ID: 1913147/1 May 18, 2020

E. Masters of Business Administration

Subject: Human Resource Management.

Research’s case: HRM In Toyota Motor

Student # – 1913147/1

Student name: Elsayed Ahmed

Tutor: Dr. Bourantas &Konstantina Sardini

Submission Date: 2020- May 23rd

Total Words : 3291

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Research Contents: Page #

Abstract …………..…………..…………..…………..…………..…………..………….. 3

Section 1.00 Toyota motors introduction and objectives ………..………. 4

Section 2.00 Toyota Motor: Strategic HRM …………..…………..………….. 7-16

i. Evaluation

ii. Main roles

iii. Recommendation

iv. Recruiting & selection

v. Training& development,

vi. Disciplinary&Greivance

vii. Voluntary Benefits

viii. Wellness & Safety

Section 3.00 Toyota’s HR Policy …………..…………..…………..…………..… 17-19

i. Basic Benefits

ii. Anti-Discrimination Laws

Section 4.00 Toyota’s SWOT analysis …………..…………..…………..………… 20-22

i. Strength

ii. Weaknesses

iii. Opportunities

iv. Threats

Conclusion &Recommendation. …..………………………....…………..………….. 23

Appendix …………..…………..…………..…………..…………..…………..…………. 24-29

References ………….………..…………..…………..…………..………….………….. 30-31

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1- Abstract:

Many organizations have identified human resources as a basis for rapid development, through

exceptionally top workplace skills, characteristic corporate structures, internal processes, and

systems. Therefore, qualifications are acquired. "(…)the basis of competitive advantage has

changed from continuity to creativity and flexibility, (Lawler, Edward E.1981)", "(…) evolving

with growing globalization in the commercial position, shifting workforce dynamics, focusing on

profitability through growth, technological improvements, intellectual capital and observing

communities have enabled substantial increases managing human resources

(Devanna,Fombrum and Tichy, 1981)".

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Section1:
Toyota motors introduction and objectives

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Toyota is a well-known brand name and is indeed one of the automobile industry leaders, and

it’s headquartered is in Japan. Kiichiro Toyota formed the firm at the end of 1937 as a spin-off

of his father's car production agency (Toyota.G, 2019).

Toyota started expanding its company around the world after some ups and downs, mainly when

it began manufacturing small cars in the early of the '70s. It became successful in both the USA

and Europe, establishing its superiority in the automotive business as it offered vehicles at

affordable prices. "(…) by 1982, Toyota Motor Company and Toyota Motor sales combined into

Toyota Motor Corporation in a single entity "(Toyota motors)." According to the 2020 Annual

report per segment, cars are priced at about 4,338.3 t with a severe market environment and

raising sales by US$ 124,014 million per segment "(Statista Market Forecast, 2020)".

Toyotas' objective is to run a range of non-automotive activities in the 21st century, including

financial services for the purchase, lease of cars, land creation, web-based vehicle information

networks, marine, and aerospace companies. besides, conducting of invention, consulting, and

research relating to each of the other items with the utilization of such designs and analyses

including any businesses incidental to or related to any of the other things with a basic principle,

to precede economic atmosphere and give the society a sustainable development and reliable

products by ensuring quality and innovation, "(Toyota motors)."

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Additionally, Toyota's HRM system considers four objectives as follows:

 Organizing integration (This purpose accomplished by the intensive use of the departments

subordinated to the organizational objectives. As part of this goal, the health of workers has

also attained full attention)

 Commitment to do that, two approaches have pursued (Firstly, Toyota suggested the

recruitment staff in its plants and initiatives as recommendation systems, efficiency circles,

and employee interaction strategies are used to obtain commitment.)

 Flexibility and the adaptability The Team's authority, instead of the individual's unique role

possessing all the powers, had opened the way to recognize the organization's versatility.

These teams are task-based and, depending on the situation, maybe disbanded or modified

by the organization. The adaptability trait is institutionalized by focusing on multi-skills and

job rotations.

 Quality To do so, the methods of equity and team patience used to guarantee the consistency

of the goods. Moreover, a series of actions hired, such as time and motion analysis,

benchmarking, continuous process development, and employee engagement in achieving

this goal.

 Toyota is also committed to protecting the environment by decreasing the pollution "(…)

complying with the To reflect market trends and even interior trends more friendly to the

general public, and by 1998 Toyota has received the US Environmental Protection Agency's

Global Climate Protection Award.( CORNELISSEN J. )

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Section 2:

Toyota Motor: Strategic HRM, Evaluation, main roles, recruiting&

selection, training& development, Disciplinary&Greivance, Voluntary

Benefits, Wellness & Safety:

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A- Strategic HRM "(…) like every strategy, has a mission, vision, environmental analysis, plan

design, implementation policy, and plan evaluation (Lundy and Cowling, 1996)". "(…) strategic

human resource planning defined as the mechanism for identifying the work specifications and

qualifications and then choosing the best staff for the positions. It also includes when or how to

recruit, and what intent to recruit. The strategic human resource has three main components:

"(Bandt & Haines, 2004)". As following:

 Where a company decides the potential human resource needs and requirements, also

setting priorities and a mission for the human resource ( The estimation of human

resources").

 "The formulation of a human resource strategy," and this involves the mission, vision, goals,

and aims for the strategic management of human resources.

 "Human resource planning," which is the integration of human resource forecasting and

strategy formulation.

B- Toyota performs an annual evaluation and feedback of the human resources to achieve a

clear understanding of the workforce in terms of number, employee expertise, and their

principles., Besides, the company performs an external climate analysis to consider labor

market dynamics and the overall industry climate. That helped Toyota Motor Corporation to

recognize the discrepancies between its existing employees and potential requirements (Liker,

2004). The evaluation goes through two main groups with twenty aspects, including self-

assessment, first Group of Aspects: Genba, Kaizen, Quality and its scale from 0 to 10, the

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second group is the performance and behavior, and it scales from 0 to 5. (Toyota Global 2019)

"appendix 1"

Recommendation:

The evaluation's performance includes metrics on which the employee is evaluated. These

metrics should be based on their job description, both developed by of which the human

resources manager . Various kinds of evaluating systems can be used, and it's usually up to

the Human resources manager as well as employee evaluation forms. Human resources

manager also has to make sure that every manager in the organization is qualified and trained

on how to fill out the evaluation forms, but .more importantly, how to review job performance with

the employee. Then the Human Resources manager tracks the deadline performance and sends

out e-mails to those managers updating them by the why and the time to write the evaluation .

Strategic human resource management helps Toyota Motor Corporation accomplish

its corporate goals. Enhancing the company's profitability by ensuring the organization

has sufficient staff and expertise at all stages and to understand the roles work, tasks, and

targets for each employee are established from the standpoint of both the business targets and

HR development targets and for each division, including:

1- Managers

A- Administrative and engineering employees (Hoshin Management)

 Activity for kaizen (continuous improvement) on a company-wide scale

 Measures for maximizing organizational output

B- On-the-job development (OJD)

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A four-step method for promoting human resource development through the practice of

regular business activities and guidance

C- Management at Toyota: Overall image of management at Toyota and effective

worksite management. “(TOYOTA MOTOR CORPORATION GLOBAL)”

2- Employees: General Employees (problem-solving, Ji kotei-kanketsu (built-in quality with

ownership) and shop floor employees (Skills and roles of management and supervision,

Problem-solving, production, and basic skills. More details ("Appendix 1 & 2").

C- Recruitment & Selection: Hired employees should fit well into the organizational structure and

must be prepared for the particular job they've enlisted. They will have fundamental principles

and competencies suitable for their success (Armstrong, 2000). The recruitment, selection, and

performance management are, by far, the most critical aspects of today's human resources

management field. For these things, thus, businesses pay immense attention. The goal of the

company is to attain superior profit or performance; the company gives the primary interest in

the method of interviewing and selecting candidates also, choosing the right applicant for a

particular position.

When it comes to recruitment, a company can utilize its workforce from internal and

external resources; also, the recruitment process will either internal or external

(Leopold,2009,p182-185);

Therefore, Toyota's HRM Follows internal and external recruitments.

 Internal recruitment (Can be defined as recruiting candidates within the company"

(Draft, 2010, p318) and it has two advantages, less costly than external recruitment

and creating higher commitment, development, loyalty for employees, but in Toyota

company searching for the suitable candidates by the eternal recruitment

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 External recruitment is known as "recruiting newcomers from outside the

organization" (Draft, 2010: p318). The most significant advantage of external

recruiting is that it enables companies to accept new talent into their business. Fresh

workers will come with fresh ideas, innovative concepts, new processes, and,

eventually, new energies. Toyota uses such methods of recruiting (as ads, unsolicited

requests, and resumes, online hires, executive search companies, public hiring

agencies). And the most popular way of advertisement and online recruiting, and

advertises to hit all potential labor opportunities in all regions (Kelly, 2008: p39-40).

Also, "(…) Toyota makes sure that the interviews and tests Produced to a potential

candidate, do not become a disadvantage to any candidate or group of candidates

(Liker, 2004)". Besides, Toyota uses "educational institutions" recruiting. Through this

process, Toyota encourages students from various colleges to apply for such a

program, and local career centers organize it. (www.toyota.co.za, accessed by May,

2020

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 For both internal and external recruitment and Selection, Toyota’s a recruitment

process or procedures: “( Toyota Global, 2011)” contains:

1- Complete online application

2- Online assessment (aptitude test)
3- Assessment center at Toyota
4- Final Interview
5- Conditional offer for employment
6- Final employment checks
7- Unconditional offer for employment
8- Open day for new recruits at Toyota
9- Commence employment

D- Training and Development

The central concept of HR in the company invests in the development of the (on job training)
“OJT” learning program (Liker&Ballé 2013 ), based in the Toyota “Way method”.,
Toyota is committed to human development by following the theory “Monozukuri” is about
developing people.” Every day changes driven by human intelligence are necessary for
sustainable growth”.

Toyota Way 2001 method (established in April 2001, defines the standards and working
practices of all employee’s mandatory follow the guiding principles to apply at Toyota. And two
core pillars drive the Toyota Way method: “Continuous Development. “and “respect for
people.” Appendix 3”

Besides, Toyota concerned with the physical and psychological needs of the staff and supporting
a view of improving their life.

HR role extends not just to the employees but also to their family members to provide improving
business. As a result, the workers of the company remain employed positively at work. This
condition offers a productive approach to managing the automobile industry.

Additionally, (Jhon Shook,2007) has sorted Job methods training at Toyota as following;
- Replaced first by Shingo’s “P-Course”: “Production Course” –
 one-week course taught monthly primarily in the latter half of the 1950s
 The content was essentially IE-based Kaizen

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 More detailed and broader than JM

- Replaced later by internally developed Standardized Work & Kaizen training
 Education & Training Department
 “Production Survey Department,” later re-named in English “Operations
Management Consulting Division.”
 More detailed and broader (system view) than P-Course
E- Disciplinary&Greivance, All Members are treated with dignity

After the job offer has made and the candidate accepts the offer; the employer and the candidate execute

a contract for employment; generally, some of the details included in the contract are Grievance and

Disciplinary procedures, For example, a two-way communications foster commitment, ( Kumar R.,

2011).

Also, Toyota has programs that guarantee two-way communications and fair treatment of all

employees grievances and disciplinary matters high commitment firm, ( Also, issues such as

workplace conflict should also go through relevant consultation procedures. For example,

Investigating Discrimination and Harassment Complaints procedures (Toyota UK, Contract )

- Confirms the commitment of the Company to provide an environment of mutual trust

and respect
- The Dignity at Work Policy
- Defines in more detail harassment, bullying, and victimization
- Describes the informal and formal procedure, emphasizing the intention that most
issues will be resolved informally
- Explains the wide variety of Members who could approach with a concern “Appendix
4.”
- letter sorting the problem.
- meeting to discuss.
- disciplinary decision.

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F- Voluntary Benefits

Many employers provide these kinds of benefits voluntarily:

Pay for time not worked, Insurance protection, and retirement plan (Lecture, NYC)

Although in Toyota the voluntary benefits sorted as following “(Benefits, T; 2019)”:

1- Insurance, Health & Wellness 4- Professional Support

 Critical Illness Cover  Diversity Program
 Income Protection  Apprenticeship Program
 Life Insurance  Job Training
 Health Cash Plan  Professional Development
 Health Insurance
 Death in Service
 Vision Insurance
 Dental Insurance
2- Financial & Retirement 5- Vacation & Time Off
 Pension Plan  Sick Pay
 SIPP  Annual Leave
 Corporate ISA  Sabbatical
 Save as You Earn  Volunteer Time Off
 Share Incentive Plan  Bereavement Leave
 Performance Bonus
 Stock Options
3- Family & Parenting 6- Perks & Benefits
 Childcare Vouchers  Bike to Work Scheme
 Work from Home  Employee Discount
 Flexible Working  Commuter Checks &
 Maternity & Paternity Leave Assistance
 Dependent Care  Season Ticket Loan
 Military Leave  Gym Membership
 Family Medical Leave  Car Allowance
 Unpaid Extended Leave  Free Lunch or Snacks
 Company Car

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G- Safety and wellness ----- “(Safety T, 2020 )”

Toyota Motors is committed to delivering holistic approach to health and safety policy and a

secure and stable work atmosphere for its workers. Every Toyota motors member of staff is an

important benefit to the company to take its duty seriously to improve the safety and wellness of

all its employees.

Also, Toyota Motor is actively introducing steps intended to maintain a safe, friendly, and secure

work atmosphere for all of the company's employees.

- Employee Safety and Health

Toyota Companies will continue to implement the occupational safety and health

protection program in parallel with performing risk evaluations in the future, such as

training workers to behave appropriately at the workplace. Therefore, the business would

aim to meet the target of zero working days missed due to injuries at work. “Appendix 5”

- Preventing Accidents at Work

Toyota Industries is involved in ongoing efforts to avoid near miss accidents and

accidents that may lead to lost workdays, bodily injury or fatality. “Appendix 6”

- Occupational Safety and Health Management System

The program also helps improve the management efficiency of the company by

increasing the safety and health care levels and reducing the risk of injuries at work.

Toyota Industries has followed a multilayered approach to its protection and health

management program through the implementation of the system at the level of the

supervisors, executives and company divisions, with an emphasis on labor-intensive

(Appendix 7)

- Creating suitable Workplace Environment

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Toyota Industries is making every attempt to give all its workers a safe and friendly

workplace.

The organization is adopting steps to reduce vibration, dust, and other conditions that can

contribute to diseases such as welding fumes. Toyota Industries is also improving the

human engineering aspect of its workplaces to make them more friendly, such as

protecting employees from heat and reducing the burden of labor tasks ( Appendix 8&9)

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Section 3:

Toyota’s HR Policy

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A- Basic Benefits

Explore the various perks of working at Toyota motor – from competitive pay and

workplace insurance to a full-service, on-site wellness facility, and multiple options for

paid time off.

1- COMPETITIVE PAY

Section 1.00 Payment for a well-done job. Toyota motor ensures that wages are
competitive, and each year they participate in an external wage survey. Also, twelve-
monthly analysis of employee wages and twice-annual hourly rates. Then, pay for all
the hours, whether in the workplace or on the production line workers

2- REWARDS & INCENTIVES

They are offering a variety of bonus payments to increase the base salary for
employees. For example, team members can earn an annual bonus based on
individual achievements and the company.

3- VACATION & TIME OFF & sick leave

Currently, permanent full-time team members are entitled to receive 19 days of Paid
Time Off during the year their first anniversary falls, and gain additional time-off after
further years of service. Therefore, the staff is entitled to 14 planned holidays off,
nine formal holidays, and five days of holidays during Christmas and New Year.

Although, 75% of employees with experience of Less Than 1 Year say that their
PTO consists of 15-20 days of paid vacation and sick leave. Whereas, 75% of
employees with 2 to 5 Years say they receive 10-15 days of paid holiday and sick
leave as part of their PTO...”( Toyota PTO.2020)”

B- Anti-Discrimination Laws:

Overall, In 2002, concerning women 's role, Toyota pointed out its direction and strategy of

women's participation, focusing on cultural awareness, change management within the

organization, reviewing its policies concerning female workers, and taking measures to

create a pleasant atmosphere for women to participate. And, Toyota achieved diversity and

equal opportunities in three main points,

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o Allowing for women to work and raise children.

o Assisting in women's careers.

o Reform the working environment and employee cultural awareness.

o Also, they have flexible working hours, child care facilities at business sites,

“Appendix 11” shows the percentage of hired women under various category

 Disabled employment:

“(…) Toyota has assigned a job consultant to each office, created a consultation hotline

that ensures privacy, and introduced a different holiday system that can be used by

employees for going to the hospital or other clinics. Furthermore, to ensure that persons

with disabilities given fair opportunities, the company sends in sign language interpreters,

provides a variety of support tools, and make workplace improvements as needed. In

terms of facility, they are creating workplaces with improved accessibility as required by,

for example, providing accessible parking spaces, universally accessible toilets, and

distributing guidebooks to help other employees better understand disabilities

(CORPORATION. T. Employees) (…)” .

Moreover, Toyota employed 256 persons with disabilities by June 2019. Also, the

employment rate increased from 2015 to 2019 from 2.14 to 2.33 “Appendix 12.”

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Section 4:

SWOT analysis

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- Strength

 The company is conformity with government –s and regulations.

 Also, it Complied with all necessary permits and licenses.

 It Complied with all tax law.

 Complied with Labor Law.

 IT has an automatic payroll system.

 Toyota followed a bi-monthly payroll payment.

 Always provided the new employees with offers letters.

 It has Clear policies on employee benefits.

 Prompt feedback to employee concerns.

 Recognize and reward employee achievements.

 Each employee has a hard copy of the company code of conduct.

- Weakness:

 Lack of organizational commitment and high employee turnover can increase

recruitment costs and reduce organizational productivity.

 Has not provided sexual harassment training for its employees yet

 High job stress and consequent low workers’ morale makes the workforce less
productive.

 The misalignment between some branches ’ leadership style and its core strategic
objectives can make the business organization directionless.

- Opportunities

 Growing and developing world markets

 Increase Market for efficient cars

 Increasing interest in advanced electronics cars

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- Threats

 The company had a bullying accident that led to suicide action.

 Competitors innovations

 Increases in the raw material cost

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Conclusion.

Toyota is one company that has given due attention to these fields of human resources. The

consequence is that in today's industry environment, Toyota hits its height of growth. Selecting

correct recruiting and screening procedures and even using successful results among many success

factors. Control structures hold the most influential roles. In comparison, Toyota has regularly

demonstrated its success alongside significant competitors such as General Motors and Volkswagen.

Toyota accomplished this competitive advantage through best practices in human resources such as

recruitment, selection, and performance management.

Recommendation

In the twenty-fifth century, where globalization, changing technological environments, and innovation

exist, the organization needs to reinvent its HRM distribution approaches to practice coordination

strategy.

Japanese culture adopts a nationalistic form of ideologies leadership, which closely linked to

dictatorship. This situation has created a scenario where the efforts of the staff members form the

design methodology, which is guided by the organization's strict principles.

Strongly recommend for Toyota motor's HRM to follow The Process for Implementing Compensation

Strategy starting with internal and external compensation, Job evaluation, Types of pay system, types

of payment, and following the legal apply theories.

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Appendix:

Appendix 1:

Appendix 2

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Appendix 3

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Appendix 4:

Appendix 5:

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.Appendix 6:

Appendix 7:

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Appendix 8 :

Appendix 9:

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Benefits T.

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