Satisfaction of managerial employees on performance appraisal system in Apollo Tyres Limited, Kalamassery Project Report submitted in partial fulfillment for the award of degree of Master of Business Administration of Cochin University of Science and Technology by JOB THOMAS Reg. No. 85301011 under the guidance of Prof. Dr. Sebastian Rupet Mampilly
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Satisfaction of managerial employees on performance appraisal system in Apollo Tyres Limited, Kalamassery
Project Report
submitted in partial fulfillment for the award of degree ofMaster of Business Administration
ofCochin University of Science and Technology
by
JOB THOMASReg. No. 85301011
under the guidance of
Prof. Dr. Sebastian Rupet Mampilly
School of Management StudiesCochin University of Science and Technology
Cochin, Kerala, IndiaPIN 682 022
March 2013
DECLARATION
I, Job Thomas do hereby declare that this project report entitled “Satisfaction of
managerial employees on performance appraisal system in Apollo Tyres Limited,
Kalamassery” is a bonafied record of the work done by me under the guidance of Prof.
Dr. Sebastian Rupet Mampilly in partial fulfillment for the award of degree of Masters of
Business Administration of Cochin University of Science and Technology.
I also declare that this thesis report has not been submitted by me fully or partially for the
award of any degree, diploma or title or recognition before.
Place: Kochi-22Date: 14th April 2013
JOB THOMAS
ACKNOWLEDGEMENT
First and foremost, I thank the almighty God for bestowing me with good health and
confidence to complete the project on time.
I would like to express my hearty gratitude to Dr. M. Bhasi, Director, School of
Management Studies for introducing me to the organization Apollo Tyre Limited,
Kalamassery.
I whole heartedly record my sincere gratitude to my supervisor Prof. Dr. Sebastian Rupet
Mampilly of SMS for guiding me on the research aspects of the thesis.
I am extremely thankful to Dr. Rajitha Kumar, MBA (PT) Coordinator of SMS for
guiding me on practical sampling techniques of questionnaire survey method.
I express sincere thanks to Dr. Sam Thomas, MBA (PT) 2010-13 batch mentor of SMS
for guiding me on organizational certificate requirements of the thesis.
I record my gratitude to Mr. Shefin Salam, Executive of Human Resource Department,
Apollo Tyres Limited, Kalamassery for facilitating to carryout this research work in the
organization.
JOB THOMAS
Place: Kochi-22Date: 14th April 2013
CERTIFICATE
This is to certify that project report entitled “Satisfaction of managerial employees on
performance appraisal system in Apollo Tyres Limited, Kalamassery” is a bonafied
record of the work done by Mr. Job Thomas, sixth semester MBA (PT) student of this
school submitted in partial fulfillment of the requirement of award of degree of Mater of
Business Application of Cochin University of Science and Technology during April 2013.
Dr. Sebastian Rupet Mampilly Dr. M. BhasiProject guide Director
Chapter 2 Industry and company profile2.1. Industry structure and development 42.2. International scenario 52.3. Global competitors 62.4. Indian scenario 72.5. Competing Indian tyre companies 72.6. Highlights of Indian tyre industry 82.7. Apollo tyres limited 92.8. Corporate overview 92.9. Vision and values 102.10. Presence
Chapter 3 Theoretical frame work3.1. Introduction 153.2. Definition of Performance appraisal 153.3. History of Performance appraisal 163.4. Purposes of performance appraisal 173.5. Uses of performance appraisal 203.6. Approaches of Performance appraisal 203.7. Timing of appraisal 213.8. Objectives of performance appraisal 213.9. Process of performance appraisal 223.10. Performance Appraisal for different workgroups 243.11. Performance Appraisal Methods 263.12. Employee satisfaction 293.13. Definition of Employees satisfaction 303.14. Meaning of employee satisfaction 303.15. Historical development of measurement of Employee satisfaction 313.16. Sources of employee satisfaction 323.17. Performance appraisal at Apollo Tyre Limited, Kalamassery
343.18. Summary
36
Chapter 4 Research methodology4.1. Introduction 374.2. Need for study 374.3. Statement of the problem 374.4. Research objectives 374.5. Survey method 384.6. Sampling 384.7. Data collection 394.8. Method of data analysis 404.9. Organization of research report 414.10. Summary
42
Chapter 5 Data analysis and interpretations5.1. Introduction 435.2. Demographic details of the respondents 435.3. Frequency of response 465.4. Descriptive statistics 545.5. Performance appraisal – satisfaction index (PASI) 575.6. Testing of hypothesis 575.7. Influence of age of employee on
performance appraisal satisfaction 615.8. Influence of formal education on satisfaction of
performance appraisal 725.9. Influence of company experience on satisfaction of
Table 4.1. ANOVA computation 41Table 5.1. Gender statistics 43Table 5.2. Age statistics 44Table 5.3. Formal education statistics 45Table 5.4. Experience statistics 45Table 5.5. Frequency of response for statements 47Table 5.6. Statistics of score of response for statements in questionnaire 55Table 5.7. Statistical evaluation of the overall responses 58Table 5.8. Correlation coefficient matrix of factors influencing
employee satisfaction and performance appraisal 59Table 5.9. Results of ANOVA using Microsoft® excel program 60Table 5.10 Comparison of frequency of response of statements
by employees of different age groups 61Table 5.11. Descriptive statistical analysis of influence of age
on response of scores for statements in questionnaire 69Table 5.12. The correlation of mean of scores of statements
by different age groups 71Table 5.13. Results of ANOVA of mean scores of responses
of different age groups 72Table 5.14 Comparison of frequency of response of statements
by employees having different education 73Table 5.15. Descriptive statistical analysis of influence of formal education
on response of scores for statements in questionnaire 81Table 5.16. The correlation of mean of scores of statements
by different employees groups differ in formal education 84Table 5.17. Results of ANOVA of mean scores of responses
of employees groups differ in formal education 84Table 5.18 Comparison of frequency of response of statements
by employees differ in experience 85Table 5.19. Descriptive statistical analysis of influence of company
experience on response of scores for statements in questionnaire 93Table 5.20. The correlation of mean of scores of statements
by different employees groups differ in company experience 96Table 5.21. Results of ANOVA of mean scores of responses
of employees groups differ in company experience 97
List of Figures
Title Page number
Fig. 2.1. Rubber consumption in India 6Fig. 2.2. Ranking of Tyre companies based on revenue in global market 7Fig. 2.3. Ranking of tyre companies based on production in India 8Fig 2.4. Details showing the world-wide presence of Apollo 10Fig 3.1. Purposes of performance appraisal 16Fig 3.2 Performance appraisal process 21Fig 3.3 Factors influencing employee satisfaction 33Fig 5.1. Gender statistics of respondents 44Fig 5.2. Age statistics of the respondents 44Fig 5.3. Education statistics of the respondents 45Fig 5.4. The Apollo Tyres Ltd experience statistics of respondents 46Fig. 5.5. The frequency of response for statement no.1 48Fig. 5.6. The frequency of response for statement no.2 48Fig. 5.7. The frequency of response for statement no.3 49Fig. 5.8. The frequency of response for statement no.4 49Fig. 5.9. The frequency of response for statement no.5 50Fig 5.10. The frequency of response for statement no.6 51Fig 5.11. The frequency of response for statement no.7 51Fig 5.12. The frequency of response for statement no.8 52Fig 5.13. The frequency of response for statement no.9 53Fig 5.14. The frequency of response for statement no.10 53Fig 5.15. The range and mean of the scores of the statements 54Fig 5.16. PASI of respondents 57Fig 5.17. Influence of age on response of statement number 1 63Fig 5.18. Influence of age on response of statement number 2 64Fig 5.19. Influence of age on response of statement number 3 64Fig 5.20. Influence of age on response of statement number 4 65Fig 5.21. Influence of age on response of statement number 5 65Fig 5.22. Influence of age on response of statement number 6 66Fig 5.23. Influence of age on response of statement number 7 67Fig 5.24. Influence of age on response of statement number 8 67Fig 5.25. Influence of age on response of statement number 9 68Fig 5.26. Influence of age on response of statement number 10 68Fig 5.27. Influence of age of employees on the mean score of
responses for the statements 1 to 10 71Fig 5.28. Influence of formal education on response of statement number 1 75Fig 5.29. Influence of formal education on response of statement number 2 76Fig 5.30. Influence of formal education on response of statement number 3 76Fig 5.31. Influence of formal education on response of statement number 4 77Fig 5.32. Influence of formal education on response of statement number 5 77Fig 5.33. Influence of formal education on response of statement number 6 78Fig 5.34. Influence of formal education on response of statement number 7 79Fig 5.35. Influence of formal education on response of statement number 8 79Fig 5.36. Influence of formal education on response of statement number 9 80Fig 5.37. Influence of formal education on response of statement number 10 80
Fig 5.38. Influence of formal education of employees on the mean score of responses for the statements 1 to 10 83
Fig 5.39. Influence of company experience on response of statement number 1 87Fig 5.40. Influence of company experience on response of statement number 2 88Fig 5.41. Influence of company experience on response of statement number 3 89Fig 5.42. Influence of company experience on response of statement number 4 89Fig 5.43. Influence of company experience on response of statement number 5 90Fig 5.44. Influence of company experience on response of statement number 6 90Fig 5.45. Influence of company experience on response of statement number 7 91Fig 5.46. Influence of company experience on response of statement number 8 92Fig 5.47. Influence of company experience on response of statement number 9 92Fig 5.48. Influence of company experience on response of statement number 10 93Fig 5.49. Influence of company experience of employees on the mean score
of responses for the statements 1 to 10 96
EXECUTIVE SUMMARY
Performance appraisal is an essential management technique. The study aims to measure
the satisfaction of the managerial employees on the performance appraisal system in
Apollo Tyres Limited, Kalamassery. The questionnaire survey method is adopted for
evaluating the satisfaction of the employees. Apollo is a leading tyre factory having world
wide presence. In India, Apollo stands first based on revenue and second based on
production.
Performance appraisal is an important management tool to audit human capital. In many
organizations, appraisal results are used as a tool to fix the reward. The appraisal results
are used to identify better performing employees for placement to higher post in the
hierarchy of organizational structure. The satisfaction of employee towards the appraisal
system of the company depends on many factors such as communication, measurement
policies and post review policies. The total output of the organization depends on
satisfaction level of employees. The performance appraisal is an important tool to many
human resource functions. Hence, relationship between employee satisfaction and
performance appraisal is an important area of research.
The questionnaire method is adopted for the collection of data. The level of agreement to
the ten statements are allowed to mark in 5 point score Likert-scale. The sample has been
drawn from the population based on the judgment method. The duly filled questionnaire
is collected from the respondents. The frequency and descriptive statistical analysis of
responses are carried out. The influence of age, formal; education and company
experience is studied. The statistical approach ANOVA is used for the analysis of
responses.
A fair performance appraisal process helps to improve the satisfaction in employees. The
willingness to invest additional effort of towards enhancing production and there by
market and financial position increases with employee satisfaction. The performance
appraisal accounting for the individual and team performance of the members will help to
increase the plant output. Based on the questionnaire survey conducted, it can be
concluded that employees of Apollo Tyre Limited, Kalamassery are satisfied with the
performance appraisal process. Employees satisfaction depends on the many aspects of
performance analysis and company have to look into the balanced blend of important
aspects like communication, measurement policies and post-review decisions.
*****
Chapter 1
1. Introduction
3.1. Overview
Every organization is struggling to remain sustainable and competitive. To implement this
aspect, strategic planners and human resource professionals collaborate more intensively
in designing strategies that are productive and humane. Marquardt (2004) pointed out that
the organizations aiming at maximum productivity and quality have never encountered so
many challenges. However, the situations are changed and challenges are identified as the
opportunities to grow. In 21st century, the success of the organization lies in implementing
focused and integrated human resource processes and systems.
The enormous transformations processes that take place in social, political and economic
regime drive the need for organization to become more responsive to the rapid
development of global strategies and local operational levels. Reid and Hubbell (2005)
stated that culture in the organization makes the people to engage more in the business
activities. Human resource management focuses on personnel related areas such as job
design, resource planning performance management system, recruitment, selection, and
compensation and employee relations. Among the various formal intentions, performance
evaluation and management system is the one of the important aspects that relates to the
satisfaction of employee. Building block of enhancing performance is creating a
performance culture. The satisfaction of employees on performance evaluation increases
when the gap between exceptions and outcome converges. To have the right expectations,
knowledge about the performance measurement system is essential. The various aspects
of performance appraisal system in a private limited company is studied in this thesis
work. The organization selected for the study is Apollo Tyres Limited at Kalamassery,
Cochin.
3.2. performance apprisal and Employee satisfaction
Performance appraisal is the process of obtaining, analyzing and recording information
about the relative worth of an employee. The focus of the performance appraisal is
measuring and improving the actual performance of the employee and also the future
potential of the employee. According to Flippo, a prominent personality in the field of
Human resources, "performance appraisal is the systematic, periodic and an impartial
rating of an employee’s excellence in the matters pertaining to his present job and his
potential for a better job." Performance appraisal is a systematic way of reviewing and
assessing the performance of an employee during a given period of time and planning for
his future. Performance appraisal is a powerful tool to calibrate, refine and reward the
performance of the employee. Performance appraisal helps to analyze his achievements
and evaluate his contribution towards the achievements of the overall organizational
goals.
Employee satisfaction is the terminology used to describe whether employees are happy
and contented and fulfilling their desires and needs at work. Many measures purport that
employee satisfaction is a factor in employee motivation, employee goal achievement,
and positive employee morale in the workplace. Factors contributing to employee
satisfaction include treating employees with respect, providing regular employee
recognition, empowering employees, offering above industry-average benefits and
compensation, providing employee perks and company activities, and positive
management within a success framework of goals, measurements, and expectations.
Employee satisfaction is often measured by anonymous employee satisfaction surveys
administered periodically that gauge employee satisfaction.
Performance appraisal in an organization is aimed at imbibing information to the
employees about their job and amount of effort and behaviour expected from them. On
the other hand, satisfaction of employees is meeting expectations. The performance
appraisal is a tool for promotion and pay fixation in the company. Hence satisfaction of
the employee on performance appraisal plays and important role in the productivity. The
performance appraisal is the creation of shared version of organizational objectives,
occasionally through mission statements communicated to the employees. Performance
review measures the individual targets relating to target of the operating units within the
organization. The satisfied employee will show progress towards the targets of the
organization. Performance review helps to identify training needs among employee.
Hence study on the satisfaction of the employees with the performance appraisal process
in an organization is important area of human resource management.
3.3. SUMMARY
Performance appraisal is an essential management technique. The study aims to measure
the satisfaction of the managerial employees on the performance appraisal system in
Apollo Tyres Limited, Kalamassery. The questionnaire survey method is adopted for
evaluating the satisfaction of the employees. The responses indicated that the employees
are satisfied with the performance appraisal system in Apollo Tyres Limited,
Kalamassery.
Chapter 2
2. The INDUSTRY AND Company Profile
3.4. INDUSTRY STRUCTURE AND DEVELOPMENT
The Indian tyre industry, in comparison to its western counterparts, lags behind in radial
trends. Use of radial tyres for passenger vehicle tyres were maintained at 98%, while for
commercial vehicle segment it was pegged at 22% – a significant growth was observed in
the last year.
The top 5 players – Apollo, Birla, Ceat, JK Tyres and MRF – command over 70% of the
market, with product offerings across all major categories. India continues to be driven by
the commercial vehicle tyre segment, where truck and bus tyres contribute as much as
55% of the industry’s revenue. The replacement market accounts for 70% of the
revenues, though the original equipment segment continues to play a crucial role in terms
of volumes and ensuring product acceptability in the consumers’ mind.
Amongst those who set up new manufacturing units in the country were Bridgestone, JK
Tyres and MRF. Bridgestone’s Rs 4.3 billion plant in central India was completed in July
2011. The unit is geared to produce 12,000 truck-bus radials and 120,000 passenger car
radials every month. Both JK Tyres and MRF, like Apollo, chose the southern Indian
state of Tamil Nadu as their preferred manufacturing location. JK Tyres’ facility, which
was completed in February 2012 with an investment of Rs 10 billion, is equipped to
manufacture around 208,000 passenger car radials and 33,000 truck-bus radials each
month. MRF’s facility, built with an investment of Rs 9 billion, has a capacity of 350,000
passenger car radials and 60,000 truck-bus radials per month. Ceat also ramped up
capacity at its unit in Western India with a radial capacity of 150 tonnes per day. The
Michelin facility in Tamil Nadu with a capacity of 2 million truck-bus radial tyres per
year, is currently under construction and expected to begin production later in the year.
Apollo’s manufacturing unit in Tamil Nadu, which will attain full capacity in December
2012, has been constructed to accommodate a manufacturing capability of 480,000
passenger car radials and 180,000 truck-bus radials each month.
Apollo, Birla, BKT, Falcon, JK Tyres and MRF also sought to expand capacities in their
existing facilities – with combined investment to the tune of Rs 35 billion. In financial
year 12, while production of truck-bus and passenger car tyres went up by a marginal 3%
and 4% respectively, light commercial vehicle and industrial tyre production jumped
11%. The total production in the industry grew by around 5% – a trend which is expected
to continue in the near future. Exports out of India grew in most categories and registered
the highest growth of 65% in the off-the road tyre segment.
In policy developments, legislation on tyre labeling is scheduled to be implemented in
Europe in November 2012; most manufacturers are working towards achieving
compliance for the same. With the new tyre labeling system, consumers will be informed
upfront on where each tyre stacks up on the 3 key areas of rolling resistance, wet grip and
exterior noise. In South Africa, the 4 local manufacturers – Apollo, Bridgestone,
Continental and Goodyear – continue to compete in a market which is dominated by
imports. Growth plans were mostly put on hold due to political and economic concerns in
various African countries. In year 2011, for domestic manufacturers, while the passenger
car tyre category grew marginally, truck bus tyres had a flat year in South Africa.
3.5. INTERNATIONAL SCENARIO
The automobile industry is the single largest consumer of natural rubber in the form of
auto tyres and tubes and certain other parts and accessories. For instances Bridgestone
Corporation in Japan is the world’s largest producer of tyres. Bridgestone consumes 3
lakh tones of natural rubber annually to produce 68 different types of tyre. Pirelli SpA
from Italy consumes 1.2 lakh tones of natural rubber in the production of tyres. Economic
recession anywhere in world generally hit first on this industry prior to other industry.
World production has been fairly stable in the last five years. Wherein, the production in
India is found to be consistently increasing with an average growth rate of 6 percent
during the last 10 years. The growth of the consumption of tyres in Indian market is
steady. The variation in world’s production and consumption is the major sources of
concern on the price front for Indian rubber sector in the free market regime, where global
pressure of imports and exports could make the rubber prices more volatile.
About 47 percent of the natural rubber consumed in the country goes into the production
of auto tyres and tubes and the details of rubber consumption in India are given in Figure
6. This fairly establishes the diffused nature of consumption of natural rubber.
RUBBER CONSUMPTION IN INDIA
47%
13%10%
7%
6%5% 4% 8%
Auto tyre and tube 47%
Cycle tyre and tubes-13%
Footwears-10%
Belts and hoses-7%
Camel black-6%
Latex foam-5%
Dipped rubber good-4%
Other rubber products-8%
Fig. 2.1. Rubber consumption in India
3.6. GLOBAL COMPETITORS
The global competitors are Bridgestone, Michelin etc. Based on the revenue generated,
Apollo is in 15th position. In Vision 2016, Apollo aims to become in 10th position in
global market.
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ridg
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2. M
iche
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3. G
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4. C
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5. P
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6. S
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7. H
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8. Y
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ama
9. G
iti
10. M
axxi
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11. C
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12. H
angz
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13. K
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14. T
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15. A
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16. T
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17. M
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18. N
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19. S
hand
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20. X
ing
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Fig. 2.2. Ranking of Tyre companies based on revenue in global market
3.7. INDIAN SCENARIO
The annual production of rubber from India is about 6 lakh tones and over 90 percent of
the production is from southern part of Kerala. Indian rubber industry comprises of 32
tyre factories, about 250 medium scale units and 6000 small-scale units. Small scale units
are producing every conceivable rubber product from toy, balloons etc. The annual turn
over of the industry is INR 20,000 crores. Salient Features of Indian Tyre Industry
Adaptability and absorption
Exports
Innovations
Indigenous and ready availability
Technology progression
Wide product range for diverse use
Self efficiency and vibrant marketing setup
3.8. COMPETING INDIAN TYRE COMPANIES
The Indian competitors are MRF, JK etc. Based on the production, Apollo is in second
position.
1. MRF
2. Apollo3. JK4. CEAT5. Modi6. Birla7. Good Year8. Vikrant
Fig. 2.3. Ranking of tyre companies based on production in India
3.9. HIGHLIGHTS OF INDIAN TYRE INDUSTRY
The tyre industry is doing business worth Rs. 20,000 cores
The export by tyre industry is Rs.3,000 cores
The future of this industry depends on the agricultural and industrial
performance of the economy, the transportation needs and production of
vehicles
Tyre industry in India is fairy concentrated, with the top eight companies
accounting for more than 80 percent of the total production of tyres
The entry barriers are high in tyre industry in India. It is highly capital
intensive industry. A plant with annual capacity of 1.5 million cross-ply tyres
cost between Rs.4000 and Rs.5000 million. A similar plant producing radial
tyres costs Rs. 8000 million. The automobile tyre industry is dominated by
organized sector and the bicycle tyre industry is hold by unorganized sector.
Natural rubber constitutes 25 percent of the total raw material cost in tyre
manufacture.
The ratio of natural rubber content to synthetic rubber content is 80:20 in
Indian tyres, whereas it is 30:70 abroad.
The tyre industry consumes nearly 50 percent of natural rubber produced
in the country.
3.10. APOLLO TYRES LIMITED
Specialty of Apollo Tyres Ltd. is the
Fastest growing global tyre producers.
First Indian tyre company to cross US$2.5 billion of net sales.
Leading tyre producers in India with well balanced product portfolio.
Largest radial tyre manufactures in India.
UHP and winter tyre capabilities.
Manufacturing plant across three continents with global production capacity of
1649 MT/Day.
Strong portfolio of global and regional brands.
Consistent performance amidst volatile market.
o Growth in net sales is 26.9 percent CAGR over the last five years.
o EBITDA grew at 18.2 percent CAGR over last five years
Extensive distribution network
o 4000 retail dealers in India
o 3100 outlet in Europe
Over 15000 employees globally
3.11. Corporate Overview
Apollo Tyres Ltd, with its corporate headquarters in Gurgaon, India, is in the business of
manufacture and sale of tyres since its inception in 1972. Over the years, the company has
grown manifold, establishing its footprint across the globe.
The company has manufacturing presence in Asia, Europe and Africa, with 9 modern tyre
facilities and exports to over 118 countries. Powered by its key brands - Apollo,
Dunlop (brand rights for 32 African countries) and Vredestein, the company offers a
comprehensive product portfolio spread across passenger car, light truck, truck-bus, off
highway and bicycle tyres, re-treading material and re-treaded tyres.
At the end of its financial year on March 31, 2012, Apollo Tyres had clocked a turnover
of US$ 2.5 billion, backed by a global workforce of approximately 16000 employees.
Apollo Tyres Ltd is traded in India on the Bombay, National and Kochi Stock Exchanges,
with 53.06% of shares held by the public, government entities, banks and financial
institutions as on June 30, 2012.
3.12. Vision and values
Vision : A significant player in the global tyre industry and a brand of choice, providing
customer delight and continuously enhancing stakeholder value.
Values : The values are
Customer First
Business Ethics
Care for Society
Empowerment
Communicate Openly
One Family
3.13. Presence
The world-wide presence is the specialty of company and is given in Fig. 2.4.
Fig 2.4. Details showing the world-wide presence of Apollo Tyres Limited
3.14. Brands
When Apollo Tyres was established in 1972, it was a single brand enterprise. Over the
years, as the organization grew and expanded its footprint across geographies, several
brands either joined or were born into its fold. Today, the company owns 6 key brands
— Apollo, Dunlop (brand rights for 32 African countries), Kaizen, Maloya,
Regal and Vredestein.
While brands Apollo, Dunlop and Vredestein comprise of tyres across categories —
from passenger andcommercial vehicles to off highway tyres, the remaining 3 brands are
more product category specific. Regal and Kaizen focus on the truck-bus tyre segment
while Maloya continues to operate within the passenger vehicle tyre category. Each brand
from the company is equipped with its own distinctive visual language and targeted at a
specific customer need. This approach has enabled Apollo Tyres to provide a wide range
of products for various applications, across geographies — ending with a delighted
customer.
Corporate HeadquarterManufacturing LocationsFocus MarketsMarkets available inEstablished markets
Apollo: Driven by attention to safety, Apollo tyres are manufactured in India and are
available across almost all categories, including commercial and passenger vehicles, farm
and industrial.
The core idea behind brand Apollo is safety. At all times Apollo is willing to travel that
extra mile to deliver what its stakeholders need. Apollo enables individuals to maximise
their own potential, as reflected in its tagline "go the distance". Apollo tyres,
manufactured in India, are available across almost all categories, including commercial
and passenger vehicles, farm and industrial.
Brand Apollo Tyres' genesis dates back to the mid 1970s, when the first corporate identity
was unveiled. It stood for passion, aggression and determination to achieve excellence in
all spheres. Popularly known as the unending road, the logo mirrored the long journey the
company would make for its evolution as a dynamic, multi-cultural and multi-location
entity. This identity served Apollo's dreams and ambitions for over 30 years.
Dunlop: An established name in passenger vehicle segment, Dunlop also manufactures
commercial vehicle and off highway tyres; with 2 facilities in Durban and Ladysmith.
A brand centered on attention to detail and quality in all aspects of its existence —
suitably reflected in its tagline "Driven By Precision". Apollo Tyres Ltd owns right to
brand Dunlop for 32 African countries. Dunlop's history is arguably the most impressive
in the world of tyres. In 1888, Scottish veterinarian John Boyd Dunlop created the first
practical pneumatic tyre for his son's tricycle, to help it go faster and smoother over
cobblestones. Just one year after it was patented, John Boyd's tyres was fitted to a bicycle
and won its first race. Soon J B Dunlop became one of the founders of the Dunlop
Pneumatic Tyre Company; beginning of a revolution in the automobile industry and start
of Dunlop Tyres' journey from strength to strength, with a succession of product
innovations achieved over 123 years.
VREDESTEIN: With a heritage older than 100 years, brand Vredestein's unique story is
best captured through its tagline "Designed To Protect You", which is also its brand
promise. A winning combination of Dutch dedication and Italian elegance, Vredestein is
best known for its premium high performance passenger vehicle tyres, especially in the
winter tyre segment. Moreover, it offers a wide array of equally exclusive and
performance driven tyres for the agriculture, industrial and bicycle categories.
Manufactured out of a state-of-the-art facility in Enschede, in The Netherlands, its
products are sold largely in the aftermarket. Vredestein tyres can be found adorning a
whole range of luxury vehicles across the European Union, the United States, the Middle
East and China.
3.15. Sustainability
As an organization, Apollo Tyres is committed towards creating values for its
stakeholder. And the crucial link here is building a sustainable business, driven by
strategic growth and responsible actions.
Apollo Tyres believes that to truly move up the value chain, it is critical to use fewer
natural resources to produce more. For a growing organization, with a long-term focus
and commitment, it is critical to safeguard resources for the future even as it creates value
today. At Apollo, emphasis is laid on using natural resources cautiously and with care.
In 2011, the company published its 1st Sustainability Report as per Global Reporting
Initiative Version 3. The disclosures and identified gaps have further enabled the
company to better define and evolve its internal systems relating to environmental and
social aspects. Bulk of this work pertains to energy, water, health and safety issues across
operations.
The company’s systems and processes have made it possible for it to report at Level B
and the company is positive about achieving Level A across its operations in the next 2
years. The company undertook a complete audit for all operations globally and our offices
on critical environmental factors and striving to achieve the “green company” status. The
efforts to health,, HIV-AIDS awareness and prevention is strengthened with 21 health
care centres across the country catering to commercial trucking community. The company
embarked Project-U which educates trains and undertakes livelihood for young
unemployed.
3.16. SUMMARY
Tyre industry consumes major part of natural rubber. The revenue in the tyre industry is
affected by recession or decrease in hand to month of citizens. Apollo is a leading tyre
factory having world wide presence. Among the India competitors, Apollo stands first
based on revenue and second based on production. This indicates that Apollo has a strong
and dedicated marketing network.
Chapter 3
3. THEORITICAL FRAME WORK
3.17. introduction
In simple terms, appraisal is the assessment of an individual performance in a systematic
way. The performance are generally measured against such factors as knowledge about
job, quality and quantity of output, initiatives, leadership abilities, supervision,
dependability, co-operation, judgment, versatility, health etc. The assessment of an
employee is expected to cover both past performance and potentials that can be drawn in
future. Alternate terms used for performance appraisal (PA) are performance
review, performance evaluation, (career) development discussion, or employee appraisal.
Employee satisfaction is a measure of how happy workers are with their job and working
environment. Keeping morale high among workers can be of tremendous benefit to any
company, as happy workers will be more likely to produce more, take fewer days off, and
stay loyal to the company. There are many factors in improving or maintaining high
employee satisfaction, which wise employers would do well to implement.
Employee satisfaction is related to the performance appraisal system in the company. In
the appraisal system, strengths of the employee shall be recognized and rewarded to
improve the satisfaction. Similarly, the weaknesses shall be pointed out in the appraisal
system for education and career development.
3.18. Definition of Performance appraisal
Performance appraisal is the systematic evaluation of the individual with respect to his or
her performance on job and his or her potential for development.
Performance appraisal is the formal, structured system of measuring and evaluating the
employees job related behaviors and outcomes to discover how and why the employee is
presently performing on the job and how the employee can perform more effectively in
the future so that employee, organization and society all benefit. (Aswathappa, 2005).
Performance appraisal is the process of identifying, observing, measuring and developing
human performance in organization (Carrol and Scheider, 1982)
3.19. History of Performance appraisal
Fig 3.1. Purpose of performance appraisal
PERFORMANCE APPRAISAL
Administrative purpose
Self-development of employees
Promotion and placement Transfer and demotionsWages and salary fixationTraining and manpower planningPersonnel researchCreating favourable impact on employeesMiscellaneous administrative purposes
Identification ofstrengthweaknessfuture training needs
Sashkin (1944) suggests that performance appraisal has been with us for all human
history and it show no prospects of being ready for the rubbish heap. Scotts et al. (1941)
cited that the performance appraisal was first used by army in World war one to assess the
performance of officers. Murphy and Cleveland (1995) pointed out that performance
appraisal probably began in United States in 1813 when US Army General Lewis Cass
submitted an evaluation of men in the crew to War department. In the late 1960’s,
performance appraisal was used by many companies that experienced outback in
government contracts to make layoff and retention decisions. North (2005) stated that
performance appraisal can be claimed to be the world’s second oldest profession.
3.20. Purposes of performance appraisal
Appraisal of the performance of the employees is carried out for two major purposes,
namely, administrative purpose and self improvement and self development of employees
and is shown in Fig. 3.1.
Promotion and placement of employees
One of the major administrative purposes of performance appraisal is to promote the
employees taking into account of their competence and performance over certain period
of service. Quality and quantum of work performed serves as the basis for promotion in
cases when promotions are giving by merits. Appraisal system identifies whether the
employee can be assigned higher positions in the organization. The promotion on the
basis of appraisal is in the interest of both the management an employee. Performance
appraisal is useful for posting the right candidate within the organization. The
performance appraisal is not useful for the initial placement but is useful for the
subsequent placements.
Transfers and demotions
In organization, certain personnel actions, namely, transfer, demotions, disciplinary
actions and discharges are required to be taken by the management. Such actions need to
be taken in a fair and impartial manner. The performance appraisal reports can be used for
taking final decisions on such activities. The suitable employee can be identified for new
assignments or deputation by evaluating the performance appraisal.
Wages and salary payment
Wage or salary payment is normally linked with performance appraisal. Wage increase is
based on the performance appraisal reports. Better performance in the managerial level is
normally rewarded by additional salary payment. For judging the performance of
executives, periodical appraisal is essential. It is also useful for allocating rewards to
deserving employees.
Training and manpower development
Performance appraisal is useful for validating the selection for specialized training and
development programmes. Appraisal helps to identify the skills and competences and also
the weakness in the employee. The appraisal enables management to identify the areas of
training programme to be organized in future. The need for executive training for
managers in the new placements is organized after evaluation of performance appraisal.
The appraisal helps to identify requirement of in-house or institutional training.
Performance appraisal is a useful tool of evaluating training and development needs of
the organization.
Personnel research
Performance appraisal serves as a feedback to management in the area of personnel
research. The human capital in the organization can be measured and forecasted based on
the appraisal. The manpower replacement procedure can be initiated for the retiring
personnel in the organization. The appraisal is one of the components used for the
manpower demand forecast. The valuable information in the appraisal can be used to
measure motivation and satisfaction in employees.
Favorable impact on employees
The performance appraisal creates a favourable impact on employees. The appraisal is a
tool for identifying talented persons, promotions, training and salary fixation. The
employees will be motivated to score high in the appraisal system for receiving incentives
or better placement. The, appraisal will help to take a meaningful decision in transfer and
promotions. In brief, performance appraisal gives favourable impact on employees.
Performance appraisal improves the morale and offers opportunities of career
development.
Miscellaneous administrative purposes of appraisal
The miscellaneous administrative purposes are (i) to confirm the service probationary of
the employees after the completion of probationary period successfully, (ii) to improve
communication and cooperation between superior and subordinates and (iii) to determine
whether HR programmes, namely, selection, training and transfers are effective or not.
Self improvement of employees
In addition to administrative purpose, performance appraisal facilitates self improvement
and development of employee. Appraisal suggests the weakness and shortcomings of the
employee. It serves as feed back to the employee. Appraisal is followed by discussion
between the rater and employee in a spirit of cooperation and mutual understanding.
Counseling of employees for improving their performance is conducted by post appraisal
interviews. Performance appraisal is important and useful for the organization to achieve
long term goals. Performance appraisal helps to improve, grow and develop for higher
positions in the organization.
3.21. Uses of performance appraisal
The uses of performance appraisal are administrative, maintenance use and
documentation. Administrative use of performance appraisal is to measure performance
for administrative decisions of employees. The purposes include rewarding, promotion,
layoff, training etc. The appraisal is a tool for measuring individual performance in the
organization. In this case, manager is featured more as counselor than a judge. The
emphasis is given for identifying potential and planning growth opportunities of
employee.
Maintenance use of performance appraisal is to carry functions such as human resource
planning, determining training needs etc. for the smooth functioning of sub-systems.
Documentation of performance appraisal is used for the purpose of recording the
development of employee throughout the career in the organization.
3.22. Approaches of Performance appraisal
There are two approaches in performance appraisal, namely, informal approach and
systematic approach. Informal approach is conducted whenever the supervisor feels it is
necessary. The day-to-day working relationship between a manager and employee offers
an opportunity for the judgment of employee performance. The judgment of informal
approach is communicated on job or on coffee time conversation. Frequent internal
feedback to employees can avoid surprises when the formal evaluation is communicated.
Systematic appraisal is used when the contact between the manager and the employee is
formal and system is in place to report managerial impressions and observations on
employee performance. Its aim is to support administrative and developmental decisions.
3.23. Timing of appraisal
A regular time interval is a feature of systematic appraisals that distinguishes them from
informal appraisals. The appraisals are conducted once or twice in an year. The
companies in high technology or software field conduct appraisal in every six months so
that the employees are promoted more frequently. This results in reduction in turnover of
employees. In Apollo, the appraisal is conducted in every year.
3.24. Objectives of performance appraisal
To review the performance of the employees over a period of time
To judge the gap between actual and desired performance
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior and
subordinates
To diagnose the strengths and weakness of the individuals so as to identify the
training and development needs in the future
To provide feedback to the employees regarding their past performance
Provide information to assist in the other personal decisions in the orgnaisation.
Provide information to assist in other personal decisions in the organizations.
To provide clarity of expectations and responsibilities of the functions to be
performed by employees
To judge the effectiveness of the human resource functions, namely, recruitment,
selection, training and development.
To reduce the grievances of the employees
To calibrate, refine and reward the performance of the employee.
To focus the progress in performance of employees.
3.25. Process of performance appraisal
Establishing performance standards
Evaluation without standards is meaningless. As such, appraisal process starts with the
search of standards. The right standards are to be selected, defined and established for
making appraisal meaningful and clear. The standards established by careful analysis
should be used as the base for rating the actual performance of employees. The standards
set should be comprehensive, integrating all aspects of the desired performance and they
should also clear, easily understandable and measurable.
Fig 3.2 performance appraisal process
Communicating standards
For better working of the appraisal system, all the employees should be aware of the
process and methods. The information about the standards and usefulness to appraise the
performance should be communicated to the employees of the organization. The
employee should also seek to know the standards and the application in appraisal process.
Establishing performance appraisal
Communicating standards and expectations
Measuring actual performance
Comparing with standards
Discussing results
Decision making and corrective action
Well-informed employees will be clear about the roles and performance expectations.
Supervisors will be clear about the roles of the evaluators. Good communication helps in
meaningful discussions, clarifications and commitment. It gives an opportunity to modify
standards at the initial stage itself based on relevant feedback from the employees or
evaluators.
Measuring the actual performance
The most difficult part of the performance appraisal process is measuring the actual
performance or the work done by the employee over a specific period of time. It is
continuous process which involves monitoring the performance through the year. This
stage requires careful selection of appropriate technique of measurement, taking care that
personal bias does not affect the outcome of the process and providing assistance rather
than inferring in employee’s work.
Comparing the actual performance with standards
The actual performance is compared with standard performance. The comparison tells the
deviations in the performance of the employee from the established standard. The results
can bring out the actual performance being less than the desired performance depicting a
negative deviation in the organizational performance. It induces recalling, evaluating and
analysis of data related to the employee performance.
Discussing results
The result of the appraisal is communicated and discussed with the employee on one-to-
one basis. The focus of the discussion is on communication and listening. The result, the
problems and the possible solution are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude as this can
have an effect on the employee future performance. The purpose of the meeting is to
solve the problems faced and motivate the employees top perform better
Decision making
The last step of the performance appraisal process is to take decisions in order to improve
performance, identify corrective actions or implement HR decisions such as rewards,
promotions, transfers etc. A better performance appraisal system should focus on the
individuals and his development so as to make-up the employee to perform the desired
performance. Performance appraisal is having direct linkage with personnel management
in the areas of selection, mobility, training etc.
3.26. Performance Appraisal for different workgroups
Workforce alignment empowers managers and employees by creating ownership and
commitment in the organisation's success by aligning goals and development to overall
strategy and objectives. Furthermore, organisations taking a competence-based
Performance Appraisal approach achieve better business results, get more engaged
employees and increased retention.
Performance Appraisal permits to build, streamline, and deliver strategic initiatives across
recruiting, on-boarding, performance appraisals, competence assessments, learning and
development, succession planning and more.
Goal alignment & Performance Appraisal
Feedback and recognition
Development planning
Reports and Analytics
Flexible forms
Goal management functionality shows each employee how their individual performance
goals align and support the organisation's strategy. By setting SMART goals (Specific –
Measurable – Achievable – Realistic – Timely) and activities to achieve these, managers
and employees get a practical and concrete tool to ensure they are on the right course.
Performance Appraisal simplifies and streamlines the entire employee performance
evaluation and can be used standalone or integrated with any of the other modules to
deliver a complete cloud-based, performance driven human capital management solution.
HR professionals: Get the most convenient and cost-effective way to conduct
* ED1 = Group of employees having formal education up to Bachelor degree & number of respondents = 14+ ED2 = Group of employees having formal education greater than Bachelor degree & number of respondents = 17
The magnitude of frequency of response given in Table 5.14 indicates that response of
employees having formal education up to bachelor degree and greater than bachelor
degree is comparable. Hence it may be concluded that the satisfaction level on the
performance appraisal between employees differ in experience is almost same. The
highest magnitude of the frequency of response of employees having formal education up
to bachelor degree is found to be 48 percent and is for statement number 4. The highest
magnitude of the frequency of response of employees having formal education greater
than bachelor degree is found to be 35 percent and is corresponding to the statement
number 7. Hence it may be concluded that the statement number 4 is accepted by
majority of employees having formal education up to bachelor degree and statement
number 7 by employees having education greater than bachelor degree.
1. I clearly understand the purpose of performance appraisal
1629
0 0 0
3223
0 0 00
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
≤ B. Degree
>B. Degree
Education
Fig 5.28. Influence of formal education on response of statement number 1
The influence of formal education of the employees on the response of the statement
number 1 is given in Fig 5.28. The frequency of the response of the communication of the
purpose of performance appraisal is evaluated in statement number 1. Thirty two percent
of the employees having formal education greater than bachelor degree are opted
‘strongly agree’ and twenty nine percent of the employees having formal education up to
bachelor degree opted ‘agree’.
2. Performance appraisal in my company is fair
13
29
3 0 013
39
3 0 00
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
≤ B. Degree
>B. Degree
Education
Fig 5.29. Influence of formal education on response of statement number 2
The influence of formal education of the employees on the response of the statement
number 2 is given in Fig 5.29. The overall satisfaction on the performance appraisal is
evaluated using statement number 2. Thirty nine percent of the employees having formal
education greater than bachelor degree are opted ‘agree’ and twenty nine percent of the
employees having formal education up to bachelor degree opted ‘agree’.
3. Performance appraisal reflects objectively my performance
6
32
6 0 07
39
100 0
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
≤ B. Degree
>B. Degree
Education
Fig 5.30. Influence of formal education on response of statement number 3
The influence of formal education of the employees on the response of the statement
number 3 is given in Fig 5.30. Whether the appraisal system objectively evaluates
individual’s performance is studied using statement number 3. Thirty nine percent of the
employees having formal education greater than bachelor degree are opted ‘agree’ and
thirty two percent of the employees having formal education up to bachelor degree opted
‘agree’.
4. Performance appraisal is a tool for promotion and pay fixation
1626
3 0 07
48
0 0 00
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
≤ B. Degree
>B. Degree
Education
Fig 5.31. Influence of formal education on response of statement number 4
The influence of formal education of the employees on the response of the statement
number 4 is given in Fig 5.31. The frequency of the response of the statement on the
purpose of performance appraisal as promotion and pay fixation tool is evaluated in
statement number 4. Forty eight percent of the employees having formal education
greater than bachelor degree are opted ‘agree’ and twenty six percent of the employees
having formal education up to bachelor degree opted ‘agree’.
5. Performance appraisal process helps my superior to manage people better
1019
10 6 00
42
130 0
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
≤ B. Degree
> B. Degree
Education
Fig 5.32. Influence of formal education on response of statement number 5
The influence of formal education of the employees on the response of the statement
number 5 is given in Fig 5.32. The frequency of the response of the statement on the
purpose of performance appraisal as management tool is evaluated in statement number 5.
Forty two percent of the employees having formal education greater than bachelor degree
are opted ‘agree’ and nineteen percent of the employees having formal education up to
bachelor degree opted ‘agree’.
6. Performance appraisal process encourages co-operation and team spirit
1019 13
3 03
36
133 0
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
≤ B. Degree
>B. Degree
Education
Fig 5.33. Influence of formal education on response of statement number 6
The influence of formal education of the employees on the response of the statement
number 6 is given in Fig 5.33. The frequency of the response of the statement on the
purpose of performance appraisal as tool to improve cooperation and team sprit is
evaluated in statement number 6. Thirty six percent of the employees having formal
education greater than bachelor degree are opted ‘agree’ and nineteen percent of the
employees having formal education up to bachelor degree opted ‘agree’.
Fig 5.34. Influence of formal education on response of statement number 7
The influence of formal education of the employees on the response of the statement
number 7 is given in Fig 5.34. The frequency of the response of the statement on
capability of performance appraisal to individual performance is evaluated in statement
number 7. Thirty seven percent of the employees having formal education greater than
bachelor degree are opted ‘agree’ and thirty five percent of the employees having formal
education up to bachelor degree opted ‘agree’.
8. Present appraisal system recognizes improved performance of individual
1323
3 6 03
42
100 0
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
≤ B. Degree
> B. Degree
Education
Fig 5.35. Influence of formal education on response of statement number 8
The influence of formal education of the employees on the response of the statement
number 8 is given in Fig 5.35. The frequency of the response of the statement on
capability of performance appraisal to improved performance of an individual is
evaluated in statement number 8. Forty two percent of the employees having formal
education greater than bachelor degree are opted ‘agree’ and twenty three percent of the
employees having formal education up to bachelor degree opted ‘agree’.
9. Performance appraisal is a career developmental and educational tool
13 1019
3 03
42
100 0
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
≤ B. Degree
> B. Degree
Education
Fig 5.36. Influence of formal education on response of statement number 9
The influence of formal education of the employees on the response of the statement
number 9 is given in Fig 5.36. The frequency of the response of the statement on purpose
of performance appraisal as career development and education (training) tool is evaluated
in statement number 9. Forty two percent of the employees having formal education
greater than bachelor degree are opted ‘agree’ and nineteen percent of the employees
having formal education up to bachelor degree opted ‘ neither agree nor disagree’.
10. Performance appraisal feedback will be conveyed to me
1323
010
00
39
6 90
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
≤ B. Degree
> B. Degree
Education
Fig 5.37. Influence of formal education on response of statement number 10
The influence of formal education of the employees on the response of the statement
number 10 is given in Fig 5.37. The frequency of the response of the statement on
communication of feedback of performance appraisal is evaluated in statement number
10. Thirty nine percent of the employees having formal education greater than bachelor
degree are opted ‘agree’ and twenty three percent of the employees having formal
education up to bachelor degree opted ‘agree’.
Table 5.15. Descriptive statistical analysis of influence of formal education on response of scores for statements in questionnaire
Statement Minimum Maximum Mean Standard
deviation Variance
ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+
1. I clearly understand the
purpose of performance
appraisal
4 4 5 5 4.36 4.59 0.50 0.51 0.25 0.26
2. Performance appraisal in
my company is fair
3 3 5 5 4.21 4.18 0.58 0.53 0.34 0.28
3. Performance appraisal reflects
objectively my performance
3 3 5 5 4.00 3.94 0.55 0.56 0.31 0.31
4. Performance appraisal is a
tool for promotion and
pay fixation
3 4 5 5 4.29 4.12 0.61 0.33 0.37 0.11
5. Performance appraisal
process helps my superior to manage people
better
2 3 5 4 3.71 3.76 0.99 0.44 0.99 0.19
Statement Minimum Maximum Mean Standard
deviation Variance
ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+
6. Performance appraisal process
encourages co-operation and
team spirit
2 2 5 5 3.79 3.71 0.89 0.69 0.80 0.47
7. Performance appraisal
influences individual
performance positively
2 3 5 5 3.79 4.24 0.80 0.56 0.64 0.32
8. Present appraisal system
recognizes improved
performance of individual
2 3 5 5 3.93 3.88 1.00 0.49 0.99 0.24
9. Performance appraisal is a
career developmental
and educational
tool
2 3 5 5 3.71 3.88 0.99 0.49 0.99 0.24
10. Performance
appraisal feedback will
be conveyed to me
2 2 5 4 3.86 3.53 1.10 0.80 1.21 0.64
Overall
(statement number 1 to
10)
2 2 5 5 3.96 3.98 0.83 0.61 0.70 0.37
* ED1 = Group of employees having formal education up to Bachelor degree & number of respondents = 14+ ED2 = Group of employees having formal education greater than Bachelor degree & number of respondents = 17
The score based comparative study of scores of responses of the employees is given in
Table 5.15. The rank of 5 to 1 is given corresponding to the option ‘strongly agree’ to
‘strongly disagree’ in the questionnaire. The minimum score opted by employees having
formal education up to bachelor degree is found to be 2 and is corresponding to the
statement 5 and 10. The maximum score opted for all statements by employees having
formal education up to bachelor degree is found to be 5. The minimum score opted by
employees having formal education greater than bachelor degree is found to be 2 and is
corresponding to the statement 5 to 10. The maximum score opted for all statements by
employees having formal education greater than bachelor degree is found to be 5. The
mean, standard deviation and variance of score of the responses opted by different age
group is compared in Table 5.15.
1
2
3
4
5
1 2 3 4 5 6 7 8 9 10
Statement Number
Mea
n S
core
≤ B. Degree
> B. Degree
Education
Fig 5.38. Influence of formal education of employees on the mean score of responses for the statements 1 to 10.
The mean of the scores opted by employees having formal education up to bachelor
degree is compared with the corresponding data of employees having formal education
greater than bachelor degree and is also given in Fig 5.38. The magnitude of mean of
score opted by the two age groups is found to be comparable and hence it may be
concluded that formal education of employees does not influence the satisfaction level of
employees on performance appraisal system significantly.
Table 5.16. The correlation of mean of scores of statements by different employees groups differ in formal education
Education up to Bachelor degree
Education greater than bachelor degree
Education up to Bachelor degree
1 0.7014
Education greater than bachelor degree
0.7014 1
The correlation coefficient of mean of scores for the statements in the questionnaire opted
by the two employees groups differ in formal education namely education up to Bachelor
degree and education greater than bachelor degree is found to be 0.7014 and is given in
Table 5.16. This indicates that the mean of the scores of two age groups is correlated.
The null hypothesis of this part of the study is the response of employees having formal
education up to bachelor degree is unrelated to the response of the employees having
formal education greater than bachelor degree on the performance appraisal system in
Apollo Tyres Limited, Kalamassery. The ANOVA is carried out to test the null hypothesis
and the results are given in Table 5.17.
Table 5.17. Results of ANOVA of mean scores of responses of employees groups differ in formal education
* EX1 = Group of employees having experience up to 5 years & number of respondents = 8+ EX2 = Group of employees having experience greater than 5 years & number of respondents = 23
The magnitude of frequency of response is given in Table 5.18. The response of
employees having company experience greater than 5 years is be greater in magnitude
than those up to 5 years. The highest magnitude of the frequency of response of
employees having company experience up to 5 years is found to be 23 percent and is for
statement number 7 and 9. The highest magnitude of the frequency of response of
employees having experience greater than 5 years is found to be 55 percent and is
corresponding to the statement number 4. Hence it may be concluded that the statement
number 4 is accepted by majority of employees having experience greater than 5 years.
The frequency of response of the employees having experience greater than 5 years is
found to be greater in magnitude when compared to corresponding data of employees
having experience up to 5 years.
1. I clearly understand the purpose of performance appraisal
1016
0 0 0
38 36
0 0 00
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
0-5 years
>5 years
Experience
Fig 5.39. Influence of company experience on response of statement number 1
The influence of company experience on the response of the statement number 1 is given
in Fig 5.39. The frequency of the response of the communication of the purpose of
performance appraisal is evaluated in statement number 1. Thirty six percent of the
employees having company experience greater than 5 years are opted ‘agree’ and thirty
eight percent of the employees having company experience up to 5 years opted ‘ strongly
agree’.
2. Performance appraisal in my company is fair
1016
0 0 0
16
52
6 0 00
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
0-5 years
>5 years
Experience
Fig 5.40. Influence of company experience on response of statement number 2
The influence of company experience of the employees on the response of the statement
number 2 is given in Fig 5.40. The overall satisfaction on the performance appraisal is
evaluated using statement number 2. Fifty two percent of the employees having company
experience greater than 5 years are opted ‘agree’ and sixteen percent of the employees
having company experience up to 5 years opted ‘agree’.
3. Performance appraisal reflects objectively my performance
3
19
3 0 010
52
130 0
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
0-5 years
>5 years
Experience
Fig 5.41. Influence of company experience on response of statement number 3
The influence of company experience of the employees on the response of the statement
number 3 is given in Fig 5.41. Whether the appraisal system objectively evaluates
individual’s performance is studied using statement number 3. Fifty two percent of the
employees having company experience greater than 5 years are opted ‘agree’ and ninteen
percent of the employees having company experience up to 5 years opted ‘agree’.
4. Performance appraisal is a tool for promotion and pay fixation
619
0 0 0
17
55
3 0 00
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
0-5 years
>5 years
Experience
Fig 5.42. Influence of company experience on response of statement number 4
The influence of company experience of the employees on the response of the statement
number 4 is given in Fig 5.42. The frequency of the response of the statement on the
purpose of performance appraisal as promotion and pay fixation tool is evaluated in
statement number 4. Fifty five percent of the employees having company experience
greater than 5 years are opted ‘agree’ and nineteen percent of the employees having
company experience up to 5 years opted ‘agree’.
5. Performance appraisal process helps my superior to manage people better
316
6 0 07
45
176 0
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
0-5 years
> 5 years
Experience
Fig 5.43. Influence of company experience on response of statement number 5
The influence of company experience of the employees on the response of the statement
number 5 is given in Fig 5.43. The frequency of the response of the statement on the
purpose of performance appraisal as management tool is evaluated in statement number 5.
Forty five percent of the employees having company experience greater than 5 years are
opted ‘agree’ and sixteen percent of the employees having company experience up to 5
years opted ‘agree’.
6. Performance appraisal process encourages co-operation and team spirit
310 10
3 010
45
163 0
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
0-5 years
>5 years
Experience
Fig 5.44. Influence of company experience on response of statement number 6
The influence of company experience of the employees on the response of the statement
number 6 is given in Fig 5.44. The frequency of the response of the statement on the
purpose of performance appraisal as tool to improve cooperation and team sprit is
evaluated in statement number 6. Forty five percent of the employees having company
experience greater than 5 years are opted ‘agree’. Ten percent of the employees having
Fig 5.45. Influence of company experience on response of statement number 7
The influence of company experience of the employees on the response of the statement
number 7 is given in Fig 5.45. The frequency of the response of the statement on
capability of performance appraisal to individual performance is evaluated in statement
number 7. Forty nine percent of the employees having company experience greater than 5
years are opted ‘agree’ and twenty three percent of the employees having company
experience up to 5 years opted ‘agree’.
8. Present appraisal system recognizes improved performance of individual
3
23
0 0 013
42
136 0
0
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
0-5 years
>5 years
Experience
Fig 5.46. Influence of company experience on response of statement number 8
The influence of company experience of the employees on the response of the statement
number 8 is given in Fig 5.46. The frequency of the response of the statement on
capability of performance appraisal to improved performance of an individual is
evaluated in statement number 8. Forty two percent of the employees having company
experience greater than 5 years are opted ‘agree’ and twenty three percent of the
employees having company experience up to 5 years opted ‘agree’.
9. Performance appraisal is a career developmental and educational tool
6 10 100 0
10
42
19
3 00
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
0-5 years
>5 years
Experience
Fig 5.47. Influence of company experience on response of statement number 9
The influence of company experience of the employees on the response of the statement
number 9 is given in Fig 5.47. The frequency of the response of the statement on purpose
of performance appraisal as career development and education (training) tool is evaluated
in statement number 9. Forty two percent of the employees having company experience
greater than 5 years are opted ‘agree’ and ten percent of the employees having company
experience up to 5 years opted ‘ neither agree nor disagree’.
10. Performance appraisal feedback will be conveyed to me
616
3 0 07
46
3
19
00
20
40
60
80
100
Stronglyagree
Agree Neitheragree nordisagree
Disagree Stronglydisagree
Response
Res
po
nd
ents
(%
)
0-5 years
>5 years
Experience
Fig 5.48. Influence of company experience on response of statement number 10
The influence of company experience of the employees on the response of the statement
number 10 is given in Fig 5.48. The frequency of the response of the statement on
communication of feedback of performance appraisal is evaluated in statement number
10. Forty six percent of the employees having company experience greater than 5 years
are opted ‘agree’ and sixteen percent of the employees having company experience up to
5 years opted ‘agree’.
Table 5.19. Descriptive statistical analysis of influence of company experience on response of scores for statements in questionnaire
Statement Minimum Maximum Mean Standard
deviation Variance
EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+
1. I clearly understand the
purpose of performance
appraisal
4 4 5 5 4.38 4.52 0.52 0.51 0.27 0.26
Statement Minimum Maximum Mean Standard
deviation Variance
EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+
2. Performance appraisal in
my company is fair
4 3 5 5 4.38 4.13 0.52 0.55 0.27 0.30
3. Performance appraisal reflects
objectively my performance
3 3 5 5 4.00 3.96 0.53 0.56 0.29 0.32
4. Performance appraisal is a
tool for promotion and
pay fixation
4 3 5 5 4.25 4.17 0.46 0.49 0.21 0.24
5. Performance appraisal
process helps my superior to manage people
better
3 2 5 5 3.88 3.70 0.64 0.76 0.41 0.58
6. Performance appraisal process
encourages co-operation and
team spirit
2 2 5 5 3.50 3.83 0.93 0.72 0.86 0.51
7. Performance appraisal
influences individual
performance positively
3 2 4 5 3.88 4.09 0.35 0.79 0.13 0.63
8. Present appraisal system
recognizes improved
performance of individual
4 2 5 5 4.13 3.83 0.35 0.83 0.13 0.70
Statement Minimum Maximum Mean Standard
deviation Variance
EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+
9. Performance appraisal is a
career developmental
and educational
tool
3 2 5 5 3.88 3.78 0.83 0.74 0.70 0.54
10. Performance
appraisal feedback will
be conveyed to me
3 2 5 5 4.13 3.52 0.64 0.99 0.41 0.99
Overall
(statement number 1 to
10)
2 2 5 5 4.04 3.95 0.63 0.75 0.39 0.56
* EX1 = Group of employees having experience up to 5 years & number of respondents = 8+ EX2 = Group of employees having experience greater than 5 years & number of respondents = 23
The score based comparative study of scores of responses of the employees is given in
Table 5.19. The rank of 5 to 1 is assigned to the option ‘strongly agree’ to ‘strongly
disagree’ in the questionnaire. The minimum score opted by employees having company
experience up to 5 years is found to be 2 and is corresponding to the statement 6 and 10.
The maximum score opted for all statements by employees having company experience
up to 5 years is found to be 5. The minimum score opted by employees having company
experience greater than 5 years is found to be 2 and is corresponding to the statement 5 to
10. The maximum score opted for all statements by employees having company
experience greater than 5 years is found to be 5. The mean, standard deviation and
variance of score of the responses opted by different age group is compared in Table 5.15.
1
2
3
4
5
1 2 3 4 5 6 7 8 9 10
Statement Number
Mea
n S
core
0-5 years
> 5 years
Experience
Fig 5.49. Influence of company experience of employees on the mean score of responses for the statements 1 to 10.
The mean of the scores opted by employees having company experience up to 5 years is
compared with the corresponding data of employees having company experience greater
than 5 years and is also given in Fig 5.49. The magnitude of mean of score opted by the
two age groups is found to be comparable and hence it may be concluded that company
experience of employees does not influence the satisfaction level of employees on
performance appraisal system significantly.
Table 5.20. The correlation of mean of scores of statements by different employees groups differ in company experience
Company experience up to 5 years
Company experience greater than 5 years
Company experience up to 5 years
1 0.5259
Company experience greater than 5 years
0.5259 1
The correlation coefficient of mean of scores for the statements in the questionnaire opted
by the two employees groups differ in company experience namely up to 5 years and
greater than 5 years is found to be 0.5259 and is given in Table 5.20. This indicates that
the mean of the scores of two age groups is correlated.
The null hypothesis of this part of the study is the response of employees having company
experience up to 5 years is unrelated to the response of the employees having company
experience greater than 5 years on the performance appraisal system in Apollo Tyres
Limited, Kalamassery. The ANOVA is carried out to test the null hypothesis and the
results are given in Table 5.21.
Table 5.21. Results of ANOVA of mean scores of responses of employees groups differ in company experience