Harmonizing to Mayo, 2000, Human resources direction is an of import map of a house because the machines can be easy directed, repaired and utilized but employees are populating existences with emotions and biass and can non be easy directed, repaired and utilized. In twentieth century the theoretical every bit good as practical facets of the Human resources direction got a scientific dimension, the consistent attempts of the direction to better the public presentation of the house has resulted in the public presentation rating of human resources or employees. The employees are the edifice blocks of a house and the faulty block will deform the full house so it is the duty of the direction to determine these edifice blocks harmonizing to the demands. The public presentation assessment system is non new construct it has an age old history to state but the modern assessment system has evolved in the mid of twentieth century.
The public presentation assessment system, which integrates many sections of the house, is aimed at the sweetening of public presentation of the employees. The employees who are non hiting in the public presentation assessment period are required to undergo preparation and accomplishment development programme. The public presentation assessment was believed to be a motive factor but in practise many surveies have shown that it is non ever move as a motivational factor but sometimes has de-motivational effects on the appraised. The system which formulates the regulations and ordinances to actuate the employees to execute better in the following appraisal period can be called as a best suitable system for that peculiar house because there is no optimal method or process to be followed in a public presentation assessment system in a house. ( Nishad, 2005 )
The motive and de-motivation factors may be present in the same public presentation assessment system. The assessment may be motivational to some employees meanwhile it is de-motivating for others. The combined consequence is a general thing in all assessment system but the proportion of motive to de-motivation factors should be high otherwise the full aim of the Performance assessment will be failed. ( Seong and Lewis, 2009 )
There are many factors which affect the consequence of public presentation appraisal the chief factor is the appraisal process and the rating standards, the following of import factors are societal, cultural, economical and political facets of the employees. The societal and cultural facets are known as lasting factors which can non be nullified so it becomes the responsibility of the employer to be after a PA system which suits the socio-cultural facets of the employees in add-on to the due consideration for the political every bit good as the economic sciences factors. ( Nishad, 2005 )
1.2 Background and justification of the survey
1.2.1 Background of the Study
Apollo Tyres Ltd is a transnational company holding many divisions all around the universe. It is a private sector company with limited liability. The public presentation path of ATL has attracted many foreign houses to originate joint venture with this company in UK, US and African continent. The public presentation of this company and the varied merchandise classs it offers to the clients are the key for its success. ( Company profile, 2010 )
Apollo Tyres Ltd is emerging as a planetary Sur industries and it finds its strength in the handiness of stuffs and labor at a lower monetary value than its rivals. The one-year gross for 2009 fiscal twelvemonth was 1.2 Billion USD. The chief beginning of income is form the domestic production ; late the house has acquired many other international houses such as the Dunlop Tyres in 2006 and VBBV of Netherlands every bit good as the Russia ‘s largest Sur fabricating company Amtel-Vredestein NV. ATL has a direct market scheme and has 2500 salesroom all over the universe ; bulk of it are in India. There are 4000 franchises India and more than 100 traders internationally. ( Company profile, 2010 and Stanley, 2009 )
The globalization has brought many challenges to ATL as new transnational companies have entered the wellness attention sector in India. ATL has coped with challenges with diversified merchandise program and for that it has invested billion of Indian Rupee, as a consequence the company has major market portion in India. It is a affair of recognition that about 10 % of Tyre Products available all over universe belong to ATL because of the export activities of the company. The company is so successful because of the work force it got. ( Company profile, 2009 )
The workers are being provided by good installations such as good working environment, good wage, flexible clip agenda and vacation and gay allowancesaˆ¦etc. The Management has already supplying them a conducive pension fund and insurance strategy for the employees. The educational bookman ships and instruction installation up to high school for the kids of employees are provided by the company itself, apart from the residential installation. ( Company profile, 2010 and Stanley, 2009 )
The one-year study from fiscal twelvemonth 2006 to 2009 has proved that the productiveness has been acquiring decreased twelvemonth by twelvemonth. In 2006 it was 2.6 % lessening and in 2009 it has reached the dismaying 18 % lessening. The direction has a public presentation assessment system since 1971 and reding programme every bit good as accomplishment development programmes are provided for the underperformed employees. Still the productiveness graph records a downward growing. And this proposed survey indents to happen out the effectivity and impact of the assessment system on the employees and the productiveness. ( Stanley, 2009 )
1.2.2 Justification of the survey
Every administration around the universe has vision and mission, whatever the doctrine behind the vision and mission at that place will be a common factor in the doctrine improved public presentation. The improved public presentation might convey net income to the administration. The overall development of the administration may be one side of the ‘improved public presentation ‘ of the house. the improved public presentation means the enhanced public presentation of the its assorted sections such as Human resources direction, fiscal direction, production and operations direction, gross revenues direction, selling direction, client attention managementaˆ¦etc. In all of these sections the human factor is a affair of serious consideration. The right people for the right occupation make all the differences. ( Taylor, 2001 )
All the houses have some or other method to step and analyze the public presentation of it. The analysis of this public presentation and the actions programs to be taken to better the public presentation are of great importance of every house. To pull off the public presentation assessment of its employees the houses have a separate assessment section under the human resources section. The maps of assessment section are integrated with other section such as fiscal section to organize the assessment wagess and penalties, if any. ( Qureshi, 2005 )
The public presentation assessment is a complicated adherent of survey because the assessment consequence might non be the intended and false motive of the employees. The surveies have revealed that in many houses around universe the assessment procedure and remedial steps have resulted in the declined public presentation of the employees bespeaking the de-motivational consequence of the assessment system. ( Nishad, 2005 )
The assessment methods and standards should be defined peculiarly for each house because the assessment consequences and the impact of the employees are really much depended on the external internal factor of the house. The external factors such as socio-cultural traits of the employees, the economic and political state of affairs of the geographical location of the firmaˆ¦etc. The internal factors mean the nature of the occupations, the leisure and pleasance in the occupation, the on the job conditions, organizational cultureaˆ¦etc. ( Nishad, 2005 )
The assessment theories when applied to the Asiatic states the consequence may be lay waste toing because the western assessment theories have a great restriction in the Asiatic states because of the societal and cultural difference of the Asiatic people. So it is imperative to analyze the assessment system on the footing of local factor which influence the direction and the organizational behavior of the employees. ( Taylor, 2001and Nishad, 2005 )
In the proposed survey, ATL- Kalamassery, in the Kerala province, India, is taken because the political and the economical state of affairss of the province. The Kerala is universe celebrated for the assorted political political orientations such as communism and socialism. The economic retardation of the province is besides factor to take this unit of ATL for the survey. Harmonizing to Taylor ( 2001 ) the social- cultural traits of the employees in India are really much different from the western states. The societal behavior of Indians is sometimes unacceptable societal etiquettes for westerners. The societal bond and dealingss are different from that of the western states. The proposed survey would wish to analyze the impact of the factors in the assessment system and how far the appraisal system of ATL can pull off its employees in the betterment of public presentation.
1.2.3 Literature Review
Performance assessment has a long history it emerged with the civilization. When the people are interacting to each other in an orderly manner so it may necessitate some Torahs to regulate the behavior of the people in the group. This preliminary jurisprudence formation is called “ grundnorm ” which means the base norm, and these base norms were designed to command the behavior and besides the distributed responsibilities. The distribution of responsibilities include assorted plants ; subsequently on when these plants required efficiency so public presentation of the person and the groups were began to analyze. So it can be said that the public presentation assessment was at that place in the crude societies and in the class of clip the application and the method of rating has been changed a batch. ( Rajeev, 2000 )
Harmonizing to Mayo, ( 2000 ) , in the modern universe, where everything is measured in clip, the public presentation rating has great importance. The public presentation of each member of a group is of import for the intent of public presentation rating. After the industrial revolution new direction theories came in to being and many of them went in to limbo, those survived gave accent on the rating of the public presentation on the footing of scientific standards. The industrial universe attempts to actuate its adult male power so that better public presentation can be obtained from each of the employees.
The motivational facet of the public presentation assessment has been capable for deep rooted arguments which are based on the many subjects of survey such as psychological science, anthropology, sociology… etc. The complexness of the capable affair indicates the elaboratenesss involved in the public presentation assessment procedure and its impact on the employees. ( Nishad, 2005 )
The motivational theories such as Vroom ‘s anticipation theory and hygiene theory suggest that the employees are non motivated by giving them better installations or salary but there is a mental dimension such as grasp, acknowledgment, calling growing… etc. The modern assessment theory which is based on these constructs where as the classical theory of public presentation assessment merely back up the hindrance method, that is, the employees who are executing good will be paid better and those who are non will be sacked. This attack has many loop holes such as the mental strain during the appraisal period the employees have and the deficiency of trueness from the portion of the employees and it was proved to be uneffective in actuating the employees. ( Rajeev, 2000 )
The modern attack, meanwhile, support more over a indulgent attack towards the employees. The basic doctrine is to understand the basic job in the underperformance of the employees. The root cause may non be related to the employment or it may be related of some physiological jobs, whatever it may the director or the supervisor who is in charge of the assessment procedure is responsible to understand it. The guidance procedure is designed to understand the jobs and give suggestions to work out the jobs of the employees. The preparation and betterment programmes are besides conducted in many modern industries to increase the public presentation degree of the employees. ( Rajeev, 2000 )
The public presentation assessment is normally begins with the preparation of the standards on which each and every employee will be analysed. The standard formation is really complex and will be alone harmonizing to the nature of employment every bit good as the doctrine of the direction. The standards so communicated to the employees and a clip period will be given to them to speak up about the standards and after the rating of the suggestions from the assorted beginnings the direction may alter the standards or stick on with it. The assessment procedure will get down and the each employee will be informed about the appraisal period. The appraisal consequence will be published publicly and remedial steps will be taken thenceforth. The remedial steps include the preparation and betterment programme and even the remotion of the underperformance signifier the employment. ( North, 2006 )
The job with the public presentation assessment begins when the employees are instructed to undergo the remedial steps. Harmonizing to Nishad ( 2005 ) , the societal and cultural factors of the employees every bit good as the political strength are of import factors that dictate the assessment procedure. Unlike the western universe in Asiatic states the political strength of the employee ‘s brotherhoods is much stronger and the labor Torahs are much lenient to back up the employees. The assessment system in the Asiatic states shall non follow the processs of the western houses. The motivational factors and the de-motivational factors are different and contradictory in western and eastern universe. The factors which motivate a westerner may a factor for de-motivation in Asiatic states.
Harmonizing to Taylor ( 2001 ) , the social-cultural facets of the employees have important consequence on the assessment system in the Asiatic states. The trade unionism and the political disposition of these brotherhoods are other factors which will impact the assessment system adversely. The behavioral form of the employees have to be analysed before the explicating the assessment scheme.
The political doctrine of the political parties in Kerala varies from left-of-center political orientation to the right-winger capitalist economy. The political parties strongly back up one or the other political political orientations ; communism and socialism are the major doctrines which are being followed in the province for more than a century. The trade brotherhoods of the province are affiliated to anyone of the political parties and the trade brotherhoods enjoys the protection of labour Torahs of the land. ( Ashok, 2007 )
Situation in the ATL is non different from the political state of affairs of the province. The political parties have a great influence on the trade brotherhoods and the lives of the employees. Every employee in the ATL is affiliated to any one of the political parties. This is fundamentally a endurance scheme for the employees every bit good as the trade brotherhoods. ( Ashok, 2007 )
The corporate bargaining of the trade brotherhoods and the menace of work stoppages hampered the growing of many industries in the province. The current state of affairs in the house is besides same and the direction have to discourse and make in a consensus to implement any alteration in work agenda or in fillip or in the wage. The strength of the direction is in the bargaining power and that of the trade brotherhoods is in the integrity and menace to strike. ( Uppal, 2009 )
The public presentation assessment system of any industry is under the examination of the trade brotherhoods, the public presentation standards should be passed by the trade brotherhood so that it can be smoothly tally. The remedial steps are besides supervised by the trade brotherhoods and any action which will be a possible menace will be strongly resisted by the brotherhoods. ( Uppal, 2009 )
The present survey purposes to analyze the Performance Appraisal System of the Apollo Tyres Ltd and the motivation every bit good as the de-motivating effects of the assessment system on the footing of the socio-cultural and politico-economical state of affairss and to propose the schemes and processs to better the public presentation of the employees.
( A ) Null hypothesis H0
“ Impact of a public presentation assessment system on the employees is depended on the societal, cultural, political and economic environment of the house and the employees ”
( B ) Alternative Hyposthesis
H1: “ Impact of a public presentation assessment system on the employees is NOT depended on the societal and Cultural environment of the house and the employees ”
H2: “ Impact of a public presentation assessment system on the employees is NOT depended on the political and economic environment of the house and the employees ”
The void hypothesis is “ statistical hypothesis that is tested for possible rejection under the premise that it is true ( normally those observations are the consequence of opportunity ) . The construct was introduced by R.A A.A Fisher ” ( Gonick and Smith, 2006 )
In this proposed survey, the void hypothesis considers the independent variables such as societal, cultural, political and economic factors of the environment in which the house operates. The void hypothesis is assumed to be trued based on the assorted secondary informations. The alternate hypothesis is divided in to two portion one with the factors such societal and cultural factors and the 2nd one is political and economic factors.
Harmonizing to Malhotra ( 2008 ) , the societal and cultural factors can non be separated as it is has strong influence on each other. The societal factor is formed based on the cultural factor and the cultural is nurtured and propagated through societal fortunes. Harmonizing to Cumbler ( 2003 ) , The political doctrine is ever related with the economic system of the state, the political association is more over has direct influence on the economic system of the people. It is notable that the communism and other laborer favoured doctrines are booming the 3rd universe states because of the hapless economic conditions. Once these states become developed states the left-of-center doctrines will discontinue to be in class of clip.
1.2.6 Primary Aims of the Study
1. To analyze the public presentation assessment system in general and peculiarly in the Apollo Tyres Ltd ( ATL )
2. To understand analyse the significance of the public presentation assessment system in accomplishing the ends and aims of a house
3. To analyze and analyze the passage of public presentation assessment from conventional to modern and the major factors influenced the passage
4. To understand the motivation and de-motivating consequence of the assessment system on the employees in general and peculiarly in the ATL
5. To analyze consequence of societal and cultural factors and political and economical factors of the employees on the assessment system in general and peculiarly in the ATL.
1.2.7 Research Questions
To carry through the primary aim of the survey the undermentioned research inquiries are proposed
Performance Appraisal its significance and definitions
What are the significance of public presentation rating system in carry throughing the organizational aim and ends?
What are the differences in the modern every bit good as in the conventional assessment system?
What is the relation between the motive of the employee and assessment system?
How make the socio-cultural and politico-economical factors of the employee affect the Appraisal System in a house?
Does the public presentation assessment system in the Apollo Tyres Ltd have a motivational consequence on the employees?
What are the schemes that the ATL follows in the assessment procedure to heighten the public presentation of the employees in the peculiar socio-cultural and politico-economical background?
2. Research method and Approach
The research method and attack is devised to analyze and understand Performance Appraisal System in the Apollo Tyres Ltd ( ATL ) . The survey involves the sentiment of the employees and the direction on the present assessment system in ATL. The interview method will be used to understand the direction side of narrative on the Performance Appraisal system in the ATL. The questionnaire method is used to understand the employee side narrative. The literature reappraisals are depended to do a frame work on the theoretical construct of the survey. Assorted statistical methods will be used to analyze the informations and it will be explained on the footing of relevant literature. The span of the research will be six months. In the month of March, 2010 the survey will be commenced and the concluding study will be submitted in September, 2010.
2.2 Research Methodology of the survey
The research methodological analysis of the survey is designed to understand the Performance Appraisal System in the ATL and the impact of present system on the employees.
Harmonizing to Kothari, ( 2002 ) the research method suited for a survey where the relevant literatures every bit good as the primary informations are used the two research methods are by and large used such as the exploratory methods and the constructive methods. The constructive methods are used when the capable affair of the research needs some frame of mention to manage the full research consequences. For illustration, in international selling research, sometimes, the cultural traits of clients have to be taken the footing or frame of mention of the survey because this trait will impact all the research inquiries under survey.
2.2.1 Exploratory research methods
Exploratory research methods are wildly used in the secondary informations accretion. In this present survey the literature reappraisal will be used to understand and to explicate the theoretical frame work of the full survey. The history of the assessment system, the relevancy of the assessment system, the motivational every bit good as the de-motivational facets of the PA system, the societal and cultural factors every bit good as the political and economic factors will be extensively studied through relevant literature. The relevant beginnings will be explored to understand the capable affair of the survey profoundly therefore explorative research methods. ( Kothari, 2002 )
2.2.2 Constructive Research Methods
Constructive research methods are used when the research consequence can non be generalised due the influence of dominant factors in the survey. ( Kothari, 2002 )
In the present survey the public presentation assessment system is analysed based on the societal and cultural facet of the employees. The political and economical facets are besides considered for the survey because all these factors have a dominant consequence on the survey. In other words, without taking these factors under consideration the research will be completed. The geographical location of the unit under survey is in the Kerala province, India, which is an economically backward topographic point and the political doctrines, such communism and socialism have formidable impact on the people populating at that place. The societal and cultural factors are different from the western universe and the societal bonds and household coherences are really of import facets this civilization. The societal interaction and etiquettes are different from that of the western universe so the theories applicable in the western universe no longer stand good in these state of affairss. So it is compulsory for this survey to organize a frame work on these factors to analyze the capable affair of the research.
2.2.3 Questionnaire and interview method
Interview and questionnaire methods are by and large used to roll up the informations foremost manus ( Kothari, 2002 ) . In this survey these methods are preferred to acquire the information on the assessment system of ATL and the impact of such system on the employees. The questionnaires will be used to acquire the sentiments of the employees on the public presentation assessment system every bit good as the assessment wagess and the methods of the PA system.
Harmonizing to Saunders et al. , 2003 the unfastened terminal interviews are utile to garner informations in a larger position. The unfastened terminal interview inquiries and the replies to it will give the interviewer the chance to inquire other relevant inquiries to the interviewee based on the old reply and can acquire more inside informations from the interviewer.
The interview inquiries are unfastened terminal in nature and the inquiries will be asked to the functionaries of ATL. Harmonizing to the replies of these functionaries other related inquiries will be asked to acquire more comprehensive position on the topic. This method is used to interview the functionaries merely because there are really few in figure.
The questionnaire will be distributed to the employees and the responses will be collected back within one month of distribution. This method is adopted because in this unit there are 2100 employees and questioning all them will non be possible due to clip constrain.
2.3 Method of Study
The proposed survey requires both primary informations every bit good as the secondary informations to run into the aims of the survey. The method of survey therefore designed to roll up the primary every bit good as the secondary informations. The primary informations will be collected from the direction staffs and from the employees. The secondary informations will be collected by mentioning books, Articles, the e-journals and paper diaries, web sitesaˆ¦etc.
2.4 Primary informations aggregations methods
Primary informations will be collected from the employees and the directors of the ATL straight. The employees will be distributed the self-structured close terminal questionnaire to be answered and 2 hebdomads clip will be given to them to make full it and return. Managerial staff will be interview with unfastened terminal interview inquiries. Harmonizing to Saunders et al. , 2003, the unfastened terminal inquiries are really disposed for questioning a little sample in a survey it besides really effectual because the unfastened terminal inquiries will supply adequate chance to inquire more inquiries based on the reply for the old inquiries and clear up the uncertainties on the statements if any.
2.5 Secondary Data aggregation methods
The secondary informations aggregation is extremely recommended information assemblage procedure in any research work. The research worker should be persevering plenty to choose disposed resources and updated information. In direction subjects the informations aggregation should be done through updated resources and latest editions books, articles and diaries because new construct and theories and its applications are emerging twenty-four hours by twenty-four hours and it is the duty of the research worker to happen out the up dated information for his research work. ( Kumar, 2005 )
The secondary informations aggregation method includes entree to the relevant and updated books, diaries and articles. The web site will be extensively used if the genuinenesss of the sites are known. The university library and on-line installation will be extensively used for this research. The information sing the company profile will be gathered though company web site and mentioning the ISO manual of ATL and the one-year study which is available in the web site of ATL.
2.6 Method of Data analysis
In the proposed survey the primary informations every bit good as the secondary informations will be used to make a decision and the recommendations. The primary informations will be analysed with assorted statistical tools such as qis square trial, ANOVA aˆ¦etc and the discrepancy analysis will be done to understand the impact of the statement with the literature reappraisal. Both the primary and secondary informations will be at the same time used to construe the consequences of the research.
2.7 Scope, Ethics and Limitation of the Study
The proposed survey is on the public presentation assessment system and the impact of it on the employees. The range of the research includes the analysis of the assorted factors such as the social-cultural facets and the political-economic factors of the environment in which the Apollo Tyres Limited is runing. The societal and cultural facet of the employees will be analysed and the suited scheme for the assessment system will be studied. The political and economic state of affairs of the employees will be analysed and the public presentation assessment attack of the direction will be studied based on these factors. The range of the research will be on the preparation assessment scheme which will be suited under the assorted research variables. The motivational and the de-motivational impact of the assessment system will be analysed based on the four above mentioned facets of the employees.
Harmonizing to Kothari ( 2002 ) , a research survey will supply accurate consequences and will supply a valid decision if it has followed a research morals. In this proposed survey the permission to make the research is obtained from the direction of Apollo Tyres Limited, Kalamassery Unit, Kerala province, India. The study among the employees of the ATL will be conducted confidentially. The questionnaire will non incorporate any whereabouts of the employees merely the service, age, gender and places. It will non inquire for any personal inside informations such as the reference, name or any name of alone station. The research will seek the written permission from the direction for the interview of the Management staffs so the grounds of sentiment can be adduced in the Dissertation. Relevant literature will be collected and analysed to garner the cognition base on the capable affair so that the research should hold a through theoretical support.
Short span of clip is job in the research as the clip period is limited to three months. The information aggregation and the analysis of the primary informations will be done with maximal velocity and there is a opportunity the responses of the employees is non 100 % true to the fact. The literature available on the public presentation assessment is legion and reading the relevant one requires great clip. The limited clip may restrict the figure of literature that can be analysed by the research worker.
The information will be gathered through research assistance wing of Indian Management Association ( IMA ) . The representative of IMA will be hired for the intent of the informations aggregation ; the cognition bound of the individual on the research aim may turn out to be a job in interpreting the questionnaire to the employees.
The cooperation from the portion of the employees and other direction staff is indispensable for the success of the research. The research will endure if there is limited cooperation from the staffs of the Apollo Tyres Limited.
2..8 Conclusion and Recommendations
The trade unionism and the political disposition of these brotherhoods are other factors which will impact the assessment system adversely. The behavioral form of the employees have to be analysed before the explicating the assessment scheme. The political doctrine of the political parties in Kerala varies from left-of-center political orientation to the right-winger capitalist economy. The political parties strongly back up one or the other political political orientations ; communism and socialism are the major doctrines which are being followed in the province for more than a century. The trade brotherhoods of the province are affiliated to anyone of the political parties and the trade brotherhoods enjoys the protection of labour Torahs of the land. Situation in the ATL is non different from the political state of affairs of the province. The political parties have a great influence on the trade brotherhoods and the lives of the employees. Every employee in the ATL is affiliated to any one of the political parties. This is fundamentally a endurance scheme for the employees every bit good as the trade brotherhoods. The corporate bargaining of the trade brotherhoods and the menace of work stoppages hampered the growing of many industries in the province. The current state of affairs in the house is besides same and the direction have to discourse and make in a consensus to implement any alteration in work agenda or in fillip or in the wage. The strength of the direction is in the bargaining power and that of the trade brotherhoods is in the integrity and menace to strike. The public presentation assessment system of any industry is under the examination of the trade brotherhoods, the public presentation standards should be passed by the trade brotherhood so that it can be smoothly tally. The remedial steps are besides supervised by the trade brotherhoods and any action which will be a possible menace will be strongly resisted by the brotherhoods
The recommendation of this proposed survey is based on the literature reappraisal. Apollo Tyres Limited is runing in a politically active environment, the economic state of affairs of the employees besides average and the influence of the political parties on the trade brotherhoods is strong therefore it is recommended that the house should explicate an assessment scheme with the consent of the trade brotherhoods so that it can be implemented with opposition from the employees. The societal and cultural facets of the employees is against the guidance procedure and remedial steps such as demotion or salary cut or remotion from the service so it will be good for ATL to concentrate on such remedial steps which ensures better public presentation such a preparation and development programme. The guidance procedure has non use in the present state of affairs so it can be avoided. The appraisal standards can be modified and the clip agenda can be reorganised to guarantee a higher productiveness. The pecuniary wagess can be maintained for the employees for their higher public presentation.
2.9 Gantt Chart
Primary informations analysis
Changes in the literature reappraisal
First bill of exchange
Second bill of exchange
Concluding version entry