Satisfaction of managerial employees on performance appraisal system in Apollo Tyres Limited, Kalamassery

Project Report

submitted in partial fulfillment for the award of degree ofMaster of Business Administration

ofCochin University of Science and Technology

by

JOB THOMASReg. No. 85301011

under the guidance of

Prof. Dr. Sebastian Rupet Mampilly

School of Management StudiesCochin University of Science and Technology

Cochin, Kerala, IndiaPIN 682 022

March 2013

DECLARATION

I, Job Thomas do hereby declare that this project report entitled “Satisfaction of

managerial employees on performance appraisal system in Apollo Tyres Limited,

Kalamassery” is a bonafied record of the work done by me under the guidance of Prof.

Dr. Sebastian Rupet Mampilly in partial fulfillment for the award of degree of Masters of

Business Administration of Cochin University of Science and Technology.

I also declare that this thesis report has not been submitted by me fully or partially for the

award of any degree, diploma or title or recognition before.

Place: Kochi-22Date: 14th April 2013

JOB THOMAS

ACKNOWLEDGEMENT

First and foremost, I thank the almighty God for bestowing me with good health and

confidence to complete the project on time.

I would like to express my hearty gratitude to Dr. M. Bhasi, Director, School of

Management Studies for introducing me to the organization Apollo Tyre Limited,

Kalamassery.

I whole heartedly record my sincere gratitude to my supervisor Prof. Dr. Sebastian Rupet

Mampilly of SMS for guiding me on the research aspects of the thesis.

I am extremely thankful to Dr. Rajitha Kumar, MBA (PT) Coordinator of SMS for

guiding me on practical sampling techniques of questionnaire survey method.

I express sincere thanks to Dr. Sam Thomas, MBA (PT) 2010-13 batch mentor of SMS

for guiding me on organizational certificate requirements of the thesis.

I record my gratitude to Mr. Shefin Salam, Executive of Human Resource Department,

Apollo Tyres Limited, Kalamassery for facilitating to carryout this research work in the

organization.

JOB THOMAS

Place: Kochi-22Date: 14th April 2013

CERTIFICATE

This is to certify that project report entitled “Satisfaction of managerial employees on

performance appraisal system in Apollo Tyres Limited, Kalamassery” is a bonafied

record of the work done by Mr. Job Thomas, sixth semester MBA (PT) student of this

school submitted in partial fulfillment of the requirement of award of degree of Mater of

Business Application of Cochin University of Science and Technology during April 2013.

Dr. Sebastian Rupet Mampilly Dr. M. BhasiProject guide Director

CONTENTS

Title Page number

Chapter 1 Introduction1.1. Overview 11.2. Performance appraisal and employee satisfaction 21.3. Summary 3

Chapter 2 Industry and company profile2.1. Industry structure and development 42.2. International scenario 52.3. Global competitors 62.4. Indian scenario 72.5. Competing Indian tyre companies 72.6. Highlights of Indian tyre industry 82.7. Apollo tyres limited 92.8. Corporate overview 92.9. Vision and values 102.10. Presence

102.11. Brands 112.12. Sustainability 132.13. Summary

14

Chapter 3 Theoretical frame work3.1. Introduction 153.2. Definition of Performance appraisal 153.3. History of Performance appraisal 163.4. Purposes of performance appraisal 173.5. Uses of performance appraisal 203.6. Approaches of Performance appraisal 203.7. Timing of appraisal 213.8. Objectives of performance appraisal 213.9. Process of performance appraisal 223.10. Performance Appraisal for different workgroups 243.11. Performance Appraisal Methods 263.12. Employee satisfaction 293.13. Definition of Employees satisfaction 303.14. Meaning of employee satisfaction 303.15. Historical development of measurement of Employee satisfaction 313.16. Sources of employee satisfaction 323.17. Performance appraisal at Apollo Tyre Limited, Kalamassery

343.18. Summary

36

Chapter 4 Research methodology4.1. Introduction 374.2. Need for study 374.3. Statement of the problem 374.4. Research objectives 374.5. Survey method 384.6. Sampling 384.7. Data collection 394.8. Method of data analysis 404.9. Organization of research report 414.10. Summary

42

Chapter 5 Data analysis and interpretations5.1. Introduction 435.2. Demographic details of the respondents 435.3. Frequency of response 465.4. Descriptive statistics 545.5. Performance appraisal – satisfaction index (PASI) 575.6. Testing of hypothesis 575.7. Influence of age of employee on

performance appraisal satisfaction 615.8. Influence of formal education on satisfaction of

performance appraisal 725.9. Influence of company experience on satisfaction of

performance appraisal 855.10. Summary

97

Chapter 6 Summary, Finding, Conclusions and Recommendations6.1. Summary 996.2. Findings 996.3. Conclusions 1016.4. Recommendations 101

Bibliography 102

Appendix A- Questionnaire 104

List of Tables

Title Page number

Table 4.1. ANOVA computation 41Table 5.1. Gender statistics 43Table 5.2. Age statistics 44Table 5.3. Formal education statistics 45Table 5.4. Experience statistics 45Table 5.5. Frequency of response for statements 47Table 5.6. Statistics of score of response for statements in questionnaire 55Table 5.7. Statistical evaluation of the overall responses 58Table 5.8. Correlation coefficient matrix of factors influencing

employee satisfaction and performance appraisal 59Table 5.9. Results of ANOVA using Microsoft® excel program 60Table 5.10 Comparison of frequency of response of statements

by employees of different age groups 61Table 5.11. Descriptive statistical analysis of influence of age

on response of scores for statements in questionnaire 69Table 5.12. The correlation of mean of scores of statements

by different age groups 71Table 5.13. Results of ANOVA of mean scores of responses

of different age groups 72Table 5.14 Comparison of frequency of response of statements

by employees having different education 73Table 5.15. Descriptive statistical analysis of influence of formal education

on response of scores for statements in questionnaire 81Table 5.16. The correlation of mean of scores of statements

by different employees groups differ in formal education 84Table 5.17. Results of ANOVA of mean scores of responses

of employees groups differ in formal education 84Table 5.18 Comparison of frequency of response of statements

by employees differ in experience 85Table 5.19. Descriptive statistical analysis of influence of company

experience on response of scores for statements in questionnaire 93Table 5.20. The correlation of mean of scores of statements

by different employees groups differ in company experience 96Table 5.21. Results of ANOVA of mean scores of responses

of employees groups differ in company experience 97

List of Figures

Title Page number

Fig. 2.1. Rubber consumption in India 6Fig. 2.2. Ranking of Tyre companies based on revenue in global market 7Fig. 2.3. Ranking of tyre companies based on production in India 8Fig 2.4. Details showing the world-wide presence of Apollo 10Fig 3.1. Purposes of performance appraisal 16Fig 3.2 Performance appraisal process 21Fig 3.3 Factors influencing employee satisfaction 33Fig 5.1. Gender statistics of respondents 44Fig 5.2. Age statistics of the respondents 44Fig 5.3. Education statistics of the respondents 45Fig 5.4. The Apollo Tyres Ltd experience statistics of respondents 46Fig. 5.5. The frequency of response for statement no.1 48Fig. 5.6. The frequency of response for statement no.2 48Fig. 5.7. The frequency of response for statement no.3 49Fig. 5.8. The frequency of response for statement no.4 49Fig. 5.9. The frequency of response for statement no.5 50Fig 5.10. The frequency of response for statement no.6 51Fig 5.11. The frequency of response for statement no.7 51Fig 5.12. The frequency of response for statement no.8 52Fig 5.13. The frequency of response for statement no.9 53Fig 5.14. The frequency of response for statement no.10 53Fig 5.15. The range and mean of the scores of the statements 54Fig 5.16. PASI of respondents 57Fig 5.17. Influence of age on response of statement number 1 63Fig 5.18. Influence of age on response of statement number 2 64Fig 5.19. Influence of age on response of statement number 3 64Fig 5.20. Influence of age on response of statement number 4 65Fig 5.21. Influence of age on response of statement number 5 65Fig 5.22. Influence of age on response of statement number 6 66Fig 5.23. Influence of age on response of statement number 7 67Fig 5.24. Influence of age on response of statement number 8 67Fig 5.25. Influence of age on response of statement number 9 68Fig 5.26. Influence of age on response of statement number 10 68Fig 5.27. Influence of age of employees on the mean score of

responses for the statements 1 to 10 71Fig 5.28. Influence of formal education on response of statement number 1 75Fig 5.29. Influence of formal education on response of statement number 2 76Fig 5.30. Influence of formal education on response of statement number 3 76Fig 5.31. Influence of formal education on response of statement number 4 77Fig 5.32. Influence of formal education on response of statement number 5 77Fig 5.33. Influence of formal education on response of statement number 6 78Fig 5.34. Influence of formal education on response of statement number 7 79Fig 5.35. Influence of formal education on response of statement number 8 79Fig 5.36. Influence of formal education on response of statement number 9 80Fig 5.37. Influence of formal education on response of statement number 10 80

Fig 5.38. Influence of formal education of employees on the mean score of responses for the statements 1 to 10 83

Fig 5.39. Influence of company experience on response of statement number 1 87Fig 5.40. Influence of company experience on response of statement number 2 88Fig 5.41. Influence of company experience on response of statement number 3 89Fig 5.42. Influence of company experience on response of statement number 4 89Fig 5.43. Influence of company experience on response of statement number 5 90Fig 5.44. Influence of company experience on response of statement number 6 90Fig 5.45. Influence of company experience on response of statement number 7 91Fig 5.46. Influence of company experience on response of statement number 8 92Fig 5.47. Influence of company experience on response of statement number 9 92Fig 5.48. Influence of company experience on response of statement number 10 93Fig 5.49. Influence of company experience of employees on the mean score

of responses for the statements 1 to 10 96

EXECUTIVE SUMMARY

Performance appraisal is an essential management technique. The study aims to measure

the satisfaction of the managerial employees on the performance appraisal system in

Apollo Tyres Limited, Kalamassery. The questionnaire survey method is adopted for

evaluating the satisfaction of the employees. Apollo is a leading tyre factory having world

wide presence. In India, Apollo stands first based on revenue and second based on

production.

Performance appraisal is an important management tool to audit human capital. In many

organizations, appraisal results are used as a tool to fix the reward. The appraisal results

are used to identify better performing employees for placement to higher post in the

hierarchy of organizational structure. The satisfaction of employee towards the appraisal

system of the company depends on many factors such as communication, measurement

policies and post review policies. The total output of the organization depends on

satisfaction level of employees. The performance appraisal is an important tool to many

human resource functions. Hence, relationship between employee satisfaction and

performance appraisal is an important area of research.

The questionnaire method is adopted for the collection of data. The level of agreement to

the ten statements are allowed to mark in 5 point score Likert-scale. The sample has been

drawn from the population based on the judgment method. The duly filled questionnaire

is collected from the respondents. The frequency and descriptive statistical analysis of

responses are carried out. The influence of age, formal; education and company

experience is studied. The statistical approach ANOVA is used for the analysis of

responses.

A fair performance appraisal process helps to improve the satisfaction in employees. The

willingness to invest additional effort of towards enhancing production and there by

market and financial position increases with employee satisfaction. The performance

appraisal accounting for the individual and team performance of the members will help to

increase the plant output. Based on the questionnaire survey conducted, it can be

concluded that employees of Apollo Tyre Limited, Kalamassery are satisfied with the

performance appraisal process. Employees satisfaction depends on the many aspects of

performance analysis and company have to look into the balanced blend of important

aspects like communication, measurement policies and post-review decisions.

*****

Chapter 1

1. Introduction

3.1. Overview

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

aspect, strategic planners and human resource professionals collaborate more intensively

in designing strategies that are productive and humane. Marquardt (2004) pointed out that

the organizations aiming at maximum productivity and quality have never encountered so

many challenges. However, the situations are changed and challenges are identified as the

opportunities to grow. In 21st century, the success of the organization lies in implementing

focused and integrated human resource processes and systems.

The enormous transformations processes that take place in social, political and economic

regime drive the need for organization to become more responsive to the rapid

development of global strategies and local operational levels. Reid and Hubbell (2005)

stated that culture in the organization makes the people to engage more in the business

activities. Human resource management focuses on personnel related areas such as job

design, resource planning performance management system, recruitment, selection, and

compensation and employee relations. Among the various formal intentions, performance

evaluation and management system is the one of the important aspects that relates to the

satisfaction of employee. Building block of enhancing performance is creating a

performance culture. The satisfaction of employees on performance evaluation increases

when the gap between exceptions and outcome converges. To have the right expectations,

knowledge about the performance measurement system is essential. The various aspects

of performance appraisal system in a private limited company is studied in this thesis

work. The organization selected for the study is Apollo Tyres Limited at Kalamassery,

Cochin.

3.2. performance apprisal and Employee satisfaction

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is

measuring and improving the actual performance of the employee and also the future

potential of the employee. According to Flippo, a prominent personality in the field of

Human resources, "performance appraisal is the systematic, periodic and an impartial

rating of an employee’s excellence in the matters pertaining to his present job and his

potential for a better job." Performance appraisal is a systematic way of reviewing and

assessing the performance of an employee during a given period of time and planning for

his future. Performance appraisal is a powerful tool to calibrate, refine and reward the

performance of the employee. Performance appraisal helps to analyze his achievements

and evaluate his contribution towards the achievements of the overall organizational

goals.

Employee satisfaction is the terminology used to describe whether employees are happy

and contented and fulfilling their desires and needs at work. Many measures purport that

employee satisfaction is a factor in employee motivation, employee goal achievement,

and positive employee morale in the workplace. Factors contributing to employee

satisfaction include treating employees with respect, providing regular employee

recognition, empowering employees, offering above industry-average benefits and

compensation, providing employee perks and company activities, and positive

management within a success framework of goals, measurements, and expectations.

Employee satisfaction is often measured by anonymous employee satisfaction surveys

administered periodically that gauge employee satisfaction.

Performance appraisal in an organization is aimed at imbibing information to the

employees about their job and amount of effort and behaviour expected from them. On

the other hand, satisfaction of employees is meeting expectations. The performance

appraisal is a tool for promotion and pay fixation in the company. Hence satisfaction of

the employee on performance appraisal plays and important role in the productivity. The

performance appraisal is the creation of shared version of organizational objectives,

occasionally through mission statements communicated to the employees. Performance

review measures the individual targets relating to target of the operating units within the

organization. The satisfied employee will show progress towards the targets of the

organization. Performance review helps to identify training needs among employee.

Hence study on the satisfaction of the employees with the performance appraisal process

in an organization is important area of human resource management.

3.3. SUMMARY

Performance appraisal is an essential management technique. The study aims to measure

the satisfaction of the managerial employees on the performance appraisal system in

Apollo Tyres Limited, Kalamassery. The questionnaire survey method is adopted for

evaluating the satisfaction of the employees. The responses indicated that the employees

are satisfied with the performance appraisal system in Apollo Tyres Limited,

Kalamassery.

Chapter 2

2. The INDUSTRY AND Company Profile

3.4. INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian tyre industry, in comparison to its western counterparts, lags behind in radial

trends. Use of radial tyres for passenger vehicle tyres were maintained at 98%, while for

commercial vehicle segment it was pegged at 22% – a significant growth was observed in

the last year.

The top 5 players – Apollo, Birla, Ceat, JK Tyres and MRF – command over 70% of the

market, with product offerings across all major categories. India continues to be driven by

the commercial vehicle tyre segment, where truck and bus tyres contribute as much as

55% of the industry’s revenue. The replacement market accounts for 70% of the

revenues, though the original equipment segment continues to play a crucial role in terms

of volumes and ensuring product acceptability in the consumers’ mind.

Amongst those who set up new manufacturing units in the country were Bridgestone, JK

Tyres and MRF. Bridgestone’s Rs 4.3 billion plant in central India was completed in July

2011. The unit is geared to produce 12,000 truck-bus radials and 120,000 passenger car

radials every month. Both JK Tyres and MRF, like Apollo, chose the southern Indian

state of Tamil Nadu as their preferred manufacturing location. JK Tyres’ facility, which

was completed in February 2012 with an investment of Rs 10 billion, is equipped to

manufacture around 208,000 passenger car radials and 33,000 truck-bus radials each

month. MRF’s facility, built with an investment of Rs 9 billion, has a capacity of 350,000

passenger car radials and 60,000 truck-bus radials per month. Ceat also ramped up

capacity at its unit in Western India with a radial capacity of 150 tonnes per day. The

Michelin facility in Tamil Nadu with a capacity of 2 million truck-bus radial tyres per

year, is currently under construction and expected to begin production later in the year.

Apollo’s manufacturing unit in Tamil Nadu, which will attain full capacity in December

2012, has been constructed to accommodate a manufacturing capability of 480,000

passenger car radials and 180,000 truck-bus radials each month.

Apollo, Birla, BKT, Falcon, JK Tyres and MRF also sought to expand capacities in their

existing facilities – with combined investment to the tune of Rs 35 billion. In financial

year 12, while production of truck-bus and passenger car tyres went up by a marginal 3%

and 4% respectively, light commercial vehicle and industrial tyre production jumped

11%. The total production in the industry grew by around 5% – a trend which is expected

to continue in the near future. Exports out of India grew in most categories and registered

the highest growth of 65% in the off-the road tyre segment.

In policy developments, legislation on tyre labeling is scheduled to be implemented in

Europe in November 2012; most manufacturers are working towards achieving

compliance for the same. With the new tyre labeling system, consumers will be informed

upfront on where each tyre stacks up on the 3 key areas of rolling resistance, wet grip and

exterior noise. In South Africa, the 4 local manufacturers – Apollo, Bridgestone,

Continental and Goodyear – continue to compete in a market which is dominated by

imports. Growth plans were mostly put on hold due to political and economic concerns in

various African countries. In year 2011, for domestic manufacturers, while the passenger

car tyre category grew marginally, truck bus tyres had a flat year in South Africa.

3.5. INTERNATIONAL SCENARIO

The automobile industry is the single largest consumer of natural rubber in the form of

auto tyres and tubes and certain other parts and accessories. For instances Bridgestone

Corporation in Japan is the world’s largest producer of tyres. Bridgestone consumes 3

lakh tones of natural rubber annually to produce 68 different types of tyre. Pirelli SpA

from Italy consumes 1.2 lakh tones of natural rubber in the production of tyres. Economic

recession anywhere in world generally hit first on this industry prior to other industry.

World production has been fairly stable in the last five years. Wherein, the production in

India is found to be consistently increasing with an average growth rate of 6 percent

during the last 10 years. The growth of the consumption of tyres in Indian market is

steady. The variation in world’s production and consumption is the major sources of

concern on the price front for Indian rubber sector in the free market regime, where global

pressure of imports and exports could make the rubber prices more volatile.

About 47 percent of the natural rubber consumed in the country goes into the production

of auto tyres and tubes and the details of rubber consumption in India are given in Figure

6. This fairly establishes the diffused nature of consumption of natural rubber.

RUBBER CONSUMPTION IN INDIA

47%

13%10%

7%

6%5% 4% 8%

Auto tyre and tube 47%

Cycle tyre and tubes-13%

Footwears-10%

Belts and hoses-7%

Camel black-6%

Latex foam-5%

Dipped rubber good-4%

Other rubber products-8%

Fig. 2.1. Rubber consumption in India

3.6. GLOBAL COMPETITORS

The global competitors are Bridgestone, Michelin etc. Based on the revenue generated,

Apollo is in 15th position. In Vision 2016, Apollo aims to become in 10th position in

global market.

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Fig. 2.2. Ranking of Tyre companies based on revenue in global market

3.7. INDIAN SCENARIO

The annual production of rubber from India is about 6 lakh tones and over 90 percent of

the production is from southern part of Kerala. Indian rubber industry comprises of 32

tyre factories, about 250 medium scale units and 6000 small-scale units. Small scale units

are producing every conceivable rubber product from toy, balloons etc. The annual turn

over of the industry is INR 20,000 crores. Salient Features of Indian Tyre Industry

Adaptability and absorption

Exports

Innovations

Indigenous and ready availability

Technology progression

Wide product range for diverse use

Self efficiency and vibrant marketing setup

3.8. COMPETING INDIAN TYRE COMPANIES

The Indian competitors are MRF, JK etc. Based on the production, Apollo is in second

position.

1. MRF

2. Apollo3. JK4. CEAT5. Modi6. Birla7. Good Year8. Vikrant

Fig. 2.3. Ranking of tyre companies based on production in India

3.9. HIGHLIGHTS OF INDIAN TYRE INDUSTRY

The tyre industry is doing business worth Rs. 20,000 cores

The export by tyre industry is Rs.3,000 cores

The future of this industry depends on the agricultural and industrial

performance of the economy, the transportation needs and production of

vehicles

Tyre industry in India is fairy concentrated, with the top eight companies

accounting for more than 80 percent of the total production of tyres

The entry barriers are high in tyre industry in India. It is highly capital

intensive industry. A plant with annual capacity of 1.5 million cross-ply tyres

cost between Rs.4000 and Rs.5000 million. A similar plant producing radial

tyres costs Rs. 8000 million. The automobile tyre industry is dominated by

organized sector and the bicycle tyre industry is hold by unorganized sector.

Natural rubber constitutes 25 percent of the total raw material cost in tyre

manufacture.

The ratio of natural rubber content to synthetic rubber content is 80:20 in

Indian tyres, whereas it is 30:70 abroad.

The tyre industry consumes nearly 50 percent of natural rubber produced

in the country.

3.10. APOLLO TYRES LIMITED

Specialty of Apollo Tyres Ltd. is the

Fastest growing global tyre producers.

First Indian tyre company to cross US$2.5 billion of net sales.

Leading tyre producers in India with well balanced product portfolio.

Largest radial tyre manufactures in India.

UHP and winter tyre capabilities.

Manufacturing plant across three continents with global production capacity of

1649 MT/Day.

Strong portfolio of global and regional brands.

Consistent performance amidst volatile market.

o Growth in net sales is 26.9 percent CAGR over the last five years.

o EBITDA grew at 18.2 percent CAGR over last five years

Extensive distribution network

o 4000 retail dealers in India

o 3100 outlet in Europe

Over 15000 employees globally

3.11. Corporate Overview

Apollo Tyres Ltd, with its corporate headquarters in Gurgaon, India, is in the business of

manufacture and sale of tyres since its inception in 1972. Over the years, the company has

grown manifold, establishing its footprint across the globe.

The company has manufacturing presence in Asia, Europe and Africa, with 9 modern tyre

facilities and exports to over 118 countries. Powered by its key brands - Apollo,

Dunlop (brand rights for 32 African countries) and Vredestein, the company offers a

comprehensive product portfolio spread across passenger car, light truck, truck-bus, off

highway and bicycle tyres, re-treading material and re-treaded tyres.

At the end of its financial year on March 31, 2012, Apollo Tyres had clocked a turnover

of US$ 2.5 billion, backed by a global workforce of approximately 16000 employees.

Apollo Tyres Ltd is traded in India on the Bombay, National and Kochi Stock Exchanges,

with 53.06% of shares held by the public, government entities, banks and financial

institutions as on June 30, 2012.

3.12. Vision and values

Vision : A significant player in the global tyre industry and a brand of choice, providing

customer delight and continuously enhancing stakeholder value.

Values : The values are

Customer First

Business Ethics

Care for Society

Empowerment

Communicate Openly

One Family

3.13. Presence

The world-wide presence is the specialty of company and is given in Fig. 2.4.

Fig 2.4. Details showing the world-wide presence of Apollo Tyres Limited

3.14. Brands

When Apollo Tyres was established in 1972, it was a single brand enterprise. Over the

years, as the organization grew and expanded its footprint across geographies, several

brands either joined or were born into its fold. Today, the company owns 6 key brands

— Apollo, Dunlop (brand rights for 32 African countries), Kaizen, Maloya,

Regal and Vredestein.

While brands Apollo, Dunlop and Vredestein comprise of tyres across categories —

from passenger andcommercial vehicles to off highway tyres, the remaining 3 brands are

more product category specific. Regal and Kaizen focus on the truck-bus tyre segment

while Maloya continues to operate within the passenger vehicle tyre category. Each brand

from the company is equipped with its own distinctive visual language and targeted at a

specific customer need. This approach has enabled Apollo Tyres to provide a wide range

of products for various applications, across geographies — ending with a delighted

customer.

Corporate HeadquarterManufacturing LocationsFocus MarketsMarkets available inEstablished markets

Apollo: Driven by attention to safety, Apollo tyres are manufactured in India and are

available across almost all categories, including commercial and passenger vehicles, farm

and industrial.

The core idea behind brand Apollo is safety. At all times Apollo is willing to travel that

extra mile to deliver what its stakeholders need. Apollo enables individuals to maximise

their own potential, as reflected in its tagline "go the distance". Apollo tyres,

manufactured in India, are available across almost all categories, including commercial

and passenger vehicles, farm and industrial.

Brand Apollo Tyres' genesis dates back to the mid 1970s, when the first corporate identity

was unveiled. It stood for passion, aggression and determination to achieve excellence in

all spheres. Popularly known as the unending road, the logo mirrored the long journey the

company would make for its evolution as a dynamic, multi-cultural and multi-location

entity. This identity served Apollo's dreams and ambitions for over 30 years.

Dunlop: An established name in passenger vehicle segment, Dunlop also manufactures

commercial vehicle and off highway tyres; with 2 facilities in Durban and Ladysmith.

A brand centered on attention to detail and quality in all aspects of its existence —

suitably reflected in its tagline "Driven By Precision". Apollo Tyres Ltd owns right to

brand Dunlop for 32 African countries. Dunlop's history is arguably the most impressive

in the world of tyres. In 1888, Scottish veterinarian John Boyd Dunlop created the first

practical pneumatic tyre for his son's tricycle, to help it go faster and smoother over

cobblestones. Just one year after it was patented, John Boyd's tyres was fitted to a bicycle

and won its first race. Soon J B Dunlop became one of the founders of the Dunlop

Pneumatic Tyre Company; beginning of a revolution in the automobile industry and start

of Dunlop Tyres' journey from strength to strength, with a succession of product

innovations achieved over 123 years.

VREDESTEIN: With a heritage older than 100 years, brand Vredestein's unique story is

best captured through its tagline "Designed To Protect You", which is also its brand

promise. A winning combination of Dutch dedication and Italian elegance, Vredestein is

best known for its premium high performance passenger vehicle tyres, especially in the

winter tyre segment. Moreover, it offers a wide array of equally exclusive and

performance driven tyres for the agriculture, industrial and bicycle categories.

Manufactured out of a state-of-the-art facility in Enschede, in The Netherlands, its

products are sold largely in the aftermarket. Vredestein tyres can be found adorning a

whole range of luxury vehicles across the European Union, the United States, the Middle

East and China.

3.15. Sustainability

As an organization, Apollo Tyres is committed towards creating values for its

stakeholder. And the crucial link here is building a sustainable business, driven by

strategic growth and responsible actions.

Apollo Tyres believes that to truly move up the value chain, it is critical to use fewer

natural resources to produce more. For a growing organization, with a long-term focus

and commitment, it is critical to safeguard resources for the future even as it creates value

today. At Apollo, emphasis is laid on using natural resources cautiously and with care.

In 2011, the company published its 1st Sustainability Report as per Global Reporting

Initiative Version 3. The disclosures and identified gaps have further enabled the

company to better define and evolve its internal systems relating to environmental and

social aspects. Bulk of this work pertains to energy, water, health and safety issues across

operations.

The company’s systems and processes have made it possible for it to report at Level B

and the company is positive about achieving Level A across its operations in the next 2

years. The company undertook a complete audit for all operations globally and our offices

on critical environmental factors and striving to achieve the “green company” status. The

efforts to health,, HIV-AIDS awareness and prevention is strengthened with 21 health

care centres across the country catering to commercial trucking community. The company

embarked Project-U which educates trains and undertakes livelihood for young

unemployed.

3.16. SUMMARY

Tyre industry consumes major part of natural rubber. The revenue in the tyre industry is

affected by recession or decrease in hand to month of citizens. Apollo is a leading tyre

factory having world wide presence. Among the India competitors, Apollo stands first

based on revenue and second based on production. This indicates that Apollo has a strong

and dedicated marketing network.

Chapter 3

3. THEORITICAL FRAME WORK

3.17. introduction

In simple terms, appraisal is the assessment of an individual performance in a systematic

way. The performance are generally measured against such factors as knowledge about

job, quality and quantity of output, initiatives, leadership abilities, supervision,

dependability, co-operation, judgment, versatility, health etc. The assessment of an

employee is expected to cover both past performance and potentials that can be drawn in

future. Alternate terms used for performance appraisal (PA) are performance

review, performance evaluation, (career) development discussion, or employee appraisal.

Employee satisfaction is a measure of how happy workers are with their job and working

environment. Keeping morale high among workers can be of tremendous benefit to any

company, as happy workers will be more likely to produce more, take fewer days off, and

stay loyal to the company. There are many factors in improving or maintaining high

employee satisfaction, which wise employers would do well to implement.

Employee satisfaction is related to the performance appraisal system in the company. In

the appraisal system, strengths of the employee shall be recognized and rewarded to

improve the satisfaction. Similarly, the weaknesses shall be pointed out in the appraisal

system for education and career development.

3.18. Definition of Performance appraisal

Performance appraisal is the systematic evaluation of the individual with respect to his or

her performance on job and his or her potential for development.

Performance appraisal is the formal, structured system of measuring and evaluating the

employees job related behaviors and outcomes to discover how and why the employee is

presently performing on the job and how the employee can perform more effectively in

the future so that employee, organization and society all benefit. (Aswathappa, 2005).

Performance appraisal is the process of identifying, observing, measuring and developing

human performance in organization (Carrol and Scheider, 1982)

3.19. History of Performance appraisal

Fig 3.1. Purpose of performance appraisal

PERFORMANCE APPRAISAL

Administrative purpose

Self-development of employees

Promotion and placement Transfer and demotionsWages and salary fixationTraining and manpower planningPersonnel researchCreating favourable impact on employeesMiscellaneous administrative purposes

Identification ofstrengthweaknessfuture training needs

Sashkin (1944) suggests that performance appraisal has been with us for all human

history and it show no prospects of being ready for the rubbish heap. Scotts et al. (1941)

cited that the performance appraisal was first used by army in World war one to assess the

performance of officers. Murphy and Cleveland (1995) pointed out that performance

appraisal probably began in United States in 1813 when US Army General Lewis Cass

submitted an evaluation of men in the crew to War department. In the late 1960’s,

performance appraisal was used by many companies that experienced outback in

government contracts to make layoff and retention decisions. North (2005) stated that

performance appraisal can be claimed to be the world’s second oldest profession.

3.20. Purposes of performance appraisal

Appraisal of the performance of the employees is carried out for two major purposes,

namely, administrative purpose and self improvement and self development of employees

and is shown in Fig. 3.1.

Promotion and placement of employees

One of the major administrative purposes of performance appraisal is to promote the

employees taking into account of their competence and performance over certain period

of service. Quality and quantum of work performed serves as the basis for promotion in

cases when promotions are giving by merits. Appraisal system identifies whether the

employee can be assigned higher positions in the organization. The promotion on the

basis of appraisal is in the interest of both the management an employee. Performance

appraisal is useful for posting the right candidate within the organization. The

performance appraisal is not useful for the initial placement but is useful for the

subsequent placements.

Transfers and demotions

In organization, certain personnel actions, namely, transfer, demotions, disciplinary

actions and discharges are required to be taken by the management. Such actions need to

be taken in a fair and impartial manner. The performance appraisal reports can be used for

taking final decisions on such activities. The suitable employee can be identified for new

assignments or deputation by evaluating the performance appraisal.

Wages and salary payment

Wage or salary payment is normally linked with performance appraisal. Wage increase is

based on the performance appraisal reports. Better performance in the managerial level is

normally rewarded by additional salary payment. For judging the performance of

executives, periodical appraisal is essential. It is also useful for allocating rewards to

deserving employees.

Training and manpower development

Performance appraisal is useful for validating the selection for specialized training and

development programmes. Appraisal helps to identify the skills and competences and also

the weakness in the employee. The appraisal enables management to identify the areas of

training programme to be organized in future. The need for executive training for

managers in the new placements is organized after evaluation of performance appraisal.

The appraisal helps to identify requirement of in-house or institutional training.

Performance appraisal is a useful tool of evaluating training and development needs of

the organization.

Personnel research

Performance appraisal serves as a feedback to management in the area of personnel

research. The human capital in the organization can be measured and forecasted based on

the appraisal. The manpower replacement procedure can be initiated for the retiring

personnel in the organization. The appraisal is one of the components used for the

manpower demand forecast. The valuable information in the appraisal can be used to

measure motivation and satisfaction in employees.

Favorable impact on employees

The performance appraisal creates a favourable impact on employees. The appraisal is a

tool for identifying talented persons, promotions, training and salary fixation. The

employees will be motivated to score high in the appraisal system for receiving incentives

or better placement. The, appraisal will help to take a meaningful decision in transfer and

promotions. In brief, performance appraisal gives favourable impact on employees.

Performance appraisal improves the morale and offers opportunities of career

development.

Miscellaneous administrative purposes of appraisal

The miscellaneous administrative purposes are (i) to confirm the service probationary of

the employees after the completion of probationary period successfully, (ii) to improve

communication and cooperation between superior and subordinates and (iii) to determine

whether HR programmes, namely, selection, training and transfers are effective or not.

Self improvement of employees

In addition to administrative purpose, performance appraisal facilitates self improvement

and development of employee. Appraisal suggests the weakness and shortcomings of the

employee. It serves as feed back to the employee. Appraisal is followed by discussion

between the rater and employee in a spirit of cooperation and mutual understanding.

Counseling of employees for improving their performance is conducted by post appraisal

interviews. Performance appraisal is important and useful for the organization to achieve

long term goals. Performance appraisal helps to improve, grow and develop for higher

positions in the organization.

3.21. Uses of performance appraisal

The uses of performance appraisal are administrative, maintenance use and

documentation. Administrative use of performance appraisal is to measure performance

for administrative decisions of employees. The purposes include rewarding, promotion,

layoff, training etc. The appraisal is a tool for measuring individual performance in the

organization. In this case, manager is featured more as counselor than a judge. The

emphasis is given for identifying potential and planning growth opportunities of

employee.

Maintenance use of performance appraisal is to carry functions such as human resource

planning, determining training needs etc. for the smooth functioning of sub-systems.

Documentation of performance appraisal is used for the purpose of recording the

development of employee throughout the career in the organization.

3.22. Approaches of Performance appraisal

There are two approaches in performance appraisal, namely, informal approach and

systematic approach. Informal approach is conducted whenever the supervisor feels it is

necessary. The day-to-day working relationship between a manager and employee offers

an opportunity for the judgment of employee performance. The judgment of informal

approach is communicated on job or on coffee time conversation. Frequent internal

feedback to employees can avoid surprises when the formal evaluation is communicated.

Systematic appraisal is used when the contact between the manager and the employee is

formal and system is in place to report managerial impressions and observations on

employee performance. Its aim is to support administrative and developmental decisions.

3.23. Timing of appraisal

A regular time interval is a feature of systematic appraisals that distinguishes them from

informal appraisals. The appraisals are conducted once or twice in an year. The

companies in high technology or software field conduct appraisal in every six months so

that the employees are promoted more frequently. This results in reduction in turnover of

employees. In Apollo, the appraisal is conducted in every year.

3.24. Objectives of performance appraisal

To review the performance of the employees over a period of time

To judge the gap between actual and desired performance

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior and

subordinates

To diagnose the strengths and weakness of the individuals so as to identify the

training and development needs in the future

To provide feedback to the employees regarding their past performance

Provide information to assist in the other personal decisions in the orgnaisation.

Provide information to assist in other personal decisions in the organizations.

To provide clarity of expectations and responsibilities of the functions to be

performed by employees

To judge the effectiveness of the human resource functions, namely, recruitment,

selection, training and development.

To reduce the grievances of the employees

To calibrate, refine and reward the performance of the employee.

To focus the progress in performance of employees.

3.25. Process of performance appraisal

Establishing performance standards

Evaluation without standards is meaningless. As such, appraisal process starts with the

search of standards. The right standards are to be selected, defined and established for

making appraisal meaningful and clear. The standards established by careful analysis

should be used as the base for rating the actual performance of employees. The standards

set should be comprehensive, integrating all aspects of the desired performance and they

should also clear, easily understandable and measurable.

Fig 3.2 performance appraisal process

Communicating standards

For better working of the appraisal system, all the employees should be aware of the

process and methods. The information about the standards and usefulness to appraise the

performance should be communicated to the employees of the organization. The

employee should also seek to know the standards and the application in appraisal process.

Establishing performance appraisal

Communicating standards and expectations

Measuring actual performance

Comparing with standards

Discussing results

Decision making and corrective action

Well-informed employees will be clear about the roles and performance expectations.

Supervisors will be clear about the roles of the evaluators. Good communication helps in

meaningful discussions, clarifications and commitment. It gives an opportunity to modify

standards at the initial stage itself based on relevant feedback from the employees or

evaluators.

Measuring the actual performance

The most difficult part of the performance appraisal process is measuring the actual

performance or the work done by the employee over a specific period of time. It is

continuous process which involves monitoring the performance through the year. This

stage requires careful selection of appropriate technique of measurement, taking care that

personal bias does not affect the outcome of the process and providing assistance rather

than inferring in employee’s work.

Comparing the actual performance with standards

The actual performance is compared with standard performance. The comparison tells the

deviations in the performance of the employee from the established standard. The results

can bring out the actual performance being less than the desired performance depicting a

negative deviation in the organizational performance. It induces recalling, evaluating and

analysis of data related to the employee performance.

Discussing results

The result of the appraisal is communicated and discussed with the employee on one-to-

one basis. The focus of the discussion is on communication and listening. The result, the

problems and the possible solution are discussed with the aim of problem solving and

reaching consensus. The feedback should be given with a positive attitude as this can

have an effect on the employee future performance. The purpose of the meeting is to

solve the problems faced and motivate the employees top perform better

Decision making

The last step of the performance appraisal process is to take decisions in order to improve

performance, identify corrective actions or implement HR decisions such as rewards,

promotions, transfers etc. A better performance appraisal system should focus on the

individuals and his development so as to make-up the employee to perform the desired

performance. Performance appraisal is having direct linkage with personnel management

in the areas of selection, mobility, training etc.

3.26. Performance Appraisal for different workgroups

Workforce alignment empowers managers and employees by creating ownership and

commitment in the organisation's success by aligning goals and development to overall

strategy and objectives. Furthermore, organisations taking a competence-based

Performance Appraisal approach achieve better business results, get more engaged

employees and increased retention.

Performance Appraisal permits to build, streamline, and deliver strategic initiatives across

recruiting, on-boarding, performance appraisals, competence assessments, learning and

development, succession planning and more.

Goal alignment & Performance Appraisal

Feedback and recognition

Development planning

Reports and Analytics

Flexible forms

Goal management functionality shows each employee how their individual performance

goals align and support the organisation's strategy. By setting SMART goals (Specific –

Measurable – Achievable – Realistic – Timely) and activities to achieve these, managers

and employees get a practical and concrete tool to ensure they are on the right course.

Performance Appraisal simplifies and streamlines the entire employee performance

evaluation and can be used standalone or integrated with any of the other modules to

deliver a complete cloud-based, performance driven human capital management solution.

HR professionals: Get the most convenient and cost-effective way to conduct

performance evaluations, align and track goals, track employee profiles, develop critical

competence and more. Now, HR can play a strategic role in helping the organisation build

a world-class workforce that is aligned and delivering on the business strategy.

Management: Get a single system that keeps the organisation aligned. They can see how

employee goals are aligned with those of the organisation, know where performance gaps

exist and how they're being addressed, and ensure the organisation has the skills it needs

to succeed.

Managers: Get a convenient and powerful tool for aligning and tracking goals, managing

employee performance, providing meaningful feedback and coaching, and supporting

employee development.

Employees: Get their own personalized page where they can access their appraisals,

goals, development plans and more, in just a few clicks. Employees feel more connected

and engaged because they know what's expected of them and can see how they're helping

the organisation succeed.

3.27. Performance Appraisal Methods

The appraisal method is one component of the overall appraisal system. Most

performance appraisals fall broadly into three categories: traditional performance

appraisal (emphasis on traits of the individual); use of behavioral criteria; and objective-

setting (results oriented) performance appraisal. There are various methods used to assess

the performance of employees. Such methods include trait checklist, responsibility

rating, Management by Objective (MBO), free form, essay, graphic rating scale, forced

choice, critical incident and work standards.

Trait checklist features standardized rating forms for broad groups of employees. For

each group, qualities or "traits" of employee performance are listed. Examples are as

follows: quantity of work, quality of work, dependability, effort, initiative, job

knowledge, cooperativeness, planning, timeliness, and attitude. The advantage of the trait

checklist method is that it is easy to install and administrate. All employees are ranked on

the same traits. There are some disadvantages to this method. The traits are general and

do not specifically relate to job performance. There is a tendency to focus on personal

characteristics rather than job performance. Responsibility rating involves the

development of and use of position descriptions for each position to include all major

responsibilities and, where appropriate, standards of performance. Supervisors rate

employees on responsibilities identified on the position description. The advantage of

responsibility rating is that rating factors are specific to the job and rating scales are the

same for all employees. Employees see a direct relation between superior performance

and superior rating. The disadvantages of responsibility rating is that it may lead to

proliferation of position descriptions (to make duties and performance standards apply

specifically to each employee)

The key features of Management by Objective (MBO) are that the employee suggests and

the supervisor agrees on the employee's performance objectives for corning year. MBO

focuses directly on the achievement of business results and not on the personal

characteristics that may contribute to the results. The disadvantage of MBO is that each

employee is rated on different factors and on different scales. This could lead employees

to perceive inequity in the system. MBO is also very time-consuming because extensive

goal setting is required.

The free form rating method has little or no prescribed format. The advantage to free

form is that supervisors are free to rate performance directly without being forced to rate

specific aspects and attributes. The disadvantage to free form is that it is totally

susceptible to varying standards of problems associated with rating employees because

employees are rated without either common rating factors or rating scales. Thus, it is

difficult to reach an overall rating needed for salary administration when the free form

method is used. In addition to the four commonly used performance appraisal methods,

there are six techniques that can be applied to most of these. Essay appraisal is the

simplest form and is easily by most raters. Raters are asked to write a paragraph or more

covering an individual's strengths, weaknesses, potential, and so on. The drawback is the

variability in length and content and the difficulty in combining or comparing ratings.

A graphic rating scale does not yield the depth of essay appraisal but is more consistent

and reliable. Graphic rating assesses a person on the quality and quantity of work

(outstanding, above average, etc.) and on a variety of other factors that vary with the job

(reliability, oral and written communication).

Forced-choice rating was developed to reduce bias and establish objective standards of

comparison between individuals. Raters choose from among groups of statements those

which best fit the individual being rated and those which least fit him. The statements are

then weighted or scored.

Critical incident appraisal gives supervisor actual, factual incidents to discuss with an

employee. Supervisors keep a record on each employee and record actual incidents of

positive or negative behavior. The discussion deals with actual behavior of the employee.

Using the work-standards approach, organizations set measured daily work standards.

These standards establish work and satisfying targets aimed at improving productivity.

This method is most commonly used in manufacturing and production organizations.

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive

appraisal where the feedback about the employees’ performance comes from all the

sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),

subordinates, team members, customers, suppliers/ vendors - anyone who comes into

contact with the employee and can provide valuable insights and information or feedback

regarding the "on-the-job" performance of the employee. 360 degree appraisal has four

integral components, namely, self appraisal, superior’s appraisal, subordinate’s appraisal

and peer appraisal. Self appraisal gives a chance to the employee to look at his/her

strengths and weaknesses, his achievements, and judge his own performance. Superior’s

appraisal forms the traditional part of the 360 degree performance appraisal where the

employees’ responsibilities and actual performance is rated by the superior. Subordinates

appraisal gives a chance to judge the employee on the parameters like communication and

motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also

known as internal customers, the correct feedback given by peers can help to find

employees’ abilities to work in a team, co-operation and sensitivity towards others.

3.28. Employee satisfaction

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 imports skills from other countries. Therefore in order to meet

human resource needs, organization will have to plan in advance about the requirements

and resources.

3.29. Definition of Employees satisfaction

Employee satisfaction is defines as a pleasurable and positive emotional state resulting

from appraisal of one’s job or job experiences (Locke 1976).

Employee satisfaction is nothing but customer satisfaction, since employee is the internal

customers to the organization, customer feel satisfaction when they perceive goods and

services that meet exceed their expectations and needs (Anderson and Sullivan, 1993)

3.30. Meaning of employee satisfaction

In simple words, 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 can not be seen, it can only be inferred. It relates to one’s 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.

Employee satisfaction and job attitudes are typically used inter-changeably. Positive

attitude towards the jobs are conceptually equivalent to employee satisfaction and

negative attitude towards the job indicate job dissatisfaction.

Employee satisfaction is very important because most of these employees spend their

major portion of the life at the working place. Moreover, employee satisfaction creates

impact on general life of the employee also, because a satisfied employee is a happy

human being. A highly satisfied worker is a better physical and mental well being.

Employee satisfaction is influenced by psychological, physiological and environmental

factors.

3.31. Historical development of measurement of Employee satisfaction

One of the biggest preludes to the study of employee satisfaction was the Hawthorne

studies. These studies (1924–1933), primarily credited to Elton Mayo of the Harvard

Business School, sought to find the effects of various conditions (most notably

illumination) on workers’ productivity. These studies ultimately showed that novel

changes in work conditions temporarily increase productivity (called the Hawthorne

Effect). It was later found that this increase resulted, not from the new conditions, but

from the knowledge of being observed. This finding provided strong evidence that people

work for purposes other than pay, which paved the way for researchers to investigate

other factors in employee satisfaction.

Scientific management or Taylorism had a significant impact on the study of employee

satisfaction. Frederick Winslow Taylor’s 1911 book, Principles of Scientific

Management, argued that there was a single best way to perform any given work task.

This book contributed to a change in industrial production philosophies, causing a shift

from skilled labor and piecework towards the more modern of assembly lines and hourly

wages. The initial use of scientific management by industries greatly increased

productivity because workers were forced to work at a faster pace. However, workers

became exhausted and dissatisfied, thus leaving researchers with new questions to answer

regarding employee satisfaction. It should also be noted that the work of W.L. Bryan,

Walter Dill Scott, and Hugo Munsterberg set the tone for Taylor’s work.

Maslow’s hierarchy of needs theory, a motivation theory, laid the foundation for

employee satisfaction theory. This theory explains that people seek to satisfy five specific

needs in life – physiological needs, safety needs, social needs, self-esteem needs, and

self-actualization. This model served as a good basis from which early researchers could

develop employee satisfaction theories.

Employee satisfaction can also be seen within the broader context of the range of issues

which affect an individual's experience of work, or their quality of working life.

Employee satisfaction can be understood in terms of its relationships with other key

factors, such as general well-being, stress at work, control at work, home-work interface,

and working conditions.

3.32. Sources of employee satisfaction

Salaries and wages are the most important variable that influences the employee

satisfaction. Employees shall be provided with competitive salary packages when

compared to in-house co-workers and outsiders of same industry. Fair and equitable

rewards are expected to improve employee satisfaction. All employees will have the

desire to get posted in higher position in the organization. The employee satisfaction

increases with more chances of getting promotion in the company. Favourable company

policies on timing, transfer, medical coverage, transportation facility, bonus, safety

aspects etc. improve the employee satisfaction. The impartial behaviour of supervisors,

cooperation of the co-workers and subordinates play an important role in the employee

satisfaction.

Fig 3.3 Factors influencing employee satisfaction

The employee satisfaction increases in clean working environment. Job scope includes

responsibly, achievements and recognition. The change in job execution rather than

monotonous way of performing would help to improve the employee satisfaction.

Autonomy in decision making and execution of the job and certainty in the role to be

played would help to increase the job perfection and satisfaction. Aged and senior

employee may expect more from the company and hence generally seems to be

dissatisfied. The tenure and personality of the employee influences perception, attitude

and learning. The employee having longer tenure and personality will be ambitious and

will be satisfied in companies having greater promotion chances and job content.

Employee satisfaction

Organizational factors

Salaries and wagesPromotion chancesCompany policies

Work environmental

factors

SupervisionWork groupWorking condition

Work itself Personal factors

Job scopeVarietyAutonomyRole certainty

Age & seniorityTenurePersonality

Outcome of employee satisfaction are productivity, employee turnover and absenteeism.

Employee productivity will be higher in company having more number of satisfied

employees. The turnover or absenteeism will be minimum among satisfied employees in

an organization. Highly satisfied employee tend to have better physical and mental health,

learn tasks quickly, more co-operative and maintain less job stress.

3.33. Performance appraisal at Apollo Tyre Limited, KalamAssery

The self appraisal of officer managers at Apollo is received in standard review forms. The

appraisal is being evaluated once in every year. The appraisal in the year 2012 was

conducted in the month of June. The details of employee development review (EDR)

procedure are given below.

EDR cycle:-

The EDR cycle is from April 1st to March 31st of each financial year

All confirmed employees as on 31st March are eligible fro EDR

The EDR recommendations will be effective from 1st April

Rating design :-

The appraise has to be rated on a four point scale

Outstanding

Good

Average

Below average

Areas of measurement

Contribution to organizational goals (WHAT)

o Review of Key research area (KRA) performance

o Review of functional/ organizational initiatives taken apart from KRAs

Measurement of critical attributes – skills and competencies (HOW)

Career progression

o Job rotation

o Potential assessment

Overall rating

Form design:-

The EDR forms consists of following sections

Contribution to organizational goals

o Demonstrated performance

o Key initiatives

o Skills and competences

Career promotions

Performance summary

Training and development

Evaluation procedure:-

The employee development review (EDR) process is three fold. The EDR forms shall be

filled by appraise, discussed with appraiser and finally approved by reviewer. The

recommendation of reviewer is considered as final.

3.34. SUMMARY

Performance appraisal is an important management tool to audit human capital. In many

organizations, appraisal results are used to fix the reward. The appraisal results are used

to identify better performing employees. However, satisfaction of employee towards the

appraisal system of the company depends on many factors. The total output of the

organization depends on satisfaction level of employees. The performance appraisal is an

important tool to many human resource functions. Hence, relationship between employee

satisfaction and performance appraisal is an important area of research.

Chapter 4

4. research methodology

3.35. introduction

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.

3.36. Need for study

Apollo Tyre Limited is a very large organization having world wide presence. According

to the statistics published for the month of October 2012, the daily production at Apollo

Tyre Limited, Kalamassery is 57.64 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, Kalamassery on employee satisfaction is not

being studied earlier in the company. Present study attempts to fill this lacuna.

3.37. Statement of the problem

The study is aimed at to evaluate whether the employee is satisfied in the present

performance appraisal system at Apollo Tyre Limited, Kalamassery.

3.38. Research objectives

The objectives are to study:-

1. The effectiveness of the communication describing purpose of performance

appraisal (PA).

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

cooperation

7. The effectiveness of conveying corrective actions/ feed back.

8. The employee satisfaction on the performance appraisal procedure and

3.39. SURVEY METHOD

The questionnaire based survey is used in this study. The data collection and analysis is

carried-out based on statistical theories. The questionnaire is composed of ten questions

to evaluate the response of the employees. The questionnaire was issued in person.

Employee were allowed to fill the questionnaire anonymously and allowed to put in the

collection box. The questionnaire consists of different types of questions. The information

about demographic data of the participants is gathered using multiple choice questions

(closed), for which the respondents are required to tick the right answers. Demographic

questions are used to correlate the response between different types of groups. This is

very important to find whether the responses are consistent across the group. The main

part of the questionnaire, which is related to the hypothesis of the thesis, consists of

likert-scale questions. Answer to these questions helps to find how strongly the

respondents agree with the particular statement. The answers of the questions are based

on the five-level scale and options are strongly agree, agree, neither agree nor disagree,

disagree, strongly disagree. The questionnaire is given in Appendix A

3.40. sampling

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. The types of sampling are given in Fig. 4.2.

Probability samples are selected from the population and are considered as the

representative of the population. They provide the most valid or credible results because

they reflect the characteristics of the population from which they are selected. Non-

probability samples are not truly representative and less desirable than probability

samples. Non-probability samples are used when a researcher may not be able to obtain a

random or stratified sample, or it may be too expensive. A researcher may not care about

generalizing to a larger population. The validity of non-probability samples can be

increased by trying to approximate random selection, and by eliminating as many sources

of bias as possible.

In this study, judgment sampling is used. Judgment sampling is a non-probability

sampling technique where the researcher selects the sample based on judgment. In this

method, the researcher may decide to draw the entire sample from one "representative"

group identified, even though the population includes all such groups. When using this

method, the researcher must be confident that the chosen sample is truly representative of

the entire population. In the present study, the researcher collected the response of the

employees of managerial cadre who joined in the afternoon shift in the Apollo Tyre

Limited, Kalamassery Unit on 4th February 2013. The size of the population is the

members in managerial cadre and is ninety at Apollo Tyre Limited, Kalamassery Unit.

Out of the 90 managerial staff, 31 staffs were present on the day of data collection. The

response of 31 staffs was collected with the aid of questionnaire.

3.41. Data collection

The information in the thesis is collected by questionnaire method. The questionnaire was

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 paper copy of questionnaire were given in hand to these employees

and requested to fill up. After one hour, the duly filled questionnaires were collected back

by allowing the employees to drop in the sealed cover to maintain the confidentiality.

The questionnaire consists of different types of questions. The information about

demographic data of the participants is gathered from the multiple choice question

(closed), for which just required that right answers be ticked by the respondents. The

demographic details help to get the status of the work group in terms of gender, age,

education and experience in the company. The main part of the questionnaire, which is

focused to evaluate the postulates given in the hypothesis, consists of Likert-scale

questions. These questions help to find how strongly the respondents agree with the

particular statement. The answers to the questions are based on the five-level scale and

the options are strongly agree, agree, nether agree nor disagree, disagree and strongly

disagree.

3.42. Method of data analysis

The statistical analysis of the data collected based on the questionnaire is carried out. The

frequency of the responses is determined and compared. The score was 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 variance of the scores

of the responses corresponding to each statement is computed and reported in this thesis.

The descriptive statistical analysis is carried out.

The performance appraisal satisfaction index (PASI) of the employee is computed based

on the scores assigned to the responses. PASI is given by

where the denominator 5 represents the highest magnitude of the score, is the mean

score and is given by

the testing of hypothesis is carried out.

Cronbach's alpha (Devllis 1991) is a measure of internal consistency, that is, how closely

related a set of items are as a group. Cronbach's alpha is coefficient or reliability.

Cronbach's alpha is given by

where is the number of components or statements and equal to 31 persons in the

present study. is the variance of observed test score and is the component in

the sample of persons.

Pearson’s correlation coefficient (r) is given by

where , and are the standard score, sample mean, and sample standard

deviation, respectively.

ANOVA is use to test the hypothesis the computation details of ANOVA is given in

Table 4.1.

Table 4.1. ANOVA computation

SourceSum of Squares

(SS)

Degree of Freedom

(df)

Mean SquareF-Statistics P-value

Between Samples

SSB k-1Value from

TableWithin

SamplesSSE n-k -- --

Total SSTO n-1 -- -- --

3.43. Organization of research report

The report is organized in the following headings.

Chapter 1 Introduction

Chapter 2 Industry and company profile

Chapter 3 Theoretical frame work

Chapter 4 Research methodology

Chapter 5 Data analysis and interpretations

Chapter 6 Conclusions

In Chapter 1, brief introduction on overview of the present scenario of performance

appraisal is mentioned. The relationship between performance appraisal and satisfaction

of employees is discussed in Chapter 1.The details on the various chapters are discussed

in Chapter 1.

Chapter 2 contains the profile of tyre industry and Apollo tyres limited. The global

competitors and Indian scenario of the tyre market is provided in Chapter 2. The brands

of Apollo tyres limited in various country is mentioned in Chapter 2.

The theoretical background on the performance appraisal and employee satisfaction is

discussed in Chapter 3. The history of development and purposes of performance

appraisal are discussed in Chapter 3. The method and timing of performance appraisal is

discussed in Chapter 3. The sources of employee satisfaction are discussed in Chapter 3.

The performance appraisal procedure at Apollo Tyres limited, Kalamassery is discussed

in Chapter 3.

The research methodology is discussed in Chapter 4. The method of data collection and

sampling is discussed in Chapter 4. The objectives of research are given in Chapter 4. The

data collection and the theoretical details of the data analysis is given in Chapter 4.

The analysis of collected data based on questionnaire survey and interpretation of analysis

results is discussed in Chapter 5. The frequency of the response and descriptive statistical

analysis of data is carried out and the results are discussed in Chapter 5.

The summary, finding and conclusions of the study are discussed in Chapter 6.

3.44. SUMMARY

The various aspects of design of experiments are described. The questionnaire method is

adopted for the collection of data. The level of agreement to the ten statements are

allowed to mark in 5 point score Likert-scale. The sample has been drawn from the

population based on the judgment method. The duly filled questionnaire is collected from

the respondents. The frequency and descriptive statistical analysis of responses are carried

out.

Chapter 5

5. DATA ANALYSIS AND INTERPRETATIONS

3.45. introduction

The duly filled-up questionnaire was collected from 31 managerial cadre employees of

Apollo Tyre Limited, Kalamassery. The data of response is analyzed using Microsoft

excel software. The ratio of the response to the total number of respondents is computed

and expressed in percentage. The response for the questions related to the subject area of

the studty is collected in Likert-scale. The descriptive statistical method is also used to

analyze the data. The minimum, maximum, mean, standard deviation and variance have

been computed based on the five point scale response of the employees

3.46. demographic details of the respondents

The first part of the questionnaire was designed to collect the demographic details of the

respondents. The demographic information gives the details of gender, age, education and

experience at Apollo Tyre Limited, Kalamassery of employees of managerial cadre. The

demographic information of the respondents are given in

Table 5.1. Gender statistics

Gender Respondents PercentageMale 29 94%Female 2 6%Total 31 100%

Gender Statistics

0%

20%

40%

60%

80%

100%

Male Female

Res

po

den

ts

Fig 5.1. Gender statistics of respondents

The gender statistics of the respondents are given in Fig 5.1. The male respondents are

found to be 94 percent. Apollo Tyres Limited, Kalamassery is a manufacturing firm and

majority of the workers are males. The managers are required to attend the production

plant issues. Hence males are more appropriate and being employed in the company.

Table 5.2. Age statistics

Age Respondents Percentage25 to 35 years 15 49%35 to 45 years 10 32%45 to 55 years 6 19%Total 31 100%

Age statistics

0%

20%

40%

60%

80%

100%

25-35 35-45 45-55

Age (years)

Res

po

den

ts

Fig 5.2. Age statistics of the respondents

The age statistics of the respondents is given in Fig 5.2. The managers having formal age

less than 35 years is found to 49 percent. It is found the majority of employees in the

managerial cadre are young and in the age group of 25 to 35 years.

Table 5.3. Formal education statistics

Education Respondents Percentage< Bachelor degree 2 6%Bachelor degree 12 39%> Bachelor degree 17 55%Total 31 100%

Statistics of formal education

0%

20%

40%

60%

80%

100%

<Bachelordegree

Bachelordegree

>Bachelordegree

Res

po

den

ts

Fig 5.3. Education statistics of the respondents

The education statistics of respondents is given in Fig 5.3. The managers having formal

education greater than bachelors degree is found to 55 percent. The majority of the

employees in the managerial cadre are well educated.

Table 5.4. Experience statistics

Experience Respondents Percentage0 to 2 years 2 6%2 to 5 years 6 19%> 5 years 23 75%Total 31 100%

Company experience statistics

0%

20%

40%

60%

80%

100%

0-2 2-5 >5

Experience (years)

Res

po

den

ts

Fig 5.4. The Apollo Tyres Ltd experience statistics of respondents

The experience of the respondents in Apollo Tyres Ltd is given in Fig 5.2. The

respondents having experience greater than 5 years is found to be 75 percent. The

majority of the respondents is well experienced and hence might have undergone

employee development review cycle in many occasions.

3.47. FREQUENCY OF response

The second part of the questionnaire is connected with hypothesis of the research. There

were 10 statements on various aspects of performance appraisal and the respondents are

requested to tick the level of agreement or disagreement in a Likert scale. The frequency

of the responses of the employees is given in Table 5.5.

The highest magnitude of the frequency is found to be 74% against the option ‘agree’ for

the statement clarifying the use of performance appraisal as promotion and pay fixation.

No respondents have opted ‘strongly disagree’ for any of the questions posted in the

questionnaire. For all questions, the highest frequency of response is found to be

corresponding to the option ‘agree’. The highest magnitude of the frequency for various

statements is found to be between 52 to 74 percent. This indicates that the various aspects

of performance appraisal stated in the questionnaire are positively correlated to the

satisfaction of the employee. The result of frequency analysis of the employees is given in

Table 5.5.

Table 5.5. Frequency of response for statements

StatementStrongly

agreeAgree

Neither agree nor

disagree

DisagreeStrongly disagree

1. I clearly understand the purpose of performance appraisal

48% 52% 0% 0% 0%

2. Performance appraisal in my company is fair

26% 68% 6% 0% 0%

3. Performance appraisal reflects objectively my performance

13% 71% 16% 0% 0%

4. Performance appraisal is a tool for promotion and pay fixation

23% 74% 3% 0% 0%

5. Performance appraisal process helps my superior to manage

people better10% 61% 23% 6% 0%

6. Performance appraisal process encourages co-operation and team

spirit13% 55% 26% 6% 0%

7. Performance appraisal influences individual performance

positively19% 72% 3% 6% 0%

8. Present appraisal system recognizes improved performance

of individual16% 65% 13% 6% 0%

9. Performance appraisal is a career developmental and

educational tool16% 52% 29% 3% 0%

10. Performance appraisal feedback will be conveyed to me

13% 62% 6% 19% 0%

1. I clearly understand the purpose of performance appraisal

48% 52%

0% 0% 0%0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragreenor

disagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig. 5.5. The frequency of response for statement no.1

The frequency of the response of question on knowledge of the employee on performance

appraisal is given in Fig. 5.5. It is found that 48 percent respondents opted ‘strongly

agree’ and 52 percent respondents opted ‘agree’. This indicates that communication

regarding the purpose of performance appraisal is satisfactory.

2. Performance appraisal in my company is fair

26%

68%

6%0% 0%

0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig. 5.6. The frequency of response for statement no.2

The frequency of the response on the opinion about the present appraisal system in

Apollo Tyres Ltd., Kalamassery is given in Fig 5.6. It is found that 26 percent

respondents opted ‘strongly agree’, 68 percent respondents opted ‘agree’ and 6 percent

opted ‘neither agree nor disagree’. This indicates that majority of the respondents

positively agrees on the fact that the performance appraisal in the company is fair.

3. Performance appraisal reflects objectively my performance

13%

71%

16%

0% 0%0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig 5.7. The frequency of response for statement no.3

The frequency of response on the capability of the present performance appraisal system

to reflect the employee performance is given in Fig. 5.7. It is found that 13 percent

respondents opted ‘strongly agree’, 71 percent respondents opted ‘agree’ and 16 percent

opted ‘neither agree nor disagree’. This indicates that majority of the employees are

convinced with the fact that the preset system for performance appraisal objectively

reflects the employee’s performance.

4. Performance appraisal is a tool for promotion and pay fixation

23%

74%

3% 0% 0%0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig. 5.8. The frequency of response for statement no.4

The frequency of the response on the statement that performance appraisal is a tool for

promotion and pay fixation is given in Fig. 5.8. It is found that 23 percent respondents

opted ‘strongly agree’, 74 percent respondents opted ‘agree’ and 3 percent opted ‘neither

agree nor disagree’. This indicates that majority of the respondents accept the fact that as

found in other companies, performance appraisal in Apollo Tyres Ltd., Kalamassery is a

tool for promotion and pay fixation.

5. Performance appraisal process helps my superior to manage people better

10%

61%

23%

6%0%

0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig. 5.9. The frequency of response for statement no.5

The frequency of the response on the statement that performance appraisal helps to

superior to manage subordinates is given in Fig. 5.9. It is found that 10 percent

respondents opted ‘strongly agree’, 61 percent respondents opted ‘agree’, 23 percent

opted ‘neither agree nor disagree’ and 6 percent opted disagree. This indicates that

majority of the respondents accept the fact that performance appraisal in Apollo Tyres

Ltd., Kalamassery is tool for effective management.

6. Performance appraisal process encourages co-operation and team spirit

13%

55%

26%

6% 0%0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragreenor

disagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig 5.10. The frequency of response for statement no.6

The frequency o the response of the statement on the benefits of performance appraisal

towards generating co-operation and team spirit is given in Table 5.10. Thirteen percent

of the respondents opted ‘strongly agree’, fifty five percent opted ‘agree’, twenty six

percent opted ‘neither agree nor disagree’, six percent opted ‘disagree’. Though there is a

general opinion that the performance appraisal encourages co-operation and team spirit, it

seems that there is a scope for improvement in this aspect.

7. Performance appraisal influences individual performance positively

19%

72%

3% 6%0%

0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig 5.11. The frequency of response for statement no.7

The frequency of the response on aspect that individual performance is being explicitly

accounted for in the performance appraisal process is given in Fig. 5.10. It is found that

19 percent respondents opted ‘strongly agree’, 72 percent respondents opted ‘agree’, 3

percent opted ‘neither agree nor disagree’ and 6 percent opted disagree. This indicates

that majority of the respondents accept the fact that individual performance is positively

accounted for in performance appraisal in Apollo Tyres Ltd., Kalamassery.

8. Present appraisal system recognizes improved performance of individual

16%

65%

13%6%

0%0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig 5.12 The frequency of response for statement no.8

The frequency of the response on aspect that improved performance of individual is being

explicitly accounted for in the performance appraisal process is given in Fig. 5.12. It is

found that 16 percent respondents opted ‘strongly agree’, 65 percent respondents opted

‘agree’, 13 percent opted ‘neither agree nor disagree’ and 6 percent opted disagree. This

indicates that majority of the respondents accept the fact that improved performance of

individual is accounted for in performance appraisal in Apollo Tyres Ltd., Kalamassery.

9. Performance appraisal is a career developmental and educational tool

16%

52%

29%

3% 0%0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig 5.13 The frequency of response for statement no.9

The frequency of the response on aspect that performance appraisal is a developmental

and educational tool is given in Fig. 5.13. It is found that 16 percent respondents opted

‘strongly agree’, 52 percent respondents opted ‘agree’, 29 percent opted ‘neither agree

nor disagree’ and 3 percent opted disagree. Though there is a general opinion that the

performance appraisal is a career development and education tool, it seems that there is a

scope for improvement in this aspect.

10. Performance appraisal feedback will be conveyed to me

13%

62%

6%19%

0%0%

20%

40%

60%

80%

100%

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

Fig 5.14 The frequency of response for statement no.10

The frequency of the response on aspect that feedback of performance appraisal is

conveyed to employee is given in Fig. 5.14. It is found that 13 percent respondents opted

‘strongly agree’, 61 percent respondents opted ‘agree’, 6 percent opted ‘neither agree nor

disagree’ and 19 percent opted disagree. Though there is a general opinion that the

feedback is communicated after conducting the performance appraisal, it seems that there

is a scope for improvement in this aspect.

3.48. descriptive statistics

The statements in the questionnaire have been reviewed statistically. Descriptive statistics

quantitatively describes the main features of a collected data. For this purpose, the scores

assigned to various options are as follows:- 5 to ‘strongly agree’, 4 to ‘agree’, 3 to

‘neither agree or disagree’, 2 to ‘disagree’ and 1 to ‘strongly agree’. Univariate analysis

is carried out, which involves describing the distribution of a single variable, including its

central tendency and dispersion. The central tendency of the data computed is mean and

dispersion of score is represented by maximum, minimum, standard deviation and

variance. The descriptive statistics of the score data is given in Table 5.5. The minimum,

maximum and mean of scores is presented in Fig. 5.15.

1

2

3

4

5

1 2 3 4 5 6 7 8 9 10

Question number

Sco

re

MeanMinimum

Maximum

Fig 5.15. The range and mean of the scores of the statements

Table 5.6. Statistics of scores of response for statements in questionnaire

Statement Minimum Maximum Mean*Standard deviation

Variance

1. I clearly understand the purpose of performance

appraisal4 5 4.48 0.51 0.26

2. Performance appraisal in my company is fair

3 5 4.19 0.54 0.29

3. Performance appraisal reflects objectively my

performance3 5 3.97 0.55 0.30

4. Performance appraisal is a tool for promotion and pay

fixation3 5 4.19 0.48 0.23

5. Performance appraisal process helps my superior to

manage people better2 5 3.74 0.73 0.53

6. Performance appraisal process encourages co-

operation and team spirit2 5 3.74 0.77 0.60

7. Performance appraisal influences individual

performance positively2 5 4.03 0.71 0.50

8. Present appraisal system recognizes improved

performance of individual2 5 3.90 0.75 0.56

9. Performance appraisal is a career developmental and

educational tool2 5 3.81 0.75 0.56

10. Performance appraisal feedback will be conveyed to

me2 5 3.68 0.94 0.89

*Total number of respondents = 31

The minimum score for every statement in the questionnaire is given in second column of

Table 5.5. The highest score in second column is 4, which corresponds to the response

‘agree’ and is for statement no. 1. The lowest score in the second column is 2, which

corresponds to the response ‘disagree’, and is for statement number 5 to 10. This indicates

that there is scope for improvement for the parameters pointed out in statement number 5

to 10. The maximum score of the statements are given in third column of Table 5.6. The

maximum score for all statements is 5, which corresponds to the response ‘strongly

agree’.

The mean of score is given in fourth column of Table 5.5. Higher the magnitude of mean

indicates that higher is the level of agreement on the statement and vice versa. Highest

magnitude of means is found to be 4.48 and is for statement number 1. This indicates that

the purpose of performance appraisal is clear among employees. The lowest magnitude

of mean is found to be 3.68 and is found to be for statement number 10. This indicates

that there is scope for improvement in the communication of feedback in the performance

appraisal process.

The standard deviation and variance of the score data indicate the spread of the data from

the mean and is given in Table 5.6. The deviation is 0.48 for statement number 4. This

indicates that the pay fixation and promotion based on the performance appraisal is

effectively communicated and it reaches to all the members. The deviation is 0.94 for

statement number 10. This indicates that communication regarding the feedback is not

reaching to all the employees equally. It is suggested that mechanism shall be

implemented to confirm that feedback of performance appraisal is reached to the

employees. The variance is indicative of variation from the mean. The variance is

correlated standard deviation, the arguments for placed for standard deviation can be

extended to variance also.

3.49. performance appriasal – satisfaction index (pasi)

The performance appraisal satisfaction index (PASI) of the employee is computed based

on the scores assigned to the responses in section 5.4. The performance appraisal

satisfaction index (PASI) of respondents is plotted in Fig. 5.16.

20%

40%

60%

80%

100%

1 4 7 10 13 16 19 22 25 28 31

Respondent number

Per

form

ance

ap

pri

sal

sati

sfac

tio

n i

nd

ex

Mean = 79%SD = 9%

Fig 5.16. PASI of respondents

The maximum magnitude of PASI is found to be 100 percent and lowest magnitude of

PASI is found to 56 percent. Respondent number 17 and 19 scored PASI of 56 percent.

The commonality of the demographic details among two respondents was, they were

males having bachelor degree and experience more than 5 years. Hence it is

recommended that the special attention shall be considered to accommodate the needs of

experienced employee having more than five years of experience in the performance

appraisal.

3.50. testing of hypothesis

The details of overall satisfaction are given in Table 5.7. The hypothesis of the research

work was “The employees in Apollo Tyres Limited, Kalamassery are satisfied with the

performance appraisal.” The range of scores of the responses is 2 to 5. The magnitude of

mean of scores is an indication to the overall satisfaction level of employees. The mean of

scores is 3.97, which is greater than mid value of maximum score (equal to 2.5). This

indicates that, in general, employees are satisfied with the performance appraisal process

in Apollo Tyre Limited, Kalamassery. The standard deviation is 0.79, which is less than

the increment in magnitude of score (equal to 1) considered for different options in the

questionnaire. This indicates that the deviation of collected data from the mean is low and

hence the interpretation based on mean is can be acceptable. The variance is 0.52.

Cronbah’s alpha is 0.787, a magnitude greater than 0.7 indicates that the data is reliable

for testing the hypothesis (Nunnaly, 1978).

Table 5.7. Statistical evaluation of the overall responsesStatements under

considerationMinimum Maximum Mean Standard

deviationVariance Cronbach’s

alpha Overall

(statement number 1 to 10)

2 5 3.97 0.72 0.52 0.787

The research hypothesis is to study the level of satisfaction of employees on the

performance appraisal of the company. The aspect of satisfaction is explicitly stated in

the questionnaire.

Statement in questionnaire: 2. Performance appraisal in my company is fair

The relationship of response of statement no.2 with the major parameters of satisfaction,

namely, communication, measurement policy and post-review decision are analyzed

statistically. The statements corresponding to these parameters are given below.

Parameter 1: Communication

1. I clearly understand the purpose of performance appraisal

10. Performance appraisal feedback will be conveyed to me

Parameter 2: Measurement policies

3. Performance appraisal reflects objectively my performance

7. Performance appraisal influences individual performance positively

8. Present appraisal system recognizes improved performance of individual

Parameter 3: Post-review decisions

4. Performance appraisal is a tool for promotion and pay fixation

5. Performance appraisal process helps my superior to manage people better

6. Performance appraisal process encourages co-operation and team spirit

9. Performance appraisal is a career developmental and educational tool

The responses of the various statements in the questionnaire are combined to evaluate

each parameter. The sum of the scores of responses of statements is assumed to be the

response of each of three parameters. The statistical analysis, namely, correlation

coefficient and F-test are carried out.

The correlation matrix between the parameter 1 to 3 and satisfaction is computed and is

given in Table 5.8. The correlation study indicates that the overall satisfaction is strongly

related to the communication (parameter 1), measurement policies (parameter 2) and

post-review decisions (parameter 3). It may be also noted that the parameters

communication, measurement policies and post-review decisions are interdependent.

Table 5.8. Correlation coefficient matrix of factors influencing employee satisfaction and performance appraisal

Satisfaction Parameter 1 Parameter 2 Parameter 3

Satisfaction 1 0.5460 0.5357 0.3867

Parameter 1 0.5460 1 0.7493 0.4202

Parameter 2 0.5357 0.7493 1 0.6945

Parameter 3 0.3867 0.4202 0.6945 1

Analysis of variance is carried out for testing the hypothesis. F-statistics of the responses

for satisfaction and paratemeters1 to 3 is computed for testing hypothesis. The details of

ANOVA are given in Table 5.9.

The null hypothesis is:-

The satisfaction of employee is unrelated to communication (parameter 1) in

performance appraisal.

The satisfaction of employee is unrelated to measurement policies (parameter 2)

in performance appraisal.

The satisfaction of employee is unrelated to post-review decisions (parameter 3) in

performance appraisal

Table 5.9. Results of ANOVA using Microsoft® excel program

ANOVAF value

(df1=1, df2=30, α = 0.05) p-valueF-calculated F-critical

SatisfactionParameter1

Communication311.2963 4.0012 2.00E-25

SatisfactionParameter2

Measurement policies

257.9866 4.0012 2.12E-23

SatisfactionParameter3Post-review

decisions855.4469 4.0012 3.32E-37

The calculated and critical F-value of ANOVA is given in Table 5.8. It may be noted that

the calculated F-value is greater than critical F-value, which indicate that notion that

variance are equal shall be rejected. Hence, the null hypothesis is rejected and it may be

concluded that the parameters, namely, communication, measurement policies and post-

review decisions are strongly related to the satisfaction. The magnitude of p-value is very

small for all parameters, which indicate that it is more certain to conclude that null

hypothesis is false.

3.51. Influence of age OF EMPLOYEE ON PERFORMANCE APPRAISAL SATISFACTION

The influence of age on the satisfaction of employees is studied. The response of

employees of age group 25 to 35 and above 35 is compared. The frequency response of

the two age groups is given in Table 5.10.

Table 5.10 Comparison of frequency of response of statements by employees of different age groups

Statement Strongly

agreeAgree Neither agree

nor disagreeDisagree Strongly

disagreeAG1* AG2+ AG1* AG2+ AG1* AG2+ AG1* AG2+ AG1* AG2+

1. I clearly understand the

purpose of performance

appraisal

19% 29% 29% 23% 0% 0% 0% 0% 0% 0%

2. Performance appraisal in

my company is fair

10% 16% 39% 29% 0% 6% 0% 0% 0% 0%

3. Performance

appraisal reflects

objectively my

performance

3% 10% 42% 29% 3% 13% 0% 0% 0% 0%

4. Performance appraisal is a

tool for promotion and

pay fixation

13% 10% 35% 39% 0% 3% 0% 0% 0% 0%

5. Performance

appraisal process helps my superior to

manage people better

3% 7% 32% 29% 13% 10% 0% 6% 0% 0%

Statement Strongly

agreeAgree Neither agree

nor disagreeDisagree Strongly

disagreeAG1* AG2+ AG1* AG2+ AG1* AG2+ AG1* AG2+ AG1* AG2+

6. Performance

appraisal process

encourages co-operation

and team spirit

3% 10% 32% 23% 10% 16% 3% 3% 0% 0%

7. Performance

appraisal influences individual

performance positively

6% 13% 39% 33% 3% 0% 0% 6% 0% 0%

8. Present appraisal system

recognizes improved

performance of individual

6% 10% 35% 30% 6% 7% 0% 6% 0% 0%

9. Performance appraisal is a

career developmental

and educational

tool

6% 10% 26% 26% 16% 13% 0% 3% 0% 0%

10. Performance

appraisal feedback will be conveyed

to me

6% 7% 35% 27% 3% 3% 3% 16% 0% 0%

*AG1 = Age group 25 to 35 years & number of respondents = 15+ AG2 = Age group greater than 35 years & number of respondents = 16

The magnitude of frequency of response given in Table 5.10 indicates that response of

employees having age of 25 to 35 and greater than 35 years is comparable. Hence it may

be concluded that the satisfaction level on the performance appraisal between the

different age group of employees is almost same. The highest magnitude of the frequency

of response of employees of age 25 to 35 years is found to be 42 percent and is for

statement number 3. The highest magnitude of the frequency of response of employees of

age greater than 35 years is found to be 39 percent and is corresponding to the statement

number 5. Hence it may be concluded that the statement number 4 is accepted by

majority of the workers of age group 25 to 35 and statement number 5 by age group

greater than 5.

1. I clearly understand the purpose of performance appraisal

1929

0 0 0

2923

0 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

>35 years

Age

Fig 5.17. Influence of age on response of statement number 1

The influence of age of the employees on the response of the statement number 1 is given

in Fig 5.17. The frequency of the response of the statement on awareness of the purpose

of performance appraisal is evaluated in statement number 1. Twenty nine percent of the

employees of age group greater than 35 years are opted ‘strongly agree’ and twenty nine

percent of the employees of age group between 25 and 35 opted ‘agree’.

2. Performance appraisal in my company is fair

10

39

0 0 0

1629

6 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

>35 years

Age

Fig 5.18. Influence of age on response of statement number 2

The influence of age of the employees on the response of the statement number 2 is given

in Fig 5.18. The frequency of the response of the statement on the fair execution of the

performance appraisal is evaluated in statement number 2. Twenty nine percent of the

employees of age group greater than 35 years are opted ‘agree’ and thirty nine percent of

the employees of age group between 25 and 35 opted ‘agree’.

3. Performance appraisal reflects objectively my performance

3

42

3 0 010

29

130 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

>35 years

Age

Fig 5.19. Influence of age on response of statement number 3

The influence of age of the employees on the response of the statement number 3 is given

in Fig 5.19. The frequency of the response of the statement on the satisfaction level on

objectiveness of performance appraisal is evaluated in statement number 3. Twenty nine

percent of the employees of age group greater than 35 years are opted ‘agree’ and forty

two percent of the employees of age group between 25 and 35 opted ‘agree’.

4. Performance appraisal is a tool for promotion and pay fixation

13

35

0 0 010

39

3 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

>35 years

Age

Fig 5.20. Influence of age on response of statement number 4

The influence of age of the employees on the response of the statement number 4 is given

in Fig 5.20. The frequency of the response of the statement on the purpose of

performance appraisal as promotion and pay fixation tool is evaluated in statement

number 4. Thirty nine percent of the employees of age group greater than 35 years are

opted ‘agree’ and thirty five percent of the employees of age group between 25 and 35

opted ‘agree’.

5. Performance appraisal process helps my superior to manage people better

3

32

130 0

7

29

10 6 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

> 35 years

Age

Fig 5.21. Influence of age on response of statement number 5

The influence of age of the employees on the response of the statement number 5 is given

in Fig 5.21. The frequency of the response of the statement on the purpose of

performance appraisal as management tool is evaluated in statement number 5. Twenty

nine percent of the employees of age group greater than 35 years are opted ‘agree’ and

thirty two percent of the employees of age group between 25 and 35 opted ‘agree’.

6. Performance appraisal process encourages co-operation and team spirit

3

32

103 0

1023

163 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

>35 years

Age

Fig 5.22. Influence of age on response of statement number 6

The influence of age of the employees on the response of the statement number 6 is given

in Fig 5.22. The frequency of the response of the statement on the purpose of

performance appraisal as tool to improve cooperation and team sprit is evaluated in

statement number 6. Twenty three percent of the employees of age group greater than 35

years are opted ‘agree’ and thirty two percent of the employees of age group between 25

and 35 opted ‘agree’.

7. Performance appraisal influences individual performance positively

6

39

3 0 013

33

0 6 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

>35 years

Age

Fig 5.23. Influence of age on response of statement number 7

The influence of age of the employees on the response of the statement number 7 is given

in Fig 5.23. The frequency of the response of the statement on capability of performance

appraisal to individual performance is evaluated in statement number 7. Thirty three

percent of the employees of age group greater than 35 years are opted ‘agree’ and thirty

nine percent of the employees of age group between 25 and 35 opted ‘agree’.

8. Present appraisal system recognizes improved performance of individual

6

35

6 0 010

30

7 6 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

>35 years

Age

Fig 5.24. Influence of age on response of statement number 8

The influence of age of the employees on the response of the statement number 8 is given

in Fig 5.24. The frequency of the response of the statement on capability of performance

appraisal to improved performance of an individual is evaluated in statement number 8.

Thirty percent of the employees of age group greater than 35 years are opted ‘agree’ and

thirty five percent of the employees of age group between 25 and 35 opted ‘agree’.

9. Performance appraisal is a career developmental and educational tool

6

2616

0 010

2613

3 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

>35 years

Age

Fig 5.25. Influence of age on response of statement number 9

The influence of age of the employees on the response of the statement number 9 is given

in Fig 5.25. The frequency of the response of the statement on purpose of performance

appraisal as career development and education (training) tool is evaluated in statement

number 9. Twenty six percent of the employees of age group greater than 35 years are

opted ‘agree’ and twenty six percent of the employees of age group between 25 and 35

opted ‘agree’.

10. Performance appraisal feedback will be conveyed to me

6

35

3 3 07

27

316

00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

25-35 years

>35 years

Age

Fig 5.26. Influence of age on response of statement number 10

The influence of age of the employees on the response of the statement number 10 is

given in Fig 5.26. The frequency of the response of the statement on communication of

feedback of performance appraisal is evaluated in statement number 10. Twenty seven

percent of the employees of age group greater than 35 years are opted ‘agree’ and thirty

five percent of the employees of age group between 25 and 35 opted ‘agree’.

Table 5.11. Descriptive statistical analysis of influence of age on response of scores for statements in questionnaire

Statement Minimum Maximum Mean Standard

deviation Variance

AG1* AG2+ AG1* AG2+ AG1* AG2+ AG1* AG2+ AG1* AG2+

1. I clearly understand the

purpose of performance

appraisal

4 4 5 5 4.40 4.56 0.51 0.51 0.26 0.26

2. Performance appraisal in

my company is fair

4 3 5 5 4.20 4.19 0.41 0.66 0.17 0.43

3. Performance appraisal reflects

objectively my performance

3 3 5 5 4.00 3.94 0.38 0.68 0.14 0.46

4. Performance appraisal is a

tool for promotion and

pay fixation

4 3 5 5 4.27 4.13 0.46 0.50 0.21 0.25

5. Performance appraisal

process helps my superior to manage people

better

3 2 5 5 3.80 3.69 0.56 0.87 0.31 0.76

Statement Minimum Maximum Mean Standard

deviation Variance

AG1* AG2+ AG1* AG2+ AG1* AG2+ AG1* AG2+ AG1* AG2+

6. Performance appraisal process

encourages co-operation and

team spirit

2 2 5 5 3.73 3.75 0.70 0.86 0.50 0.73

7. Performance appraisal

influences individual

performance positively

3 2 5 5 4.07 4.00 0.46 0.89 0.21 0.80

8. Present appraisal system

recognizes improved

performance of individual

3 2 5 5 4.00 3.81 0.53 0.91 0.29 0.83

9. Performance appraisal is a

career developmental

and educational

tool

3 2 5 5 3.80 3.81 0.68 0.83 0.46 0.70

10. Performance

appraisal feedback will

be conveyed to me

2 2 5 5 3.93 3.44 0.70 1.09 0.50 1.20

Overall

(statement number 1 to

10)

2 2 5 5 4.02 3.93 0.57 0.83 0.33 0.69

*AG1 = Age group 25 to 35 years & number of respondents = 15+ AG2 = Age group greater than 35 years & number of respondents = 16

The score based comparative study of scores of responses of the employees is given in

Table 5.11. The rank of 5 to 1 is given corresponding to the option ‘strongly agree’ to

‘strongly disagree’. The minimum score opted by age group between 25 and 35 years is

found to be 2 and is corresponding to the statement 6 and 10. The maximum score opted

for all statements by age group between 25 and 35 years is found to be 5. The minimum

score opted by age group greater than 35 years is found to be 2 and is corresponding to

the statement 5 to 10. The maximum score opted for all statements by age group greater

than 35 years is found to be 5. The mean, standard deviation and variance of score of the

responses opted by different age group is compared in Table 5.11.

1

2

3

4

5

1 2 3 4 5 6 7 8 9 10

Statement Number

Mea

n S

core

25-35 years

>35 years

Age

Fig 5.27. Influence of age of employees on the mean score of responses for the statements 1 to 10.

The mean of the scores opted by age group between 25 and 35 years is compared with the

corresponding data of age group greater tan 35 years and is also given in Fig 5.27. The

magnitude of mean of score opted by the two age groups is found to be comparable and

hence it may be concluded that age of employees does not influence the satisfaction level

of employees on performance appraisal system significantly.

Table 5.12. The correlation of mean of scores of statements by different age groupsAge 25 to 35 years Age >35 years

Age 25 to 35 years 1 0.8424

Age > 35 years 0.8424 1

The correlation coefficient of mean of scores for the statements in the questionnaire opted

by the two age groups namely 25to 35 years and greater than 35 years is found to be

0.8424 and is given in Table 5.12. This indicates that the mean of the scores of two age

groups is correlated.

The null hypothesis of this part of the study is the response of employees of age group

between 25 and 35 years is unrelated to the response of the employees of age group

greater than 35 years on the performance appraisal system in Apollo Tyres Limited,

Kalamassery. The ANOVA is carried out to test the null hypothesis and the results are

given in Table 5.13.

Table 5.13. Results of ANOVA of mean scores of responses of different age groups

ANOVAF value

(df1=1, df2=18, α = 0.05) p-valueF-calculated F-critical

Age group between 25 and

35 years

Age group greater 35 years

0.5462 4.4138 0.4693

The results of the ANOVA indicate that the null hypothesis is false. The mean of the

score of responses of two age groups namely 25to 35 years and greater than 35 years is

not mutually exclusive.

3.52. Influence of FORMAL EDUCATION ON SATISFACTION OF PERFORMANCE APPRAISAL

The influence of education on the satisfaction of employees is studied. The response of

employees of education group up to bachelor degree and above bachelor degree is

compared. The frequency response of the employee groups differ in formal education is

given in Table 5.14.

Table 5.14 Comparison of frequency of response of statements by employees having different education

Statement Strongly

agreeAgree Neither agree

nor disagreeDisagree Strongly

disagreeED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+

1. I clearly understand the

purpose of performance

appraisal

16% 32% 29% 23% 0% 0% 0% 0% 0% 0%

2. Performance appraisal in

my company is fair

13% 13% 29% 39% 3% 3% 0% 0% 0% 0%

3. Performance

appraisal reflects

objectively my

performance

6% 7% 32% 39% 6% 10% 0% 0% 0% 0%

4. Performance appraisal is a

tool for promotion and

pay fixation

16% 7% 26% 48% 3% 0% 0% 0% 0% 0%

5. Performance

appraisal process helps my superior to

manage people better

10% 0% 19% 42% 10% 13% 6% 0% 0% 0%

6. Performance

appraisal process

encourages co-operation

and team spirit

10% 3% 19% 36% 13% 13% 3% 3% 0% 0%

Statement Strongly

agreeAgree Neither agree

nor disagreeDisagree Strongly

disagreeED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+

7. Performance

appraisal influences individual

performance positively

3% 16% 35% 37% 0% 3% 6% 0% 0% 0%

8. Present appraisal system

recognizes improved

performance of individual

13% 3% 23% 42% 3% 10% 6% 0% 0% 0%

9. Performance appraisal is a

career developmental

and educational

tool

13% 3% 10% 42% 19% 10% 3% 0% 0% 0%

10. Performance

appraisal feedback will be conveyed

to me

13% 0% 23% 39% 0% 6% 10% 9% 0% 0%

* ED1 = Group of employees having formal education up to Bachelor degree & number of respondents = 14+ ED2 = Group of employees having formal education greater than Bachelor degree & number of respondents = 17

The magnitude of frequency of response given in Table 5.14 indicates that response of

employees having formal education up to bachelor degree and greater than bachelor

degree is comparable. Hence it may be concluded that the satisfaction level on the

performance appraisal between employees differ in experience is almost same. The

highest magnitude of the frequency of response of employees having formal education up

to bachelor degree is found to be 48 percent and is for statement number 4. The highest

magnitude of the frequency of response of employees having formal education greater

than bachelor degree is found to be 35 percent and is corresponding to the statement

number 7. Hence it may be concluded that the statement number 4 is accepted by

majority of employees having formal education up to bachelor degree and statement

number 7 by employees having education greater than bachelor degree.

1. I clearly understand the purpose of performance appraisal

1629

0 0 0

3223

0 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

>B. Degree

Education

Fig 5.28. Influence of formal education on response of statement number 1

The influence of formal education of the employees on the response of the statement

number 1 is given in Fig 5.28. The frequency of the response of the communication of the

purpose of performance appraisal is evaluated in statement number 1. Thirty two percent

of the employees having formal education greater than bachelor degree are opted

‘strongly agree’ and twenty nine percent of the employees having formal education up to

bachelor degree opted ‘agree’.

2. Performance appraisal in my company is fair

13

29

3 0 013

39

3 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

>B. Degree

Education

Fig 5.29. Influence of formal education on response of statement number 2

The influence of formal education of the employees on the response of the statement

number 2 is given in Fig 5.29. The overall satisfaction on the performance appraisal is

evaluated using statement number 2. Thirty nine percent of the employees having formal

education greater than bachelor degree are opted ‘agree’ and twenty nine percent of the

employees having formal education up to bachelor degree opted ‘agree’.

3. Performance appraisal reflects objectively my performance

6

32

6 0 07

39

100 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

>B. Degree

Education

Fig 5.30. Influence of formal education on response of statement number 3

The influence of formal education of the employees on the response of the statement

number 3 is given in Fig 5.30. Whether the appraisal system objectively evaluates

individual’s performance is studied using statement number 3. Thirty nine percent of the

employees having formal education greater than bachelor degree are opted ‘agree’ and

thirty two percent of the employees having formal education up to bachelor degree opted

‘agree’.

4. Performance appraisal is a tool for promotion and pay fixation

1626

3 0 07

48

0 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

>B. Degree

Education

Fig 5.31. Influence of formal education on response of statement number 4

The influence of formal education of the employees on the response of the statement

number 4 is given in Fig 5.31. The frequency of the response of the statement on the

purpose of performance appraisal as promotion and pay fixation tool is evaluated in

statement number 4. Forty eight percent of the employees having formal education

greater than bachelor degree are opted ‘agree’ and twenty six percent of the employees

having formal education up to bachelor degree opted ‘agree’.

5. Performance appraisal process helps my superior to manage people better

1019

10 6 00

42

130 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

> B. Degree

Education

Fig 5.32. Influence of formal education on response of statement number 5

The influence of formal education of the employees on the response of the statement

number 5 is given in Fig 5.32. The frequency of the response of the statement on the

purpose of performance appraisal as management tool is evaluated in statement number 5.

Forty two percent of the employees having formal education greater than bachelor degree

are opted ‘agree’ and nineteen percent of the employees having formal education up to

bachelor degree opted ‘agree’.

6. Performance appraisal process encourages co-operation and team spirit

1019 13

3 03

36

133 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

>B. Degree

Education

Fig 5.33. Influence of formal education on response of statement number 6

The influence of formal education of the employees on the response of the statement

number 6 is given in Fig 5.33. The frequency of the response of the statement on the

purpose of performance appraisal as tool to improve cooperation and team sprit is

evaluated in statement number 6. Thirty six percent of the employees having formal

education greater than bachelor degree are opted ‘agree’ and nineteen percent of the

employees having formal education up to bachelor degree opted ‘agree’.

7. Performance appraisal influences individual performance positively

3

35

0 6 0

16

37

3 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

> B. Degree

Education

Fig 5.34. Influence of formal education on response of statement number 7

The influence of formal education of the employees on the response of the statement

number 7 is given in Fig 5.34. The frequency of the response of the statement on

capability of performance appraisal to individual performance is evaluated in statement

number 7. Thirty seven percent of the employees having formal education greater than

bachelor degree are opted ‘agree’ and thirty five percent of the employees having formal

education up to bachelor degree opted ‘agree’.

8. Present appraisal system recognizes improved performance of individual

1323

3 6 03

42

100 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

> B. Degree

Education

Fig 5.35. Influence of formal education on response of statement number 8

The influence of formal education of the employees on the response of the statement

number 8 is given in Fig 5.35. The frequency of the response of the statement on

capability of performance appraisal to improved performance of an individual is

evaluated in statement number 8. Forty two percent of the employees having formal

education greater than bachelor degree are opted ‘agree’ and twenty three percent of the

employees having formal education up to bachelor degree opted ‘agree’.

9. Performance appraisal is a career developmental and educational tool

13 1019

3 03

42

100 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

> B. Degree

Education

Fig 5.36. Influence of formal education on response of statement number 9

The influence of formal education of the employees on the response of the statement

number 9 is given in Fig 5.36. The frequency of the response of the statement on purpose

of performance appraisal as career development and education (training) tool is evaluated

in statement number 9. Forty two percent of the employees having formal education

greater than bachelor degree are opted ‘agree’ and nineteen percent of the employees

having formal education up to bachelor degree opted ‘ neither agree nor disagree’.

10. Performance appraisal feedback will be conveyed to me

1323

010

00

39

6 90

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

≤ B. Degree

> B. Degree

Education

Fig 5.37. Influence of formal education on response of statement number 10

The influence of formal education of the employees on the response of the statement

number 10 is given in Fig 5.37. The frequency of the response of the statement on

communication of feedback of performance appraisal is evaluated in statement number

10. Thirty nine percent of the employees having formal education greater than bachelor

degree are opted ‘agree’ and twenty three percent of the employees having formal

education up to bachelor degree opted ‘agree’.

Table 5.15. Descriptive statistical analysis of influence of formal education on response of scores for statements in questionnaire

Statement Minimum Maximum Mean Standard

deviation Variance

ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+

1. I clearly understand the

purpose of performance

appraisal

4 4 5 5 4.36 4.59 0.50 0.51 0.25 0.26

2. Performance appraisal in

my company is fair

3 3 5 5 4.21 4.18 0.58 0.53 0.34 0.28

3. Performance appraisal reflects

objectively my performance

3 3 5 5 4.00 3.94 0.55 0.56 0.31 0.31

4. Performance appraisal is a

tool for promotion and

pay fixation

3 4 5 5 4.29 4.12 0.61 0.33 0.37 0.11

5. Performance appraisal

process helps my superior to manage people

better

2 3 5 4 3.71 3.76 0.99 0.44 0.99 0.19

Statement Minimum Maximum Mean Standard

deviation Variance

ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+ ED1* ED2+

6. Performance appraisal process

encourages co-operation and

team spirit

2 2 5 5 3.79 3.71 0.89 0.69 0.80 0.47

7. Performance appraisal

influences individual

performance positively

2 3 5 5 3.79 4.24 0.80 0.56 0.64 0.32

8. Present appraisal system

recognizes improved

performance of individual

2 3 5 5 3.93 3.88 1.00 0.49 0.99 0.24

9. Performance appraisal is a

career developmental

and educational

tool

2 3 5 5 3.71 3.88 0.99 0.49 0.99 0.24

10. Performance

appraisal feedback will

be conveyed to me

2 2 5 4 3.86 3.53 1.10 0.80 1.21 0.64

Overall

(statement number 1 to

10)

2 2 5 5 3.96 3.98 0.83 0.61 0.70 0.37

* ED1 = Group of employees having formal education up to Bachelor degree & number of respondents = 14+ ED2 = Group of employees having formal education greater than Bachelor degree & number of respondents = 17

The score based comparative study of scores of responses of the employees is given in

Table 5.15. The rank of 5 to 1 is given corresponding to the option ‘strongly agree’ to

‘strongly disagree’ in the questionnaire. The minimum score opted by employees having

formal education up to bachelor degree is found to be 2 and is corresponding to the

statement 5 and 10. The maximum score opted for all statements by employees having

formal education up to bachelor degree is found to be 5. The minimum score opted by

employees having formal education greater than bachelor degree is found to be 2 and is

corresponding to the statement 5 to 10. The maximum score opted for all statements by

employees having formal education greater than bachelor degree is found to be 5. The

mean, standard deviation and variance of score of the responses opted by different age

group is compared in Table 5.15.

1

2

3

4

5

1 2 3 4 5 6 7 8 9 10

Statement Number

Mea

n S

core

≤ B. Degree

> B. Degree

Education

Fig 5.38. Influence of formal education of employees on the mean score of responses for the statements 1 to 10.

The mean of the scores opted by employees having formal education up to bachelor

degree is compared with the corresponding data of employees having formal education

greater than bachelor degree and is also given in Fig 5.38. The magnitude of mean of

score opted by the two age groups is found to be comparable and hence it may be

concluded that formal education of employees does not influence the satisfaction level of

employees on performance appraisal system significantly.

Table 5.16. The correlation of mean of scores of statements by different employees groups differ in formal education

Education up to Bachelor degree

Education greater than bachelor degree

Education up to Bachelor degree

1 0.7014

Education greater than bachelor degree

0.7014 1

The correlation coefficient of mean of scores for the statements in the questionnaire opted

by the two employees groups differ in formal education namely education up to Bachelor

degree and education greater than bachelor degree is found to be 0.7014 and is given in

Table 5.16. This indicates that the mean of the scores of two age groups is correlated.

The null hypothesis of this part of the study is the response of employees having formal

education up to bachelor degree is unrelated to the response of the employees having

formal education greater than bachelor degree on the performance appraisal system in

Apollo Tyres Limited, Kalamassery. The ANOVA is carried out to test the null hypothesis

and the results are given in Table 5.17.

Table 5.17. Results of ANOVA of mean scores of responses of employees groups differ in formal education

ANOVAF value

(df1=1, df2=18, α = 0.05) p-valueF-calculated F-critical

Formal education up to

Bachelor degree

Formal education

greater than bachelor degree

0.0215 4.4138 0.8848

The results of the ANOVA indicate that the null hypothesis is false. The mean of the

score of responses of two employees groups differ in formal education namely up to

bachelor degree and greater than bachelor degree is not mutually exclusive.

3.53. Influence of COMPANY EXPERIENCE ON SATISFACTION OF PERFORMANCE APPRAISAL

The influence of company experience on the satisfaction of employees is studied. The

response of employees of experience up to 5 years and above 5 years is compared. The

frequency response of the two employee groups differ in experience is given in Table

5.18.

Table 5.18 Comparison of frequency of response of statements by employees differ in experience

Statement Strongly

agreeAgree Neither agree

nor disagreeDisagree Strongly

disagreeEX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+

1. I clearly understand the

purpose of performance

appraisal

10% 38% 16% 36% 0% 0% 0% 0% 0% 0%

2. Performance appraisal in

my company is fair

10% 16% 16% 52% 0% 6% 0% 0% 0% 0%

3. Performance

appraisal reflects

objectively my

performance

3% 10% 19% 52% 3% 13% 0% 0% 0% 0%

4. Performance appraisal is a

tool for promotion and

pay fixation

6% 17% 19% 55% 0% 3% 0% 0% 0% 0%

Statement Strongly

agreeAgree Neither agree

nor disagreeDisagree Strongly

disagreeEX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+

5. Performance

appraisal process helps my superior to

manage people better

3% 7% 16% 45% 6% 17% 0% 6% 0% 0%

6. Performance

appraisal process

encourages co-operation

and team spirit

3% 10% 10% 45% 10% 16% 3% 3% 0% 0%

7. Performance

appraisal influences individual

performance positively

0% 19% 23% 49% 3% 0% 0% 6% 0% 0%

8. Present appraisal system

recognizes improved

performance of individual

3% 13% 23% 42% 0% 13% 0% 6% 0% 0%

9. Performance appraisal is a

career developmental

and educational

tool

6% 10% 10% 42% 10% 19% 0% 3% 0% 0%

Statement Strongly

agreeAgree Neither agree

nor disagreeDisagree Strongly

disagreeEX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+

10. Performance

appraisal feedback will be conveyed

to me

6% 7% 16% 46% 3% 3% 0% 19% 0% 0%

* EX1 = Group of employees having experience up to 5 years & number of respondents = 8+ EX2 = Group of employees having experience greater than 5 years & number of respondents = 23

The magnitude of frequency of response is given in Table 5.18. The response of

employees having company experience greater than 5 years is be greater in magnitude

than those up to 5 years. The highest magnitude of the frequency of response of

employees having company experience up to 5 years is found to be 23 percent and is for

statement number 7 and 9. The highest magnitude of the frequency of response of

employees having experience greater than 5 years is found to be 55 percent and is

corresponding to the statement number 4. Hence it may be concluded that the statement

number 4 is accepted by majority of employees having experience greater than 5 years.

The frequency of response of the employees having experience greater than 5 years is

found to be greater in magnitude when compared to corresponding data of employees

having experience up to 5 years.

1. I clearly understand the purpose of performance appraisal

1016

0 0 0

38 36

0 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

>5 years

Experience

Fig 5.39. Influence of company experience on response of statement number 1

The influence of company experience on the response of the statement number 1 is given

in Fig 5.39. The frequency of the response of the communication of the purpose of

performance appraisal is evaluated in statement number 1. Thirty six percent of the

employees having company experience greater than 5 years are opted ‘agree’ and thirty

eight percent of the employees having company experience up to 5 years opted ‘ strongly

agree’.

2. Performance appraisal in my company is fair

1016

0 0 0

16

52

6 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

>5 years

Experience

Fig 5.40. Influence of company experience on response of statement number 2

The influence of company experience of the employees on the response of the statement

number 2 is given in Fig 5.40. The overall satisfaction on the performance appraisal is

evaluated using statement number 2. Fifty two percent of the employees having company

experience greater than 5 years are opted ‘agree’ and sixteen percent of the employees

having company experience up to 5 years opted ‘agree’.

3. Performance appraisal reflects objectively my performance

3

19

3 0 010

52

130 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

>5 years

Experience

Fig 5.41. Influence of company experience on response of statement number 3

The influence of company experience of the employees on the response of the statement

number 3 is given in Fig 5.41. Whether the appraisal system objectively evaluates

individual’s performance is studied using statement number 3. Fifty two percent of the

employees having company experience greater than 5 years are opted ‘agree’ and ninteen

percent of the employees having company experience up to 5 years opted ‘agree’.

4. Performance appraisal is a tool for promotion and pay fixation

619

0 0 0

17

55

3 0 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

>5 years

Experience

Fig 5.42. Influence of company experience on response of statement number 4

The influence of company experience of the employees on the response of the statement

number 4 is given in Fig 5.42. The frequency of the response of the statement on the

purpose of performance appraisal as promotion and pay fixation tool is evaluated in

statement number 4. Fifty five percent of the employees having company experience

greater than 5 years are opted ‘agree’ and nineteen percent of the employees having

company experience up to 5 years opted ‘agree’.

5. Performance appraisal process helps my superior to manage people better

316

6 0 07

45

176 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

> 5 years

Experience

Fig 5.43. Influence of company experience on response of statement number 5

The influence of company experience of the employees on the response of the statement

number 5 is given in Fig 5.43. The frequency of the response of the statement on the

purpose of performance appraisal as management tool is evaluated in statement number 5.

Forty five percent of the employees having company experience greater than 5 years are

opted ‘agree’ and sixteen percent of the employees having company experience up to 5

years opted ‘agree’.

6. Performance appraisal process encourages co-operation and team spirit

310 10

3 010

45

163 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

>5 years

Experience

Fig 5.44. Influence of company experience on response of statement number 6

The influence of company experience of the employees on the response of the statement

number 6 is given in Fig 5.44. The frequency of the response of the statement on the

purpose of performance appraisal as tool to improve cooperation and team sprit is

evaluated in statement number 6. Forty five percent of the employees having company

experience greater than 5 years are opted ‘agree’. Ten percent of the employees having

company experience up to 5 years opted ‘agree’.

7. Performance appraisal influences individual performance positively

0

23

3 0 0

19

49

0 6 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

>5 years

Experience

Fig 5.45. Influence of company experience on response of statement number 7

The influence of company experience of the employees on the response of the statement

number 7 is given in Fig 5.45. The frequency of the response of the statement on

capability of performance appraisal to individual performance is evaluated in statement

number 7. Forty nine percent of the employees having company experience greater than 5

years are opted ‘agree’ and twenty three percent of the employees having company

experience up to 5 years opted ‘agree’.

8. Present appraisal system recognizes improved performance of individual

3

23

0 0 013

42

136 0

0

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

>5 years

Experience

Fig 5.46. Influence of company experience on response of statement number 8

The influence of company experience of the employees on the response of the statement

number 8 is given in Fig 5.46. The frequency of the response of the statement on

capability of performance appraisal to improved performance of an individual is

evaluated in statement number 8. Forty two percent of the employees having company

experience greater than 5 years are opted ‘agree’ and twenty three percent of the

employees having company experience up to 5 years opted ‘agree’.

9. Performance appraisal is a career developmental and educational tool

6 10 100 0

10

42

19

3 00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

>5 years

Experience

Fig 5.47. Influence of company experience on response of statement number 9

The influence of company experience of the employees on the response of the statement

number 9 is given in Fig 5.47. The frequency of the response of the statement on purpose

of performance appraisal as career development and education (training) tool is evaluated

in statement number 9. Forty two percent of the employees having company experience

greater than 5 years are opted ‘agree’ and ten percent of the employees having company

experience up to 5 years opted ‘ neither agree nor disagree’.

10. Performance appraisal feedback will be conveyed to me

616

3 0 07

46

3

19

00

20

40

60

80

100

Stronglyagree

Agree Neitheragree nordisagree

Disagree Stronglydisagree

Response

Res

po

nd

ents

(%

)

0-5 years

>5 years

Experience

Fig 5.48. Influence of company experience on response of statement number 10

The influence of company experience of the employees on the response of the statement

number 10 is given in Fig 5.48. The frequency of the response of the statement on

communication of feedback of performance appraisal is evaluated in statement number

10. Forty six percent of the employees having company experience greater than 5 years

are opted ‘agree’ and sixteen percent of the employees having company experience up to

5 years opted ‘agree’.

Table 5.19. Descriptive statistical analysis of influence of company experience on response of scores for statements in questionnaire

Statement Minimum Maximum Mean Standard

deviation Variance

EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+

1. I clearly understand the

purpose of performance

appraisal

4 4 5 5 4.38 4.52 0.52 0.51 0.27 0.26

Statement Minimum Maximum Mean Standard

deviation Variance

EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+

2. Performance appraisal in

my company is fair

4 3 5 5 4.38 4.13 0.52 0.55 0.27 0.30

3. Performance appraisal reflects

objectively my performance

3 3 5 5 4.00 3.96 0.53 0.56 0.29 0.32

4. Performance appraisal is a

tool for promotion and

pay fixation

4 3 5 5 4.25 4.17 0.46 0.49 0.21 0.24

5. Performance appraisal

process helps my superior to manage people

better

3 2 5 5 3.88 3.70 0.64 0.76 0.41 0.58

6. Performance appraisal process

encourages co-operation and

team spirit

2 2 5 5 3.50 3.83 0.93 0.72 0.86 0.51

7. Performance appraisal

influences individual

performance positively

3 2 4 5 3.88 4.09 0.35 0.79 0.13 0.63

8. Present appraisal system

recognizes improved

performance of individual

4 2 5 5 4.13 3.83 0.35 0.83 0.13 0.70

Statement Minimum Maximum Mean Standard

deviation Variance

EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+ EX1* EX2+

9. Performance appraisal is a

career developmental

and educational

tool

3 2 5 5 3.88 3.78 0.83 0.74 0.70 0.54

10. Performance

appraisal feedback will

be conveyed to me

3 2 5 5 4.13 3.52 0.64 0.99 0.41 0.99

Overall

(statement number 1 to

10)

2 2 5 5 4.04 3.95 0.63 0.75 0.39 0.56

* EX1 = Group of employees having experience up to 5 years & number of respondents = 8+ EX2 = Group of employees having experience greater than 5 years & number of respondents = 23

The score based comparative study of scores of responses of the employees is given in

Table 5.19. The rank of 5 to 1 is assigned to the option ‘strongly agree’ to ‘strongly

disagree’ in the questionnaire. The minimum score opted by employees having company

experience up to 5 years is found to be 2 and is corresponding to the statement 6 and 10.

The maximum score opted for all statements by employees having company experience

up to 5 years is found to be 5. The minimum score opted by employees having company

experience greater than 5 years is found to be 2 and is corresponding to the statement 5 to

10. The maximum score opted for all statements by employees having company

experience greater than 5 years is found to be 5. The mean, standard deviation and

variance of score of the responses opted by different age group is compared in Table 5.15.

1

2

3

4

5

1 2 3 4 5 6 7 8 9 10

Statement Number

Mea

n S

core

0-5 years

> 5 years

Experience

Fig 5.49. Influence of company experience of employees on the mean score of responses for the statements 1 to 10.

The mean of the scores opted by employees having company experience up to 5 years is

compared with the corresponding data of employees having company experience greater

than 5 years and is also given in Fig 5.49. The magnitude of mean of score opted by the

two age groups is found to be comparable and hence it may be concluded that company

experience of employees does not influence the satisfaction level of employees on

performance appraisal system significantly.

Table 5.20. The correlation of mean of scores of statements by different employees groups differ in company experience

Company experience up to 5 years

Company experience greater than 5 years

Company experience up to 5 years

1 0.5259

Company experience greater than 5 years

0.5259 1

The correlation coefficient of mean of scores for the statements in the questionnaire opted

by the two employees groups differ in company experience namely up to 5 years and

greater than 5 years is found to be 0.5259 and is given in Table 5.20. This indicates that

the mean of the scores of two age groups is correlated.

The null hypothesis of this part of the study is the response of employees having company

experience up to 5 years is unrelated to the response of the employees having company

experience greater than 5 years on the performance appraisal system in Apollo Tyres

Limited, Kalamassery. The ANOVA is carried out to test the null hypothesis and the

results are given in Table 5.21.

Table 5.21. Results of ANOVA of mean scores of responses of employees groups differ in company experience

ANOVAF value

(df1=1, df2=18, α = 0.05) p-valueF-calculated F-critical

Company experience up

to 5 years

Company experience

greater than 5 years

0.4703 4.4138 0.5015

The results of the ANOVA indicate that the null hypothesis is false. The mean of the

score of responses of two employees groups differ in company experience namely up to 5

years and greater than 5 years is not mutually exclusive.

3.54. summary

The demographic details of the manager respondents, namely, gender, age, educational

qualification and experience in the company were analyzed statistically. It is found that

the majority of respondents are male in the age group of 25 to 35 years having

educational qualification greater than bachelor degree and experience more than five

years. The frequency of response to the 10 statements related to the hypothesis of the

thesis is determined. It is found that the highest magnitude of the frequency for various

statements is found to be between 52 to 74 percent. The descriptive statistics terms have

been evaluated. The descriptive statistics of responses, namely, range, mean, standard

deviation and variance is determined based on the 5 point scale. The highest magnitude of

score for all the statements was found to be 5 and lowest magnitude of score is found to

be varying between 2 and 4. The performance appraisal satisfaction (PASI) index of the

respondent is computed and is found to be between 56 to 100 percent. The testing of null

hypothesis is carried out. It is found that, in general, the employees of Apollo Tyres

Limited, Kalamassery are satisfied with the performance appraisal process. The influence

of parameters such as age, formal education and company experience on the response of

the employees of Apollo Tyres Limited, Kalamassery is examined. It is found that the

influence of age, formal education and company experience of employees on response on

the satisfaction of performance appraisal system is insignificant.

Chapter 6

2. Summary, findings, CONCLUSIONS AND RECOMMENDATIONS

6.1. Summary

The satisfaction of managerial cadre employees of Apollo Tyre Limited, Kalamassery on

the performance appraisal system of the company is studied. The performance appraisal

system in Apollo Tyre Limited, Kalamassery is studied. The factors influencing the

satisfaction of performance appraisal is identified. The parameters, namely,

communication, measurement policies and post review decisions of the performance

appraisal system are considered for the analysis. A questionnaire containing ten

statements is prepared and the response of employees is collected. The managers attended

one shift of company is taken as the sample of population. The frequency of the responses

is analyzed. The responses of the mangers are mapped to a 5 point score Likert’s scale.

The descriptive statistical analysis of the score of the responses is carried out. The

influence of the parameters such as age, formal education and experience on the

responses is statistically analyzed using correlation and ANOVA approaches.

6.2. FINDINGS

The findings of the questionnaire based research on the satisfaction of the employees in

the managerial cadre on performance appraisal system in Apollo Tyre Limited,

Kalamassery are:-

1. Majority of the employees in the managerial cadre is males.

2. Majority of the employees in the managerial cadre is in the age group of 25 to 35

years

3. Majority of the employees in the managerial cadre is having formal education

more than bachelors degree

4. Majority of the employees in the managerial cadre is having a company

experience more than 5 years.

5. The analysis of the frequency of the responses indicated that the employees are

satisfied with the performance appraisal system of the company.

6. About 52 percent of the sample agreed to the fact that knowledge about the

performance appraisal is clear.

7. About 68 percent of the managers agreed that the performance appraisal system of

the company is fair.

8. About 71 percent of the managers opted ‘agree’ for the statement that the

performance appraisal reflects objectively on individual’s performance.

9. About 74 percent of the managers agreed to the fact that the performance

appraisal is a tool for promotion and pay fixation.

10. About 61 percent of the managers agreed that the performance appraisal is a

management tool and helps to manage people better.

11. About 55 percent of the respondents opted ‘agree’ for the statement that the

performance appraisal process encourages cooperation and team spirit.

12. About 72 percent of the managers agreed that the performance appraisal

influences individual performance positively.

13. About 65 percent of managers opted ‘agree’ for statement that the performance

appraisal system recognizes improved performance of individual.

14. About 52 percent of respondents agreed that performance appraisal is a career

developmental and educational tool.

15. About 61 percent of the managers agreed that the performance appraisal feedback

is conveyed to the individual.

16. The descriptive statistical analysis indicated that the mean of the score is greater

than 3.0 for all ten statements in the questionnaire

17. The standard deviation of the score is less than 1.0 for all ten statements in the

questionnaire.

18. The mean performance satisfaction index is found to be 79 percent

19. The mean score of satisfaction of performance appraisal system accounting for all

the questions and all the respondents is found to 3. 97.

20. The ANOVA indicated that the communication and satisfaction of performance

appraisal are strongly correlated.

21. The ANOVA indicated that the measurement policies and satisfaction of

performance appraisal system are strongly correlated.

22. The ANOVA indicated that the post-review decisions and satisfaction of

performance appraisal system are strongly correlated.

23. The ANOVA indicated that the age of employees and satisfaction of performance

appraisal system are unrelated.

24. The ANOVA indicated that the formal education of employees and satisfaction of

performance appraisal system are unrelated.

25. The ANOVA indicated that the company experience of employees and

satisfaction of performance appraisal system are unrelated.

6.3. CONCLUSIONS

A fair performance appraisal process helps to improve the satisfaction in employees. The

willingness to invest additional effort of towards enhancing production and there by

market and financial position increases with employee satisfaction. The performance

appraisal accounting for the individual and team performance of the members will help to

increase the plant output. Based on the questionnaire survey conducted, it can be

concluded that employees of Apollo Tyre Limited, Kalamassery are satisfied with the

performance appraisal process.

Employees satisfaction depends on the many aspects of performance analysis and

company have to look into the balanced blend of important aspects like communication,

measurement policies and post-review decisions.

6.4. RECOMMENDATIONS

It is recommended that the company may look into the following aspects of performance

appraisal that are being reviewed in this research in Likert-scale, to improve the score of

employee satisfaction.

Objectively reflecting individual’s performance

As managerial tool

Improvement in cooperation and team spirit

Recognition for improved performance

As a educational (training) and career development tool

Communication of feedback

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Appendix A - Questionnaire

Department :……………………………………Designation :……………………………………

Please indicate your preference among alternate answers for each question by ticking in the appropriate box

a Gender : Male Female

b Age: 25-35 35-45 45-55

c Education: < Bachelor degree Bachelor degree >Bachelor degree

d I work in Apollo for: 0 to 2 years 2 to 5 years > 5 years

No. Statement Strongly agree

Agree Neither agree nor disagree

Disagree Strongly disagree

1 I clearly understand the purpose of performance appraisal

2 Performance appraisal in my company is fair

3 Performance appraisal reflects objectively my performance

4 Performance appraisal is a tool for promotion and pay fixation

5 Performance appraisal process helps my superior to manage people better

6 Performance appraisal process encourages co-operation and team spirit

7 Performance appraisal influences individual performance positively

8 Present appraisal system recognizes improved performance of individual

9 Performance appraisal is a career developmental and educational tool

10 Performance appraisal feedback will be

conveyed to me