In this study, polynomial functions of orders up to five are applied to induce variations in the cradle radial setting and the velocity ratio in the kinematic scheme of the machine tool for the generation of the pinion tooth surfaces corresponding to reduced transmission error amplitudes of a hypoid gear pair. The new CNC hypoid generators have made it possible to perform this nonlinear correction motions for the cutting of the face-milled hypoid gears. An algorithm is developed for the execution of motions on the CNC hypoid generator for the generation of face-milled hypoid gear tooth surface, based on the machine tool setting variation on the cradle-type hypoid generator induced by the optimal polynomial functions up to fifth-order. By using the corresponding computer program, the motion graphs of the CNC hypoid generator are determined for the generation of hypoid gear tooth surface, based on the optimal variation in the velocity ratio in the kinematic scheme and on the variation in the cradle radial setting on a cradle-type generator. The results presented indicate that the variation of the velocity ratio in the kinematic scheme of the hypoid generator induced by a fifth-order polynomial function resulted in a 62% reduction of the maximum transmission error of the gear pair.