Performance Management System
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
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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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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.
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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
example • • • Initiative Planning and communication Coordination and follow up For
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the organizations employ it only for that purpose. 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. 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.
METHODS OF APPRAISAL
1. The last to be addressed in the process of designing an appraisal program is to determine methods of evaluation. To know different methods of performance appraisal. Each of the method discussed could be effective for some purposes.Performance Management System
DIFFERENTIATING CONTRIBUTION FACTORS:
Those elements which cover the contribution of employees that helps the organization to excel. Broadly. 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:
• Rating scales • Checklists • Forced choice method • Forced distribution method • Critical incident method • Behaviorally anchored scales • Field review method
. 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. To know the merits and demerits of different methods of PA.
2. Numerous methods have been designed to measure the quantity and quality of employees’ job performance. for some organizations.
In order to bring about a balance between these two. Assessment Center Method. modern methods have been developed. Of such methods. the most important are:
Appraisal by Results or Management by Objectives. 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. most traditional methods emphasize either on the task or the worker's personality.
. Behaviorally Anchored Rating Scales.
The application of this technique often succeeds or fails because of its interpretations. MBO seemed to emerge as the dominant tool for organizational management.’’ During the late 1960s and early 1970s.Performance Management System
MANAGEMENT BY OBJECTIVES (MBO)
Peter Drucker has evolved this method. The causes of failure were in the implementation.
. and many discard it as a theoretical idea that could not be applied in practical situations.
‘‘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. they were not in the basic procedure. define each individual's major areas of responsibility in terms of the results expected of him. It meets this need by providing opportunities for participation in goal setting process. The management by objectives concept is a basic technique. But many applications met with failure. MBO is potentially a powerful philosophy of managing and an effective way. which matters the most. It provides responsibility and accountability and recognizes that employees have needs for achievement and self-fulfillment. and use these measures as guides for operating the unit and assessing the contribution of each of its members.
OBJECTIVES OF MBO:
It is result –oriented or it is the performance. The concept was challenged.
Since MBO focuses on providing clear targets to be achieved and the order of priority it helps to reduce role conflict and ambiguity. MBO forces mangers to PLAN.completing on the part of managers. Role conflict arises when a person has to face conflicting demands from two or more supervisors. Since it helps to identify performance deficiencies and enables the management and the employees to understand the training needs. Since my targets are to be achieved by me only and hence attempts to better self performance becomes important. and role ambiguity is a situation when a person is uncertain as to how he will be evaluated. Frequent review sessions help in this. It is hard to think about the results of work rather than the work itself. or what he has to achieve.
MBO programmed takes a great deal of time. energy and form. Managers are more likely to compete with themselves than with others. Since target setting itself requires planning hence this process aids to planning MBO identifies problems better and early.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. Subordinates may try to set the lowest possible targets to avoid not meeting them. It is very often difficult to apply MBO concepts to work habits.
Results are also used by some organizations in making administrative decisions. such as pay or promotion. 360-degree feedback. feedback from external interested reports." where managers are given feedback by their direct "traditional appraisal. When this is the case." where employees are most often reviewed only by their managers. or multisource assessment. It also includes a self-assessment and. a It may be contrasted performance
. and is sometimes called a "360-degree review. with an individual figuratively in the center of the circle. peers. also known as multirater feedback. multisource feedback. and supervisors.
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. "360" refers to the 360 degrees in a circle. Feedback is provided by subordinates. the 360 assessment is for evaluation purposes. is feedback that comes from all around an employee. or sources such as customers and suppliers with or other "upward the stakeholders. in some cases.Performance Management System
In human resources .
Through 360 feedbacks. You should conduct one-on-one meetings or surveys with those providing input. Subordinates can provide feedback about managers without fear of retaliation. Communications training would focus on communicating with subordinates. the employee understands how his decisions directly affect others. Do not disclose the names of subordinates providing feedback. met or exceeded. the employee does not feel he is being targeted by one person. For example. Ask the customer to provide situations in which expectations were not met. Using 360-degree feedback provides a better perspective of training needs. Customers can be internal and external.Performance Management System
BENEFITS OF 360-DEGREE FEEDBACK:
performance. When the same feedback is from multiple sources.
. with the the employee but might speak communicate well manager
condescendingly to subordinates.
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. Results are sufficiently accurate. 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.Performance Management System
BEHAVIORALLY ANCHORED RATING SCALES (BARS)
This is a new appraisal technique.
Any groups of people who also have knowledge then relocate the incidents.
RATING OF LEVEL OF PERFORMANCE FOR EACH INCIDENT:
In this step the rating of level of performance for each incident is measure.
DEVELOP PERFORMANCE DIMENSIONS:
The incidents are then clustered into smaller sets of performance dimensions and each dimension is the defined. It sets clear standards. average performance and so forth. The use of this method may be useful in giving feedback to the persons being appraised. which has been recently developed. The technique is not biased by the evaluation of the rater.
STEPS IN BARS:
The procedure for BARS is usually five stepped.
The major limitations are: It is a time consuming process. A relatively expensive process.
Some of the other features of this system are: The use of situational exercises (such as in-basket exercise. The members prepare a summary report.Performance Management System
THE ASSESSMENT CENTER METHOD
The assessment center concept was initially applied to military situations by the German Army in 1930s.the most important feature of this method is job related simulations or mock situations. more than acceptable. less than acceptable and unacceptable. a role-playing incident and leaderless group discussion). Evaluations are drawn from experienced managers with proven ability at different levels of management. These simulations involve characteristics that managers feel are important for job success. Assessment center rating are said to be strongly influenced by participants interpersonal skills. and each candidate is given one of the four categories. both individually and collectively. The evaluators observe and evaluate participants as they perform activities commonly found in these higher-level jobs. and a feedback on face-to-face basis is administered to all the candidates who ask for it.
. They evaluate all employees.
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. The task of ranking individuals is difficult when a large number of persons are rated. 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.
PAIRED COMPARISON TECHNIQUE
This is an improvement over the straight ranking method.e. The number of
. by which the man and his performance are considered as an entity by the rater. This is the simplest method of separating the most efficient from the least efficient: and relatively easy to develop and use. persons are tested in order of merit and placed in a simple grouping.
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. With this technique. The relative position of each man is tested in terms of his numerical rank. By this technique. each employee is compared with all other persons in pairs one at a time. That is the ranking of a man in a work group is done against that of another. judgment is easier and simpler than with the ordinary ranking method.
. loyalty. these factors are: employee characteristics and employee contribution. In the employee contribution are included the quantity and quality of work. are included enthusiasm. creative decisiveness. specific goals achieved. In employee characteristics industry. leadership offered. This method was introduced by ‘Walter D.Performance Management System
times each individual is compared with another is tallied on a piece of paper. imitativeness. wherein the rater places a mark somewhere along a continuum. These numbers yield the rank order of the entire group. which other rating methods impose. analytical ability emotional ability. and co-ordination. According to Jucius. Under it a printed forms. dependability. leadership. regularity of attendance. attitude towards superiors and associates. cooperativeness. attitude.
GRAPHIC RATING SCALE
This is the most commonly used method of performance appraisal. versatility etc. To ensure the success of this method. the responsibility assumed.
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. such qualities as ability. These two facts eliminate the restrictions on natural judgments. These traits are the evaluated on a continuous scale. one for each person to be rated. Scott’’ to get the judgment of superiors on the subjects.
two negative) relating to job proficiency or personal qualifications. It tries to check a rater’s tendency to give consistently high or low ratings to all employees.e.
FORCED CHOICE DESCRIPTION METHOD
This method evolved after a great deal of research conducted for the military services during World War II.
. phrases are both favorable and unfavorable. The following statements are examples of the type of statement that are used. Pair high and low preference values forming an item. 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. 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.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. Under this method. 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. the unfavorable ones get no credit. while the favorable ones get a plus credit.
Further. However. Finally. 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. This increases the overall objectively of this method. as only one of the favorable and unfavorable is related to success or failure on the job. These events are known as Critical incidents. 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”.Performance Management System
This method has certain advantages: While choosing from two statements from each series the rater is unable to introduce personal bias or halo effect. he also does not know how ‘high’ or ‘low’ he is evaluating the individual because he has no access to the scoring key. 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 supervisor keeps a written record of the events (either good or bad) that can easily be recalled and used in the course of a
. Such tests are expensive to develop. 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.
CRITICAL INCIDENT METHOD
This method was developed following research conducted by the armed forces in the United States during World War II.
Feedback is provided about the incidents during performance review session.Performance Management System
periodical or formal appraisal.
Planned for long-range requirements and future developments with unusual effectiveness. for the supervisors are trained to record. administer a reprimand in his own name: Named his supervisor as the responsible one. Vague impressions and general remarks are avoided. Apologized to a subordinate when he was in the wrong. Resisted pressure to start a job without sufficient advance thought and planning. Performed ineffectively on a project because of failure to plan properly.
. Demonstrated the ability to give first priorities to jobs. Reported findings on a problem in a fashion. accurately the actual incidents from the daily activities of an employee. Refused to accept job instructions without a prolonged discussion or argument. which expedited an effective solution. Failed to consider alternative ways of performing a job when available information indicated that he should. 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.Performance Management System
The advantages of this method are: This method provides an objective basis for conducting a discussion of an individual's performance.
Studied a current operating procedure and made effective recommendations for improvement. Misinformed his superior concerning an important matter.Performance Management System
Acquired a thorough knowledge of the equipment for which he was not responsible. Failed to prepare a report on lime when specifically requested to do so. Insisted on using equipment. Made unrealistic demands of his group in terms of lime und effort. Recognized the abilities and weaknesses of his subordinates and made job assignments accordingly. Appropriated the good ideas of subordinates as his own
. . Displayed ingenuity in cutting corner to meet a deadline. Demonstrated an inability to get along with other employees having the same level of responsibility. Needed prodding on jobs outside of his major responsibilities. which was outside his regular duties without being told to do so. Performed a difficult task. Failed to keep superiors informed about important job developments affecting other Departments or divisions. which was not justified. but which was related to his job. on economic grounds. Put the blame for his own mistakes on his subordinates.
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ERRORS IN PERFORMANCE APPRIASAL
POTENTIAL ERRORS IN PERFORMANCE APPRAISAL:
Several common errors have been identified in performance appraisal. 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.
Recency occurs when evaluation based on work performed most recently---.
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. Someone is the followings:
Leniency is the grouping of ratings at the positive end instead of spreading them throughout the performance scale.
Another common error in performance appraisal is the halo effect.
Suggestion on the specific training that should be given to evaluators are often vague. In addition. the potential for errors in performance appraisal is great. For example. and the communication skills necessary to provide feedback to the employee. leniency and central tendency errors because they provide managers with specific example of performance against which to evaluate an employee. instruments appraisal. However. at a minimum. 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. One approach to overcoming these errors is to make refinements in the design of appraisal methods. Unfortunately. one could argue that the forced. the use of performance appraisal information. it does will not appear likely that in refining the appraisal totally overcome errors performance
. A more promising approach to overcoming errors in performance appraisals is to improve the skills of rater. behaviorally anchored rating scales are to reduce the halo. the importance of the rater’s role in the total appraisal process. rater should receive the training in the performance appraisal methods used by the company.Performance Management System
OVERCOMING ERRORS IN PERFORMANCE APPRAISAL:
As the preceding discussion indicates. because refined instruments frequently do not overcome all the obstacles.
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Toyota Motor Company
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and markets vehicles in more than 140 countries. Global sales of its Toyota and Lexus brands. As of March 2003. 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
Papua New Guinea
Toyota International Portfolio
. Besides its own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan. offering a full range of models.Performance Management System
Toyota Motor Introduction
Toyota Motor Corporation is one of the world‘s leading automakers. combined with those of Daihatsu and Hino.and Toyota-brand vehicles and components. totaled 6. accounts for more than 90% of the company's total sales. from mini vehicles to large trucks.05 trillion in the fiscal year to March . Automotive business. including sales finance. Toyota employs 264.78 million units in CY2003*. which produce Lexus.
American Samoa Australia Bahrain Brunei Darussalam China Islands Fiji Guam Hong Kong. which came to a consolidated ¥16.000 people worldwide (on a consolidated basis). Toyota has 45 manufacturing companies in 26 countries/locations.
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Sports Camry Sportivo Corolla Sportivo
4 W/D LandCruiser Prado LandCruiser 100
LandCruiser 78 Hiace
The majority shareholder is the House of Habib with 50 % of the equity. Toyota Motor Corporation Japan (TMC) . progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01.
. and Toyota Tsusho Corporation Japan (TTC) for assembling. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. vehicles in Pakistan through its dealership network. Indus Motor Company’s plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. 1990. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented.Performance Management System
WELCOME TO INDUS MOTOR COMPANY Ltd. 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 .
.'s production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. MAINTAIN MARKET LEADERSHIP.
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. SERVICE TO SOCIETY. CUSTOMER SATISFACTION.Performance Management System
WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO FOCUS ALL OUR ACTIVITIES LEADING TO:
• • • •
MANUFACTURING HIGH QUALITY PRODUCTS.
Indus Motor Company Ltd. 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. REGULATORY AND OTHER REQUIREMENTS. WHICH HAVE NEGATIVE ENVIRONMENTAL
COMPLY WITH ALL APPLICABLE LEGAL. ASSIST SOCIETY BY MAKING THE ENVIRONMENT
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’s launch TOYOTA has a well-built network of sales that was overtaken by Indus Motor Company Ltd. 30
. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world. Market of automobile in Pakistan is well established and it clearly states the self-actualization need of Pakistani consumers. Indus Motor Company Ltd. The most successful. Before Indus Motor Company Ltd.
Mission of Toyota is to provide safe & sound journey. The best people. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources.Performance Management System
"IMC’s Vision is to be the most respected and successful enterprise. 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". Delighting customers.
Since its start back in 1990. has enjoyed the status of leader because the name it is reproducing is of TOYOTA. • • • • • The most respected.
status. businessmen. has extended its product line of COROLLA to six and is operating a product mix of three categories. Honda Atlas Motors and Pak Suzuki Motors and Importer that are wide spread in country in shape of dealers. performance. They understand the fact that it is not possible to get all these things at the same time from someone else. upper class. dealers. government offices and armed forces. They are executives. Due to this trend Pak Suzuki Motors enjoys a monopoly in the small-car market. Their most target markets are upper middle class.. government and resellers. safety.Performance Management System
Pakistani automobile market consist of Manufacturer like Indus Motor Company Ltd. They say. functionality and care”. To lead in this environment Indus Motor Company Ltd. upper class. “We have customers who trust us for reliability. landlords.
The demand in the auto sector in Pakistan is skewed towards small cars. managers.
the company has put in its best efforts to manufacture quality cars designed for its customers. 4. The company is using the philosophy of Kaizen for continuous improvement. To improve their efficiency. 2. These are: 1. It has become a way of life for the management of the company by doing these efforts towards their objectives.Performance Management System
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. the company has set certain objectives. the company gives great importance to its human resource as the company believes that satisfied and quality conscious team can produced quality products. Improve Quality Enhance Efficiency Minimize Cost Increase Productivity
Over the previous years.
Yes (skip Q.. HR department of Toyota Company seek employees retention (current and old). There are different systems in each department of Toyota Company and we are practicing different policies for different department.R Department in
employee performance management? Ans.3)
Q 3 If yes.
Q 1 Do your organization have a “performance management
system”? Ans.4) No (skip Q. then what is the role of H. HR department play an important part in performance management system. Yes No
Q 2 Is there any role of H.R Department in employee
performance management? Ans.Performance Management System
Field Work questions asked…. Then try to re-establish them. appraisal of each employee are make in HR department so these appraisal are on the basis of their performance.
.......... weaknesses............................ Usually this is done with the help of a self appraisal form where the employee rates himself on various parameters.............................SKIPPED........ talks about his accomplishments............ .
................................................. 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..... if any...............
Q 5 What are the Key Performance Indicators for Toyota
Company Employees? Ans.......... 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................................... strengths............... In Toyota Company there are several number of key performance indicator and every section has different Key Performance Indicators like:
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. tells about his training needs........................... ....Performance Management System
performance of employees and reviewing its effectiveness? .......................... problems faced etc
Another most important method is Head of Department assessment................................ ..
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. If it is positive then we appreciate the employees and give him more rewards. When employees are fully motivated they easily achieve their goals.
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Q 6 How Toyota Company keeps the performance up to the
required standards? Ans. always motivates employees towards work hard and achieves goals. 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.2nd we see our goals while goals are attain or not. The most important thing which our managers do. Managers check their resources while resources are fully utilized as per estimate. There are basic principles which Toyota strictly followed. Every department has its own manuals so managers personally visit their employee and guide them and tell them about required standards. If yes. it’s mean performance of employees are satisfy.
Some time urgent meetings are called for rapid feedback.
Q 10 How would you get the feedback from an employee
about your performance management system? Ans. In Self Appraisal Assessment employees do their own comparison with their job. 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.
Q9 What management level of Toyota Company sets the
performance standards? Ans. In these meetings mostly employees are invited and they have freehand to give ideas and suggestions about performance management system.Performance Management System
Q 8 At what management level. meetings with employees two times in a month.
. It is already mention in companies polices and it may be change with time to time. Higher management level sets performance standards. performance appraisal is
conducted? Ans. We get feedback through discussion. We use the Self Appraisal Assessment and DSM Assessment techniques to conduct performance appraisal at higher level of management.
That is why Toyota uses the HR Policy and Sales Policy for performance management appraisals which are very strict in the organization. Managers then make the police.R. HR Manager HR Department Managers+ Other specify Mostly managers are doing this job but H.Performance Management System
Q 11 Who is responsible to perform the duties of
performance appraisal? Ans. 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.
Q 12 At what extend Toyota management follows the
documented appraisal? Ans. Department take the suggestions from all other managers especially from H. procedure while executing performance
. This Act was made because of previous overruled cases of different organizations of different countries.R department is responsible to perform this duty.
according to my performance appraisal. which your management uses to check your performance? Ans. totally satisfied with my work and the organization as well. And I am improving my KPIs so that I get more success in the organization and target my goals to achieve them successfully.
. 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.
Q 14 Are you satisfied with this system of performance
appraisal? Ans.Performance Management System
Q 13 Do you have knowledge about your Key Performance
Indicators. I know all of my KPIs. 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.
We use Self Assessment Forum to conduct performance appraisal in the responsibility of managers.
Q 16 How the performance appraisal is conducted?
Ans. Mostly MBO and 360-degree appraisal system is used. 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.
. clear and transparent. 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. But in our organization our management use monthly frequency to check the performance of the employees.Performance Management System
Q 15 What frequency used by your management to check
your performance? Ans. the performance appraisal is clean. Head of Departments plays an important role while conducting performance appraisal.
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. 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.Performance Management System
“performance appraisal” with employees? Ans. If the employee’s results are up to the standards then Toyota Company announces the rewards. If the results is too much positive then they announce rewards otherwise if the result is negative then the
. This reward system helps the Company’s employees to motivate and they try to get achievements like Employee of the week. At the end of half year. they share both positive and negative aspects with their employees and also the degree of their efficiency. Toyota Company then seeks its best employees of the months and also announces some bonuses and also promotions. The most popular award system in Toyota Company is Employee of the month.
Q 18 If yes then. they share the whole aspects (positive &
negative) of an employee or not? 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. Yes No Yes. Cash Promotion Bonuses Other specify
. Mostly promotions are based on frequency of employees of the month. what is the type of these incentives?
Ans. the employee gets the promotion so the motivation level increases which ultimately affect the Company’s internal performance criteria. increments and especially after the end of fiscal year promotions. mostly bonus.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.
Q 20 If yes then. 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 19 Do your management offer incentives upon the basis
of your performance? Ans. 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 promotions. Sometimes employees are not performing well so First we identify the problem of the employee.
Q 21 Does your management recently develop any plan for
the improvements of employee’s performance? Ans. Yes we did.
. Promotions are based on overall performance appraisal and Top Managements and also Head of Department announces promotions to their efficient employees. 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. and then see what kind of training they need than we execute training for them. After training we schedule their practices.Performance Management System
Toyota Company offers incentives like cash. Some employees get two maximum three increments on the basis of performance appraisal and also get bonuses on special occasions like Eid months. 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.
Q 22 What action your management takes if an employee is
not performing well? Ans. bonuses. We are not in the favor of kick rule infect we discourage the kick rule.
working environment what Toyota motors providing to their employees is really appreciated. 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. We have achieved so many things in this organization.
. As an employee of this organization I am still learning many things from this organization. And when we talk about for employees point of view it is very good organization and our performance management system is working really good.
scribd. E-mail address: m.com..yusuf@gmail. Karachi.Performance Management System
Department: HRM Department Designation: AM Human Resources-Compensation & Benefits at Indus Motor Company Ltd.TOYOTA.com.TOYOTA.jp www.au www. Multan.com www. Cell No# 0302-8639714 ………………………………………………………………………………………………………… www.TOYOTA-indus.TOYOTA.com Cell No# 0301-3859264 ……………………………………………………………………………………………………….com www.com
Department: Sales Department Designation: TWS (Toyota Way in Salesman & Marketer) .