Upload
shubham-singhal
View
2.401
Download
2
Embed Size (px)
DESCRIPTION
Citation preview
Case Studyon
Transformation of Apollo Tyres
Presented By:Shubham Singhal80303120053NMIMS, Hyderabad
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
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
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
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
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.
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
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
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
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