Performance Management System

Table of Contents
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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

Muhammad Yusuf..................................................................................44
www.scribd.com.......................................................................................................44

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Performance Management System

THEORATICAL WORK

INTRODUCTION:
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

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Performance Management System

Our topic of research is “Performance Management

System”

PERFORMANCE
“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.

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Performance Management System

HISTORY:
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.

MODERN APPRAISAL:
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

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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. However performance appraisal can serve Varity of organizational needs very effectively.Performance Management System the organizations employ it only for that purpose. 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. example • • • Initiative Planning and communication Coordination and follow up For 5 .

for some organizations. Numerous methods have been designed to measure the quantity and quality of employees’ job performance.Performance Management System DIFFERENTIATING CONTRIBUTION FACTORS: Those elements which cover the contribution of employees that helps the organization to excel. To know the merits and demerits of different methods of PA. 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 . 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. 2. Broadly. To know different methods of performance appraisal. The last to be addressed in the process of designing an appraisal program is to determine methods of evaluation. Each of the method discussed could be effective for some purposes. METHODS OF APPRAISAL LEARNING OBJECTIVES: 1.

7 . Of such methods. In order to bring about a balance between these two. most traditional methods emphasize either on the task or the worker's personality. while making an appraisal.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. the most important are:  Appraisal by Results or Management by Objectives.  Behaviorally Anchored Rating Scales.  Assessment Center Method. modern methods have been developed.

and use these measures as guides for operating the unit and assessing the contribution of each of its members. MBO seemed to emerge as the dominant tool for organizational management. The application of this technique often succeeds or fails because of its interpretations. It meets this need by providing opportunities for participation in goal setting process. MBO is potentially a powerful philosophy of managing and an effective way. The causes of failure were in the implementation. they were not in the basic procedure. 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.Performance Management System MANAGEMENT BY OBJECTIVES (MBO) Peter Drucker has evolved this method. It provides responsibility and accountability and recognizes that employees have needs for achievement and self-fulfillment.’’ During the late 1960s and early 1970s. But many applications met with failure. and many discard it as a theoretical idea that could not be applied in practical situations. 8 . define each individual's major areas of responsibility in terms of the results expected of him. which matters the most. OBJECTIVES OF MBO: It is result –oriented or it is the performance. The management by objectives concept is a basic technique. The concept was challenged.

Role conflict arises when a person has to face conflicting demands from two or more supervisors. It is hard to think about the results of work rather than the work itself. energy and form. and role ambiguity is a situation when a person is uncertain as to how he will be evaluated. Since target setting itself requires planning hence this process aids to planning  MBO identifies problems better and early.  Since MBO focuses on providing clear targets to be achieved and the order of priority it helps to reduce role conflict and ambiguity. DRAWBACKS:  MBO programmed takes a great deal of time. 9 .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. Frequent review sessions help in this.completing on the part of managers.  MBO forces mangers to PLAN. or what he has to achieve.  It is very often difficult to apply MBO concepts to work habits.  Managers are more likely to compete with themselves than with others.  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. Since my targets are to be achieved by me only and hence attempts to better self performance becomes important.

360-degree feedback. Results are also used by some organizations in making administrative decisions." 10 . feedback from external interested reports. Feedback is provided by subordinates. such as pay or promotion. It also includes a self-assessment and. the 360 assessment is for evaluation purposes." where managers are given feedback by their direct "traditional appraisal. or sources such as customers and suppliers with or other "upward the stakeholders. 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. in some cases. "360" refers to the 360 degrees in a circle. peers. multisource feedback. also known as multirater feedback. When this is the case. is feedback that comes from all around an employee. a It may be contrasted performance feedback." where employees are most often reviewed only by their managers. and supervisors.Performance Management System 360-Degree Feedback DEFINITION: In human resources . and is sometimes called a "360-degree review. or multisource assessment. with an individual figuratively in the center of the circle.

the employee understands how his decisions directly affect others. Ask the customer to provide situations in which expectations were not met. For example. Communications training would focus on communicating with subordinates. 11 . You should conduct one-on-one meetings or surveys with those providing input. Do not disclose the names of subordinates providing feedback.Performance Management System BENEFITS OF 360-DEGREE FEEDBACK:  The employee gets a well-rounded perspective of his performance.  Customers can be internal and external. met or exceeded.  When the same feedback is from multiple sources.  Using 360-degree feedback provides a better perspective of training needs. with the the employee but might speak communicate well manager condescendingly to subordinates. the employee does not feel he is being targeted by one person.  Subordinates can provide feedback about managers without fear of retaliation. Through 360 feedbacks.

STEPS IN BARS: The procedure for BARS is usually five stepped. RATING OF LEVEL OF PERFORMANCE FOR EACH INCIDENT: In this step the rating of level of performance for each incident is measure.Performance Management System BEHAVIORALLY ANCHORED RATING SCALES (BARS) This is a new appraisal technique. It sets clear standards. average performance and so forth. 12 . Results are sufficiently accurate. RELOCATE INCIDENTS: Any groups of people who also have knowledge then relocate the incidents. which has been recently developed. The use of this method may be useful in giving feedback to the persons being appraised. The technique is not biased by the evaluation of the rater. since it is done by person’s expert in the particular field. DEVELOPMENT OF THE FINAL INSTRUMENT: A set of incidents is used as “behavior anchors” for the performance dimensions. 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 critical incidents along the scale help to clarify what is meant by “extremely good performance. DEVELOP PERFORMANCE DIMENSIONS: The incidents are then clustered into smaller sets of performance dimensions and each dimension is the defined.

13 . both individually and collectively.Performance Management System THE ASSESSMENT CENTER METHOD The assessment center concept was initially applied to military situations by the German Army in 1930s. FEATURES: Some of the other features of this system are:  The use of situational exercises (such as in-basket exercise. a role-playing incident and leaderless group discussion).  The members prepare a summary report. LIMITATIONS: The major limitations are:    It is a time consuming process. and a feedback on face-to-face basis is administered to all the candidates who ask for it.the most important feature of this method is job related simulations or mock situations.  Evaluations are drawn from experienced managers with proven ability at different levels of management. The evaluators observe and evaluate participants as they perform activities commonly found in these higher-level jobs. A relatively expensive process. more than acceptable.  They evaluate all employees. These simulations involve characteristics that managers feel are important for job success. less than acceptable and unacceptable. and each candidate is given one of the four categories. Assessment center rating are said to be strongly influenced by participants interpersonal skills.

This is the simplest method of separating the most efficient from the least efficient: and relatively easy to develop and use. With this technique. The relative position of each man is tested in terms of his numerical rank. That is the ranking of a man in a work group is done against that of another.e. The task of ranking individuals is difficult when a large number of persons are rated. PAIRED COMPARISON TECHNIQUE This is an improvement over the straight ranking method. The number of 14 . By this technique. persons are tested in order of merit and placed in a simple grouping. 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. each employee is compared with all other persons in pairs one at a time. LIMITATIONS: In practice it is very difficult to compare a single individual with human beings having varying behavior.Performance Management System STRAIGHT RANKING METHOD It is the oldest and the simplest method of performance appraisal. by which the man and his performance are considered as an entity by the rater. 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. judgment is easier and simpler than with the ordinary ranking method.

which other rating methods impose. These two facts eliminate the restrictions on natural judgments. GRAPHIC RATING SCALE This is the most commonly used method of performance appraisal. wherein the rater places a mark somewhere along a continuum. Under it a printed forms. regularity of attendance. leadership offered. specific goals achieved. analytical ability emotional ability. These numbers yield the rank order of the entire group.Performance Management System times each individual is compared with another is tallied on a piece of paper. are included enthusiasm. the responsibility assumed. To ensure the success of this method. these factors are: employee characteristics and employee contribution. one for each person to be rated. loyalty. and co-ordination. dependability. Scott’’ to get the judgment of superiors on the subjects. In the employee contribution are included the quantity and quality of work. This method was introduced by ‘Walter D. cooperativeness. versatility etc. such qualities as ability. imitativeness. 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. In employee characteristics industry. According to Jucius. attitude. creative decisiveness. one should: 15 . leadership. attitude towards superiors and associates. These traits are the evaluated on a continuous scale.

The following statements are examples of the type of statement that are used. The rater is asked to indicate which of the four phrases is most and least descriptive of the employee. the index of the extent to which a quality is valued) Pair the statement or the trait name and preference value.  Establish the discrimination value (i. the rating elements are several sets of pair phrases or adjectives (usually sets of four phrases two of which are positive. 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.         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. phrases are both favorable and unfavorable. It tries to check a rater’s tendency to give consistently high or low ratings to all employees. 16 . the unfavorable ones get no credit. two negative) relating to job proficiency or personal qualifications.e. Under this method.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. while the favorable ones get a plus credit.

Such tests are expensive to develop. this method is not clearly superior to traditional rating methods. 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. as only one of the favorable and unfavorable is related to success or failure on the job. he also does not know how ‘high’ or ‘low’ he is evaluating the individual because he has no access to the scoring key. CRITICAL INCIDENT METHOD This method was developed following research conducted by the armed forces in the United States during World War II. Most of the raters become irritated with the test because they are not being trusted.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. 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 . However. Further. 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 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”. Finally. This increases the overall objectively of this method. These events are known as Critical incidents.

Performance Management System periodical or formal appraisal. 18 . Feedback is provided about the incidents during performance review session.

 19 . Performed ineffectively on a project because of failure to plan properly. 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.   Apologized to a subordinate when he was in the wrong. 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.   Demonstrated the ability to give first priorities to jobs.  Reported findings on a problem in a fashion.  Vague impressions and general remarks are avoided. which expedited an effective solution.  Refused to accept job instructions without a prolonged discussion or argument.  Resisted pressure to start a job without sufficient advance thought and planning. for the supervisors are trained to record.  Failed to consider alternative ways of performing a job when available information indicated that he should.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.

Performed a difficult task. Made unrealistic demands of his group in terms of lime und effort. Displayed ingenuity in cutting corner to meet a deadline. Appropriated the good ideas of subordinates as his own              20 . Failed to prepare a report on lime when specifically requested to do so. Insisted on using equipment. Demonstrated an inability to get along with other employees having the same level of responsibility. Misinformed his superior concerning an important matter. which was outside his regular duties without being told to do so. but which was related to his job. Recognized the abilities and weaknesses of his subordinates and made job assignments accordingly. . on economic grounds. Studied a current operating procedure and made effective recommendations for improvement. Put the blame for his own mistakes on his subordinates.Performance Management System  Acquired a thorough knowledge of the equipment for which he was not responsible. Failed to keep superiors informed about important job developments affecting other Departments or divisions. Needed prodding on jobs outside of his major responsibilities. which was not justified.

HALO EFFECT: Another common error in performance appraisal is the halo effect. CENTRAL TENDENCY: The central tendency occurs when appraisal statistics indicate that most employees are appraised as being near the middle of the performance scale. 21 . 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.generally work performed one to two months prior to evaluation. 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. Someone is the followings: LENIENCY: Leniency is the grouping of ratings at the positive end instead of spreading them throughout the performance scale.

but they normally emphasize that evaluator should be trained to observe behavior more accurately and judge it more fairly.distribution method of performance appraisal attempt to overcome the errors of leniency and central tendency. In addition. For example. the potential for errors in performance appraisal is great. Unfortunately. the use of performance appraisal information. the importance of the rater’s role in the total appraisal process.Performance Management System OVERCOMING ERRORS IN PERFORMANCE APPRAISAL: As the preceding discussion indicates. One approach to overcoming these errors is to make refinements in the design of appraisal methods. A more promising approach to overcoming errors in performance appraisals is to improve the skills of rater. instruments appraisal. behaviorally anchored rating scales are to reduce the halo. one could argue that the forced. because refined instruments frequently do not overcome all the obstacles. rater should receive the training in the performance appraisal methods used by the company. leniency and central tendency errors because they provide managers with specific example of performance against which to evaluate an employee. Suggestion on the specific training that should be given to evaluators are often vague. at a minimum. and the communication skills necessary to provide feedback to the employee. However. it does will not appear likely that in refining the appraisal totally overcome errors performance 22 .

Performance Management System FIELD WORK Toyota Motor Company 23 .

Performance Management System 24 .

and markets vehicles in more than 140 countries. Global sales of its Toyota and Lexus brands. which came to a consolidated ¥16. combined with those of Daihatsu and Hino. accounts for more than 90% of the company's total sales. which produce Lexus. Toyota employs 264. Automotive business.78 million units in CY2003*. 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 .and Toyota-brand vehicles and components. As of March 2003. Besides its own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan. American Samoa Australia Bahrain Brunei Darussalam China Islands Fiji Guam Hong Kong. including sales finance.05 trillion in the fiscal year to March . Toyota has 45 manufacturing companies in 26 countries/locations. totaled 6. from mini vehicles to large trucks.Performance Management System Toyota Motor Introduction Toyota Motor Corporation is one of the world‘s leading automakers.000 people worldwide (on a consolidated basis). 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 .

The shares of company are quoted on the stock exchanges of Pakistan. 1990. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. and Toyota Tsusho Corporation Japan (TTC) for assembling.Performance Management System WELCOME TO INDUS MOTOR COMPANY Ltd. vehicles in Pakistan through its dealership network. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. Indus Motor Company’s plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. 27 . Heavy investment was made to build its production facilities based on state of art technologies. progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. Toyota Motor Corporation Japan (TMC) . 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 . Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib with 50 % of the equity.

REGULATORY AND OTHER REQUIREMENTS. Plant: Indus Motor Company Ltd. WHICH HAVE NEGATIVE ENVIRONMENTAL • COMPLY WITH ALL APPLICABLE LEGAL. MAINTAIN MARKET LEADERSHIP.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. SERVICE TO SOCIETY. 28 .'s production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. 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. CUSTOMER SATISFACTION.

Performance Management System 29 .

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. Market of automobile in Pakistan is well established and it clearly states the self-actualization need of Pakistani consumers. 30 . Indus Motor Company Ltd. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world. The most successful.Performance Management System VISION: "IMC’s Vision is to be the most respected and successful enterprise. • • • • • The most respected. Wide range of products. delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". has enjoyed the status of leader because the name it is reproducing is of TOYOTA. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Before Indus Motor Company Ltd. Delighting customers. The best people. MARKET OVERVIEW Since its start back in 1990.

To lead in this environment Indus Motor Company Ltd. upper class.. They understand the fact that it is not possible to get all these things at the same time from someone else. performance. landlords. Due to this trend Pak Suzuki Motors enjoys a monopoly in the small-car market. 31 .Performance Management System Pakistani automobile market consist of Manufacturer like Indus Motor Company Ltd. “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. They say. upper class. dealers. safety. government offices and armed forces. functionality and care”. managers. businessmen. Their most target markets are upper middle class. They are executives. MARKET SHARE The demand in the auto sector in Pakistan is skewed towards small cars. government and resellers. Honda Atlas Motors and Pak Suzuki Motors and Importer that are wide spread in country in shape of dealers. politicians.

To improve their efficiency. the company gives great importance to its human resource as the company believes that satisfied and quality conscious team can produced quality products. 3. The company is using the philosophy of Kaizen for continuous improvement. Improve Quality Enhance Efficiency Minimize Cost Increase Productivity Over the previous years. These are: 1.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. 4. the company has put in its best efforts to manufacture quality cars designed for its customers. It has become a way of life for the management of the company by doing these efforts towards their objectives. the company has set certain objectives. 2. 32 .

HR department play an important part in performance management system. Then try to re-establish them.3) Q 3 If yes. Q 1 Do your organization have a “performance management system”? Ans. then what is the role of H.  Yes No Q 2 Is there any role of H.R Department in employee performance management? Ans..  Yes (skip Q. There are different systems in each department of Toyota Company and we are practicing different policies for different department.4) No (skip Q. appraisal of each employee are make in HR department so these appraisal are on the basis of their performance.Performance Management System Field Work questions asked…. HR department of Toyota Company seek employees retention (current and old). 33 .R Department in employee performance management? Ans.

... 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........................ strengths....... 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............. ..... Q 5 What are the Key Performance Indicators for Toyota Company Employees? Ans................. weaknesses........ 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...SKIPPED.......Performance Management System Q 4 which person is involved in determining the performance of employees and reviewing its effectiveness? ............................................ if any.................... 34 .................... problems faced etc HOD Assessment Another most important method is Head of Department assessment.................. tells about his training needs..... talks about his accomplishments.................................................................... ............................... Usually this is done with the help of a self appraisal form where the employee rates himself on various parameters........ ........

Every department has its own manuals so managers personally visit their employee and guide them and tell them about required standards.2nd we see our goals while goals are attain or not. If yes. 35 . 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. Managers check their resources while resources are fully utilized as per estimate. 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. When employees are fully motivated they easily achieve their goals. it’s mean performance of employees are satisfy. The most important thing which our managers do. 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. There are basic principles which Toyota strictly followed. If it is positive then we appreciate the employees and give him more rewards.

In these meetings mostly employees are invited and they have freehand to give ideas and suggestions about performance management system. We use the Self Appraisal Assessment and DSM Assessment techniques to conduct performance appraisal at higher level of management. performance appraisal is conducted? Ans. Some time urgent meetings are called for rapid feedback. meetings with employees two times in a month. In Self Appraisal Assessment employees do their own comparison with their job. Q 10 How would you get the feedback from an employee about your performance management system? Ans. 36 . We get feedback through discussion. Q9 What management level of Toyota Company sets the performance standards? Ans. It is already mention in companies polices and it may be change with time to time. Higher management level sets performance standards.Performance Management System Q 8 At what management level. 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.

Managers then make the police.Performance Management System Q 11 Who is responsible to perform the duties of performance appraisal? Ans. This Act was made because of previous overruled cases of different organizations of different countries.R. 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. HR Manager HR Department  Managers+ Other specify Mostly managers are doing this job but H.R department is responsible to perform this duty. That is why Toyota uses the HR Policy and Sales Policy for performance management appraisals which are very strict in the organization. Q 12 At what extend Toyota management follows the documented appraisal? Ans. procedure while executing performance 37 . Title VII of the Civil Rights Act permits to use of bona fide performance appraisal system. Department take the suggestions from all other managers especially from H.

 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.  Yes No Definitely.Performance Management System Q 13 Do you have knowledge about your Key Performance Indicators. according to my performance appraisal. totally satisfied with my work and the organization as well. 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. Q 14 Are you satisfied with this system of performance appraisal? Ans. 38 . I know all of my KPIs. And I am improving my KPIs so that I get more success in the organization and target my goals to achieve them successfully. which your management uses to check your performance? Ans. I am.

One of basic key while conducting performance appraisal is that. 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. the performance appraisal is clean.  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. We use Self Assessment Forum to conduct performance appraisal in the responsibility of managers. Head of Departments plays an important role while conducting performance appraisal. 39 . But in our organization our management use monthly frequency to check the performance of the employees. Q 16 How the performance appraisal is conducted? Ans. clear and transparent.Performance Management System Q 15 What frequency used by your management to check your performance? Ans. Mostly MBO and 360-degree appraisal system is used.

At the end of half year. If the results is too much positive then they announce rewards otherwise if the result is negative then the 40 . 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. Q 18 If yes then. If the employee’s results are up to the standards then Toyota Company announces the rewards. 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.Performance Management System Q 17 Do your management shares the results of “performance appraisal” with employees? Ans.  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. Toyota Company then seeks its best employees of the months and also announces some bonuses and also promotions. Each month the best employee snap and his achievements are posted on Company’s Dashboard and also gives special bonus. The most popular award system in Toyota Company is Employee of the month.

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. Mostly promotions are based on frequency of employees of the month. 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.  Cash  Promotion  Bonuses  Other specify 41 . Q 19 Do your management offer incentives upon the basis of your performance? Ans. 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. increments and especially after the end of fiscal year promotions.  Yes No Yes. the employee gets the promotion so the motivation level increases which ultimately affect the Company’s internal performance criteria. mostly bonus. what is the type of these incentives? 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. Q 20 If yes then.

42 . Q 21 Does your management recently develop any plan for the improvements of employee’s performance? Ans. increments and promotions.Performance Management System Toyota Company offers incentives like cash. Yes we did. bonuses. 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. Sometimes employees are not performing well so First we identify the problem of the employee. We are not in the favor of kick rule infect we discourage the kick rule. Some employees get two maximum three increments on the basis of performance appraisal and also get bonuses on special occasions like Eid months. Q 22 What action your management takes if an employee is not performing well? Ans. 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. After training we schedule their practices. and then see what kind of training they need than we execute training for them. Promotions are based on overall performance appraisal and Top Managements and also Head of Department announces promotions to their efficient employees.

And when we talk about for employees point of view it is very good organization and our performance management system is working really good. Environment of Toyota is very friendly for those who want to learn. As an employee of this organization I am still learning many things from this organization. We have achieved so many things in this organization. 43 .Performance Management System Q 23 Any comments (positive or negative) about your organizational & your “performance management system”? Ans. working environment what Toyota motors providing to their employees is really appreciated.

TOYOTA.TOYOTA. Chaudhary Imran Department: Sales Department Designation: TWS (Toyota Way in Salesman & Marketer) .au www. E-mail address: m.yusuf@gmail.Performance Management System Bibliography Muhammad Yusuf Department: HRM Department Designation: AM Human Resources-Compensation & Benefits at Indus Motor Company Ltd.com.com. Karachi.. Cell No# 0302-8639714 …………………………………………………………………………………………………………      www.com www.com Cell No# 0301-3859264 ……………………………………………………………………………………………………….com www.scribd. Multan.jp www.com 44 .TOYOTA-indus.TOYOTA.

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