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Performance Management System Table of Contents 20

Performance Management System

Table of Contents 20
Table of Contents
20

20

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

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Performance Management System THEORATICAL WORK INTRODUCTION: Human resource is a greatest asset of any organization.

Performance Management System

THEORATICAL WORK
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.

is called human resource department or personnel department. MAJOR FUNCTIONS OF HUMAN RESOURCE DEPARTMENT:  Selection

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 System ” PERFORMANCE “Degree

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”.

of the task that make up an employee’s job”. It reflects how well an employee is

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”.

to job and establishing a plan for improvements”. Effort should be enhanced if good performance is

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 HISTORY: The history of performance appraisal is quite brief. Its roots in

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), "

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.

a basic human tendency to

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.

as opportunities for improvement and skills development. OBJECTIVE OF PERFORMANCE APPRAISAL SYSTEM: Performance

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

Performance Management System the organizations employ it only for that purpose. However performance appraisal can

Performance Management System

the organizations employ it only for that purpose. However performance appraisal can serve Varity of organizational needs very effectively, 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. example

Initiative

Planning and communication

Coordination and follow up

For

Performance Management System DIFFERENTIATING CONTRIBUTION FACTORS: Those elements which cover the contribution of

Performance Management System

DIFFERENTIATING CONTRIBUTION FACTORS:

Those elements which cover the contribution of employees that helps the organization to excel.

METHODS OF APPRAISAL

LEARNING OBJECTIVES:

1. To know different methods of performance appraisal. 2. To know the merits and demerits of different methods of PA.

The last to be addressed in the process of designing an appraisal program is to determine methods of evaluation. Numerous methods have been designed to measure the quantity and quality of employees’ job performance. Each of the method discussed could be effective for some purposes, 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. 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:

PAST-ORIENTED METHODS:

• Rating scales

• Checklists

• Forced choice method

• Forced distribution method

• Critical incident method

• Behaviorally anchored scales

• Field review method

Performance Management System • Performance tests and observations • Annual confidential reports • Essay 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, most traditional methods emphasize either on the task or the worker's personality, while making an appraisal. In order to bring about a balance between these two, modern methods have been developed. Of such methods, the most important are:

Appraisal by Results or Management by Objectives,

Assessment Center Method.

Behaviorally Anchored Rating Scales.

Performance Management System MANAGEMENT BY OBJECTIVES (MBO) Peter Drucker has evolved this method. MBO is

Performance Management System

MANAGEMENT BY OBJECTIVES (MBO)

Peter Drucker has evolved this method. MBO is potentially a powerful philosophy of managing and an effective way. The management by objectives concept is a basic technique. The application of this technique often succeeds or fails because of its interpretations.

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, define each individual's major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.’’ During the late 1960s and early 1970s, MBO seemed to emerge as the dominant tool for organizational management. But many applications met with failure. The concept was challenged, and many discard it as a theoretical idea that could not be applied in practical situations. The causes of failure were in the implementation; they were not in the basic procedure.

in the implementation; they were not in the basic procedure. OBJECTIVES OF MBO: It is result

OBJECTIVES OF MBO:

It is result –oriented or it is the performance, which matters the most. It provides responsibility and accountability and recognizes that employees have needs for achievement and self-fulfillment. It meets this need by providing opportunities for participation in goal setting process.

BENEFITS OF MBO: Performance Management System  MBO helps and increase employee motivation because it

BENEFITS OF MBO:

Performance Management System

MBO helps and increase employee motivation because it helps to relate an individual’s goals with the organizational goals.

Managers are more likely to compete with themselves than with others. Since my targets are to be achieved by me only and hence attempts to better self performance becomes important.

Since MBO focuses on providing clear targets to be achieved and the order of priority it helps to reduce role conflict and ambiguity. 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, or what he has to achieve.

MBO forces mangers to PLAN. Since target setting itself requires planning hence this process aids to planning

MBO identifies problems better and early. Frequent review sessions help in this.

Since it helps to identify performance deficiencies and enables the management and the employees to understand the training needs.

DRAWBACKS:

MBO programmed takes a great deal of time, energy and form- completing on the part of managers.

It is very often difficult to apply MBO concepts to work habits. It is hard to think about the results of work rather than the work itself.

Subordinates may try to set the lowest possible targets to avoid not meeting them.

360-Degree Feedback DEFINITION: Performance Management System In human resources , 360-degree feedback, also known as

360-Degree Feedback

DEFINITION:

Performance Management System

360-Degree Feedback DEFINITION: Performance Management System In human resources , 360-degree feedback, also known as

In human resources , 360-degree feedback, also known as multi- rater feedback, multisource feedback, or multisource assessment, is feedback that comes from all around an employee. "360" refers to the 360 degrees in a circle, with an individual figuratively in the center of the circle. Feedback is provided by subordinates, peers, and supervisors. It also includes a self-assessment and, in some cases, feedback from external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with "upward feedback," where managers are given feedback by their direct reports, or a "traditional performance appraisal," where the employees are most often reviewed only by their managers.

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, such as pay or promotion. When this is the case, the 360 assessment is for evaluation purposes, and is sometimes called a "360-degree review."

Performance Management System BENEFITS OF 360-DEGREE FEEDBACK:  The employee gets a well-rounded perspective of

Performance Management System

BENEFITS OF 360-DEGREE FEEDBACK:

The employee gets a well-rounded perspective of his performance. You should conduct one-on-one meetings or surveys with those providing input.

Customers can be internal and external. Ask the customer to provide situations in which expectations were not met, met or exceeded. Through 360 feedbacks, the employee understands how his decisions directly affect others.

Subordinates can provide feedback about managers without fear of retaliation. Do not disclose the names of subordinates providing feedback.

When the same feedback is from multiple sources, the employee does not feel he is being targeted by one person.

Using 360-degree feedback provides a better perspective of training needs. For example, the employee might communicate well with the manager but speak condescendingly to subordinates. Communications training would focus on communicating with subordinates.

Performance Management System BEHAVIORALLY ANCHORED RATING SCALES

Performance Management System

BEHAVIORALLY ANCHORED RATING SCALES

(BARS)

This

developed.

STEPS IN BARS:

The procedure for BARS is usually five stepped.

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.

recently

is

a

new

appraisal

technique,

which

has

been

DEVELOP PERFORMANCE DIMENSIONS:

The incidents are then clustered into smaller sets of performance dimensions and each dimension is the defined.

RELOCATE INCIDENTS:

Any groups of people who also have knowledge then relocate the incidents.

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. Results are sufficiently accurate, since it is done by person’s expert in the particular field. It sets clear standards. The critical incidents along the scale help to clarify what is meant by “extremely good performance, average performance and so forth. 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.

Performance Management System THE ASSESSMENT CENTER METHOD The assessment center concept was initially applied to

Performance Management System

THE ASSESSMENT CENTER METHOD

Performance Management System THE ASSESSMENT CENTER METHOD The assessment center concept was initially applied to military

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. These simulations involve characteristics that managers feel are important for job success. The evaluators observe and evaluate participants as they perform activities commonly found in these higher-level jobs.

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);

Evaluations are drawn from experienced managers with proven ability at different levels of management;

They evaluate all employees, both individually and collectively, and each candidate is given one of the four categories; more than acceptable, less than acceptable and unacceptable;

The members prepare a summary report, and a feedback on face-to-face basis is administered to all the candidates who ask for it.

LIMITATIONS:

The major limitations are:

It is a time consuming process.

A relatively expensive process.

Assessment center rating are said to be strongly influenced by participants interpersonal skills.

Performance Management System STRAIGHT RANKING METHOD It is the oldest and the simplest method of

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. That is the ranking of a man in a work group is done against that of another. The relative position of each man is tested in terms of his numerical rank. 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.e. persons are tested in order of merit and placed in a simple grouping. This is the simplest method of separating the most efficient from the least efficient: and relatively easy to develop and use.

LIMITATIONS:

In practice it is very difficult to compare a single individual with human beings having varying behavior. 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.

PAIRED COMPARISON TECHNIQUE

This is an improvement over the straight ranking method. By this technique, each employee is compared with all other persons in pairs one at a time. With this technique, judgment is easier and simpler than with the ordinary ranking method. The number of

Performance Management System times each individual is compared with another is tallied on a piece

Performance Management System

times each individual is compared with another is tallied on a piece of paper. These numbers yield the rank order of the entire group.

GRAPHIC RATING SCALE

This is the most commonly used method of performance appraisal. Under it a printed forms, one for each person to be rated. According to Jucius, these factors are: employee characteristics and employee contribution. In employee characteristics are included such qualities as imitativeness, leadership, cooperativeness, dependability, industry, attitude, enthusiasm, loyalty, creative ability, decisiveness, analytical ability emotional ability, and co-ordination. In the employee contribution are included the quantity and quality of work, the responsibility assumed, specific goals achieved, regularity of attendance, leadership offered, attitude towards superiors and associates, versatility etc. These traits are the evaluated on a continuous scale, wherein the rater places a mark somewhere along a continuum. This method was introduced by ‘Walter D. Scott’’ to get the judgment of superiors on the subjects.

to get the judgment of superiors on the subjects. FEATURES: The two important features of this

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. These two facts eliminate the restrictions on natural judgments, which other rating methods impose.

To ensure the success of this method, one should:

Performance Management System Obtain the descriptions of persons at two extremes of the performance scale:

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.

Establish the discrimination value (i.e. the index of the extent to which a quality is valued) Pair the statement or the trait name and preference value. 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. It tries to check a rater’s tendency to give consistently high or low ratings to all employees. Under this method, the rating elements are several sets of pair phrases or adjectives (usually sets of four phrases two of which are positive, two negative) relating to job proficiency or personal qualifications. The rater is asked to indicate which of the four phrases is most and least descriptive of the employee. The following statements are examples of the type of statement that are used;

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, while the favorable ones get a plus credit; the unfavorable ones get no credit.

DISADVANTAGE: Performance Management System This method has certain advantages: While choosing from two statements from

DISADVANTAGE:

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, as only one of the favorable and unfavorable is related to success or failure on the job. Further, he also does not know how ‘high’ or ‘low’ he is evaluating the individual because he has no access to the scoring key. This increases the overall objectively of this method. However, this method is not clearly superior to traditional rating methods. Such tests are expensive to develop. Most of the raters become irritated with the test because they are not being trusted. Finally, 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.

CRITICAL INCIDENT METHOD

This method was developed following research conducted by the armed forces in the United States during World War II. 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. 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”. 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

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

Performance Management System

periodical or formal appraisal. Feedback is provided about the incidents during performance review session.

DISADVANTAGE: Performance Management System The advantages of this method are:  This method provides an

DISADVANTAGE:

Performance Management System

The advantages of this method are:

This method provides an objective basis for conducting a discussion of an individual's performance.

Vague impressions and general remarks are avoided, for the supervisors are trained to record, accurately the actual incidents from the daily activities of an employee.

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, administer a reprimand in his own name: Named his supervisor as the responsible one.

Resisted pressure to start a job without sufficient advance thought and planning.

Refused to accept job instructions without a prolonged discussion or argument.

Reported findings on a problem in a fashion, which expedited an effective solution.

Failed to consider alternative ways of performing a job when available information indicated that he should.

Apologized to a subordinate when he was in the wrong.

Performed ineffectively on a project because of failure to plan properly.

Demonstrated the ability to give first priorities to jobs.

Planned for long-range requirements and future developments with unusual effectiveness.

Performance Management System  Acquired a thorough knowledge of the equipment for which he was

Performance Management System

Acquired a thorough knowledge of the equipment for which he was not responsible. , but which was related to his job.

Made unrealistic demands of his group in terms of lime und effort.

Studied a current operating procedure and made effective recommendations for improvement.

Needed prodding on jobs outside of his major responsibilities.

Displayed ingenuity in cutting corner to meet a deadline.

Put the blame for his own mistakes on his subordinates.

Demonstrated an inability to get along with other employees having the same level of responsibility.

Misinformed his superior concerning an important matter.

Failed to prepare a report on lime when specifically requested to do so.

Recognized the abilities and weaknesses of his subordinates and made job assignments accordingly.

Insisted on using equipment, which was not justified, on economic grounds.

Failed to keep superiors informed about important job developments affecting other Departments or divisions.

Performed a difficult task, which was outside his regular duties without being told to do so.

Appropriated the good ideas of subordinates as his own

Performance Management System ERRORS IN PERFORMANCE APPRIASAL POTENTIAL ERRORS IN PERFORMANCE APPRAISAL: Several common

Performance Management System

ERRORS IN PERFORMANCE

APPRIASAL

POTENTIAL ERRORS IN PERFORMANCE APPRAISAL:

Several common errors have been identified in performance appraisal. Someone is the followings:

in performance appraisal. Someone is the followings: LENIENCY: Leniency is the grouping of ratings at the

LENIENCY:

Leniency is the grouping of ratings at the positive end instead of spreading them throughout the performance scale.

CENTRAL TENDENCY:

The central tendency occurs when appraisal statistics indicate that most employees are appraised as being near the middle of the performance scale.

RECENCY:

Recency occurs when evaluation based on work performed most recently---- generally work performed one to two months prior to evaluation.

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.

Performance Management System OVERCOMING ERRORS IN PERFORMANCE APPRAISAL: As the preceding discussion indicates, the

Performance Management System

OVERCOMING ERRORS IN PERFORMANCE APPRAISAL:

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

Performance Management System FIELD WORK Toyota Motor Company 23

Performance Management System

FIELD WORK
FIELD WORK

Toyota Motor Company

Performance Management System FIELD WORK Toyota Motor Company 23
Performance Management System 24

Performance Management System

Performance Management System 24
Performance Management System Toyota Motor Introduction Toyota Motor Corporation is one of the world‘s leading

Performance Management System

Toyota Motor Introduction

Toyota Motor Corporation is one of the world‘s leading automakers, offering a full range of models, from mini vehicles to large trucks. Global sales of its Toyota and Lexus brands, combined with those of Daihatsu and Hino, totaled 6.78 million units in CY2003*. Besides its own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan, Toyota has 45 manufacturing companies in 26 countries/locations, which produce Lexus- and Toyota-brand vehicles and components. As of March 2003, Toyota employs 264,000 people worldwide (on a consolidated basis), and markets vehicles in more than 140 countries. Automotive business, including sales finance, accounts for more than 90% of the company's total sales, which came to a consolidated ¥16.05 trillion in the fiscal year to March .

consolidated ¥16.05 trillion in the fiscal year to March . American Samoa India Saipan Australia Bahrain
consolidated ¥16.05 trillion in the fiscal year to March . American Samoa India Saipan Australia Bahrain

Toyota International Portfolio

Performance Management System Avalon Tara g o MR2 Rav 4 Passenger Camr y Corolla Avensis

Performance Management System

Avalon

Performance Management System Avalon Tara g o MR2 Rav 4 Passenger Camr y Corolla Avensis Prius

Tarago

Performance Management System Avalon Tara g o MR2 Rav 4 Passenger Camr y Corolla Avensis Prius

MR2

Performance Management System Avalon Tara g o MR2 Rav 4 Passenger Camr y Corolla Avensis Prius

Rav 4

Performance Management System Avalon Tara g o MR2 Rav 4 Passenger Camr y Corolla Avensis Prius

Passenger

Camry

System Avalon Tara g o MR2 Rav 4 Passenger Camr y Corolla Avensis Prius Echo Sports

Corolla

System Avalon Tara g o MR2 Rav 4 Passenger Camr y Corolla Avensis Prius Echo Sports

Avensis

Prius

Tara g o MR2 Rav 4 Passenger Camr y Corolla Avensis Prius Echo Sports Corolla Sportivo

Echo

g o MR2 Rav 4 Passenger Camr y Corolla Avensis Prius Echo Sports Corolla Sportivo Camr

Sports Corolla Sportivo

Camr y Corolla Avensis Prius Echo Sports Corolla Sportivo Camr y Sportivo Celica 4 W/D LandCruiser

Camry Sportivo

Prius Echo Sports Corolla Sportivo Camr y Sportivo Celica 4 W/D LandCruiser Prado LandCruiser 100 Kluger

Celica

Prius Echo Sports Corolla Sportivo Camr y Sportivo Celica 4 W/D LandCruiser Prado LandCruiser 100 Kluger

4 W/D

LandCruiser Prado

Sportivo Camr y Sportivo Celica 4 W/D LandCruiser Prado LandCruiser 100 Kluger Commercial LandCruiser 78 Hiace

LandCruiser 100

Camr y Sportivo Celica 4 W/D LandCruiser Prado LandCruiser 100 Kluger Commercial LandCruiser 78 Hiace Coaster

Kluger

Commercial

LandCruiser 78 Hiace

Camr y Sportivo Celica 4 W/D LandCruiser Prado LandCruiser 100 Kluger Commercial LandCruiser 78 Hiace Coaster
Camr y Sportivo Celica 4 W/D LandCruiser Prado LandCruiser 100 Kluger Commercial LandCruiser 78 Hiace Coaster

Coaster

Camr y Sportivo Celica 4 W/D LandCruiser Prado LandCruiser 100 Kluger Commercial LandCruiser 78 Hiace Coaster

Hilux

Camr y Sportivo Celica 4 W/D LandCruiser Prado LandCruiser 100 Kluger Commercial LandCruiser 78 Hiace Coaster
Performance Management System WELCOME TO INDUS MOTOR COMPANY Ltd . Our Core Values  Product

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 , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. 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. The majority shareholder is the House of Habib with 50 % of the equity. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. 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. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented.

Quality Policy Performance Management System WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO

Quality Policy

Performance Management System

WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO FOCUS ALL OUR ACTIVITIES LEADING TO:

MANUFACTURING HIGH QUALITY PRODUCTS.

CUSTOMER SATISFACTION.

SERVICE TO SOCIETY.

MAINTAIN MARKET LEADERSHIP.

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 WHICH HAVE NEGATIVE ENVIRONMENTAL IMPACTS.

COMPLY WITH ALL APPLICABLE LEGAL, REGULATORY AND OTHER REQUIREMENTS.

ASSIST SOCIETY BY MAKING THE ENVIRONMENT FRIENDLIER.

Plant:

Indus Motor Company Ltd.'s production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. 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.

Performance Management System 29

Performance Management System

Performance Management System 29
VISION: Performance Management System "IMC’s Vision is to be the most respected and successful enterprise,

VISION:

Performance Management System

"IMC’s Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology".

The most respected.

The most successful.

Delighting customers.

Wide range of products.

The best people.

MISSION:

Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world.

MARKET OVERVIEW

Since its start back in 1990, Indus Motor Company Ltd. has enjoyed the status of leader because the name it is reproducing is of TOYOTA. Market of automobile in Pakistan is well established and it clearly states the self-actualization need of Pakistani consumers. Before Indus Motor Company Ltd.’s launch TOYOTA has a well-built network of sales that was overtaken by Indus Motor Company Ltd.

Performance Management System Pakistani automobile market consist of Manufacturer like Indus Motor Company Ltd., Honda

Performance Management System

Pakistani automobile market consist of Manufacturer like Indus Motor Company Ltd., Honda Atlas Motors and Pak Suzuki Motors and Importer that are wide spread in country in shape of dealers. To lead in this environment Indus Motor Company Ltd. has extended its product line of COROLLA to six and is operating a product mix of three categories. Their most target markets are upper middle class, upper class, upper class, government and resellers. They are executives, managers, businessmen, landlords, politicians, dealers, government offices and armed forces. They say, “We have customers who trust us for reliability, performance, safety, status, functionality and care”. They understand the fact that it is not possible to get all these things at the same time from someone else.

MARKET SHARE

The demand in the auto sector in Pakistan is skewed towards small cars. Due to this trend Pak Suzuki Motors enjoys a monopoly in the small-car market.

Pakistan is skewed towards small cars. Due to this trend Pak Suzuki Motors enjoys a monopoly
Performance Management System ORGANIZATION COMPETITIORS:  HONDA CARS  MISTIBUSHI (HIACE AND PICK UPS) 

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, the company has set certain objectives. These are:

1. Improve Quality

2. Enhance Efficiency

3. Minimize Cost

4. Increase Productivity

Over the previous years, the company has put in its best efforts to manufacture quality cars designed for its customers. 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.

The company is using the philosophy of Kaizen for continuous improvement. It has become a way of life for the management of the company by doing these efforts towards their objectives.

Performance Management System Field Work questions asked… Q 1 Do your organization have a “performance

Performance Management System

Field Work questions asked…

Q 1 Do your organization have a “performance management system”? Ans.

Yes

No

Q 2 Is there any role of H.R Department in employee

performance management? Ans.

 

Yes (skip Q.4) No (skip Q.3)

Q

3

If yes, then

what is

the

role of H.R

Department in

employee performance management?

Ans. 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). Then try to re-establish them. HR department play an important part in performance management system, appraisal of each employee are make in HR department so these appraisal are on the basis of their performance.

Performance Management System Q 4 which person is involved in determining the performance of employees

Performance Management System

Q 4 which person is involved in determining the performance of employees and reviewing its effectiveness?

SKIPPED

Q 5 What are the Key Performance Indicators for Toyota Company Employees?

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. Usually this is done with the help of a self appraisal form where the employee rates himself on various parameters, tells about his training needs, if any, talks about his accomplishments, strengths, weaknesses, problems faced etc

HOD Assessment

Another most important method is Head of Department assessment. 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. 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.

Performance Management System Q 6 How Toyota Company keeps the performance up to the required

Performance Management System

Q 6 How Toyota Company keeps the performance up to the

required standards?

Ans. 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. The most important thing which our managers do, always motivates employees towards work hard and achieves goals. When employees are fully motivated they easily achieve their 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. 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.2 nd we see our goals while goals are attain or not. Managers check their resources while resources are fully utilized as per estimate. If yes, it’s mean performance of employees are satisfy.

Performance Management System Q 8 At what management level, performance appraisal is conducted? Ans. We

Performance Management System

Q 8 At what management level, performance appraisal is

conducted? Ans. We use the Self Appraisal Assessment and DSM Assessment techniques to conduct performance appraisal at higher level of management. It is already mention in companies polices and it may be change with time to time. In Self Appraisal Assessment employees do their own comparison with their job.

Q9 What management level of Toyota Company sets the performance standards? Ans. Higher management level sets performance 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.

Q 10 How would you get the feedback from an employee

about your performance management system? Ans. We get feedback through discussion, meetings with employees two times in a month. In these meetings mostly employees are invited and they have freehand to give ideas and suggestions about performance management system. Some time urgent meetings are called for rapid feedback.

Q 11 Who is responsible performance appraisal? Performance Management System to perform the duties of

Q

11

Who

is

responsible

performance appraisal?

Performance Management System

to

perform

the

duties

of

Ans.

HR Manager HR Department Managers+ Other specify Mostly managers are doing this job but H.R department is responsible to perform this duty. Department take the suggestions from all other managers especially from H.R. Managers then make the police.

Q 12 At what extend Toyota management follows the documented procedure while executing performance appraisal?

Ans. 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. 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. That is why Toyota uses the HR Policy and Sales Policy for performance management appraisals which are very strict in the organization.

Performance Management System Q 13 Do you have knowledge about your Key Performance Indicators, which

Performance Management System

Q 13 Do you have knowledge about your Key Performance Indicators, which your management uses to check your performance?

Ans.

Yes

No Definitely, 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.

Q 14 Are you satisfied with this system of performance appraisal?

Ans.

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. I am, 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.

Performance Management System Q 15 What frequency used by your management to check your performance?

Performance Management System

Q 15 What frequency used by your management to check your performance?

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. But in our organization our management use monthly frequency to check the performance of the employees. 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.

Q 16 How the performance appraisal is conducted?

Ans. We use Self Assessment Forum to conduct performance appraisal in the responsibility of managers. Mostly MBO and 360-degree appraisal system is used. Head of Departments plays an important role while conducting performance appraisal. One of basic key while conducting performance appraisal is that, the performance appraisal is clean, clear and transparent.

Performance Management System Q 17 Do your management shares the results of “performance appraisal” with

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. If the employee’s results are up to the standards then Toyota Company announces the rewards. The most popular award system in Toyota Company is Employee of the month. Each month the best employee snap and his achievements are posted on Company’s Dashboard and also gives special bonus. At the end of half year, Toyota Company then seeks its best employees of the months and also announces some bonuses and also promotions. This reward system helps the Company’s employees to motivate and they try to get achievements like Employee of the week.

Q 18 If yes then, 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, they share both positive and negative aspects with their employees and also the degree of their efficiency. If the results is too much positive then they announce rewards otherwise if the result is negative then the

Performance Management System Head of Department personally meet with employee and discuss with him about

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. 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, 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.

Q 19 Do your management offer incentives upon the basis of your performance?

Ans.

Yes

No Yes, mostly bonus, increments and especially after the end of fiscal year promotions. Mostly promotions are based on frequency of employees of the month. 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, the employee gets the promotion so the motivation level increases which ultimately affect the Company’s internal performance criteria.

Q 20 If yes then, what is the type of these incentives?

Ans.

Cash

Promotion

Bonuses

Other specify

Performance Management System Toyota Company offers incentives like cash, bonuses, increments and promotions. Some

Performance Management System

Toyota Company offers incentives like cash, bonuses, increments and promotions. Some employees get two maximum three increments on the basis of performance appraisal and also get bonuses on special occasions like Eid months. 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. Yes we did, 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.

Q 22 What action your management takes if an employee is

not performing well?

Ans. Sometimes employees are not performing well so First we identify the problem of the employee, and then see what kind of training they need than we execute training for them. After training we schedule their practices. We are not in the favor of kick rule infect we discourage the kick rule. 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.

Performance Management System Q 23 Any comments (positive or negative) about your organizational & your

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. Environment of Toyota is very friendly for those who want to learn. And when we talk about for employees point of view it is very good organization and our performance management system is working really good, working environment what Toyota motors providing to their employees is really appreciated. As an employee of this organization I am still learning many things from this organization.

Muhammad Yusuf Performance Management System Bibliography Department: HRM Department Designation: AM Human

Muhammad Yusuf

Performance Management System

Bibliography

Department: HRM Department

Designation: AM Human Resources-Compensation & Benefits at Indus Motor Company Ltd, Karachi.

E-mail address: m.yusuf@gmail.com

Cell No# 0301-3859264

………………………………………………………………………………………………………

Chaudhary Imran

Department: Sales Department

Designation: TWS (Toyota Way in Salesman & Marketer) , Multan.

Cell No# 0302-8639714

…………………………………………………………………………………………………………

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