Aruna Project

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.
CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 suggestion programs 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.
1.1 INDUSTRY PROFILE

Nothing is complete until it comes back a full circle. Sure, these words have a deeprooted 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
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 as second-generation tyres. 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.
LEADNG INDIAN TYRE COMPANIES AND THEIR TECHNICAL COLLABRATION:
RANK 1. 2. 3. 4. 5. 6. 7. 8.
COMPANY MRF TYRES JK TYRES CEAT TYRES LTD GOOD YEAR, INDIA LTD APOLLO TYRES LTD MODI TYRES LTD BIRLA TYRES LTD DUNLOP INDIA LTD
COLLABRATION Uni Royal Good Rich, USA Continental A.G.Germany Yokohama Rubber Co, JAPAN Good tyre and Rubber co, USA Continental A.G, Germany Modi Rubber Ltd and continental Germany Satin pneumatic piralli spa, Italy Sumikmo rubber Industries-Japan, Dunlop Ltd-UK
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.
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.
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
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) b) c) d) e) Fastest growing Tyre Company in India and seven Th in the world. Eighteenth largest tyre company in the world. The first tyre company in India to obtain ISO9001 certification for all its operation. The first tyre company to induce packaging for tubes, two wheeler tyres and car tyres. 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 Limda Pune Kalamassery Cochin Kerala Gujarat Maharashtra 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. 12 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 Neeraj Kanwar U S Oberoi P K Mohammed S.Asoka Iyer K.Prabhakar Tapan Mitra Sauna Sarkar Sathish Sharma P N Wahal Fraser and Ross Chairman and MD Chief Operating Officer and Whole Time Director Chief Projects and corporate affairs Chief of research and technology Chief, Group Advisory Services Chief, Projects Chief, HR Chief Strategy and Business operations Chief of Marketing Company Secretary 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 Staff Work men Contract Trainees Total 140 108 797 259 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. 14 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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. 2. 3. 4. 5. 6. 7. Commercial Department Engineering Department Production Department PPC, IE and Systems Department Technical Department Quality Department 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 16 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 17 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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: 20 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 23 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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) b) c) d) e) Rider TT Super AmarTT Truck Plus TT Dhruv tt 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 20 th 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 25 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 selfesteem, 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 semiannual), 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 27 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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. 29 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 30 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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
34
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: Be specific Make it well timed
Relate to job
Check for understanding
State it objectively
Allow choice
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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 37 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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. 38 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 360degree 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. 40 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 41 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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. 42 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 46 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 CHIEF MFG PROJECT HEAD KERALA CHIEF MARKETING HEAD BARODA HEAD PUNA
APOLLO TYRES LTD PERAMBRA
APOLLO TYRES LTD KALAMASSERY
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ORGANISATION CHART OF APOLLO TYRES HEAD KERALA FACTORIES CO-ORDINATOR KALAMASSERY PLANT
MANAGE R, PPC, IE SYSTEM HEAD HR ADMINIS TRATION
MANAGE R, ENGINEE RING
MANAGE R, HEAD PRODUC T
HEAD COMM
DY. MANAGE R
ORGANISATION CHART OF HR
HEAD HR
OFFICER HR
SR OFFICER MEDICAL
SR OFFICER SECURITY
DY.MANAGE R IR
SAFETY OFFICER
SR OFFICER PERSONNAL
PERSONNAL OFFICER JUNIOR OFFICER WELFARE

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JR. OFFICER RECEPTION
The functions assigned to the top-level officials in H R department are reorganized and restructured 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 51 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 SSLC PDC DIPLOMA PG TOTAL NO.OF RESPONSES 20 5 10 15 50 PERCENTAGE 40 10 20 30 100
CHART NO: 4.1PERCENTAGE OF EMPLOYEES
50 40 30 20 10 0
A SS LC PD C IP LO PG M
Series1
QUALIFICATION
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 Above 20 years 15-20 years 10-15 years 5-10 years TOTAL NO.OF RESPONSES 17 5 2 1 25 PERCENTAGE 70 20 8 2 100
CHART NO: 4.2-
above20years 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 Above 20 years 15-20 years 10-15 years 5-10 years TOTAL NO.OF RESPONSES 14 5 4 2 25 PERCENTAGE 55 20 16 9 100
CHART NO: 4.3-
above20y ears 15-20y ears 10-15y ears 5-10y ears
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 Workmen Staff Supervisors Executives TOTAL NO.OF RESPONSES 25 15 7 3 50 PERCENTAGE 50 30 15 5 100
CHART NO: 4.4-
work m en s taff s upervis ors ex ec utives
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 Certain Extent Great Extent No impact TOTAL NO.OF RESPONSES 35 15 nil 50 PERCENTAGE 70 30 nil 100
CHART NO: 4 .5-
c e rtain e x te n t g re a t e x te n t n o im pa c 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 Considerable Improvement Slight Improvement Not useful TOTAL Chart no: 4.6PERCENTAGE OF EMPLOYEES
NO.OF RESPONSES 10 12 3 25
PERCENTAGE 40 50 10 100
CONSIDERABLE IMPROVEMENT
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 extent and 10% of the workers are of the opinion that the appraisal system has not helped them in improving their performance in the job. 65 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
SLIGHT IMPROVEMENT
NOT USEFUL
60 50 40 30 20 10 0
Series1
TABLE NO: 4.7-to know whether performance appraisal helped in improving the performance of job (EXECUTIVES): RESPONSES Considerable Improvement Slight Improvement Neither improved nor deteriorated TOTAL CHART NO: 4.7percentage of executives
NO.OF RESPONSES 19 5 1 25
PERCENTAGE 75 19 6 100
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. 66 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
neitheimproved nor deteriorated
considerable improvement
slight improvement
80 70 60 50 40 30 20 10 0
Series1
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 Strongly favor Slightly Favor Neither for nor against TOTAL CHART NO: 4 .8NO.OF RESPONSES 16 6 3 25 PERCENTAGE 66 22 12 100
percentage of employees (workers)
70 60 50 40 30 20 10 0 stro ng ly slig htly ne ithe r favo ur favo ur fo r no r ag ainst
S e rie s1
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 67 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
TABLE NO: 4. 9 -to show respondents perception about the performance appraisal system (EXECUTIVES): RESPONSES Strongly favor Slightly Favor Neither for nor against TOTAL NO.OF RESPONSES 20 4 1 25 PERCENTAGE 80 15 5 100
CHART NO: 4.9-
PERCENTAGE OF EMPLOYEES(EXECUTIVES)
90 80 70 60 50 40 30 20 10 0 s tro n g lys lig h tly n e ith e r f a vo u r f a vo u r f o r n o r a g a in s t
S e rie s 1
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 68 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 Highly Satisfied Satisfied Neither for nor against Dissatisfied TOTAL NO.OF RESPONSES 3 34 9 4 50 PERCENTAGE 6 68 18 8 100
NEITHER FOR NOR AGAINST
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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DISSATISFIED
SATISFIED
HIGHLY SATISFIED
80 70 60 50 40 30 20 10 0
Series1
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 Low Neither low nor high High TOTAL NO.OF RESPONSES 39 11 nil 50 PERCENTAGE 78 22 nil 100
CHART NO: 4.11-
low neither low nor 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 Satisfied Neither satisfied nor dissatisfied Dissatisfied TOTAL CHART NO: 4.12NO.OF RESPONSES 34 15 1 50 PERCENTAGE 68 30 2 100
percentage of employees
80 70 60 50 40 30 20 10 0 satisfied neither dissatisfied satisfied nor dissatisfied
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. 71 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 Strongly agree Agree No comments TOTAL NO.OF RESPONSES 40 6 4 50 PERCENTAGE 80 12 8 100
CHART NO: 4.13-
s trongly agree agree no c om m ents
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 72 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
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 Agree No comments Disagree TOTAL NO.OF RESPONSES 49 1 nil 50 PERCENTAGE 98 2 nil 100
CHART NO: 4.14

PERCENTAGE OF EMPLOYEES
120 100 80 60 40 20 0
TS R E E N A G M M G R E E E
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.
N O
C O
D IS A
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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 Agree Neither agree nor disagree Disagree TOTAL NO.OF RESPONSES 39 5 6 50 PERCENTAGE 78 10 12 100
CHART NO: 4.15-
90 80 70 60 50 40 30 20 10 0 neither agree nor disagree AGREE DISAGREE
Series1
74
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.
75
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 Good Satisfactory Not satisfied TOTAL NO.OF RESPONSES 32 15 3 50 PERCENTAGE 65 30 5 100
70 60 50 40 30 20 10 0
G O O SA D TI SF AC TO NO R Y T SA TI SF IE D
Series1
INTERPRETATION: According to the survey conducted among employees it was found that 65% of the employees supported the existing appraisal system,30 %of the employees revealed they were satisfied with the present system and nearly 5% of the employees said they were not satisfied with the existing system and preferred a change 76 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
14).Do you agree that the company follows a systematic appraisal system? TABLE NO: 4.17-to know whether the company follows a systematic appraisal system RESPONSES Yes No TOTAL NO.OF RESPONSES 45 5 50 PERCENTAGE 90 10 100
CHART NO: 4.17-
y es no
INTERPRETATION: The survey conducted among the employees revealed that nearly 90% of the employees were satisfied with the existing performance evaluation system and only 10% of the employees desired a change in the appraisal system
77
15).Are opportunities provided to the employees to express your view and opinions during the performance appraisal program? TABLE NO: 4.18-to know whether the opportunities are provided to the employees to express there views and opinions during appraisal program RESPONSES Agree Disagree No Comments TOTAL NO.OF RESPONSES 30 15 5 50 PERCENTAGE 60 30 10 100
CHART NO: 4.18-
70 60 50 40 30 20 10 0
E EE AG RE DI SA GR EN TS
Series1
INTERPRETATION: According to the survey it was found that only 60% of the employees agreed that changes were given to the employees to express their views and suggestions in the performance appraisal
NO
CO M
78
process, 30% of the employees were of the opinion that enough opportunities were not given to express the view and problems of the employees and 10% of the employees have no comments. 16).Do you agree that all members in the team work with team spirit?
TABLE NO: 4.19-to know whether all the members in the team work with team spirit RESPONSES Agree Disagree No Comments TOTAL NO.OF RESPONSES 47 3 nil 50 PERCENTAGE 95 5 nil 100
CHART NO: 4.19-
agree DISA GREE NO COM M ENTS
INTERPRETATION: According to the survey conducted, 98% of the employees were of the opinion that all workers worked together with team spirit for achieving their goals and believed in the principle of UNITY IS STRENGTH. 79 CMR INSTITUTE OF TECHNOLOGY, BANGALORE
FINDINGS
Majority of the respondents have an experience of more than 20 years, hence it is ascertained that the information collected is authentic. The qualification of respondent ranges from matriculation to post graduation. Since majority of the respondents are married persons, the information given by them are assumed to be more reliable. The study reveals that majority of the respondents have a service experience of more than 10 years, hence it can be assumed that their knowledge about the company and work is high. Majority of the workers are of the opinion that performance appraisal system helps in improving the performance in job Around 80% of the workers agreed that the performance appraisal system was necessary and could help them to improve their performance in the job. Nearly 74% of the workers were satisfied with the present appraisal system, but nearly 20% of the workers expected some change in the appraisal system. Almost 80% of the workers were satisfied with the pay and other welfare activities provided by the company. The study reveals that nearly 98% of the employees agreed that the superiors followed ethical standard during the performance appraisal system was concluded in a systematic and impartial manner.
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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,difficullty and importance of tasks, job observation, interviewing the job holders help in conducting performance appraisal on a regular basis.e.g six months or annually
The survey conducted among the employees reflected that only 60% of the employees were of the opinion that the employees were given chance to reveal their views and suggestions.
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SUGGESTIONS
The company could update the present performance review form from time to time, so that all modern evaluation tools can be included in the evaluation process. Every year one or more of the employees should be selected for having done outstanding performance in their work, this may be done on the basis of the employees performance, least number of absenteeism, code of conduct and should be awarded accordingly, this acts as a motivating factor to rest of the employees. The company should improve the working conditions of the factory mainly of the workers in the production department. If possible, the company should design different evaluation techniques for evaluating employees in different departments accordingly. Employees should be given more opportunities to express their views and suggestions during the performance appraisal programs. Feed backs after the performance appraisal system should be made available to the employees in the desired manner so that they can know their own performance and make the necessary steps to improve. Informal appraisals should be conducted whenever the supervisor or personnel managers feel it necessary. It is suggested that there must be continuous assessment of effectiveness of performance program and incorporation of suitable modification from time to time in Apollo Tyres.
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CONCLUSION
Performance appraisal does not have to be a deadly disease but nor it is likely to be a panacea. The dangers of expecting too much from it are still real. It can contribute more effectively when integrated into the framework of the performance management system. The study has enabled to understand that the performance appraisal system followed by APOLLO TYRES is effective; also, it has led to improvement in the job performance. Thus, the level of satisfaction with the present appraisal system is found to be satisfactory.
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BIBLIOGRAPHY
ORGANIZATIONAL BEHAVIOR ASHWATHAPPA -Himalaya Publishing House, 5th Edition. ORGANIZATIONAL BEHAVIOR STEPHEN ROBBINS - Prentice Hall of India RESEARCH METHODOLOGY KOTHARI C.R New Age Publications Pvt Ltd. New Delhi Fifth Edition WEBSITES: www.apollotyres.com www.google.com
COMPANY JOURNALS & MAGAZINES ANNUAL REPORTS
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A Survey to Evaluate the effectiveness of performance Review system in Apollo Tyres ltd Kalamassery:
Name: Department: 1. Qualification: SSLC DIPLOMA GRADUATE POST GRADUATE
2. Work Experience: Above 20 years 15-10 years 10-15 years 5-10years
3. Designation of Employee: WORKMEN STAFF SUPERVISORS EXECUTIVES
4. Do you agree that performance appraisal system and performance in job are related? CERTAIN EXTENT GREAT EXTENT NO IMPACT
5. Do you agree that appraisal system is likely to improve your performance? CONSIDERABLE IMPROVMENT SLIGHT IMPROVMENT NOT USEFUL
6. Your perception about performance appraisal system followed? STRONGLY FAVOUR SLIGHTLY FAVOUR NEITHER FOR NOR AGAINST
7. Are you satisfied with the present appraisal system? HIGHLY SATISFIED DISSATISFIED SATISFIED NEITHER FOR NOR AGAINST
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8. Do you have complete knowledge about the criteria used in performance appraisal system? LOW NEITHER LOW NOR HIGH HIGH
9. Are you satisfied with the welfare activities provided by the company? SATISFIED NEITHER SATISFIED NOR DISSATISFIED DISSATISFIED
10. Are you satisfied with the salaries and wages paid for the job performed? STRONGLY AGREE AGREE NO COMMENTS
11. Do you agree that your supervisors follow ethical standards during the Performance Appraisal process? AGREE NO COMMENTS DISAGREE
12. Do you agree that the appraisal system helps in satisfying the training needs of the employees? AGREE NEITHER AGREE NOR DISAGREE DISAGREE
13. Your opinion about the present appraisal system followed by the company? GOOD SATISFACTORY NOT SATISFIED
14. Do you agree that the company follows a systematic Appraisal system? YES NO
15. Are opportunities provided to express your views and opinions? AGREE DISAGREE NO COMMENTS
16. Do you agree that all members in the team ,work with team spirit? AGREE 86 DISAGREE NO COMMENTS CMR INSTITUTE OF TECHNOLOGY, BANGALORE
17. Any other comments\complaints\suggestions? ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
87

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EXECUTIVE SUMMARY

Reasons for the study

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

Objective of the study

Recommendations to make performance appraisal program more effective are:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

1.1 INDUSTRY PROFILE

HISTORY OF INVENTION OF TYRES:

GROWTH OF TYRE INDUSTRY IN INDIA:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

LEADNG INDIAN TYRE COMPANIES AND THEIR TECHNICAL COLLABRATION:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

1.2 COMPANY PROFILE

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

APOLLO TYRES LTD-A PROFILE

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

A) Birds View of Companies achievements:

Manufacturing units an overview:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

Certification Details or Achievements:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

Employee strength of the Company:

Management of Apollo Tyres Ltd:

Human Resource and Administration Department:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

HR function: 1.Human Resource Planning:

2. Recruitment and Selection:

3.Training and Development:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

4.Performance Appraisal System:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

To enhance the future performance of the organization.

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

1.3 PRODUCT PROFILE:

DOMESTIC PRODUCT RANGE: 1) TRUCK TYRES:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

2) PASSENGER CAR TYRES:

4) TWO WHEELER TYRES:

5) ANIMAL DRIVEN VEHICLE:

7) TRACTOR TRAILER TYRES:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

1.4 OPERATIONAL CONCEPTS

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

The link to rewards:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

Performance Appraisal Defined:

Basic purpose of performance appraisal system:

Employees View Point:

Organizational view Point:

Benefits of Performance Appraisal:

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

Guidelines for effective performance feedback: Be specific Make it well timed

Check for understanding

CMR INSTITUTE OF TECHNOLOGY, BANGALORE

Performance Appraisal in Apollo Tyres

CMR INSTITUTE OF TECHNOLOGY, BANGALORE