aruna project

8/3/2019 Aruna Project

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EXECUTIVE SUMMARY

Every organization needs to have well performed, well trained and well experienced people to

perform the activities that have to be done. When the current or potential job occupant cannot

meet the requirements, it is necessary to raise the skill level and increase the versatility and

adaptability of the employees.

Performance appraisal is a method of evaluating the behavior of employees in the work

spot, normally including both the quantitative and qualitative aspects of job performance.

It is a continuous process in every large scale organization

Thus this research has been undertaken the effectiveness of training and of the management.

It specifies those gaps or discrepancies in performance that actually exist between what people

are capable of doing, what they should be doing and what is expected from them in the future.

Reasons for the study

An effective system of identification of appraisal need helps in imparting right appraisal

for the right people at right time, which will improve performance and thereby help in

organizational success and development.

The information collected through survey will help in sorting out needs from wants and

then clarifying which of the needs discovered are actually performance appraisal needs.

CMR INSTITUTE OF TECHNOLOGY, BANGALORE1


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Objective of the study

The objective of the study conducted at Apollo Tyres Ltd, Kalamassery,Kerala is to

evaluate the effectiveness of performance appraisal system.

To find out if there are any drawbacks in the present system of Performance

appraisal.

To give suitable suggestions to improve the existing system of performance appraisal

methods in the light of findings.

Methods of performance appraisal adopted in various aspects, views on the impact of appraisals

done on the employees of Apollo Tyres. This brings in the employees suggestions towards

improvement of the existing performance appraisal program in Apollo Tyres. The suggestionprograms were analyzed. Data was tabulated with a follow up of analysis and inferences

made.

Some of the major findings from the analysis carried out are:

Majority of the respondents agreed that through observation, work sampling, interviews

and questionnaires, proper performance appraisal can be identified.

Majority of the respondents agree that changes in duties and responsibility, difficulty and

importance of the tasks, job observation, interviewing the jobholders help in conducting

performance appraisal on a regular basis.e.g. Six months or annually.

Recommendations to make performance appraisal program more effective

are:

It is suggested that there must be continuous assessment of effectiveness of performance

program and incorporation of suitable modifications from time to time in Apollo Tyres.

Informal appraisals should be conducted whenever the supervisor or personnel managers

feel it necessary.



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1.1 INDUSTRY PROFILE

Nothing is complete until it comes back a full circle. Sure, these words have a deep-

rooted meaning, but what hey also; hide within is the fact that a circle forms an intrinsic part of

human life. The invention of wheel is still considered to be one of the most significant inventions

in the history of mankind.

The wheels are all around us. In our cars, trains, planes, machines and most factory and

farm equipment. The oldest wheel was found in archeological excavations was discovered in

what was Mesopotamia and is believed to be over 55 hundred years old. But 55 hundreds years

later, a wheel has become a more significant player in our lives than it probably did then.

HISTORY OF INVENTION OF TYRES:

1. It was in the year 1888 that John Boyel Dunlop made an air tube device for his son to

cushion the side of his bicycle. This lead to the invention of pneumatic tyres.

2. 60 years after, in 1948, Michelin invented the radial technology and this was the first

radial tyre that came into being.

3. Firestone developed the first pneumatic tractor tyres.

GROWTH OF TYRE INDUSTRY IN INDIA:

The tyre industry began to grow in India during 1930s. The growth of tyre in India may

be divided into 3 phases. In the first phase, multinational came to India and started selling tyres.

The first among them was firestone followed by other multinationals like Good Year etc



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In the second phase, the multinationals started their production in India and they became

the first generation tyres, Dunlop was the first company, which started the domestic production

at Calcutta.

In the third phase of Indian tyre, industry began when Indian companies started

producing tyres, which came to be called assecond-generationtyres. Important among them are

MRF tyres, PREMIER tyres, GOOD YEAR, CEAT etc. They started production in the 60s.

Later in the 1970s, the 3rd generation tyres started their production .The main 3rd

generation tyres are APOLLO, VIKRANTS, JK Tyres, and MODI Tyres etc.

All tyre companies that started its operation after the 70s and the tyre companies, which

are yet to start production, are classified under the head of further generation. Notable among

them are S KUMAR Tyres, RADIAL tyres, and SRICHAKRA tyres, BIRLA etc.

Market leader in the Indian tyre industry are MRF, JK tyres, CEAT, GOODYEAR,

APOLLO, MODI RUBBER, BIRLA tyres. They are updating their strategies in order to hold

their market share and invade others.



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LEADNG INDIAN TYRE COMPANIES AND THEIR TECHNICAL

COLLABRATION:

RANK COMPANY COLLABRATION

1. MRF TYRES Uni Royal Good Rich, USA

2. JK TYRES Continental A.G.Germany

3. CEAT TYRES LTD Yokohama Rubber Co, JAPAN

4. GOOD YEAR, INDIA LTD Good tyre and Rubber co, USA

5. APOLLO TYRES LTD Continental A.G, Germany

6. MODI TYRES LTD Modi Rubber Ltd and continental Germany

7. BIRLA TYRES LTD Satin pneumatic piralli spa, Italy

8. DUNLOP INDIA LTD Sumikmo rubber Industries-Japan, Dunlop

Ltd-UK



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1.2 COMPANY PROFILE

INTRODUCTION ABOUT THE ORGANISATION:

HISTORY OF THE CONCERN:

Apollo, named after the GREEK SUN god has created a remarkable identity for itself in

the tyre market so that the name itself has became a synonymous with brand. In its constant

pursuit of excellence, Apollo has come a long way up of the corporate gradient. The history of

Apollo the company can be tracked back to the 70s,when hard nosed MNCs and Indian Tyre

majors dominated the tyre industry. Since its incorporation in1972, Apollo has suffered huge

losses in its infant years, owing to the fact that all tyre majors had high production capacities as

compared to the market demand.

Within a decade through backed by its strong production and marketing strategies,

Apollo had catapulted itself among the top tyre companies of the country. Thanks to its state of

art, technology, goal oriented people and clear adventurous vision of the top management.

Apollo has become a name to recon with, not just in the nylon but also in the radial tyre

segment. Change is something Apollo as a corporation has always been comfortable with and

never feared. Years ago, with a view of position itself in the premier tyre segment, Apollo

decided to price its brand reasonably higher than its competitors. It thus targeted a customer

segment for which price was almost a non-issue. The key criterion was product benefit. Premium

branding lead to the development of the niche that comprised those who looked for the best tyre

and not necessarily the best bargain. This made the company less vulnerable to vulnerable to

recessionary trends in the years to come.



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APOLLO TYRES LTD-A PROFILE

Apollo tyres ltd, incorporated in the year 1972 in collaboration with general tyres

international corporation USA (now owned by M/S Continental AG Germany) the 4th largest tyre

companies in India. The corporate head quarter is located at New Delhi and its registered office

is at Cochin. The company also has a state at the art plants at Perambra near Cochin and in

Limda near Baroda. The company also has a tube factory installed at Ranjangon near Pune in the

state of Maharashtra.

The first manufacturing unit which is located in Perambra, at Trichur district, Kerala

commenced commercial production of automatic tyres, tubes and flaps in the year 1977.The

company was bagged down by a loss of Rs.27.8crores from 1977 to 1981.It was in 1982 that

Apollo formulated and put in to action series of pragmatic profit generation policies geared

towards turn around.

A dynamic new management team under the leadership of Vice Chairman and MD

Mr.Omkar S Kanwar took over the helm of commercial affairs. The objectives were refined with

emphasis on growth through quality products and services, aggressive market penetration and

expense containments. In 1984,Apollo tyres limited wipe out entire accumulated loss even

posted a profit of Rs.57 lakhs BIFR handed over premises tyres limited. (The plant is situated at

kalamassery near Cochin) to Apollo tyres limited on 17 Th April 1995 and products are being

made in Apollo brand name.

With this view, achievement the company has expected its manufacturing bear to emerge

as the number one tyre company in India. In 1995-96, Apollo clocked turnover Rs.1250crores.



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Today Apollo Tyres Limited is the fastest growing and most profitable company in India.

The company manufactures and sells wide range of tyres and tubes and flaps. Apollo Tyres is the

number one truck and passenger tyre manufactures of India.

The company is also a major manufactures of light commercial vehicle and tractor tyres.

The company produces the top branch like storm XTT and Mile Star XTT which spell quantity

and quality, which is a reflection of class to serve the needs of the customers. Apollo tyres have

been ranked as the 16 Th larger and seven Th fastest growing company in the world by the

European rubber journal, considered as an International authority.

VISION:

A leader in the Indian Tyre Industry

And a significant global player

Providing customer delight

And enhancing share holders value

CORE VALUES:

C care for customers

R- Respect for associates

E Excellent through team

A-Always learning

T-Trust mutually

E-Ethical value



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Apollo Tyres aims to achieve a turnover of $1 Billion by 2005-2006.Our corporate

objectives in support of this are:

Employees satisfaction

Customer delight

Revenue growth

Operating margin improvements.

A) Birds View of Companies achievements:

a) Fastest growing Tyre Company in India and seven Th in the world.

b) Eighteenth largest tyre company in the world.

c) The first tyre company in India to obtain ISO9001 certification for all its operation.

d) The first tyre company to induce packaging for tubes, two wheeler tyres and car tyres.

e) The first tyre company to have the concept of exclusive showrooms for truck tyres called

the Apollo Tyres World.

f) Only Tyre Company with more than 100 sales and services offices in India.

Manufacturing units an overview:

Perambra Cochin Kerala

Limda Gujarat

Pune Maharashtra

Kalamassery Premier Tyres Factory



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As the countrys leading tyre-manufacturing company Apollo takes the pride in its

manufacturing units spread across the country. Using state of the art equipment and cutting edge

technology, its unit has the ability to utilize potential to the optimum and meet the growing and

ever-changing customer needs. In keeping with the policy the move with the times and use

superior technology all, our plants and manufacturing units are completely digitized. To ensure

minimum errors and effective quality controls that helps us to reduce the manufacturing costs.

Companys journey began in 1977 when Apollo set up its very first manufacturing unit at

Perambra in Kerala with the production capacity of 188 tones

The Limda plant was instituted in 1991;following which all Apollo brand products were

manufactured there currently the plant has a total capacity of 230 tones. The existing plant is

being modernized with an investment of Rs.110 crores. In 1995, Apollo also took over the

factory of Premier Tyres Limited at Kalamassery Kerala.

This plant is now the source of most of the tyre company export. In addition, Apollo also

built a new plant at Rajangon at Pune in 1977 to manufacture tyre tubes. The plant has a

production capacity of 34 tones.

Perambra Plant (Kochi)

Perambra plant has the largest employer of people amongst the private sector

companies in Kerala. Currently the production capacity at Perambra stands at 250

tones a day.



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Kalamassery Plant

Capacity expansion of 20 Tones / day from 60 Tones / Day to 85 Tones

/ Day

with an additional investment of Rs. 16 crores.

Pune Plant

Apollo Tyres built a new plant at Ranjangaon at Pune in 1997 to

Manufacture tyre tubes

Limda Plant

The Limda plant came into operation in 1991 with a capacity of 70 tones a

day. Today the plant has a total capacity of 280 tones per day, including the

manufacture of radial tyres.

Certification Details or Achievements:

First tyre company in the country to get ISO-9001 Certification (Oct 94)

One of the few tyre manufacture with QS-9000 certification (March 2001)

Consistently rated as Excellent in quality audit by the collaboration M/S Continental

AG

Manufacturing facility and tyre testing lab certified by IN_METRO of Brazil.



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Self certified vendor to leading OEMs in the country.

Registered with QAVC (defense) DGS&D (Govt)

Approved by: DOT Department of transport USA

ECE European Economic Commission of Europe

SASOSaudi Arabian Standards Organization

BOARD OF DIRECTORS:

Onkar s Kanwar Chairman and MD

Neeraj Kanwar Chief Operating Officer and Whole Time Director

U S Oberoi Chief Projects and corporate affairs

P K Mohammed Chief of research and technology

S.Asoka Iyer Chief, Group Advisory Services

K.Prabhakar Chief, Projects

Tapan Mitra Chief, HR

Sauna Sarkar Chief Strategy and Business operations

Sathish Sharma Chief of Marketing

P N Wahal Company Secretary

Fraser and Ross Auditors



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Employee strength of the Company:

After the take over of Premier Tyres Ltd.ATL ceased former marketing decisions as well

as its sales deposit. Present employee strength of the company is as follows.

Management Staff 140

Staff 108

Work men 797

Contract Trainees 259

Total 1304

Management of Apollo Tyres Ltd:

The major tyre manufacture with the largest number of management professionals in

India have been on path of exercising a newer management thought and ideas to put in practice.

The companies dynamic management is always alert to take challenge in the environment.

Because of their efficient marketing dynamism and strategies, they could freely float in the

market despite of cyclical depression in the industry.

Manufacturing:

Tyre is high performance composite product. The raw material used for its manufacturing

are rubber, nylon, steel, tyre, cord fabric, carbon black and compound mix where rubber is mixed

with required additives. After so many process like fabric dipping, calendaring, squege

applications, lead preparations etc it assembles all the components into semi finished products

called green tyres. Tyres after press wiring are kept under high pressure to help shape retention

and to reduce growth in service.



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Human Resource:

The ATL is well equipped with personals having skills at all levels enough to meet

competitive challenges; training programmes are conducted by the management to cope up with

changing scenario. Company is providing all facilities for mental and physical vigor of the

employees. There are about 4550 employees working in Apollo Tyres Ltd.

Departments:

The unit consists of following departments operating under different heads.

1. Commercial Department

2. Engineering Department

3. Production Department

4. PPC, IE and Systems Department

5. Technical Department

6. Quality Department

7. HR and Administration Department

Human Resource and Administration Department:

HR Department of Apollo Tyres is headed by the Group Manger, HR management deals

with the working life of the workers from time of his or her entry into the organization to until he

or she leaves. It basically includes activities such as HR Planning, Job Analysis, Job Design,

Recruitment and Selection, Orientation and Placement, Training and Development, Performance



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Appraisal and Job Evaluation, Employee remuneration, Motivation, Welfare and Multifacts of

Industrial Relations.

The company mainly works in three shifts:

The first shift from 7am to 3pm

The second shift from 3pm to 11pm

The third shift from 11pm to 7am

The HR Department is mainly concerned with:

HR function

Health

Safety

Welfare

Personal functions

Security functions

Environmental function

Payroll

HR function:

1.Human Resource Planning:

HR Planning is directly linked to the long term business plans of the organization. The

HR planning exercise is conducted annually to Asses the manpower requirements of the

organization. At the beginning of each calendar year, Corporate HR interacts with each



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department in each unit to collect their worker requirements in conjunction with the annual

projected business plan.

The following factor forms the basis for the manpower exercise.

Product mix

Optimum equipment capacities

Existing manpower

Envisaged organizational structure

Comparison with actual Vs expected productivity

Keeping in mind these factors, each department is expected to make an estimation of the HR

requirement at each location, along with the profile of people needed and the sources from where

they can be obtained. After the form sanction has been given, Corporate HR incorporates the

manpower requirement into its annual recruitment schedule.

Job Specification:

Workers The minimum age must be 18 years and minimum qualification SSLC.

Executives-Technical-The non-technical should be a B.Tech graduate.

Non Technical-The non-Technical should be CA\MBA\ICWA.

Job Description:

Job Description is compiled for all levels and functions in the organization once in 2

years, through this process role, responsibilities are clearly defined, and the delegation of



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authority is laid down. The key areas of personnel are linked to the business plan of the

organization and its structure. The process aims to bring about transparent accountability at all

levels.

2. Recruitment and Selection:

The company follows the policy of internal recruitment. In case of recruitment of

workers, employees in various departments are given preference over the others. An interview is

conducted to know about the persons family background, education qualification etc.the next

step is medical check up, if the person is found medically fit, he will be appointed.

Initially a person is appointed as usual workers. He is required to fill the personnel data

form and other forms like ESI, PF etc an induction programme is conducted and the new

employee is briefed about the job, company welfare activities, safety and security measures etc

the appointment of various trade appendices are taken up for whom 50% of the stipend amount

payable is reimbursed. The appendices are selected after the interview and the duration of the

training is one year .For an employee taken up in the office after interview, one month induction

programmes is given during which he is introduced to various department in the company.

3.Training and Development:

Induction Training: New employees will be briefed about the company policies, rules

and regulations, work responsibilities etc within one week of their joining. The

responsibility of imparting the induction training is with the HR department. An

induction plan will be given to all employees and documentary evidence shall be

maintained in from within the HR department.



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On the Job Training: On the job training is given to the regular employee of the

company. The respective head of the department will identify the training needs every

year for individual employee or for a particular group of employees in their department

and it shall be communicated to the HR department. Documentary evidence shall be

maintained for management category personnel and for workers and staff.

4.Performance Appraisal System:

The form of performance appraisal system followed by the company is similar to the

principal of management by objectives (MBO). The appraisal system is a cyclic process that

repeats itself every financial year. All the permanent employees are eligible for this interview.

There are two types of employee development form:

First is for junior officers and above categories and the other is for the staff. The

employees development form consist of 4 sectors: organizational goals, critical

attributes like planning, judgement, decision making etc, assessment and counseling

needs, job rotation and performance.

In each of the above category the employees performance is rated either as outstanding,

average, or below average. The rating is three fold that is by employee himself, by an appraiser

and by a reviewer, the highest weight age is given by rating for reviewer.

Performance appraisal system is done to:

Effect promotion based on competence and performance.

For improving the performance of existing managers.

To Asses the training and development needs of the employees.



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To enhance the future performance of the organization.

5.Promotion:

In context of Apollo Tyres ltd, promotion is mainly given on the basis of seniority of the

staff and education qualification, also at the official staff level, individual performance is also

accounted for at the time of promotion.

6.Salary Administration:

Salary administration is an important function of the HR department. The salary structure

of an employee is laid down in his appointment letter which is the most crucial document

covering all terms of his appointment in the organization.

The day an employee joins into an organization, the HR department completes a Payroll

Data Sheet for him along with the joining formalities. This data sheet serves as advice to the

accounts department regarding some basic details of the new incumbents including his date of

joining.

At the end of every month, the concerned department sends a consolidated statement

salary advance giving details of new appointments, transfer etc to the accounts department on

the basis of which salary is disbursed.

Welfare:

Apollo Tyres ltd practices much useful labour welfare schemes for the benefits of its

employees, the main welfare measures includes:



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Welfare Fund

Canteen Facility

Transportation Facility

Insurance Scheme: which includes

a) Apollo Tyres Employees Medical Benefit Scheme

b) Mediclaim

c) Group Personnel Accident Policy

d) Group Savings Linked Insurance Scheme

e) First Aid Centers.



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1.3 PRODUCT PROFILE:

PRODUCT RANGE:

Apollo tyres established itself as a manufacturer of tyres of the highest quality in India;

the company has always concentrated on high performance passanger, truck and tractor tyres.

Today it supplies to niche markets of all types of tyres for trucks, tractors, buses, light

commercial vehicles and passenger car.

DOMESTIC PRODUCT RANGE:

1) TRUCK TYRES:

a) Hercules loadstar

b) Haubeg

c) Load star super

d) Mile star

e) Ham safer XC plus

f) XT-7, XT-9

g) Flash

h) Amar

i) Amar Premium

j) Amar Express



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2) PASSENGER CAR TYRES:

a) Amazer Steel

b) Storm

c) Armour

d) Gripper

e) Celebrity

f) Panther

g) Hunter

h) Radial Tyre

3) LCV TYRES:

a) Load Star

b) Lancer

4) TWO WHEELER TYRES:

a) Black Cat

b) Ace

5) ANIMAL DRIVEN VEHICLE:

a) Bhim

b) ADV



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c) ADV plus

6) TRACTOR TYRES:

a) Krishak E

b) Krishak

c) Power Haul

d) Sarpanch TF

e) Krisan TF

7) TRACTOR TRAILER TYRES:

a) Rider TT

b) Super AmarTT

c) Truck Plus TT

d) Dhruv tt

e) Haul Track TT



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1.4 OPERATIONAL CONCEPTS

REVIEW OF LITERATURE

The history of performance appraisal is quite brief. Its roots in the early 20th Century can

be traced to Taylors pioneering Time & Motion Studies. But this is not very helpful, for the

same may be said about almost everything in the field of modern human resource management.

As a distinct and formal management procedure used in the evaluation of work

performance, appraisal really dates from the time of the Second World War- not more than 60

years ago.

According to Dulewicz (1989), Performance appraisal. A basic human tendency to make

judgments about those one is working with, as well as about oneself. The human inclination to

judge can create serious motivational, ethical and legal problems in the work place. Without a

structured appraisal system, there is little chance of ensuring that the judgments made will be

lawful, fair, defensible and accurate.

Performance appraisal system s began as simple methods of income justification. That is,

appraisal was used to decide whether the salary or wage of an individual employee was justified.

The process was firmly linked to material outcomes. If an employees performance was found to

be less than ideal, a cut in pay would follow. On the other hand, if their performance was better

than the supervisor expected, a pay rise was in order. Sometimes this basic system succeeded in

getting the results that were intended; but more often, they did not.

For example, early motivational researches were aware that difference people with

roughly equal work abilities could be paid the same amount of money and yet have quite

difference levels of motivation and performance. These observations were confirmed in



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empirical studies. Pay rates were important, but they were not the only element that had an

impact of employee performance. It was found that other issues, such as morale and self-

esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In

the 1950, the potential usefulness of appraisal as tool for motivation and development was

gradually recognized. The general model of performance appraisal, as it is known today, began

from that time.

Modern Appraisal: -

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervisor that unusually takes the form of a periodic interview (annual or semi-

annual), in which the work performance of the subordinate is examined and discussed, with a

view to identifying weaknesses and strengths as well as opportunities for improvement and skills

development.

In many organizations, appraisal results are used, either directly or indirectly, to help

determine reward outcomes. That is, the appraisal results are used to identify the better

performing employees who should get the majority of available merit pay increases, bonuses and

promotions. In the same way, appraisal results are used to identify the poorer performances that

may require some form of counseling or in extreme cases, demotion, dismissal or decreases in

pay.



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Controversy:-

Few issues in management stir up more controversy in performances appraisal system.

There are many reputable sources - researches, management commentators, who have

expressed doubts about the validity and reliability of the performance appraisal process. Some

have even suggested that the process is so inherently flamed that it may be impossible to perfect

it.

At the other extreme, there are many strong advocate of performance appraisal; there are

many different opinions on how and when to apply it. Those who believe that performance

appraisal has many important employee development users such as help in determining pay rise

and promotions.

This groups believes that the linkage to reward outcomes reduces or eliminates the

developmental value f appraisals. Rather than an opportunity for constructive review and

encouragement, the reward linked process is perceived as judgemental, punitive and harrowing.

For example, how many people would gladly admit there work problems if, at the same

time, they knew that their next pay rise or a much-wanted promotion was riding on an appraisal

result? Very likely, in that situation, many people would deny or downplay their weaknesses.

Nor is the desire to distort or deny the truth confined to the person being appraised. Many

appraisers feel uncomfortable with the combined role of judge and executioner.

Such reluctance is not difficult to understand. Appraisers often know their employees

well, and are typically in a direct subordinate-supervisor relationship. They work together on a

daily basis and may, at times, mix socially. Suggesting that a subordinate needs to brush up on



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certain work skills is one thing; giving an appraisal result that has the direct effect of negotiating

a performance is another.

The result can be resentment, serious morale, damage, leading to workplace disruption,

soured relationships, and productivity declines.

On the other hand, there is a strong rival argument, which claims that performance

appraisal must unequivocally be linked to reward outcomes.

The advocate of this approach say that organization must have a process by which

rewards-which are not an unlimited resources-may be openly and fairly distributed to those most

deserving on the basis of merit, effort and results.

There is a critical need for remunerative justice in organization. Performance appraisal

whatever its practical flows are the only process available to achieve fair, decent and consistent

reward outcomes.

It has also been claimed that employees themselves are inclined to believe that appraisal

results should be linked directly to reward outcomes-and are suspicious and disappointed when

told this not the case. Rather than feeling, relieved employees may suspect that they are not being

told the whole truth, or that the appraisal process is a shame and waste of time.

The link to rewards:

Recent research has reported that employee seems to have great acceptance of the

appraisal process and feel more satisfied with it, when the process is directly linked to rewards.

Such findings are a serious challenge to those who feel that appraisal results and reward

outcomes must be strictly isolated from each other.



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There is also a group who argues that the evaluation of employees for reward purposes,

and frank communication with them about their performance, are part of the basic

responsibilities of management. The practice of not discussing reward issues while appraising

performance is, say critics, based on inconsistent and muddled ideas of motivation.

In many organizations, thus inconsistency is aggravated by the practice of having

separate wage and salary review, in which merit rises and bonuses are decided arbitrarily, and

often secretly, by supervisors and managers.

Performance Appraisal Defined:

Performance appraisal is a system of review and evaluation of an individual or teams job

performance. While the performance of team should also be evaluated, the focus of performance

appraisal in most of firms remains on the individual employee.

Conducting performance appraisal is often a frustrating human resource management

task. One management guru, Edward Lawler, noted the considerable documentation during that

performance appraisal system do not motivate individuals nor effectively guide there

development, instead they create conflict between supervisors and subordinates and leads to

disfunctional behavior.

However considering the multiple needs for appraisal data, most organization is lead to

one conclusion although the appraisal process is difficult to device and administer, there is a

genuine organizational and employee need to conduct such evaluation for the reason sited,

developing an effective performance appraisal system has been and will continue to be high

priority of human resource management. Performance management is a process that significantly

affect organizational success by having managers and employees work together to set

expectation, review results and reward performance.



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According to Cummins, the objective of performance appraisal is to improve the

efficiency of an enterprise attempting to mobilize the best possible results from the individuals

employed in it. Such appraisals achieve four objectives including the salary review; training and

development of individuals, planning job rotation and assist in promotion.

Basic purpose of performance appraisal system:

Performance appraisal system may assume many different styles and types. Effective

appraisal system contains two basic systems operating in conjunctions; an evaluation system and

a feed back system.

The main aim of evaluation system is to identify the performance gap if any. This gap is

the short fall that occurs when performance does not meet the standard set by the organization as

acceptable. The main aim of feed back system is to inform the employee but the quality of his or

her work performance.

Employees View Point:

From employee viewpoint, the purpose of performance appraisal is 4 fold;

Tell me what you want me to do

Tell me how well I have done.

Help me to improve my performance

Reward me for doing well.

Organizational view Point:

From organizational viewpoint, one of the most important reasons for having a system of

performance appraisal is to establish and uphold the principal of accountability. For decades, it



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has been known to researchers that one of the main causes of organizational failure is

nonalignment of responsibility and accountability. Non alignment occurs where employees are

given responsibilities and duties, but are not held accountable for the way in which there duties,

but are not held accountable for the way in which these duties are performed. What typically

happens is that several individuals or work unit appear to have overlapping roles. Mc Gregor

says, formal performance appraisal plans are designed to meet three needs, one is the

organization and other two is the individual namely.

They provide systematic judgments to back up salary increases, transfer, demotions or

terminations. They are made of telling a subordinate how he s doing and suggesting needed

changes in his behaviour, attitude, skills etc.

Benefits of Performance Appraisal:

Perhaps the most significant benefits of appraisal is that it offers a rare chance for a

superior and subordinate to have time out for one-on-one discussion of important work issues

that might not otherwise be addressed. Almost universally, where Performance appraisal is

conducted properly, both supervisors and subordinates have reported the experience as beneficial

and positive. Appraisal offers a valuable opportunity to focus on work activities and goals, to

identify and correct existing problems and to encourage better future performance of the whole

organization is enhanced. For many employees, an official appraisal interview may be the only

time they get to have exclusive uninterrupted access to the supervisors. The value of this intense

and purposeful interaction between the supervisors and subordinates should not be

underestimated, it is been said that appraisal cant serve the needs of evaluation and development

at the sametime, it must be one or the other.



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Criteria for appraisal system:

The most common sets of appraisals system are traits, behaviour and task outcomes.

TRAITS:

Many employees in the organization are evaluation the basis of certain traits such as

attitude, appearance, initiative and so on. However many of the traits commonly used are

subjective and may be either unrelated to job performance or virtually impossible to define. In

such cases, the results may be inaccurate evaluation and legal problems as well.

BEHAVIOUR:

When an individuals task outcome is difficult to determine, a common procedure is to

evaluate the persons task related behaviour; for example, an appropriate behavior to evaluate a

manager may be leadership style.

TASK OUTCOMES:

If ends are considered more important that means task outcomes becomes the most

appropriate factor to evaluate. This approach is encouraged when a goal-oriented process is used;

a problem exists here if the results are not within the control of individual or team. Another

problem might be firms failure to recognize the difference between productivity and quality of

output. Overemphazing productivity may result in such a frenzied work place that mistakes are

paved on to the customers. Total focus on quality may generate fantastic products but also

batched delivery date .The obvious answer is to balance the requirement for speed with the need

to do the job right.



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PERFORMANCE APPRAISAL PROBLEMS:

The need to perform the multiple features in the appraisal process makes the appraisal

interview difficult and even threatening for many managers. In addition, there are several

behavioral problems inherent in the process. It can be confrontational because each party is

trying to convince each other that his or her view is more accurate. It is typically as a managers

role calls critical perspective while the employees desire to save their face easily leads to

defensivness. It is judgmental because the mangers must evaluate the employees behavior and

results and this aspect places the employee in a clearly subordinate position. Further performance

appraisal is a complex task for managers requiring job understanding, carefull observation of

performance and sensitivity to the needs of the employees. Managers are also called upon to

handle the issues that arise spontaneously within the discussion itself.

Managers sometime fail to conduct appraisal interviews because they lack vital skills.

Perhaps they fail to gather data systematically or they were not specific on the expected

performance improvements in the previous appraisal. They could be reluctant to address difficult

topics or they could fail to involve the employees in the assessment process and discussion. A

few may see appraisal as a meaning less game and even intentionally distort the ratings and feed

back given. All these factors can make powerful limits on the usefulness of the appraisal

interview unless it is conducted properly or modified through the use of other inputs

MANAGEMENT BY OBJECTIVES:

MBO refers to a process for managing performance review as only one part. MBO is bit

different from performance management, the MBO system focuses on whether the employees

have hit the target, where the target is outlined in objectives and performance standards



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description of desired job performance. Management by objective is a cyclical process that often

consists of four steps as a way to attain desired performance:

Objective Setting:

Joint determination between manager and employee of appropriate levels, of future

performance of the employees, within the context of overall unit goals and resources. The

objectives are often set to the next calendar year.

Action planning:

Participate or even independent planning by employees as to how to reach the objectives.

Providing some autonomy to employees is invaluable, they are more likely to feel more

committed to the plan success.

Provide Reviews:

Joint assessment of progress towards objectives by managers and employee, performed

informally and sometimes spontaneously.

Annual Evaluation:

More formal assessment of success in achieving the employees annual objectives,

coupled with a renewal of the planning cycle. Some MBO systems also use performance

appraisal to reward for employees to the level of results attained.

Strengths:

Standard based MBO have a number of advantages. Firstly, it encourages face-to-face

communication between the manger and the employee. The system is flexible as employees have

different standards of performance even if their job description are similar. The system is



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particularly useful and relatively easy to apply to job tasks that can be measured relatively easily

and objectively.

Performance Appraisal Feed Back Programme:

All appraisal systems are built on the assumption that employees need feedback about

their performance. Feedback helps them to know what to do and how well they are meeting their

goals.

Giving feedback is a challenging task for managers, however feedback is more likely to

be acceptable and cause some improvement when it is properly presented. In general it should

focus on specific job behaviour, rely on objective data rather than on subjective opinions and

inferences. Overall, it has a greater chance for including a behavioral change if it is genuinely

desired by the employee and is connected to job tasks and if the receiver is allowed to choose a

new behavior from alternative recommendations offered.

Guidelines for effective performance feedback:


Be specificMake it well timed

Check for understanding

Allow choice

Relate to job

State it objectively


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Performance Appraisal in Apollo Tyres

Objectives:

Evaluation of Executives to meet the objectives of the organization and the needs of the

Individuals.

Providing for reliable, valid and objective assessment of the employees performance.

To bring a culture openness trust and business orientation.

Critical attributes:

Planning, Analyzing, and organizing skills

Job output and achievement orientation

Leadership skill

Initiative and creativity

Drive and commitment

Communication Ability

Time Management

Interpersonal skills and team relation

Delegation and development of subordinates



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Performance Appraisal Method:

Performance apprised methods would differ from organization to organization. However

there will be one linking factor that is, there will be a pre-printed format contents, design,

practices will change depending upon factors like whether the employee is an operator,

supervisor, officer, Manager or executive. No company will use and stick to one method.

Combinations of methods Will be better and admissible. Designing a format will be every

skillful activity. It is difficult to Clarify the methods, however it is easy to indicate the type. The

various performance methods

Used in the present days are:

1. Ranking method.

2. Rating scale method.

3. Checklist method.

4. 360 degree feedback

5. Forced choice method

6. Critical Incident technique.

7. Confidential Report

8. Assessment Centers.

9. Role play method

10. Training Instrument method

11. Personal Interview / Discussion method



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Ranking Method:-

The ranking system is designed to evaluate on employee by comparing him or her with

all of the other employees in similar positions within a Co. the result is some indication of where

the employee lies, in percentage term, relative to his or her peers. Depending in the form an

employee could be ranked first in the Co. The comparison may also be done on the basis of an

observable quantifiable no:, such as sales per quarter or new clients signed up etc although

ranking could be somewhat justified with simple things like sales numbers, there are a lot of

problem associated with the process.

Ranking system is only as good as the validity of the criteria used to compare the

employees. For example tallying up the ratings & then ranking employees based on the sum of

their ratings is mathematically unjustified & unfair. Ranking systems not only might not

help you to achieve your objectives, but also can create unhealthy competition among the

employees. A ranking system does not provide enough information about employee performance

to help employees to identify what they have to do to improve, a numeric ranking only tells an

employee where he or she stands in relation to other employees, it provides no information

about getting letter. In almost all situations ranking employees is a poor idea, however if it can

work anywhere, it is most likely to be where the following conditions exist.

There are objective and measurable criteria on which to base rankings (eg. Money

earned, customers recruited etc.)

Nothing else is expected of the employees other than perform according to specific

criteria. There is no desire to have employees other than perform according to specific criteria.

There is no desire to have employees work together and help each other. A cutthroat

environment is desired inside the company.



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Rating scale Method

One of the most common methods of recording or documenting performance is the rating

system. A rating form commonly includes statement describing the following:-

Job performance

Attitude

Abilities

Skills

Behavior

Knowledge

For each statement, the manager is expected to rate the employee on a scale. The scales

may have verbal descriptions such as excellent, average and needs improvement. Some use

both numbers and verbal descriptors for each point on the scale. The quality and usefulness of

the forms depend on the skills of the form designer in writing the performance items so that they

are specific and clear enough to meet the purpose.

The main disadvantage of rating scale method is that even when the form is used

intelligently it does help in proper evaluation or review of performance. Once emphasis on

poorly designed forms damages the relationship between the managers and the employees. When

numeric scales are used, there is an illusion of objectively because numbers are associated with

data. There is a tendency to add up ratings on a form to give an overall performance number, but

that resulting number is absolutely meaningless and useless.



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Checklist Method:

Another type of individual evaluate on technique is the Checklist method. In its simplest

form, the checklist is a set of objective or descriptive statements. If the rather believes that the

employee posses a trial listed, the rater checks the items: if not the rater leaves it blank. A rating

score from the checklist equals the number of checks.

A variation of checklist is the weighted checklist. Supervisors familiar with the jobs to be

evaluated prepare a long list of descriptive statements about effective and ineffective behavior on

jobs; this process is similar to the Critical Incident Process. Judges who have observed behavior

on the job sort the statements into piles describing behavior that is scaled from excellent to poor.

When there is a reasonable agreement on an item, it is included in the weighted checklist. The

weight is the average score of the raters prior to use of the checklist.

360-Degree Appraisal

The 360-degree feedback method for documenting and reviewing performance is the

newer technique. In the 1990 s it emerged as a method for reviewing and improving the

performance of managers, it has been extended and used with employees at all levels. The 360-

degree feedback process involves collecting information about performance from multiple

sources or multiple raters.

The main benefits of 360-degree feedback are:

It assists staff members to identify expectations, strengths and weakness of their

performance.

It provides information to the staff members about how they are perceived and judged by

significant others within the work environment.



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Evidence is collected from more than usual, singular source of ones supervisor.

The collation and presentation of evidence is objective.

It gives the staff members a chance to comment on themselves.

Critical Incident Technique:

The critical incident method of reviewing or documenting performance involves

recording instances of important events where the employee has performed less effectively. Both

employee behavior can be included in the incidents .The recording of critical incidents is

normally done in a narrative form, but it tend to be more focused since its driven by observations

of specific events and not general impressions, as is usually the case with the straight narrative.

The critical incident method is most appropriate and effective when the managers directly

observes and supervise the employees regularly, so he or she can monitor important events. It is

less a way to record performance on a yearly basis and much better suited to a situation where

manager and employee are looking into performance at a regular basis. When we compare the

pure narrative with the critical incident method is that it involves recording specific observable

situations, while narratives tend to be more general. The more specific information is available to

the employees, the more likely the employees will be able to use that information to improve

their performance.

The private sector undertaking like Apollo Tyres have either formal performance

appraisal systems or merit rating programes. Generally, there is provision for annual or semi

annual formal appraisal of all employees. Annual appraisal can help the supervisor to evaluate

his subordinates effectively and fix areas where a further action is needed to make the

subordinate both work effectively. The efficiency bar provides an opportunity to the employer to



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assess the efficiency of the employee more carefully. Whenever employee reaches the efficiency

bar, if his performance is not satisfactory and is allowed to cross the bar if he improves his

performance effectively.

OPERATIONAL DEFINITION OF THE CONCEPT:

Human resource Management: means employing people, developing their resources, utilizing,

maintaining, and compensating their services in tune with the job and organizational

requirements with a view to contribute to the goals of the organization, individual and the

society. This is dealt in Human Resource Department.

Performance appraisal: is a method of evaluating the behavior of employees in the workspot,

normally included both the quantitative and qualitative aspects of job performance.

Strategy: is a unified course of action to achieve the goal. It is a comprehensive and integrated

plan designed to ensure that the basic objectives of the enterprise are achieved.

Recruitment: is a process to discover the sources of manpower to meet the requirement of the

staffing schedule and to employ effective measures for attracting that manpower in adequate

numbers to facilitate effective selection of an efficient workforce. It is the process of searching

for prospective employees and stimulating them to apply for jobs in the organization.

Selection: is a system of functions and devices adopted in a given company to ascertain whether

the candidates specification are matched with the job specification and requirements or not.

Placement: is the determination of the job to which an accepted candidate is to be assigned and

his assignment to that job.

Induction: is the process of receiving and welcoming an employee for doing a particular job.

People learn knowledge and/or skill for a definite purpose by the organized procedure.



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Training: is a act of increasing the knowledge and skills of an employee for doing a particular

job. People learn knowledge and / or skill for a definite purpose by the organized procedure.

Motivation: is the inner state that energizes, activates or moves and directs or channels behavior

towards goal.



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2.1 MCKINSEYS 7-S MODEL

What is 7-s MODEL?

The 7-s model is a tool for managerial analysis an action that provides a structure with

which to consider a company as a whole, so that the organization problem may be diagnosed and

a strategy may be developed and implemented. The seven-s is a frame work for analyzing

organization and there effectivness.it looks at the seven key elements that make the organization

successful, or not:

STRATEGY

STRUCTURE

STYLE

SKILLS

STAFF

SHARED VALUES

SYSTEMS



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7-S MODEL STRUCTURE-A systematic approach to improving

organization.



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The 7-s diagram illustrates the multiplicity interconnection of elements that defines as

organization ability to change. The theory helped to change the managers thinking about how

companies could be improved. It says that it is not just of devising a new strategy and following

it through. Nor is it a matter of setting up new systems and letting them to generate

improvements. To be effective, your organization must have a high degree of fit, or internal

alignment among all 7-s. Each S must be consistent with and reinforce the other Ss. All Ss are

interrelated, so a change in one has a ripple effect on all others. It is impossible to make a

progress on one without a making progress on all. Thus to improve your organization you have

to pay attention to all of the seven elements at the same time. There is no starting point or

implied hierarchy-different factors may drive the business in any one organization.

Shared Values (missions, goals)

Style (culture, leadership)

Strategy (corporate, business, product\market)

Structure (virtual organization)

Staff (empowerment)

Skills (competencies)

Systems (processes)

STRUCTURE:

Structure describes the hierarchy of authority and accountability in an organization. It

represents the reporting system of the organization. These relationships are frequently diagramed

in organizational charts. Thus, organizational structure is a pattern of relationships among



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various activities and positions. Most organization use some mix of structures like pyramidal,

matrix, or networked ones-to accomplishes their goals. A structure is the formalizing of the

relationship, roles and responsibilities in order to organize and perform work. From the structure

of the organization, we can have the clear picture of the responsibility of the personnel working

in the organization. It refers the differentiation and integration of activities and authority, role

and relationships in the organization.

In simple terms, structure is the pattern in which various parts or components are

interrelated or inter-connected, so organizational structure is the pattern of relationship among

various activities and positions. Hence, organizational structure is the basic framework within

which the managers decisions making behavior takes place.

Various Department Functions of Apollo Tyres:

Commercial Department

Engineering Department

Production Department

PPC, IE and Systems Department

Technical Department

Quality Assurance Department

HR and Administration Department



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OVERALL ORGANISATION CHART OF APOLLO TYRES LTD.

CHAIRMAN

VICE CHAIRMAN AND MD


CHIEF MFG PROJECTCHIEF MARKETING

HEAD KERALA HEAD BARODA HEAD PUNA

APOLLO TYRES LTDPERAMBRA

APOLLO TYRES LTDKALAMASSERY


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ORGANISATION CHART OF HR


ORGANISATION CHART OF APOLLO TYRES

HEAD KERALA FACTORIES

CO-ORDINATOR KALAMASSERY PLANT

MANAGER, PPC, IESYSTEM

HEAD HRADMINISTRATION

MANAGER,

ENGINEERING

MANAGER,

HEADPRODUC

T

HEADCOMM

DY.MANAGE

R

HEAD HR

OFFICER HR

DY.MANAGER IR

SR OFFICERMEDICAL

SAFETY

OFFICER

SR OFFICERSECURITY

SR OFFICERPERSONNAL

PERSONNALOFFICER

JUNIOROFFICER

WELFARE

JR. OFFICERRECEPTION


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The functions assigned to the top-level officials in H R department are reorganized and re-

structured for administrative convenience are as follows: -

1) Group Manager H R:-

a) Controls the overall H R functions.

b) Carries out all the H R activities such as I R, time office, security, safety,

personnel,

welfare etc.,

2) Manager I R :-

a) Maintaining harmonies congenial industrial atmosphere

b) All matters concerning state, illegal, disciplinary actions, vigilance assignments.

c) All matters connected with industrial relations pertaining

To workmen under Industrial dispute Act.

3) Executive Time Office:-

a) Maintaining attendance records of workers, staffs and executives

b) Preparation of pay sheet.

c) Calculation of absenteeism and maintaining

Leave records.

4) Executive Security: -

a) Maintains the security of property, personnel and information.



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b) Looks into the arrival and departure of employees, their punching, Control of shift, allotment

of out pass and movement pass for workers, visitors pass etc.

c) Administration of Vigilance, fire fighting and estate.

5) Executive Safety:-

a) Insist work permit for welding and tank entry.

b) All pressure vessels, lifting machines and lifting tackles are tested by competent opinion.

c) LPG sensors are provided at strategic location near the LPG storage area with audio alarm.

d) Various types of first aid fire fighting equipments are kept with in the reach of employees.

e) Regular training in safety and related topics are being conducted.

6) Executive Personnel:-

a) All matters connected with recruitment, career promotion and transfer and

posting,

retirement and reservation guide lines concerning executives staff and workmen.

b) Design and implementation of H R policies.

c) All matters connected with annual performance assessment reports of all

employees.

STRATEGY:

Strategy is a plan of an organization formulates to gain a sustainable advantage over the

competitions. Strategy is the art of devising and employing a system of activities that mobilizes

all resources toward a valuable goal. Strategy is the determination of basic long-term goals and

objectives of an enterprise and the adoption of course of action and the allocation of resources



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necessary for carrying out these goals. In other words the route that the organization has chosen

for its future growth; a plan an organization formulates to gain a competitive advantage.

The main strategy of Apollo tyres is at a sustainable advantage over competition through

best service at reasonable price. It is also trying to improve its position in the minds of the

customers by attending complaints and solving their problem by compensating if the fault is

found to be from the company side.

SYSTEMS:

Systems refer to the process used to manage the organization. Systems include

Management Information System

Innovative System

Performance Management System

Financial system

Compensation System/Reward System

Customer satisfaction monitoring system

A system is defined as a process, or set of processes that links and orders activity to

enable work to be done and goals to be achieved. Systems in simple words are the formal and

informal procedures, including compensation systems, management information system and

capital allocation system that govern everyday activity.

Apollo Tyres uses complete systemized processes in all fields like quality of service,

performance measurements systems etc. The data pertained to various departments is kept in

accordance with the standards set by Apollo Tyres.The company maintains a complete database



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of day to day operations and the data is stored in the system as a black up file for the future

reference. The union is planning to develop full-fledged software for handling data base system.

STAFFING:

Staffing may be defined as filling, and keeping filled the positions in the organization

structures. This is done by identifying workforce requirements, inventorying people available

and recruiting, selecting, placing, promoting, appraising, planning the carriers of compensating

and training or otherwise developing both candidates and current job holders so that task are

accomplished effectively and efficiently

Apollo Tyres requires the services of a large number of personnels. These personnel

occupy various positions created through the process of organizing. These personnel comprise of

the staff of the organization. Each position of the organization makes certain specific

contribution to achieve organizational objectives. Hence, the person occupying the position

should have sufficient ability to meet its requirements. Hence staffing is necessary to match job

and the individuals.

Different departments carry out different functions and each personnel is assigned with

different responsibility. The people in the organization are very dedicated and work towards the

improvement of the organization.

SKILLS:



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A Skill is the ability; knowledge, understanding and judgment to accomplish a task.

Skills may be defined as what the company does best; the distinctive capabilities and

competencies that resides in the organization.

STYLE:

Style of leadership or relationship refers to the manner in which an individual uses his or

her talents, values, knowledge, judgment and attitudes to lead and relate to others. Style is the

leadership approach, also the way in which the organization employees present themselves to the

outside world, to suppliers and customers. In simple words, style is the pattern of behavior,

which a leader adopts in influencing the behavior of his followers in the organizational context.

One element of managers is how they choose to spend time, another aspect is symbolic

behavior. This suggests a second attribute that is by no means confused to those at top. The style

is a reflection of culture more than to change the organization or performance. The management

of Apollo Tyres is completely employee oriented and they strongly believe in the We concept.

The union receives continuous feedback from the workers and decides on the change in

strategies .The management has a democratic style of functioning.



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2.2 SWOT ANALYSIS

STRENGTHS:

- Industry leader in the bus and tyre segment

- Superior product quality

- Strong brand equity

- Best talent bank in the industry

- Dedicated employees with adequate experience

- Superior understanding of market

- Largest distribution network in the country

- Quick response to meet the market needs through an efficient R&D department.

- Healthy financials.

WEAKNESS:

- Low share in passenger car segment

- Insignificance presences in the global market



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OPPORTUNITIES:

- Estimated 12% growth in annual demand

- Opportunities for low cost capacity enhancement

- Through take over and merges

THREATS:

- External-Introduction of truck radials in the market, cheap imports from China and

South East Asian Countries.

- Internal Rising cost of inputs

- Increased re-trading by bus operators.



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DESIGN OF THE STUDY

3.1 NEED FOR THE STUDY

The study has helped me and my company in various ways. It helped me in understanding the

working of various departments in the organization. It has instilled skills used to collect, analyse,

and interpret data. The firm has helped me to find the employees perception towards the

organization and organizations effective ways of performance appraisal done in the

organization.

3.2 STATEMENT OF THE PROBLEM:

It involves the study of the existing performance appraisal at APOLLO TYRES LTD.It

also involves the effectiveness of the performance appraisal at APOLLO TYRES LTD.This

will help in the betterment and improvement of the appraisal process and will deliver various

ways for different appraisal methods and process.

3.3 OBJECTIVE OF THE SYUDY:

The objective of the study conducted at Apollo Tyres Ltd, Kalamassery is to

evaluate. The effectiveness of performance appraisal system.

To find out if there are any drawbacks in the present system of performance

appraisal.

To give suitable suggestions to improve the existing system of performance

appraisal methods in the light of findings.



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3.4 METHODOLOGY OF THE RESEARCH:

A research design is the specification of methods and procedures for acquiring the

information needs to structure or to solve the problems, the type of research used was

Descriptive type.

SOURCES OF DATA-PRIMARY AND SECONDARY

PRIMARY DATA:

In order to collect data for the survey, structured questionnaires were assigned to the employees.

A close-ended questions were administered to the employees. The questionnaires were given to

the employees in various departments and assisted them to answer it.

SECONADRY DATA:

Secondary data was collected from various books and journals and from other documents

from the company.

SAMPLE DESIGN:

Sampling technique: simple random sampling technique has been used. Samples were taken

from all the departments.

Sample size: the sample size was taken to be 50 in total.

Softwares used: MS-excel and MS word has only been used for the purpose of

analyzing the data.



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3.5 SCOPE OF THE STUDY:

The Study was carried with the aim to study the effectiveness of performance appraisal in

APOLLO TYRES LTD. The study was limited to the APOLLO TYRES LTD. Staff and

executives.

3.6 LIMITATIONS:

a. The findings of the study are based on the assumptions that respondents have given true

opinion.

b. Given time frame, which would have been a very small period to make a good

conclusion.

c. The study was restricted only to a few executives, managers, staff and workers in the

organization and there need not be the opinion of majority



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1. Educational qualification of employees in Apollo tyres:

TABLE NO: 4 .1-Educational Qualifications of Employees.

QUALIFICATION NO.OF RESPONSES PERCENTAGE

SSLC 20 40

PDC 5 10

DIPLOMA 10 20

PG 15 30

TOTAL 50 100

CHART NO: 4.1-

0

10

20

30

40

50

SSLC

PDC

DIPLO

MA

PG

QUALIFICATION

PERCENTAGEO

EMPLOYEES

Series1

INTERPRETATION:

From the survey conducted, 40% of the employees have SSLC as there qualification, 10% of

the employees have PDC as their qualification, 20% of them are Diploma holders and the rest

30% are Post Graduates



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2. Work experience of the workers:

TABLE NO: 4.2-Work experience of workers

NO.OF YERAS NO.OF RESPONSES PERCENTAGEAbove 20 years 17 70

15-20 years 5 20

10-15 years 2 8

5-10 years 1 2

TOTAL 25 100

CHART NO: 4.2-

above20year

15-20years

10-15years

5-10years

INTERPRETATION:

From the survey conducted it was found that almost 70% of the employees have an

experience of over 20 years, and most of these employees are in the production department, over

20%of the employees have an experience of 15-20years, nearly 8%of the employees have an

experience of 10-15years and only 2%fall under the category of having experience of 5-10 years.



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Work experience of the executives:

TABLE NO: 4 .3 Work experience of Executives

NO.OF YERAS NO.OF RESPONSES PERCENTAGEAbove 20 years 14 55

15-20 years 5 20

10-15 years 4 16

5-10 years 2 9

TOTAL 25 100

CHART NO: 4.3-

above20year

15-20years

10-15years

5-10years

INTERPRETATION:

Out of the total executives surveyed 55%have an experience of over 20years, 20%of the

executives have an experience of 15-20years, 16%fall in the category of having experience of

10-15 years and 9%fall in the category of having experience of 5-10years.



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3) Designation structure of employees in Apollo Tyres:

TABLE NO: 4.4 Designation structure of employees

DESIGNATION NO.OF RESPONSES PERCENTAGEWorkmen 25 50

Staff 15 30

Supervisors 7 15

Executives 3 5

TOTAL 50 100

CHART NO: 4.4-

workmen

staff

supervisor

executives

INTERPRETATION:

Out of the total work force, 50% of the employees falls under the category of workers who are

mainly in the production department, 30% fall in the category of general staff, 15%are in the

supervisory post and 5%constitutes the top executive post.



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4) Do you agree that performance appraisal and performance in job are related?

TABLE NO: 4.5-to show whether the performance appraisal and performance in job

are related

RESPONSES NO.OF RESPONSES PERCENTAGE

Certain Extent 35 70

Great Extent 15 30

No impact nil nil

TOTAL 50 100

CHART NO: 4 .5-

ce r ta i n e x t

g re a t e x te n

no im pac t

According to the survey, it was found that nearly 70% of the employees agreed that performance

appraisal and performance in job are related, this shows that the employee feel performance

appraisal system can help in evaluating their performance and improve it.



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5).Has the performance appraisal helped in improving your performance in the job?

TABLE NO: 4.6-to know whether performance appraisal helped in improving the

performance of job


ConsiderableImprovement

10 40

Slight Improvement 12 50

Not useful 3 10

TOTAL 25 100

Chart no: 4.6-

0

10

20

30

40

50

60

C

ONSIDERABLE

IMPROVEMENT

SLIGHT

I

MPROVEMENT

NOTUSEFUL

PERCENTAGEOFEMPLOYEE

Series1

INTERPRETATION:

According to the survey conducted among the workers of Apollo Tyres,40%of the workers agree

that the appraisal system has helped them in improving their performance in the job to a great

extent,50%of the employees that the appraisal system has had advantage in improving their

performance only to a small extentand 10% of the workers are of the opinion that the appraisal

system has not helped them in improving their performance in the job.



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TABLE NO: 4.7-to know whether performance appraisal helped in improving the

performance of job (EXECUTIVES):


ConsiderableImprovement

19 75

Slight Improvement 5 19

Neither improved nordeteriorated

1 6

TOTAL 25 100

CHART NO: 4.7-

0

10

20

30

40

50

6070

80

considerable

improvement

slight

improvement

n

eitheimproved

nor

deterioratedp

ercentageofexecu

tives

Series1

INTERPRETATION:

According to the survey done among the executives and staff in Apollo Tyres,75% of the

staff agree that Performance appraisal system has really helped them in improving their

performance only to a certain extent and 6% of the employees are of the opinion that the

appraisal system has not yielded any benefit to them.



67/87

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)


Strongly favor 16 66

Slightly Favor 6 22

Neither for noragainst

3 12

TOTAL 25 100

CHART NO: 4 .8-

0

10

20

30

40

50

60

70

strongly

favour

slightly

favour

neither

for nor

against

percentageofemployees

(workers)

Series1

INTERPRETATION:

According to the survey conducted among the workers of Apollo Tyres, almost 66% of

the workers agree and strongly support the performance appraisal system and feel it very

necessary, 22% of the workers slightly favor the appraisal system and 12% of the workers

doesnt feel the appraisal system and 12% of the workers doesnt feel the appraisal system is

necessary in the company



68/87

TABLE NO: 4. 9 -to show respondents perception about the performance appraisal system

(EXECUTIVES):


Strongly favor 20 80

Slightly Favor 4 15


1 5

TOTAL 25 100

CHART NO: 4.9-

01 02 03 04 05 06 07 08 09 0

s t r o n g l yf a v o u r

s l igh t lyfav o ur

n e i t h e r f o r n o r

a g a in s t

PERCENTAGEOF

EMPLO

YEES(EXECUTIVES)

S e r ie s

According to the survey it was found that almost 80% of the executives favored the

present appraisal system and felt that it was necessary 15% slightly support the system and

nearly 5% said the appraisal system was not necessary



69/87

7).Level of satisfaction with the present Appraisal system:

TABLE NO: 4.10-to show the level of satisfaction of the present appraisal system:

DESIGNATION NO.OF RESPONSES PERCENTAGEHighly Satisfied 3 6

Satisfied 34 68


9 18

Dissatisfied 4 8

TOTAL 50 100

CHART NO: 4.10-

0

10

20

30

40

50

60

70

80

H

IGHLY

SA

TISFIED

SA

TISFIED

NEITHER

FOR

NOR

AGAINST

DISSATISFIED

P

ERCENTAGE

OFEMPLOYE

Series1

INTERPRETATION:

From the survey it was found that only 6% of the workers were highly satisfied with the

present appraisal system, 68%of the workers said they were satisfied, 18% were neither for nor

against the system also 8% of the workers were dissatisfied with the present appraisal system



70/87

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 :


Low 39 78

Neither low nor high 11 22

High nil nil

TOTAL 50 100

CHART NO: 4.11-

low

neither low n

high

high

INTERPRETATION:

According to the survey conducted it was found that 78% of the workers had low

knowledge about the criteria used in the performance appraisal system and nearly 22% of the

workers did not have any clear idea about the principles used in the performance appraisal

system



71/87

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:


Satisfied 34 68

Neither satisfied nordissatisfied

15 30

Dissatisfied 1 2

TOTAL 50 100

CHART NO: 4.12-

01020304050607080

sat is fied neither

satisfied nor

dissatisfied

dissatisfiedpercentageofemployees

Series1

INTERPRETATION:

The survey conducted among the employees reflected that nearly 68% of the employees

were satisfied with the welfare activities provided by the company, almost 30% of the employees

were neither satisfied nor dissatisfied but they didnt have any complaints against the welfare

measures provided, only 2% of the employees were dissatisfied with the welfare activities

provided.



72/87

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:


Strongly agree 40 80

Agree 6 12

No comments 4 8

TOTAL 50 100

CHART NO: 4.13-

strongly agr

agree

no comment

INTERPRETATION:

According to the survey conducted it was found that nearly 80% of the employees were

strongly satisfied with the wages paid to them,12% of the workers revealed they were happy with

the pay but desired a rise in their salary and 8% of the workers were not ready to give their

opinion



73/87

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


Agree 49 98

No comments 1 2

Disagree nil nil

TOTAL 50 100

CHART NO: 4.14

0

20

40

60

80

100

120

AGRE

E

NOCOMMENT

S

DISA

GREE

PERCE

NTAGEOFEMPLOYE

Series1

INTERPRETATION:

According to the survey 98% of the employees agreed to the statement that their

supervisor follow ethical standards during the performance evaluation process.



74/87

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.


Agree 39 78

Neither agree nordisagree

5 10

Disagree 6 12

TOTAL 50 100

CHART NO: 4.15-


0102030

405060708090

AGREE

neither

agreenor

disagree

DISAGREE

PERCENTAGEOFEMPLOYEES

Series1


75/87

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.



76/87

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


Good 32 65

Satisfactory 15 30

Not satisfie

aruna project

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