Toyota Uses The Hoshin Kanri Strategy System

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.

An important element of the appraisal process is the setting of targets and objectives for the next period. An employee cannot be expected to perform well if they do not have a clear understanding of what is expected.

The interaction of people at work is increasingly diverse where people are involved in the work having many reporting lines like a project team which has a matrix structure. So it is fair for such a person to be appraised by all these people than by his/her line manager only.

The processes demonstrates a commitment to people within the business by showing them that they are valued members of the company and their success is important to the entire organization.

Criteria for performance appraisals is an appraisal free of bias, documented results on file, strategies implemented by development of performance measures, feedback, and information for an employee to maximize their performance. Rating factors, effectiveness, and results used to either terminate employees or identify those with potential for advancement.

According to Jeff Lipschultz, “Don’t Be A Victim of Interview Bias”, he shares many circumstances about Interview Bias and how to deal with them. A bias is an opinion about whether a person or idea is outstanding or inferior, that influence decisions. The article mentions eight biases which are can direct toward interviewees. Some biases can help candidates makes a good impression on the interviewer, such as The Halo Effect Bias, Stereotyping and Generalization Bias; Also, some others can be detrimental to the candidates, such as The Contrast Bias and The Gut Feeling Bias. However, a bias can generate by candidates; for example, Nonverbal Bias. Interviewer base biases on cognitive biases that cause them to evaluate the quality of the candidate

The job description for each position is different and so should the evaluation process and questioner. Each department in an organization needs to have guidelines set forth outlining the duites, expectations, training model, and professional code and consistency among employees are critical to the professional appraisal evaluation process. Each employee must be held to the same accountability or the evaluation process becomes tainted by lack of consistency. Management should always focus on the appraisal process as another of their job duties instead of over thinking the task and rating an employee out of fear and retaliation or to prevent an employee from receiving a raise or promotion. In addition, the for the appraisal process to be beneficial to the company the outcome has to be to protect the company from liability or litigation from a disgruntled employee and to boost the companies overall productivity ratings. When an employee believes he or she has a hand in creating the plan to evaluate and change his or her performance the changes are more likely to last rather than being told what changes need to

The performance appraisal system can sometimes connect to biases or prejudices that increase discontent, lack of motivation, resistance especially on the part of

The Halo effect and Rater bias are two potential performance appraisal problems that can cause potential rating errors (Dessler, 2008). These errors in the evaluation render the appraisal, less valuable for the employee and for the company.

To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some

Feedback come in many different forms, however, some of these different forms can have a negative impact on the workplace. One of the most difficult aspects in the performance appraisal process has to do with biases. A bias is defined as a prejudice in favor of or against someone or something. It should go without saying that employees expect their performance evaluations to be fair and free of biases. There are many different kinds of

Max Steadman, Jim Coburn, Lynne Sims, and Tom Hamilton are managers at Eckel Industries, a manufacturer of arc-welding equipment in Minneapolis. They work in the manufacturing division each supervising a different department within the division. Every Friday the managers meet after work for drinks to relax, gossip, and give and receive advice about problems on the job. This week they discuss performance appraisals which they recently conducted. Each of the managers completed evaluation forms using graphic rating scales on each employee then discussed the appraisal with that employee.

Horn error : The opposite of a halo error, downgrading an employee across all performance dimensions exclusively because of poor performance on one dimension. First impression error: developing a negative or positive opinion of an employee early in the review period and allowing that to negatively or positively influence all later perceptions of performance. Recency error: The opposite of first impression error. Allowing performance, either good or bad, at the end of the review period to play too large a role in determining an employee’s rating for the entire period. Leniency error: Consistently rating someone higher than is deserved. Severity error: The opposite of leniency error, rating someone consistently lower than is deserved. Central tendency error: Avoiding extremes in ratings across employees. Clone error: Giving better ratings to individuals who are like the rater in behavior and/or personality. Spillover error: Continuing to downgrade an employee for performance errors in prior rating periods. Steve Bruce lays out The 10 Sins of Performance Appraisers, Sin #1. Failure to set meaningful goals “Well, Sandy, I think we did fairly well this year, eh?” “Tracy, I was sort of hoping you’d make more progress this year.”

There is a potential for bias with the appraisal system if the expectations of the appraisal are not understood or communicated clearly by the supervisor and the employee. In addition, if the appraisal system is not used in a fair, consistent manner, from year to year, or from employee to employee, this will lead to resentment between employees, low morale and decreased performance. All employees must be treated fairly and equally in the appraisal process. Supervisors must use a uniform appraisal system and apply it consistently over time.

Toyota Motor Corporation is a company that started in its early years with humble beginnings. However, over the past 20 years or so Toyota implemented a business strategy that has marched it to the top tier of automakers around the world (Raman). Year after year, research firms have regularly posted Toyota in the upper echelon for reliability, durability, and quality (Raman). Toyota is renowned for its attention to detail, safety, and innovation for the future of automobiles. Their business model reflects this along with their obvious success over the years. Toyota Motor Corporation has become a company that other organizations should look to model themselves after in order to achieve success (Raman). Although currently a booming corporation, Toyota started out with modest beginnings.