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Case Study on Transformation of Apollo Tyres Presented By: Shubham Singhal 80303120053 NMIMS, Hyderabad

Apollo Tyres case study analysis - HR perspective

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Page 1: Apollo Tyres case study analysis - HR perspective

Case Studyon

Transformation of Apollo Tyres

Presented By:Shubham Singhal80303120053NMIMS, Hyderabad

Page 2: Apollo Tyres case study analysis - HR perspective

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

Page 3: Apollo Tyres case study analysis - HR perspective

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

Page 4: Apollo Tyres case study analysis - HR perspective

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

Page 5: Apollo Tyres case study analysis - HR perspective
Page 6: Apollo Tyres case study analysis - HR perspective

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

Page 7: Apollo Tyres case study analysis - HR perspective

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.

Page 8: Apollo Tyres case study analysis - HR perspective

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

Page 9: Apollo Tyres case study analysis - HR perspective

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

Page 10: Apollo Tyres case study analysis - HR perspective

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

Page 11: Apollo Tyres case study analysis - HR perspective

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

Page 12: Apollo Tyres case study analysis - HR perspective