Toyota's Performance Management Of The Toyota Motor Corporation

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Toyota Motor Corporation is a Japanese automotive manufacturer consisted of 333,498 employees worldwide and, as of January 2014, is the fourteenth-largest company in the world by revenue. The headquarters are located in Toyota, Aichi, Japan. In 2001, Toyota created a set of principles and behaviours that underlie their managerial approach and production system, naming it “The Toyota Way 2001” It consists of principles in two key areas: continuous improvement, and respect for people, under which Toyota summarizes its values and conduct guidelines with the following five principles: 1. Challenge 2. Kaizen (improvement) 3. Genchi genbutsu (go and see) 4. Respect 5. Teamwork The Company operates through three business segments. The Automobile segment is engaged in the design, manufacture and sale of car products including passenger cars, minivans and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The Others segment is involved in the design, manufacture and sale of housings, as well as information and communication business. 2 What is Performance Management? It is important to Using the ECS model, which explains the three major factors that influence organisational performance as Environment, Strategy and Capability we can see directly the significance of strategy when planning to outperform competitors. The significant differences in theoretical approaches to the field of strategy lead to two different conflicting views about the nature of the organisation and consequently how to measure performance. The conflict is between the shareholder and the stak... ... middle of paper ... ...oach to performance management since at the end of the day; its primary goal is to create profit for its shareholders. However, the company contributes significant efforts to approach its goal through multiple avenues such as from the four main perspectives of the stakeholder performance management approach: financial, customer, internal and learning and growth, primarily customer. Toyota follows the performance management idea that the “process of evaluating and communicating to an employee, how he or she performing their job and establishing plans for future improvements” is hugely significant in ensuring performance can be maximised. Taking this knowledge of Toyota’s performance management and applying it to the balanced scorecard approach allows us to show how Toyota seeks to find a ‘balance’ between different types of performance and different stakeholders.

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