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ERUM KHATAK SUBMITTED BY: SAWERA HAIDERY KASHAN PIRZADA ASIF ABRO ASADULLAH SHAIKH MBA – 2A 22ND APRIL, 2008 BAHRIA UNIVERSITY (MANAGEMENT SCIENCES)
TOYOTA INDUS MOTOR COMPANY LIMITED
Indus Motor Company Limited is a joint venture between the House of Habib, Toyota Motor Corporation, Japan and Toyota Tsusho Corporation, Japan, for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. The company was incorporated in Pakistan as a public limited company on December 17, 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib with 50 % of the equity. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. The company has now a workforce of more than 1500 employees. The company is the sole distributor for all Toyota vehicles. Apart from Toyota it is also manufactures Daihatsu vehicles in Pakistan. Toyota's corporate philosophy revolves around customer satisfaction, which is symbolized in its pioneering “3S” concept in automobile industry i.e., Sales, Service, and Spare Parts available under one roof.
COMPANY’S MISSION STATEMENT:
“To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology.” In a nutshell the company’s objective is to have:
“Action Commitment Teamwork for becoming #1 in Pakistan”
CORE VALUES OF IMC:
➢ Customer Satisfaction.
➢ ➢ ➢ ➢
Product Quality. Employee Care. Teamwork Ethical & Honest Practices.
DEFINING THE WORKFORCE DIVERSITY
The workforce diversity is the heterogeneity or diversification in the employees in an organization on the basis of certain demographic characters, such as race, age, gender, ethnicity, religion, nationality, etc. Nowadays workforce diversity encompasses anyone who varies from the so-called norm. Therefore in addition to the above mentioned groups, the diversification in employee workforce can also be analyzed on the basis of marital status and tenure.
MANAGING THE WORKFORCE DIVERSITY:
Now with the changing environment and more awareness of personal rights throughout the world, we realize that the employees do not set aside their cultural values and lifestyle preferences when they come to work. The challenge for today’s organizations, therefore, is to make themselves more accommodating to diverse groups of people by addressing their different lifestyles, family needs, and work styles. Thus, the shifting from the traditional management practice of treating everyone alike, towards recognizing the differences present in the workforce and responding to, but not discriminating those differences, is of major importance to the managers of today. It can ensure employee retention, greater productivity, increase creativity and innovation, improves decision making by different perspectives of Diversified workforce.
MOTIVATION AS A TECHNIQUE TO MANAGE THE WORKFORCE DIVERSITY:
Motivation is the willingness to exert high levels of effort toward organizational goals, conditioned by the effort’s ability to satisfy some individual need. It plays a vital role in managing the workforce diversity in order to achieve the organizational goals. Thus by the knowledge of the wide range of the motivational theories, the managers are able to properly understand the individual needs of the employees and can also use them for handling the diversification issues in the organization.
WORKFORCE DIVERSITY IN TOYOTA (PAKISTAN)
In Toyota, although the workforce diversity is encouraged as it brings creativity, competitiveness and healthy environment, but here only the diversity is to be seen in terms of gender (male/ female), and to some extent geographical (linguistics), beliefs (religion and sect) and marital status (married/ unmarried). The age-wise and skill-wise diversity is not present in Toyota because at the time of appointments, selection of employees is done in such a way so as to meet the standards of the company required for a certain type and level of the job. Also the workforce is given on job training and with the passage of time the employees get promoted, so age and skills brings promotions only.
MOTIVATIONAL TECHNIQUES IN PRACTICE AT TOYOTA:
1) THE NAME TOYOTA ITSELF: The basic motivational factor for employees working in Toyota is the Goodwill of the company itself and also the Life-time Employment policy (no firing is done, until forgery or any other such criminal activity done by the employee) of the company. 2) OPEN COMMUNICATION CHANNELS: An open and informal sort of an environment is to be observed at Toyota with fully encouraging communication channels. An important and unusual thing to be seen here is that there is no cabin system, i.e. no separate cabins or rooms are made for top management, but they remain on the go to keep in touch with the lower management and the workers commonly called as Team members. 3) ON JOB TRAINING: The company has a policy that as soon as a person joins its workforce, he/she is provided a proper training to fit into the job responsibility given to him/her. This phase of training is prior to accepting the job responsibilities. But the on job training, to overcome situational problems being faced by the employees, is also very common at Toyota. The TNA (Training Need Analysis) is a method of evaluating personal capabilities is also an example of on job training, which is in common practice at the company. 4) ADDITIONAL BENEFITS: IMC provides a number of benefits to retain its valued employees and to decrease turnover like: Medical insurance for employees and their families. Loans like home loans, etc. Provident Fund. Pension after 10 years of service. Casual and medical leave. Transport facilities. Lunch facilities. Apart from providing the lunch, the company has a very interesting tradition of serving a glass of milk every hour to each of the factory workers considering their intense physical work. Maternity leave of 3 months. Separate entertainment budget for every department. Overtime compensation to all late sittings after 5pm. Every year the company also bears the cost of providing separate (upper management and middle management separately) recreational trips of 3 to 4 days to a certain foreign country to its management employees and dealerships. Team members (factory workers) are provided with Hajj and Umrah facilities every year through a lucky draw for 4 to 5 members at each time.
Upper hierarchy in the company is also provided with an additional benefit of some Club membership for the family. Another unique benefit at IMC is charity for needy employees by the Habib group through secrecy. There is also a Labor Union to present the issues being faced by the work team members to the management. IMC also has a Cricket team of its own to provide entertainment and to enhance enthusiasm in the employees, for which the selection is done purely on ability basis. 5) CARE AND SAFETY: Toyota values its employees a lot and considers them as a family. Therefore, in order to increase awareness about safety measures, it provides two types of safety education to its team members. One is through improving the technical capabilities employees need for particular jobs, and the other is by providing knowledge through collective education for managers and general plant employees. Also the formation of small employee groups to discuss the potential dangers at the work sites is a very common activity (KYTkiken=danger, yochi=prevention, training) in the company. The SHE Department (Safety, Health and Environment department) on regular basis, get the employee informed for health and safety measures through e-mails. 6) USE OF MBO: Management by objectives is the method of emphasizing participative set goals that are tangible, verifiable, and measurable. It converts the overall organizational objectives into specific objectives for organizational units and individual members. This method helps managers to motivate their subordinates in such a way that they themselves feel responsible in achieving the organizational goals as they have been a part in the goal setting of their own department. 7) MEETINGS AS REINFORCEMENT SCHEDULES: IMC uses a number of different types of meetings as reinforcement schedules to increase the desired or to decrease the undesired behavior of its workforce. The examples of such meetings include: 3M’s meetings (muri = over burden, muda = waste, mura = unevenness) to eliminate the wasteful activities of the departments every Monday with the CEO. OBEHYA meetings (the standing meeting) to judge the performance and progress of each department every Tuesday with the directors and the CEO of the company. Monthly review meetings of the departments themselves with their Directors, in which the progress of the department and the personal performances of the concerned employees is evaluated. QRM meeting (Quality Review Meeting) of the departments every month with the CEO. ACT # 1 meeting with the Chairman every month.
8) INCENTIVES AND REWARDS SYSTEMS: IMC believes in encouraging the performance of its employees to motivate them to remain performing at their best in the company’s interest. Some of its rewards systems are mentioned below: Bonuses (profit sharing) on performances and hierarchy level on basic salary. The company gives Employee of the month award to all the best performers during the month. The employees are also entitled to Employee of the year award, which is presented to the best performer on the Annual Family Day. The higher management also uses a system of sending motivational e-mails to each and every department in order to praise the performance of an employee in a certain department for positive reinforcement. 9) PERFORMANCE APPRAISALS: Every year the company gives performance based appraisals in the form of increments and benefits. A minimum of Rs.200/= is given to every employee, but this increment is disliked and indicates that the person has shown zero performance during the year. 10) JOB ENRICHMENT TECHNIQUES: Certain job enrichment techniques are also in practice at IMC to maintain interest of the workforce in their job responsibilities, for instance: Every team member is a Line Inspector, and can stop the line of production even for small defects. Suggestive system is very encouraging technique to enhance creativity among the workers by taking part in the decision-making for the improvement of working techniques and conditions. Another important technique is the KAIZEN Marathon (search for a better way to reduce time and cost) in which the QC Circle (quality control) employees conduct research based activities for the improvement in working conditions, job descriptions and job responsibilities.
From the above discussion, it may be concluded that TOYOTA INDUS MOTOR COMPANY LIMITED has a purely motivating, extremely caring and creativity encouraging open environment which enables it to manage its large workforce with
minimum issues arising due to diversity. Rather the organizational set-up is such that it joins the whole workforce in the form of a family. TOYOTA uses its best efforts to comply with all labor and employment laws and regulations of the countries where it is active, as well as the spirit thereof. TOYOTA encourages and supports the personal growth of all people working for TOYOTA. Based on “Mutual Trust and Mutual Responsibility”, TOYOTA endeavors to improve its business performance in order to make it possible to provide equal employment opportunities and to maintain fair and stable working conditions. TOYOTA strives to create a safe and harmonious work environment for its employees. TOYOTA respects and honors the rights of all people working for it and will not discriminate against them or permit the infringement of their rights.
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