 wages are comparable; the difference is in benefits, with the

unionized factories having far higher costs.

 GM says its total hourly labor costs are now $69 including wages, pensions and
health care for active workers, plus the pension and health care costs of more than
432,000 retirees and spouses. Toyota says its total costs are around $48. The
Japanese automaker has far fewer retirees and its pension and health care benefits
are not as rich as those paid to UAW workers.
 Toyota reward both individual and organizational results with well-balanced
compensation, benefits and perquisite programs such as HMI,Dental I, Vision I,
employee mentoring programmw
 GM-GM respects the right to all employees to choose union membership. covering the right
of employees to organize for collective bargaining, and encourages employees to support or
oppose union membership without fear of coercion or retaliation from GM. GM operations in
over 200 countries having more that 50 production locations and having more than 327,000
employees and 25000 global suppliers, HR dept. of the GM has to manage a large network
system and it is itself a major challenge to HR managers. 
 GM- diversified organization needs decentralization of powers and policies and needs
multiple HR groups with specific specialization area. They have to work closely with union
partners to ensure a competitive manufacturing environment and improving of operating
efficiency. The issues faced by GM is primarily to manage vast network of operations,
number of people, diversified culture and environment, global economic developments etc
 As lean management is a technique for eliminating waste and the object of a great
deal of waste elimination is labour cost, one might think the main reason of lean
methods is head-count decrease. Toyota has an extremely different sight. People
who are healthy trained in problem solving will primary contain the difficulty to get
production organization and then take the time to recognize the root reason of the
difficulty and develop and implement contradict measures.
 GM has to perform and its HR policies has to be such that it could face market
competitiveness and changing environment. In the present situation GM operations
in over 200 countries having more that 50 production locations and having more
than 327,000 employees and 25000 global suppliers, HR dept. of the GM has to
manage a large network system and it is itself a major challenge to HR managers.
Managing such a large multinational corporation tends to be hectic with the logistics
of managing processes across many departments spread over many countries. To
manage people of such a large and diversified organization needs decentralization of
powers and policies and needs multiple HR groups with specific specialization area.
These groups are located at various levels from corporate office to each of business
units across the corporation. HR groups do not have a central repository of
information i.e. no centralize system and therefore lacked coordinated
communication infrastructure. Similarly using third parties to manage HR issue in
such a large p like recruitments at local levels and other functions of HR create
discrepancies and the whole process of HR becomes inefficient and challenging. In
general, managing such a large structure HR personnel only emphasis on only
administrative issues rather than emphasizing on strategic planning. The market
conditions and competitors strategies force GM to lean its process and depend on
productivity.
 Slide- We have tried to analyze both the approaches incorporated by the
organizations the same using two different approaches. The management of Toyota
gets more flexibility and employees of GM have more flexibility as they get to
collaborate and bargain for wages. GM respects the right to all employees to choose union
membership. covering the right of employees to organize for collective bargaining, and
encourages employees to support or oppose union membership without fear
While Toyota has been more resilient because it is on toes when it comes to get to
know the pulse of the market. It changes it's strategy according to market and
customer preferences.
Suggestions yo GM
Suggestions to GM- Cost reduction
 GM operations in over 200 countries having more that 50 production locations ,They
have to work closely with union partners to ensure a competitive manufacturing environment
and improving of operating efficiency. The issues faced by GM is primarily to manage vast
network of operations, number of people, diversified culture and environment, global
economic developments etc

They should have a more Performance based bonus instead of bonuses doled out on
the basis of time spent in the organisation. This will reduce unnecessary cash outflow
and boost productivity.
GM should shift its focus towards offering non-monetary benefits to its employees
focus on building good relationships with suppliers for a long time profit, reduce
benefits for retirees, follow strategic thinking in terms of innovation and new design
as to what customers expect.
Suggestions to Toyota : Increase the monetary benefits and a little better
retirement benefits.