You are on page 1of 7

Job Satisfaction of managerial employees in manufacturing sector: A case study of

Apollo Tyres

Project Report

submitted in partial fulfillment for the award of degree of

Master of Business Administration
Indira Gandhi National Open University


Vijay Kumar

under the guidance of

Prof. Sameer Gupta

Indira Gandhi National Open University

March 2017
Job Satisfaction of managerial employees in manufacturing sector: A case study of
Apollo Tyres

Every organization is struggling to remain sustainable and competitive. To implement this

aspect, strategic planners and human resource professionals collaborate more intensively in
designing strategies that are productive and humane. Marquardt (2004) pointed out that the
organizations aiming at maximum productivity and quality have never encountered so many
challenges. However, the situations are changed and challenges are identified as the
opportunities to grow. In 21st century, the success of the organization lies in implementing
focused and integrated human resource processes and systems.
The enormous transformations processes that take place in social, political and economic
regime drive the need for organization to become more responsive to the rapid development
of global strategies and local operational levels. Among the various formal intentions,
performance evaluation and management system is the one of the important aspects that
relates to the satisfaction of employee(DelPo, 2005). The satisfaction of employees on
performance evaluation increases when the gap between exceptions and outcome converges.
To have the right expectations, knowledge about the performance measurement system is
essential. The various aspects of performance appraisal system in a private limited company
shall be studied. The organization selected for the study is Apollo Tyres Limited

Performance appraisal is the process of obtaining, analyzing and recording information about
the relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the
employee. According to Flippo, a prominent personality in the field of Human resources,
"performance appraisal is the systematic, periodic and an impartial rating of an employees
excellence in the matters pertaining to his present job and his potential for a better job."
Performance appraisal is a systematic way of reviewing and assessing the performance of an
employee during a given period of time and planning for his future(Andrs, Garca-Lapresta,
and Gonzlez-Pachn, 2010).
Employee satisfaction is the terminology used to describe whether employees are happy and
contented and fulfilling their desires and needs at work. Many measures purport that
employee satisfaction is a factor in employee motivation, employee goal achievement, and
positive employee morale in the workplace. Factors contributing to employee satisfaction
include treating employees with respect, providing regular employee recognition,
empowering employees, offering above industry-average benefits and compensation,
providing employee perks and company activities, and positive management within a success
framework of goals, measurements, and expectations.
Appraisal is the assessment of an individual performance in a systematic way. The
performance is generally measured against such factors as knowledge about job, quality and
quantity of output, initiatives, leadership abilities, supervision, dependability, co-operation,
judgment, versatility, health etc. The assessment of an employee is expected to cover both
past performance and potentials that can be drawn in future. Alternate terms used
for performance appraisal (PA) are performance review, performance evaluation, (career)
development discussion, or employee appraisal.

Employee satisfaction is a measure of how happy workers are with their job and working
environment. Keeping morale high among workers can be of tremendous benefit to any
company, as happy workers will be more likely to produce more, take fewer days off, and
stay loyal to the company. There are many factors in improving or maintaining high
employee satisfaction, which wise employers would do well to implement.

Employee satisfaction is related to the performance appraisal system in the company. In the
appraisal system, strengths of the employee shall be recognized and rewarded to improve the
satisfaction. Similarly, the weaknesses shall be pointed out in the appraisal system for
education and career development. Human resource is vital component of company. They are
the wealth of the organization utilized for achieving goals. In the present complex business
environment, no business and organization survive and grow without healthy human
resources. The success of an enterprise depends on the caliber of person working in the
company. The human resource management refers to systematic approach to the problem of
selecting, training, motivating and retaining personnel in an organization. Employee is the
most important asset of the organization. Planning for human resource is an important
managerial function. It ensures adequate supply, proper quantity and quality, as well as
effective utilization of human resource. An organization will determine its manpower
resource from which requirements are met. If sufficient manpower is not available, the work
in company will suffer. Under developed countries are suffering from shortage of trained
managers. Job opportunities are available in these countries but proper personnel are not
available. These countries import skills from other countries. Therefore, in order to meet
human resource needs, organization will have to plan in advance about the requirements and

Employee satisfaction can be defined as the extent of positive feelings or attitudes that
individuals have towards the job. High employee satisfaction mans that employee really likes
the job, feels good about it and values the job highly. There are three important dimensions to
employee satisfaction. Employee satisfaction cannot be seen, it can only be inferred. It relates
to ones feeling towards the job.

Employee satisfaction is often determined by extent of outcome meet the requirement. If the
employee working in the organization feels that they are working much more than others in
the department, but receives only lower rewards, they will be dissatisfied and have negative
attitudes towards job, superior and co-workers. On the other hand, if they feel that they are
being paid fairly and treated well by the organization, they will be satisfied with the jobs and
will have positive attitude towards the job.

The Indian tyre industry, in comparison to its western counterparts, lags behind in radial
trends. Use of radial tyres for passenger vehicle tyres were maintained at 98%, while for
commercial vehicle segment it was pegged at 22% a significant growth was observed in the
last year.
The top 5 players Apollo, Birla, Ceat, JK Tyres and MRF command over 70% of the
market, with product offerings across all major categories. India continues to be driven by the
commercial vehicle tyre segment, where truck and bus tyres contribute as much as 55% of the
industrys revenue. The replacement market accounts for 70% of the revenues, though the
original equipment segment continues to play a crucial role in terms of volumes and ensuring
product acceptability in the consumers mind.
The annual production of rubber from India is about 6 lakh tones and over 90 percent of the
production is from southern part of Kerala. Indian rubber industry comprises of 32 tyre
factories, about 250 medium scale units and 6000 small-scale units. Small scale units are
producing every conceivable rubber product from toy, balloons etc. The annual turnover of
the industry is INR 20,000 crores. The Indian competitors are MRF, JK etc. Based on the
production, Apollo is in second position.
Apollo Tyres Ltd, with its corporate headquarters in Gurgaon, India, is in the business of
manufacture and sale of tyres since its inception in 1972. Over the years, the company has
grown manifold, establishing its footprint across the globe. The company has manufacturing
presence in Asia, Europe and Africa, with 9 modern tyre facilities and exports to over 118
When Apollo Tyres was established in 1972, it was a single brand enterprise. Over the years,
as the organization grew and expanded its footprint across geographies, several brands either
joined or were born into its fold. Today, the company owns 6 key brands Apollo, Dunlop
(brand rights for 32 African countries), Kaizen, Maloya, Regal and Vredestein.

Work performance appraisal systems assess the employee's effectiveness, work habits and
also the quality of the work produced. The research methodology used is to evaluate the
accuracy and effectiveness of the appraisal instrument and its influence on employee
satisfaction. The quantitative data is collected by questionnaire method from a convenience
sample. The responses are analyzed and arrived at conclusions.

Apollo Tyre Limited is a very large organization having worldwide presence. According to
the statistics published for the month of October 2016, the daily production at Apollo Tyre
Limited, Kalamassery is 66.64 MT against the target of 94.93MT. The gap between the
realized and target daily production is attributed not only to the technical reasons, but also to
the level of satisfaction of employees. The performance appraisal system is one of the
components that influence the employee satisfaction. The influence of performance appraisal
system of Apollo Tyre Limited, on employee satisfaction is not being studied earlier in the
company. Present study attempts to fill this lacuna.
Statement of the problem

The study is aims at to evaluate whether the employee is satisfied in the present performance
appraisal system at Apollo Tyre Limited.
Research objectives
The objectives are to study: -
1 The effectiveness of the communication describing purpose of performance appraisal
2 The fairness in present performance appraisal.
3 The capability of appraisal system for reflecting strengths of employee
4 The purpose of performance appraisal (promotion/ pay fixation/ reward/ career
development/ education).
5 The usefulness of performance appraisal system as a management tool.
6 The potentiality of the performance appraisal system to build team spirit and
7 The effectiveness of conveying corrective actions/ feedback.
8 The employee satisfaction on the performance appraisal procedure and

The questionnaire based survey shall be used in this study. The data collection and analysis is
shall be carried-out based on statistical theories. The questionnaire shall be issued in person.
In statistics and survey methodology, sampling is concerned with the selection of a subset of
individuals from within a statistical population to estimate characteristics of the whole
population. Two advantages of sampling are that the cost is lower and data collection is faster.
Probability sampling shall be used and is considered as the representative of the population. It
provides the most valid or credible results because they reflect the characteristics of the
population from which they are selected.
Data collection

The information shall be collected by using questionnaire method. The questionnaire shall be
composed of ten questions relating to the parameters, namely, communication, equality,
objectivity, social behaviour, recognition, monetary benefits and career development. The list
of manager level employees available in the scheduled data is collected from human resource
office. The questionnaire shall be given in hand to these employees.
Method of data analysis

The statistical analysis of the data collected based on the questionnaire shall be carried out.
The frequency of the responses is determined and compared. The score shall be assigned to
the options strongly agree, agree, nether agree nor disagree, disagree and strongly disagree
are 5 to 1. The minimum, maximum, mean, standard deviation and analysis of variance of the
scores of the responses corresponding to each statement shall be computed and reported in
this research. The descriptive statistical analysis shall be carried out.

Anderson, E.W. and Fornell, C. (1993) "A Customer Satisfaction Research Prospectus" In
Richard Oliver and Roland Rust (eds.), Frontiers in Services Marketing. CA: Sage,
Newbury Park.
Andrs, R.D., Garca-Lapresta, J.L. and Gonzlez-Pachn, J. (2010) Performance appraisal
based on distance function methods European Journal of Operational Research, Vol.
207, No. 3, December , pp. 1599-1607.
Aswathappa, K. (2005) Human resources personnel management, 4e, Tata McGraw Hill,
New Delhi
Bhattacharyya, D.K. (2011) Performance management system and strategies Pearson
Education, New Delhi.
Carrol, S. and Schneir, C. (1982) Performance appraisal and review system: The
identification, measurement and development of performance in organizations Scott
Foresman and Co., Glenview, Illinois.
DelPo, A. A. (2005) The performance appraisal handbook Legal & practical tools for
managers Nolo Publications, Canada.
Locke, E. (1976) The nature and causes of employee satisfaction In M. D. Dunnette (Ed.).
Handbook of industrial and organizational psychology, Rand McNally, Chicago.
Marquardt, M. (2004) Optimizing power of action learning Davies Black Publications,
Rao, T.V. (2004) Performance management and appraisal systems HR tools for global
competitiveness Response Books, New Delhi.