Use of Performance Appraisal as a Strategic Management Tool at Toyota East Africa Limited

Abstract

The issues of accuracy and fairness in performance appraisal are one of the key research interests in the field of human resource management. Performance appraisal may be used as a means of measuring performance. The purpose of measuring performance is not to indicate only where things are not going according to plan but also to identify why things are going well so that steps can be taken to build on success. Performance appraisal is an important human resources function, which provides management with a systematic basis for effectively recognizing and evaluating the present and potential capabilities of human resource. This research problem was studied through the use of a descriptive research design. The main focus of this study was both quantitative and qualitative. The study population for this research focused on employees of Toyota East Africa limited (TEAL). The study utilized both primary and secondary data. The researcher used drop and pick later method to administer the questionnaires. Quantitative data was analyzed using descriptive statistics while qualitative data was analyzed using content analysis. The quantitative data was coded to enable the responses to be grouped into various categories. Coded data was entered into computer spreadsheet using SPSS to generate quantitative reports through tabulations, percentages, and measures of central tendency. The study found that TEAL uses training and pay for performance as a strategic management tool to a great extent and that it carried appraisals of its employees frequently. TEAL maintains a record system, and it maintains records as a strategic management tool to a moderate extent. The study has recommended that organizations should continuously train their staff to continually equip them with the necessary skills to perform their duties. Further, it has recommended that organizations reviews should be performed on a frequent and on ongoing basis. Finally it has recommended that organizations should pay their employees based on their performance to helps motivate and commit the employee in order to increase revenue and profitability or organizations