1

INTRODUCTION
1.1 About the Study Performance appraisal is the process of evaluating an employees performance in a given job in terms of its requirements. Effective performance appraisal system has two basic systems operating in conjunction: an evaluation system and a feedback system. The main aim of the evaluation system is to identify the performance gap (if any). This gap is the shortfall that occurs when performance does not meet the standard set by the organization as acceptable. The aim of the PA system is to inform the employee about the quality of his or her performance. One of the best ways to appreciate the purpose of the performance appraisal is to look at it from the different viewpoints of the main stakeholders: the employee and the organization. Organizations are had pressed to find good reasons why they cant dedicate an hour-long meeting once a year to ensure the mutual needs of the employee and organizations are met. Performance reviews help supervisors feel more honest in their relationship with their subordinates and feel better about themselves in their supervisor roles. Subordinates are assured clear understanding of whats expected from them, their own personal strengths and areas for development and a solid sense of their relationship with their supervisor. Avoiding performance issues ultimately decreases morale, decreases credibility of management, decreases the organizations overall effectiveness and wastes more of managements time to do what isnt done properly.

2 Need for the Study Performance appraisal system is a key scrutinizing in all corporate. And it is the key component in identifying the performance, and the quadrant where the employees strengths and skills have to be effectiveness, required for the performance appraisal system. Its a known fact that a regular feedback results in modification of the performance appraisal system. Thus these factors implicate need for this study. The study on performance appraisal system will facilities the HR department to know the satisfaction level of the employees and problem in the system, factors which facilitate the to make system more effective, etc. employees can also improve their performance by knowing the present status, so that continuous performance assessment should be there in the organization.

3 OBJECTIVES OF THE STUDY The following are the objectives of the study To know the awareness status of the performance appraisal system in the organization. What are the factors responsible for improving the performance. To find out the effectiveness of the performance appraisal system. To know the satisfaction level of the employees about the performance appraisal system. To suggest ways and means for a better performance appraisal system.

4 SCOPE OF THE STUDY The present trend is towards the development of term-with each team member complementing rather than competing with each other. The development of work teams allows team members to specialize in areas in which they performance appraisal continuous to be a subject of interest and importance to human resource specialists. For decades of performance appraisal has received considerable attention in the literature, from both researches and parishioners alike. Many authors maintain that there is a considerable gap between theory and practice, and that human resource specialists are not making full use of the psychometric tools available. Instead of simply deciding on an absolute basis about whether an employee is fit for his job or not, appraisals are better seems as instrument used to paint a profile of an employees strengths and weaknesses. More importantly, an employee is evaluated for his continuation towards organizational, departmental. Specially related, professional and personal goals. This evaluation serves to identify reasons accounting for the present level of performance and to seek ways to improve future effectiveness. Performance appraisal system acts more than an evaluative function by identifying areas of weakness and correcting these with relevant training, appraisals serve a motivational purpose. By setting goals, a sense of direction is instilled and job satisfaction and motivation improved are interested in or good at. The appraisal method is increasingly used to fill the skills gap in terms, rather than using them for general assessment of performance.

5 LIMITATIONS OF THE STUDY Data collected at the point of time will reflect the status of the population at the time only. Since this is qualitative research, complete objectivity should be viewed in a limited sense. The study was conducted in a very short period. Depth analysis is not possible in certain area as it is considered as highly confidential. Wrong opinions expressed by the employees due to fear also affected the genuineness of the results. The findings of the study are only applicable to the employees of Indus motors (P) Ltd. Hence the results of the study cannot be generalized.

INDUSTRY PROFILE
Growth of Tyre Industry in India The tyre industry began to grow during 1930s. The growth of tyre industry in India may be divided in to 3 phases. In the first phase multinationals came in to India and started selling tyres. The first among them was firestone, followed by either multinational like Goodyear, Dunlop, etc. In the second phase the multinationals started their production in India and they become first generation tyre manufacturers in India. Among the first generation tyres, Dunlop was the first company that started their domestic production at Calcutta. The third phase of Indian tyre industry began when Indian companies started producing tyres, which came to be called as second- generation tyres. The important among them are MRF tyres, PREMIER tyres, GOODYEAR tyres, CEAT tyres, etc. They started production in sixties. Later in the 70s the third generation tyres started their production. The main third generation tyres are APOLLO, VIKRANT, JK, MODI tyres, etc. All the tyre companies, which started their operation after 1970s, and the tyre companies, which are yet to start production, are classified under the fourth generation. Notable among them are S.KUMAR, RADO, SREECHAKRA, BIRLA tyres, etc. Market leaders in the tyre industry are MRF, JK, CEAT, APOLLO, GOODYEAR, and tyres. They are updating their strategies in order to hold their market shares and invade others. Indian Tyre Industry Tyre made in India can be broadly classified as cross ply and radial. The body of a tyre called carcass or casing is made up of layers of rubber coated nylon or rayon fabric called plies, the main difference between these two types is the direction in which the ply cords are arranged and the type of re-inforcement medium used. In a cross ply tyre, cords run across each other or diagonally to the outer surface of the tyre. On the other hand in a radial tyre, the cords run radially from bead to bead at 90 degrees angle to the rim or along the outer surface of the tyre. In a cross ply tyre, the major re-inforcing materials used are rayon and nylon tyre cords. In a radial tyre, the reinforcing mediums

7 are polyester, nylon, fiberglass, and steel. As such there is a substantial price difference between cross ply and radial tyres. Radial tyres are 10-15% costly compared to the cross ply ones and naturally, in India they sell less than the cross ply ones. The radial tyres provide certain advantages like better vehicle control, longer tyre life, cooler running and better road holding and lower fuel consumption. They even reduce the occurrence of flat. Even then radial tyres have not really caught on there because road conditions are unsuitable for radial tyres. Moreover, as against radials, the cross plies can be retread twice during the lifetime of the tyre and given the cost of a new tyre it comes cheaper. The overloading conditions in the truck, light and heavy commercial vehicles is one of the factors responsible for non popularity of radials in this segment. Radial tyres account for only 5% of the total Indian tyre production as against 6080% in the developed countries. The extent of radialisation is highest, at almost 40% in the passenger car segment and lowest in the truck tyre segment, which constitutes about 75% of the total value in production. The industry is looking at radialisation as one of the ways. To survive in these falling market conditions. They are expecting 55-60% radialisation in the passenger car segment by the year 2003 while in the commercial vehicles segment radialisation is expected to attain only 13-15% by that time. The raw materials The tyre industry is material intensive. Raw materials account for almost 70% of the production cost. The main raw material for tyre is rubber (natural and synthetic), carbon black, and nylon tyre cord and rubber chemicals. The tyre segment accounts for a major chunk of total rubber consumption, and is increasing its share, where as in developed nations, the highly radialised tyre industry consumes more of synthetic rubber than natural rubber (the ratio is 80:20) in India it is just opposite.

8 The important raw materials used are Natural rubber In a tyre, about 50% in weight terms and 40% in value terms comprise of natural rubber. The industry uses RSS-4 grade rubber, domestic rubber production has increased at a comp growth rate of 95 annually between 1991to 1996 from 3.3 lakh MT to 5.07 lakh MT. between April and august of 1996, production of natural rubber grew by 12.4% over corresponding period in 1995. But domestic consumption being higher a small amount had to be imported. Synthetic rubber There are two types of synthetic rubber: Polybutadiene rubber (PBR) and Styrene butadiene rubber (SBR). Polybutadiene rubber (PBR) PBR forms 40% of the synthetic rubber used in tyres. At present IPCI is the only domestic producer of PBR, p only 44%of the tyre industrys requirement. The rest is imported. Styrenebutadiene rubber (SBR) SBR is primarily used in passenger car radials to give the grip to the tyres. Nylon Tyre cord (NTC) This is also an important raw material used in tyres constituting about 36% of value of tyres. It is mainly used as a reinforcement material imparting strength and tenacity to the tyre. It also affects the wear and tear of the tyre. The tyre cord is placed below the tyre tread, which is in contact with the road. Carbon black Carbon black is also petroleum by-product. It gives the black color to the tyre

9 COMPANY PROFILE APOLLO TYRES LIMITED, KALAMASSERY Location Production capacity Year installed Total land area Plant area No. Of employees : : : : : : Kalamassery, Cochin, Kerala 80mt/day 1962 1,17,908 sq.meters 38595 sq.meters 1445

Major Milestones Bias tyre manufacturing facility installed in 1962(Premier Tyres Ltd.) Technical collaboration with M/S UNI ROYAL INC. USA Conversion agreement with M/S APOLLO TYRES LTD in April 1995 Obtained ISO 9001 certification in October 1997 Entered in to a productivity linked labor contract from 28-04-1999 On 17th November, 2003 ATL entered into a strategic alliance with Michelin, France for setting up a joint venture company, Michelin Apollo Tyres Pvt Ltd

10

COMPANY PROFILE
Apollo Tyres Ltd. was incorporated in 1972 in technical collaboration with general tyres International Corporation USA that was owned by m/s Continental, Germany. The corporate head office of the company is located at Gurgaon, near New Delhi and has its registered head office in Kochi. The company has two states of art plants at Perambra in Thrissur, Kerala and Limda in Baroda, Gujarat. Apollo Tyres Ltd. is a raunaq group of company. The raunaq group is also associated with the following companies 1. Bharat Steels and Tubes Ltd. 2. Universal Steel and Alloys Ltd. 3. BST Engineering Services 4. Raunaq International Ltd. 5 Universal Garments Ltd.

The first manufacturing unit of ATL is located in Perambra, Thrissur district of Kerala, commenced commercial production of automotive tyres, tubes and flaps in the year 1977. The company suffered cumulative loss of Rs.27.8 crores in 1977 to 1981. It was in 1982 that Apollo formulated and put into action a series of pragmatic profit generating policies geared towards turn around. A dynamic and prudent new management team under the leadership of chairman and managing director Mr.Onkar S Kanwar took over the company affairs. The objectives were redefined with emphasis on growth through quality products and services, aggressive market penetration and expense containments. Through this excellent effort in the year 1984, ATL wiped out entire accumulated loss and even posted a profit of 57 lakhs. After this there has been no looking back for Apollo. A second plant was established at Limda near Baroda and began production in the year1995, 17th April. The board of industrial and financial reconstruction handed over the Premier Tyres Ltd. to ATL and the products are made in the Apollo brand.

11 ATL also has a tube-manufacturing unit in Pune. In addition the company has the conversion units at TCK, Calcutta, Stallion in Hyderabad, and S.kumar in Indore. Manufacturing locations 1. Perambra, Thrissur, Kerala- truck, LCV and farm tyres 2. Limda, Baroda, Gujarat- truck, radial tyres 3. Pune, Maharashtra- tubes and flaps 4. Kalamasserry, Cochin, Kerala- truck,, LCV, ADV, farm and rear farm tyres ADV- animal driven vehicles LCV- light commercial vehicle Marketing and sales management, planning, raw materials purchases including payment, production planning and dispatches are centralized at New Delhi and the registered office at Cocoon. Today Apollo tyres limited are the fastest growing profitable Tyre Company in India. The company manufactures and sells wide range of tyres, tubes and flaps (both bias and radials). Apollo Tyres Ltd. is the number one truck and passenger tyre manufacturer in India. Apollo Tyres Ltd. is the first Indian Tyre Company to get the prestigious ISO 9001 certification for a tyre manufacturing facility. It is the one of the most outstanding profit making and fastest growing tyre companies in India and the sixth fastest growing in the world with a seven -fold growth in turnover from Rs 190 crores in the last six years the company is the market leader in the tyre segment. The company is also a major manufacturer of light commercial vehicles and tractor tyres. The company produces the top brands like AMAZOR, STAR MXTT and MILESTAR XTT, which spread quantity and quality, which are a reflection of class to serve the necessity of the customer. Due to this amazing growth in the field of tyre industry, the European rubber journal, considered as an international authority, has ranked Apollo tyres as the sixth fastest growing company in the world.

12 COMPANY VISION To be a leader in the tyre industry and a significant global player, providing customer delight and enhancing shareholder value.

To be the preferred supplier of products and services of outstanding value, satisfying the basic needs of the mass market through the adoption of globally acceptable standards and continuous innovation.

To be the preferred employer in the industries we are in, by providing a challenging work environment and adding value to our people through exposure and shared learning.

To be the preferred business partner of all our stake holders, by providing them with exemplary benefits and shared growth.

COMPANY MISSION To provide good quality goods to the present and prospective customers so that company can prosper more. To have continuous availability of products of Apollo so that there shall not be any shortage of goods in the market. To give the customers delight that is giving more than what is expected by the customer. Core Values C- Care for customers R- Respect for associates E - Excellence through teamwork A - Always learning T- Trust mutually E - Ethical practices

13 A BRIEF HISTORY OF PREMIER TYRES LIMITED The Kalamassery unit of Apollo Tyres was earlier Premier Tyres Ltd. Premier Tyres Ltd. belongs to the second-generation tyre industry in India, which was incorporated on 19th October 1959 in Kerala in Kalamassery near Kochi. The foundation stone was laid on 18th January 1960 and was established in collaboration with UNI ROYAL NC. USA. Factory started its commercial production in May 1962 with a production capacity of 30 MT per day and was owned by DESAI GROUP OF COMPANIES, Mumbai. This company was set up as a joint venture between public and private sector. During the initial stages, the company had to face several obstacles. There was severe competition; shortage of raw materials, labor problems, etc. but after this brief period the company performed well in 1970s. this situation changed in 1980s. the company set back from 1985 to 1989 due to financial problems and consequent losses in production and market share. The company had to declare a lockout effective from 3 p.m. on 24-02-1993. Government of Kerala and the board of directors finally implemented BIFR scheme sanctioned under section 19(3) of sick industrial companies (special provision) act, 1985. The sick company was taken over by the m/s Apollo Tyres Ltd. And the company reopened on 19th December 1994 as per the, orders of BIFR on lease for a period of 8 years. According to this agreement Apollo has to give premier, lease money of Rs 45 and a half crores in 8 years. As of now Apollo has paid much of this amount to premier and now only Rs 1 crore and a half crore remains to be given.

14

ORGANIZATION CHART

Head (Kalamasserry Plant) Head Engineering (Co-ordinator)

Head-Commercial

Head-Production

Head-HR &Administration

Manager PPC, IE&Systems

Manager Engineering

Manager Technical

Deputy Manager Quality Assurance

HUMAN RESOURCE DEPARTMENT

15

Group Manager HR Manager - IR

Executive-Security

Executive Time Office

Executive - Safety

Executive - PSL

Executive Trainee

Executive - Reception

Executive - Welfare

16

HUMAN RESOURCE AND ADMINISTRATION DEPARTMENT

The Human Resource and Administration Department is headed by the Head HR & Administration Department. The company employs 1445 workers, which consist of 108 administrative staff, 801 workers, 259 badli, 137contract workers and 140 others. The company works in 3 shifts. The first shift starts from The second shift starts from The third shift starts from General shift starts from 7am to 3pm 3pm to 11pm 11pm to 7am 9am to 5pm

The Department is mainly concerned with: Human Resource functions Health Safety Welfare Personnel functions Security functions Environmental factors Payroll

17

Human Resource Functions The functions of Human Resource include the following: 1. Human Resource Planning Human Resource Planning is directly linked o the long-term business plans of the organization. The Human Resource Planning exercise is conducted annually to assess the manpower requirements of the organization. At the beginning of each calendar year, corporate HR interacts with each department in each unit to collect their manpower requirements in conjunction with the annual projected business plan. The following factors form the basis for the manpower exercise: o Product mix o Optimum equipment capacities o Existing Manpower o Envisaged organization structure o Comparison of actual Vs expected productivity Keeping in mind these factors, each department is expected to make an estimation of the human resource requirement phase wise at each location, along with the profile of people needed and the sources from where they can be obtained. The Man Power plan covers all levels, viz, workmen, staff, officers and managers. The total Man Power requirement is discussed with the President/Vice-president & MD. Annual Recruitment Schedule. Job Specification Workers: The minimum age of workers must be 18yrs and must have a minimum educational qualification of S.S.L.C. Executives: After the form sanction has been given, corporate HR incorporates the Manpower requirement into its

18 o Technical- The technical staff should be a B.Tech Graduate. o Non-technical-The non-technical staff should be CA/ICWA/MBA/MSW etc. Job Description Job description is compiled for all levels and functions in the organization once in two years. Through this process, roles and responsibilities of various function are clearly defined and the delegation of authority is laid down. The key result areas of personnel are linked to the business plans of the organization and its structure. The process aims to bring about transparent accountability at all the levels. 2. Recruitment The recruitment function in the company is mainly done through: Internal sources Internal sources of recruitment includes existing or present workforce of Apollo Tyres. When any vacancy occurs, any one within the organization is promoted, demoted or transferred. References by the employees are also given priority. The existing employees relatives have given priority, if they have relevant qualifications. External Sources External Sources mainly includes campus selection. According to the seniority of the existing employees they are given promotion. 3. Selection Criterion for selection: Workers: The workers should be physically fit and should have specified height and weight. They are selected through interview. After a six months probation period they are confirmed as Leave Reserves. Technical and Non-Technical staff: For technical and non-technical staff the selection is done through Written Test, Group Discussion and Personal Interview. Consistency in academic performance is a must. After selection they are appointed as Executive Trainers and after a one-year training (with stipend) they are absorbed as officers.

19

4. Training and Development Induction Training New employees will be briefed about company policies, rules and regulations, work responsibilities etc within one week of their joining. The responsibility for imparting the induction training is with the HR department. An induction plan will be given to all new employees and documentary evidence shall be maintained in from with the HR department. On the Job Training (On-going training) On the job training is given to the regular employees of the company. The respective Heads 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 HR department. Documentary Evidence shall be maintained for management category personnel and for workmen and staff. Training needs identification by various departments are collected and consolidated into Annual Training Plan. The training plan will cover only those training needs, which cannot be not at the workplace. On the job training to employees shall be the responsibility of the Head of each department. With the help of Annual Training Plan, batches are formed and individuals who are to undergo training are identified. Employees deputed for training should give a feed back about the programme in the prescribed form. The external persons engaged as faculty for companys the HR department prior to the commencement of the programme should approve training programme. HR department shall maintain details of training undergone by each employee in Training Card.

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5. Performance Appraisal System The performance appraisal system is done to Effect promotion based on competence and performance For improving the performance of existing managers To assess the training and developments needs of employees To enhance the future performance of the organization. The company is following the principles of MBO for performance appraisal. The appraisal is carried out using a form used for officers. The appraisal is on an annual basis and the cycle repeats every financial year (1 st April to 31st March). All permanent employees are eligible for this review. There are two types of Employee Development Review forms used in the company. One is for the junior officers and above category and the other is for the staff. The Employee Development Review form consists of : Organizational goals Critical attributes (planning, organizing, analyzing skills, job output, achievement orientation, decision making etc)d Assessment and counseling needs Job rotation and performance. The Employee Development review form is rated as: Outstanding Good Average

21 Below Average The rating is done by the employee himself, an appraiser and again by a reviewer. The development review discussion is done between these three. The reviewer gives the highest weightage for the rating and his decision is the final one. 6. Salary Administration Salary administration is an important function HR department. document covering all terms of his appointment in the organization. The day an employee joins the organization, the HR department completes a payroll Data Sheet for his along with the rest of his joining formalities. This data sheet serves as advice to the account department regarding some basic details of the new incumbents including his date of joining. At the end of every month, the concerned HR department sends a consolidated statement salary advance, giving details of new appointment, separations, transfers etc to the accounts department, on the basis of which salary is disbursed. Wage Period: o Workmen o Staff 29th to 28th of the subsequent month 23rd to 22nd of the subsequent month 01st to 31st of the month The salary

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

o Supervisors and abovePersonnel Functions The personnel functions include: 1. Time Office Preparation of muster roll

Issue of punching card and monitoring the punching system. Maintenance of leave-records Calculations of rate of absenteeism Over-time calculation

22 Preparation of Management Information System 2. Safety Apollo Tyres Limited is a Major Hazardous Industry mainly because of the storage of naphtha, LPG etc. The company has a well-defined safety policy. Company has a full-fledged fire hydrant system within and outside the factory building. There are 28 trained fire fighters among workers who are always available (at least 11 per shift) and they work under the safety officer. Fire-alarm points are provided inside every section in the factory. Automaticsprinkler system is provided at different locations. Other safety aspects include: Safety committee Safety recommendation Accident reporting Onsite emergency plan Color coding for machines in the plant Machine guarding and proper fencing of machinery is ensured Apollo Tyres Limited, Cochin has bagged the 2001 National Safety Council Award. 3. Security The safety functions include the following: Personnel security Equipment security Document security Security of property Discipline maintenance Deployment of goods Security against theft

23 General intelligence work Liaison with police Allotment of out pass and movement pass for workers Allotment of visitors pass They maintain three gateposts, namely; 1. Time office gate 2. Main gate 3. East gate 4. Welfare Apollo Tyres Limited practices much useful labor welfare schemes, for the benefits of its employees. All the employees have benefited very well by the schemes followed by the organization. Chief welfare facilities includes: Transportation Providing two sets of uniforms to all the employees (including stitching allowances) Allowances like wasting allowance, conveyance allowance, education allowances, shift allowance, footwear allowance etc. The workers who are engaged in the second shift get an additional of Rs.3 as shift allowance and in the third shift get Rs.7. Welfare department looks after the housekeeping aspects of the company. Also looks after the welfare needs of contract workers, including canteen, loading and unloading workers etc. WELFARE MEASURES 1. Welfare Fund Constitution The fund is constituted as a Trust Ay the name of Premier Tyres Employees Welfare Trust. The committee is appointed for the administration of the fund with seven including the Chairman. The management nominates the Chairman and

24 two members and the remaining four members shall be elected from the employees. The tenure of the office of the committee shall normally be a period of two years commencing from January 1st and the members are eligible for election or re-nomination. but officers are excluded from this scheme. Contribution All the employees contribute Rs.15 per month towards the fund and the management contributes Rs.75 per month. Purposes for which the fund is utilized are: When an employee (member) retires from the companys service on superannuating or opts or resigns or dies while in service he/she or his/her nominees shall be paid an ex-gratia amount from the fund. When an employee is promoted as officer, he/she shall be paid an ex-gratia amount from the fund. Education awards: The committee may give award in each year two the members children who secure highest marks din the examinations such as SSLC, Higher Secondary, Plus-two etc. In case of illness the employee who are covered by E.S.I. scheme shall not be entitled to the benefits under this scheme. However if the committee is satisfied that a member deserves specialized treatment, the cost of such treatment will be reimbursed to the member from the fund on produce of a medical certificate from the concerned medical officer and medicine bills verified by him. The committee shall have the power to advance any amount in deserving cases for such specialized treatment. The bills when produced before the committee shall be scrutinized and if found genuine, the payment shall be made. The committee shall give additional benefits to the employees suffering from diseases requiring prolonged treatment like TB, Cancer, Leprosy, Heart diseases etc. 2. Canteen Facility A canteen is provided within the factory premises, which is run on a contract basis. There are 48 workers who are employed in the canteen, They are entitled to the wages and other allowances decided by the management. All permanent workers in the company are eligible to become the members of this scheme,

25 The canteen works on all seven days and 24 hours a day. 3. Transportation Facility The company operates bus service for the benefit of the employees working in the 2nd and 3rd shift. The company operates a bus service Thoppumpady and to Paravoor. 4. Insurance Scheme Premier Tyres Employees Medical Benefit Scheme A committee of 8 members, consisting representative from employees and management manages the scheme. The executive welfare of the company is the secretary of the committee. The permanent workers and staff of the company who are not covered under ESI scheme are covered under this scheme. A monthly contribution of Rs.32 from employees and Rs.75 from the management is the source of this fund. Family members consist of father, mother, spouse and children are covered under this scheme. Employee should report to the medical section with seven days of starting treatment and obtain claim form, should be returned with 3 months. Mediclaim This is an Insurance Medical Scheme of m/s New India Assurance Co. Ltd. Employees who have opted for mediclaim are eligible for medical expenses incurred in connection with inpatient treatment. The insured employee, spouse and children are eligible to cover under this scheme. A premium of Rs. 167 per head is payable to become member. For inpatient treatment, a maximum of Rs. 15000 can be reimbursed under this scheme. Group Personal Accident Policy As per this policy, if any person meets with and accident inside the factory premises, the company shall refund the whole of the medical expenses incurred by the person including the loss of earnings suffered by him. This scheme is also a medical

26 scheme of m/s New India Assurance Company Ltd. All the permanent employees, not covered under the ESI scheme are members of this scheme. Group Savings Linked Insurance Scheme As per this scheme, every employee contributes a certain amount during his period of service so that at the time of retirement, a lump sum is made to him or her. 5. First Aid Center Here the services of the company medical officers are available, which is as per the statutory requirement. He usually attends to small cuts, burns, pains etc and if workers need further medical attention, they are referred to nearby hospitals. Eleven trained first aiders function under him and they will be available in all the three shifts. INDUSTRIAL RELATION The company has a standing order It has a well-defined grievance procedure for handling grievance at the shop floor level. It applies to employees in the unionized category. Methods If a workman has any grievance arising out of his employment to be redressed he must place the same before his immediate superior as soon as possible. If no satisfactory answer is received or no reply within 48 hours of the presentation of the complaint is received, he must institute the formal grievance procedure as follows: o Present a written statement to the department head through the proper channel. The department head shall investigate the matter and give a reply in writing within 3days. o If the worker is not satisfied with the decision of the Head of the Department or fails to receive an answer within the stipulated time, he may submit his grievance to the Chief Executive. o The Chief Executive will arrange for an investigation by the officer of Personnel Office. After receiving his report the Chief Executive will give his reply as far as

27 possible within seven days from the time the case is presented to him, and the Chief Executive shall consider his decision unless the above procedure has been carried out. No grievance that has not been presented within a week of its occurrence will be considered. o Matters for collective bargaining that affect group of individuals will be taken up by Trade Unions. The representation of the Trade Unions will be replied or grievance redressed and intimated to the union by the Personnel Department either verbally or in writing depending on the cases. Register for recording grievance redressed of employees is to be maintained by respective department heads. Files containing representation made by unions and the reply given should be recorded and maintained by the personnel department. Trade Unions Premier Tyres Workers Union (INTUC) Premier Tyres Employees Union (CITU) Premier Tyres Workers Association (Independent)

PRODUCTION PLANNING CONTROL & ENGINEERING DEPARTMENT

28

Group Manager

Executive Production Planning

Executive Systems

Executive IE

Executive (4nos)

Executive (3 nos)

Executive

29

PRODUCTION PLANNING AND CONTROL DEPARTMENT The production planning and control department plans and controls the production process of the plant. The planning department plans the production schedule for a certain time and gives it to various departments. The planning is done based on the monthly production ticket given from corporate office. The corporate office sends the production tickets for each type of tyre for a month. The department divides the monthly production ticket to daily production schedule for each department and distributes it. Duties and responsibilities of Section in charge Fixing monthly production ticket Meeting production target Scheduling of machines Developing subordinates Preparation of raw materials requirements based on monthly production ticket Communicating organizational goals down the line. Duties and responsibilities of Shift in charge Prepares, adjust and issues schedules of different operations based on programme, inventories, progress of work and specifications. Follow up progress of work in all section, reports relevant details and assists to maintain steady progress of work. Takes physical inventories of all semi-finished goods and raw materials.

30 Maintain records of theoretical and physical inventories. Reports shortages, rejections and delays in operation and take corrective action.d Collect and combines production data from various sections and prepares various reports. Keeps records of non-moving materials, unidentified materials, salvaged materials and scrap generated, obtain disposal instructions and reports follow up action. Assist to clean up materials. Ensures that no material is left over when size change occurs. INDUSTRIAL ENGINEERING Industrial Engineering is concerned with the design, implementation and installation of integrated system of men, material and equipments. It is concerned with the work related to the welfare of the workers. The function of the department is to design and estimate the pay scale for each and every laborer in the industry. Function of the Department Conduct work-studies, improvement studies in various equipment and fixation of norms. Capacity calculation in various equipment from time to time consequent to various changes. zones. Planning and assessment of manpower requirement in various departments periodically Studying plant layout and material handling systems and suggesting for improvements. Explore the possibilities of capacity expansion and prepare the project reports. Negotiations with unions regarding various issues like incentive schemes, productivity, and expansion and labor issues. Prepare budgetary planning for capital and cash flow requirement. Design, implementation and follow-up of incentive schemes in various

31 Prepare documents for long-term settlement/bonus settlement etc and represent the management in the meetings with unions/labor department. Visit other industries for getting information regarding long term settlements, methods, practices and other new developments. Conduct daily audit on manpower, productivity, lost time, scrap details, absenteeism etc. Total productive maintenance.

32 PRODUCTION DEPARTMENT

Divisional Head

Shift Superintendent Assistant Manager Zone I Manager Zone II

Zone I Assistant Manager Executive DIP Unit Executive Division Manager

Executive Executive Executive Division (Banbury) Division II II (Tyre (Stock Building) Preparation)

Executive Executive Division III Executive Division III (Calendar (Curing/Air & Tubes) bag)

33

Zone II

Executive Division II (Tyre Building)

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PRODUCTION DEPARTMENT
Production department in Apollo Tyres Ltd is divided into two zones. Zone 1 consists of Banbury, extruders, and ca1 dip. Zone-2 consists of stock preparation and tyre building. Production department is divided in to 3 shifts for workmen. The total plant capacity is 80 mtl day. Every month end production intends are obtained from marketing department of Apollo Tyres Ltd from Delhi stating how much tyres are to be produced next month. Based on that tyres are produced. Procedure for Organizing Production 1. PP Section prepares shift wise schedules. 2. Production receives shift wise schedule from PP at the beginning of the shift. 3. Areas where PP is not issuing shift wise schedule, the same will be decided by production section offices, depending the requirement of consuming section. 4. Depending on the availability of manpower, machine and materials, the production offices, in oral consultation with PP, shift Superintendents and division head modifies the schedule whenever required. 5. For division I, at the beginning of the shift, the schedule is issued by P.P.C for Banbury, Calendar, Recoat Calendar and extruder. For Banbury PPC schedule may be modified by the concerned offices considering the processes limitation machine condition and availability of crew. 6. In stock preparation P.P.C issues the schedule are issues the schedule for HBC, VBC and bead coiling, these schedules are issue by the officer to the concerned section. For lamination, band building. Bead preparation and fabric slitter, the concerned section officer decides the schedule depending on the requirement of the consuming section. 7. In type building, the P.P.C. issues priority schedules for all the 3 shifts. The concerned officer deploys the workman depending upon the availability of men, machine, and material. 8. For tyre using section, the moulds are positioned as per instruction from P.P.C. The production is carried out depending up on the availability of green tyres.

35 9. For F.P unit, PP section issues the schedule on the previous day of production. This schedule is followed by the production new and if there is any change, it be intimated to PP section. 10. At the shift end, the Production section officer records all production details,time details, crew attendance, machinery condition, quality points and communication in the logbook. 11. The shift officer forwards a consolidated report of the whole section to division head or superintendent. Manufacturing Process Compound mixing Dipping Fabric calendaring Extrusion (tread/sidewalls/filler) Stock preparation Bead preparation Tyre building Tyre curing Airbag/bladder curing

Banbury - Process Description Approved raw materials come to the first floor of the Banbury from raw material stores chemicals are pre-compounded before mixing in Banbury. Carbon bags available in bags of 25-kg net weight. Oil compounding is done by oil changing system. Polymers issued to first floor are given to the bale cuter for cutting before weighing. They are used either for mastication or mastic batch mixing. Master batches are used for the final batch mixing; continuous sheets of master batches are fed to the loader and weighed in the conveyor balance before mixing in Banbury. Follow FIFO principle for all materials. The complete routes of r/m are shown in flow chart. Banbury processes

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1. Bale cutting 2. Chemical compounding 3. Rubber and oil compounding 4. Carbon compounding 5. Mixing 6. Batch off and cooling 7. Stacking 8. Banbury cleaning 9. Refining of compounds Extrusion It is the process by which the rubber compound is given a definite continuous shape such as the tread and sidewall. The rubber compound of suitable thickness is prepared by using small 2- roll calendar. It is applied to the bottom side of the tread and is called as the tread cushion. The continues profile is then cooled and cut to required length, which is used in the assembling of the tyre at the tyre building stage. Just changing the dies makes the different treads and sidewalls. Fabric Dipping The raw nylon fabric, which forms the structural backbone of the tyre, has very adhesion to the rubber compound and has poor dimensional stability. During the dipping process, the fabric is stretched which increases the dimensional stability. For heating purpose LPG is burned in a chamber. An adhesive coating is also applied to the surface of the fabric to improve adhesion. The coating is given by dipping the stretched fabric. In a chemical mixture of caustic soda, formaldehyde, water, and resorcinol. The later is a mixture of ammonia latex and water. Fabric Calendaring Fabric calendaring is the process where in dipped tyre cord fabrics and square woven chafes fabrics are coated in both sides. With rubber compounds by skin operation. Machines used for this purpose are 3-roll calendar and various accessories mentioned in the flow chart.

37 The required rubber compound is properly warmed in break down/blender and food mills and fed the calendar roll nips to form & smooth film on roll no.2 (middle roll). To achieve a smooth film and to obtain smooth calendaring, the calendar rolls are set at desired temperature. Once the film formation occurs on the middle roller, the dipped fabric is passed through the nip between the middle roll and bottom roll to get the rubber compound coated to one side of the fabric. The roll temperature, nip setting, pre and post calendar tensions are properly mentioned to achieve specified gauge and balance of the calendered fabric. The width and cord distribution of the calendered fabric is monitored. The one side coated fabric coming out of the calendar is cooled by passing over the cooling drums plant water temperature is maintained as per specification. The excess gum on both edges of fabric coming out of the calendar is trained off with training knives. This looked fabric is wound over the shell along with the liner. This one-coated fabric is taken to the left off to calendar the other side of the fabric. The fabric after coating both sides is cooled by passing over the cooling drums and wound over the metallic skills along with the polypropylene multi filament liner. These rolls are properly identified using identification tag and are racked on storage racks. The liners after the rolls are cut, are properly wound on metallic shells and then only used for further processing. Squeegee Preparation In addition to fabric calendaring, Squeegee preparation also can be done in the 3roll calendar fabric as and when required. The required compound after proper warning up is fed in to the nip of the calendar rolls 1 and 2 and allowed to form a smooth band on roll 3. This band is then cut and wound on liner with the help of a wind, up stand placed at the let off side of the calendar. The width and gauge of the squeegee is adjusted according to specification. The completed rolls are then identified using identification tag and transferred to storage area.

38 Preparation of squeegee sidewall and bead strips. Squeegee, the sidewalls and bead trips are calendered in the 3. roll Recoat calendar. The required compound after proper warming up is fed to feed mill and then in to the nip of the rolls 1 and 2 and the stock is allowed to band on roll 2 of Recoat calendar. This band is then cut and is allowed to pass below roil 3 to he conveyor. The required width of the product is obtained by setting the knife at the back of the calendar and the gauge is adjusted by adjusting the nip of the calendar. The sidewall and bead strips are calendered in pairs. Proper temperature is maintained for rolls 1 and 2 using steam and for the bottom roll cooling water is used for cooling. Squeegee is wound to the liner in the first conveyor and is identified using identification tag and transferred to the storage area. Sidewall is cooled by passing through cooling water in the cooling conveyor. After blurring off the water, the sidewall is rolled to the liner in the booking conveyor. It is identified using identification tag and transferred to the storage area bead strip are passed though soap solution tank. From there it is fed to a standing conveyor after passing through a set of rollers. Strips are collected in bins and transferred to the storage area after proper it using identification tags. Treads and Sidewalls The approved and specified compounds are broken down in the break down mill and are then passed to the feed mill. From the feed mill the compound is then fed to the extruder at specified strip width and gauge. From the calendar, he compound comes out through the die as a continuous extrudate in the specified contour. Then the take away conveyor carries the tread. After that the tread passes through a shrinkage conveyor and a linear scale, which serves as a guideline for the operator to get the correct weight at the booking. The shrinkage meter is allowed to roll over the tread. Specified polyethylene sheet is applied to the bottom side of the tread before it enters the linear bottom by a set of pressure discs. The tread is given code printing for proper identification. The tread is then cooled b passing it through the cooling conveyors filled with chilled water sprays. After cooling treads are cut to specified length at the specified skive angle. Then the treads are measured for dimensions and weight. The treads conforming to the specification are booked in leaf trucks.

39 The procedure for extrusion of the sidewall is similar to that of tread extrusion with the following difference. Sidewalls are extruded as a pair except for higher width sidewall, which is extruded in single and identified, with identification tags those conforming to specifications. Stock Preparation 1. Bias cutter operation Bias cutting is the process where the calendered fabric is cut to specified width and angle and spliced together at ends to form a continuous layer. They are then wound in liners. Wider plies, passenger plies and break plies are cut in horizontal bias. Passenger and break plies are also cut in vertical bias and also chafer and flip. 2. Lamination Lamination is the process where cut plies are applied with drum squeegee of specified gauge and width. 3. Breaker lay up Breaker lay up is the process where breaker plies are assembled. 4. Chafer lay-up Chafer lay-up is the process where the chafer cut plies is spliced to form a continuous layer. 5. Flipper layer Flipper cut plies are spliced to form a continuous layer. 6. Linear rewinding Linear rewinding is the process where empty liners collected from different sections are rewound properly in the rewinding machine for further usage.

40 Band building Where different plies and squeegees are assembled in the form of a band for using in band type tyre building machines. Bead Building Bead room activities consists of four operators. 1. Bead coiling/winding Bead coiling/winding where the bead wires are formed in to flap layer having specified number of wires, then insulated with rubber compounds and then wound to the specified diameter and number of terms. 2. Bead painting Bead painting is the process where coiled beads are printed. 3. Bead apexing The apex is extruded through a die fixed on the head of an extruded the base of the apex is applied and consolidated over the outer circumference of the coiled bead passing through a disc roller of the apexing machine. 4. Bead flipping Flipper is a calendered fabric of specified width and angle. This is wrapped around the apexed bead using the flipping machine. Tyre building In tyre building, building components are assembled on a drum of specified width for the respective tyre as per specification to a get a green tyre. In tyre building, the following components are used. 1. Plies with or without squeegee 2. Bead with or without appearing/flipping 3. Breakers 4. Chafer 5. Tread 6. Sidewall

41 Tyre curing OK green tyres shall be painted inside and outside of the tyre, serial no issued to operators in each shift and issue details are entered in the register. The green tyre in the storage area will be audited every monthly and the details of the same will be entered in the format. As per finding in the audit necessary actions will be initiated for following agency of green tyres. Any over aged green tyres will be disposed off as per production procedure for control of non conforming products prepared tyres shall be issued for the specified time in curing presses. After the curing cycle is completed the nylon tyres shall be subjected to post inflation for the specified time Air bag/bladder curing Bladder and air bag consists of following operations 1. Bladder slug preparation Where the bladder slugs are cut to skived and spliced and pores heated before they are used. 2. Bladder curing Where the prepared slug is cured in the warmed up bladder mould, for the Specified cure time. 3. Air bag building and curing In building operation, the extruded green airbags are cut, skived and bend to shape and spliced as per the specification of the required bag size. In curing operation, the build air bags after the aging time is cured in the respective moulds in the curing presses for the specified curing time. 4. Shaping tube building & curing In this operation, shaping tube used for shaping green air bags is built and cured.

42 Procedure for final finish operations Trimming finished Tyres Inspection of finished Tyres Buffing of defective tyres Repair of defective tyres. Re serialing of repaired tyres Ware housing of finished tyres Scraping of finished tyres

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TECHNICAL DEPARTMENT
Technical department is a virtual production department as it involves with every aspect of tyre production. The responsibilities of this department include: To inspect and correct, if necessary all production activities going in the plant To ensure the properties of in process products during various processes. To stop production if there is any unconformity found during analysis. To make appropriate changes in production process and specification if necessary. To manufacture test tyres. Technical department is divided into: Compounding department Tyre engineering Compounding department holds all the specification concerned with compounding and ensures all processes as per specification. Tyre engineering department holds the specification concerned with building and curing. They can make any change in the specification as required. They conduct various tests on the final production.

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Quality Assurance Department

Group Manager

Associate Manager (Process & finished product Audit)

Executive (Lab in charge)

Executive (8 nos)

Shift in charge (6 nos)

Executive (Finished product bought out)

Executive- Statistics

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QUALITY ASSURANCE DEPARTMENT

The function of Quality Assurance Department is to inspect all the processes in the plant and ensure that the in process products moving from one division to another is confirming to the specification, so that defective items will not transferred to next process, so that the wastage of material, money, time etc can be prevented. All the raw materials from raw material stores is issued for production only after getting clearance from Quality Assurance. Quality Assurance have the authority to hold the in process product, if any unconformity is obtained in tests. Various tests done in Quality Assurance department are random rheostats test, specific gravity test, compound tensile test, viscosity test, cord per test etc. The Importance of Quality in the tyre manufacturing system at Apollo Quality is seen as an approach to improve the effectiveness and flexibility of an organization. The Apollo only through the Teamwork possible achieves this participation and communication are the key words in the process of Quality. To maintain good Quality product the Quality Assurance department plays an important role. The main activities are: Raw material check A. Process 1. Release test (Lab) 2. Non release test 3. Plant Quality Rating 4. Held up Materials 5. Green Tyre defects and scrap 6. Cured Tyre defects and scrap

46 C. Product 1. Cut Tyre rating 2. Finished Tyre Audit 3. Reliability tests 4. Tube and flap Audit D. Quality Engineering 1. Machine Capability Quality System Companys quality management system comprises the totality of the quality related functions of all departments that are needed to achieve the stated policies and objectives and to acquire the confidence of the customers and is structures with emphasis on prevention and improvement orientation. Top management and Management Representative both at corporate and unit level, with the involvement of all heads of department are responsible to develop, implement and maintain the quality system that are required to assure the desired quality of product and service. The quality documentation follows a 5-tier setup, the quality manual being the apex document. The quality manual is the main document stating the policies and principles of the quality system in use. Next level is system procedures issued by corporate M.R., which describes broad guidelines to units for ensuring uniformity in quality system. Other supporting levels of documents that are issued from the units include departmental procedures, work instructions/process specification/visual control systems and records, each level becoming progressively more detailed.

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COMMERCIAL DEPARTMENT
Commercial department is mainly concerned with financial activities and the supply chain function. The financial functions are payroll, general account, costing etc and the purchasing of raw materials and warehouse constitutes the supply chain functions. All the functions are headed through group managers. Purchasing of spare parts, production consumables and general engineering items are obtained through the purchase request to the purchase department. The raw material stores sends the purchase requisition to the purchase department. The re-order level for each item is determined and whenever it reaches this level the requisition will be send to the purchase department. The raw materials stores releases the materials on the request from the production planning department.

FINANCE DEPARTMENT
Capital Structure Capital structure of the Apollo Tyres Limited consisted of share capital, debentures and short-term loans. The authorized share capital of Apollo Tyres is

48 4,80,00,000, equity share capital of Rs.10 each and 2,00,000 preference share of Rs.100 each. The issued, subscribed and paid up equity capital of the company is Rs.38.33 crores. The debenture and long term loans amounts to Rs. 262.66 crores. as on 31-mar-10 (Crores) Authorized share capital: 4,80,00,000 equity share capital of Rs.10 2,00,000 preference share of Rs.100 48.00 2.00 50.00 48.00 2.00 50.00 as on 31-mar-09 (Crores)

Issued, subscribed and paid up 383,37,977(36315477) Equity share capital of Rs.10 each Add: Forfeited shares 38.33 .01 38.34 36.31 .01 36.32

49 Financial Performance of Apollo Tyres Limited during the year 2010-11. as on 31-mar-10 (Crores) Sales and other income Profit before depreciation and tax Less: Depreciation Provision for tax Current Provision for tax Deferred Profit after tax before exceptional items Exceptional items: Additional Excise duty written back Provision for diminution in the value of investments Net Profit Add: Debenture redemption reserve written back Provision for dividend on share written back Surplus brought forward from previous year 7.53 1.87 90.56 23.63 -46.21 --70.42 (40.01) 23.39 120.02 2320.34 148.95 43.72 20.40 14.41 70.42 as on 31-mar-11 (Crores) 2027.01 183.27 33.36 47.07 (.56) 103.40

Profit available for appropriation

170.38

189.86

50 The financial year ended 31st March 2004 saw sales from operation rise to an all time high of Rs.2314.31crore as against Rs.2025.62crore during the previous year, registering a growth of 14.25%. Net profit after providing for interest, depreciation for current tax amounted to Rs.70.42 crores, as against Rs.120.02 cores during the previous year. The year also saw an increase in raw material cost, which could not be fully absorbed by the increase in selling prices. By achieving higher production, enhanced operating efficiencies, better working capital management, aggressive marketing policies backed by a highly motivated sales team and overall cost reduction measures, the company is able to maintain its performance

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CONCLUSION
The aim of the performance appraisal system is to inform the employees about the quality of his or her performance. At Appolo Tyres (P) Ltd., it is encouraging that the overall attitude towards appraisal systems is positive from both employees and management. The functioning of the performance appraisal system is found to be effective at this organization. This can be attributed to the efforts of the organization to create awareness and the periodical conduct of appraisal. The employees have fairly good awareness and perceive the prevailing appraisal system to be effective. Realizing the significance of a flawless appraisal system, to further strengthen the present system, appraiser appraise joint appraisal, appraisal interview, open appraisal, periodical evaluation of appraisal systems reviewing appraisals, etc are suggested. One of the best ways to appreciate the purpose of the performance appraisal is to look at it from the different viewpoints of the main stakeholders: the employees and the organization.

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BIBLIOGRAPHY

Personal Management Edwin B. Flippo, M.C. Graw Hill Company, 2 nd Edition, 2010. Human Resource Management Shashi K. Gupta, 1st Edition, 1998. Personal Management and Industry Relation Prof.P.C. Tripathi, All India Publishers, 5th Edition, 2004. Management of Human Resource Lallan Prasad, Sterling Publishers Private Limited, 2nd Edition, 2008.

WEBSITES www.google.com www.apollotyres.com