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EXECUTIVE SUMMARY
Every organization needs to have well performed, well trained and well experienced people to
perform the activities that have to be done. When the current or potential job occupant cannot
meet the requirements, it is necessary to raise the skill level and increase the versatility and
adaptability of the employees.
Performance appraisal is a method of evaluating the behavior of employees in the work
spot, normally including both the quantitative and qualitative aspects of job performance.
It is a continuous process in every large scale organization
Thus this research has been undertaken the effectiveness of training and of the management.
It specifies those gaps or discrepancies in performance that actually exist between what people
are capable of doing, what they should be doing and what is expected from them in the future.
Reasons for the study
An effective system of identification of appraisal need helps in imparting right appraisal
for the right people at right time, which will improve performance and thereby help in
organizational success and development.
The information collected through survey will help in sorting out needs from wants and
then clarifying which of the needs discovered are actually performance appraisal needs.
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Objective of the study
The objective of the study conducted at Apollo Tyres Ltd, Kalamassery,Kerala is to
evaluate the effectiveness of performance appraisal system.
To find out if there are any drawbacks in the present system of Performance
appraisal.
To give suitable suggestions to improve the existing system of performance appraisal
methods in the light of findings.
Methods of performance appraisal adopted in various aspects, views on the impact of appraisals
done on the employees of Apollo Tyres. This brings in the employees suggestions towards
improvement of the existing performance appraisal program in Apollo Tyres. The suggestionprograms were analyzed. Data was tabulated with a follow up of analysis and inferences
made.
Some of the major findings from the analysis carried out are:
Majority of the respondents agreed that through observation, work sampling, interviews
and questionnaires, proper performance appraisal can be identified.
Majority of the respondents agree that changes in duties and responsibility, difficulty and
importance of the tasks, job observation, interviewing the jobholders help in conducting
performance appraisal on a regular basis.e.g. Six months or annually.
Recommendations to make performance appraisal program more effective
are:
It is suggested that there must be continuous assessment of effectiveness of performance
program and incorporation of suitable modifications from time to time in Apollo Tyres.
Informal appraisals should be conducted whenever the supervisor or personnel managers
feel it necessary.
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1.1 INDUSTRY PROFILE
Nothing is complete until it comes back a full circle. Sure, these words have a deep-
rooted meaning, but what hey also; hide within is the fact that a circle forms an intrinsic part of
human life. The invention of wheel is still considered to be one of the most significant inventions
in the history of mankind.
The wheels are all around us. In our cars, trains, planes, machines and most factory and
farm equipment. The oldest wheel was found in archeological excavations was discovered in
what was Mesopotamia and is believed to be over 55 hundred years old. But 55 hundreds years
later, a wheel has become a more significant player in our lives than it probably did then.
HISTORY OF INVENTION OF TYRES:
1. It was in the year 1888 that John Boyel Dunlop made an air tube device for his son to
cushion the side of his bicycle. This lead to the invention of pneumatic tyres.
2. 60 years after, in 1948, Michelin invented the radial technology and this was the first
radial tyre that came into being.
3. Firestone developed the first pneumatic tractor tyres.
GROWTH OF TYRE INDUSTRY IN INDIA:
The tyre industry began to grow in India during 1930s. The growth of tyre in India may
be divided into 3 phases. In the first phase, multinational came to India and started selling tyres.
The first among them was firestone followed by other multinationals like Good Year etc
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In the second phase, the multinationals started their production in India and they became
the first generation tyres, Dunlop was the first company, which started the domestic production
at Calcutta.
In the third phase of Indian tyre, industry began when Indian companies started
producing tyres, which came to be called assecond-generationtyres. Important among them are
MRF tyres, PREMIER tyres, GOOD YEAR, CEAT etc. They started production in the 60s.
Later in the 1970s, the 3rd generation tyres started their production .The main 3rd
generation tyres are APOLLO, VIKRANTS, JK Tyres, and MODI Tyres etc.
All tyre companies that started its operation after the 70s and the tyre companies, which
are yet to start production, are classified under the head of further generation. Notable among
them are S KUMAR Tyres, RADIAL tyres, and SRICHAKRA tyres, BIRLA etc.
Market leader in the Indian tyre industry are MRF, JK tyres, CEAT, GOODYEAR,
APOLLO, MODI RUBBER, BIRLA tyres. They are updating their strategies in order to hold
their market share and invade others.
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LEADNG INDIAN TYRE COMPANIES AND THEIR TECHNICAL
COLLABRATION:
RANK COMPANY COLLABRATION
1. MRF TYRES Uni Royal Good Rich, USA
2. JK TYRES Continental A.G.Germany
3. CEAT TYRES LTD Yokohama Rubber Co, JAPAN
4. GOOD YEAR, INDIA LTD Good tyre and Rubber co, USA
5. APOLLO TYRES LTD Continental A.G, Germany
6. MODI TYRES LTD Modi Rubber Ltd and continental Germany
7. BIRLA TYRES LTD Satin pneumatic piralli spa, Italy
8. DUNLOP INDIA LTD Sumikmo rubber Industries-Japan, Dunlop
Ltd-UK
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1.2 COMPANY PROFILE
INTRODUCTION ABOUT THE ORGANISATION:
HISTORY OF THE CONCERN:
Apollo, named after the GREEK SUN god has created a remarkable identity for itself in
the tyre market so that the name itself has became a synonymous with brand. In its constant
pursuit of excellence, Apollo has come a long way up of the corporate gradient. The history of
Apollo the company can be tracked back to the 70s,when hard nosed MNCs and Indian Tyre
majors dominated the tyre industry. Since its incorporation in1972, Apollo has suffered huge
losses in its infant years, owing to the fact that all tyre majors had high production capacities as
compared to the market demand.
Within a decade through backed by its strong production and marketing strategies,
Apollo had catapulted itself among the top tyre companies of the country. Thanks to its state of
art, technology, goal oriented people and clear adventurous vision of the top management.
Apollo has become a name to recon with, not just in the nylon but also in the radial tyre
segment. Change is something Apollo as a corporation has always been comfortable with and
never feared. Years ago, with a view of position itself in the premier tyre segment, Apollo
decided to price its brand reasonably higher than its competitors. It thus targeted a customer
segment for which price was almost a non-issue. The key criterion was product benefit. Premium
branding lead to the development of the niche that comprised those who looked for the best tyre
and not necessarily the best bargain. This made the company less vulnerable to vulnerable to
recessionary trends in the years to come.
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APOLLO TYRES LTD-A PROFILE
Apollo tyres ltd, incorporated in the year 1972 in collaboration with general tyres
international corporation USA (now owned by M/S Continental AG Germany) the 4th largest tyre
companies in India. The corporate head quarter is located at New Delhi and its registered office
is at Cochin. The company also has a state at the art plants at Perambra near Cochin and in
Limda near Baroda. The company also has a tube factory installed at Ranjangon near Pune in the
state of Maharashtra.
The first manufacturing unit which is located in Perambra, at Trichur district, Kerala
commenced commercial production of automatic tyres, tubes and flaps in the year 1977.The
company was bagged down by a loss of Rs.27.8crores from 1977 to 1981.It was in 1982 that
Apollo formulated and put in to action series of pragmatic profit generation policies geared
towards turn around.
A dynamic new management team under the leadership of Vice Chairman and MD
Mr.Omkar S Kanwar took over the helm of commercial affairs. The objectives were refined with
emphasis on growth through quality products and services, aggressive market penetration and
expense containments. In 1984,Apollo tyres limited wipe out entire accumulated loss even
posted a profit of Rs.57 lakhs BIFR handed over premises tyres limited. (The plant is situated at
kalamassery near Cochin) to Apollo tyres limited on 17 Th April 1995 and products are being
made in Apollo brand name.
With this view, achievement the company has expected its manufacturing bear to emerge
as the number one tyre company in India. In 1995-96, Apollo clocked turnover Rs.1250crores.
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Today Apollo Tyres Limited is the fastest growing and most profitable company in India.
The company manufactures and sells wide range of tyres and tubes and flaps. Apollo Tyres is the
number one truck and passenger tyre manufactures of India.
The company is also a major manufactures of light commercial vehicle and tractor tyres.
The company produces the top branch like storm XTT and Mile Star XTT which spell quantity
and quality, which is a reflection of class to serve the needs of the customers. Apollo tyres have
been ranked as the 16 Th larger and seven Th fastest growing company in the world by the
European rubber journal, considered as an International authority.
VISION:
A leader in the Indian Tyre Industry
And a significant global player
Providing customer delight
And enhancing share holders value
CORE VALUES:
C care for customers
R- Respect for associates
E Excellent through team
A-Always learning
T-Trust mutually
E-Ethical value
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Apollo Tyres aims to achieve a turnover of $1 Billion by 2005-2006.Our corporate
objectives in support of this are:
Employees satisfaction
Customer delight
Revenue growth
Operating margin improvements.
A) Birds View of Companies achievements:
a) Fastest growing Tyre Company in India and seven Th in the world.
b) Eighteenth largest tyre company in the world.
c) The first tyre company in India to obtain ISO9001 certification for all its operation.
d) The first tyre company to induce packaging for tubes, two wheeler tyres and car tyres.
e) The first tyre company to have the concept of exclusive showrooms for truck tyres called
the Apollo Tyres World.
f) Only Tyre Company with more than 100 sales and services offices in India.
Manufacturing units an overview:
Perambra Cochin Kerala
Limda Gujarat
Pune Maharashtra
Kalamassery Premier Tyres Factory
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As the countrys leading tyre-manufacturing company Apollo takes the pride in its
manufacturing units spread across the country. Using state of the art equipment and cutting edge
technology, its unit has the ability to utilize potential to the optimum and meet the growing and
ever-changing customer needs. In keeping with the policy the move with the times and use
superior technology all, our plants and manufacturing units are completely digitized. To ensure
minimum errors and effective quality controls that helps us to reduce the manufacturing costs.
Companys journey began in 1977 when Apollo set up its very first manufacturing unit at
Perambra in Kerala with the production capacity of 188 tones
The Limda plant was instituted in 1991;following which all Apollo brand products were
manufactured there currently the plant has a total capacity of 230 tones. The existing plant is
being modernized with an investment of Rs.110 crores. In 1995, Apollo also took over the
factory of Premier Tyres Limited at Kalamassery Kerala.
This plant is now the source of most of the tyre company export. In addition, Apollo also
built a new plant at Rajangon at Pune in 1977 to manufacture tyre tubes. The plant has a
production capacity of 34 tones.
Perambra Plant (Kochi)
Perambra plant has the largest employer of people amongst the private sector
companies in Kerala. Currently the production capacity at Perambra stands at 250
tones a day.
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Kalamassery Plant
Capacity expansion of 20 Tones / day from 60 Tones / Day to 85 Tones
/ Day
with an additional investment of Rs. 16 crores.
Pune Plant
Apollo Tyres built a new plant at Ranjangaon at Pune in 1997 to
Manufacture tyre tubes
Limda Plant
The Limda plant came into operation in 1991 with a capacity of 70 tones a
day. Today the plant has a total capacity of 280 tones per day, including the
manufacture of radial tyres.
Certification Details or Achievements:
First tyre company in the country to get ISO-9001 Certification (Oct 94)
One of the few tyre manufacture with QS-9000 certification (March 2001)
Consistently rated as Excellent in quality audit by the collaboration M/S Continental
AG
Manufacturing facility and tyre testing lab certified by IN_METRO of Brazil.
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Self certified vendor to leading OEMs in the country.
Registered with QAVC (defense) DGS&D (Govt)
Approved by: DOT Department of transport USA
ECE European Economic Commission of Europe
SASOSaudi Arabian Standards Organization
BOARD OF DIRECTORS:
Onkar s Kanwar Chairman and MD
Neeraj Kanwar Chief Operating Officer and Whole Time Director
U S Oberoi Chief Projects and corporate affairs
P K Mohammed Chief of research and technology
S.Asoka Iyer Chief, Group Advisory Services
K.Prabhakar Chief, Projects
Tapan Mitra Chief, HR
Sauna Sarkar Chief Strategy and Business operations
Sathish Sharma Chief of Marketing
P N Wahal Company Secretary
Fraser and Ross Auditors
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Employee strength of the Company:
After the take over of Premier Tyres Ltd.ATL ceased former marketing decisions as well
as its sales deposit. Present employee strength of the company is as follows.
Management Staff 140
Staff 108
Work men 797
Contract Trainees 259
Total 1304
Management of Apollo Tyres Ltd:
The major tyre manufacture with the largest number of management professionals in
India have been on path of exercising a newer management thought and ideas to put in practice.
The companies dynamic management is always alert to take challenge in the environment.
Because of their efficient marketing dynamism and strategies, they could freely float in the
market despite of cyclical depression in the industry.
Manufacturing:
Tyre is high performance composite product. The raw material used for its manufacturing
are rubber, nylon, steel, tyre, cord fabric, carbon black and compound mix where rubber is mixed
with required additives. After so many process like fabric dipping, calendaring, squege
applications, lead preparations etc it assembles all the components into semi finished products
called green tyres. Tyres after press wiring are kept under high pressure to help shape retention
and to reduce growth in service.
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Human Resource:
The ATL is well equipped with personals having skills at all levels enough to meet
competitive challenges; training programmes are conducted by the management to cope up with
changing scenario. Company is providing all facilities for mental and physical vigor of the
employees. There are about 4550 employees working in Apollo Tyres Ltd.
Departments:
The unit consists of following departments operating under different heads.
1. Commercial Department
2. Engineering Department
3. Production Department
4. PPC, IE and Systems Department
5. Technical Department
6. Quality Department
7. HR and Administration Department
Human Resource and Administration Department:
HR Department of Apollo Tyres is headed by the Group Manger, HR management deals
with the working life of the workers from time of his or her entry into the organization to until he
or she leaves. It basically includes activities such as HR Planning, Job Analysis, Job Design,
Recruitment and Selection, Orientation and Placement, Training and Development, Performance
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Appraisal and Job Evaluation, Employee remuneration, Motivation, Welfare and Multifacts of
Industrial Relations.
The company mainly works in three shifts:
The first shift from 7am to 3pm
The second shift from 3pm to 11pm
The third shift from 11pm to 7am
The HR Department is mainly concerned with:
HR function
Health
Safety
Welfare
Personal functions
Security functions
Environmental function
Payroll
HR function:
1.Human Resource Planning:
HR Planning is directly linked to the long term business plans of the organization. The
HR planning exercise is conducted annually to Asses the manpower requirements of the
organization. At the beginning of each calendar year, Corporate HR interacts with each
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department in each unit to collect their worker requirements in conjunction with the annual
projected business plan.
The following factor forms the basis for the manpower exercise.
Product mix
Optimum equipment capacities
Existing manpower
Envisaged organizational structure
Comparison with actual Vs expected productivity
Keeping in mind these factors, each department is expected to make an estimation of the HR
requirement at each location, along with the profile of people needed and the sources from where
they can be obtained. After the form sanction has been given, Corporate HR incorporates the
manpower requirement into its annual recruitment schedule.
Job Specification:
Workers The minimum age must be 18 years and minimum qualification SSLC.
Executives-Technical-The non-technical should be a B.Tech graduate.
Non Technical-The non-Technical should be CA\MBA\ICWA.
Job Description:
Job Description is compiled for all levels and functions in the organization once in 2
years, through this process role, responsibilities are clearly defined, and the delegation of
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authority is laid down. The key areas of personnel are linked to the business plan of the
organization and its structure. The process aims to bring about transparent accountability at all
levels.
2. Recruitment and Selection:
The company follows the policy of internal recruitment. In case of recruitment of
workers, employees in various departments are given preference over the others. An interview is
conducted to know about the persons family background, education qualification etc.the next
step is medical check up, if the person is found medically fit, he will be appointed.
Initially a person is appointed as usual workers. He is required to fill the personnel data
form and other forms like ESI, PF etc an induction programme is conducted and the new
employee is briefed about the job, company welfare activities, safety and security measures etc
the appointment of various trade appendices are taken up for whom 50% of the stipend amount
payable is reimbursed. The appendices are selected after the interview and the duration of the
training is one year .For an employee taken up in the office after interview, one month induction
programmes is given during which he is introduced to various department in the company.
3.Training and Development:
Induction Training: New employees will be briefed about the company policies, rules
and regulations, work responsibilities etc within one week of their joining. The
responsibility of imparting the induction training is with the HR department. An
induction plan will be given to all employees and documentary evidence shall be
maintained in from within the HR department.
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On the Job Training: On the job training is given to the regular employee of the
company. The respective head of the department will identify the training needs every
year for individual employee or for a particular group of employees in their department
and it shall be communicated to the HR department. Documentary evidence shall be
maintained for management category personnel and for workers and staff.
4.Performance Appraisal System:
The form of performance appraisal system followed by the company is similar to the
principal of management by objectives (MBO). The appraisal system is a cyclic process that
repeats itself every financial year. All the permanent employees are eligible for this interview.
There are two types of employee development form:
First is for junior officers and above categories and the other is for the staff. The
employees development form consist of 4 sectors: organizational goals, critical
attributes like planning, judgement, decision making etc, assessment and counseling
needs, job rotation and performance.
In each of the above category the employees performance is rated either as outstanding,
average, or below average. The rating is three fold that is by employee himself, by an appraiser
and by a reviewer, the highest weight age is given by rating for reviewer.
Performance appraisal system is done to:
Effect promotion based on competence and performance.
For improving the performance of existing managers.
To Asses the training and development needs of the employees.
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To enhance the future performance of the organization.
5.Promotion:
In context of Apollo Tyres ltd, promotion is mainly given on the basis of seniority of the
staff and education qualification, also at the official staff level, individual performance is also
accounted for at the time of promotion.
6.Salary Administration:
Salary administration is an important function of the HR department. The salary structure
of an employee is laid down in his appointment letter which is the most crucial document
covering all terms of his appointment in the organization.
The day an employee joins into an organization, the HR department completes a Payroll
Data Sheet for him along with the joining formalities. This data sheet serves as advice to the
accounts department regarding some basic details of the new incumbents including his date of
joining.
At the end of every month, the concerned department sends a consolidated statement
salary advance giving details of new appointments, transfer etc to the accounts department on
the basis of which salary is disbursed.
Welfare:
Apollo Tyres ltd practices much useful labour welfare schemes for the benefits of its
employees, the main welfare measures includes:
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Welfare Fund
Canteen Facility
Transportation Facility
Insurance Scheme: which includes
a) Apollo Tyres Employees Medical Benefit Scheme
b) Mediclaim
c) Group Personnel Accident Policy
d) Group Savings Linked Insurance Scheme
e) First Aid Centers.
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1.3 PRODUCT PROFILE:
PRODUCT RANGE:
Apollo tyres established itself as a manufacturer of tyres of the highest quality in India;
the company has always concentrated on high performance passanger, truck and tractor tyres.
Today it supplies to niche markets of all types of tyres for trucks, tractors, buses, light
commercial vehicles and passenger car.
DOMESTIC PRODUCT RANGE:
1) TRUCK TYRES:
a) Hercules loadstar
b) Haubeg
c) Load star super
d) Mile star
e) Ham safer XC plus
f) XT-7, XT-9
g) Flash
h) Amar
i) Amar Premium
j) Amar Express
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2) PASSENGER CAR TYRES:
a) Amazer Steel
b) Storm
c) Armour
d) Gripper
e) Celebrity
f) Panther
g) Hunter
h) Radial Tyre
3) LCV TYRES:
a) Load Star
b) Lancer
4) TWO WHEELER TYRES:
a) Black Cat
b) Ace
5) ANIMAL DRIVEN VEHICLE:
a) Bhim
b) ADV
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c) ADV plus
6) TRACTOR TYRES:
a) Krishak E
b) Krishak
c) Power Haul
d) Sarpanch TF
e) Krisan TF
7) TRACTOR TRAILER TYRES:
a) Rider TT
b) Super AmarTT
c) Truck Plus TT
d) Dhruv tt
e) Haul Track TT
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1.4 OPERATIONAL CONCEPTS
REVIEW OF LITERATURE
The history of performance appraisal is quite brief. Its roots in the early 20th Century can
be traced to Taylors pioneering Time & Motion Studies. But this is not very helpful, for the
same may be said about almost everything in the field of modern human resource management.
As a distinct and formal management procedure used in the evaluation of work
performance, appraisal really dates from the time of the Second World War- not more than 60
years ago.
According to Dulewicz (1989), Performance appraisal. A basic human tendency to make
judgments about those one is working with, as well as about oneself. The human inclination to
judge can create serious motivational, ethical and legal problems in the work place. Without a
structured appraisal system, there is little chance of ensuring that the judgments made will be
lawful, fair, defensible and accurate.
Performance appraisal system s began as simple methods of income justification. That is,
appraisal was used to decide whether the salary or wage of an individual employee was justified.
The process was firmly linked to material outcomes. If an employees performance was found to
be less than ideal, a cut in pay would follow. On the other hand, if their performance was better
than the supervisor expected, a pay rise was in order. Sometimes this basic system succeeded in
getting the results that were intended; but more often, they did not.
For example, early motivational researches were aware that difference people with
roughly equal work abilities could be paid the same amount of money and yet have quite
difference levels of motivation and performance. These observations were confirmed in
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empirical studies. Pay rates were important, but they were not the only element that had an
impact of employee performance. It was found that other issues, such as morale and self-
esteem, could also have a major influence.
As a result, the traditional emphasis on reward outcomes was progressively rejected. In
the 1950, the potential usefulness of appraisal as tool for motivation and development was
gradually recognized. The general model of performance appraisal, as it is known today, began
from that time.
Modern Appraisal: -
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor that unusually takes the form of a periodic interview (annual or semi-
annual), in which the work performance of the subordinate is examined and discussed, with a
view to identifying weaknesses and strengths as well as opportunities for improvement and skills
development.
In many organizations, appraisal results are used, either directly or indirectly, to help
determine reward outcomes. That is, the appraisal results are used to identify the better
performing employees who should get the majority of available merit pay increases, bonuses and
promotions. In the same way, appraisal results are used to identify the poorer performances that
may require some form of counseling or in extreme cases, demotion, dismissal or decreases in
pay.
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Controversy:-
Few issues in management stir up more controversy in performances appraisal system.
There are many reputable sources - researches, management commentators, who have
expressed doubts about the validity and reliability of the performance appraisal process. Some
have even suggested that the process is so inherently flamed that it may be impossible to perfect
it.
At the other extreme, there are many strong advocate of performance appraisal; there are
many different opinions on how and when to apply it. Those who believe that performance
appraisal has many important employee development users such as help in determining pay rise
and promotions.
This groups believes that the linkage to reward outcomes reduces or eliminates the
developmental value f appraisals. Rather than an opportunity for constructive review and
encouragement, the reward linked process is perceived as judgemental, punitive and harrowing.
For example, how many people would gladly admit there work problems if, at the same
time, they knew that their next pay rise or a much-wanted promotion was riding on an appraisal
result? Very likely, in that situation, many people would deny or downplay their weaknesses.
Nor is the desire to distort or deny the truth confined to the person being appraised. Many
appraisers feel uncomfortable with the combined role of judge and executioner.
Such reluctance is not difficult to understand. Appraisers often know their employees
well, and are typically in a direct subordinate-supervisor relationship. They work together on a
daily basis and may, at times, mix socially. Suggesting that a subordinate needs to brush up on
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certain work skills is one thing; giving an appraisal result that has the direct effect of negotiating
a performance is another.
The result can be resentment, serious morale, damage, leading to workplace disruption,
soured relationships, and productivity declines.
On the other hand, there is a strong rival argument, which claims that performance
appraisal must unequivocally be linked to reward outcomes.
The advocate of this approach say that organization must have a process by which
rewards-which are not an unlimited resources-may be openly and fairly distributed to those most
deserving on the basis of merit, effort and results.
There is a critical need for remunerative justice in organization. Performance appraisal
whatever its practical flows are the only process available to achieve fair, decent and consistent
reward outcomes.
It has also been claimed that employees themselves are inclined to believe that appraisal
results should be linked directly to reward outcomes-and are suspicious and disappointed when
told this not the case. Rather than feeling, relieved employees may suspect that they are not being
told the whole truth, or that the appraisal process is a shame and waste of time.
The link to rewards:
Recent research has reported that employee seems to have great acceptance of the
appraisal process and feel more satisfied with it, when the process is directly linked to rewards.
Such findings are a serious challenge to those who feel that appraisal results and reward
outcomes must be strictly isolated from each other.
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There is also a group who argues that the evaluation of employees for reward purposes,
and frank communication with them about their performance, are part of the basic
responsibilities of management. The practice of not discussing reward issues while appraising
performance is, say critics, based on inconsistent and muddled ideas of motivation.
In many organizations, thus inconsistency is aggravated by the practice of having
separate wage and salary review, in which merit rises and bonuses are decided arbitrarily, and
often secretly, by supervisors and managers.
Performance Appraisal Defined:
Performance appraisal is a system of review and evaluation of an individual or teams job
performance. While the performance of team should also be evaluated, the focus of performance
appraisal in most of firms remains on the individual employee.
Conducting performance appraisal is often a frustrating human resource management
task. One management guru, Edward Lawler, noted the considerable documentation during that
performance appraisal system do not motivate individuals nor effectively guide there
development, instead they create conflict between supervisors and subordinates and leads to
disfunctional behavior.
However considering the multiple needs for appraisal data, most organization is lead to
one conclusion although the appraisal process is difficult to device and administer, there is a
genuine organizational and employee need to conduct such evaluation for the reason sited,
developing an effective performance appraisal system has been and will continue to be high
priority of human resource management. Performance management is a process that significantly
affect organizational success by having managers and employees work together to set
expectation, review results and reward performance.
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According to Cummins, the objective of performance appraisal is to improve the
efficiency of an enterprise attempting to mobilize the best possible results from the individuals
employed in it. Such appraisals achieve four objectives including the salary review; training and
development of individuals, planning job rotation and assist in promotion.
Basic purpose of performance appraisal system:
Performance appraisal system may assume many different styles and types. Effective
appraisal system contains two basic systems operating in conjunctions; an evaluation system and
a feed back system.
The main aim of evaluation system is to identify the performance gap if any. This gap is
the short fall that occurs when performance does not meet the standard set by the organization as
acceptable. The main aim of feed back system is to inform the employee but the quality of his or
her work performance.
Employees View Point:
From employee viewpoint, the purpose of performance appraisal is 4 fold;
Tell me what you want me to do
Tell me how well I have done.
Help me to improve my performance
Reward me for doing well.
Organizational view Point:
From organizational viewpoint, one of the most important reasons for having a system of
performance appraisal is to establish and uphold the principal of accountability. For decades, it
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has been known to researchers that one of the main causes of organizational failure is
nonalignment of responsibility and accountability. Non alignment occurs where employees are
given responsibilities and duties, but are not held accountable for the way in which there duties,
but are not held accountable for the way in which these duties are performed. What typically
happens is that several individuals or work unit appear to have overlapping roles. Mc Gregor
says, formal performance appraisal plans are designed to meet three needs, one is the
organization and other two is the individual namely.
They provide systematic judgments to back up salary increases, transfer, demotions or
terminations. They are made of telling a subordinate how he s doing and suggesting needed
changes in his behaviour, attitude, skills etc.
Benefits of Performance Appraisal:
Perhaps the most significant benefits of appraisal is that it offers a rare chance for a
superior and subordinate to have time out for one-on-one discussion of important work issues
that might not otherwise be addressed. Almost universally, where Performance appraisal is
conducted properly, both supervisors and subordinates have reported the experience as beneficial
and positive. Appraisal offers a valuable opportunity to focus on work activities and goals, to
identify and correct existing problems and to encourage better future performance of the whole
organization is enhanced. For many employees, an official appraisal interview may be the only
time they get to have exclusive uninterrupted access to the supervisors. The value of this intense
and purposeful interaction between the supervisors and subordinates should not be
underestimated, it is been said that appraisal cant serve the needs of evaluation and development
at the sametime, it must be one or the other.
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Criteria for appraisal system:
The most common sets of appraisals system are traits, behaviour and task outcomes.
TRAITS:
Many employees in the organization are evaluation the basis of certain traits such as
attitude, appearance, initiative and so on. However many of the traits commonly used are
subjective and may be either unrelated to job performance or virtually impossible to define. In
such cases, the results may be inaccurate evaluation and legal problems as well.
BEHAVIOUR:
When an individuals task outcome is difficult to determine, a common procedure is to
evaluate the persons task related behaviour; for example, an appropriate behavior to evaluate a
manager may be leadership style.
TASK OUTCOMES:
If ends are considered more important that means task outcomes becomes the most
appropriate factor to evaluate. This approach is encouraged when a goal-oriented process is used;
a problem exists here if the results are not within the control of individual or team. Another
problem might be firms failure to recognize the difference between productivity and quality of
output. Overemphazing productivity may result in such a frenzied work place that mistakes are
paved on to the customers. Total focus on quality may generate fantastic products but also
batched delivery date .The obvious answer is to balance the requirement for speed with the need
to do the job right.
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PERFORMANCE APPRAISAL PROBLEMS:
The need to perform the multiple features in the appraisal process makes the appraisal
interview difficult and even threatening for many managers. In addition, there are several
behavioral problems inherent in the process. It can be confrontational because each party is
trying to convince each other that his or her view is more accurate. It is typically as a managers
role calls critical perspective while the employees desire to save their face easily leads to
defensivness. It is judgmental because the mangers must evaluate the employees behavior and
results and this aspect places the employee in a clearly subordinate position. Further performance
appraisal is a complex task for managers requiring job understanding, carefull observation of
performance and sensitivity to the needs of the employees. Managers are also called upon to
handle the issues that arise spontaneously within the discussion itself.
Managers sometime fail to conduct appraisal interviews because they lack vital skills.
Perhaps they fail to gather data systematically or they were not specific on the expected
performance improvements in the previous appraisal. They could be reluctant to address difficult
topics or they could fail to involve the employees in the assessment process and discussion. A
few may see appraisal as a meaning less game and even intentionally distort the ratings and feed
back given. All these factors can make powerful limits on the usefulness of the appraisal
interview unless it is conducted properly or modified through the use of other inputs
MANAGEMENT BY OBJECTIVES:
MBO refers to a process for managing performance review as only one part. MBO is bit
different from performance management, the MBO system focuses on whether the employees
have hit the target, where the target is outlined in objectives and performance standards
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description of desired job performance. Management by objective is a cyclical process that often
consists of four steps as a way to attain desired performance:
Objective Setting:
Joint determination between manager and employee of appropriate levels, of future
performance of the employees, within the context of overall unit goals and resources. The
objectives are often set to the next calendar year.
Action planning:
Participate or even independent planning by employees as to how to reach the objectives.
Providing some autonomy to employees is invaluable, they are more likely to feel more
committed to the plan success.
Provide Reviews:
Joint assessment of progress towards objectives by managers and employee, performed
informally and sometimes spontaneously.
Annual Evaluation:
More formal assessment of success in achieving the employees annual objectives,
coupled with a renewal of the planning cycle. Some MBO systems also use performance
appraisal to reward for employees to the level of results attained.
Strengths:
Standard based MBO have a number of advantages. Firstly, it encourages face-to-face
communication between the manger and the employee. The system is flexible as employees have
different standards of performance even if their job description are similar. The system is
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particularly useful and relatively easy to apply to job tasks that can be measured relatively easily
and objectively.
Performance Appraisal Feed Back Programme:
All appraisal systems are built on the assumption that employees need feedback about
their performance. Feedback helps them to know what to do and how well they are meeting their
goals.
Giving feedback is a challenging task for managers, however feedback is more likely to
be acceptable and cause some improvement when it is properly presented. In general it should
focus on specific job behaviour, rely on objective data rather than on subjective opinions and
inferences. Overall, it has a greater chance for including a behavioral change if it is genuinely
desired by the employee and is connected to job tasks and if the receiver is allowed to choose a
new behavior from alternative recommendations offered.
Guidelines for effective performance feedback:
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Be specificMake it well timed
Check for understanding
Allow choice
Relate to job
State it objectively
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Performance Appraisal in Apollo Tyres
Objectives:
Evaluation of Executives to meet the objectives of the organization and the needs of the
Individuals.
Providing for reliable, valid and objective assessment of the employees performance.
To bring a culture openness trust and business orientation.
Critical attributes:
Planning, Analyzing, and organizing skills
Job output and achievement orientation
Leadership skill
Initiative and creativity
Drive and commitment
Communication Ability
Time Management
Interpersonal skills and team relation
Delegation and development of subordinates
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Performance Appraisal Method:
Performance apprised methods would differ from organization to organization. However
there will be one linking factor that is, there will be a pre-printed format contents, design,
practices will change depending upon factors like whether the employee is an operator,
supervisor, officer, Manager or executive. No company will use and stick to one method.
Combinations of methods Will be better and admissible. Designing a format will be every
skillful activity. It is difficult to Clarify the methods, however it is easy to indicate the type. The
various performance methods
Used in the present days are:
1. Ranking method.
2. Rating scale method.
3. Checklist method.
4. 360 degree feedback
5. Forced choice method
6. Critical Incident technique.
7. Confidential Report
8. Assessment Centers.
9. Role play method
10. Training Instrument method
11. Personal Interview / Discussion method
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Ranking Method:-
The ranking system is designed to evaluate on employee by comparing him or her with
all of the other employees in similar positions within a Co. the result is some indication of where
the employee lies, in percentage term, relative to his or her peers. Depending in the form an
employee could be ranked first in the Co. The comparison may also be done on the basis of an
observable quantifiable no:, such as sales per quarter or new clients signed up etc although
ranking could be somewhat justified with simple things like sales numbers, there are a lot of
problem associated with the process.
Ranking system is only as good as the validity of the criteria used to compare the
employees. For example tallying up the ratings & then ranking employees based on the sum of
their ratings is mathematically unjustified & unfair. Ranking systems not only might not
help you to achieve your objectives, but also can create unhealthy competition among the
employees. A ranking system does not provide enough information about employee performance
to help employees to identify what they have to do to improve, a numeric ranking only tells an
employee where he or she stands in relation to other employees, it provides no information
about getting letter. In almost all situations ranking employees is a poor idea, however if it can
work anywhere, it is most likely to be where the following conditions exist.
There are objective and measurable criteria on which to base rankings (eg. Money
earned, customers recruited etc.)
Nothing else is expected of the employees other than perform according to specific
criteria. There is no desire to have employees other than perform according to specific criteria.
There is no desire to have employees work together and help each other. A cutthroat
environment is desired inside the company.
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Rating scale Method
One of the most common methods of recording or documenting performance is the rating
system. A rating form commonly includes statement describing the following:-
Job performance
Attitude
Abilities
Skills
Behavior
Knowledge
For each statement, the manager is expected to rate the employee on a scale. The scales
may have verbal descriptions such as excellent, average and needs improvement. Some use
both numbers and verbal descriptors for each point on the scale. The quality and usefulness of
the forms depend on the skills of the form designer in writing the performance items so that they
are specific and clear enough to meet the purpose.
The main disadvantage of rating scale method is that even when the form is used
intelligently it does help in proper evaluation or review of performance. Once emphasis on
poorly designed forms damages the relationship between the managers and the employees. When
numeric scales are used, there is an illusion of objectively because numbers are associated with
data. There is a tendency to add up ratings on a form to give an overall performance number, but
that resulting number is absolutely meaningless and useless.
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Checklist Method:
Another type of individual evaluate on technique is the Checklist method. In its simplest
form, the checklist is a set of objective or descriptive statements. If the rather believes that the
employee posses a trial listed, the rater checks the items: if not the rater leaves it blank. A rating
score from the checklist equals the number of checks.
A variation of checklist is the weighted checklist. Supervisors familiar with the jobs to be
evaluated prepare a long list of descriptive statements about effective and ineffective behavior on
jobs; this process is similar to the Critical Incident Process. Judges who have observed behavior
on the job sort the statements into piles describing behavior that is scaled from excellent to poor.
When there is a reasonable agreement on an item, it is included in the weighted checklist. The
weight is the average score of the raters prior to use of the checklist.
360-Degree Appraisal
The 360-degree feedback method for documenting and reviewing performance is the
newer technique. In the 1990 s it emerged as a method for reviewing and improving the
performance of managers, it has been extended and used with employees at all levels. The 360-
degree feedback process involves collecting information about performance from multiple
sources or multiple raters.
The main benefits of 360-degree feedback are:
It assists staff members to identify expectations, strengths and weakness of their
performance.
It provides information to the staff members about how they are perceived and judged by
significant others within the work environment.
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Evidence is collected from more than usual, singular source of ones supervisor.
The collation and presentation of evidence is objective.
It gives the staff members a chance to comment on themselves.
Critical Incident Technique:
The critical incident method of reviewing or documenting performance involves
recording instances of important events where the employee has performed less effectively. Both
employee behavior can be included in the incidents .The recording of critical incidents is
normally done in a narrative form, but it tend to be more focused since its driven by observations
of specific events and not general impressions, as is usually the case with the straight narrative.
The critical incident method is most appropriate and effective when the managers directly
observes and supervise the employees regularly, so he or she can monitor important events. It is
less a way to record performance on a yearly basis and much better suited to a situation where
manager and employee are looking into performance at a regular basis. When we compare the
pure narrative with the critical incident method is that it involves recording specific observable
situations, while narratives tend to be more general. The more specific information is available to
the employees, the more likely the employees will be able to use that information to improve
their performance.
The private sector undertaking like Apollo Tyres have either formal performance
appraisal systems or merit rating programes. Generally, there is provision for annual or semi
annual formal appraisal of all employees. Annual appraisal can help the supervisor to evaluate
his subordinates effectively and fix areas where a further action is needed to make the
subordinate both work effectively. The efficiency bar provides an opportunity to the employer to
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assess the efficiency of the employee more carefully. Whenever employee reaches the efficiency
bar, if his performance is not satisfactory and is allowed to cross the bar if he improves his
performance effectively.
OPERATIONAL DEFINITION OF THE CONCEPT:
Human resource Management: means employing people, developing their resources, utilizing,
maintaining, and compensating their services in tune with the job and organizational
requirements with a view to contribute to the goals of the organization, individual and the
society. This is dealt in Human Resource Department.
Performance appraisal: is a method of evaluating the behavior of employees in the workspot,
normally included both the quantitative and qualitative aspects of job performance.
Strategy: is a unified course of action to achieve the goal. It is a comprehensive and integrated
plan designed to ensure that the basic objectives of the enterprise are achieved.
Recruitment: is a process to discover the sources of manpower to meet the requirement of the
staffing schedule and to employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of an efficient workforce. It is the process of searching
for prospective employees and stimulating them to apply for jobs in the organization.
Selection: is a system of functions and devices adopted in a given company to ascertain whether
the candidates specification are matched with the job specification and requirements or not.
Placement: is the determination of the job to which an accepted candidate is to be assigned and
his assignment to that job.
Induction: is the process of receiving and welcoming an employee for doing a particular job.
People learn knowledge and/or skill for a definite purpose by the organized procedure.
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Training: is a act of increasing the knowledge and skills of an employee for doing a particular
job. People learn knowledge and / or skill for a definite purpose by the organized procedure.
Motivation: is the inner state that energizes, activates or moves and directs or channels behavior
towards goal.
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2.1 MCKINSEYS 7-S MODEL
What is 7-s MODEL?
The 7-s model is a tool for managerial analysis an action that provides a structure with
which to consider a company as a whole, so that the organization problem may be diagnosed and
a strategy may be developed and implemented. The seven-s is a frame work for analyzing
organization and there effectivness.it looks at the seven key elements that make the organization
successful, or not:
STRATEGY
STRUCTURE
STYLE
SKILLS
STAFF
SHARED VALUES
SYSTEMS
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7-S MODEL STRUCTURE-A systematic approach to improving
organization.
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The 7-s diagram illustrates the multiplicity interconnection of elements that defines as
organization ability to change. The theory helped to change the managers thinking about how
companies could be improved. It says that it is not just of devising a new strategy and following
it through. Nor is it a matter of setting up new systems and letting them to generate
improvements. To be effective, your organization must have a high degree of fit, or internal
alignment among all 7-s. Each S must be consistent with and reinforce the other Ss. All Ss are
interrelated, so a change in one has a ripple effect on all others. It is impossible to make a
progress on one without a making progress on all. Thus to improve your organization you have
to pay attention to all of the seven elements at the same time. There is no starting point or
implied hierarchy-different factors may drive the business in any one organization.
Shared Values (missions, goals)
Style (culture, leadership)
Strategy (corporate, business, product\market)
Structure (virtual organization)
Staff (empowerment)
Skills (competencies)
Systems (processes)
STRUCTURE:
Structure describes the hierarchy of authority and accountability in an organization. It
represents the reporting system of the organization. These relationships are frequently diagramed
in organizational charts. Thus, organizational structure is a pattern of relationships among
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various activities and positions. Most organization use some mix of structures like pyramidal,
matrix, or networked ones-to accomplishes their goals. A structure is the formalizing of the
relationship, roles and responsibilities in order to organize and perform work. From the structure
of the organization, we can have the clear picture of the responsibility of the personnel working
in the organization. It refers the differentiation and integration of activities and authority, role
and relationships in the organization.
In simple terms, structure is the pattern in which various parts or components are
interrelated or inter-connected, so organizational structure is the pattern of relationship among
various activities and positions. Hence, organizational structure is the basic framework within
which the managers decisions making behavior takes place.
Various Department Functions of Apollo Tyres:
Commercial Department
Engineering Department
Production Department
PPC, IE and Systems Department
Technical Department
Quality Assurance Department
HR and Administration Department
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OVERALL ORGANISATION CHART OF APOLLO TYRES LTD.
CHAIRMAN
VICE CHAIRMAN AND MD
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CHIEF MFG PROJECTCHIEF MARKETING
HEAD KERALA HEAD BARODA HEAD PUNA
APOLLO TYRES LTDPERAMBRA
APOLLO TYRES LTDKALAMASSERY
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ORGANISATION CHART OF HR
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ORGANISATION CHART OF APOLLO TYRES
HEAD KERALA FACTORIES
CO-ORDINATOR KALAMASSERY PLANT
MANAGER, PPC, IESYSTEM
HEAD HRADMINISTRATION
MANAGER,
ENGINEERING
MANAGER,
HEADPRODUC
T
HEADCOMM
DY.MANAGE
R
HEAD HR
OFFICER HR
DY.MANAGER IR
SR OFFICERMEDICAL
SAFETY
OFFICER
SR OFFICERSECURITY
SR OFFICERPERSONNAL
PERSONNALOFFICER
JUNIOROFFICER
WELFARE
JR. OFFICERRECEPTION
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The functions assigned to the top-level officials in H R department are reorganized and re-
structured for administrative convenience are as follows: -
1) Group Manager H R:-
a) Controls the overall H R functions.
b) Carries out all the H R activities such as I R, time office, security, safety,
personnel,
welfare etc.,
2) Manager I R :-
a) Maintaining harmonies congenial industrial atmosphere
b) All matters concerning state, illegal, disciplinary actions, vigilance assignments.
c) All matters connected with industrial relations pertaining
To workmen under Industrial dispute Act.
3) Executive Time Office:-
a) Maintaining attendance records of workers, staffs and executives
b) Preparation of pay sheet.
c) Calculation of absenteeism and maintaining
Leave records.
4) Executive Security: -
a) Maintains the security of property, personnel and information.
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b) Looks into the arrival and departure of employees, their punching, Control of shift, allotment
of out pass and movement pass for workers, visitors pass etc.
c) Administration of Vigilance, fire fighting and estate.
5) Executive Safety:-
a) Insist work permit for welding and tank entry.
b) All pressure vessels, lifting machines and lifting tackles are tested by competent opinion.
c) LPG sensors are provided at strategic location near the LPG storage area with audio alarm.
d) Various types of first aid fire fighting equipments are kept with in the reach of employees.
e) Regular training in safety and related topics are being conducted.
6) Executive Personnel:-
a) All matters connected with recruitment, career promotion and transfer and
posting,
retirement and reservation guide lines concerning executives staff and workmen.
b) Design and implementation of H R policies.
c) All matters connected with annual performance assessment reports of all
employees.
STRATEGY:
Strategy is a plan of an organization formulates to gain a sustainable advantage over the
competitions. Strategy is the art of devising and employing a system of activities that mobilizes
all resources toward a valuable goal. Strategy is the determination of basic long-term goals and
objectives of an enterprise and the adoption of course of action and the allocation of resources
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necessary for carrying out these goals. In other words the route that the organization has chosen
for its future growth; a plan an organization formulates to gain a competitive advantage.
The main strategy of Apollo tyres is at a sustainable advantage over competition through
best service at reasonable price. It is also trying to improve its position in the minds of the
customers by attending complaints and solving their problem by compensating if the fault is
found to be from the company side.
SYSTEMS:
Systems refer to the process used to manage the organization. Systems include
Management Information System
Innovative System
Performance Management System
Financial system
Compensation System/Reward System
Customer satisfaction monitoring system
A system is defined as a process, or set of processes that links and orders activity to
enable work to be done and goals to be achieved. Systems in simple words are the formal and
informal procedures, including compensation systems, management information system and
capital allocation system that govern everyday activity.
Apollo Tyres uses complete systemized processes in all fields like quality of service,
performance measurements systems etc. The data pertained to various departments is kept in
accordance with the standards set by Apollo Tyres.The company maintains a complete database
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of day to day operations and the data is stored in the system as a black up file for the future
reference. The union is planning to develop full-fledged software for handling data base system.
STAFFING:
Staffing may be defined as filling, and keeping filled the positions in the organization
structures. This is done by identifying workforce requirements, inventorying people available
and recruiting, selecting, placing, promoting, appraising, planning the carriers of compensating
and training or otherwise developing both candidates and current job holders so that task are
accomplished effectively and efficiently
Apollo Tyres requires the services of a large number of personnels. These personnel
occupy various positions created through the process of organizing. These personnel comprise of
the staff of the organization. Each position of the organization makes certain specific
contribution to achieve organizational objectives. Hence, the person occupying the position
should have sufficient ability to meet its requirements. Hence staffing is necessary to match job
and the individuals.
Different departments carry out different functions and each personnel is assigned with
different responsibility. The people in the organization are very dedicated and work towards the
improvement of the organization.
SKILLS:
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A Skill is the ability; knowledge, understanding and judgment to accomplish a task.
Skills may be defined as what the company does best; the distinctive capabilities and
competencies that resides in the organization.
STYLE:
Style of leadership or relationship refers to the manner in which an individual uses his or
her talents, values, knowledge, judgment and attitudes to lead and relate to others. Style is the
leadership approach, also the way in which the organization employees present themselves to the
outside world, to suppliers and customers. In simple words, style is the pattern of behavior,
which a leader adopts in influencing the behavior of his followers in the organizational context.
One element of managers is how they choose to spend time, another aspect is symbolic
behavior. This suggests a second attribute that is by no means confused to those at top. The style
is a reflection of culture more than to change the organization or performance. The management
of Apollo Tyres is completely employee oriented and they strongly believe in the We concept.
The union receives continuous feedback from the workers and decides on the change in
strategies .The management has a democratic style of functioning.
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2.2 SWOT ANALYSIS
STRENGTHS:
- Industry leader in the bus and tyre segment
- Superior product quality
- Strong brand equity
- Best talent bank in the industry
- Dedicated employees with adequate experience
- Superior understanding of market
- Largest distribution network in the country
- Quick response to meet the market needs through an efficient R&D department.
- Healthy financials.
WEAKNESS:
- Low share in passenger car segment
- Insignificance presences in the global market
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OPPORTUNITIES:
- Estimated 12% growth in annual demand
- Opportunities for low cost capacity enhancement
- Through take over and merges
THREATS:
- External-Introduction of truck radials in the market, cheap imports from China and
South East Asian Countries.
- Internal Rising cost of inputs
- Increased re-trading by bus operators.
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DESIGN OF THE STUDY
3.1 NEED FOR THE STUDY
The study has helped me and my company in various ways. It helped me in understanding the
working of various departments in the organization. It has instilled skills used to collect, analyse,
and interpret data. The firm has helped me to find the employees perception towards the
organization and organizations effective ways of performance appraisal done in the
organization.
3.2 STATEMENT OF THE PROBLEM:
It involves the study of the existing performance appraisal at APOLLO TYRES LTD.It
also involves the effectiveness of the performance appraisal at APOLLO TYRES LTD.This
will help in the betterment and improvement of the appraisal process and will deliver various
ways for different appraisal methods and process.
3.3 OBJECTIVE OF THE SYUDY:
The objective of the study conducted at Apollo Tyres Ltd, Kalamassery is to
evaluate. The effectiveness of performance appraisal system.
To find out if there are any drawbacks in the present system of performance
appraisal.
To give suitable suggestions to improve the existing system of performance
appraisal methods in the light of findings.
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3.4 METHODOLOGY OF THE RESEARCH:
A research design is the specification of methods and procedures for acquiring the
information needs to structure or to solve the problems, the type of research used was
Descriptive type.
SOURCES OF DATA-PRIMARY AND SECONDARY
PRIMARY DATA:
In order to collect data for the survey, structured questionnaires were assigned to the employees.
A close-ended questions were administered to the employees. The questionnaires were given to
the employees in various departments and assisted them to answer it.
SECONADRY DATA:
Secondary data was collected from various books and journals and from other documents
from the company.
SAMPLE DESIGN:
Sampling technique: simple random sampling technique has been used. Samples were taken
from all the departments.
Sample size: the sample size was taken to be 50 in total.
Softwares used: MS-excel and MS word has only been used for the purpose of
analyzing the data.
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3.5 SCOPE OF THE STUDY:
The Study was carried with the aim to study the effectiveness of performance appraisal in
APOLLO TYRES LTD. The study was limited to the APOLLO TYRES LTD. Staff and
executives.
3.6 LIMITATIONS:
a. The findings of the study are based on the assumptions that respondents have given true
opinion.
b. Given time frame, which would have been a very small period to make a good
conclusion.
c. The study was restricted only to a few executives, managers, staff and workers in the
organization and there need not be the opinion of majority
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1. Educational qualification of employees in Apollo tyres:
TABLE NO: 4 .1-Educational Qualifications of Employees.
QUALIFICATION NO.OF RESPONSES PERCENTAGE
SSLC 20 40
PDC 5 10
DIPLOMA 10 20
PG 15 30
TOTAL 50 100
CHART NO: 4.1-
0
10
20
30
40
50
SSLC
PDC
DIPLO
MA
PG
QUALIFICATION
PERCENTAGEO
EMPLOYEES
Series1
INTERPRETATION:
From the survey conducted, 40% of the employees have SSLC as there qualification, 10% of
the employees have PDC as their qualification, 20% of them are Diploma holders and the rest
30% are Post Graduates
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2. Work experience of the workers:
TABLE NO: 4.2-Work experience of workers
NO.OF YERAS NO.OF RESPONSES PERCENTAGEAbove 20 years 17 70
15-20 years 5 20
10-15 years 2 8
5-10 years 1 2
TOTAL 25 100
CHART NO: 4.2-
above20year
15-20years
10-15years
5-10years
INTERPRETATION:
From the survey conducted it was found that almost 70% of the employees have an
experience of over 20 years, and most of these employees are in the production department, over
20%of the employees have an experience of 15-20years, nearly 8%of the employees have an
experience of 10-15years and only 2%fall under the category of having experience of 5-10 years.
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Work experience of the executives:
TABLE NO: 4 .3 Work experience of Executives
NO.OF YERAS NO.OF RESPONSES PERCENTAGEAbove 20 years 14 55
15-20 years 5 20
10-15 years 4 16
5-10 years 2 9
TOTAL 25 100
CHART NO: 4.3-
above20year
15-20years
10-15years
5-10years
INTERPRETATION:
Out of the total executives surveyed 55%have an experience of over 20years, 20%of the
executives have an experience of 15-20years, 16%fall in the category of having experience of
10-15 years and 9%fall in the category of having experience of 5-10years.
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3) Designation structure of employees in Apollo Tyres:
TABLE NO: 4.4 Designation structure of employees
DESIGNATION NO.OF RESPONSES PERCENTAGEWorkmen 25 50
Staff 15 30
Supervisors 7 15
Executives 3 5
TOTAL 50 100
CHART NO: 4.4-
workmen
staff
supervisor
executives
INTERPRETATION:
Out of the total work force, 50% of the employees falls under the category of workers who are
mainly in the production department, 30% fall in the category of general staff, 15%are in the
supervisory post and 5%constitutes the top executive post.
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4) Do you agree that performance appraisal and performance in job are related?
TABLE NO: 4.5-to show whether the performance appraisal and performance in job
are related
RESPONSES NO.OF RESPONSES PERCENTAGE
Certain Extent 35 70
Great Extent 15 30
No impact nil nil
TOTAL 50 100
CHART NO: 4 .5-
ce r ta i n e x t
g re a t e x te n
no im pac t
According to the survey, it was found that nearly 70% of the employees agreed that performance
appraisal and performance in job are related, this shows that the employee feel performance
appraisal system can help in evaluating their performance and improve it.
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5).Has the performance appraisal helped in improving your performance in the job?
TABLE NO: 4.6-to know whether performance appraisal helped in improving the
performance of job
RESPONSES NO.OF RESPONSES PERCENTAGE
ConsiderableImprovement
10 40
Slight Improvement 12 50
Not useful 3 10
TOTAL 25 100
Chart no: 4.6-
0
10
20
30
40
50
60
C
ONSIDERABLE
IMPROVEMENT
SLIGHT
I
MPROVEMENT
NOTUSEFUL
PERCENTAGEOFEMPLOYEE
Series1
INTERPRETATION:
According to the survey conducted among the workers of Apollo Tyres,40%of the workers agree
that the appraisal system has helped them in improving their performance in the job to a great
extent,50%of the employees that the appraisal system has had advantage in improving their
performance only to a small extentand 10% of the workers are of the opinion that the appraisal
system has not helped them in improving their performance in the job.
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TABLE NO: 4.7-to know whether performance appraisal helped in improving the
performance of job (EXECUTIVES):
RESPONSES NO.OF RESPONSES PERCENTAGE
ConsiderableImprovement
19 75
Slight Improvement 5 19
Neither improved nordeteriorated
1 6
TOTAL 25 100
CHART NO: 4.7-
0
10
20
30
40
50
6070
80
considerable
improvement
slight
improvement
n
eitheimproved
nor
deterioratedp
ercentageofexecu
tives
Series1
INTERPRETATION:
According to the survey done among the executives and staff in Apollo Tyres,75% of the
staff agree that Performance appraisal system has really helped them in improving their
performance only to a certain extent and 6% of the employees are of the opinion that the
appraisal system has not yielded any benefit to them.
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6) Respondents perception about the performance appraisal system followed in Apollo Tyres:
TABLE NO: 4.8 -to show respondents perception about the performance appraisal system
(WORKERS)
RESPONSES NO.OF RESPONSES PERCENTAGE
Strongly favor 16 66
Slightly Favor 6 22
Neither for noragainst
3 12
TOTAL 25 100
CHART NO: 4 .8-
0
10
20
30
40
50
60
70
strongly
favour
slightly
favour
neither
for nor
against
percentageofemployees
(workers)
Series1
INTERPRETATION:
According to the survey conducted among the workers of Apollo Tyres, almost 66% of
the workers agree and strongly support the performance appraisal system and feel it very
necessary, 22% of the workers slightly favor the appraisal system and 12% of the workers
doesnt feel the appraisal system and 12% of the workers doesnt feel the appraisal system is
necessary in the company
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TABLE NO: 4. 9 -to show respondents perception about the performance appraisal system
(EXECUTIVES):
RESPONSES NO.OF RESPONSES PERCENTAGE
Strongly favor 20 80
Slightly Favor 4 15
Neither for noragainst
1 5
TOTAL 25 100
CHART NO: 4.9-
01 02 03 04 05 06 07 08 09 0
s t r o n g l yf a v o u r
s l igh t lyfav o ur
n e i t h e r f o r n o r
a g a in s t
PERCENTAGEOF
EMPLO
YEES(EXECUTIVES)
S e r ie s
According to the survey it was found that almost 80% of the executives favored the
present appraisal system and felt that it was necessary 15% slightly support the system and
nearly 5% said the appraisal system was not necessary
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7).Level of satisfaction with the present Appraisal system:
TABLE NO: 4.10-to show the level of satisfaction of the present appraisal system:
DESIGNATION NO.OF RESPONSES PERCENTAGEHighly Satisfied 3 6
Satisfied 34 68
Neither for noragainst
9 18
Dissatisfied 4 8
TOTAL 50 100
CHART NO: 4.10-
0
10
20
30
40
50
60
70
80
H
IGHLY
SA
TISFIED
SA
TISFIED
NEITHER
FOR
NOR
AGAINST
DISSATISFIED
P
ERCENTAGE
OFEMPLOYE
Series1
INTERPRETATION:
From the survey it was found that only 6% of the workers were highly satisfied with the
present appraisal system, 68%of the workers said they were satisfied, 18% were neither for nor
against the system also 8% of the workers were dissatisfied with the present appraisal system
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8). Do you have complete knowledge about the criteria used in performance appraisal system?
TABLE NO: 4.11-to show whether the employees have complete knowledge about the
criteria used in performance appraisal system :
RESPONSES NO.OF RESPONSES PERCENTAGE
Low 39 78
Neither low nor high 11 22
High nil nil
TOTAL 50 100
CHART NO: 4.11-
low
neither low n
high
high
INTERPRETATION:
According to the survey conducted it was found that 78% of the workers had low
knowledge about the criteria used in the performance appraisal system and nearly 22% of the
workers did not have any clear idea about the principles used in the performance appraisal
system
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9).Satisfaction of employees in the welfare activities provided by the company:
TABLE NO: 4.12-to show whether the employees are satisfied with the welfare activities
provided by the company:
RESPONSES NO.OF RESPONSES PERCENTAGE
Satisfied 34 68
Neither satisfied nordissatisfied
15 30
Dissatisfied 1 2
TOTAL 50 100
CHART NO: 4.12-
01020304050607080
sat is fied neither
satisfied nor
dissatisfied
dissatisfiedpercentageofemployees
Series1
INTERPRETATION:
The survey conducted among the employees reflected that nearly 68% of the employees
were satisfied with the welfare activities provided by the company, almost 30% of the employees
were neither satisfied nor dissatisfied but they didnt have any complaints against the welfare
measures provided, only 2% of the employees were dissatisfied with the welfare activities
provided.
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10). Are you satisfied with the salaries and wages paid for the job performed?
TABLE NO: 4.13-to show whether the employees are satisfied with the salaries and wages
paid for the job performed:
RESPONSES NO.OF RESPONSES PERCENTAGE
Strongly agree 40 80
Agree 6 12
No comments 4 8
TOTAL 50 100
CHART NO: 4.13-
strongly agr
agree
no comment
INTERPRETATION:
According to the survey conducted it was found that nearly 80% of the employees were
strongly satisfied with the wages paid to them,12% of the workers revealed they were happy with
the pay but desired a rise in their salary and 8% of the workers were not ready to give their
opinion
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11). Do you agree that your superior follow ethical standards during the performance appraisal
process?
TABLE NO: 4.14-to know whether the supervisor follow ethical standards during the
performance appraisal process
RESPONSES NO.OF RESPONSES PERCENTAGE
Agree 49 98
No comments 1 2
Disagree nil nil
TOTAL 50 100
CHART NO: 4.14
0
20
40
60
80
100
120
AGRE
E
NOCOMMENT
S
DISA
GREE
PERCE
NTAGEOFEMPLOYE
Series1
INTERPRETATION:
According to the survey 98% of the employees agreed to the statement that their
supervisor follow ethical standards during the performance evaluation process.
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12).Do you agree that the appraisal system helps in satisfying the training needs of the
employees?
TABLE NO: 4.15to know whether the appraisal system helps in satisfying the training
needs of the employees.
RESPONSES NO.OF RESPONSES PERCENTAGE
Agree 39 78
Neither agree nordisagree
5 10
Disagree 6 12
TOTAL 50 100
CHART NO: 4.15-
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0102030
405060708090
AGREE
neither
agreenor
disagree
DISAGREE
PERCENTAGEOFEMPLOYEES
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INTERPRETATION:
From the survey conducted it was found that 78% of the employees agreed that
performance appraisal system helped in evaluating the training needs and satisfying
it,10%employees neither agree nor disagree,12% employees were of the opinion that
performance appraisal system do not help in satisfying the training needs of the employees.
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13). Opinion about the present appraisal system followed by the company?
TABLE NO: 4.16-to know the opinion about the present appraisal system followed by the
company
RESPONSES NO.OF RESPONSES PERCENTAGE
Good 32 65
Satisfactory 15 30
Not satisfie