Apollo Tyres case study analysis - HR perspective

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Apollo Tyres case study analysis - HR perspective

  1. 1. Case Study on Transformation of Apollo Tyres Presented By: Shubham Singhal 80303120053 NMIMS, Hyderabad
  2. 2. Background of the Case • Apollo Tyres was started by Onkar Kanwar’s Father, Ranauq Singh in the 1970’s • Promoted and managed by the Kanwar family • Apollo set the goal of reaching sales revenue of US$ 2 billion by 2010 • It has gone through many changes, diversifications as required to sustain in the market
  3. 3. Vision and Values • “A significant player in the global tyre industry and a brand of choice, providing customer delight and continuously enhancing stakeholder value” • C: Care for customer • R: Respect for associates • E: Excellence through teamwork • A: Always learning • T: Trust mutually • E: Ethical practices
  4. 4. Competitive Advantage and Growth • “To gain a competitive edge in the market, we had to manufacture tyres that would neither crack or chip with usage” – P.K.Muhammed, chief, R&D • New tyre names Hercules as per the Indian culture of overloading, became Apollo’s cash cow later on. • Apollo expanded for passenger car tyres and not just trucks • International reach- Designed as per their need- better roads, high speed driving • Introduction of Radials
  5. 5. Words of the Chief of Human Resources • “Apollo is a performance- focused company with huge ambitions and global plans. The challenge is to build internal capabilities and make Apollo a preferred employer.” - Tapan Mitra, Chief of Human Resources
  6. 6. The Problems • Until the late 1980’s, the HR department at the head office was small • No proper communication channel between the sales, marketing and corporate employees and top management • Critical decisions were based on likes and dislikes of top management • There was no systematic people development process in place • Job rotation and promotion structures were haphazard • Being a sales and marketing focused organization, there were limitations on growth prospects for technical employees. • Compensation of managerial employees required restructuring. • The corporate office, Gurgaon was overstaffed, reduction was to be made, while the average quality should come up.
  7. 7. Changes • With Onkar Kanwar’s arrival, recruiting managers/officers and creating a contented workforce became the focus • Initiatives were top driven • HR department was established for sales & marketing functions separate from corporate & plant HR setups • All HR setups were systematized • IT systems were introduced in HR
  8. 8. Performance Management System • Mercer suggested online PMS to aid the communication • First 2 runs of PMS to be manual, online later on • Decision: By 1, April, 2006 everyone would be on PMS system titled PACE • Recognition schemes: Roll of Honour, employee of the year, annual conferences of sales/manufacturing, International holidays awarded as prizes. • Poor performers after giving chance and support of improvement were removed after every 2 or 3 years
  9. 9. PMS (contd.) • Machine operators: ▫ If score is  = 85%: Diamond Achiever  = 75%: Green Builder  < 75%: Red Builder • Assessment is displayed where it is visible to peers • Result: ▫ Operators remained conscious about their work quality
  10. 10. Apollo Laureate Academy • Introduction: ▫ Launched in April, 2007 ▫ Innovative step by HR to strengthen developmental efforts • Aim: ▫ To build strong leadership pipeline, provide value proposition to employees & prepare managers for future leadership roles • Offered leadership, management development, functional programmes in collaboration with IIMA, XLRI, MDI, Grow Talent • ELDP- Senior Managers • ALDP- Middle Managers • Supervisory Development programmes- Junior Managers

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