Critical Analysis Of Toyota Motor Performance Appraisal System Of Employees

Performance appraisal is an important issue in human resource management and has a significant effect in the performance of an organisation. It is the system of evaluating the performance of employees regarding the accomplishment of their responsibilities and determining their potential to grow and develop. Bias in the evaluation process can affect the accuracy and appropriateness of the performance appraisal. Bias is a serious issue because it affects the ability to make appropriate decisions about the promotion of employees. A performance appraisal system that works to the disadvantage of members of a group can also pose legal issues.

Performance appraisal is a method which is increasingly used to evaluate employees to determine the degree to which they are performing effectively and encourage them to direct their energies towards organizational performance. Although the appraisal is being practiced, there are criticisms made against the system which generally arise from within the Orthodox and radical management frame work.

Development of a performance appraisal system that is effective in a human service organization is of benefit for the organization and the employees. For a performance appraisal system to be effective, the system has to be strategic, designed to fit the specific needs of the organization, non-discriminatory, non-bias, with correct implementation and administration. Many different components, must to be incorporated to make this type of system beneficial for all who use it, and all who are evaluated by the system.

Interviewed were five members of The Gaston County Human Resource Department (HR). HR is responsible for the recruitment of qualified employees. HR is also charged with keeping accurate and complete records for personnel administration, including health insurance, retirement benefits, worker’s compensation, accident pressing reports, and time and pay request. In addition HR is responsible for over seeing, maintaining, and implementation of the employee performance appraisal system for all County departments consisting of 1,500 employees. Also interviewed was a panel of five front line supervisors from different departments at Health and Human Services, Social Services division (DHHS). DHHS is responsible for the care and support of the most vulnerable in the community offering services such as Food and Nutrition, Medicaid, Child Support, Day Care Assistance, Work First, and Adult and Aging Services. DHHS supervisors are responsible for line staff including conducting performance appraisals. Gaston County offices first priority is customer service to the public, all departments work in conjunction with each other in order to provide the services needed by the public at large.

It also helps to highlight those areas in which the employee can be trained and it is also beneficial in the employee development. This appraisal method can be beneficial for those people who are in inferiority complex and underestimate themselves, to change their mindset and remain motivated after getting a positive feedback from their co-workers, bosses etc.

In this paper I will be describing effective performance appraisals and how they can increase employee performance. I will provide examples of strategic advantages in the performance appraisals process and also give examples of potential unfairness in the employee appraisal system.

Performance appraisal is an evaluation and grading exercise undertaken in organizations to achieve several objectives such as employee motivation, identification of training needs, rewards and remuneration, employee development through feedback etc. [Fig. 1]. All methods for performance appraisal have several advantages and disadvantages based on location of the firm, socio-economic environment, vision and mission of the firm, organizational structure and other factors. Organizations in different industrial sectors may have different focus areas of work and different values and thus, expectations from employees vary across sectors.

Performance appraisal is essential to understand and improve the employee’s performance through HRD. It is viewed that performance appraisal was useful to decide upon employee’s promotion, transfer etc. But recent developments in HRD indicate that performance appraisal is basis for employee development. A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc Performance

This is the essential component of the business. Therefore, Toyota uses its powers to support and preserve its employees. Toyota has a well-coordinated and systematic production that efficiently uses the workforce. The central philosophy of human resource management is to give employees with material considerations to develop their work skills. The strength of the company to continually reward employees can also efficiently keep employees in the company without leaving. These arrangements allow employees to work in a comfortable and relaxed atmosphere, thereby enhancing productivity and quality to developing a competitive

There have been similar cases like this. “Adverse impact statistics have also been used successfully in “Disparate Treatment” cases to support an individual’s claim of race or gender discrimination” (Ducham, 2013). The importance of training manager correctly and evaluating the appraisal systems comes to light in this case.

shown marked improvement or progress. Lack of personal performance growth would result in consequences for the employee including a probationary period or dismissal. Personal conflicts between manager and employee should not be reflected in the appraisal process. Manager accountability would be reflected by the performance of the employee; hence, an ineffective manager could as easily be discovered through the process as an ineffective employee could be. The process would actually be a system of checks and balances. Ideally, this would promote team players and identify any weak links. The goal of performance appraisals is utilizing the employee’s performance and their behavior or attitude. With correct implementation, the attitude and behavior will not be the issue or focus of the manager. “For any performance improvement to take place, both parties must agree that improvement is necessary, that a plan for improving performance has been jointly formulated, and that periodic progress improvement sessions will take place, as needed. Thus, improvements in employee performance and attitudes can truly be enhanced.” (Peggy Anderson, 1998)

Organizations use job analysis to perform appraisals used indirectly or directly to assist in determining any or any future reward outcomes. Results from job analysis help employers identify the employees who are performing better in their jobs and who should be getting paid more or rewarded with bonuses or promotions. The appraisal systems are more formal and structured between the employee and his or her immediate supervisor. Job analysis or job appraisals are done depending on the company or organization, either biannually or annually. The strength, weaknesses, skill developments, and opportunities for improvement are discusses with the employee. Those employees that are poor performers are counseled for better improvement and performance. Only in extreme cases are decrease in pay, demotion, or even dismissal is resorted to. The modern job analysis is to encompass the goal setting for the employer and employee.

An appraisal system may provide a Human Service organization in numerous of techniques. The main reason for effective appraisal can serve for development and administrative for an organization of Human service. From the viewpoint of the administrative the main reason of the appraisal presentation system can take in numerous of decision making in regards to changes in job responsibility, reward, or promotion choices. The development reasons consist of helping and achieving employee’s best routine, appraise staffs weaknesses or strengths and figure out if other alternative for

On the other hand, poor performance, or mediocre performance may lead to negative appraisals and consequences, including job termination or withholding of bonuses, awards, and promotions. Performance appraisals are a systemic means of ensuring quality of work performance, and thus achieving the strategic objectives and advancing the goals of the organization. These performance appraisals, in order to be effective, must be applied in a uniform, objective, fair and consistent manner over time. In addition, the expectations of the performance appraisal must be clearly understood and agreed upon by the supervisor and the employee. Objectivity and fairness in the appraisal system build trust in the organization as well as high morale among employees.

Performance appraisal is the performance of staff duties and responsibilities assigned for reviewing and discussion. In this assessment is based on his / her income about the employees where work in, rather than the result of employee personality characteristics. Assessment of skills and achievements measured with reasonable accuracy and consistency. It provides a way to help identify areas of performance improvement, and help promote professional growth. It should not, however, be considered the only means of communication competence. Communication will help open lines to effective working relationships.