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Table of Contents
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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.......................................................................................................44
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.
System
PERFORMANCE
Degree of accomplishment of the task that make up an employees 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.
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), "... 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.
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.
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
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
PAST-ORIENTED METHODS:
Rating scales Checklists Forced choice method Forced distribution method Critical incident method Behaviorally anchored scales Field review method
Performance tests and observations Annual confidential reports Essay method Cost accounting approach Comparative evaluation approach
Appraisal by Results or Management by Objectives, Assessment Center Method. Behaviorally Anchored Rating Scales.
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.
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:
MBO helps and increase employee motivation because it helps to relate an individuals 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:
In human resources , 360-degree feedback, also known as multirater 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 interested reports, or sources such as customers and suppliers with or other "upward the stakeholders. a It may be contrasted performance
feedback," where managers are given feedback by their direct "traditional appraisal," where employees are most often reviewed only by their managers.
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The
employee
gets
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, with the the employee but might speak communicate well manager
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STEPS IN BARS:
The procedure for BARS is usually five stepped.
RELOCATE INCIDENTS:
Any groups of people who also have knowledge then relocate the incidents.
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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.
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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.
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times each individual is compared with another is tallied on a piece of paper. These numbers yield the rank order of the entire group.
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:
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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.
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DISADVANTAGE:
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.
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periodical or formal appraisal. Feedback is provided about the incidents during performance review session.
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DISADVANTAGE:
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
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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
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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.
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FIELD WORK
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American Samoa Australia Bahrain Brunei Darussalam China Islands Fiji Guam Hong Kong, 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
Emirates
Pakistan
Avalon
Camry
Passenger Corolla
Avensis
Tarago
Prius
Echo
MR2
Celica
Rav 4
Kluger
LandCruiser 78 Hiace
Commercial Coaster
Hilux
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Quality Policy
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
IDENTIFY AND AVOID/MITIGATE THOSE ENVIRONMENTAL ASPECTS IMPACTS. WHICH HAVE NEGATIVE ENVIRONMENTAL
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 Companys plant here in Karachi is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured.
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VISION:
"IMCs 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. 30
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.
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ORGANIZATION COMPETITIORS:
HONDA CARS MISTIBUSHI (HIACE AND PICK UPS) HUYNDAI (KIA) MOTORS NISSAN SUZUKI
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.
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which
person
is
involved
in
determining
the
performance of employees and reviewing its effectiveness? ............................................................................................... ............................................................................................... ............................SKIPPED...................................................... .........................
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.
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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 employees 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 Companys 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 Companys employees to motivate and they try to get achievements like Employee of the week.
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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 employees 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.
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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.
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Bibliography
Muhammad Yusuf
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 www.TOYOTA-indus.com www.TOYOTA.com www.TOYOTA.com.au www.TOYOTA.com.jp www.scribd.com
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