1

LIVE PROJECT REPORT

TOPIC: A STUDY ON EFFECTIVENESS OF CONFLICT MANAGEMENT IN APOLLO TYRES, PERAMBRA

Submitted by Ranjusha Antony

M.B.A. 2nd sem Human Resource Management

Submitted to, Bindu Anto Submitted on, 18-4-2011

DECLARATION I, Ranjusha Antony, a bonafide student of business administration, Indigrow Institute of Professional Studies, Thrissur. I would like to declare that the projects titles A Study on Effectiveness of Conflict Management of Apollo Tyres Ltd is an original work which has been done by me in partial fulfillment of the requirement for the award of the degree of Master of Business Administration of Manonmaniam Sundarnar University, Chennai.

Place: Thrissur Date: 18-4-2011 RANJUSHA ANTONY

ACKNOWLEDGEMENT If words are considered a symbol of approval and tokens of acknowledgement, then the following words play the heralding role of expressing my gratitude. A large number of individual has contribute directly or indirectly in bring out this project I am thankful to all of them for their help and encouragement. I thank to beloved GOD for the success of the study. I would like to mention my sincere thanks to the CEO of Apollo Tyres Ltd, Mr.Sreekumar sir. I would like to mention my sincere thanks to our beloved center coordinator Mr. Devarajan sir for his sincere support and co-operation for conducting the study. And also I express my sincere gratitude to my project guide Ms. Bindu Anto for her valuable comments and suggestions which enabled me to complete my work in time.

CONTENTS Sl. No Particulars Declaration Acknowledgement CHAPTER-1 Introduction  Introduction to the study  Rational of the study  Objectives of the study  Research methodology  Research design  Data collection  Variables understudy  Limitations of the study CHAPTER-2 CHAPTER-3 Theoretical Concepts  Profile of the organization  Present status of the organization  Product line  Business operations CHAPTER-4  Findings, suggestions and conclusion  Findings  Suggestions  Conclusion Bibliography Annexure Page No.

Introduction to the study The project emphasis the details of the organization. The study conducted at Apollo Tyres Ltd Perambra. This study was to get familiarity with an industrial atmosphere and to learn more about effectiveness of conflict management styles in that organization. This study helps to know the companys position in the market and also to understand the effectiveness of conflict management styles. This study conducted through various research methods to analyze the problem and to collect the information properly. Human resources are the most valuable and unique assets of an organization. The successful management of an organization's human resources is an exciting, dynamic and challenging task, especially at a time when the world has become a global village and economies are in a state of flux. The scarcity of talented resources and the growing expectations of the modern day worker have further increased the complexity of the human resource function. Even though specific human resource functions/activities are the responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organization. The human resources of an organization consist of all people who perform its activities. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function. The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM

responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job.

Conflict may be defined as a struggle or contest between people with opposing needs, ideas, beliefs, values, or goals. Conflict on teams is inevitable; however, the results of conflict are not predetermined. Conflict might escalate and lead to nonproductive results, or conflict can be beneficially resolved and lead to quality final products. Therefore, learning to manage conflict is integral to a high-performance team. Although very few people go looking for conflict, more often than not, conflict results because of miscommunication between people with regard to their needs, ideas, beliefs, goals, or values. Conflict management is the principle that all conflicts cannot necessarily be resolved, but learning how to manage conflicts can decrease the odds of nonproductive escalation. Conflict management involves acquiring skills related to conflict resolution, self-awareness about conflict modes, conflict communication skills, and establishing a structure for management of conflict in your environment.

What factors can affect our conflict modes? Some factors that can impact how we respond to conflict are listed below with explanations of how these factors might affect us. Gender Some of us were socialized to use particular conflict modes because of our gender. For example, some males, because they are male, were taught always stand up to someone, and, if you have to fight, then fight. If one was socialized this way he will be more likely to use assertive conflict modes versus using cooperative modes.

Self-concept How we think and feel about ourselves affect how we approach conflict. Do we think our thoughts, feelings, and opinions are worth being heard by the person with whom we are in conflict? Expectations Do we believe the other person or our team wants to resolve the conflict? Situation Where is the conflict occurring, do we know the person we are in conflict with, and is the conflict personal or professional? Position (Power) what is our power status relationship, (that is, equal, more, or less) with the person with whom we are in conflict? Practice involves being able to use all five conflict modes effectively, being able to determine what conflict mode would be most effective to resolve the conflict, and the ability to change modes as necessary while engaged in conflict. Determining the best mode Through knowledge about conflict and through practice we develop a conflict management understanding and can, with ease and limited energy, determine what conflict mode to use with the particular person with whom we are in conflict. Communication skills The essence of conflict resolution and conflict management is the ability to communicate effectively. People who have and use effective communication will resolve their conflicts with greater ease and success. Life experiences As mentioned earlier, we often practice the conflict modes we saw our primary caretaker(s) use unless we have made a conscious choice as adults to change or adapt our conflict styles. Some of us had great role models teach us to manage our conflicts and others of us had less-than-great role models. Our life experiences, both personal and professional, have taught us to frame conflict as either something positive that can be worked through or something negative to be avoided and ignored at all costs.

Rationale of the study The study becomes important because by using a study like this the company can find out the drawback of its employees and their satisfaction and to make it efficient and effective. The study helps to improve the efficiency and ensure growth at the organization.

Objectives of the study  To identify the satisfaction level of employees.  To understand what are the problems are facing by employees.  To understand how the management solve problems in that organization. Research methodology Research methodology means the scientific method of conducting a research it is the research design which can be selected for conducting a study according to the nature and scope of the subject. It is the sequential and systematic procedure of conducting a research. Research design Research design is the plan structure and strategy of investigating conceived so as to obtain answers to reach questions and to control variance. It is like a blueprint of research it keys down the method and procedure for the collection of requisite information and its measurement analysis with view to arriving at certain meaningful conclusions at the end of the proposed study. There are three types of research design: a) Exploratory design: - it is one where a preliminary study of an unfamiliar problem of which the researcher has little or no knowledge. b) Descriptive design: - it is concerned with the detail description of certain functional variables and characteristics of a problem situation. c) Casual design: - it is concerned with the study of the cause and effect relationship between two or more variables. Here descriptive design is used. It is concerned with the detail description of certain functional variables and characteristics of a problem situation.

10

DATA COLLECTION Data collection method one should known about the variety and sources of data. This may yield derived results. There are two types of data used primary data and secondary data. PRIMERY DATA Primary data means those data which are collected at first hand either by the researcher himself or by someone else especially for the purpose of the study known as primary data. Source of primary data is direct interview. SECONDARY DATA Secondary data means in the hands of a researcher a data becomes secondary data if it was gathered earlier for some other purpose. Sources of secondary data are records, books, and web site. Variables understudy Variables understudy includes what are the main variables, dependent or independent things that are coming under my topic. Dependent variables A study on effectiveness of conflict management styles of Apollo Tyres Ltd. Independent variables  Power  Goals  Gender  Climate

11

 Cultural Assumptions  Strategies and Tactics  Style

Limitations of the study  The research was conducted within limited duration. So detailed and comprehensive study could not be made.

12

THEORETICAL CONCEPTS

What is conflict and conflict management? Conflict may be defined as a struggle or contest between people with opposing needs, ideas, beliefs, values, or goals. Conflict on teams is inevitable; however, the results of conflict are not predetermined. Conflict might escalate and lead to nonproductive results, or conflict can be beneficially resolved and lead to quality final products. Therefore, learning to manage conflict is integral to a high-performance team. Although very few people go looking for conflict, more often than not, conflict results because of miscommunication between people with regard to their needs, ideas, beliefs, goals, or values. Conflict management is the principle that all conflicts cannot necessarily be resolved, but learning how to manage conflicts can decrease the odds of nonproductive escalation. Conflict management involves acquiring skills related to conflict resolution, self-awareness about conflict modes, conflict communication skills, and establishing a structure for management of conflict in your environment. What is CONFLICT MANAGEMENT? Conflict management is what were doing when we identify and deal with conflict in a reasonable manner. To manage conflict the United States Department of Agriculture (http://www.usda.gov/cprc/understand.htm) says we must develop and use skills like effective communication, problem solving, and negotiating. When we resolve issues, we need to focus on the things we need or desire as a group, and not things needed or wanted by individuals. This promotes working with each other instead of against each other. There are some proven strategies that you can use to help resolve conflicts within your groups.

13

The Ohio Commission on Dispute Resolution and Conflict Management (http://disputeresolution.ohio.gov/schools/contentpages/styles.htm) describes five popular styles.

 Collaborating  Why should I collaborate?: Cooperation will help everyone achieve their goals and keep relationships healthy.  A Collaborators Attitude: Talking through the conflict will help us find creative ways to solve our problems where everyone is satisfied in the end.  When should I collaborate?: Everyone trust each other No one wants total decision or resolution power Everyone needs to have a part in the decision Everyone involved will change their thinking as more information is available People need to work through personal hurts and disappointments  When should I choose another method?: When you need a resolution that wont take a lot of time and money When some may take advantage of others trust  COMPROMISING  Why should I compromise?: Winning something while losing a little is sometimes okay.  A Compromisers Attitude: We should all meet halfway to do what is best for the group and each of us can still get part of what we want.  When should I compromise?:  No one at the table has more position or power than anyone else and everyone is equally committed to the groups goals.

14

 Time can be saved by agreeing on a situation that works for everyone for now  Achieving all of your goals are only somewhat important  When should I choose another method?:  Things that are important to you may be lost in the fray Someones demands are too great for the rest of the table  ACCOMODATING  Why should I accommodate?: Our commonalities are more important than other issues and facing differences may hurt relationships.  An accommodators attitude: I will please others by playing down how important the issue or conflict is in order to protect relationships.  When should I accommodate?: Issues not as important to you as it is to others You know you cant win Everyone agreeing is the most important thing The things people have in common are more important than their differences  When should I choose another method?: Some ideas dont get attention Credibility and influence can be lost  COMPETING  Why should I compete?: Resolving a conflict is associated with competition and winning.  A competitors attitude: I must use all of my power to win the conflict.  When should I compete?: You know youre right A quick decision is necessary Strong personalities are overshadowing other people Defending your rights or position

15

 When should I choose another method?: Can make conflict worse Those on the losing end may attempt to get back at the winners  AVOIDING  Why should I avoid?: Not the right time or place to address this issue.  An avoiders attitude: I avoid conflict by leaving, avoid, or putting off discussions.  When should I avoid?: Conflict is small and the future of a relationship is at stake There is no time to devote to conflict resolution Other issues are more important than the conflict There is no chance of getting your concerns heard One party is too emotionally involved and others can better resolve the conflict More information is needed  When should I choose another method?: Decisions may be made by default Putting off or avoiding issues may make matters worse Many people think of conflict as negative. But conflict can be both negative AND positive. The National School Board Association in their Toolkit for Educational Leadership (http://www.nsba.org/sbot/toolkit/Conflict.html) tells us that . . . Conflict is negative when it Takes attention away from other activities Damages the spirit of the team or an individual Divides people and groups, and makes cooperation difficult Makes people or group focus on their differences

16

Leads to harmful behavior, like fighting or name-calling But it can be positive or constructive when it Clears up important problems or issues Brings about solutions to problems Gets everyone involved in solving issues Causes real communication Release emotion, anxiety, and stress in a positive way Helps people learn more about each other and cooperate Develops understanding and skills

Steps to Analyzing Conflict How can you manage conflict and disagreements in ways that strengthen instead of damage personal and professional relationships? These five steps from the Watershed information Network at Purdue University (http://www.ctic.purdue.edu/KYW/Brochures/Manage Conflict.html) could help you out STEP 1: ANALYZE THE CONFLICT Dont be afraid to ask questions of everyone involved. Take in answers from a variety of sources, and gain as much information as you can. STEP 2: DETERMINE YOUR MANAGEMENT STRATEGY When you understand the basis of the conflict and everyone involved, you will need to develop a plan to manage the conflict. There are many plans to choose from, so you can pick the one that is most appropriate for your situation. STEP 3: PRE-NEGOTIATION Steps must be taken for discussion to begin. This to think about includes: Someone has to start the conversation! If neither party is willing to do so, bring in an outsider who will remain neutral to begin discussions.

17

Everyone must be ready to come to the table, to work together, and resolve the issues. The group must agree on rules for the discussion. Some ideas of things to include are: ways well communicate and how well make the final decision. BE ORGANIZED! Location, time, place and materials must all be in order for conflict management to work. Everyone at the table must agree on what information is put on the table, relevant to the conflict, and how the group will get answers to questions.

STEP 4: NEGOTIATION Negotiations should be discussions that include: Reasons, needs, concerns and motivations for differing positions Current options Evaluation of all the current options Written agreement that documents what everyone understands Everyone must be confident that all parties will follow through with their parts of the agreement. Make sure everyone is on the same page and understands the expectations. STEP 5: POST-NEGOTIATION Once negotiation is complete, the group should take the actions they decided upon. Individuals should get support from outside parties who may have been involved in some way. Outsiders must be on board with the terms of the agreements reached during Step 4. Communication and working together should continue throughout this process.

18

Why learn more about conflict and conflict management? Listening, oral communication, interpersonal communication, and teamwork rank near the top of skills that employers seek in their new hires. When you learn to effectively manage and resolve conflicts with others, then more opportunities for successful team memberships are available to you. If we can learn to manage this highly probable event called conflict (we average five conflicts per day), then we are less apt to practice destructive behaviors that will negatively impact our team. Although conflict may be misunderstood and unappreciated, research shows that unresolved conflict can lead to aggression. Most of us use conflict skills that we observed growing up, unless we have made a conscious effort to change our conflict management style. Some of us observed good conflict management, while others observed faulty conflict management. Most of us have several reasons to improve our conflictmanagement skills. Faculty members should help students develop their conflict management skills. Most people do not resolve conflicts because they either have a faulty skill set and/or because they do not know the organizations policy on conflict management. All team members need to know their conflict styles, conflict intervention methods, and strategies for conflict skill improvement.

How do people respond to conflict? Fight or flight? Physiologically they respond to conflict in one of two waysthey want to get away from the conflict or they are ready to take on anyone who comes our way. Think for a moment about when you are in conflict. Do you want to leave or do you want to fight when a conflict presents itself? Neither physiological response is good or badits personal

19

response. What is important to learn, regardless of our initial physiological response to conflict, is that we should intentionally choose our response to conflict. Whether they feel like we want to fight or flee when a conflict arises, they can deliberately choose a conflict mode. By consciously choosing a conflict mode instead of to conflict, they are more likely to productively contribute to solving the problem at hand.

How might you select your conflict management style? There are times when we have a choice to engage in or avoid a conflict. The following six variables should be considered when you decide whether to engage in a conflict. 1. How invested in the relationship are you? The importance of the working/personal relationship often dictates whether you will engage in a conflict. If you value the person and/or the relationship, going through the process of conflict resolution is important. 2. How important is the issue to you? Even if the relationship is not of great value to you, one must often engage in conflict if the issue is important to you. For example, if the issue is a belief, value, or regulation that you believe in or are hired to enforce, then engaging in the conflict is necessary. If the relationship and the issue are both important to you, there is an even more compelling reason to engage in the conflict. 3. Do you have the energy for the conflict? Many of us say, There is not time to do all that I want to do in a day. Often the issue is not how much time is available but how much energy we have for what we need to do. Even in a track meet, runners are given recovery time before they have to run another race. Energy, not time, is being managed in these situations.

20

4. Are you aware of the potential consequences Prior to engaging in a conflict, thinking about anticipated consequences from engaging in the conflict is wise. For example, there may be a risk for your safety, a risk for job loss, or an opportunity for a better working relationship. Many times people will engage in conflict and then be shocked by the outcome or consequence of engaging in the conflict. Thoughtful reflection about the consequences, both positive and negative, is useful before engaging in or avoiding a conflict. 5. Are you ready for the consequences? After analyzing potential consequences, determine whether you are prepared for the consequences of engaging in the conflict. For example, one employee anticipated a job loss if she continued to engage in the conflict she was having with her boss over a particular issue. After careful consideration, the employee thought and believed strongly enough about the issue that she did engage in the conflict with her boss. Her annual contract was not renewed for the upcoming year. Because this individual had thought through the consequences of engaging in the conflict, she was prepared to be without a job for a while and able to financially and emotionally plan for this outcome. Most consequences of engaging in conflict are not this severe, but this example illustrates the value of thinking through consequences. 6. What are the consequences if you do not engage in the conflict? To avoid losing a sense of self, there are times when you must engage in conflict. Most people have core values, ideas, beliefs, or morals. If a person is going to sacrifice one of their core beliefs by avoiding a conflict, personal loss of respect must be considered. In such cases, even if a person is not excited about confronting the conflict, one must carefully consider the consequences of evading the conflict. When the personal consequences of turning away from the conflict outweigh all other factors, then a person usually must take part in the conflict.

21

PROFILE OF THE ORGANIZATION Apollo Tyres Ltd. (ATL) was incorporated 28th September, 1972 as a Public Limited Company and obtained certificate of Commencement of Business on October 24, 1972. The Company was promoted by Bharat Steel Tubes, Ltd. Raunaq International Pvt. Ltd., Raunaq & Co. Pvt. Ltd., Raunaq Singh, Mathew T. Marattukalam and Jacob Thomas. The Company manufactures automobile tyres and tubes, camel back/retreading materials and rubber conveyor belts. Apollo Tyres Ltd is the world's 15th biggest tyre manufacturer, with annual revenues of Rs 81 billion (US$ 1.8 billion) in 2010. It was founded in 1976. Its first plant was commissioned in Perambra, Kerala. In 2006 the company acquired Dunlop Tyres International of South Africa. The company now has four manufacturing units in India, two in South Africa, two in Zimbabwe and 1 in Netherlands. It has a network of over 4,000 dealerships in India, of which over 2,500 are exclusive outlets. In South Africa, it has over 900 dealerships, of which 190 are Dunlop Accredited Dealers. It gets 59% of its revenues from India, 28% from Europe and 13% from Africa. It is planning to become the 10th biggest tyre manufacturer in the world with annual revenues of $5 billion. Answers to the question

What is the real problem in Perambra plant?

We can't allow the attempt to get allowances without working in an era of industrial competition. The whole problem began when a direction was given to follow some guidelines in production.

22

Who is posing a hurdle for reopening the plant?

We are ready to reopen the plant but prior to that the employees must agree to our three conditions and sign the agreement. They must agree for a 340 tone production, legal bonus and must permit to make temporary appointments when permanent employees are on leave or not working.

Is there a situation of work overload and less allowance?

Not at all. Apollo Tyres have been giving allowance more than any company in Kerala. The monthly salary between Rs 16,000 and Rs 30,000 is not less especially in a state where unemployment is far too many. Apart from that, when there is increased production we give special allowances. We are giving bonus more than it is legally advised. As per the new long term contract, the employees will get a hike of Rs 4800 in their salary. Then how can you say that it is less? It is painful to know that without trying to raise productivity by treating it as their own company; they are trying to get allowance without working.

How do you intend to solve this problem?

It is not the company which had created or is creating problems. My son and vice-chairman and managing director of the company Neeraj R S Kanwar had discussions. I had already mentioned about my emotional attachment to the employees here. So I can understand their plight when a month's salary had not reached their homes. But employees seldom realize that neither me nor my company are at a loss if the company shuts work. They should understand they are working for their own and should understand the present labor crisis .

There are some misunderstandings among the workers and the trade union leaders might be

23

behind that too. Some persons who are heading the union for years are creating problems. They have nothing to lose. We are advocating for a union election once in three years to avoid the same.

How do people respond to conflict? Fight or flight? Physiologically they respond to conflict in one of two waysthey want to get away from the conflict or they are ready to take on anyone who comes our way. Think for a moment about when you are in conflict. Do you want to leave or do you want to fight when a conflict presents itself? Neither physiological response is good or badits personal response. What is important to learn, regardless of our initial physiological response to conflict, is that we should intentionally choose our response to conflict. Whether they feel like we want to fight or flee when a conflict arises, they can deliberately choose a conflict mode. By consciously choosing a conflict mode instead of to conflict, they are more likely to productively contribute to solving the problem at hand.

What are the steps being taken by the company to overcome global economic crisis?

Our present transactions point out that crisis has not affected the Indian market much. The main problem was caused in export business and in the European markets. Apollo Tyres is heading with a goal to become number one. To reach that we are manufacturing the highest quality and reliable tyres abiding to world standards in new models. At the same time we are enforcing strict financial discipline. In some places we have reduced production and lessened the number of workers. The plants are arranged in such a way so as to work for 24 hrs a day.

24

FINDINGS AND SUGGESIONS FINDINGS  Management provides so many facilities to their employees like bonus, additional allowances etc.  Management tries to understand the problems of employees.  Lack of leadership is a main problem in the organization.  Poor communication between management and employees.

SUGGESIONS  Keep good relationship between management and employees that will also helpful to the organization.  Supervisors try to understand the problems of his subordinates.  Give proper time to relaxation that will reduce the over burden of employees.

25

CONCLUSION Why conflicts arise In most organizations, conflicts increase as employees assert their demands for an increased share in organizational rewards, such as position, acknowledgment, appreciation, monetary benefits and independence. Even management faces conflicts with many forces from outside the organization, such as government, unions and other coercive groups which may impose restrictions on managerial activities Conflict is when two or more values, perspectives and opinions are contradictory in nature and haven't been aligned or agreed about yet, including: 1. Within yourself when you're not living according to your values; 2. When your values and perspectives are threatened; or 3. Discomfort from fear of the unknown or from lack of fulfillment. Conflict is inevitable and often good, for example, good teams always go through a "form, storm, norm and perform" period. Getting the most out of diversity means oftencontradictory values, perspectives and opinions.

Conflict is often needed. It: 1. Helps to raise and address problems. 2. Energizes work to be on the most appropriate issues. 3. Helps people "be real", for example, it motivates them to participate. 4. Helps people learn how to recognize and benefit from their differences. Conflict is not the same as discomfort. The conflict isn't the problem - it is when conflict is poorly managed that is the problem.

26

Conflict is a problem when it: 1. Hampers productivity. 2. Lowers morale. 3. Causes more and continued conflicts. 4. Causes inappropriate behaviors. Types of Managerial Actions that Cause Workplace Conflicts 1. Poor communications a. Employees experience continuing surprises, they aren't informed of new decisions, programs, etc. b. Employees don't understand reasons for decisions, and they aren't involved in decisionmaking. c. As a result, employees trust the "rumor mill" more than management. 2. The alignment or the amount of resources is insufficient. There is: a. Disagreement about "who does what". b. Stress from working with inadequate resources. 3. "Personal chemistry", including conflicting values or actions among managers and employees, for example: a. Strong personal natures don't match. b. We often don't like in others what we don't like in ourselves. 4. Leadership problems, including inconsistent, missing, too-strong or uninformed leadership (at any level in the organization), evidenced by: a. Avoiding conflict, "passing the buck" with little follow-through on decisions. b. Employees see the same continued issues in the workplace. c. Supervisors don't understand the jobs of their subordinates.

27

BIBLIOGRPHY Web site: http://www.rncos.com/Market-Analysis-Reports/Indian-Tyre-Industry-AnalysisIM267.htm http://en.wikipedia.org/wiki/Apollo_Tyres http://managementhelp.org/intrpsnl/basics.htm http://www.bizcommunity.com/Article/196/186/28530.html