and through Employee Satisfaction Surveys.
Synergy across divisions / Relationship with Alliance/ Partners /Logistics-Distribution
- The initiative on the above was started with the facilitation by Mr. Richard West, a Transformation Facilitation Expert.
- Adopting the framework articulated in the CII Business Excellence Model and identification of 12 key processes.
- Strategic planning for the future based on analysis of discontinuities and emerging technologies.
- Mutually beneficial Long Term Agreements with Unions focussing on productivity and flexibility for the organization, and a good quality of life for the employees.
“Welfare is non-negotiable”- P.P.Sukumaran, Vice-President, Group HR.
And the management focusses on Long Term welfare schemes like Health, Housing and Education of children. - Introduction of modern manufacturing concepts and practices like Modular system of production, Lean Manufacturing System, ERP, etc.
- TQM made a way of life through extensive use of 7 QC tools in daily work. Intensive employee involvement activities in Cross Functional Teams(CFTs) and Small Group Activities(SGAs).
- CUFEST being the much awaited annual event displaying the best of the talents in the areas of TQM and TEI(Total Employee Involvement ) initiatives are reviewed by the top management and external experts. Rewards and recognitions in the Annual Quality Festival are a great source of motivation to the participants.
- Performance oriented organization as reflected in the increased share of variable pay for workmen as well as management staff
- Development initiatives like Balanced Scorecard, Hay’s evaluation, Development Centres, 360 degree appraisal, Policy Deployment
- Intense Training and Development initiatives across the organization focussing on business knowledge, functional skills and attitude.
- Regular feel of the emotional pulse of employees as well as the customers through periodic satisfaction surveys.
- Commitment to SHE not only for employees but also for the other stakeholders as reflected in working conditions, health management practices, product design, work related to ISO 9002 and 14001 accreditation, etc.
- Active participation as a responsible corporate citizen focussing on community development initiatives, social upliftment and professional / academic interface.
Stimulating and encouraging empowerment, creativity and Innovation
To address the dynamic needs of the market, CUMI continuously reinvents the functioning approach to the customer.
- Organisation’s Structural Change
- Learning new tools and technology.
- Annual /sales Conference
- Quality Improvement Steering Group (QISG):
- Product development and Product application teams
Stimulating and encouraging collaboration within the organisation
As an outcome of the Transformation Exercise, many Cross Functional Teams have been formed and work on the improvement projects paved way to team work and collaborative culture.We encourage Suggestions, CFT and SGA teams to go for external participation. Our teams have won many prizes in external events also.
The continuous efforts in Total Employee Involvement related training has resulted in continuous participation of teams in different forums like QCFI, INSSAN, National Productivity Council and other participative forums like AU-TVS and winning awards.![]() |
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| INSSAN-National Convention | National Convention on Quality Circles |
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| National Convention on Quality Circles | AU-TVS-Q Quest 2004 |
At the Group level also, we encourage our teams to participate in all events. The role of leadership is to encourage our employees to participate in TQM activities by way of committing resources of time and money. The culture at CUMI encourages and applauds innovation, by building the knowledge required to recognize opportunities, by honing the skills to develop inventive strategies and by having the courage to carry them out.
Chairman’s Award for Innovative Organisation
The culture at CUMI encourages and applauds innovation. At CUMI differentiation is a way of life - the one that pervades and touches everyone. CUMI won the Innovative Organisation Award instituted for the first time in the Murugappa Group in the year 2003.





