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Table of Contents
POTENTIAL ERRORS IN PERFORMANCE APPRAISAL:..........21 LENIENCY:............................................................................................21 CENTRAL TENDENCY:......................................................................21 RECENCY:.............................................................................................21 HALO EFFECT:....................................................................................21 OVERCOMING ERRORS IN PERFORMANCE APPRAISAL:....22 MARKET OVERVIEW........................................................................30 MARKET SHARE.................................................................................31 ORGANIZATION COMPETITIORS:................................................32
OBJECTIVES OF THE COMPANY........................................................................32
Performance Management System
Human resource is a greatest asset of any organization. Each organization either a manufacturing or service oriented does its best for the proper arrangement of its employees. These are the employees who are the distinction between organizations. These are the pillars of success in services or manufacturing organization.
HUMAN RESOURCE MANAGEMENT:
People are needed to manage people. There must be in charge to direct and guide people in the organizations. So, human resource management is the art of managing people in the organization. For this purpose almost every organization has separate department which is called human resource department or personnel department.
MAJOR FUNCTIONS OF HUMAN RESOURCE DEPARTMENT:
Selection and recruitment Transfer, promotion, layoff Training and development Discipline and discharge Performance management Equal employment opportunity Compensation administration
Performance Management System
Our topic of research is “Performance Management
“Degree of accomplishment of the task that make up an employee’s job”. It reflects how well an employee is fulfilling the requirements of a job. For example, a student may exert a great deal of effort in preparing for an examination and still make a poor grade. In such a case the effort expended was high, yet the performance was poor.
PERFORMANCE MANAGEMENT SYSYTEM
“Process of evaluating and communicating an employee, how he or she performing to job and establishing a plan for improvements”. Effort should be enhanced if good performance is positively reinforced. The task perception of employee should be clarified through establishing a plan for improvement.
Performance Management System
The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. There is, says Dulewicz (1989), "... a basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily.
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.
OBJECTIVE OF PERFORMANCE APPRAISAL SYSTEM:
Performance appraisal works as an important component of performance management system. In professional appraisal practice expectation from the employees, their performance against expectation and method to gauge the performance is established and communicated. There is a widespread belief that the purpose of the employee appraisal is deciding salary increment and promotion, as most of
like: Employee training need identification Employee knowledge and experience capture Identification of opportunities for improvements Motivating the employees Developing professional culture ELEMENTS OF PERFORMANCE APPRAISAL SYSTEM Performance appraisal elements are those factors on which the appraisal system is based. Mostly there are to categories of factors which are mostly used in the appraisal system which are as follows: • • Hygiene performance factors (HPF) Differentiating contribution factors (DCF) HYGIENE PERFORMANCE FACTORS: Those elements which achieving business process goals.Performance Management System the organizations employ it only for that purpose. example • • • Initiative Planning and communication Coordination and follow up For 5 . However performance appraisal can serve Varity of organizational needs very effectively.
Numerous methods have been designed to measure the quantity and quality of employees’ job performance. all the approaches to appraisal can be classified into I) Past-oriented methods II) Future-oriented methods Each group has several techniques as shown below: PAST-ORIENTED METHODS: • Rating scales • Checklists • Forced choice method • Forced distribution method • Critical incident method • Behaviorally anchored scales • Field review method 6 . Each of the method discussed could be effective for some purposes. To know different methods of performance appraisal. METHODS OF APPRAISAL LEARNING OBJECTIVES: 1. Broadly. The last to be addressed in the process of designing an appraisal program is to determine methods of evaluation. for some organizations. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or of a particular type or employees.Performance Management System DIFFERENTIATING CONTRIBUTION FACTORS: Those elements which cover the contribution of employees that helps the organization to excel. 2. To know the merits and demerits of different methods of PA.
most traditional methods emphasize either on the task or the worker's personality. In order to bring about a balance between these two. Behaviorally Anchored Rating Scales. modern methods have been developed. Of such methods. the most important are: Appraisal by Results or Management by Objectives. while making an appraisal. Assessment Center Method.Performance Management System • Performance tests and observations • Annual confidential reports • Essay method • Cost accounting approach • Comparative evaluation approach FUTURE ORIENTED METHODS: • Management by objectives • 360-Degree appraisal • Psychological appraisals • Assessment centers NEWER OR MODERN METHODS OF APPRAISAL As we have seen. 7 .
and many discard it as a theoretical idea that could not be applied in practical situations. 8 . The concept was challenged. DEFINITION: ‘‘The system of management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals. But many applications met with failure. It meets this need by providing opportunities for participation in goal setting process. MBO seemed to emerge as the dominant tool for organizational management. define each individual's major areas of responsibility in terms of the results expected of him. they were not in the basic procedure. OBJECTIVES OF MBO: It is result –oriented or it is the performance.’’ During the late 1960s and early 1970s. The causes of failure were in the implementation. The application of this technique often succeeds or fails because of its interpretations. MBO is potentially a powerful philosophy of managing and an effective way. and use these measures as guides for operating the unit and assessing the contribution of each of its members. The management by objectives concept is a basic technique. It provides responsibility and accountability and recognizes that employees have needs for achievement and self-fulfillment. which matters the most.Performance Management System MANAGEMENT BY OBJECTIVES (MBO) Peter Drucker has evolved this method.
completing on the part of managers. DRAWBACKS: MBO programmed takes a great deal of time. It is hard to think about the results of work rather than the work itself. energy and form. Frequent review sessions help in this. It is very often difficult to apply MBO concepts to work habits. 9 . Since my targets are to be achieved by me only and hence attempts to better self performance becomes important. or what he has to achieve.Performance Management System BENEFITS OF MBO: MBO helps and increase employee motivation because it helps to relate an individual’s goals with the organizational goals. Since target setting itself requires planning hence this process aids to planning MBO identifies problems better and early. MBO forces mangers to PLAN. Since MBO focuses on providing clear targets to be achieved and the order of priority it helps to reduce role conflict and ambiguity. Since it helps to identify performance deficiencies and enables the management and the employees to understand the training needs. Subordinates may try to set the lowest possible targets to avoid not meeting them. Role conflict arises when a person has to face conflicting demands from two or more supervisors. and role ambiguity is a situation when a person is uncertain as to how he will be evaluated. Managers are more likely to compete with themselves than with others.
" where managers are given feedback by their direct "traditional appraisal. and supervisors." 10 . or sources such as customers and suppliers with or other "upward the stakeholders.Performance Management System 360-Degree Feedback DEFINITION: In human resources . such as pay or promotion. the 360 assessment is for evaluation purposes. a It may be contrasted performance feedback. with an individual figuratively in the center of the circle. or multisource assessment. in some cases. "360" refers to the 360 degrees in a circle. OBJECTIVES OF 360-DEGREE FEEDBACK: The results from 360-degree feedback are often used by the person receiving the feedback to plan training and development. Results are also used by some organizations in making administrative decisions. feedback from external interested reports. 360-degree feedback." where employees are most often reviewed only by their managers. It also includes a self-assessment and. When this is the case. multisource feedback. is feedback that comes from all around an employee. and is sometimes called a "360-degree review. also known as multirater feedback. Feedback is provided by subordinates. peers.
met or exceeded. You should conduct one-on-one meetings or surveys with those providing input. Subordinates can provide feedback about managers without fear of retaliation. Ask the customer to provide situations in which expectations were not met. the employee does not feel he is being targeted by one person.Performance Management System BENEFITS OF 360-DEGREE FEEDBACK: The employee gets a well-rounded perspective of his performance. Customers can be internal and external. Through 360 feedbacks. For example. the employee understands how his decisions directly affect others. When the same feedback is from multiple sources. Using 360-degree feedback provides a better perspective of training needs. Communications training would focus on communicating with subordinates. with the the employee but might speak communicate well manager condescendingly to subordinates. Do not disclose the names of subordinates providing feedback. 11 .
Results are sufficiently accurate. It sets clear standards. STEPS IN BARS: The procedure for BARS is usually five stepped. 12 .Performance Management System BEHAVIORALLY ANCHORED RATING SCALES (BARS) This is a new appraisal technique. DEVELOP PERFORMANCE DIMENSIONS: The incidents are then clustered into smaller sets of performance dimensions and each dimension is the defined. GENERATE CRITICAL INCIDENTS: Person who have the knowledge of a particular job are asked to describe situations or incidents whereby the effectiveness or ineffectiveness of an individual’s performance can be judged. The technique is not biased by the evaluation of the rater. DEVELOPMENT OF THE FINAL INSTRUMENT: A set of incidents is used as “behavior anchors” for the performance dimensions. RATING OF LEVEL OF PERFORMANCE FOR EACH INCIDENT: In this step the rating of level of performance for each incident is measure. average performance and so forth. RELOCATE INCIDENTS: Any groups of people who also have knowledge then relocate the incidents. since it is done by person’s expert in the particular field. The use of this method may be useful in giving feedback to the persons being appraised. which has been recently developed. The critical incidents along the scale help to clarify what is meant by “extremely good performance.
a role-playing incident and leaderless group discussion). FEATURES: Some of the other features of this system are: The use of situational exercises (such as in-basket exercise. The evaluators observe and evaluate participants as they perform activities commonly found in these higher-level jobs. The members prepare a summary report. A relatively expensive process. both individually and collectively. Assessment center rating are said to be strongly influenced by participants interpersonal skills.Performance Management System THE ASSESSMENT CENTER METHOD The assessment center concept was initially applied to military situations by the German Army in 1930s. LIMITATIONS: The major limitations are: It is a time consuming process.the most important feature of this method is job related simulations or mock situations. and each candidate is given one of the four categories. and a feedback on face-to-face basis is administered to all the candidates who ask for it. These simulations involve characteristics that managers feel are important for job success. less than acceptable and unacceptable. Evaluations are drawn from experienced managers with proven ability at different levels of management. more than acceptable. They evaluate all employees. 13 .
It may also be done by ranking a person on his job performance against that of another member of a competitive group by placing him as number one or two or three in total group i. The number of 14 . The relative position of each man is tested in terms of his numerical rank. With this technique. This is the simplest method of separating the most efficient from the least efficient: and relatively easy to develop and use. The task of ranking individuals is difficult when a large number of persons are rated. By this technique. PAIRED COMPARISON TECHNIQUE This is an improvement over the straight ranking method.Performance Management System STRAIGHT RANKING METHOD It is the oldest and the simplest method of performance appraisal. The method only tells us how a man stands in relation to the others in the group but does not indicate how much better or worse he is than another. each employee is compared with all other persons in pairs one at a time. persons are tested in order of merit and placed in a simple grouping. LIMITATIONS: In practice it is very difficult to compare a single individual with human beings having varying behavior.e. judgment is easier and simpler than with the ordinary ranking method. That is the ranking of a man in a work group is done against that of another. by which the man and his performance are considered as an entity by the rater.
which other rating methods impose. Scott’’ to get the judgment of superiors on the subjects. loyalty. This method was introduced by ‘Walter D. leadership offered. To ensure the success of this method. these factors are: employee characteristics and employee contribution. creative decisiveness. attitude towards superiors and associates. specific goals achieved.Performance Management System times each individual is compared with another is tallied on a piece of paper. the responsibility assumed. leadership. cooperativeness. These two facts eliminate the restrictions on natural judgments. GRAPHIC RATING SCALE This is the most commonly used method of performance appraisal. imitativeness. According to Jucius. regularity of attendance. Under it a printed forms. versatility etc. one for each person to be rated. and co-ordination. In employee characteristics industry. such qualities as ability. FEATURES: The two important features of this system are: The person who is making the judgment is freed from direct” quantitative” terms in making his decision of merit on any quality: and the person who is making the judgment can make as fine a discrimination of merit as he chooses. one should: 15 . are included enthusiasm. In the employee contribution are included the quantity and quality of work. analytical ability emotional ability. These numbers yield the rank order of the entire group. dependability. wherein the rater places a mark somewhere along a continuum. attitude. These traits are the evaluated on a continuous scale.
e. the rating elements are several sets of pair phrases or adjectives (usually sets of four phrases two of which are positive. The rater is asked to indicate which of the four phrases is most and least descriptive of the employee. Makes little effort from his own side Organizes the work well Lacks the ability to make people feel at ease Has a cool temperament Is punctual and careful Is dishonest and disloyal Is hard worker and co-operative In the above. 16 . the unfavorable ones get no credit. Pair high and low preference values forming an item. FORCED CHOICE DESCRIPTION METHOD This method evolved after a great deal of research conducted for the military services during World War II. Establish the discrimination value (i. while the favorable ones get a plus credit. two negative) relating to job proficiency or personal qualifications. the index of the extent to which a quality is valued) Pair the statement or the trait name and preference value. The following statements are examples of the type of statement that are used.Performance Management System Obtain the descriptions of persons at two extremes of the performance scale: Analyze these descriptions into simple behavioral qualities and present these either as a statement or as a trait. It tries to check a rater’s tendency to give consistently high or low ratings to all employees. Under this method. phrases are both favorable and unfavorable.
These events are known as Critical incidents. as only one of the favorable and unfavorable is related to success or failure on the job. CRITICAL INCIDENT METHOD This method was developed following research conducted by the armed forces in the United States during World War II. This increases the overall objectively of this method.Performance Management System DISADVANTAGE: This method has certain advantages: While choosing from two statements from each series the rater is unable to introduce personal bias or halo effect. Such tests are expensive to develop. he also does not know how ‘high’ or ‘low’ he is evaluating the individual because he has no access to the scoring key. this method is not clearly superior to traditional rating methods. Most of the raters become irritated with the test because they are not being trusted. the results of evaluation do not prove useful for counseling and trained purposes because the rater is ignorant of how he is evaluating the individual. The essence of this system is that it attempts to measure worker’s performance in terms of certain ’events’ or ‘episodes’ that occur in the performances of the rate’s job. The supervisor keeps a written record of the events (either good or bad) that can easily be recalled and used in the course of a 17 . The basis of this method is the principle that” there are certain significant acts in each employee’s behavior and performance which make all the difference between success and failure on the job”. However. Further. Finally.
18 .Performance Management System periodical or formal appraisal. Feedback is provided about the incidents during performance review session.
19 . Apologized to a subordinate when he was in the wrong. Resisted pressure to start a job without sufficient advance thought and planning.Performance Management System DISADVANTAGE: The advantages of this method are: This method provides an objective basis for conducting a discussion of an individual's performance. Refused to accept job instructions without a prolonged discussion or argument. Reported findings on a problem in a fashion. Performed ineffectively on a project because of failure to plan properly. for the supervisors are trained to record. Planned for long-range requirements and future developments with unusual effectiveness. This approach reduces the "regency" effect (most recent incidents get too much emphasis) of most performance rating Example of what can be included in a Managerial Critical Incident Check List Refused to take an unpleasant decision or. which expedited an effective solution. administer a reprimand in his own name: Named his supervisor as the responsible one. accurately the actual incidents from the daily activities of an employee. Demonstrated the ability to give first priorities to jobs. Failed to consider alternative ways of performing a job when available information indicated that he should. Vague impressions and general remarks are avoided.
Performed a difficult task. Made unrealistic demands of his group in terms of lime und effort.Performance Management System Acquired a thorough knowledge of the equipment for which he was not responsible. which was outside his regular duties without being told to do so. Appropriated the good ideas of subordinates as his own 20 . Displayed ingenuity in cutting corner to meet a deadline. Recognized the abilities and weaknesses of his subordinates and made job assignments accordingly. . Studied a current operating procedure and made effective recommendations for improvement. Failed to prepare a report on lime when specifically requested to do so. Insisted on using equipment. but which was related to his job. Misinformed his superior concerning an important matter. Needed prodding on jobs outside of his major responsibilities. Put the blame for his own mistakes on his subordinates. Failed to keep superiors informed about important job developments affecting other Departments or divisions. which was not justified. Demonstrated an inability to get along with other employees having the same level of responsibility. on economic grounds.
CENTRAL TENDENCY: The central tendency occurs when appraisal statistics indicate that most employees are appraised as being near the middle of the performance scale.generally work performed one to two months prior to evaluation. RECENCY: Recency occurs when evaluation based on work performed most recently---.Performance Management System ERRORS IN PERFORMANCE APPRIASAL POTENTIAL ERRORS IN PERFORMANCE APPRAISAL: Several common errors have been identified in performance appraisal. 21 . Someone is the followings: LENIENCY: Leniency is the grouping of ratings at the positive end instead of spreading them throughout the performance scale. HALO EFFECT: Another common error in performance appraisal is the halo effect. This occurs when a rater allows a single prominent characteristic of an employee to influence his or her judgment on each separate item in the performance appraisal.
Unfortunately. Suggestion on the specific training that should be given to evaluators are often vague. the potential for errors in performance appraisal is great. and the communication skills necessary to provide feedback to the employee. because refined instruments frequently do not overcome all the obstacles. rater should receive the training in the performance appraisal methods used by the company. One approach to overcoming these errors is to make refinements in the design of appraisal methods.Performance Management System OVERCOMING ERRORS IN PERFORMANCE APPRAISAL: As the preceding discussion indicates. the importance of the rater’s role in the total appraisal process. one could argue that the forced. the use of performance appraisal information. For example.distribution method of performance appraisal attempt to overcome the errors of leniency and central tendency. In addition. However. at a minimum. leniency and central tendency errors because they provide managers with specific example of performance against which to evaluate an employee. but they normally emphasize that evaluator should be trained to observe behavior more accurately and judge it more fairly. instruments appraisal. it does will not appear likely that in refining the appraisal totally overcome errors performance 22 . behaviorally anchored rating scales are to reduce the halo. A more promising approach to overcoming errors in performance appraisals is to improve the skills of rater.
Performance Management System FIELD WORK Toyota Motor Company 23 .
Performance Management System 24 .
Toyota employs 264. combined with those of Daihatsu and Hino. As of March 2003. totaled 6. Besides its own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan. which produce Lexus.and Toyota-brand vehicles and components.78 million units in CY2003*. including sales finance.Performance Management System Toyota Motor Introduction Toyota Motor Corporation is one of the world‘s leading automakers. Global sales of its Toyota and Lexus brands. Toyota has 45 manufacturing companies in 26 countries/locations. from mini vehicles to large trucks. American Samoa Australia Bahrain Brunei Darussalam China Islands Fiji Guam Hong Kong. which came to a consolidated ¥16. China India Indonesia Israel Kiribati Kuwait Malaysia Nepal New Caledonia New Zealand Oman Saipan Samoa Saudi Arabia Singapore Solomon Sri Lanka Tahiti Taiwan Thailand Tonga United Arab Vanuatu Viet Nam Emirates Pakistan Papua New Guinea Toyota International Portfolio 25 . accounts for more than 90% of the company's total sales.05 trillion in the fiscal year to March .000 people worldwide (on a consolidated basis). Automotive business. and markets vehicles in more than 140 countries. offering a full range of models.
Performance Management System Avalon Camry Passenger Corolla Avensis Tarago Prius Echo MR2 Sports Camry Sportivo Corolla Sportivo Celica Rav 4 4 W/D LandCruiser Prado LandCruiser 100 Kluger LandCruiser 78 Hiace Commercial Coaster Hilux 26 .
Our Core Values Product Quality Customer Satisfaction Team Work Employee Care Ethical & Honest Practices Indus Motor Company (IMC) is a joint venture between the House of Habib . IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. Toyota Motor Corporation Japan (TMC) . 1990. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. Indus Motor Company’s plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. The majority shareholder is the House of Habib with 50 % of the equity. vehicles in Pakistan through its dealership network. Heavy investment was made to build its production facilities based on state of art technologies. The shares of company are quoted on the stock exchanges of Pakistan. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres.Performance Management System WELCOME TO INDUS MOTOR COMPANY Ltd. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01. 27 . and Toyota Tsusho Corporation Japan (TTC) for assembling.
MAINTAIN MARKET LEADERSHIP. Plant: Indus Motor Company Ltd. CUSTOMER SATISFACTION. Environmental Policy WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO CONTINUOUSLY IMPROVE OUR ENVIRONMENTAL MANAGEMENT SYSTEM TO: • IDENTIFY AND AVOID/MITIGATE THOSE ENVIRONMENTAL ASPECTS IMPACTS.'s production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres.Performance Management System Quality Policy WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO FOCUS ALL OUR ACTIVITIES LEADING TO: • • • • MANUFACTURING HIGH QUALITY PRODUCTS. ASSIST SOCIETY BY MAKING THE ENVIRONMENT • FRIENDLIER. It must be worth mentioning here that Indus Motor Company’s plant here in Karachi is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. WHICH HAVE NEGATIVE ENVIRONMENTAL • COMPLY WITH ALL APPLICABLE LEGAL. REGULATORY AND OTHER REQUIREMENTS. 28 . SERVICE TO SOCIETY.
Performance Management System 29 .
Wide range of products.Performance Management System VISION: "IMC’s Vision is to be the most respected and successful enterprise. The best people. Delighting customers. delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". MARKET OVERVIEW Since its start back in 1990. • • • • • The most respected. has enjoyed the status of leader because the name it is reproducing is of TOYOTA. The most successful. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world. 30 . Indus Motor Company Ltd. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Market of automobile in Pakistan is well established and it clearly states the self-actualization need of Pakistani consumers. Before Indus Motor Company Ltd. MISSION: Mission of Toyota is to provide safe & sound journey.’s launch TOYOTA has a well-built network of sales that was overtaken by Indus Motor Company Ltd.
upper class. performance. 31 . To lead in this environment Indus Motor Company Ltd. government and resellers. politicians.. Their most target markets are upper middle class. safety. MARKET SHARE The demand in the auto sector in Pakistan is skewed towards small cars. upper class. “We have customers who trust us for reliability. has extended its product line of COROLLA to six and is operating a product mix of three categories. status. businessmen.Performance Management System Pakistani automobile market consist of Manufacturer like Indus Motor Company Ltd. They understand the fact that it is not possible to get all these things at the same time from someone else. government offices and armed forces. They are executives. managers. Honda Atlas Motors and Pak Suzuki Motors and Importer that are wide spread in country in shape of dealers. They say. landlords. functionality and care”. Due to this trend Pak Suzuki Motors enjoys a monopoly in the small-car market. dealers.
2. the company gives great importance to its human resource as the company believes that satisfied and quality conscious team can produced quality products. 4.Performance Management System ORGANIZATION COMPETITIORS: HONDA CARS MISTIBUSHI (HIACE AND PICK UPS) HUYNDAI (KIA) MOTORS NISSAN SUZUKI OBJECTIVES OF THE COMPANY To be the market leader and satisfy the requirements of its customers. 32 . The company is using the philosophy of Kaizen for continuous improvement. Improve Quality Enhance Efficiency Minimize Cost Increase Productivity Over the previous years. the company has set certain objectives. the company has put in its best efforts to manufacture quality cars designed for its customers. To improve their efficiency. These are: 1. It has become a way of life for the management of the company by doing these efforts towards their objectives. 3.
R Department in employee performance management? Ans.4) No (skip Q.. Yes (skip Q. Q 1 Do your organization have a “performance management system”? Ans.Performance Management System Field Work questions asked…. HR department play an important part in performance management system.R Department in employee performance management? Ans. then what is the role of H. There are different systems in each department of Toyota Company and we are practicing different policies for different department. HR department of Toyota Company seek employees retention (current and old). appraisal of each employee are make in HR department so these appraisal are on the basis of their performance. Yes No Q 2 Is there any role of H.3) Q 3 If yes. Then try to re-establish them. 33 .
.... ....... Q 5 What are the Key Performance Indicators for Toyota Company Employees? Ans.......................................................... problems faced etc HOD Assessment Another most important method is Head of Department assessment........................... ...................... talks about his accomplishments....Performance Management System Q 4 which person is involved in determining the performance of employees and reviewing its effectiveness? ...... In Toyota Company there are several number of key performance indicator and every section has different Key Performance Indicators like: Self-Appraisal Assessment Self appraisal is an important part of the Performance appraisal process where the employee himself gives the feedback or his views and points regarding his performance...............SKIPPED........................................... 34 ............. strengths................... if any.................... The Head of Department then check how much each employee is efficient in performing their task and rate them according their work done and efficiency level............ Usually this is done with the help of a self appraisal form where the employee rates himself on various parameters.. Every head of department of Toyota Company have the responsibility to check his employees whether they are doing their job according to their prescribe goals and way........................... weaknesses...... ...... tells about his training needs..................
Managers check their resources while resources are fully utilized as per estimate. always motivates employees towards work hard and achieves goals.Performance Management System Q 6 How Toyota Company keeps the performance up to the required standards? Ans. it’s mean performance of employees are satisfy. The most important thing which our managers do. If yes.2nd we see our goals while goals are attain or not. Our resources are used and we use the following tools & techniques: Customer Inquiries Customer Feedback We take customers feedback while it is positive or negative. When employees are fully motivated they easily achieve their goals. 35 . There are basic principles which Toyota strictly followed. If it is positive then we appreciate the employees and give him more rewards. Motivation is the basic theme which managers mostly apply to enhance their employees performance Q 7 What are the Tools & Techniques used to measure actual performance with expected performance? Ans. Every department has its own manuals so managers personally visit their employee and guide them and tell them about required standards.
There are some polices of company in which performance standards are set and mostly top level management of organization make the polices and some time middle level managers are also include in decision making of performance standard. In these meetings mostly employees are invited and they have freehand to give ideas and suggestions about performance management system. Q 10 How would you get the feedback from an employee about your performance management system? Ans. meetings with employees two times in a month. It is already mention in companies polices and it may be change with time to time. performance appraisal is conducted? Ans. In Self Appraisal Assessment employees do their own comparison with their job. Q9 What management level of Toyota Company sets the performance standards? Ans.Performance Management System Q 8 At what management level. We get feedback through discussion. We use the Self Appraisal Assessment and DSM Assessment techniques to conduct performance appraisal at higher level of management. Higher management level sets performance standards. 36 . Some time urgent meetings are called for rapid feedback.
Performance Management System Q 11 Who is responsible to perform the duties of performance appraisal? Ans. HR Manager HR Department Managers+ Other specify Mostly managers are doing this job but H.R. That is why Toyota uses the HR Policy and Sales Policy for performance management appraisals which are very strict in the organization. procedure while executing performance 37 . Q 12 At what extend Toyota management follows the documented appraisal? Ans.R department is responsible to perform this duty. Just because of breaking the rules/laws of the organization by the employees the Civil Rights Act made the performance appraisal legal for all organizations. Title VII of the Civil Rights Act permits to use of bona fide performance appraisal system. This Act was made because of previous overruled cases of different organizations of different countries. Department take the suggestions from all other managers especially from H. Managers then make the police.
Performance Management System Q 13 Do you have knowledge about your Key Performance Indicators. And I am improving my KPIs so that I get more success in the organization and target my goals to achieve them successfully. 38 . Q 14 Are you satisfied with this system of performance appraisal? Ans. I know all of my KPIs. which your management uses to check your performance? Ans. totally satisfied with my work and the organization as well. I am. And there are very strict policies of the organization and performance appraisal is conducted properly so that an employee’s performance can be graded according to his/her achievement and job done in the organization. Yes No Definitely. Yes No Performance appraisal indicates an employee’s job performance that how he/she is performing the job or task that was given to him/her and establishing a plan of improvement. according to my performance appraisal.
This check of performance is conducted two times in a month and for this purpose organization use Self-Assessment Form and Dealer Assessment Form to check the performance of the employees. One of basic key while conducting performance appraisal is that. clear and transparent. We use Self Assessment Forum to conduct performance appraisal in the responsibility of managers. the performance appraisal is clean. But in our organization our management use monthly frequency to check the performance of the employees. Head of Departments plays an important role while conducting performance appraisal. Q 16 How the performance appraisal is conducted? Ans. Monthly Semi-annually Annually Other specify Most of the organization use annual base frequency to check the employee’s performance and in different organizations use different frequency.Performance Management System Q 15 What frequency used by your management to check your performance? Ans. 39 . Mostly MBO and 360-degree appraisal system is used.
The most popular award system in Toyota Company is Employee of the month.Performance Management System Q 17 Do your management shares the results of “performance appraisal” with employees? Ans. they share both positive and negative aspects with their employees and also the degree of their efficiency. This reward system helps the Company’s employees to motivate and they try to get achievements like Employee of the week. they share the whole aspects (positive & negative) of an employee or not? Ans. Only Negative Only Positive Both Positive & Negative Did not Share One of the best aspects of Toyota Company is. Each month the best employee snap and his achievements are posted on Company’s Dashboard and also gives special bonus. Q 18 If yes then. If the results is too much positive then they announce rewards otherwise if the result is negative then the 40 . At the end of half year. If the employee’s results are up to the standards then Toyota Company announces the rewards. Toyota Company then seeks its best employees of the months and also announces some bonuses and also promotions. Yes No Yes Toyota Company shares the results with their employees and then discusses with the employees about their performance results according to expected results.
then Head of Departments take strict serious actions like firing of employee or if the problem exists due to work difficulty then Top management arranges training program to overcome such problems so that next time such problems do not exist. Mostly promotions are based on frequency of employees of the month. Cash Promotion Bonuses Other specify 41 . Toyota Company is very strict if an employee’s shows too much negative efficiency or did not match with the job criteria which was prescribed by Top Management of Toyota company. increments and especially after the end of fiscal year promotions. Q 20 If yes then. what is the type of these incentives? Ans.Performance Management System Head of Department personally meet with employee and discuss with him about his weakness and suggest him how to overcome his weakness. Yes No Yes. the employee gets the promotion so the motivation level increases which ultimately affect the Company’s internal performance criteria. mostly bonus. Q 19 Do your management offer incentives upon the basis of your performance? Ans. If the employee gets the reward of employee of the month then he gets extra increment and after one fiscal year on the basis of performance appraisal.
increments and promotions. and then see what kind of training they need than we execute training for them. Sometimes employees are not performing well so First we identify the problem of the employee. Yes we did. But if the employees make any big mistake against the policy of the organization then we have no choice but to kick off him immediately. Some employees get two maximum three increments on the basis of performance appraisal and also get bonuses on special occasions like Eid months. After training we schedule their practices. actually its really important for us to continuously improve our planes that’s why our management develop such kind of planes for the improvement of employees performance but we develops it every month and these planes are develop on the bases of performance appraisal of the employees. bonuses. Q 22 What action your management takes if an employee is not performing well? Ans. We are not in the favor of kick rule infect we discourage the kick rule.Performance Management System Toyota Company offers incentives like cash. Promotions are based on overall performance appraisal and Top Managements and also Head of Department announces promotions to their efficient employees. Q 21 Does your management recently develop any plan for the improvements of employee’s performance? Ans. 42 .
As an employee of this organization I am still learning many things from this organization. working environment what Toyota motors providing to their employees is really appreciated. And when we talk about for employees point of view it is very good organization and our performance management system is working really good. 43 . We have achieved so many things in this organization. Environment of Toyota is very friendly for those who want to learn.Performance Management System Q 23 Any comments (positive or negative) about your organizational & your “performance management system”? Ans.
com.jp www.com www. Chaudhary Imran Department: Sales Department Designation: TWS (Toyota Way in Salesman & Marketer) ..TOYOTA.com www.TOYOTA.firstname.lastname@example.org 44 .TOYOTA.com.com Cell No# 0301-3859264 ……………………………………………………………………………………………………….au www. Multan.TOYOTA-indus.Performance Management System Bibliography Muhammad Yusuf Department: HRM Department Designation: AM Human Resources-Compensation & Benefits at Indus Motor Company Ltd. Karachi. Cell No# 0302-8639714 ………………………………………………………………………………………………………… www. E-mail address: m.
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