CONTENT Acknowledgement Executive summary 1. Overview of the company 1.1 Company profile 1.2 History 1.

3 Core value 1.4 Objectives 1.5 Vision and mission 1.6 Introduction to department 1.7 Administrative structure 1.8 SWOT analysis 1.9 Features of the company 1.10Aim of the study 2. Plan of the training 2.1 Aim of the training 2.2 Selecting the company and in which identifying the HR department 2.3 Finalizing the area of work 2.4 Identifying the top to bottom level employees 2.5 Planning the weekly training programme 3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 Performance Appraisal and Retention Strategies Meaning and definition of performance appraisal Objectives of performance appraisal Appraisal process Methods/techniques of appraisal Advantages of performance appraisal Relationship of performance appraisal and job analysis Challenges of performance appraisal Meaning of retention strategies

3.9 Purpose of retention strategies 3.10Components of retention strategies 3.11Reasons for making strategies 3.12Benefits of retention strategies 2. Execution of performance appraisal and retention strategies in the organization 3. Methodology 5.1 Data analysis & Findings 4. Learning from this training 5. Suggestion for this kind of training 6. Conclusion 7. Appendixes 10.1 Permission letter 10.2 Conformation letter 10.3 Appreciation certificate 10.4 Newsletter 10.5 Weekly training programme 10.6 List of employees 10.7 Questionnaire

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COMMUNITY As a corporate, we believe in investing in initiatives which have the ability to create positive impacts on the lives of its stakeholders, communities and partners in the countries we work in. MBA (Human Resources) Jean Thomas A PROJECT REPORT ON PERFORMANCE APPRAISAL EFFECTIVENESS ANALYSIS AT CHAMPION VOYAGER DESIGNERS PVT LTD SUBMITTED TO THE UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF MASTERS IN BUSINESS ADMINISTRATION BY JEAN THOMAS MBA II BANSILAL RASMNATH AGARWAL CHARITABLE TRUST S (BRACT) VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE (2005- 2006)Performance Appraisal Effectiveness MBA (Human Resources) 2

ACKNOWLEDGEMENTS Preparing a project of this nature is an arduous task and I was fortunate enough to get support f rom a large number of people to whom I shall always remain grateful. I would like to express my gratitude to Champion Voyager Designers Pvt Ltd for allowing me to undertake this project. I would like to take this opportunity to thank Raj Utpal for providing me with an opportunity to work for Champion Voyager Designers Pvt Ltd. I am also desirous of mentioning my profound indebtedness to Dr Vandana Gote, Faculty member, Vishwakarma Institute of Management, for the valuable advice, guidance, precious time and support she offered. I would be failing in my duty if I do not acknowledge my gratitude to Dr S. Joshi, Director, Vishwakarma Institute of Management, who motivated me a lot in carrying out this project. Last but not the least, I would also like to thank all the respondents for giving me their precious time, relevant information and advice without which I would not be able to complete this project.Performance Appraisal Effectiveness MBA (Human Resources) 3 CONTENTS Section Page No. Company Profile . ..4 Importance and Purpose ...12 Performance Structure in the Organization 16

Research Study 27 - 32 o Research Methodology o Data Collection o Tools of Data Collection o Technique of Data Collection Data Analysis . 33 - 49 Limitations ...50 Findings and conclusions 52 Annex ure ..54Performance Appraisal Effectiveness MBA (Human Resources) 4Performance Appraisal Effectiveness MBA (Human Resources) 5 Champion Voyager Designers Pvt Ltd Champion Voyager Designers Pvt Ltd is the leading pioneer in the large-scale outsourcing of document creation services, with more than 80 years of graphics history. It is also the world s largest and most experienced provider of artwork and embroidery digitizing. They cater to more than 2,000 clients worldwide with output-ready digital files for all types of printing, computer-generated communications, stitched apparel and product imprinting and work 24 hours / 7 days a week / 365 days a year. Retail and quick printers, commercial printers, apparel and promotional products suppliers/distributors, advertising agencies and corporations rely on Champion Voyager Designers Pvt Ltd for customized digital

graphics solutions that help them generate higher profits, increase productivity and enhance competitive differentiation, without the ongoing costs of equipment, labor, or technology. Production Facility Headquartered in Elgin, Illinois, Champion Voyager Designers Pvt Ltd maintains a large Production Center in Pune, India, staffed by 350 highly skilled employees and operating 24/7/365. Quality Quality is the top priority at this facility. That s why they apply Six Sigma processes and detailed quality control procedures for every client and every project. Training Because they understand how important quality and accuracy are to the customer s business, Champion Voyager Designers Pvt Ltd has created a detailed, comprehensive Performance Appraisal Effectiveness MBA (Human Resources) 6 approach to training their document creation, artwork and digitizing specialists. Training is ongoing with periodic reassessments, based on the customer s specific needs and Affinity Express commitment to

continuous improvement. Technology They offer a web-based order entry and management system for maximum convenience and speed. Champion Voyager Designers Pvt Ltd supports PC and Mac platforms and is certified in over 30 software packages to meet the needs of clients. Confidentiality and Security Champion Voyager Designers Pvt Ltd takes great care to ensure uptime and protect the clients data through an elaborate security system and set of backup procedures both onand off-site. Support Clients have a direct link to customer support 24/7/365 and can get fast answers on the status of their projects, revisions, quotes and other questions. For any issues that require escalation, the Account Services team is available Monday through Friday, from 8:00 A.M. to 6:00 P.M. Central Standard Time. Graphic solutions Champion Voyager Designers Pvt Ltd offers three categories of graphics services and the function is the same for each: they format the graphics, photos and written copy that the customers submit and produce digital, production-ready files. These files are then used by

the customer for printing, posting to web sites, presentations, embroidery on apparel or screen-printing on ad specialty items.Performance Appraisal Effectiveness MBA (Human Resources) 7 Document Creation Taking hard or soft copy input and returning digital files for production a term originated by Champion Voyager Designers Pvt Ltd that is also known as desktop publishing, digital pre-press or preflighting. Artwork Creation and Layout Embroidery Digitizing Translating artwork into a series of commands to be read by an embroidery machine for output on various items of apparel, bags, caps, etc.Performance Appraisal Effectiveness MBA (Human Resources) 8 The world-class, cost-effective document creation, artwork and digitizing services of Champion Voyager Designers Pvt Ltd helps the customer to generate more revenue, enhance profitability, improve productivity and increase focus on their core business. Affinity Express customized solutions provide the specific capacity and services need by the customer and when they need

them. That s why Champion Voyager Designers Pvt Ltd has a proven track record of success with some of the largest, most respected companies in the world. In just 1 month... Over 350 design and digitizing professionals at Champion Voyager Designers Pvt Ltd create more than 35,000 output-ready digital files using 30-plus software programs on a network with a 99.99% uptime guarantee and backed by 24/7/365 support. They deliver in 24 hours or less and reward clients with as much as 50% in cost savings Outsourced graphics services Artwork creation and layout Embroidery digitizing Document creation Professional services System integration Custom website creation (for order management) Consulting Project types Announcements Booklets Brochures Business Cards NewslettersPerformance Appraisal Effectiveness MBA (Human Resources) 9 Postcards Presentations Programs

Certificates Resumes Embroidery Digitizing Sales Sheets/Flyers Envelopes Signs/Banners Forms Tables, Charts and Graphs Invitations Table Tents Letterhead Tabs Logos Tickets Mailing Labels Vector Art Manuals Word Processing Menus Software Proficiencies Champion Voyager Designers Pvt Ltd designers are certified in more than 30 software packages, including: Adobe Acrobat Macromedia Dreamweaver Adobe GoLivePerformance Appraisal Effectiveness MBA (Human Resources) 10 Macromedia Freehand Adobe Illustrator Microsoft Excel Adobe InDesign Microsoft PowerPoint Adobe PageMaker Microsoft Publisher Adobe Photoshop Microsoft Word

AutoCAD Microsoft Visio CorelDRAW Punto Gunold Pulse HTML QuarkXPress Wilcom Partners Apparel and Promotional Products Suppliers/Distributors Champion Voyager Designers Pvt Ltd provides a streamlined, cost-effective process and reliable partnership to enable better focus on selling and supporting customers, as well as higher profit margins. Printers In the highly competitive printing industry, outsourcing document creation to Champion Voyager Designers Pvt Ltd lets clients drive print revenue, lower fixed costs, improve margins, deploy internal teams on sales and support and leverage the revenue opportunity offered by ancillary services.Performance Appraisal Effectiveness MBA (Human Resources) 11 Advertising Agencies As clients demand lower costs, greater value and faster turn times from their agencies, Champion Voyager Designers Pvt Ltd

provides a means to better apply highly-talented and costly internal resources to creative projects and client interaction, while handing off straightforward execution and excess demand resulting in higher profit margins. Corporations Outsourcing (either off-site or a combination of on- and off-site) to Champion Voyager Designers Pvt Ltd lets internal personnel to focus on their core business, exercise greater control over branding and improve support for internal departments and clients.Performance Appraisal Effectiveness MBA (Human Resources) 12Performance Appraisal Effectiveness MBA (Human Resources) 13 Introduction to Performance Appraisal Once the employee has been selected, trained and motivated, he is then appraised for his performance. Performance Appraisal is the step where the Management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken to communicate with the employee and remedy them. Performance Appraisal is a process of evaluating an employee s performance in terms of its requirements.

Performance Appraisal can also be defined as the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.Performance Appraisal Effectiveness MBA (Human Resources) 14 Importance and Purpose Performance Appraisal has been considered as the most significant an indispensable tool for an organization, for an organization, for the information it provides is highly useful in making decisions regarding various personnel aspects such as promotion and merit increases. Performance measures also link information gathering and decision making processes which provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation. Accurate information plays a vital role in the organization as a whole.

They help in finding out the weaknesses in the primary areas. Formal Performance Appraisal plans are designed to meet three needs, one of the organization and the other two of the individual namely: o They provide systematic judgments to back up salary increases, transfers, demotions or terminations. o They are the means of telling a subordinate how he is doing and suggesting needed changes in his behavior, attitudes, skills or job knowledge. They let him know where he stands with the Boss. o Superior uses them as a base for coaching and counseling the individual. On the basis of merit rating or appraisal procedures, the main objectives of Employee Appraisal are: o To enable an organization to maintain an inventory of the number and quality of all managers and to identify and meet their training needs and aspirations. o To determine increment rewards and to provide reliable index for promotions and transfers to positions of greater responsibility. o To suggest ways of improving the employee s performance when he is not found to be up to the mark during the review period.Performance Appraisal Effectiveness MBA (Human Resources) 15

o To identify training and development needs and to evaluate effectiveness of training and development programmes. o To plan career development, human resource planning based potentials.Performance Appraisal Effectiveness MBA (Human Resources) 16Performance Appraisal Effectiveness MBA (Human Resources) 17 Summary of the Performance Analysis System Setting performance standards, observing and providing feedback, and conducting appraisals enables the Team Leader to achieve the best results through managing employee performance. To begin the process, the Team Leader and the employee collaborates on the development of performance standards. The Team Leader then develops a performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discussion of goals and objectives throughout the year provides a framework to ensure that employees achieve results through One on One and mutual feedback. At the end of the rating period, the Team Leader appraises the

employee's performance against existing standards, and establishes new goals together for the next rating period. As the immediate supervisor, the Team Leader plays an important role; his closest interaction with the employee occurs at this level. There are four key elements in the appraisal system: 1. Set objectives - Decide what the Team Leader wants from the employees and agree these objectives with them. 2. Manage performance - Give employees the tools, resources and training they need to perform well. 3. Carry out the appraisal - monitor and assess the employees' performance, discuss those assessments with them and agree on future objectives. 4. Provide rewards/remedies - Consider pay awards and/or promotion based on the appraisal and decide how to tackle poor performance.Performance Appraisal Effectiveness MBA (Human Resources) 18 Performance Standards How does the Team Leader decide what's acceptable and what's unacceptable performance? The answer to this question is the first step in establishing written standards.

Performance expectations are the basis for appraising employee performance. Written performance standards let the Team Leader to compare the employee's performance with mutually understood expectations and minimize ambiguity in providing feedback. Having performance standards is not a new concept; standards exist whether or not they are discussed or put in writing. When the Team Leader observes an employee's performance, he usually makes a judgment about whether that performance is acceptable. Standards identify a baseline for measuring performance. From performance standards, the Team Leader can provide specific feedback describing the gap between expected and actual performance. Guiding Principles Effective performance standards: Serve as an objective basis for communicating about performance. Enables the employee to differentiate between acceptable and unacceptable results. Increase job satisfaction because employees know when tasks are performed well. Inform new employees of your expectations about job performance.Performance Appraisal

Effectiveness MBA (Human Resources) 19 Key Responsibility Areas (KRA) The Team Leaders in association with the Project Manager write performance standards for each key area of responsibility on the employee's job description. The employee actively participates in its development. Standards are usually established when an assignment is made, and they are reviewed if the employee's job description is updated. The discussions of standards include the criteria for achieving satisfactory performance and the proof of performance (methods the Team Leader will use to gather information about work performance).Performance Appraisal Effectiveness MBA (Human Resources) 20 Characteristics of Performance Standards Standards describe the conditions that must exist before the performance can be rated satisfactory. A performance standard should: Be realistic, in other words, attainable by any qualified, competent, and fully trained person who has the authority and resources to achieve the desired result Describe the conditions that exist when

performance meets expectations Be expressed in terms of quantity, quality, time, cost, effect, manner of performance, or method of doing Be measurable, with specified method(s) of gathering performance data and measuring performance against standards Performance Appraisal Effectiveness MBA (Human Resources) 21 Expressing Standards The terms for expressing performance standards are outlined below: Quantity: Specifies how much work must be completed within a certain period of time. Quality: Describes how well the work must be accomplished. Specifies accuracy, precision, appearance, or effectiveness. Timeliness: Answers the questions, by when? , How soon? , Or within what period? Effective Use of Resources: Used when performance can be assessed in terms of utilization of resources: money saved, waste reduced. Effects of Effort: Addresses the ultimate effect to be obtained; expands statements of effectiveness by using phrases such as: so that, in order to, or as shown by. Manner of Performance: Describes conditions in which an individual's

personal behavior has an effect on performance, e.g., assists other employees in the work unit in accomplishing assignments. Method of Performing Assignments: Describes requirements; used when only the officially prescribed policy, procedure, or rule for accomplishing the work is acceptable.Performance Appraisal Effectiveness MBA (Human Resources) 22 Performance Measurements Since one of the characteristics of a performance standard is that it can be measured, the Team Leader identifies how and where evidence about the employee's performance will be gathered. Specifying the performance measurements when the responsibility is assigned will help the employee keep track of his progress, as well as helping the Team Leader in the future performance discussions. There are many effective ways to monitor and verify performance, the most common of which are: Direct observation Specific work results (tangible evidence that can be reviewed without the employee being present) Reports and records, such as

attendance, safety, inventory, financial records, etc. Commendations or constructive or critical comments received about the employee's work.Performance Appraisal Effectiveness MBA (Human Resources) 23 Observation and Feedback (One on One) Once performance objectives and standards are established, the Team Leader observes the employees' performance and provides feedback. The Team Leader has a responsibility to recognize and reinforce strong performance by an employee, and identify and encourage improvement where it is needed. The Team Leader provides informal feedback almost every day. By observing and providing detailed feedback, the Team Leader plays a critical role in the employee's continued success and motivation to meet performance expectations. One On One Sessions One on One is a method of strengthening communication between the Team Leader and the employee. It helps to shape performance and increase the likelihood that the employee's results will meet expectations. One on One sessions

provide the Team Leader and the employee the opportunity to discuss her progress toward meeting mutually established standards and goals. A One on One session focuses on one or two aspects of performance, rather than the total review that takes place in a performance evaluation. Guiding Principles Effective One on One can: Strengthen communication between the Team Leader and the employee Help the employee attain performance objectives Increase employee motivation and commitment Maintain and increase the employee's self-esteem Provide support Performance Appraisal Effectiveness MBA (Human Resources) 24 Key Elements of One on One To make One on One sessions effective, the Team Leader keeps the following key elements of One on One in mind while conducting such a session: Observe the employee's work and solicit feedback from others. When performance is successful, take the time to understand why. Advise the employee ahead of time on issues to be discussed. Discuss alternative solutions. Agree on action to be taken. Schedule follow-up meeting(s) to

measure results. Recognize successes and improvements. Document key elements of One on One session. Questions to Consider during One on One To provide effective feedback the Team Leader must understand the elements of performance and analyze marginal performance. These questions are kept in mind: How is the employee expected to perform? Does the employee understand these expectations? If not, why not? Does the employee know what successful results look like? How does the Team Leader know? Does the employee know the performance is marginal? How does the Team Leader know? Are there obstacles beyond the employee's control? Can the Team Leader remove them? Has the employee ever performed this task satisfactorily? Is the employee willing and able to learn? Does satisfactory performance result in excessive work being assigned? Performance Appraisal Effectiveness MBA (Human Resources) 25

Does unsatisfactory performance result in positive consequences such as an undesirable task being reassigned? During the One on One Session When the Team Leader conducts a One on One session to provide positive feedback to the employee, he keeps the following points in mind: Describe the positive performance result or work habit using specific details. Ask the employee's opinion of the same product or behavior. Ask the employee to identify elements that contributed to success (adequate time or resources, support from management or other employees, the employee's talent and interest in the project). Discuss ways in which the Team Leader and the employee can support continued positive results. Reinforce for the employee the value of the work and how it fits in with the goals of the work unit or department. Show your appreciation of the positive results and your confidence that the employee will continue to perform satisfactorily. If appropriate, document your discussion for the employee's file. When the Team Leader conducts a One on One session to improve performance, he uses the following format:

Describe the issue or problem, referring to specific behaviors. Involve the employee in the problemsolving process. Discuss causes of the problem. Identify and write down possible solutions. Decide on specific actions to be taken by each of the Team Leader. Agree on a follow-up date. Document key elements of the session. Performance Appraisal Effectiveness MBA (Human Resources) 26 Follow-Up Discussion During a follow-up discussion, the following steps are followed: Review the previous discussion(s). Discuss insufficient improvement and ask for reasons why. Indicate consequence of continued lack of improvement. Agree on action to be taken and set a follow-up date, if appropriate. Convey confidence in the employee. Document the discussion.Performance Appraisal Effectiveness MBA (Human Resources) 27Performance Appraisal Effectiveness MBA (Human Resources) 28 Aim of the Research To ascertain the effectiveness of Performance Appraisal methodology used by the Organization. Objectives of the study The following are the objectives of the

study To develop my understanding of the subject. o Performance Appraisal System implemented in various Organizations varies according to the need and suitability. Through my research, I have tried to study the kind of Appraisal used in the Organization and the various pros and cons of this type of system. To conduct a study on social behavior. o Social behavior is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for social development. To enhance the welfare of employees. o The Appraisal system is conceived by the Management but mostly does not take into consideration the opinion of the employees. This can lead to adverse problems in the Organization. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the Performance Appraisal System. To exercise social control and predict changes in behavior. o The ultimate object of my research is to make it possible to predict the behavior of individuals by studying the factors that govern and guide them.Performance Appraisal Effectiveness MBA (Human Resources)

29 Research Design A research design is a type of blueprint prepared on various types of blueprints available for the collection, measurement and analysis of data. A research design calls for developing the most efficient plan of gathering the needed information. The design of a research study is based on the purpose of the study. A research design is the specification of methods and procedures for acquiring the information needed. It is the overall pattern or framework of the project that stipulates what information is to be collected from which source and by what procedures.Performance Appraisal Effectiveness MBA (Human Resources) 30 Sampling An integral component of a research design is the sampling plan. Specifically, it addresses three questions Whom to survey (The Sample Unit) How many to Survey (The Sample Size) & How to select them (The Sampling Procedure) Making a census study of the whole universe will be impossible on the account of limitations of time. Hence sampling

becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort. Methods of Sampling Probability Sampling is also known as random sampling or chance sampling . Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section of sample items is independent of he persons making the study that is, the sampling operation is controlled objectively so that the items will be chosen strictly at random. Non Probability Sampling is also known as deliberate sampling , purposeful and judgmental sampling. NonProbability Sampling is that which does not provide every individual in the Organization with a known chance of being included in the sample.Performance Appraisal Effectiveness MBA (Human Resources) 31 Data collection method Collection of data is the first step in statistics. The data collection process

follows the formulation for research design including the sample plan. The data can be secondary or primary. Collection of Primary Data during the course of the study or research can be through observations or through direct communication with respondents on one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study. Secondary data means data that is already available i.e., they refer to data, which has already been collected and analyzed by someone else. When a secondary data is used, the researcher has to look into various sources from where he can obtain data. This includes information from various books, periodicals, magazines etc.Performance Appraisal Effectiveness MBA (Human Resources) 32 Research Methodology Adopted Research Design : Descriptive research Research Instrument : Structured Questionnaire Sampling Plan i) Sample Method : Non-Probability Sampling

(Convenience Sampling) ii) Sample Size : 50 iii) Sample Unit : Employees who do not hold a supervisory position Sampling Design Convenience Sampling, as the name implies, is based on the convenience of the researcher who is to select a sample. Respondents in the sample are included in it merely on account of their being available on the spot where the survey was in progress. Source of Data a) Primary Data : Structured Questionnaire b) Secondary Data : Journals, Booklets, Company Data, etc.Performance Appraisal Effectiveness MBA (Human Resources) 33Performance Appraisal Effectiveness MBA (Human Resources) 34 Median Age Analysis 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 The above graph is a logarithmic representation of the employee age

data and clearly shows the median age of the sample population taken for the survey as 29. This is mainly due the expansion policy of the company that has taken on board a large number of new and young employees to fuel its growth plans. Due to this a large group of creative employees have been inducted into the Organization. This helps in maintaining the creative talent in the Organization, as the job profile requires them to be creative. Champion Voyagers Designers Pvt Ltd will be continuing their expansion plans in the coming months and this will lead to a further decease in the average age of the employees in the Organization.Performance Appraisal Effectiveness MBA (Human Resources) 35 Male / Female ratio within the selected sample Female Male Data Males 24 Females 26 Analysis There is equality in terms of the ratio between males and females in Champion Voyager Designers Pvt Ltd. This can also be ascertained from the fact that the same

ratio is present among the total strength of 350+ employees in the company. The sample was carefully chosen to ensure that the study gave an equal opportunity to both the sections to voice their opinion and there gain a truer picture of the conclusions derived by the study. The balance of both the genders in the Organization also gives rise to a good work atmosphere and better understanding between the employees. This trend can also be witnessed in the supervisory ranks of Champion Voyager Designers Pvt Ltd. This helps to remove many barriers that may exist due to various reasons. The Management of Champion Voyager Designers Pvt Ltd strives to be an equal opportunity employer and therefore does not try to discriminate on the basis of Gender.Performance Appraisal Effectiveness MBA (Human Resources) 36 Years of Experience within the Organization 0 2 4 6 8 10 12

14 16 18 20 12345 Yrs Data 1) Less than a Year 5 2) One Year 19 3) Two Years 14 4) Three Years 5 5) Four + Years 7 Analysis Most of the employees in the Organization are relatively new because a majority of them (i.e. 66%) have between one and two years of experience in the Organization. This is mainly due to the fact that the Organization is in a constant mode of growth and is therefore recruiting in a big way. The expansion plans are done keeping in mind the proposed growth in business in the near future. Another reason is the fact that finding new talent for the required skills is a tough task because market awareness about the career growth in this sector is very limited. Due to this, Champion Voyager Designers Pvt Ltd has inducted a lot of employees after providing them with training to ensure that their Human resource requirements are met.Performance Appraisal Effectiveness MBA (Human Resources)

37 1) Have you worked in any other Company prior to joining this Organization? 0 5 10 15 20 25 30 35 12 Data 1) Yes 32 2) No - 18 Analysis Thirty-two employees (i.e. 64%) have some amount of prior work experience before joining Champion Voyager Designers Pvt Ltd. Most of them are diploma holders in animation and were not aware of the existence of such an industry. They came to know about the same only after seeing the advertisements of the company in the newspaper. This also means that even though most of them have worked prior to joining Champion Voyager Designers Pvt Ltd, they do not have any hands-on experience of the kind of work carried out by Champion Voyager Designers Pvt Ltd. This fact can also be interpreted as

having no valid work experience at all prior to joining the Organization.Performance Appraisal Effectiveness MBA (Human Resources) 38 2) Were you informed about the Performance Appraisal model, used in the Organization, during your induction? 21 22 23 24 25 26 27 12 Data 1) Yes 27 2) No - 23 Analysis Due to the fact that most of the employees have got no experience in this sector before, they did not ask about the Performance Appraisal model used in the Organization. The respondents that said that they were informed of the model during the interview were told so at the discretion of the interviewer. The company has however made it a point to inform the employee about the model before he signs the acceptance letter. This prevents any ambiguities and misunderstanding about what is

expected of the employee before he joins the Organization.Performance Appraisal Effectiveness MBA (Human Resources) 39 3) How do you find the Performance Appraisal Model in this Organization? (Mark all the relevant options) 0 5 10 15 20 25 30 35 40 123456 Data 1) Simple 37 2) Complicated 13 3) Objective - 17 4) Subjective - 33 5) Efficient - 32 6) Inefficient - 18 Analysis From the above chart it can be inferred that, a majority of the sample respondents have found the Appraisal Model to be simple and efficient on one hand but also subjective on the other hand. The Appraisal model has been thoroughly dealt with during the training so the employees know exactly what is expected of them. The HR department follows an open door policy which ensures that

any queries regarding the policy can be clarified to the employee s satisfaction. But the employees are of the opinion that the subjective nature of the Appraisal system is one of the main disadvantages. The fact remains that due to the kind of work carried out by Champion Voyager Designers Pvt Ltd, it becomes quite irrelevant to appraise on an objective basis.Performance Appraisal Effectiveness MBA (Human Resources) 40 4) In your opinion, does the Performance Appraisal System give a proper assessment of your contribution to the Organization? 21 22 23 24 25 26 27 12 Data 1) Yes 27 2) No - 23 Analysis About 54% of the respondents say that the Performance Appraisal System does give a true and fair view of their contribution to the Organization. This does include employees who think that their rating does not

always turn up to be correct as per their opinion. The group of respondents who have replied in the negative, also include candidates who say that the appraisal does not turn out to be right most of the times but do show a fair view sometimes. Since the appraisal is done o a quarterly basis and most of the candidates have not gone through more than 2-3 rounds of appraisals, the data may not be entirely sufficient to reach any conclusions.Performance Appraisal Effectiveness MBA (Human Resources) 41 5) How often does your Performance assessment match to your expectations? 0 2 4 6 8 10 12 14 16 18 20 12345 Data 1) Never - 2 2) Rarely - 8 3) Sometimes 13 4) Often - 20 5) Every time - 7 Analysis

This question was purposely put into the questionnaire to validate the answers for the previous question. The breakup of the data clearly shows that 4% of the entire sample state that their appraisal have never shown a fair view of their performance. If this can be combined with those who are of the opinion that their appraisal rarely matches up to their expectations, this figure goes up to consist about 20% of the population. That shows that 80% are satisfied with the present system even though this includes satisfaction in varying degrees like the appraisal matches up to the respondents expectations sometimes, often or every time. This does show that the satisfaction level of the employees in this system is quite high and that there is a general feeling of likeability among the respondents.Performance Appraisal Effectiveness MBA (Human Resources) 42 6) According to you, how often should the Performance Review take place? 0 2 4 6 8

10 12 14 16 18 12345 Data 1) Once in a week - 14 2) Once a month - 17 3) Every 3 months 12 4) Every 6 Months - 3 5) Once a Year 4 Analysis Performance appraisal review is a constant process and lesser the frequency between the appraisals, the better. The majority want (i.e. 86% which includes the first 3 options only) the frequency of the appraisal to less than 3 months. The employees say that the longer the frequency between appraisals, the more the chances of the appraisal not matching up to their expectations because many performances get overlooked. If the appraisal is done on a more frequent basis, the employee has a chance to find out the gaps in his / her performance on a more regular basis which will help them to improve more on their performance and thereby eliminate waste. The appraisal does not necessarily have to be a formal one. Even informal performance appraisals done between formal

appraisals but on a more frequent level will most certainly help and go a long way in improving performance.Performance Appraisal Effectiveness MBA (Human Resources) 43 7) What is your Satisfaction level with the current Appraisal System? 0 5 10 15 20 25 30 12345 Satisfacton level No of Peop el Data 1) Very Low - 0 2) Low - 4 3) Average 13 4) High - 28 5) Very High - 5 Analysis The satisfaction level of the Appraisal system is quite high as can be seen from the graph. This is a good sign as increased level of satisfaction is the main emphasis of any appraisal system. The curve tops at the rating of high and this includes about 56% of the population. The bell curve shows that 92% have rated the Appraisal system as average , high or very high . The high Satisfaction level in the System could also be due to various reasons like monetary or nonmonetary incentives or growth

parameters. The satisfaction level also brings to light the efficiency of the management in devising an acceptable Appraisal system.Performance Appraisal Effectiveness MBA (Human Resources) 44 8) Which are the areas that should be improved upon? 0 5 10 15 20 25 1234 Data 1) Standards - 12 2) Monetary Incentives - 25 3) Freq of Appraisal 23 4) Appraiser - 3 Analysis This question breaks up the different phases of the appraisal system and tries to come to derive a conclusion as to the areas of improvement in the process of evaluation. Fifty percent of the respondents say that there should be a change on the aspect of monetary incentives. This does not refer to an increase in the monetary incentives but a more reasonable incentive structure that will properly reward increased and efficient performance. The frequency of appraisal is another aspect that needed

review. The present system is a quarterly one and the general opinion is that informal appraisals should be held on a more regular basis. Standards of performance (i.e. benchmarks) should be improved according to 24% of the respondents. Only 6% have stated the there should be change in the appraiser, which is an inevitable sign of the operational efficiency of the system.Performance Appraisal Effectiveness MBA (Human Resources) 45 9) How important do you think is Performance Appraisal to your Performance? Productivity Analysis 0 5 10 15 20 25 12345 Data 1) Not Important - 0 2) Less Important 2 3) Important 14 4) Very Important - 22 5) Most Important - 12 Analysis This question was put in to find out and analyze the importance of the Appraisal system to the productivity of the employee. The

data clearly shows that the recognition of the employee s performance does have a direct impact on his / her efficiency. A vast majority of the respondents (i.e. 68% which includes ratings of very important or most important ) affirm that their performance is directly influenced by recognitions of their performance by the appraisal system. None of the respondents have stated that the appraisal system had no effect on their productivity. This points out to the fact that the Appraisal system goes a long way in determining the productivity of the employees in an Organization. Therefore it is very important for any Organization to devise their Performance Appraisal System carefully.Performance Appraisal Effectiveness MBA (Human Resources) 46 10) Do you think the One on One sessions are effective in ironing out problems in the work environment? 21 22 23 24 25 26 27 12 Data

1) Yes 23 2) No - 27 Analysis One on one sessions are conducted by Champion Voyager Designers Pvt Ltd during the appraisal system phase to tell the employee on an individual level as to the rating given to him / her. Each session lasts between 10 30 minutes. The team leader tries to justify his reasons on why he had given a particular rating to an employee. Sixty four percent of the employees responded by saying that the one on one sessions are not efficient in ironing out problems mainly because since they are done on a formal basis so most employees consider it just as a formality which the appraiser uses to impose the rating he has already given to an employee. The employee therefore does not expect the rating to change after a one on one session with the supervisor.Performance Appraisal Effectiveness MBA (Human Resources) 47 11) Transparency Rating of the Performance Appraisal system Transperancy Rating 0 2 4 6

8 10 12 14 16 18 123456 Data 1) 4 Points 10 2) 5 Points 16 3) 6 Points 9 4) 7 Points 8 5) 8 Points 5 6) 9 Points -2 Analysis This question is an attempt to analyze the perceived transparency of the rating among the employees of the Organization. A majority of the employees have given a transparency rating of 5. The perception of the employees is since the appraisal is done on a quarterly basis, the employee is not in a position to actually evaluate the basis of the rating he / she has received. This causes a lot of ambiguity in the ratings. This is the primary concern due which almost 70 % have given a rating of 6 and below. The respondents who have given a rating of 7 and above have mostly given this rating because they have got good ratings in the past and feel that there is not much required in terms of transparency as long as they get good ratings

themselves.Performance Appraisal Effectiveness MBA (Human Resources) 48 12) Do you feel comfortable discussing any difference of opinion about your Performance Rating with your appraiser? 0 5 10 15 20 25 30 12 Data 1) Yes 21 2) No - 29 Analysis The major reason for the decreased transparency rating might be due to the fact that 58 % of the respondents did not feel free to express their displeasure, if any, to the rating given to them. This can be due to decreased comfort levels with the appraiser. The appraisal system can only be efficient if it takes into consideration the employee s side of the appraisal. There might be various aspects that the appraiser might have accidentally overlooked or certain circumstances misinterpreted which can be clarified if the employee is more open and

comfortable with the employer.Performance Appraisal Effectiveness MBA (Human Resources) 49 13) Performance Appraisal Model Rating Overall Rating 0 2 4 6 8 10 12 14 16 18 12345 Data 1) 5 Points 2 2) 6 Points 6 3) 7 Points 14 4) 8 Points 16 3) 9 Points - 12 Analysis The respondents were specifically told to rate the Appraisal system by setting aside any kind of human intervention present in it by just evaluating its inherent structure and not efficiency in its execution. This helps to ascertain whether there are any flaws in the Performance Appraisal system. About 80 % of the sample has given a rating of 7 points and above. This shows the system is generally acceptable to the employees and is a good

sign for Champion Voyager Designers Pvt Ltd. The concern of the Organization should be to find out why the remaining 20 % are not very highly satisfied with the system and find out ways and means to increase their acceptability of the system.Performance Appraisal Effectiveness MBA (Human Resources) 50Performance Appraisal Effectiveness MBA (Human Resources) 51 Limitations The following are the limitations faced by me during the course of the study The sample consisted only of employees in the day shift. Employees of the night shift were not considered for the purpose of study. There is no concrete basis to prove the response given is a true measure of the opinion of all the employees as a whole. Convenient sampling was used as the mode of conducting the research. The questionnaire contained mostly multiple-choice questions; therefore many respondents may not have given a proper thought before answering the questions. The response of the respondents may not be accurate thinking that the management might misuse the data. Almost all of the questionnaires had the open-ended question no. 11, left

unanswered. Sensitive company information cannot be displayed in the project report. Most respondents might be influenced by their peers in answering the questions. Due to the fact that most of the respondents were young, the questions might not have been answered with due sincerity.Performance Appraisal Effectiveness MBA (Human Resources) 52Performance Appraisal Effectiveness MBA (Human Resources) 53 Findings and Conclusions The following are the suggestions and conclusions derived from this particular research study Objectivity One manager's idea of "self-starting ability" can be quite different than another's idea. The question then arises as to how does one objectively evaluate "creativity ? If greater amount of objectivity can be infused into the Appraisal system, it can help to bring more transparency. Effective Communication One function of performance appraisals is to help employees develop so they can contribute more effectively. In order for the employees to develop and learn they need to know what they need to change, where (specifically) they have fallen short, and what they need to do. If a manager assigns a 1 (unsatisfactory) on a scale of 5, it does

not convey much information to an employee. It just says the manager is dissatisfied with something. In order to make it meaningful and promote growth, far more information must be added to the appraisal process and the related information should be transparently shared with the employee. Fairness Most employees resist being classified at the low end of the scale. Employees who are low rated are more likely to resist the evaluation of the superior and argue, claiming that personal bias was involved in the ratings. Managerial Efficiency The implementation of a Performance Appraisal System rests on the shoulders of the manager and he must ensure that it is done properly. A good manager can make an average appraisal system work and vice-versa.Performance Appraisal Effectiveness MBA (Human Resources) 54Performance Appraisal Effectiveness MBA (Human Resources) 55 Performance Appraisal FormPerformance Appraisal Effectiveness MBA (Human Resources) 56Performance Appraisal Effectiveness MBA (Human Resources) 57Performance Appraisal Effectiveness MBA (Human Resources) 58Performance Appraisal Effectiveness

MBA (Human Resources) 59Performance Appraisal Effectiveness MBA (Human Resources) 60Performance Appraisal Effectiveness MBA (Human Resources) 61Performance Appraisal Effectiveness MBA (Human Resources) 62Performance Appraisal Effectiveness MBA (Human Resources) 63Performance Appraisal Effectiveness MBA (Human Resources) 64Performance Appraisal Effectiveness MBA (Human Resources) 65Performance Appraisal Effectiveness MBA (Human Resources) 66Performance Appraisal Effectiveness MBA (Human Resources) 67Performance Appraisal Effectiveness MBA (Human Resources) 68 Dear Respondent, I would be grateful if you could spare some of your time to respond to the following questions. Your response will be treated as confidential and would only be used for the purpose of study. Gender - Male Female Age 21-25 25-30 30-35 35+ Yrs of experience in this Organization Less than a Year 1 yr 2 yrs 3 yrs 4 yrs+ 1) Have you worked in any other Company prior to joining this Organization? Yes No 2) Were you informed about the Performance Appraisal model, used in

the Organization, during your induction? Yes No 3) How do you find the Performance Appraisal Model in this Organization? (Mark all the relevant options) Simple Complicated Objective Subjective Efficient Inefficient 4) In your opinion, does the Performance Appraisal System give a proper assessment of your contribution to the organization? Yes No 5) How often does your Performance assessment match to your expectations? Never Rarely Sometimes Often Every time 6) According to you, how often should the Performance Review take place? Once a week Once a month Every 3 monthsPerformance Appraisal Effectiveness MBA (Human Resources) 69 Every 6 months Once a yearPerformance Appraisal Effectiveness MBA (Human Resources) 70 7) What is your Satisfaction level with the current Appraisal System? Very low Low Average High Very High 8) Which are the areas that should be improved upon? (Mark all the relevant options) Standards Monetary incentives Frequency of Appraisal Appraiser

9) How important do you think is Performance Appraisal to your Performance? Not Important Less Important Important Very Important Most Important 10) Do you think the One on One sessions are effective in ironing out problems in the work environment? Yes No 11) If you were given an opportunity to rate the transparency of the Appraisal System, what marks would you give? (On a scale of 1 to 10 with 1 being the lowest and 10 being the highest) 12) Do you feel comfortable discussing any difference of opinion about your Performance Rating with your appraiser? Yes No 13) How do you rate the Performance Appraisal System in your Organization? (On a scale of 1 to 10 with 1 being the lowest and 10 being the highest) 14) Any SuggestionsPerformance Appraisal Effectiveness MBA (Human Resources) 71This document was created with Win2PDF available at http://www.daneprairie.com. The unregistered version of Win2PDF is for evaluation or non-commercial use only.

COMPANY PROFILE: Apollo Tyres Ltd is the leading tyre manufacturing company in India. They are engaged in manufacturing automobile tyres and tubes. They are having their manufacturing facilities at Trichur in Kerala and Vadodara in Gujarat. They are the first Indian tyre company to launch exclusive branded outlets for truck tyres and also the first Indian company to introduce radial tyres for the farm category. The company was incorporated on September 28, 1972. They started their production in the year 1977 at Perambra in Kerala. In the year 1991, the company commissioned their second plant at Limda in Gujarat. In the year 1995, they acquired Premier Tyres at Kalamassery in Kerala. In the year 1996, exclusive tubes plant commissioned in Ranjangoan in Maharashtra and in the year 2000, they established exclusive radial capacity in Limda. On Novermber 17, 2003, the company entered into an strategic alliance Michelin, France for setting up a joint venture company namely Michelin Apollo Tyres Pvt Ltd for producing dual branded truck & bus radial tyres in India. In the year 2004, they produced India's first H-speed rated tubeless passenger car radial tyres. Also they increased the production capacity of Automobile Tyres and Automobiles Tubes by 1283560 Nos and 414000 Nos respectively and in the next year, they further increased the production capacity by 1466432 Nos and 1567200 Nos respectively. During the year 2005-06, the company incorporated a wholly owned subsidiary company, Apollo (Mauritius) Holdings Pvt Ltd in Mauritius and they also formed Apollo Automotive Tyres Ltd and Apollo Radial Tyres Ltd as wholly owned subsidiaries of the company. In the same year, PTL Enterprises Ltd ceased to be a subsidiary company. Also, the company realigned their relationaship with Michelin and exited from the joint venture company Michelin Apollo Tyres (P)

Ltd. The company increased the production capacity of Automobiles Tyres and Automobile Tubes by 1045632 Nos and 1379360 Nos respectively during the year 2005-06 and they further increased the production capaity by 888340 Nos and 218440 Nos during the next year. During the year 2007-08, they increased the production capacity of Automobile Tyres by 836620 Nos. Thus the total capacity for Automobile Tyres and Automobile Tubes increased to 9659232 Nos and 6741000 Nos. On April 21, 2006, the company acquired Dunlop Tyres International (Pty) Ltd, South Africa. During the year 2006-07, they increased the manyfacturing capacity of Camel Back/Pre Cured Tread Rubber by 217000 Nos to 220000 Nos and in the next year they further inceased to 248040 Nos. The company incorporated Apollo Tyres AG, Switzerland as a wholly owned subsidiary with effect for July 4, 2007. Also, two subsidiaries namely Apollo Automotive Tyres Ltd and Apollo Radical Tyres Ltd have been desubsidiarized with effect from December 21 2007. The company is in the process of setting up of a greenfield plant for the manufacture of radial tyres in Hungary with the estimated cost of Rs. 12000 million. They are also in the process of setting up a manufacturinig facility for production of bias OTR tyres at Limda plant with the production capacity of 10 MT/day. The company has commenced the project activities of setting up a manufacturing base for production of 3.5 million passenger car tyres per year at Oragadam in Tamilnadu. In May 2008, the company opened their first full-services branded commercial vehicle tyre outlet called Apollo Trust in Salem, Tamilnadu. In Spetember 2008, Apollo Tyres launches XT100K which is a cross-ply tyres designed for unmatched performances. KEY EXECUTIVES: Director S Narayan

Chairman & Managing Director Director Director

Onkar S Kanwar R B Punja Robert Steinmetz

Board Of Directors Director Chairman & Managing Director Director Vice Chairman & M.D. Nominee (Kerala Govt) Director Whole-time Director Company Secretary Director Nominee (Kerala Govt) Raw Materials
Mar 2010

S Narayan Onkar S Kanwar R B Punja Robert Steinmetz Neeraj Kanwar T Balakrishnan A K Purwar Sunam Sarkar U S Oberoi P N Wahal K Jacob Thomas M J Hankinson Nimesh N Kampani P Prabakaran

Product Name Rubber Fabrics Carbon Black Chemicals Others

Uni Quantity t 161,008.8 MT 4 MT 29971.98 MT 78,388.82 MT 25802.94 NA 0.00

Value (Rs.cr Cost(Rs.) / ) Unit 1,712.50 531.62 369.82 234.88 209.09 106,360.62 177,372.33 47,177.65 91,028.39 -

Finished Goods Purchase Scrap Recoveries

- NA 0 NA 0.00

151.68 -12.94

Bankers Axis Bank Ltd Bank of India BNP Paribas Canara Bank Dhanalakshmi Bank Ltd ICICI Bank Ltd IDBI Bank Punjab National Bank Standard Chartered Bank State Bank of India State Bank of Mysore State Bank of Patiala State Bank of Travancore Union Bank of India Yes Bank Ltd

History 1972 - Apollo Tyres Ltd. (ATL) was incorporated 28th September, 1972 as a Public Limited Company and obtained certificate of Commencement of Business on October 24, 1972. The Company was promoted by Bharat Steel Tubes, Ltd. Raunaq International Pvt. Ltd., Raunaq & Co. Pvt. Ltd., Raunaq Singh, Mathew T. Marattukalam and Jacob Thomas. The Company

manufacture automobile tyres and tubes, camel back/retreading materials and rubber conveyor belts. - 15,00,000 No. of equity shares issued to Bharat Steel Tubes Ltd., 2,50,000 No. of equity shares to Kerala Govt. and 13,50,000 No. of equity shares to promoters, etc. and associate companies. 75,000 pref. shares and 46,50,000 No. of equity shares offered at par to the public in October 1975. 1978 - 35 Pref. and 13,06,200 No. of equity shares forfeited in 197778. During 1978-79 forfeiture on 22,200 No. of equity shares annulled. 1980 - Forfeiture on 2,30,050 No. of equity shares annulled. 1981 - After the expiry of the original agreement the Company negotiated with General Tire International Co., U.S.A., for the renewal with General Tire International Co., U.S.A., for the renewal of the technical collaboration agreement for a further period of 5 years. This agreement expired on January 1987. - Forfeiture annulled on 700 No. of equity shares during 198182 and on another 610 No. of equity shares during 1981-83. 1983 - 6,88,950 forfeited equity shares reissued. 1984 - 3,63,700 forfeited shares reissued. 1986 - `General Tire International Corporation', U.S.A. was taken over by `Continental Gummi werke GmbH', West Germany. 1987 - During the year, the Company acquired interest in Gujarat Tyres Ltd., for implementing an industrial licence to manufacture automobile tyres and tubes in Gujarat State. - The Company finalised a proposal for promoting a company in joint participation for carrying on business in pipe laying, drilling, coating contracts and other engineering, designing, consultancy and management services. - 6,52,000 No. of equity shares allotted at par to financial institutions in conversion of loans.

1988 - The Company set up a plant with a capacity of 6.75 lakh tyres per annum at Limda, Baroda, Gujarat at an estimated cost of Rs 168.96 crores. - The Company promoted a new Company under the name of "Raunaq Aker Drilling, Ltd." in technical collaboration with Aker Drilling A/s, Norway. The company was to undertake multifarious onshore and offshore drilling services/related activities in India. - The Company entered into an agreement with Persterp AB, Sweden for promotion of joint venture company in the name of "Gujarat Perstorp Elektronics Ltd." It undertook manufacture of electronic grade copper clad laminates. 1989 - Radial tyres for Maruti cars and premium tyre for trucks were launched during the year. - During August, the Company offered 42,01,000-12.5% secured partly convertible debentures of Rs 100 each on Rights basis in the ratio 1 debenture : 2 Equity shares held. Additional 6,30,150 debentures were allotted to retain over subscription. - The Company also issued 2,10,050 - 12.5% partly convertible debentures to the employees' (including Indian working directors) of the Company (only 8,875 debentures were taken up). The unsubscribed portion of 2,01,175 debentures was allowed to lapse. - Rs 35 (Part A) of the face value of each debenture was automatically and compulsorily converted into one equity share of Rs 10 each at a premium of Rs 25 per share. - Rs 40 (Part B) of the face value of each debenture was automatically and compulsorily converted into one equity share of Rs 10 each at a premium of Rs 30 per share at the end of 12 months from the date of allotment of debentures. - The remaining Rs 25 (Part C) of the face value of each debenture was to be redeemed in two instalments of Rs 10 and Rs 15 at the end of 8th and 9th year respectively from the date of allotment of debentures. - During September the Company issued through a prospectus 42,59,715 - 12.5% secured partly convertible debentures of Rs

140 each of which the following debentures were reserved and allowed on a firm basis: (i) 4,30,000 debentures to Commonwealth Development Corporation (CDC); (ii) 1,00,000 debentures to SBI Mutual Fund and (iii) 3,57,000 debentures to UTI. - Of the balance 33,72,715 debentures (i) 3,55,000 debentures to shareholders of the promoter and other companies, viz., BST Mfg. Ltd., Bharat Gears, Ltd., Apollo Tubes, Ltd., Raunaq International Ltd., Raunaq & Co. Pvt. Ltd., Universal Steel & Alloys Ltd and Raunaq Automotive Exports, Ltd. (ii) 2,13,000 debentures to employees of the Company (only 650 debentures were taken up). The remaining 20,89,715 debentures along with 5,75,000 debentures not taken up under preferential quota were offered to the public. Additional 6,38,935 debentures were allotted to retain over subscription (53,550 debentures to UTI; 53,250 to promoters and 5,32,135 debentures to the public). - Rs 35 (Part A) of the face value of each debentures was automatically and compulsorily converted into one equity shares of Rs 10 each at a premium of Rs 25 per share at the end of 6 months from the date of allotment of debentures. - Rs 40 (Part B) of the face value of each debentures was automatically and compulsorily converted into one equity share of Rs 10 each at a premium of Rs 30 per share at the end of 12 months from the date of allotment of debentures. - Rs 65 (Part C) of the face value of each debenture was to be redeemed in three instalments of Rs 20, Rs 20 and Rs 25 each at the end of 7th, 8th & 9th year from the date of allotment of debentures. 1991 - The Company proposed to undertake exports of LVC and farm tyres in addition to truck tyres. 1993 - The Company undertook modernisation, upgradation of technology installation of line balancing equipments, setting up a state of are R&D centre, and to be financed by way of a Rights issue of non convertible debentures with detachable warrants.

- Pref. Shares redeemed on 28.12.1990. 194,77,350 No. of equity shares allotted in part conversion of deb. (prem. Rs 35 per share for 97,38,675 shares and Rs 40 per share for another 97,38,675 shares). 1994 - A number of high technology radial products were developed and introduced. The Company created distribution network of more than 2500 dealers in the country. 1995 - A new plant for manufacturing tubes and flaps at Ranjangaon near Pune was commissioned during the year. - The Company entered into an agreement with continental AG, Germany, for setting up a passenger car radial tyre factory with and initial production capacity of 4.7 million car radial tyres per annum and with a capital outlay of Rs 400 crores at Pune. This is a 50:50 joint venture between Apollo and Continental. - During January, the Company issued 69,69,838-14% secured non-convertible debentures of Rs 150 each with one detachable warrant, in the ratio 1 NCD : 4 equity shares held. - Each debenture shall be redeemed in three equal instalments of Rs 50 each at the end of 6th, 7th & 8th year respectively from the date of allotment of debentures. - The BIFR vide its order dated April 17, approved the rehabilitation scheme for revival of Premier Tyres Ltd. (PTL) envisaging take over of PTL. The scheme involves operation of Premier plant by Apollo for production of Apollo brands under a lease arrangement. The Company had become a subsidiary of the Company. - 10,25,667 No. of Equity shares issued against detachable warrants attached with 14% - NCDs on 31.3.1996. 5,52,492 Rights Equity shares of Rs 10 each (Premium Rs 90 per share) allotted on 30.3.96 (Propn. 1:1). - The Company emerged as the largest exporter of tyres registering a phenomenal 102 per cent increase in exports. 1996 - 4,17,389 shares issued on conversion of warrants. 1997

- The Company issued 12.5% NCD aggregating Rs 20 crores to IDBI on private placement for a period of 18 months. - 1,65,206 No. of equity shares issued on conversion of detachable warrants. - Apollo Tyres Limited has set up shop in the city opening its Apollo Tyre World (ATW) through Vora Tyres. - Apollo has been setting up ATW's all over the country equipped with state-of-the-art testing equipment. - ATL signed a letter of intent with the global major Continental AG for a 50:50 joint venture for setting up a 4.7 million passenger car radial facility. - The Apollo Tyres management has declared a lock-out at its Perambra unit, on Dec 6, lightning strike by its workers in the electrical, electronics, winding shop and instrumentation sections. - The week-long lock-out declared by the Apollo Tyres management at its factory at Perambra in Kerala has been lifted and the factory resumed operations from December 13. - ATL is the first Indian company to have an ISO 9001 accreditation for the entire product range. - ATL has emerged as the fastest growing tyre company in India (turnover up six-fold in the last five years) and the seventh fastest in the world. - The strike, by the electrical department workmen, began from November 30, demanding withdrawal of suspension of an employee. 1998 - Apollo Tyres has announced a voluntary retirement scheme (VRS) for the workers at its Perambra unit in Kerala with a view to optimise manpower utilisation and costs. - The Perambara unit in Kerala was one of the largest units with a capacity of 115 tonnes per day and its closure between April 10 to July 18 resulted in a massive production loss. - The company proposes to step up its radial capacity at Vadodara plant to 57,000 tyres per month, in addition to the current output of 8,500 radials at Kochi.

- Apollo Tyres has desubsidiarised two wholly-owned companies - Apollo Finance and Apollo International - by diluting its holding in both to below 51 per cent. - For Apollo Tyres, its Perambara tyre plant has not been doing too well and acting as a drag on the company's resources. This is mainly due to the continued labour unrest and lock-outs leading to heavy production loss at that unit. - Apollo International recently set up a subsidiary firm, Infonet Worldwide, for providing IT solutions to corporate clients. - The company is setting up a greenfield project at Ropar in Punjab to manufacture 100 tonnes a year of agriculture and offthe-road tyres, that is, mainly tyres for tractors, earthmovers, etc. - The company has a total installed capacity of 1.5 lakh truck tyres per month. The two plants in Kerala have a capacity of 70,000 tyres per month, the Baroda plant has a installed capacity of 55,000 tyres per month and the conversion arrangement with TCIL contributes another 25,000 tyres per month. - Premier Tyres Ltd. became a subsidiary of the company. - 4,190 No. of equity shares issued on conversion of warrants and another 30,10,000 No. of equity shares issued on conversion of part-A of convertible debentures of Rs 92 each. 1999 - Apollo Tyres Limited (ATL) has signed an agreement with national Securities Depository Limited (NSDL) for holding and trading of shares in demant form. - Apollo Tyres Ltd. has informed the Mumbai Stock Exchange (BSE) that the management has declared a lock-out at the company's Penrambra unit in Kochi with effect from 11th July. - No new technical collaboration agreement would be signed between ATL and Continental to include technology transfer for truck radials as the existing agreement. 2000 - The Company is planning to set up a Rs 300-crore radial tyre manufacturing unit either in Tamil Nadu or Andhra Pradesh with a capacity of 100 tonnes per day for radial tyres for trucks and off-the-road vehicles.

- Crisil has reaffirmed the `AA-' rating assigned to the Rs. 104.45-crore non-convertible debenture (NCD) programme of Apollo Tyres Ltd. - The Company proposes to pump in Rs. 225 crore as equity in its new wholly-owned subsidiary which will set up a greefield manufacturing unit. - The Company is setting up a Rs 450-crore plant to manufacture cross/ply radial tyres. - The Company's plant at Limba was closed for 19 days from 1st May, to 19th May, on account of an illegal strike by workers. - In a bid to attract the Net-savvy customers, Apollo Tyres has tied up with indiatimes.com to accentuate brand association with safe and pleasant journeys. - The Kalamassery unit of Apollo Tyres has won the 26th National Competition for Young Managers for 2000 organised by the All India Management Association in New Delhi. - Credit rating agency Crisil has reaffirmed the high safety rating of `AA-' to the Rs 104.45 crore non-convertible debenture programme of Apolly Tyres. 2001 - Apollo Tyres Ltd. has zeroed in on Tamil Nadu for setting up its Rs 450-crore greenfield truck radial tyre manufacturing plant. - Apollo Tyres Ltd has posted a 48.48 per cent decline in net profit at Rs 3.22 crore for the quarter ended September 30, 2001. 2002 - Apollo Tyres Ltd has informed that the appointment of Shri Raunaq Singh as Managing Director. He will however continue to be a Director and Non-Executive Chairman of the Board of Directors, liable to retire by rotation. -Apollo Tyres Ltd has informed that the Board of Directors appointed Mr Onkar S Kanwar as the Chairman of the Board of Directors. The Board also appointed Mr D Sengupta former Chairman of GIC as an Additional Director of the Company. -Apollo Tyres Ltd has informed the Exchange that Mr. Raaja R S Kanwar has been appointed as Director, liable to retire by rotation in the vacancy caused by the retirementof Mr. Raunaq Singh, Non-Executive Director and Chairman of the Board.

2003 -Technical & Financial Collaboration with Michelin Group. 2004 -Compagnie Financiere Michelin, Switzerland, acquire 57,12,500 shares amounting to 14.90% of the total paid up capital of Apollo Tyres Ltd. -Michelin Apollo Tyres Pvt Ltd (MATL), a 51:49 joint venture between Michelin Group and Apollo Tyres Ltd (ATL), has announced the launch of a range of truck and bus radials for the Indian market. -Apollo Tyres Ltd on August 9, 2004, announced the opening of Apollo Pragati Kendras , exclusive outlets for selling the entire range of its farm tyres to the agricultural community -Apollo Tyres introduces new range of tubeless car radials on october 27, 2004. 2005 - The first tyre-manufacturing unit of the Apollo Tyres Ltd (ATL) at Perambra in Thrissur district celebrates its 30 years of successful operations on 17th April 2005. - Apollo Tyres Ltd has entered into a distribution tie-up with Triveni Khushali Bazaar - specialised farm goods supermarkets being promoted by Triveni Engineering & Industries Ltd - for retailing its farm tyres. 2006 -Apollo Tyres rolls out DuraTreads -Apollo Tyres executes MOU with Tamilnadu Government for setting up Tyre Manufacturing Facility -Apollo Tyres to acquire Dunlop South Africa for Rs 290cr 2007 - The Company has splits its face value from Rs10/- to Rs1/-. -Apollo diversifies into transport and logistics 2008 -Apollo Tyres establishing plant in Hungary 2009 -Apollo Tyres - Acquisition of 100% shareholding control of Vredestein Banden B.V., Netherlands Join the VN Community

Competitors:S Company Current Price

Book Value

P/E Ratio

Market Cap (Rs. Cr.) 2,858.7 8 762.58 238.13 1,432.3 5 399.10 330.62 275.24 305.21 178.74

MRF Ltd. Goodyear Ltd. TVS Ltd. India

6,742.40 330.60 311.00 148.20

3,987.4 8.08 5 115.99 163.25 87.58 183.81 190.11 29.80 33.36 9.08 10.19 6.08 7.71 6.51 14.84 5.33 151.3 2 9.01

Srichakra

Balkrishna Industries Ltd.

JK Tyre & 97.20 Industries Ltd. Ceat Ltd. 96.55

Falcon Tyres Ltd. 80.75 Dunlop India Ltd. 42.40 PTL Ltd. Enterprises 27.00

RETENTION STRATEGY: Any employee retention strategy would necessarily include a plan for redressing employee grievances and ways and means to address employee issues. This would mean that the employees would be enabled to take their issues regarding pay, their work, their role etc. to the HR manager

for each division and expect to get a fair hearing in the process. There should be a plan where the HR manager in conjunction with the manager of the employee who has raised the issue works towards resolving the issue. Components of a Retention Strategy Taking each of these strategies in turn, job rotation is the practice of moving the employees around divisions and within divisions with a clear emphasis on making sure that they operate in domains other than the ones assigned to them initially. This would mean that the employees get trained on competencies beyond that of their assigned plant and this would lead to greater motivation to pick up additional skills and motivate them to perform better. The importance of grievance redressal and mitigation cannot be emphasised more. This is the most critical and crucial component of the HRM plan as research has shown that an employee with pending issues awaiting resolution is twice more likely to quit the company than the other employees. Hence, all efforts must be made to redress the grievances of the employees. Grievance Redressal An effective retention strategy would focus on preventing as well as addressing grievances. Though it is not the contention that all grievances can be prevented, they can be pre-empted by actively listening to the employees from time to time. This strategy of listening to the employees would revolve around a concept of one-one meetings between the employees and the manager and employees and the HR representative for the unit or division. The idea of the regular one-one meetings would be to identify potential causes of friction among the employees and any issues they may have vis--vis their job and benefits. These issues need to be brought out into the open before they become contentious resulting in the employee feeling frustrated and quitting the job. Hence, all efforts must be made to identify sources of employee dissatisfaction and hygiene factors that must be taken care of for proper functioning of the employees. Ways to Mitigate Job Dissatisfaction Management theorists often emphasise the fact that one of the reasons for low employee morale in organizations is the fact that the employees and often feel alienated and cut off from the larger purpose. The contention is that the

employees feel themselves to be part of an impersonal setup and perceive themselves to be unable to make a difference to the whole unit. Hence, there is a need to involve the employees in the larger picture and provide them with perspective on the bigger picture. In engineering units with assembly line manufacturing, the engineer is often responsible for his or her part of the chain and is not in a position to relate to the bigger picture. Hence, there should be effective strategies like job rotation, interaction with other units, timely promotions and cross functional teams wherein the engineers would feel themselves to be contributing to the larger goal of the company. Employee Retention Strategies

The basic practices which should be kept in mind in the employee retentio

9)

1) Hire the right people in the first place. 2) Empower the employees: Give the employees the authority to g 3) Make employees realize that they are the most valuable asset o 4) Have faith in them, trust them and respect them. 5) Provide them information and knowledge. 6) 6. Keep providing them feedback on their performance. 7) Recognize and appreciate their achievements. 8) Keep their morale high. Create an environment where the employees want to work and hav

These practices can be categorized in 3 levels: Low, medium and high lev

Low Level Employee Retention Strategies 1) 2) 3) 4) 5) 6)

Appreciating and recognizing a well done job Personalized well done and thank-you cards from supervisors Congratulations e-cards or cards sent to spouses/families Voicemails or messages from top management Periodic days off for good performance Rewards ( gift, certificates, monetary and non-monetary reward

Recognizing professional as well as personal significant eve Wedding gifts Anniversary gifts New born baby gifts Scholarships for employees children

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Get well cards/flowers Birthday cards, celebrations and gifts Providing benefits

Home insurance plans Legal insurance Travel insurance Disability programs 8) Providing perks: It includes coupons, discounts, rebates, etc. Discounts in cinema halls, museums, restaurants, etc. Retail store discounts Computer peripherals purchase discounts 9) Providing workplace conveniences On-site ATM On-site facilities for which cost is paid by employees 10) laundry facility for bachelors 11) Shipping services Assistance with tax calculations and submission of forms Financial planning assistance Casual dress policies Facilities for expectant mothers

12) Parking 13) Parenting guide 14) Lactation rooms 15) Flexi timings 16) Fun at work

Celebrate birthdays, anniversaries, retirements, promotions, Holiday parties and holiday gift certificates Occasional parties like diwali, holi, dushera, etc Organize get together for watching football, hockey, cricket m Organize picnics and trips for movies etc Sports outings like cricket match etc Indoor games

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Occasional stress relievers

Casual dress day Green is the color day Handwriting analysis Tatoo, mehandi, hair braiding stalls on weekends Mini cricket in office Ice cream Fridays Holi-Day breakfast 18) Employee support in tough time or personal crisis Personal loans for emergencies Childcare and eldercare services Employee Assistance Programs ( Counseling sessions etc) Emergency childcare services

Medium Level Strategies for Employee Retention

1) Appreciating and recognizing a well done job 2) Special bonus for successfully completing firm-sponsored certif 3) Benefit programs for family support Child adoption benefits 4) Flexible benefits 5) Dependents care assistance 6) Medical care reimbursement 7) Providing conveniences at workplace 8) Gymnasiums 9) Athletic membership program 10) Providing training and development and personal growth opportu Sabbatical programs Professional skills development Individualized career guidance High Level Strategies 1) 2) 3) 4) Promoting Work/Life Effectiveness Develop flexible schedules Part-time schedules Extended leaves of absence

5) Develop Support Services 6) On-site day care facility etc. 7) Understand employee needs: This can be done through prope culture 8) Listen to the employee and show interest in ideas Appreciate ne taking 9) Show support for individual initiative 10) Encourage creativity 11) Encouraging professional training and development and/or person can be done through:

Mentoring programs Performance feedback programs Provide necessary tools to the employees to achieve their profess Getting the most out of employee interests and talents Higher study opportunities for employees Vocational counseling Offer personalized career guidance to employees

12) Provide an environment of trust: Communication is the most impo develop trust. 13) Suggestion committees can be created 14) Open door communication policy can be followed 15) Regular feedbacks on organizations goals and activities sh employees by:

Management communications Intranet and internet can be used as they provide 24X7 acces Newsletters, notice boards, etc.

16) Hire the right people from the beginning: employee retention is no the end. The process of retention begins right from the start of the recruitment proces 17) The new joinees should fit with the organizations culture. Th characteristics of the candidate should be in sync with the culture of the hiring organization.

18) Referral bonus should be given to the employees for successfu source of networking. 19) Proper training should be given to the managers on interview and 20) An internship program can be followed to recruit the fresh graduat PERFORMANCE APPRAISAL:

Performance Appraisal is the systematic evaluation of the performance of e understand the abilities of a person for further growth and development. Performance systematic ways which are as follows: appraisal

1. The supervisors measure the pay of employees and compare it with ta 2. The supervisor analyses the factors behind work performances of emp 3. The employers are in position to guide the employees for a better perf Objectives of Performance Appraisal Performance Appraisal can be done with following objectives in mind: 1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. 2. To identify the strengths and weaknesses of employees to place right men on right job. 3. To maintain and assess the potential present in a person for further growth and development. 4. To provide a feedback to employees regarding their performance and related status. 5. To provide a feedback to employees regarding their performance and related status. 6. It serves as a basis for influencing working habits of the employees. 7. To review and retain the promotional and other training programmes. Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified by following advantages:
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Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. A compensation package which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. Communication: For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways: a. Through performance appraisal, the employers can understand and accept skills of subordinates. b. The subordinates can also understand and create a trust and confidence in superiors. c. It also helps in maintaining cordial and congenial labour management relationship. d. It develops the spirit of work and boosts the morale of employees. All the above factors ensure effective communication. Motivation: Performance appraisal serves as a motivation tool.

Through evaluating performance of employees, a persons efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future. METHODS: Following are the tools used by the organizations for Performance Appraisals of their employees. 1. Ranking 2. Paired Comparison 3. Forced Distribution 4. Confidential Report 5. Essay Evaluation 6. Critical Incident 7. Checklists 8. Graphic Rating Scale 9. BARS 10.Forced Choice Method 11.MBO 12.Field Review Technique 13.Performance Test We will be discussing the important performance appraisal tools and techniques in detail. 1.Ranking Method The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group.

Advantages of Ranking Method a. Employees are ranked according to their performance levels. b. It is easier to rank the best and the worst employee. Limitations of Ranking Method c. The whole man is compared with another whole man in this method. In practice, it is very difficult to compare individuals possessing various individual traits. d. This method speaks only of the position where an employee stands in his group. It does not test anything about how much better or how much worse an employee is when compared to another employee. e. When a large number of employees are working, ranking of individuals become a difficult issue. f. There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgements. 2.Forced Distribution method This is a ranking technique where raters are required to allocate a certain percentage of rates to certain categories (eg: superior, above average, average) or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the number of categories and percentage of employees to be allotted to each category are a function of performance appraisal design and format. The workers of outstanding merit may be placed at top 10 percent of the scale, the rest may be placed as 20 % good, 40 % outstanding, 20 % fair and 10 % fair. Advantages of Forced Distribution a. This method tends to eliminate raters bias b. By forcing the distribution according to predetermined percentages, the problem of making use of different raters with different scales is avoided.

Limitations of Forced Distribution c. The limitation of using this method in salary administration, however, is that it may lead low morale, low productivity and high absenteeism. Employees who feel that they are productive, but find themselves in lower grade(than expected) feel frustrated and exhibit over a period of time reluctance to work. 3.Critical Incident techniques Under this method, the manager prepares lists of statements of very effective and ineffective behaviour of an employee. These critical incidents or events represent the outstanding or poor behaviour of employees or the job. The manager maintains logs of each employee, whereby he periodically records critical incidents of the workers behaviour. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers performance. Example of a good critical incident of a Customer Relations Officer is : March 12 - The Officer patiently attended to a customers complaint. He was very polite and prompt in attending the customers problem. Advantages of Critical Incident techniques a. This method provides an objective basis for conducting a thorough discussion of an employees performance. b. This method avoids recency bias (most recent incidents are too much emphasized) Limitations of Critical Incident techniques c. Negative incidents may be more noticeable than positive incidents. d. The supervisors have a tendency to unload a series of complaints about the incidents during an annual performance review sessions. e. It results in very close supervision which may not be liked by an employee.

f. The recording of incidents may be a chore for the manager concerned, who may be too busy or may forget to do it. 4.Checklists and Weighted Checklists In this system, a large number of statements that describe a specific job are given. Each statement has a weight or scale value attached to it. While rating an employee the supervisor checks all those statements that most closely describe the behaviour of the individual under assessment. The rating sheet is then scored by averaging the weights of all the statements checked by the rater. A checklist is constructed for each job by having persons who are quite familiar with the jobs. These statements are then categorized by the judges and weights are assigned to the statements in accordance with the value attached by the judges. Advantages of Checklists and Weighted Checklists a. Most frequently used method in evaluation of the employees performance. Limitations of Checklists and Weighted Checklists b. This method is very expensive and time consuming c. Rater may be biased in distinguishing the positive and negative questions. d. It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviours. PERFORMANCE APPRAISAL BIASES: Managers commit mistakes while evaluating employees and their performance. Biases and judgment errors of various kinds may spoil the performance appraisal process. Bias here refers to inaccurate distortion of a measurement. These are:

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First Impression (primacy effect): Raters form an overall impression about the ratee on the basis of some particluar characteristics of the ratee identified by them. The identified qualities and features may not provide adequate base for appraisal. Halo Effect: The individuals performance is completely appraised on the basis of a perceived positive quality, feature or trait. In other words this is the tendency to rate a man uniformly high or low in other traits if he is extraordinarily high or low in one particular trait. If a worker has few absences, his supervisor might give him a high rating in all other areas of work. Horn Effect: The individuals performance is completely appraised on the basis of a negative quality or feature perceived. This results in an overall lower rating than may be warranted. He is not formally dressed up in the office. He may be casual at work too!. Excessive Stiffness or Lenience: Depending upon the raters own standards, values and physical and mental makeup at the time of appraisal, ratees may be rated very strictly or leniently. Some of the managers are likely to take the line of least resistance and rate people high, whereas others, by nature, believe in the tyranny of exact assessment, considering more particularly the drawbacks of the individual and thus making the assessment excessively severe. The leniency error can render a system ineffective. If everyone is to be rated high, the system has not done anything to differentiate among the employees. Central Tendency: Appraisers rate all employees as average performers. That is, it is an attitude to rate people as neither high nor low and follow the middle path. For example, a professor, with a view to play it safe, might give a class grade near the equal to B, regardless of the differences in individual performances. Personal Biases: The way a supervisor feels about each of the individuals working under him - whether he likes or

dislikes them - as a tremendous effect on the rating of their performances. Personal Bias can stem from various sources as a result of information obtained from colleagues, considerations of faith and thinking, social and family background and so on. 7. Spillover Effect: The present performance is evaluated much on the basis of past performance. The person who was a good performer in distant past is assured to be okay at present also. 8. Recency Effect: Rating is influenced by the most recent behaviour ignoring the commonly demonstrated behaviours during the entire appraisal period. Therefore while appraising performances, all the above biases should be avoid. Top of Form