Critical Analysis Of Toyota Motor Performance Appraisal System Of Employees

1780 WordsNov 28, 20148 Pages
Critical Analysis of Toyota Motor Performance Appraisal System of Employees Introduction Toyota Company is famous for its supreme values. These values are respected for people and “Kaizen” (Japanese word means good change). Toyota is the market leader in every aspect of the business. Therefore, the HR Department of the company is practicing ongoing improvement in developing the values that embody the way of Toyota. There are three types of activities, like diverse management, stress management and performance management, which are performed by the HR Management of Toyota Motors. The changes that Toyota has made have positive effects on the organization. The first change that is implemented in the organization is the diverse management…show more content…
Rather, the evaluation should be on the current scenario without considering the factors or causes of the event (Guest, 2011). The appraisal system of Toyota is conducted three-times a year. When the company gives promotions or increases, the first performance evaluation of the employees is done for increasing wages. The other two such as skill improvement and productivity, are done for the bonus payment. If an employee performs well and follows the standards set by the company, then the employee will receive a reward bust in the case of lower performance, the employee will no be rewarded. The main problem in this system is that the reward system is on performance based not on the achievements of an employee. The past performance of the employee is useless. Moreover, many managers do discrimination during the process of performance appraisal. This system has some lose pools that are needed to address by the HR Department on priority basis (Lawler, 2012). This system always puts pressure on the employees because evaluation three-times a year makes the employees exhausted, which eventually leads them to de-motivation. Additionally, this causes high turnover ratio for the company. This makes it difficult for the employees to concentrate on their duties and assignments. The environment becomes tense due to the evaluation pressure. This
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