A STUDY ON

“PERFORMANCE APPRAISAL”
WITH REFERENCE TO
TOYOTA
RAJAMAHENDRAVRAM
A Project report
Submitted to the Department of Commerce and Management studies,
Adikavi Nannaya University, Rajahmahendravaram, East Godavari District, A.P
In partial fulfilment for the award of the Degree of
BACHELOR OF BUSINESS ADMINISTATION
Submitted
By
N.APARNA
Registered No: 190928300028
Under the Esteemed Guidance of
Mr. K.V. RAJESH KUMAR MBA
Lecturer in Commerce and Management studies

SAMHITHA DEGREE & P.G. COLLEGE

(Affiliated to Adikavi Nannaya University, Rajahmahendravaram)
RAJAHMUNDRY
ACADEMIC YEAR: 2019-2022
 DEPARTMENT OF MANAGEMENT
SAMHITHA DEGREE COLLEGE
(Affiliated to Adikavi Nannaya University, Rajahmahendravaram)

BACHELOR OF BUSINESS ADMINISTATION

CERTIFICATE

This is to certify that the project work entitled “An analytical study on
PERFORMANCE APPRAISAL being followed by LEELA KRISHNA TOYOTA
w.r.t. RAJAMAHENDRAVRAM”, submitted by MS. N.APARNA in partial
fulfillment for the award of degree of “Bachelor of Business Administration” to the
SAMHITHA Degree & PG College. It is a record of bonafide work carried out by
him under my guidance and supervision. This candidate for the “Bachelor of
Business administration” (2019-2022) affiliated to Adikavi Nannaya University,
Rajahmahendravaram

PROJECT GUIDE HEAD OF THE

DEPARTMENT
 DECLARATION

I hereby declare that the project entitled “AN STUDY OF

PERFORMANCDE APPRAISAL with reference to TOYOTA
RAJAMAHENDRAVRAM, submitted by me to the department of commerce and
management studies, SAMHITHA DEGREE COLLEGE,
RAJAMAHENDRAVARAM is of my own and has not been submitted to any
university or published any time before.
In partial fulfillment of the requirement for the award of the Degree of the
“BACHELOR OF BUSINESS ADMINISTRATION” affiliated to Adikavi Nannaya
University, Rajahmahendravaram

Place: RAJAMAHENDRAVARAM
N.APARNA
 ACKNOWLEDGEMENT

I acknowledge the following distinguished personalities who graciously allowed me

to carry out this project work successfully. I feel it is my duty and honor to

acknowledge all those who have extended their guidance and warm support in

completing my project work.

It is privilege to thank Sri. JAKKAMPUDI RAJA INDHRAVANDITH, the

chairman of “SAMHITHA DEGREE COLLEGE, Rajahmahendravaram for

providing state of the art facilities, experienced and talented faculty members.

I thank, Mr. T.RAMA KRISHNA, principal of SAMHITHA DEGREE COLLEGE,

Rajahmahendravaram for his continuous support and encouragement in my

endeavor.

I also thankMr. M. SURYA NARYANA Head of Department for his continuous

support and encouragement in my project work.

I also thank Mr K.V.RAJESH KUMAR, by whose guidance I could make my

project work complete.

I also thank Mr.AGM.R.D to permit me to do project work and provide with the

necessary information on .

Finally, I thank all my teaching and non-teaching staff members who extended their

helping hand in completion of my project.

N.APARNA
 INTRODUCTION

A majorconcernof every organizationshould be

tocontributepositivelytowards the achievement of its objective. Organizational

effectiveness is often equated

withmanagerialefficiency.Amanagercanensureorganizationaleffectivenessonlybygu

aranteeing the full utilization of human resource available through individual

employeesunder his guidance. Hence, it is always required for a manager to

monitor and measure theperformanceof employees.

Moreover, since the organization exists to achieve the goals, the degree

ofsuccess that individual employees have in reaching this individual goal is

important indeterminingorganizational effectiveness. Theassessment of how

successful employeeshave been at meeting their individual goal to comes a critical

part of human resourcemanagement.This leadsto concept of

performanceappraisal.

Aperformanceappraisalsystemfunctionsas definitionsof

performance.Performanceappraisalisamethodofevaluatingthebehaviourofemploye

esin the work spot, including both qualitative and quantitative aspects of job

performanceindicates how an individual is fulfilling the job demands and it is

always in terms of

results.Underperformanceappraisalnotonlytheperformanceofanemployeebutalsohi

spotential for developmentis evaluated.

“PerformanceAppraisalisasystematicdescriptionofanemployee’sjobrelevantstrengt

hsand weaknesses”.

In performance appraisal or merit rating refers to all the formal

proceduresused in working organizations to evaluate the personalities and

contributions and potentialgroup members. In appraisal system the employee’s

merits like initiatives,

dependability,personalityetc.,arecomparedwithothersandrankedtorated.Appraisals

mightbebasedonthecriteriaof employee’sskills,

educationalqualifications,knowledge,abilitiestodelegateplans,supervise,assumeres

ponsibility,exerciseleadership,personalqualities,creativity,decisionmakingandinterp

ersonalskills.

An appraisal motivates an employee into increased effort aimed at enhancing

theoutcome of the assessment. It tells an employee what set of activities or what

qualities areconsidered desirableby theorganization.

It is the systematic method of obtaining, analyzing & recording information

about anemployeethatis needed:

 Foreffectivemanagementofbusiness.

 By the manager to help him improve the jobholder’s performance and plan

hiscareer.

 By the jobholder to assist him to evaluate his own performance and

develophimself.
 In performance planning and review, the Reporting Manager is expected to

settargets or tasks for the appraise in the beginning of the year. In the middle of

the year, theappraise fills the self-appraisal form, indicating the extent which the

target or task has beencompleted, the difficulties faced and the suggestions for

improvement. At the end of theyear, there is the annual review and targets/tasks

set for the next year. Both in the mid-yearreview and annual review, the self-

appraisal is supplemented by a performance review,discussion, the problems are

discussed and the appraiser is given feedback on how he isdoing.

The appraisal system is an instrument for improving the work culture

byconvincingemployeesthattheircareergrowthislinkedwiththeperformanceoftheco

mpany.

Performance appraisal is necessary to measure the performance of the

employees and the organization to check the progress towards the desired goals

and aims.

The latest mantra being followed by organizations across the world being –

"get paid according to what you contribute" – the focus of the organizations is

turning to performance management and specifically to individual performance.

Performance appraisal helps to rate the performance of the employees and

evaluate their contribution towards the organizational goals. If the process of

performance appraisals is formal and properly structured, it helps the employees

to clearly understand their roles and responsibilities and give direction to the
individual’s performance. It helps to align the individual performances with the

organizational goals and also review their performance.

Performance appraisal takes into account the past performance of the

employees and focuses on the improvement of the future performance of the

employees.

Performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the

performance appraisal is measuring and improving the actual performance of the

employee and also the future potential of the employee. Its aim is to measure what

an employee does.

According to Flippo, a prominent personality in the field of Human resources,

"performance appraisal is the systematic, periodic and an impartial rating of an

employee’s excellence in the matters pertaining to his present job and his potential

for a better job." Performance appraisal is a systematic way of reviewing and

assessing the performance of an employee during a given period of time and

planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the

employee. It helps to analyze his achievements and evaluate his contribution

towards the achievements of the overall organizational goals.

 By focusing the attention on performance, performance appraisal goes to the

heart of personnel management and reflects the management's interest in the

progress of the employees.

 NEEDFORTHESTUDY:

1. Theneedoftheperformanceappraisalistodeterminewhataspectsofperformancea

re requiredto beevaluated.

2. To identify those who are performing their assigned task well and those who

arenot and thereasonfor suchperformance.

3. To provide information about the performance ranks basing on which

decisionsregardedsalaryfixation,conformation,promotion,demotionandtransfe

raretaken.

4. Toprovidefeedbackinformationaboutthelevelofachievementsandbehaviorofan

employee.

5. Toprovideinformationandcounseltheemployee.

6. Tocompareactualperformancewiththestandardsandinoutdeviations(positivean

d negative)

7. Tocreateandmaintainsatisfactorylevelofperformance.

8. Topreventgrievanceandindisciplinaryactivity.

9. Tofacilitatefairandequitablecompensation.

10. Toensureorganizationaleffectiveness.

11. Itguarantees usefulinformationaboutemployeesandthenatureoftheirduties.

 SCOPE OF THE STUDY

1. In the present study aattempt has been made to know the actual

2. implementation of performance appraisal techniques in general and some

other aspect such as awareness of the workers ,effectiveness of the

performance appraisal system in particular.

3. Human resource projections are valid on appraisals. By improving job

skills,theemployeeshavelotofscopefordevelopmentandpreparethemselvesforh

igherresponsibilities.

4. Athoroughanalysisoftheperformanceappraisalsystemwillhelpthemanagement

to know the short comings, if any. It also help the company in

knowingwhether the performance appraisal techniques are used to full extent

or not, there by

theresearchercanunderstandtheeffectiveimplementoftheperformanceappraisal

system.
 OBJECTIVES OF THE STUDY

1. The objectiveisto know howeffectiveistheexecutionofappraisalsystem

In HONDA PVT LTD, Rajahmundry.

2. The aim of most performance appraisal programming is to encourage

theemployees to set his own objective for the next time period following the

review of his pastperformance. It enables the management to make effective

decisions/ to modify earlierdecisionsbasedon the evaluationoftheexisting

plans,

informationsystem,jobanalysis,andinternalandexternalenvironmentfactorsinfl

uencingemployeeperformance.

3. The objectives is to identify the common goals of the organization,

defineeach individuals major areas of responsibility in terms results expected

of him, review theindividualperformance progress

inajobandhispotentialforfutureimprovement.Itaimsat providing data

to managers with whom they may judge future job assignments

andcompensation.

4. Toestablishanobjectivebasisfrothedifferentlevelsofperformanceandtoidentify

executiveswith potential to grow intheorganization.

5. Tocounseltheemployeesappropriatelyregardingtheirstrengthsandweaknesses

and asses in developing them to realize they are full potential in line with

thecompany’s objectives and goals. Always emphasize that the role of a

manager is to offerconstructivesupport and not condemn. Give the

 employees many opportunities to askguidance toair grievancesanddiscuss

anxieties

METHODOLOGYOF THE STUDY:

Theresearchmethodologyisasystematicwaytosolvetheproblemanditisanimportant

component of thestudy without whichresearchermay not be ableto obtainthe facts

andfigures fromtheemployees.

1. Any discipline whether small or serious will generally been noticed by the line

supervisory. It can be either behavior in discipline or violation of production

norms

2. A communication to that effect will be written in the prescribed proforma by the

true supervisor where he will narrate the incident of the/nature of the indiscipline,

the worker is indulged, in a send to the head of the department. The head of the

department then goes through the complaint and conducts the preliminary enquiry.

3. He writes his comments over the seriousness of the indiscipline and his name is

sent to the two general managers. The head of the department will not comment

over the proposed action of the punishment.

SOURCE OFDATA:

Thestudyisbasedonprimaryaswellassecondarydatacollectedfromdifferent

sources:

PrimaryData:
 The primary data is collected with the help of questionnaires, which

consistsof twenty questions each. The questionnaires are chosen because of its

simplicity andliability. Researcher can expect straight answers to the questions. The

respondents areinformed about thesignificantofthestudyand requestedto givetheir

fair opinions.

SecondaryData:

Secondary data is collected through the documents provided by the

personneldepartment.Thedocumentsinclude personnelmnuals,

books,eports,journal, etc.

Research design:

Research design is a plan of action that guides the entire research.

There are four types of research design available. They are:

1. Exploratory Research Design

2. Descriptive Research Design

3. Diagnostic Research Design

4. Experimental Research Design

In this study Descriptive Research Design has been adopted. Sampling

Procedure is frequently used in marketing research projects as opposed to

conducting senses because sampling can reduce the amount of time and money.

The steps should be included in developing a sampling plan is:

1. Define the sampling target application

2. Select data collection method

3. Identify sampling time needed

4. Select appropriate sampling method

5. Determine the samples sizes

Sampling method indicates how the sampling units are selected. There are two

methods of sampling

a. Probability

b. non-Probability

Probability sampling method is a deterministic method where the sample

size is known.

Periodofthe study:

SincesomanyyearsPHOENIXMOTORSPVTLTDHyderabad has been following the

same procedure of appraisals for their executives andemployees and for the study

of my project last on-year data has collected on performanceappraisals.

PLANOFTHE STUDYCHAPTERIZATIONS:

 Toshedlightonintroductiononsubjectbackgroundofstudy

 Theprofile ofthecompany

 Presentframeworkregardingresearchdesign ofthestudy

 ExploreperformanceappraisalprocessinR K

HONDAPVTLTD.,Rajahmundry.
  Examindata,analysisandinterpretation

 Highlightsummaryoffindingsandconclusions

 Offersuggestionsandrecommendations

LIMITATIONS OF THE STUDY

Following are the few constraints faced during the study

 The size of the sample representing the universe is small.

 One of the most limiting factors for a thorough and complete study of the

subject has been the insufficient duration of the study as the Refinery

authorities have consented to allow very limited duration for the study,

thus an elaborate study was not possible.

 The response may have been affected by individual and organizational

culture.

 The availability and reliability of secondary information is perhaps a major

limitation.

 Duration of the project is very less. Thus, data gathering from every

department became a difficult task. Moreover, access to different

departments and all categories of employees is not allowed.

 Better motivation and increased morale associated with promoting own

employees re lost to the organization.

 As the employees of the organization are busy with their work schedules, it

was difficult to collect data uninterruptedly.

 INDUSTRY PROFILE
Toyota Motor Corporation (Japanese: トヨタ自動車株式会社, Hepburn: Toyota
Jidōsha kabushikigaisha, IPA: [toꜜjota], English: /tɔɪˈjoʊtə/, commonly known as
simply Toyota) is a Japanese multinational automotive manufacturer headquartered
in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated
on August 28, 1937. Toyota is one of the largest automobile manufacturers in the
world, producing about 10 million vehicles per year.
The company was originally founded as a spinoff of Toyota Industries, a machine
maker started by Sakichi Toyoda, Kiichiro's father. Both companies are now part of
the Toyota Group, one of the largest conglomerates in the world. While still a
department of Toyota Industries, the company developed its first product, the Type
A engine in 1934 and its first passenger car in 1936, the Toyota AA.
After World War II, Toyota benefited from Japan's alliance with the United States to
learn from American automakers and other companies, which would give rise to The
Toyota Way (a management philosophy) and the Toyota Production System (a lean
manufacturing practice) that would transform the small company into a leader in the
industry and would be the subject of many academic studies.
In the 1960s, Toyota took advantage of a rapidly growing Japanese economy to sell
cars to a growing middle-class, leading to the development of the Toyota Corolla,
which would go on to become the world’s all-time best-selling automobile. The
booming economy also funded an international expansion that would allow Toyota
to grow into one of the largest automakers in the world, the largest company in
Japan and the ninth-largest company in the world by revenue, as of December 2020.
Toyota was the world's first automobile manufacturer to produce more than 10
million vehicles per year, a record set in 2012, when it also reported the production
of its 200 millionth vehicle.
Toyota was praised for being a leader in the development and sales of more fuel
efficient hybrid electric vehicles, starting with the introduction of the Toyota
Prius in 1997. The company now sells more than 40 hybrid vehicle models around
the world. However, more recently, the company has also been accused
of greenwashing for its skepticism of all-electric vehicles and its focus on the
development of hydrogen fuel cell vehicles, like the Toyota Mirai, a technology that
is costlier and has fallen far behind electric batteries.
Toyota Motor Corporation produces vehicles under five
brands: Daihatsu, Hino, Lexus, Ranz and the namesake Toyota. The company also
holds a 20% stake in Subaru Corporation, a 5.1% stake in Mazda, a 4.9% stake
in Suzuki, a 4.6% stake in Isuzu, a 3.8% stake in Yamaha Motor Corporation, and a
2.8% stake in Panasonic, as well as stakes in vehicle manufacturing joint-ventures in
China (GAC Toyota and FAW Toyota), the Czech Republic (TPCA), India (Toyota
Kirloskar) and the United States (MTMUS).
Toyota is listed on the London Stock Exchange, Nagoya Stock Exchange, New
York Stock Exchange and on the Tokyo Stock Exchange, where its stock is a
component of the Nikkei 225 and TOPIX Core30 indices.
History[edit]
Main article: History of Toyota
1920s–1930s[edit]

The mass-produced Toyoda automated loom, displayed at Toyota Museum in Aichi-

gun, Japan
In 1924, Sakichi Toyoda invented the Toyoda Model G Automatic Loom. The
principle of jidoka, which means the machine stops itself when a problem occurs,
became later a part of the Toyota Production System. Looms were built on a
small production line. In 1929, the patent for the automatic loom was sold to the
British company Platt Brothers,[3] generating the starting capital for automobile
development.[4]
Under the direction of the founder's son, Kiichiro Toyoda,[5][6]Toyoda Automatic
Loom Works established an Automobile Division on September 1, 1933, and
formally declared its intention to begin manufacturing automobiles on January 29,
1934.[5] A prototype Toyota Type A engine was completed on September 25, 1934,
with the company's first prototype sedan, the A1 , completed the following May. As
Kiichiro had limited experience with automobile production, he initially focused
on truck production; the company's first truck, the G1, was completed on August
25, 1935, and debuted on November 21 in Tokyo , becoming the company's
first production model .[5][7]  Modeled on a period Ford truck, the G1 sold for
¥2,900, ¥200 cheaper than the Ford truck. A total of 379 G1 trucks were
ultimately produced.[7]
In April 1936, Toyoda's first passenger car, the Model AA, was completed. The
sales price was ¥3,350, ¥400 cheaper than Ford  or GM cars.[8] The company's
plant at Kariya was completed in May. In July, the company filled its first
export order, with four G1 trucks exported to northeastern China . [5]  On
September 19, 1936, the Japanese imperial government officially designated
Toyota Automatic Loom Works as an automotive manufacturer.[5]
The 1936 Toyota AA, the first vehicle produced by the company while it was still a
department of Toyota Industries
Vehicles were originally sold under the name "Toyoda" (トヨダ), from the family
name of the company's founder, Kiichirō Toyoda. In September 1936, the company
ran a public competition to design a new logo. Of 27,000 entries, the winning entry
was the three Japanese katakana letters for "Toyoda" in a circle. However, Rizaburo
Toyoda, who had married into the family and was not born with that name, preferred
"Toyota" (トヨタ) because it took eight brush strokes (a lucky number) to write in
Japanese, was visually simpler (leaving off the diacritic at the end), and with
a voiceless consonant instead of a voiced one (voiced consonants are considered to
have a "murky" or "muddy" sound compared to voiceless consonants, which are
"clear").
Since toyoda literally means "fertile rice paddies", changing the name also prevented
the company from being associated with old-fashioned farming. The newly formed
word was trademarked and the company was registered on August 28, 1937 as the
Toyota Motor Company Ltd.[5][9][10][11] Kiichiro's brother-in-law Rizaburo
Toyoda was appointed the firm's first president, with Kiichiro as vice-president.
Toyota Automatic Loom Works formally transferred automobile manufacturing to
the new entity on September 29.[5]
The Japanese government supported the company by preventing foreign
competitors Ford and General Motors from importing automobiles into Japan.[12]
1940s[edit]
Japan was heavily damaged in World War II and Toyota's plants, which were used
for the war effort, were not spared. On 14 August 1945, one day before the surrender
of Japan, Toyota's Koromo Plant was bombed by the Allied forces.[13] After the
surrender, the U.S.-led occupying forces banned passenger car production in Japan.
However, automakers like Toyota were allowed to begin building trucks for civilian
use, in an effort to rebuild the nation's infrastructure.[14] The U.S. military also
contracted with Toyota to repair its vehicles.[15]
By 1947, there was an emerging global Cold War between the Soviet Union and the
U.S., who had been allies in World War II. U.S. priorities shifted (the "Reverse
Course") from punishing and reforming Japan to ensuring internal political stability,
rebuilding the economy, and, to an extent, remilitarizing Japan. Under these new
policies, in 1949, Japanese automakers were allowed to resume passenger car
production, but at the same time, a new economic stabilization program to control
inflation plunged the automotive industry into a serious shortage of funds, while
many truck owners defaulted on their loans.[16] Ultimately, the Bank of Japan,
the central bank of the country, bailed out the company, with demands that the
company institute reforms.[17]
1950s[edit]
As the 1950s began, Toyota emerged from its financial crisis a smaller company,
closing factories and laying off workers. At about the same time, the Korean
War broke out, and being located so close to the battlefront, the U.S. Army placed
an order for 1,000 trucks from Toyota. The order helped to rapidly improve the
struggling company's business performance.[18] In 1950, company executives,
including Kiichiro's cousin Eiji Toyoda, took a trip to the United States where they
trained at the Ford Motor Company and observed the operations of dozens of U.S.
manufacturers.[19] The knowledge they gained during the trip, along with what the
company learned making looms, would give rise to The Toyota Way (a management
philosophy) and the Toyota Production System (a lean manufacturing practice) that
would transform the company into a leader in the manufacturing industry.[20]

Toyopet Crown, the first vehicle fully designed and built by Toyota
Toyota started developing its first full-fledged passenger car, the Toyopet Crown, in
January 1952. Prior to the Crown, Toyota had been outsourcing the design and
manufacturing of auto bodies, which were then mounted on truck frames made by
Toyota.[21] The project was a major test for Toyota, who would need to build bodies
and develop a new chassis that would be comfortable, but still stand up to the
muddy, slow, unpaved roads common in Japan at the time.[21] The project had been
championed for many years by founder Kiichiro Toyoda, who died suddenly on
March 27, 1952. The first prototypes were completed in June 1953 and began
extensive testing, before the Crown went on sale in August 1955.[22] The car was met
with positive reviews from around the world.
After the introduction of the Crown, Toyota began aggressively expanding into the
export market. Toyota began shipping Land Cruiser knock-down kits to Latin
America in November 1955,[23] sending complete Land Cruisers to Burma
(now Myanmar) and the Philippines in 1956 as part of war reparations provided by
the Japanese government,[24] establishing a branch in Thailand in June 1957,[25] and
shipping Land Cruisers to Australia in August 1957.[24] Toyota established a
production facility in Brazil in 1958, the company's first outside of Japan.[26]
Toyota entered the United States market in July 1958, attempting to sell the Toyopet
Crown. The company faced problems almost immediately, the Crown was a flop in
the U.S. with buyers finding it overpriced and underpowered (because it was
designed for the bad roads of Japan, not high-speed performance). In response,
exports of the Crown to the United States were suspended in December 1960.[27]
After Kiichiro's death, his cousin Eiji Toyoda would later become the leader of the
company. Eiji helped establish the company's first plant independent from the Loom
Works plant.[28] He would go on to lead the company for the next two decades.
1960s–1980s[edit]
Toyota 2000GT (1967–1969)
At the start of the 1960s, the Japanese economy was booming, a period that came to
be known as the Japanese economic miracle. As the economy grew, so did the
income of everyday people, who now could afford to purchase a vehicle. At the
same time, the Japanese government heavily invested in improving road
infrastructure.[29] To take advantage of the moment, Toyota and other automakers
started offering affordable economy cars like the Toyota Corolla, which would go
on to become the world’s all-time best-selling automobile.[30][31]
Toyota also found success in the United States in 1965 with the Toyota
Corona compact car, which was redesigned specifically for the American market
with a more powerful engine. The Corona helped increase U.S. sales of Toyota
vehicles to more than 20,000 units in 1966 (a threefold increase) and helped the
company become the third-best-selling import brand in the United States by 1967.
Toyota’s first manufacturing investment in the United States came in 1972 when the
company struck a deal with Atlas Fabricators, to produce truck beds in Long Beach,
in an effort to avoid the 25% "chicken tax" on imported light trucks. By importing
the truck as an incomplete chassis cab (the truck without a bed), the vehicle only
faced a 4% tariff.[32] Once in the United States, Atlas would build the truck beds and
attach them to the trucks. The partnership was successful and two years later, Toyota
purchased Atlas.[33]
The energy crisis of the 1970s was a major turning point in the American auto
industry. Before the crisis, large and heavy vehicles with powerful but inefficient
engines were common. But in the years after, consumers started demanding high-
quality and fuel-efficient small cars. Domestic automakers, in the midst of
their malaise era, struggled to build these cars profitably, but foreign automakers
like Toyota were well positioned. This, along with growing anti-Japanese sentiment,
prompted the U.S. Congress to consider import restrictions to protect the domestic
auto industry.
The 1960s also saw the slight opening of the Japanese auto market to foreign
companies. In an effort to strengthen Japan's auto industry ahead of the market
opening, Toyota purchased stakes in other Japanese automakers. That included a
stake in Hino Motors, a manufacturer of large commercial trucks, buses and diesel
engines, along with a 16.8 percent stake in Daihatsu, a manufacturer of kei cars, the
smallest highway-legal passenger vehicles sold in Japan.[34] That would begin what
would become a long-standing partnership between Toyota and the two companies.
As part of the partnership, Daihatsu would supply kei cars for Toyota to sell and to a
lesser extent Toyota would supply full-sized cars for Daihatsu to sell (a process
known as rebadging), allowing both companies to sell a full line-up of vehicles.
1980s[edit]

By the 1980s, the Toyota Corolla was one of the most popular cars in the world and
would go on to become the world’s all-time best-selling automobile
After the successes of the 1970s, and the threats of import restrictions, Toyota
started making additional investments in the North American market in the 1980s. In
1981, Japan agreed to voluntary export restraints, which limited the number of
vehicles the nation would send to the United States each year, leading Toyota to
establish assembly plants in North America. The U.S. government also closed the
loophole that allowed Toyota to pay lower taxes by building truck beds in America.
Also in 1981, Eiji Toyoda stepped down as president and assumed the title of
chairman. He was succeeded as president by Shoichiro Toyoda, the son of the
company's founder.[28] Within months, Shoichiro started to merge Toyota's sales and
production organizations, and in 1982 the combined companies became the Toyota
Motor Corporation. The two groups were described as "oil and water" and it took
years of leadership from Shoichiro to successfully combine them into one
organization.[35]
Efforts to open a Toyota assembly plant in the United States started in 1980, with
the company proposing a joint-venture with the Ford Motor Company. Those talks
broke down in July 1981.[36] Eventually in 1984, the company struck a deal
with General Motors (GM) to establish a joint-venture vehicle manufacturing plant
called NUMMI (New United Motor Manufacturing, Inc.) in Fremont, California.
[37]
 GM saw the joint venture as a way to get access to a quality small car and an
opportunity to learn about The Toyota Way and the Toyota Production System. For
Toyota, the factory gave the company its first manufacturing base in North America
allowing it to avoid any future tariffs on imported vehicles and saw GM as a partner
who could show them how to navigate the American labor environment. The plant
would be led by Tatsuro Toyoda, the younger brother of company president
Shoichiro Toyoda.[38] The first Toyota assembled in America, a white Corolla, rolled
off the line at NUMMI on October 7, 1986.[39]
Toyota received its first Japanese Quality Control Award at the start of the 1980s
and began participating in a wide variety of motorsports. Conservative Toyota held
on to rear-wheel-drive designs for longer than most; while a clear first in overall
production they were only third in production of front-wheel-drive cars in 1983,
behind Nissan and Honda. In part due to this, Nissan's Sunny managed to squeeze
by the Corolla in numbers built that year.[40]
The Lexus LS 400 went on sale in May 1989 and was seen as being largely
responsible for the successful launch of Lexus
Before the decade was out, Toyota introduced Lexus, a new division that was
formed to market and service luxury vehicles in international markets. Prior to the
debut of Lexus, Toyota's two existing flagship models, the Crown and Century, both
catered exclusively for the Japanese market and had little global appeal that could
compete with international luxury brands such as Mercedes-Benz, BMW and Jaguar.
The company had been developing the brand and vehicles in secret since August
1983, at a cost of over US$1 billion.[41][42] The LS 400 flagship full-size sedan
debuted in 1989 to strong sales, and was largely responsible for the successful
launch of the Lexus marque.
1990s[edit]

The Toyota Supra (JZA80) is one of the most recognized Japanese sports cars

Toyota Prius, first generation (NHW10 1997–2000)

In the 1990s, Toyota began to branch out from producing mostly compact cars by
adding many larger and more luxurious vehicles to its lineup, including a full-sized
pickup, the T100 (and later the Tundra), several lines of SUVs, a sport version of
the Camry, known as the Camry Solara. They would also launch newer iterations of
their sports cars, namely the MR2, Celica, and Supra during this era.
December 1997 saw the introduction of the first-generation Toyota Prius, the first
mass-produced gasoline-electric hybrid car.[43] The vehicle would be produced
exclusively for the Japanese market for the first two years.
With a major presence in Europe, due to the success of Toyota Team Europe in
racing, the corporation decided to set up Toyota Motor Europe Marketing and
Engineering, TMME, to help market vehicles in the continent. Two years later,
Toyota set up a base in the United Kingdom, TMUK, as the company's cars had
become very popular among British drivers. Bases in Indiana, Virginia,
and Tianjin were also set up.
Toyota also increased its ownership of Daihatsu during this period. In 1995, Toyota
increased its shareholding in the company to 33.4 percent, giving Toyota the ability
to veto shareholder resolutions at the annual meeting.[34] In 1998, Toyota increased
its holding in the company to 51.2 percent, becoming the majority shareholder.[44]
On September 29, 1999, the company decided to list itself on the New
York and London Stock Exchanges.
The later half of the 1990s would also see the Toyoda brothers step back from the
company their father had founded. In 1992, Shoichiro Toyoda would shift to
become chairman, allowing his brother Tatsuro to become president, a job he held
until his retirement in 1995.[38] Shoichiro would step down as Chairman in 1999.
Both would retain honorary advisory roles in the company. Hiroshi Okuda would
lead the company as President from 1995 until 1999 when he became Chairman and
the President's office would be filled by Fujio Cho.
2000s[edit]
In 2001, Toyo Trust and Banking, which was part of the Toyota Motor Corporation,
merged with Sanwa Bank and Tokai Bank to form UFJ Bank (United Financial of
Japan Bank). UFJ was one of the largest shareholders of Toyota and the Chairman
of Toyota was a director on the UFJ board. The bank would later be accused by
Japan's government of corruption, making bad loans to alleged Yakuza crime
syndicates, and blocking Financial Service Agency inspections.[45] After the scandal
broke, three UFJ executives were indicted and the bank was listed among Fortune
Magazine's largest money-losing corporations in the world.[46] On October 1, 2005
the beleaguered bank merged with the Mitsubishi Tokyo Financial Group to form
the Mitsubishi UFJ Financial Group.
In August 2000, exports began of the Prius.[43] In 2001, Toyota acquired its long time
partner, truck and bus manufacturer Hino Motors. In 2002, Toyota entered Formula
One competition and established a manufacturing joint venture in France with
French automakers Citroën and Peugeot. A youth-oriented marque for North
America, Scion, was introduced in 2003. Toyota ranked eighth on Forbes 2000 list
of the world's leading companies for the year 2005.[47] Also in 2005, Fujio Cho
would shift to become chairman of Toyota and would be replaced as president
by Katsuaki Watanabe.
In 2007, Toyota released an update of its full-sized truck, the Tundra, produced in
two American factories, one in Texas and one in Indiana. Motor Trend named the
Tundra "Truck of the Year", and the 2007 Toyota Camry "Car of the Year" for 2007.
It also began the construction of two new factories, one in Woodstock, Ontario,
Canada, and the other in Blue Springs, Mississippi, USA.
The company was number one in global automobile sales for the first quarter of
2008.[48]
Toyota was hit by the global financial crisis of 2008 as it was forced in December
2008 to forecast its first annual loss in 70 years.[49] In January 2009, it announced the
closure of all of its Japanese plants for 11 days to reduce output and stocks of unsold
vehicles.[50]
Between 2009 and 2011, Toyota conducted recalls of millions of vehicles after
reports that several drivers experienced unintended acceleration. The recalls were to
prevent a front driver's side floor mat from sliding into the foot pedal well, causing
the pedals to become trapped and to correct the possible mechanical sticking of
the accelerator pedal.[51] At least 37 were killed in crashes allegedly related to
unintended acceleration,[52] approximately 9 million cars and trucks were recalled,
[53]
 Toyota was sued for personal injuries and wrongful deaths,[54] paid US$1
billion to settle a class action lawsuit to compensate owners for lost resale value,
[55]
 and paid a US$1.2 billion criminal penalty to the United States government over
accusations that it had intentionally hid information about safety defects and had
made deceptive statements to protect its brand image.[56]

Akio Toyoda, was named President of Toyota in 2009, pictured in 2011

Amid the unintended acceleration scandal, Katsuaki Watanabe stepped down as
company president. He was replaced by Akio Toyoda, grandson of company
founder Kiichiro Toyoda, on June 23, 2009. Akio had been with Toyota since 1984,
working jobs in production, marketing and product development, and took a seat on
the board of directors in 2000.[57] Akio's promotion by the board marked the return
of a member of the Toyoda family to the top leadership role for the first time since
1999.[58]
2010s[edit]
In 2011, Toyota, along with large parts of the Japanese automotive industry,
suffered from a series of natural disasters. The 2011 Tōhoku earthquake and
tsunami led to a severe disruption of the supplier base and a drop in production and
exports.[59][60] Severe flooding during the 2011 monsoon season in Thailand affected
Japanese automakers that had chosen Thailand as a production base. Toyota is
estimated to have lost production of 150,000 units to the tsunami and production of
240,000 units to the floods.
On February 10, 2014, it was announced that Toyota would cease manufacturing
vehicles and engines in Australia by the end of 2017.[61][62] The decision was based
on the unfavourable Australian dollar making exports not viable, the high cost of
local manufacture, and the high amount of competition in a relatively small local
market.[62] The company planned to consolidate its corporate functions in Melbourne
by the end of 2017, and retain its Altona plant for other functions. The workforce is
expected to be reduced from 3,900 to 1,300.[63] Both Ford Motor
Company and General Motors (Holden) followed suit, ending Australian production
in 2016 and 2017 respectively.
The automaker narrowly topped global sales for the first half of 2014, selling 5.1
million vehicles in the six months ending June 30, 2014, an increase of 3.8% on the
same period the previous year. Volkswagen AG, which recorded sales of 5.07
million vehicles, was close behind.[64]
In August 2014, Toyota announced it would be cutting its spare-parts prices in
China by up to 35%. The company admitted the move was in response to a probe
foreshadowed earlier in the month by China's National Development and Reform
Commission of Toyota's Lexus spare-parts policies, as part of an industry-wide
investigation into what the Chinese regulator considers exorbitantly high prices
being charged by automakers for spare parts and after-sales servicing.[65]
In November 2015, the company announced that it would invest US$1 billion over
the next 5 years into artificial intelligence and robotics research.[66] In 2016, Toyota
invested in Uber.[67] In 2020, a corporate governance report showed that Toyota
owns 10.25 million shares of Uber, which was valued at $292.46 million as of
March 30, 2020. According to Reuters, this was roughly 0.6 per cent of Uber's
outstanding shares.[68]
In March 2016, Toyota partnered with Yanmar to create a fiberglass pleasure boat
using Yanmar outboard marine diesel engines or Toyota inboard engines.[69]
In August 2016, the company purchased all remaining assets of Daihatsu, making
the manufacturer of small cars a wholly owned subsidiary of Toyota.[70]
On August 27, 2018, Toyota announced an investment of US$500
million in Uber's autonomous cars.[71]
2020s[edit]
By 2020, Toyota reclaimed its position as the largest automaker in the world,
surpassing Volkswagen.[72] It sold 9.528 million vehicles globally despite an 11.3%
drop in sales due to the COVID-19 pandemic.[72] This includes
subsidiaries Daihatsu and Hino Motors.[72][73]
On April 2, 2020, BYD and Toyota announced a new joint venture between the two
companies called BYD Toyota EV Technology Co., Ltd., with the aim of
"developing BEVs (Battery Electric Vehicles) that appeal to customers."[74]
In March 2021, Toyota, its subsidiary Hino, and Isuzu announced the creation of a
strategic partnership between the three companies. Toyota acquired a 4.6% stake in
Isuzu while the latter plans to acquire Toyota shares for an equivalent value. The
three companies said they would form a new joint venture by April called
Commercial Japan Partnership Technologies Corporation with the aim of
developing fuel cell and electric light trucks. Toyota would own an 80% stake in the
venture while Hino and Isuzu would own 10% each.[75]
In April 2021, Toyota said that it will buy Lyft's self-driving technology unit for
$550 million and merge it with its newly created Woven Planet Holdings automation
division.[76]
In June 2021, the company defended its donations to United
States Republican lawmakers after they voted against certifying the results of
the 2020 presidential election, saying it did not believe it was "appropriate to judge
members of Congress" for that one vote.[77] A report by Axios found that Toyota was
the top donor to 2020 election objectors, by a substantial margin.[78] The company
then reversed course in July 2021 and ceased donations to election objectors,
releasing a statement saying it understood that its PAC's donations to those
objectors, which far outpaced those of any other company, "troubled some
stakeholders."[79]
Toyota will increase its software engineer intake to around 40% to 50% of all
technical hires from the second quarter of 2022, the move plans to address a
transformation to so-called CASE — connected, autonomous, shared and electric —
technologies in an environment of intensifying global competition.[80]
In 2021, Toyota told some of its suppliers to increase their semiconductor inventory
levels from the conventional three months to five months in response to the COVID-
19 chip shortage.[81] The "just-in-time" supply chain in which parts are only
delivered when necessary, had already been revised after the March 11, 2011
earthquake and tsunami in Japan, lifting inventories across the entire procurement
network.[81] The time it takes Toyota to turn over its inventory increased by around
40% during the past ten years, to 36.36 days as of March 2021.[81]

Senior leadership[edit]

 Chairman: Takeshi Uchiyamada (2013–present)
 President: Akio Toyoda (2009–present)
List of former chairmen[edit]

1. Rizaburo Toyoda (1937–1941)
2. Kiichiro Toyoda (1941–1950)
3. Taizo Ishida (1950–1961)
4. Fukio Nakagawa (1961–1967)
5. Eiji Toyoda (1967–1994)
6. Shoichiro Toyoda (1994–1999)
7. Hiroshi Okuda (1999–2006)
8. Fujio Cho (2006–2013)
List of former presidents[edit]

1. Shoichiro Toyoda (1982–1992)
2. Tatsuro Toyoda (1992–1995)
3. Hiroshi Okuda (1995–1999)
4. Fujio Cho (1999–2005)
5. Katsuaki Watanabe (2005–2009)

Product line[edit]
Further information: List of Toyota vehicles
As of 2009, Toyota officially lists approximately 70 different models sold under its
namesake brand, including sedans, coupes, vans, trucks, hybrids, and crossovers.
[82]
 Many of these models are produced as passenger sedans, which range from the
subcompact Toyota Yaris, compact Corolla, to mid-size Camry and full-
size Avalon.[82] Minivans include the Innova, Alphard/Vellfire, Sienna, and others.
[82]
 Several small cars, such as the xB and tC, were sold under the Scion brand.[82]
SUVs and crossovers[edit]

Toyota C-HR

Toyota RAV4
Toyota SUV and crossover line-up grew quickly in the late 2010s to 2020s due to
the market shift to SUVs. Toyota crossovers range from the subcompact Yaris
Cross and CH-R, compact Corolla Cross and RAV4, to
midsize Harrier/Venza and Kluger/Highlander.[82] Other crossovers include the
Raize, Urban Cruiser.[83] Toyota SUVs range from the midsize Fortuner to full-
size Land Cruiser.[82] Other SUVs include the Rush, Prado, FJ Cruiser, 4Runner,
and Sequoia.[82]
Pickup trucks[edit]

Toyota Hilux (global)

Toyota Tacoma (US/Canada)

Toyota first entered the pickup truck market in 1947 with the SB that was only sold
in Japan and limited Asian markets. It was followed in 1954 by the RK (renamed in
1959 as the Stout) and in 1968 by the compact Hilux. With continued refinement,
the Hilux (simply known as the Pickup in some markets) became famous for being
extremely durable and reliable.[84] Extended cab and crew cab versions were
eventually added, and Toyota continues to produce them today under various names
depending on the market in various cab lengths, with gasoline or diesel engines, and
2WD and 4WD versions.
In North America, the Hilux became a major model for the company, leading the
company to launch the Tacoma in 1995.[85] The Tacoma was based on the Hilux, but
with a design intended to better suit the needs of North American consumers who
often use pickup trucks as personal vehicles. The design was a success and the
Tacoma became the best-selling compact pickup in North America.
After the success of its compact Hilux pickups in North America, Toyota decided to
enter the full-size pickup market, which was traditionally dominated by domestic
automakers. The company introduced the T100 for the 1993 US model year. The
T100 had a full-size 8-foot (2.4 m) long bed, but suspension and engine
characteristics were similar to that of a compact pickup. Sales were disappointing
and the T100 was criticized for having a small V6 engine (especially compared to
the V8 engines common in American full-size trucks), lacking an extended-cab
version, being too small, and too expensive (because of the 25% tariff on imported
trucks).[86] In 1995, Toyota added the more powerful V6 engine from the new
Tacoma to the T100 and also added an extended cab version.[86] In 1999, Toyota
replaced the T100 with the larger Tundra, which would be built in the US with a V8
engine and styling that more closely matched other American full-size trucks.[87]
Luxury vehicles[edit]
See also: Lexus

Toyota Crown RS (Fifteenth generation, S220; 2018)

In the Japanese home market, Toyota has two flagship models: the Crown premium
sedan and the Century limousine.
In the 1980s, Toyota wanted to expand its luxury car offerings but realized that
existing Japanese-market flagship models had little global appeal and could not
compete with established brands such as Mercedes-Benz, BMW and Jaguar or the
Acura and Infiniti marquees being launched by Japanese competitors.
Before the decade was out, Toyota introduced Lexus, a new division that was
formed to market and service luxury vehicles in markets outside of Japan. The
company developed the brand and its vehicles in secret since August 1983, at a cost
of over US$1 billion.[41][42] The Lexus LS flagship full-size sedan debuted in 1989 to
strong sales, and was largely responsible for the successful launch of the Lexus
marque. Subsequently, the division
added sedan, coupé, convertible and SUV models.
The Lexus brand was introduced to the Japanese market in 2005, previously all
vehicles marketed internationally as Lexus from 1989 to 2005 were released in
Japan under the Toyota marque.
Buses[edit]
The Toyota Coaster is a minibus introduced in 1969 that seats 17 passengers. The
Coaster is widely used in Japan, Singapore, Hong Kong, and Australia, but also in
the developing world for minibus operators in Africa, the Middle East, South Asia,
the Caribbean, and South America to operate as public transportation.

Technology[edit]
Hybrid electric vehicles[edit]
Main articles: Hybrid Synergy Drive, Hybrid electric vehicle, and Toyota Prius

The Toyota Prius, flagship of Toyota's hybrid technology, is the world's best-selling

hybrid car
Toyota is the world's leader in sales of hybrid electric vehicles, one of the largest
companies to encourage the mass-market adoption of hybrid vehicles across the
globe, and the first to commercially mass-produce and sell such vehicles, with the
introduction of the Toyota Prius in 1997.[88][89] The company's series
hybrid technology is called Hybrid Synergy Drive, and it was later applied to many
vehicles in Toyota's product lineup, starting first with the Camry and the technology
was also brought to the luxury Lexus division.
As of January 2020, Toyota Motor Corporation sells 44 Toyota and Lexus hybrid
passenger car models in over 90 countries and regions around the world, and the
carmaker has sold over 15 million hybrid vehicles since 1997.[90] The Prius family is
the world's top-selling hybrid gasoline-electric vehicle nameplate with almost 4
million units sold worldwide as of January 2017.[90]
Besides the Prius, Toyota's current hybrid lineup includes
the Alphard/Vellfire/Crown
Vellfire, Avalon, Aqua, Camry, C-HR/IZOA, Corolla/Levin, Corolla
Cross/Frontlander, Crown, Harrier/Venza, Highlander/Kluger/Crown
Kluger, Noah/Voxy, Raize, RAV4/Wildlander, Sequoia, Sienna, Sienta, Tundra, Yar
is and Yaris Cross. The Lexus current hybrid lineup consists of
the ES, IS, LC, LM, LS, NX, RC, RX, and UX.
Plug-in hybrids[edit]
Main articles: Toyota Prius Plug-in Hybrid and Toyota RAV4 Prime
Second-generation Toyota Prius Plug-in Hybrid
The Prius Plug-In Hybrid Concept was exhibited in late 2009, and shortly after, a
global demonstration program involving 600 pre-production test cars began. The
vehicles were leased to fleet and government customers, and were equipped with
data tracking devices to allow Toyota to monitor the car's performance. The vehicle
was based on the third-generation Toyota Prius and outfitted with two
additional lithium-ion batteries beyond the normal hybrid battery pack.[91] The
additional batteries were used to operate the car with minimal use of the internal
combustion engine until they are depleted, at which point they are disengaged from
the system. They are not used in tandem with the main hybrid battery pack.
After the conclusion of the demonstration program, the production version of
the Prius Plug-in Hybrid was unveiled in September 2011. The production Prius
Plug-in had a maximum electric-only speed of 100 km/h (62 mph), and the United
States Environmental Protection Agency (EPA) rated the vehicle as having an range
of 18 kilometres (11 mi) in blended mode (mostly electric, but supplemented by the
internal combustion engine).[92] Toyota ultimately only did a small production run
with 75,400 vehicles being produced between 2012 and 2016.[93]
The second-generation Prius Plug-in (renamed the Prius Prime in the US) was
unveiled in early 2016.[94] Unlike the prior generation, where the plug-in battery was
limited by being added to the existing Prius, this model would be developed in
tandem with the fourth-generation Prius, allowing Toyota to increase the range to 40
kilometres (25 mi), with a top speed of 135 km/h (84 mph), without needing the
assistance of the internal combustion engine.[95] The second-generation Prius Plug-in
went on sale starting in late 2016, with Toyota expecting to sell up to 60,000 units
globally per year.[96]
A second plug-in hybrid model, the Toyota RAV4 PHV (RAV4 Prime in the US)
was unveiled in December 2019. The vehicle has an EPA-estimated 68 kilometres
(42 mi) of all-electric range and generates a combined 225 kilowatts (302 hp),
enabling it to be Toyota's second fastest car currently in production (behind the GR
Supra 3.0 sports car).[97] Sales started in mid-2020.
Battery electric vehicles[edit]
Toyota bZ4X
Toyota has been criticized for being slow to add battery electric vehicles to its
lineup. It has been publicly skeptical about battery-electric technology, and has
lobbied against government mandates to transition to zero tailpipe emission
vehicles.[98]
Toyota's first all-electric vehicle was made in response to one of those government
mandates. The company created the first generation Toyota RAV4 EV after
the California Air Resources Board mandated in the late 1990s that every automaker
offer a zero-emissions vehicle.[99][100] A total of 1,484 were leased and/or sold in
California from 1997 to 2003, when the state dropped its mandate under legal
pressure from lawsuits filed by automakers. At the lessees' request, many units were
sold after the vehicle was discontinued.[101]
A second generation of the RAV4 EV was developed in 2010 as part of a deal
with Tesla. The production version was unveiled in August 2012, using battery
pack, electronics and powertrain components from the Tesla Model S.[102] The
RAV4 EV had a limited production run which resulted in just under 3,000 vehicles
being produced, before it was discontinued in 2014.[103][104] According to Bloomberg
News, the partnership between Tesla and Toyota was "marred by clashes between
engineers".[105]
Starting in 2009, Toyota introduced three generations of concept electric vehicles
called the FT-EV built on a modified Toyota iQ platform. In late-2012, the company
announced plans build a production version of the car called the Toyota iQ
EV (Scion iQ EV in the US, Toyota eQ in Japan),[106] but ultimately production was
cut back to 100 cars for special fleet use in Japan and the U.S. only.[107]
In late 2012, Toyota announced that it would back away from fully electric vehicles,
after producing less than 5,000. At the time, the company's vice chairman, Takeshi
Uchiyamada, said: "The current capabilities of electric vehicles do not meet
society's needs, whether it may be the distance the cars can run, or the costs, or how
it takes a long time to charge." Toyota's emphasis would be re-focused on the
hybrids and hydrogen fuel cell vehicles.[107][24] These early electric vehicles are
widely considered as compliance cars, meaning that it is developed to meet
California's zero-emissions standards for automakers.[108]
In April 2019, Toyota introduced the C-HR EV, its first mass-produced pure electric
model in China along with an identical twin called the IZOA EV.[109] It went on sale
in April 2020 and May 2020 respectively. Nikkei reported in October 2020 that
Toyota had only sold less than 2,000 units in the first eight months of the year.[110]
Toyota introduced the C+pod in late 2020, a 2-seater kei car with an estimated range
of 100 kilometres (62 mi) and a top speed of 60 kilometres per hour (37 mph).[111][112]
In April 2021, Toyota revealed the bZ4X, an electric crossover SUV which will be
the first vehicle built on a dedicated electric platform called e-TNGA when it goes
on sale in mid-2022.[113] It is the first model of the bZ ("beyond Zero") series of
battery electric vehicles.[114] The company has also stated that there will be seven
"bZ" models to be launched globally out of 15 BEV models by 2025.[115]
Toyota has been developing solid-state batteries in partnership with Panasonic, in
which the company has more than a thousand patents covering solid-state batteries
by late 2020.[116] The technology has been implemented on the Toyota LQ concept.
Toyota hopes the technology could increase efficiency of battery electric vehicles by
30 percent, which in turn would reduce battery costs by the same amount.[117]
Hydrogen fuel-cell[edit]

The Toyota Mirai fuel-cell vehicle

The Toyota SORA fuel-cell bus

See also: Toyota Mirai
In 2002, Toyota began a development and demonstration program to test the Toyota
FCHV, a hybrid hydrogen fuel cell vehicle based on the Toyota
Highlander production SUV. Toyota also built a FCHV bus based on the Hino Blue
Ribbon City low-floor bus.[118][119] Toyota has built several prototypes/concepts of the
FCHV since 1997, including the Toyota FCHV-1, FCHV-2, FCHV-3, FCHV-4,
and Toyota FCHV-adv. The Toyota FCV-R fuel cell concept car was unveiled at the
2011 Tokyo Motor Show. The FCV-R sedan seats four and has a fuel cell stack
including a 70 MPa high-pressure hydrogen tank, which can deliver a range of
435 mi (700 km) under the Japanese JC08 test cycle. Toyota said the car was
planned for launch in about 2015.[120]
In August 2012, Toyota announced its plans to start retail sales of a hydrogen fuel-
cell sedan in California in 2015. Toyota expects to become a leader in this
technology.[121] The prototype of its first hydrogen fuel cell vehicle will be exhibited
at the November 2013 Tokyo Motor Show, and in the United States at the January
2014 Consumer Electronics Show.[122]
Toyota's first hydrogen fuel-cell vehicles to be sold commercially, the Toyota
Mirai (Japanese for "future"), was unveiled at the November 2014 Los Angeles
Auto Show.[123] In January 2015, it was announced that production of the Mirai fuel
cell vehicle would increase from 700 units in 2015 to approximately 2,000 in 2016
and 3,000 in 2017.[124] Sales in Japan began on December 15, 2014, at a price
of ¥6,700,000 (~US$57,400). The Japanese government plans to support the
commercialization of fuel-cell vehicles with a subsidy of ¥2,000,000 (~US$19,600).
[125]
 Retail sales in the U.S. began in August 2015 at a price of US$57,500 before any
government incentives. Initially, the Mirai will only be available in California.[126]
[127]
 The market release in Europe is slated for September 2015, and initially will be
available only in the UK, Germany, and Denmark, followed by other countries in
2017. Pricing in Germany starts at €60,000 (~US$75,140) plus VAT (€78,540).[128]
In 2015, Toyota released 5,600 patents for free use until 2020, hoping to promote
global development of hydrogen fuel-cell technology.[129][130][131][132]
Autonomous vehicles[edit]

Toyota e-Palette
Toyota is regarded as being behind in smart car technology and in need of
innovation.[133] Although the company Toyota unveiled its first self-driving test
vehicle in 2017, and has been developing its own self-driving technology named
"Chauffeur" (intended for full self-driving) and "Guardian" (a driver assist system),
neither of these has been introduced into any production vehicles.[134]
The company had set up a large research and development operation by 2018,
spending almost US$4 billion to start an autonomous vehicle research institute in
California's Silicon Valley[133] and another ¥300 billion on a similar research institute
in Tokyo that would partner with fellow Toyota Group companies and automotive
suppliers Aisin Seiki and Denso.[135][136]
Toyota has also been collaborating with autonomous vehicle technology developers
and, in some cases, purchasing the companies. Toyota has acquired the autonomous
vehicle division of ride-hailing service Lyft for $550 million,[137] invested a total of
US$1 billion in competing ride-hailing service Uber's self-driving vehicle division,
[138][139]
 invested $400 million in autonomous vehicle technology company Pony.ai,
[140]
 and announced a partnership with Chinese electronics e-commerce
company Cogobuy to build a "Smart Car Ecosystem."[141]
In December 2020 Toyota showcased the 20-passenger "e-Palette" shared
autonomous vehicle, which was used at the 2021 Tokyo Olympic Games.[142]
[143]
 Toyota has announced it intends to have the vehicle available for commercial
applications before 2025.[144]
Since February 2021, Toyota has been building the sensor-laden "Woven City"
which it calls a "175-acre high tech, sensor-laden metropolis" at the foot of Mount
Fuji. When completed in 2024 the Woven City will be used to run tests on
autonomous vehicles for deliveries, transport and mobile shops with the city’s
residents participating in the living laboratory experiment.[145][146]

Motorsports[edit]

The Toyota TS050 Hybrid that won the 2018 24 Hours of Le Mans, preserved with

dirt from the race
Main article: Toyota in motorsport
See also: Toyota Gazoo Racing and Toyota Racing Development
Toyota has been involved in many global motorsports series, providing vehicles,
engines and other auto parts under both the Toyota and Lexus brands.
Toyota Gazoo Racing (GR) is Toyota's performance brand that is used in many of
the world's major motorsports contests. Toyota Gazoo Racing Europe, based
in Cologne, Germany, competes in the FIA World Endurance Championship, while
the Finland-based Toyota Gazoo Racing WRT participates in the World Rally
Championship. Toyota Gazoo Racing South Africa competes in the Dakar Rally.
Between 2002 and 2009, the Toyota Racing team competed in Formula One. Toyota
won the 24 Hours of Le Mans in 2018, 2019 and 2020 with a Toyota TS050 Hybrid,
and in 2021 with a Toyota GR010 Hybrid.
Toyota Racing Development USA (TRD USA) is responsible for participation in
major motorsports contests in the United States including NASCAR, NHRA, Indy
Racing League and Formula Drift.
Toyota also makes engines and other auto parts for other Japanese motorsports
including Super Formula, Super GT, Formula 3, and Toyota Racing Series.

Non-automotive activities[edit]
Aerospace[edit]
Toyota is a minority shareholder in Mitsubishi Aircraft Corporation, having
invested US$67.2 million in the new venture which will produce the Mitsubishi
Regional Jet, slated for first deliveries in 2017.[147] Toyota has also studied
participation in the general aviation market and contracted with Scaled
Composites to produce a proof of concept aircraft, the TAA-1, in 2002.[148][149]
Pleasure boats[edit]
In 1997, building on a previous partnership with Yamaha Marine, Toyota created
"Toyota Marine",[150] building private ownership motorboats, currently sold only in
Japan. A small network in Japan sells the luxury craft at 54 locations, called the
"Toyota Ponam" series, and in 2017, a boat was labeled under the Lexus brand name
starting May 26, 2017.[151]
Philanthropy[edit]

The Toyota Municipal Museum of Art in Aichi, sponsored by the manufacturer

Toyota supports a variety of philanthropic work in areas such as education,
conservation, safety, and disaster relief.
Some of the organizations that Toyota has worked with in the US include
the American Red Cross, the Boys and Girls Club, Leaders in Environmental Action
for the Future (LEAF), and the National Center for Family Literacy.[152]
The Toyota USA Foundation exists to support education in the areas of science,
technology, engineering, and mathematics.[153]
In addition, Toyota works with nonprofits to improve their processes and operations
such as the Food Bank For New York City.[154][155]
Toyota also supports a variety of work in Japan.[156]
The Toyota Foundation takes a global perspective providing grants in the three areas
of human and natural environments, social welfare, and education and culture.[157]
Higher education[edit]
Toyota established the Toyota Technological Institute in 1981, as Sakichi Toyoda
had planned to establish a university as soon as he and Toyota became successful.
Toyota Technological Institute founded the Toyota Technological Institute at
Chicago in 2003. Toyota is supporter of the Toyota Driving Expectations Program,
Toyota Youth for Understanding Summer Exchange Scholarship Program, Toyota
International Teacher Program, Toyota TAPESTRY, Toyota Community Scholars
(scholarship for high school students), United States Hispanic Chamber of
Commerce Internship Program, and Toyota Funded Scholarship.[158] It has
contributed to a number of local education and scholarship programs for
the University of Kentucky, Indiana, and others.[158]
Robotics[edit]
Main article: Toyota Partner Robot
Toyota trumpet-playing robot
In 2004, Toyota showcased its trumpet-playing robot.[159] Toyota has been
developing multitask robots destined for elderly care, manufacturing, and
entertainment. A specific example of Toyota's involvement in robotics for the
elderly is the Brain Machine Interface. Designed for use with wheelchairs, it "allows
a person to control an electric wheelchair accurately, almost in real-time", with his
or her mind.[160] The thought controls allow the wheelchair to go left, right, and
forward with a delay between thought and movement of just 125 milliseconds.
[160]
 Toyota also played a part in the development of Kirobo, a 'robotic astronaut'.
In 2017, the company introduced T-HR3, a humanoid robot with the ability to be
remotely controlled. The robot can copy the motions of a connected person. The
2017 version used wires for the connection but the 2018 version used 5G from a
distance up to 10 km.[161][162]
Agricultural biotechnology[edit]
Toyota invests in several small start-up businesses and partnerships
in biotechnology, including:

 P.T. Toyota Bio Indonesia in Lampung, Indonesia

 Australian Afforestation Pty. Ltd. in Western Australia and Southern Australia
 Toyota Floritech Co., Ltd. in Rokkasho-Mura, Kamikita District, Aomori
Prefecture
 Sichuan Toyota Nitan Development Co., Ltd. in Sichuan, China
 Toyota Roof Garden Corporation in Miyoshi-Cho, Aichi Prefecture
Sewing machine brand[edit]
Aisin, another member of the Toyota Group of companies, uses the same Toyota
wordmark logo to market its home-use sewing machines. Aisin was founded
by Kiichiro Toyoda after he founded the Toyota Motor Corporation. According to
Aisin, he was so pleased with the first sewing machine, he decided to apply the same
Toyota branding as his auto business, despite the companies being independent from
each other.[163]

Controversies[edit]
Corrosion lawsuit[edit]
In November 2016, Toyota agreed to pay $3.4 billion to settle allegations that
roughly one-and-a-half million of its Tacoma, Tundra, and Sequoia pickup trucks
and SUVs had been outfitted with frames prone to corrosion and perforation.
According to court papers, the corrosion could reach levels high enough to
compromise the vehicle's structural integrity.[164]
Death from overwork[edit]
See also: Karōshi
On February 9, 2002, Kenichi Uchino, aged 30 years, a quality control manager,
collapsed then died at work.[165][166] On January 2, 2006, an unnamed chief engineer
of the Camry Hybrid, aged 45 years, died from heart failure in his bed.[165]
Fines for environmental breaches[edit]
In 2003, Toyota was fined $34M for violating the United States Clean Air Act.[167]
In January 2021, Toyota was fined $180M for violating U.S. emissions regulations
from 2005 to 2015.[168][169][170] At the time, this was the biggest civil penalty ever
levied for violating United States Environmental Protection Agency emission
reporting requirements.[168][169]
2009–2011 unintended acceleration recalls[edit]
See also: 2009–2011 Toyota vehicle recalls
Between 2009 and 2011 Toyota, under pressure from the U.S. National Highway
Traffic Safety Administration (NHTSA), conducted recalls of millions of vehicles
after reports that several drivers experienced unintended acceleration. The first
recall, in November 2009, was to prevent a front driver's side floor mat from sliding
into the foot pedal well, causing the pedals to become trapped. The second recall, in
January 2010, was begun after some crashes were shown not to have been caused by
floor mats and may be caused by possible mechanical sticking of the accelerator
pedal.[51] Worldwide, approximately 9 million cars and trucks were impacted by the
recalls.[53]
NHTSA received reports of a total of 37 deaths allegedly related to unintended
acceleration, although an exact number was never verified.[52] As a result of the
problems, Toyota faced nearly 100 lawsuits from the families of those killed, drivers
who were injured, vehicle owners who lost resale value, and investors who saw a
drop in the value of their shares. While most of the personal injury and wrongful
death lawsuits were settled confidentially,[54] Toyota did spend more than US$1
billion to settle a class action lawsuit to compensate owners for lost resale value,
[55]
 and the company agreed to pay a US$1.2 billion criminal penalty to the United
States government over accusations that it had intentionally hid information about
safety defects from the public and had made deceptive statements to protect its
brand image. The penalty was the largest ever levied against a car company.[56]
Takata airbag recalls[edit]
See also: Takata airbag recalls
Toyota, like nearly every other automobile manufacturer, was impacted by the recall
of faulty airbag inflators made by Takata. The inflators can explode, shooting metal
fragments into the vehicle cabin. Millions of vehicles produced between 2000 and
2014 were impacted by the recall, with some needing multiple repairs.[171][172]
June 2010 Chinese labour strike[edit]
On June 21, 2010, a Chinese labor strike happened in Tianjin Toyoda Gosei Co,
Tianjin. Toyoda Gosei Co supplies parts to Tianjin FAW Toyota Motor Co.[173]
Opposition to California's fuel efficiency standards[edit]
In October 2019, Toyota backed the Trump Administration's proposal that federal
authority should override California's ability to set its own emissions standards for
automobiles. The proposal would reduce California's 2025 fuel efficiency standard
from about 54.5 to 37 MPG.[174] This shift by Toyota away from fuel efficiency
damaged the company's reputation as a green brand.[175][168]
Greenwashing controversies[edit]
Toyota has repeatedly been the subject of greenwashing controversies, owing to
their criticism of electric cars, while promoting hydrogen and hybrid vehicles – with
the manner in which they have advertised and marketed hybrid vehicles causing
particular consternation.[176][177][178]
Toyota President, Akio Toyoda, has made repeated statements about electric cars,
claiming that they are “Overhyped” and that “the more EVs we build, the worse
carbon dioxide gets.”[179] This stance has led Transport & Environment to rank
Toyota as the least ready OEM to transition to battery electric vehicles by 2030,
stating: “Toyota has not set a target for 2030 and it plans to produce just 10% BEVs
in 2025. It is expected to rely on polluting hybrid technologies.[180]”
Alongside their commitment to hybrid vehicles, Toyota has repeatedly stated its
commitment to producing hydrogen cars, claiming that they will be the future of the
company.[181][182][183] Many journalists and environmental activists have accused
Toyota of greenwashing due to their stance on hydrogen vehicles in the face of clear
evidence that they are considerably less efficient than battery electric cars, and will
create more greenhouse gas emissions due to energy-intensity of the hydrogen
extraction process.[184][185][186][187]
Self-charging hybrids[edit]
In 2019, Toyota launched a global campaign for its self-proclaimed ‘self-charging
hybrid’ vehicles, which use fossil fuel to charge the on-board batteries in their cars,
rather than using an external electricity source, as with plug-in hybrids.
The language around ‘self-charging’ hybrids caused much consumer criticism that
this was misleading, as the vehicles did not self-charge, but instead required users to
input fossil fuels, and these vehicles could not run on electric power alone – as was
made clear during the COVID-19 pandemic, when Toyota contacted the owners of
these vehicles to inform them of the need to regularly refuel the vehicles with fossil
fuels.[188][189]
Complaints about self-charging hybrid advertising were recorded in multiple
countries,[190] and in 2020 the Norwegian Consumer Authority banned the adverts
outright in Norway for misleading consumers,[191] stating: “It is misleading to give
the impression that the power to the hybrid battery is free of charge, since the
electricity produced by the car has consumption of gasoline as a necessary
condition.”.[192]
Later in 2020, a study by Transport & Environment[193][194] concluded that real-world
CO2 emissions from hybrid vehicles were, on average, over two and a half times
those of official test values.[195][196] Another report found that even the most efficient
hybrid vehicles produce at least 40-70% of the emissions of a petrol or diesel car,
and will have created 15% more emissions in its manufacturer than a battery electric
vehicle would have.[197][198][199]
As the world’s biggest producer and marketer of hybrid vehicles, Toyota has
attracted the greatest attention in the wake of these reports, given that the Japanese
manufacturer plans to increase hybrid production at a time when most major
manufacturers are switching to solely producing electric vehicles by 2035 due to the
contribution of cars to the Climate crisis.[200][201]
This was compounded in early 2021, when Toyota was fined a record $180 million
for failing to comply with the Clean Air Act’s emissions reporting requirements
from 2005 to 2015.[202][203][204]
Misleading marketing[edit]
Toyota has also drawn negative attention for its marketing campaigns, which use
studies funded by the manufacturer to substantiate claims about the efficiency of
their vehicles. An exposé by IrishEVs found that Toyota Ireland had paid University
College Dublin to conduct a study of just seven cars over seven days to make claims
about the efficiency of their hybrid vehicles.[205][206]
Furthermore, Toyota Ireland had consistently used funded polls to substantiate
claims about their CO2 emissions, and their perception as a “leading brand tackling
climate change in Ireland.” No data or evidence was offered to validate these claims.
[207]

Corporate affairs[edit]

Principal headquarters building of Toyota

Toyota is headquartered in the city of Toyota,[208] which was named Koromo until
1951, when it changed its name to match the automaker. Toyota City is located in
the Aichi Prefecture of Japan. The main headquarters of Toyota is located in a four-
story building that has been described as "modest".[209] In 2013, company CEO Akio
Toyoda reported that it had difficulties retaining foreign employees at the
headquarters due to the lack of amenities in the city.[210]
Surrounding the headquarters are the 14-story Toyota Technical Center and the
Honsha plant (which was established in 1938). Toyota and its Toyota Group
affiliates operate a total of 17 manufacturing facilities in Aichi Prefecture and a total
of 32 plants in Japan.
Toyota also operates offices in Bunkyo, Tokyo, and Nakamura-ku, Nagoya.[208]
Worldwide presence[edit]
See also: List of Toyota manufacturing facilities

Top 10 Toyota and Lexus vehicle sales

by country, 2021[211]

Rank
Vehicle
in Location
sales
Toyota

1  United States 2,332,262

2  China 1,944,010

3  Japan 1,476,136

4  GCC 331,786

5  Indonesia 291,499

6  Thailand 239,723

7  Australia 232,932

8  Canada 225,215

9  Brazil 173,475

10  Taiwan 146,009
Top 10 Toyota and Lexus vehicle production
by country, 2021[211]

Rank Vehicle
Location
in Toyota production

1  Japan 2,877,962

2  China 1,649,653

3  United States 1,144,722

4  Thailand 513,836

5  Canada 427,056

6  Turkey 228,557

7  Mexico 222,342

8  France 205,714

9  Indonesia 186,085

10  Brazil 171,283

Outside of Japan, as one of the world's largest automotive manufacturer by

production volume, Toyota has factories in most parts of the world. The company
assembles vehicles in Argentina, Belgium, Brazil, Canada, Colombia, the Czech
Republic, France, Indonesia, Mexico, the Philippines, Poland, Russia, South Africa,
Thailand, Turkey, the United Kingdom, the United States, and Venezuela.
Additionally, the company also has joint venture, licensed, or contract factories in
China, France, India, Malaysia, Pakistan, Taiwan, the United States, and Vietnam.
North America[edit]
Main article: Toyota Motor North America

The Toyota Camry is assembled in several facilities around the world including

Australia, China, Taiwan, Japan, Malaysia, the Philippines, Russia, Thailand, India,
Vietnam, and the United States
Toyota Motor North America is headquartered in Plano, Texas, and operates as
a holding company for all operations of the Toyota Motor Corporation in Canada,
Mexico, and the United States. Toyota’s operations in North America began on
October 31, 1957, and the current company was established in 2017 from the
consolidation of three companies: Toyota Motor North America, Inc., which
controlled Toyota’s corporate functions; Toyota Motor Sales, U.S.A., Inc. which
handled marketing, sales, and distribution in the United States; and Toyota Motor
Engineering & Manufacturing North America which oversaw operations at all
assembly plants in the region. While all three companies continue to exist in legal
name, they operate as one company out of one headquarters campus.
Toyota has a large presence in the United States with six major assembly plants
in Huntsville, Alabama, Georgetown, Kentucky, Princeton, Indiana, San Antonio,
Texas, Buffalo, West Virginia, and Blue Springs, Mississippi. In 2018, Toyota and
Mazda announced a joint venture plant that will produce vehicles in Huntsville,
Alabama, starting in 2021.[212]
It has started producing larger trucks, such as the new Tundra, to go after the full-
size pickup market in the United States. Toyota is also pushing hybrid electric
vehicle in the US such as the Prius, Camry Hybrid, Highlander Hybrid, and various
Lexus products. Currently, Toyota has no plans to offer diesel motor options in its
North American products, including pickup trucks.[213]
Toyota Canada Inc., which is part of Toyota Motor North America, handles
marketing, sales, and distribution in Canada. Toyota Motor Manufacturing
Canada operates three assembly plants: two in Cambridge, Ontario and one
in Woodstock, Ontario.[214] In 2006, Toyota's subsidiary Hino Motors opened a
heavy duty truck plant, also in Woodstock, employing 45 people and producing
2,000 trucks annually.[215]
Europe/Western Asia[edit]
Main article: Toyota Motor Europe
Toyota Motor Europe is headquartered in Brussels, Belgium, and oversees all
operations of the Toyota Motor Corporation in Europe and western Asia. Toyota’s
operations in Europe began in 1963. Toyota has a significant presence in Europe
with nine production facilities in Kolín, Czech Republic, Burnaston,
England, Deeside, England, Onnaing, France, Jelcz-Laskowice, Poland, Wałbrzych,
Poland, Ovar, Portugal, Saint Petersburg, Russia, and Arifiye, Turkey.[216] Toyota
also operates a joint venture plant with Citroën and Peugeot in Valenciennes,
France.
Australia[edit]
Main article: Toyota Australia
In 1963, Australia was one of the first countries to assemble Toyotas outside Japan.
However, in February 2014, Toyota was the last of Australia's major automakers to
announce the end of production in Australia. The closure of Toyota's Australian
plant was completed on October 3, 2017, and had produced a total 3,451,155
vehicles. At its peak in October 2007, Toyota manufactured 15,000 cars a month.
[217]
 Before Toyota, Ford and GM's Holden had announced similar moves, all citing
an unfavorable currency and attendant high manufacturing costs.[218]
Financials[edit]
Toyota is publicly traded on the Tokyo, Osaka, Nagoya, Fukuoka,
and Sapporo exchanges under company code TYO: 7203. In Japan, Toyota's stock is
a component of the Nikkei 225 and TOPIX Core30 indices.
In addition, Toyota is foreign-listed on the New York Stock
Exchange under NYSE: TM and on the London Stock Exchange under LSE: TYT.
Toyota has been publicly traded in Japan since 1949 and internationally since 1999.
[219]

Company strategy[edit]

New Toyota factory in Ohira, near Sendai, Miyagi Prefecture, Japan: A month after
this picture was taken, the region was devastated by the March 11 earthquake and
tsunami. The plant was only lightly damaged, but remained closed more than a
month, mainly due to lack of supplies and energy, in addition to a badly damaged
Sendai port.
The Toyota Way[edit]
Main article: The Toyota Way
The Toyota Way is a set of principles and behaviors that underlie the company's
approach to management and production (which is further defined as the Toyota
Production System).
The company has been developing its corporate philosophy since 1948 and passing
it on as implicit knowledge to new employees, but as the company expanded
globally, leaders officially identified and defined the Toyota Way in 2001. Toyota
summarized it under two main pillars: continuous improvement and respect for
people. Under the continuous improvement pillar are three principals: challenge
(form a long-term vision), kaizen (a continual improvement process), and genchi
genbutsu ("go and see" the process to make correct decisions). Under the respect for
people pillar are two principals: respect and teamwork.[220]
In 2004, Dr. Jeffrey Liker, a University of Michigan professor of industrial
engineering, published The Toyota Way. In his book, Liker calls the Toyota Way "a
system designed to provide the tools for people to continually improve their
work."[221] According to Liker, there are 14 principles of The Toyota Way that can be
organized into four themes: (1) long-term philosophy, (2) the right process will
produce the right results, (3) add value to the organization by developing your
people, and (4) continuously solving root problems drives organizational learning.
The 14 principles are further defined in the Wikipedia article on The Toyota Way.
Toyota Production System[edit]
Main article: Toyota Production System
The Toyota Way also helped shape the company's approach to production, where it
was an early pioneer of what would be come to be known as lean manufacturing.
[222]
 The company defines the Toyota Production System under two main
pillars: just-in-time[223] (make only what is needed, only when it is needed, and only
in the amount that is needed) and Jidoka[224] (automation with a human touch).
The origin of the Toyota Production System is in dispute, with three stories of its
origin: (1) that during a 1950 trip to train with the Ford Motor Company, company
executives also studied the just-in-time distribution system of the grocery store
company Piggly-Wiggly,[225] (2) that they followed the writings of W. Edwards
Deming,[226] and (3) they learned the principles from a WWII US government
training program (Training Within Industry).[227]
After developing the Toyota Production System in its own facilities, the company
began teaching the system to its parts suppliers in the 1990s. Other companies were
interested in the instruction, and Toyota later started offering training sessions. The
company also has donated the training to non-profit groups to increase their
efficiency and thus ability to serve people.
Logo and branding[edit]

Employee at the Toyota Automobile Museum explains development of Toyota name

and brand
In 1936, Toyota entered the passenger car market with its Model AA and held a
competition to establish a new logo emphasizing speed for its new product line.
After receiving 27,000 entries, one was selected that additionally resulted in a
change of its moniker to "Toyota" from the family name "Toyoda", which means
rice paddy. The new name was believed to sound better, and its eight-stroke count in
the Japanese language was associated with wealth and good fortune. The original
logo was a heavily stylized version of the katakana characters for Toyota (トヨタ).
[228]

As the company started to expand internationally in the late 1950s, the katakana
character logo was supplemented by various wordmarks with the English form of
the company name in all capital letters, "TOYOTA."[228]
Toyota introduced a worldwide logo in October 1989 to commemorate the 50th year
of the company, and to differentiate it from the newly released luxury Lexus brand.
[229]
 The logo consists of three ovals that combine to form the letter "T", which
stands for Toyota. Toyota says that the overlapping of the two perpendicular ovals
inside the larger oval represents the mutually beneficial relationship and trust
between the customer and the company while the larger oval surrounding both of
these inner ovals represents the "global expansion of Toyota's technology and
unlimited potential for the future".[230][231] The new logo started appearing on all
printed material, advertisements, dealer signage, and most vehicles in 1990.
In countries or regions using traditional Chinese characters, e.g. Hong Kong and
Taiwan, Toyota is known as "豐田".[232] In countries using simplified Chinese
characters (e.g. China and Singapore), Toyota is written as "丰田"[233] (pronounced
as Fēngtián in Mandarin Chinese and Hɔng Tshan in Minnanese). These are the
same characters as the founding family's name "Toyoda" in Japanese.

Some new vehicles, like this Tacoma, still use the heritage TOYOTA wordmark
Toyota still uses the katakana character logo as its corporate emblem in Japan,
including on the headquarters building,[234] and some special edition vehicles still use
the "TOYOTA" wordmark on the grille as a nod to the company's heritage.[235]
On July 15, 2015, the company was delegated its own generic top-level
domain, .toyota.[236]
Sports sponsorships[edit]
Toyota sponsors several teams and has purchased naming rights for several venues,
and even competitions, including:

 Toyota Alvark Tokyo, basketball team

 Toyota Cup
 Toyota Center, Houston, Texas
 Toyota Center, Kennewick, Washington
 Toyota Field, San Antonio, Texas
 Toyota Park, Bridgeview, Illinois
 Toyota Sports Center, El Segundo, California
 Toyota Stadium, Georgetown, Kentucky
 Toyota Stadium, Frisco, Texas
As of 2017, Toyota is an official sponsor of Cricket Australia,[237] the England and
Wales Cricket Board[238] and the AFL.[239] In March 2015, Toyota became a sponsor
partner for the Olympic Games, in the form of supplying vehicles and
communications between vehicles until 2024.[240]

COMPANY PROFILE
Leela Krishna Automobiles Private Limited - Authorized Wholesale Dealer of brands car,
car accessories & fortuner car accessories in Rajahmundry, Andhra Pradesh. . Leela Krishna
Automobiles Pvt. Ltd. is a Krishna, Andhra Pradesh based company registered on 2004-12-
27
.
Get the detailed information of Leela Krishna Automobiles Private Limited which has
registered location is 27-33-46, Gudavalli Vari St,governorpet, Vijayawada - 520 003
Andhra Pradesh Ap In 520003 which carries out Manufacturing (Machinery &
Equipments). Leela Krishna Automobiles has the CIN no of U34102AP2004PTC044977
and it is a Non-govt Company which is Company Limited By Shares.

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Leela Krishna Automobiles Pvt. Ltd. Registration Information

Corporate Identification Number U34102AP2004PTC044977
Date Of Registration To Mca 2004-12-27
Company Age 17 years, 2 months, 24 days
Company Legal Name LEELA KRISHNA AUTOMOBILES PRIVATE LIMITED
Company Status Active
Class Private
Category Company limited by Shares
Sub Category Non-govt company
Registered State Andhra Pradesh
Industrial Class 34102
Principal Business Activity As Manufacturing (Machinery & Equipments)
Per Cin
Registered Office Address 27-33-46, GUDAVALLI VARI ST,GOVERNORPET, VIJAYAWADA - 520
520003
Registrar Of Companies RoC-Hyderabad
Email Address leelakrishna@yahoo.co.in
Latest Year Annual Return 31-03-2014
Latest Year Financial Statement 31-03-2016
Company Promoters Venkata Srinivas Maganti, Madhusudhana Sarma Maganti, Subrahmanyam Ma
User Reported Address Leela Krishna Automobiles Private Limited
Sy. No. 560/2B, NH 5, Palacherla Village, Diwan Cheruvu, Opp. Auto Nagar,
533103, Andhra Pradesh, India
Contact Person undefined
Location undefined
Business Authorized Wholesale Dealer
Financial Information
Paidup Cap ₹30000000
[Three Crores INR]
Authorized Cap ₹30000000
[Three Crores INR]
Total Loan/charges ₹1652634859
Amount Taken [ INR]
Total Loan/charges ₹660544477
Paid [Sixty Six Crores Five Lakhs Forty Four Thousand Four Hundred And Seventy Seven INR
Total Loans Taken 26
Number Of Active 11
Loans
Banks Granted Axis Bank, HDFC BANK LTD., ICICI BANK LIMITED, THE KARUR VYSYA BANK
Loans/charges LIMITED, State Bank of India, TATA CAPITAL FINANCIAL SERVICES LIMITED, RE
Canara Bank, BMW India Financial Services Private Limited, TOYOTA FINANCIAL SER
Leela Krishna Automobiles Pvt. Ltd. Services/Products

Front Grille Guard

Roof Spoiler

Auto Folding Mirror

Liva Dual Tone Le Banner Cars

Side Visor

Fabric Floor Mat Premium

Platinum Etios Banner Cars

Side Protection Mould

Leela Krishna Automobiles Pvt. Ltd. Board Information

Show Board Information Collapsed
DIRECTOR NAME APPOINTMENT DATE

VENKATA SRINIVAS MAGANTI 2004-12-27

This director is also associated with the following companies

Company Name Appointed On
Mithra Kyokuto Special Purpose Vehicle Company Private Limited 2010-03-08
Sree Padmavathi Venkateswara Foundation 2014-09-29
Pranav Global Solutions Private Limited 2015-04-16
Mahaswamy Innovations Private Limited 2016-08-08
Yashodakrishna Automobiles Private Limited 2012-06-12
Mithra Fluidtrans Private Limited 2016-08-08
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Leela Krishna Automobiles Private Limited 2004-12-27
Radha Krishna Automobiles Pvt Lim 2005-12-22
Mithra Tag Armored Private Limited 2016-01-28
Mithra Arrowcrest Roh Private Limited 2011-11-14
2018-04-03 Director
2014-07-25 Designated Partner
2018-12-01 Designated Partner
MADHUSUDHANA SARMA MAGANTI 2013-05-04
This director is also associated with the following companies
Company Name Appointed On Po
Mithra Motors Private Limited 2011-08-18 D
Yashodakrishna Automobiles Private Limited 2013-05-04 A
Mithra Coaches Private Limited 2010-04-02 D
Srinivasa Sales & Service Private Limited 2009-04-04 D
Radhamadhav Automobiles Private Limited 2013-05-04 A
Leela Krishna Automobiles Private Limited 2013-05-04 A
Radha Krishna Automobiles Pvt Lim 2013-05-04 A
2018-04-03 Director
2012-08-14 Director
SUBRAHMANYAM MAGANTI 2004-12-27
This director is also associated with the following companies
Company Name Appointed On
Marichi Finance And Leasing Limited 1991-07-29
Mithra Kyokuto Special Purpose Vehicle Company Private Limited 2010-03-08
Mithra Motors Private Limited 2011-08-18
Yashodakrishna Automobiles Private Limited 2012-06-12
Vijaya Lakshmi Bottlers Pvt Ltd 1979-04-17
Srinivasa Sales & Service Private Limited 2009-03-04
Cosmos Rubber (andhra) Pvt Ltd 1973-11-12
Radhamadhav Automobiles Private Limited 2004-03-22
Leela Krishna Automobiles Private Limited 2004-12-27
Radha Krishna Automobiles Pvt Lim 2005-12-22
Mithra Tag Armored Private Limited 2016-01-28
Mithra Garrage Private Limited 1999-09-29
Mithra Arrowcrest Roh Private Limited 2011-11-14
2018-04-03 Director
2018-12-01 Designated Partner
CHANDRAMOULI MAGANTI 2010-12-15
This director is also associated with the following companies
Company Name Appointed On
Sumithra Automobiles Private Limited 2005-06-08
Yashodakrishna Automobiles Private Limited 2012-06-12
Mithra Coaches Private Limited 2010-04-02
Srinivasa Sales & Service Private Limited 2009-04-04
Radhamadhav Automobiles Private Limited 2010-12-15
Leela Krishna Automobiles Private Limited 2010-12-15
Radha Krishna Automobiles Pvt Lim 2010-12-15
2018-04-03 Director
2012-08-14 Director
Leela Krishna Automobiles Pvt. Ltd. Company Charges
Opened Modified Amount Closed Assets
On On On
2009-07- 2010-12- 30000000 2016-11-
08 01 17
2005-11- - 20000000 2011-08-
30 12
2019-03- - 6892831 - Motor Vehicle (hypothecation); Movable Property (not Being Pledge
30
2020-02- - 15000000 - Motor Vehicle (hypothecation)
07
2020-02- - 1724467 - Motor Vehicle (hypothecation)
20
2020-09- - 46740000 - Corporate Guarantee To Rkt And Ykt
24 0
2009-07- - 4000000 2016-11- Immovable Property Or Any Interest Therein
03 17
2012-12- - 2392286 2018-06- Movable Property (not Being Pledge)
17 22
2012-12- - 1196143 2018-06- Movable Property (not Being Pledge)
17 22
2012-12- - 4034512 2018-06- Movable Property (not Being Pledge)
17 22
2014-02- - 13210000 2018-06-
20 22
2015-03- - 15000000 -
30
2016-02- - 10000000 2016-11- Manufacturer Invoices
29 16
2016-10- 2020-09- 24440000 - Book Debts; Floating Charge; Movable Property (not Being Pledge)
24 29 0
2018-12- - 3100000 - Motor Vehicle (hypothecation)
24
2019-03- 2020-11- 13000000 - Immovable Property Or Any Interest Therein; Floating Charge
18 13 0
2007-09- 2015-01- 23700000 2016-11-
10 29 0 17
2009-12- - 75000000 2016-11- Immovable Property Or Any Interest Therein
30 17
2012-12- - 4034512 2018-06- Movable Property (not Being Pledge)
17 22
2012-12- - 4034512 2018-06- Movable Property (not Being Pledge)
17 22
2012-12- - 4034512 2018-06- Movable Property (not Being Pledge)
17 22
2014-02- - 11608000 2020-01-
20 21
2015-06- - 24000000 2019-02- Book Debts; Movable Property (not Being Pledge)
19 0 22
2018-02- - 5673084 - Motor Vehicle (hypothecation)
17
2018-12- - 2900000 - Motor Vehicle (hypothecation)
24
2020-10- - 10000000 - Motor Vehicle (hypothecation); Book Debts; Floating Charge; Mova
29 0 Property (not Being Pledge); Current Assets
Leela Krishna Automobiles Pvt. Ltd. Offices

MAIN OFFICES INFO

Leela Krishna Automobiles Office in Andhra Pradesh (newly Added) Details

GSTIN 37AABCL0857C1ZS
Business Nature Retail Business, Service Provision, Recipient of Goods or Services
Registeration Date 01/07/2017
Status Active
Taxpayer Type Regular
Frequency Type MONTHLY
Last Update 03/Jul/2021
City Juridiction Code YJ0202
City Juridiction Range MADHURAWADA
State Juridiction Code AP118
State Juridiction Range DWARAKANAGAR
Location Main STATE Andhra Pradesh
BUILDING NO 164/1
LOCATION VISAKHAPATNAM
PINCODE 530041
FLAT NO PARADESIPALEM
DISTRICT Visakhapatnam
STREET MADHURAVADA
BUILDING NAME NH-5
View Leela Krishna Automobiles Pvt. Ltd. All Other Locations in Andhra Pradesh (newly Added) (15)
Leela Krishna Automobiles Pvt. Ltd. Head Office Location & Geographic Information
District Krishna
Pincode 520003
Nearby Post Office A.c.company S.o
Region Vijayawada
State Andhra Pradesh
Taluk Vijayawada (urban)
 THEORITICAL FRAME WORK

PERFORMANCE APPRAISAL

People differ in their abilities and their aptitudes. There is always some

difference between the quality and quantity of the same work on the same job

being done by two different people. Performance appraisals of Employees are

necessary to understand each employee’s abilities, competencies and relative

merit and worth for the organization. Performance appraisal rates the employees

in terms of their performance.

Performance appraisals are widely used in the society. The history of

performance appraisal can be dated back to the 20th century and then to the

second world war when the merit rating was used for the first time. An employer

evaluating their employees is a very old concept. Performance appraisals are an

indispensable part of performance measurement

Performance appraisal is necessary to measure the performance of the

employees and the organization to check the progress towards the desired goals

and aims.

The latest mantra being followed by organizations across the world being –

"get paid according to what you contribute" – the focus of the organizations is

turning to performance management and specifically to individual performance.

Performance appraisal helps to rate the performance of the employees and

evaluate their contribution towards the organizational goals. If the process of

performance appraisals is formal and properly structured, it helps the employees

to clearly understand their roles and responsibilities and give direction to the

individual’s performance. It helps to align the individual performances with the

organizational goals and also review their performance.

Performance appraisal takes into account the past performance of the

employees and focuses on the improvement of the future performance of the

employees.

Performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the

performance appraisal is measuring and improving the actual performance of the

employee and also the future potential of the employee. Its aim is to measure what

an employee does.

According to Flippo, a prominent personality in the field of Human

resources, "performance appraisal is the systematic, periodic and an impartial

rating of an employee’s excellence in the matters pertaining to his present job and

his potential for a better job." Performance appraisal is a systematic way of

reviewing and assessing the performance of an employee during a given period of

time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the

employee. It helps to analyze his achievements and evaluate his contribution

towards the achievements of the overall organizational goals.

 By focusing the attention on performance, performance appraisal goes to

the heart of personnel management and reflects the management's interest in the

progress of the employees.

Objectives of Performance appraisal:

 To review the performance of the employees over a given period of time.

 To judge the gap between the actual and the desired performance.

 To help the management in exercising organizational control.

 Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

 To diagnose the strengths and weaknesses of the individuals so as to identify

the training and development needs of the future.

 To provide feedback to the employees regarding their past performance.

 Provide information to assist in the other personal decisions in the

organization.

 Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

 To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

 To reduce the grievances of the employees.

 Essential Characteristics of an Effective Appraisal System

Performance appraisal system should be effective as a number of crucial

decisions are made on the basis of score or rating given by the appraiser, which in

turn, is heavily based on the appraisal system. Appraisal system, to be effective,

should possess the following essential characteristics:

Reliability and validity

Appraisal system should provide consistent, reliable and valid information

and data, which can be used to defend the organization – even in legal challenges.

If two appraisers are equally qualified and competent to appraise an employee

with the help of same appraisal technique, their ratings should agree with each

other. Then the technique satisfies the conditions of inter-rater reliability.

Appraisals must also satisfy the condition of validity by measuring what they are

supposed to measure. For example, if appraisal is made for potential of an

employee for promotion, it should supply the information and data relating to

potentialities of the employee to take up higher responsibilities and carry-on

activities at higher level.

 Job relatedness

The appraisal technique should measure the performance and provide

information in job related activities/areas.

 Standardization
 Appraisal forms, procedures, administration of techniques, ratings, etc., should

be standardized as appraisal decisions affect all employees of the group.

 Practical viability

The techniques should be practically viable to administer, possible to

implement and economical to undertake continuously.

 Legal sanction

Appraisals must meet the laws of the land. They must comply with

provisions of various acts relating to labor.

 Training to appraisers

Because appraisal is important and sometimes difficult, it would be useful to

provide training to appraisers viz., some insights and ideas on rating, documenting

appraisals and conducting appraisal interviews. Familiarity with rating errors can

improve rater’s performance and this may inject the needed confidence in

appraisers to look into performance ratings more objectively.

 Open communication

Most employees want to know how well they are performing the job. A

good appraisal system provides the needed feedback on a continuing basis. The

appraisal interviews should permit both parties to learn about the gaps and

prepare themselves for future. To this end, managers should clearly explain

their performance expectations to their subordinates in advance of the

 appraisals period. Once this is known, it becomes easy for employees to learn

about the yardsticks and, if possible, try to improve their performance in

future.

 Employee access to results

Employees should know the rules of the game. They should receive

adequate feedback on their performance. If performance appraisals are meant

for improving employee performance, then withholding appraisal result would

not serve any purpose. Employees simply cannot perform better without having

access to this information. Permitting employees to review the results of their

appraisal allows them to detect any errors that may have been made. If they

disagree with the evaluation, they can even challenge the same through formal

channels.

 Due process

It follows then that formal procedures should be developed to enable

employees who disagree with appraisal results (which are considered to be

inaccurate or unfair). They must have the means for pursuing their grievances and

having them addressed objectively.

Performance appraisal should be used primarily to develop employees as

valuable resources. Only then it would show promising results. When management

uses it as a whip or fails to understand its limitations, it fails. The key is not which

form or which method is used (Mathis and Jackson).

PROCESS OF PERFORMANCE APPRAISAL

1) ESTABLISHING PERFORMANCE STANDARDS:

The first step in the process of performance appraisal is the setting up of

the standards which will be used to as the base to compare the actual performance

of the employees. This step requires setting the criteria to judge the performance

of the employees as successful or unsuccessful and the degrees of their

contribution to the organizational goals and objectives. The standards set should

be clear, easily understandable and in measurable terms. In case the performance

of the employee cannot be measured, great care should be taken to describe the

standards.

2) COMMUNICATING THE STANDARDS:

Once set, it is the responsibility of the management to communicate the

standards to all the employees of the organization.

The employees should be informed and the standards should be clearly

explained to the. This will help them to understand their roles and to know what

exactly is expected from them. The standards should also be communicated to the

appraisers or the evaluators and if required, the standards can also be modified at

this stage itself according to the relevant feedback from the employees or the

evaluators.

3) MEASURING THE ACTUAL PERFORMANCE:

The most difficult part of the Performance appraisal process is measuring

the actual performance of the employees that is the work done by the employees

during the specified period of time. It is a continuous process which involves

monitoring the performance throughout the year. This stage requires the careful

selection of the appropriate techniques of measurement, taking care that personal

bias does not affect the outcome of the process and providing assistance rather

than interfering in an employee’s work.

4) COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE:

 The actual performance is compared with the desired or the standard

performance. The comparison tells the deviations in the performance of the

employees from the standards set. The result can show the actual performance

being more than the desired performance or, the actual performance being less

than the desired performance depicting a negative deviation in the organizational

performance. It includes recalling, evaluating and analysis of data related to the

employees’ performance.

5) DISCUSSING RESULTS:

The result of the appraisal is communicated and discussed with the

employees on one-to-one basis. The focus of this discussion is on communication

and listening. The results, the problems and the possible solutions are discussed

with the aim of problem solving and reaching consensus. The feedback should be

given with a positive attitude as this can have an effect on the employees’ future

performance. The purpose of the meeting should be to solve the problems faced

and motivate the employees to perform better.

6) DECISION MAKING:

The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective actions,

or the related HR decisions like rewards, promotions, demotions, transfers etc.

METHODS, TECHNIQUES FOR APPRAISING PERFORMANCE

Several methods and techniques of appraisal are available for measuring

the performance of an employee. They are:

1. Straight rank method

2. Man to man comparison method

3. Grading

4. Graphic rating method

5. Forced choice description method

6. Forced distribution method

 7. Checklists

8. Free from easy method

9. Critical incidents

10. Group appraisal

11. Field review method

Modern Methods:

1. Assessment center

2. Appraisal by results or management by objectives

3. Human asset accounting method

4. Behaviorally anchored rating sales

TRADITIONAL METHODS

1. Straight Rank Method:

It is the oldest & simplest method of performance appraisal, by which the

man and his performance are considered as an entity by the rater. Then ranking

of a man in work group is done against may also do that of another member of a

competitive group by placing him as one or two or three in total group, i.e.

persons are tested in order of merit and place in a simple grouping.

2. Man –To-man Comparison Method:

The USA army during the FIRST WORLD WAR used this technique. By this

method, certain factors are selected for the purpose of analysis and a scale is

designed by the rater for each factor. A scale of man is also created for each
 selected factor. The each man to be rated is compared with in the scale, and

certain scores for each factor are awarded to him. This method is used in job

evaluation, and is known as the factor comparison method.

3. Grading Method:

Under this system, the rater considers certain features and marks them

accordingly to a scale. The selected features may be analytical ability,

cooperativeness, dependability, self-expression, job knowledge, judgment,

leadership and organizing ability, etc. they may be

A – Outstanding,

B – Very good,

C – Good or average,

D – Fair,

E – Poor,

-B (or B-) very poor or hopeless.

The actual performance of an employee is then compared with these grade

definitions; such type of grading is done in semester examinations and also in the

selection of candidates by the public service commissions.

4. Graphic or Linear Rating scale:

 This is most commonly used method of performance appraisal. Under it, a

printed forms one of each person to be rated. According to juices, these factors

are employee characteristics ad employee contribution. In employee

characteristics are included such qualities and initiative, leadership,

cooperativeness, dependability, industry, attitude, enthusiasm, loyalty, creative

ability, decisiveness, analytical ability, emotional ability and co-ordination. In the

employee contribution are quantity and quality of work, the responsibility

assumed specific goals achieved regularity of attendance, leadership offered,

attitude towards supervisors and associates, versatility etc.

The rating scale method is easy to understand and easy to use, and permits

a statistical tabulation of scores. A ready comparison of scores among the

employees is possible.

5. Forced Choice Description Method:

This method was evolved after great deal of research conducted for

military services during World War II. It attempts to correct a rater’s tendency to

give consistently high or consistently low ratings to all employees. The use of this

method calls for objective reporting and minimum subjective judgment. Under

this method the rating elements are several sets of pair phrases or adjectives

(usually sets of four phrases two of which are positive, two negative) relating to

job proficiency
 Or personal qualifications. The rater is asked to indicate which of the four phrases

is most and least descriptive of the employee.

6. Forced Description Method:

Joseph Tiffin evolved this method after statistical work. This system is used

to eliminate or minimize rater’s bias, so that all personnel may not be placed at

the higher end or at the lower end of the scale. It requires the rater to appraise an

employee according to a predetermined distribution scale. Under this system, it is

assumed that it is possible and desirable to rate only to factors, viz., job

performance and promotability. For this purpose, a five-point performance scale

is used without any descriptive statement. Employees are placed between the

two extremes of ‘good’ and ‘bad’ job performance.

7. Check List:

Under this method, the rater does not evaluate employee performance; he

supplies report about it and the personnel department does the final rating. A

series of questions are presented concerning an employee to his behaviour. The

rater, the checks to indicate if the answer to a question about an employee is

positive or negative. An example of check list is given below:

1. Is the employee really interested in his job? Yes/No

2. Is regular on his job? Yes/No

3. Does he follow instructions properly? Yes/No

 4. Is he always wiling to help other employees? Yes/No

5. Does he ever make mistakes? Yes/No

8. Free Easy Method:

Under this method, the supervisor makes a free from, open-ended

appraisal of an employee in his own words and puts down his impressions about

the employee. He takes not of these factors.

a.General Organization and planning ability.

b. Job knowledge and potential.

c.Employee characteristics and attitudes.

d. Understanding and application of company policies and procedures.

e. Production, quality and cost control.

f. Physical conditions.

g.Development needs for future.

9. Critical Incident Method:

The essence of this system is that I attempts to measure workers

performance of certain ‘events’ or ‘episodes’ that occur in the performance of the

rate’s job. The supervisor keeps a written record of the events that can easily be

recalled and used in the course of periodical of formal appraisal. Feedback is

provided about the incidents during performance review session. Various

behaviors are recorded under such categories as the type of job, requirements for

employees, judgment, learning ability, productivity and precision in work,

responsibility and initiative.

 10. Group Appraisal Method:

Under this method, an appraisal group rates employees, Consisting

of their supervisor and three or four other supervisors who have knowledge of

their performance. The supervisor explains to the group the nature of his

subordinates duties. The group then discusses the standards of performance for

that job, the actual performance of the job holder, and the causes of their

particular level of performance, and offers suggestions for future improvement, if

any.

11.Field Review Method:

Under this method, trainer employees from the personnel

department interview line supervisors to evaluate their respective subordinates.

The appraiser is fully equipped with definite test questions, usually memorized in

advance, which he puts to the supervisors. The supervisor is required to give his

opinion about the progress of his subordinates, the level of the performance of

each subordinate, his weakness, good points, outstanding ability, and

promotability, and the possible plans of action in cases requiring further

consideration.

MODERN METHODS:

1) Appraisal by Results Management by Objectives (MBO):

 Peter ducker has evolved this method. MBO is potentially a powerful

philosophy of managing and an effective way for operationlising the evaluation

process. It seeks to minimize external controls and maximize internal motivation

through joint goal setting between the managers and subordinate and increasing

the subordinate’s own control of the work. It strongly reinforces the importance of

allowing the subordinate to participate actively in the decisions that affect him

directly. Management by objectives can be described as a process whereby the

supervisor and subordinate managers of an organization jointly identify its

common goals, define each individuals’ major areas of responsibility in terms of

results expected of him and use these measures as guides for operating the unit

and assessing the contributions of each of its members.

Objectives of MBO:

MBO has an objective in itself. The objective is to change behaviour and attitudes

towards the affecting getting the job done. In other words, it is result oriented; it

is performance that counts. It is a management system and philosophy that

stresses goals rather has methods. It provides responsibility and accountability

and recognizes that employees have needs for achievement and self-fulfillment. It

meets

These needs by providing opportunities for participation goals setting process.

Sub ordinates become involved in planning their own careers.

MBO Process:
 This method emphasizes the value of the present and the future instead of

that of the past, and focuses attention on the results that are accomplished and not

on personal traits or operational methodology. An employee is not judged in terms

of operational methodology, or in terms of initiative, cooperativeness, attitude,

emotional stability, or any other human quality, but on the basis of the

achievement of the targets that have been set. This method is largely applied to

technical, professional, supervisory or execute personnel and not to the hourly paid

workers because their jobs are usually too restricted.

Under MBO programme, an employee and his supervisory meet and

together define, establish and set certain goals or objectives which the employee

would attempt to achieve within the period of, prescribed time.

It consists of five basic steps:

 Set organizational goals i.e., establishment of an organization wide

strategy and goals.

 Joint goals setting i.e., establishment of short term performance

targets between the management and the subordinate in a

conference between them.

 Performance review i.e., frequent performance review meetings

between the manager and the subordinate.

 Set check points i.e., establishment of major check points to

measure progress.

 Feedback.
1) Benefits of MBO Programmer:

The benefits of MBO programmer are:

 MBO helps and increases employee motivation because it reveals

overall goals to the individual goals and help to increase an

employees understanding of where the organization is and where it

is heading.

 MBO reduces role conflict and ambiguity. Role conflict exists when a

person is faced with conflicting demands from two or more.

Supervisors and role ambiguity exists when a person is uncertain as

how he will be evaluated, or what he has to achieve. Since MBO

aims at providing clear targets and their order of priority, it reduces

both these situations.

 MBO identifies problems better and early. Frequent performance

review sessions make this possible.

 MBO forces and aids in planning. By forcing top management to

establish a strategy and goals for the entire organization and by

requiring other managers to set their targets and plan how to reach

them.

 MBO helps he individual manager to develop personal leadership

especially the skills of listening, planning, counseling, motivating and

evaluating.

2) Assessment Center Method:

 Under this method, many evaluations join together to judge

employee performance in several situations with the use of a variety of criteria.

The purpose of this method was end is to test the candidates in a social situation

using a number of assessors and a variety of procedures. The most important

feature of this is job related simulations.

3).Human Asset Accounting Method:

This method refers to activity devoted to attaching money estimates to the

value of a firm’s internal human organization and its external customer goodwill. If

able, well trained personnel leave a firm, the human organization is worthless if

they join it, its human assets are increased. If distrust and conflict prevail, the

human enterprise devalued. If team work and high moral prevail, the human

organization is a very valuable asset.

4). Behaviorally Anchored Rating Scales (BARS):

This is a new technique for appraisals. It provides better, more

equitable appraisals as compared to other techniques. Though bars technique is

more time consuming and expensive than other appraisal tools. Since bars is done

by person’s expert in the technique, the results are sufficiently accurate. It has got

certain advantages:

 More accurate

 It clearly clarifies what we extremely good performance,

average performance & so forth.

  More useful in providing feedback to the people being

appraised.

 Helps in making dimensions more independent if one

another.

 The technique is not biased by the experience and evaluation

of the rater.

DATA ANALYSIS& INTERPRETATION

1. Do you think Performance Appraisal in KARVY helps people to set and achieve

meaningful goals?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 24 20

B Agree 75 62.5

Percentage
Percentage
62.5
20

7.5

7.5

2.5

S t r o n g l y Agr ee Agr ee No opinion D i sagr ee Strongly

D i sagr ee
 C No Opinion 9 7.5

D Disagree 9 7.5

E Strongly Disagree 3 2.5

Total 120 100

INTERPRETATION:

For the above question, almost 83% of Employees felt that the Performance

Appraisal in their organisation helped them in achieving their goals.

2. Does your Appraiser help you in selecting KPI’s?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

Percentage
70
60
50
40
30
20
10
0
Strongly Agree Agree No Opinion Disagree Strongly Disagree

Percentage
 S. No. Options Respondents Percentage

A Strongly Agree 21 17.5

B Agree 69 57.5

C No Opinion 21 17.5

D Disagree 6 5

E Strongly 3 2.5
Disagree
Total 120 100

INTERPRETATION:

For the above question, almost 75% of Employees thought that their

Appraiser helps in selecting their KPI’s. Only 3% of employees agreed that their

Appraiser does not help in selecting their KPI’s.

3. Do you think Performance Management improves Motivation and Job

Satisfaction?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Percentage

Respondents
A Strongly Agree 27 22.5
 B Agree 78 65

C No Opinion 12 10

D Disagree 3 2.5

E Strongly 0 0
Disagree
Total 120 100

Percentage
2.5

10
22.5

65

Strongly Agree Agree No Opinion

Disagree Strongly Disagree

INTERPRETATION:
 This pie chart shows that about 88% of officers agree that Performance

Management improves motivation and job satisfaction. Only 2% of employees

agreed that Performance Management does not improve job satisfaction.

4. Does Performance Appraisal affect the quality of Performance of the

Employees?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 27 22.5

B Agree 75 62.5

C No Opinion 9 7.5

D Disagree 9 7.5

E Strongly 0 0
Disagree
Total 120 100
 Percentage
7.5 22.5
7.5

62.5

Strongly Agree Agree No Opinion Disagree Strongly Disagree

INTERPRETATION:

For the above question, almost 85% of Employees agreed that Performance

Appraisal affects the quality of Performance in employees.

5. Mid-term Review (MTR) is useful for modifying KPI’s?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 18 15

B Agree 69 57.5

C No Opinion 27 22.5
 D Disagree 6 5

E Strongly Disagree 0 0

Total 120 100

Percentage
60
50
40
30
20
10
0
Strongly Agree Agree No Opinion Disagree Strongly Disagree

Percentage

INTERPRETATION:

For the above question, 73% of Employees agreed that Mid Term Review

(MTR) is useful for modifying KPI’s. 5% employees disagreed that Mid Term Review

is useful for modifying KPI’s.

6. Performance Appraisal can help people understand the organizational strategic

goals?
 a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 12 10

B Agree 66 55

C No Opinion 30 25

D Disagree 9 7.5

E Strongly Disagree 3 2.5

Total 120 100

Percentage

60
50
40
30
20
10
0
Strongly Agree Agree No Opinion Disagree Strongly
Disagree

Percentage

INTERPRETATION:

For the above question, 65% of employees agreed that, Performance

Appraisal helps people understand the organizations Strategic Priorities. But 25% of
the employees have no opinion whether people can understand the organizations

strategic priorities or not.

7. Performance Review is being conducted for discontented Employees?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 9 7.5

B Agree 33 27.5

C No Opinion 54 45

D Disagree 21 17.5

E Strongly Disagree 3 2.5

Total 120 100

 Percentage

45
40
35
30
25
20
15
10
5
0
Strongly Agree Agree No Opinion Disagree Strongly Disagree

Percentage

INTERPRETATION:

More than 40% of Employees are not aware of whether the Performance

Review is being conducted for dissatisfied Employees in the organisation. Only 35%

of Employees agreed that Performance Review is being conducted.

8. Three tier assessment i.e., Reporting, Reviewing, Acceptance is necessary for

reducing biases?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE
 S. No. Options Respondents Percentage

A Strongly Agree 21 17.5

B Agree 84 70

C No Opinion 12 10

D Disagree 3 2.5

E Strongly Disagree 0 0

Total 120 100

Percentage
70
60
50
40
30
20
10
0
Strongly Agree Agree No Opinion Disagree Strongly Disagree

Percentage

INTERPRETATION:

For the above question, nearly 88% of the Employees agreed that three tier

assessment is necessary for reducing bias. Only 2% of Employees disagreed with

the three-tier assessment.

9. Are you rated on the competencies, skills and abilities?

 a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 12 10

B Agree 81 67.5

C No Opinion 15 12.5

D Disagree 6 5

E Strongly Disagree 6 5

Total 120 100

percentage
5
5

12.5

67.5

Strongly Agree Agree No Opinion

Disagree Strongly Disagree

INTERPRETATION:
 For the above question, nearly 78% of Employees feel that they are being

rated based on their competencies, skills and abilities. While 10% of employees

disagreed that they are paid based on their abilities.

10. Performance Related Pay (PRP) are given as per grading?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 39 32.5

B Agree 57 47.5

C No Opinion 21 17.5

D Disagree 3 2.5

E Strongly Disagree 0 0

Total 120 100

 Strongly Agree Agree No Opinion
Disagree Strongly Disagree

INTERPRETATION:

For the above question, 80% of the Employees agreed that PRP linkage units

are given as per grading. Whereas only 2% employees disagreed with the

Performance Related Pay(PRP).

11. Performance Appraisal provides opportunity for Self-Review and Reflection?>

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 42 35
 B Agree 57 47.5

C No Opinion 15 12.5

D Disagree 6 5

E Strongly Disagree 0 0

Total 120 100

Percentage
47.5
50
35
40
30
12.5
20
5
10 0
0
Strongly Agree Agree No Opinion Disagree Strongly
Disagree

Percentage

INTERPRETATION:

From the above analysis, nearly 83% of the Employees feel that they are

given an opportunity for self-review and reflection. Only 5% of the Employees

disagreed with the above question.

12. Appraisal procedure allows the Appraisee to express his Developmental needs?
 a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 15 12.5

B Agree 51 42.5

C No Opinion 42 35

D Disagree 9 7.5

E Strongly 3 2.5
Disagree
Total 120 100

Percentage
45
40
35
30
25
20
15
10
5
0
Strongly Agree Agree No Opinion Disagree Strongly
Disagree

Percentage
INTERPRETATION:

For the above question, 55% of the Employees agreed that the Appraisal procedure

helps them to express their developmental needs. Nearly 35% of the employees

felt that the current appraisal procedure is not helpful for expressing their

developmental needs.

13. The system has the scope to correct the biases of the assessor through a

Superior Review?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 6 5

B Agree 78 65

C No Opinion 30 25

D Disagree 0 0

E Strongly Disagree 6 5

Total 120 100

 Percentage
Strongly Disagree 5

Disagree 0

No Opinion 25

Agree 65

Strongly Agree 5

0 10 20 30 40 50 60 70

Percentage

INTERPRETATION:

For the above question,70% of the Employees strongly agreed that the

current system of Appraisal has the scope to correct biases of the assessor through

a Superior Review.

14. Current Performance Appraisal is an effective tool for evaluating the Employees

Performance?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

TABLE

S. No. Options Respondents Percentage

A Strongly Agree 6 5

B Agree 60 50

C No Opinion 39 32.5
 D Disagree 12 10

E Strongly 3 2.5
Disagree
Total 120 100

percentage
Strongly Agree Agree No Opinion
Disagree Strongly Disagree

2.5; 3%
5; 5%
10; 10%

32.5; 33% 50; 50%

INTERPRETATION:

For the above question, almost 60% of the Employees accepted the current

Performance Appraisal System as it acts as an effective tool for evaluating their

Performance. But 10% of the employees expressed their discontentment regarding

the current Performance Appraisal System.

15. Performance Appraisal Report Counselling is conducted based on the poor

performance of the Employees?

a. Strongly agree b. Agree c. No Opinion

d. Disagree e. Strongly Disagree

 TABLE

S. No. Options Percentage

Respondents

A Strongly Agree 9 7.5

B Agree 60 50

C No Opinion 36 30

D Disagree 12 10

E Strongly 3 2.5
Disagree
Total 120 100

Percentage
50

50
45
40 30
35
30
25
20 10
7.5
15 2.5
10
5
0
Strongly Agree Agree No Opinion Disagree Strongly
Disagree

Percentage

INTERPRETATION:

For the above question, 60% of the Employees agreed that Performance

Appraisal Report Counseling is conducted based on the poor performance of the

Employees. But 10% of the employees disagreed with the above question.
 FINDINGS

1. In the light of the above discussion the following findings and conclusions

aremade.

2. It is revealed that the executive are getting feedback on their performance

thoughwhich they can review their performance. Sort on the problems and can

overcome thedifficulties.

3. The management has a clear understanding about the problem that the workers

are thebest with moreover, they are eager to solve the problems of the workers as

and whenthey arise.

4. The management was giving requisite training to workers in the areas where

they areweak.

5. Workersawarenessaboutthefactthattheappraisalareoneofthefactorforpromotion

was centpercent.

6. Performance appraisal system is considered as a means that aim at identifying

theareasofimprovement,identifyingareasoftraininganddevelopmentsettingperfor

mancetargetfor future.

7. Themanagementdesirehavingcordialrelationswiththeworktoholdmutualdiscussio

ns.

8. Theperformanceappraisalsystemitexistsasitexistnow,isproperlyworkedoutandapp

ropriatelyevolved.Thisrevealedfromtheopiniongivenbythemajorityofthe

employees
 SUGGESTIONS

1. Based on the findings of the study and personal discussions heldwith various

executivesand employeesat PHOENIX MOTORS PVT LTD.,

Hyderabadpossible suggestions andrecommendationsaregiven:

2. Itisrecommendedthatemployeesshouldbeimmediatelycommunicated.

3. Theresultoftheappraisalparticularlywhentheyarenegative.

4. Itisrecommendedthatthesupervisorshouldtrytoanalyzethestrengthsandweaknesses

ofan employeeandadvisehim oncorrectingthe weakness.

5. It is commended to counsel the employees appropriately regarding their strength

andweaknesses and assist in developing them to realize their full potential in line

with thecompany’sgoals.

6. The performance appraisal system is consider as an essentialtool for bridging

gap between the top management and the executives it thus helpsthem

todevelopcordialrelationsand mutual understanding.

7. It is recommended that the employees should be communicated information

about hisperformance, again his acceptance of it and draw up a plan for future

improvement, ifnecessary.

8. It is recommended that the rater must be thoroughly well versed in the

philosophyandoftheratingsystem.Factorsalesmustbethoroughlydefined,analyzeda

nddiscussed.

9. Toconclude,itisimperativetoimmunizeoftheproblemsorhindrancestostrengthen

thesystem.