It is possible to say that performance management is a central tool used by both companies to meet business objectives and goals. Performance management allows different companies to balance the need to embed processes with the need to be flexible and adaptive to changing circumstances. According to Greer (2000) management often supplements performance management by competency frameworks; appraisal is more frequently conducted through multiple perspectives; rewards decisions are more likely to be decentralized; and formal training is supplemented by coaching and self-development activities. In this case, it is possible to say that the application of performance management is influenced by the degree and experience of change, the involvement and commitment of line managers, and the transparency and perceived fairness of the process (Nkomo et al 2004).
Training and self-development of employees are the key concepts identified in the case studies. All the companies placed great emphasis on training and development, with "most having a number of large-scale training initiatives either in place or being developed, sometimes as part of a broader cultural change program" (Nkomo et al 2004, p. 23). There is clear evidence that all the organizations are increasing their investment in training in order to compete on the market. Significant qualitative differences emerged between the types of training offered.
Performance management is expected to regulate both motivation and ability to work. Performance management is usually conceptualized as consisting of three elements: (1) objective setting, (2) formal performance evaluation, and (3) linkage between evaluation outcomes and development and rewards, in order to reinforce desired behavior (Nkomo et al 2004).. Motivation is important because it influences commitment to work and productivity, morale and culture. Even if a company succeeds in constraining their behaviors in this way, the prescription might dampen the very motivation and creativity that the company seeks from them and depends upon for business performance. 'Business targets' also emerges as a significant source of motivation in all organizations. Motivation and rewards is an important part of change management helping companies to overcome resistance to change and inspire employees. One tempting interpretation of these results would be to argue that the personal motivation of managers is of much greater importance in explaining the involvement of line managers than formal institutional incentives and pressures (Greer 2000). In any case, the personal motivation of managers is influenced by their organizational environment.
B. The main similarity between Ford and Toyota management is the strategic approach to human resource management. Both companies had to change their working culture and improve professional skills of employees. Toyota created a positive environment where employees perceived that they easily acquired new skills and knowledge. Similar to Toyota, Ford introduced training programs for engineers and production workers. The main difference was that Ford emphasized on-job training and development while Toyota paid a special attention to motivation