Human Resource Management. Toyota - Essay Example

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Human resource management Contents Task1 4 Differences between Personnel and Human Resource Management at Toyota 4 Personnel Management Practices in Toyota 4 Human Resource Management at Toyota 4 Human Resource Management and Organisational Objectives of Toyota 5 Roles and Responsibilities of Line Managers in Toyota 5 Impacts of Regulatory and Legislative Climate on the Human Resources Management Practices in Toyota 6 Task 2 7 General Reasons for Human Resource Planning 7 Human Resources Planning in Toyota 8 Recruitment and Selection Process-Toyota Vs Tesco 9 Toyota’s Case 9 Tesco’s Case 10 Evaluation of the effectiveness of the Recruitment and Selection techniques / processes 10 Task 3 11 Toyota’s Staff Motivation Process through Rewards 11 Determination of Pay-Scales of Employees in Toyota through Job Evaluation and Other Factors 12 Effectiveness of the Reward Systems in Toyota 12 Monitoring Employee Performance in Toyota 13 Task 4 14 Cessation of Employment in Toyota 14 Employment Exit Procedures: Toyota Vs Tesco 14 Case of Toyota 14 Case of Tesco 15 Legal and Regulatory Impact on Employment Cessation in Toyota 15 References 16 Task1 Differences between Personnel and Human Resource Management at Toyota Personnel Management Practices in Toyota The Personnel Management practices in Toyota effectively focus on pursuing the concepts of diversity and creativity to help conduct the holistic development of the organisation. As a goal of Personnel Management the company focuses on rendering enhancement in the dimensions of labour flexibility thereby working on cultivation and supporting activities of employees outside the premises or operation tenure within the company. Further the Personnel Management functions of the concern also focus on enhancing the dimensions of awareness and development of existing operating methods for people relating to the administrative and engineering department. In that the individuals are encouraged to enhance their operation knowledge through the use of self study programs. The personnel managers at Toyota also incorporate the system of flexibility at work to reduce the element of work stress. Moreover the people at different levels along with the management staff of the company are continually empowered to take decisions on their own while incorporating the elements of creativity and innovation to transform or revolutionize the existing organisational environment (Hino, 2006, p.152). Human Resource Management at Toyota Human Resources Management initiatives of the company firstly focus on integrating the employees both at the individual and at the group level with the organisation in total. Thus welfare and development of the individual people in the concern are taken as an integral part in meeting the large organisational goals of the concern. Further the human resource managers also focus on enhancing the commitment level of the people in meeting the objectives of the concern. Moreover the human resources management practices in Toyota also render enhanced focus on the system of adaptability through the process of job rotations wherein an individual is required to perform different roles in the organisational setting. Management at Toyota also introduces several benchmarks to evaluate and appraise the performances of the individuals in terms of processes followed and achievements gained. Initiatives like conducting employee appraisals depending on benchmarks and thereby augmenting their pay scales based on such along with development of communication activities through the mode of briefings and cross-departmental trainings contribute in the total development of the people involved in the operations of the concern (Toyota, 2003). Human Resource Management and Organisational Objectives of Toyota The Human Resources Management processes in Toyota focus more on training the organizational people to develop their potencies to render effective servicing and in enhancing the quality aspects in terms of the services and products generated and produced. To fulfil the goals of being a customer driven enterprise coupled with rendering the best quality products the company continuously works in the development of effective training centres along the different international regions in which the company had set its branches. Through effective training the skill sets of the people are modified to match the emerging goals of the concern and also in rendering specialised services to troubleshoot solutions to different problems. Henceforth the training and other activities carried out to develop the professional skills of the people move parallel in rightly meeting the customer driven and quality development goals of the concern (Toyota, 2012). Roles and Responsibilities of Line Managers in Toyota The Line Managers in Toyota are identified as Group Leaders who’s Roles and Responsibilities can be identified as follows. Firstly the Group Leader has the responsibility in effectively scheduling the manpower requirements for the different job processes in the concern and thereby also schedules the vacations related to the same. Secondly the Group Leader also takes on the responsibility in setting the production targets on a monthly basis and thereby monitors the performances of the team members and team leaders in the concern. Thirdly the Group Leader’s responsibility also encompasses setting different administrative policies and also in formulating different corrective actions. Fourthly the Group Leader in Toyota is also held responsible in enhancing the employee morale in the concern pertaining to different levels to achieve the organizational objective. Fifthly the Group Leader also focuses on reducing the cost of the operations while also focusing on enhancing the professional potency of the people through cross departmental training facilities. Sixthly the Group Leader in addition to enhancing the safety paradigm at the workplace also tends to coordinate the activities of the different departments in an organised fashion (Liker, 2004, p.193-194). Impacts of Regulatory and Legislative Climate on the Human Resources Management Practices in Toyota Toyota effectively incorporates the paradigm of safety through the designing of healthy work standards at the workplace. The company management focuses on rendering of policies to reduce the chances of emergence of any health and safety issues and thereby works on to respond in a proactive fashion to any event of accident that may occur in the course of the operations. Toyota’s management focuses on the formulation of committees that would monitor the health and safety practices involved in the workplace based on the standards set and thereby render useful recommendations. Further the management also works in generation of safety and health awareness weeks to enhance the awareness of the individuals to operate in a safe fashion within the concern. Ergonomics as a process is rendered in the training imparted to the individuals to meet the requirements highlighted in the safety and health awareness weeks. Task 2 General Reasons for Human Resource Planning The general reasons or factors that are taken into consideration for taking into account the conducting of the human resources planning activities for the business concern can be enumerated as follows. Firstly effective human resources planning activities contributes in helping the organisation plan for its future human resources needs in specific departments and functional areas. Secondly the use of the Human Resources Planning Program contributes in enhancing the chances of adaptability of the concern in the light of the changes in the firm’s external environment. Through the use of Human Resources Planning the company can effectively highlight and administer the manpower requirements in the different departments specialised or general and thereby can formulate strategies for attracting the same from the external market. Thirdly the gaining use of Human Resources Planning technique contributes in enhancing the potential of the business concern to rightly attract and sustain a diversified pool of human resources based on different competency sets. Gaining and sustaining the required pool of human resources contributes in augmenting the competitive strength of the company in the external market. Fourthly the Human Resources Planning activities serve as a backbone or tool for other human resource activities undertaken by the company in that it helps in providing potential information to the organisational managers for future plans and actions ought to be taken (Kleynhans, 2006, p.69). Human Resources Planning in Toyota The management culture of Toyota is based on Lean Management Principles that focuses on reduction of operational and business cost. Thus the manpower requirements of the firm need to be effectively based on planned course of actions depending on the effective requirements of the different units with no chances of gaining surplus labour. Firstly Manpower planning systems in Toyota go beyond the normal course of conducting planning for human resources both in general and specialised teams. Rather it focuses more on the Problem-Solving aspect and then infers on the number of people or staffs required to effectively contribute in problem-solving activities in terms of evaluating individual skill sets and potencies. Secondly the view about the type and requirements for manpower to be selected to solve the emerging problem the company gains a survey of the customer mindset about the quality of services and products required and thereby to define manpower requirements in the concern. Thirdly the demand and supply for the manpower in the company is visualised through conducting an effective survey of other like organisations. This process helps in creating benchmarks to evaluate the current flow of human resources in the concern to match the different job processes. Fourthly the human resources management team identifies the need for creation of new job roles in the concern depending on the evaluation of existing job roles to effectively select the needed manpower. Finally in the fifth case the manpower planning and scheduling process needs to be based on the budgets or costs apportioned for the same such that the same needs to lie within the budgets made. Sixthly in order to sustain the selected skilled workforce the compensation and reward systems are matched accordingly with the skill sets of the individual employees and their potencies in aptly meeting the organisational objectives related to profitability and quality (Liker and Hoseus, 2008; Ller and Muller, 2011, p.10). Recruitment and Selection Process-Toyota Vs Tesco Toyota’s Case The recruitment and selection procedure at Toyota is based on a rigorous process involving an assessment process based on a multi-stage level. The main parameters that the human resource managers endeavour to understand or view relating to the different job applicants is their commitment level to the organisation’s activities and also their ability to operate in a team framework. Potential of the people to effectively communicate with others in a team setting is considered one of the most desired parameters that are effectively evaluated by the Toyota management. Toyota’s management focuses on gaining the right recruits through visits to both professional and graduate colleges and institutions from where people are selected by organising career fairs, campus interviews and also through the mode of rendering corporate presentations. Moreover the company has also developed effective partnerships with other professional bodies to gain hold of quality applicants to meet the concern’s needs (Toyota, 2011). Selection process in Toyota involved different types of tests relating to Job Previews, tests pertaining to the evaluation of Cognitive Skills and Ability of the individuals, Personality and other Aptitude Assessment tests and also the potential of the people to effectively coordinate different actions and activities. Individuals or applicants are also subjected to a six hour test where they are evaluated based on their problem-solving potencies of operational and manufacturing problems occurring in the workplace. Finally the screened applicants are interviewed by Group Leaders acting as the First-Line managers in the concern along with the Team Leads to evaluate one’s physical and mental potency in fitting to the job environment (Catano, 2009, p.18). Tesco’s Case The recruitment and selection process at Tesco focuses on recruiting the effective number of human resources for a particular job opening in the concern at any given point of time. Recruitment process is commenced by the organisational managers through advertisements of job opening on the audio-visual media and also through the incorporation of print media like magazines and journals related to recruitments. Moreover the company’s online portal along with notices rendered in the company’s internal board also serves as potential mediums for posting the different job requirements to attract the right quality of manpower. The selection process of the concern to adequately fill in the different company posts advertised is conducted through the initial screening of the Resumes of the different applicants. After the initial screening of the Resumes the selected ones are sent to the Assessment Centres pertaining to the different store outlets. There the people are subjected to different tasks and tests through which the problem-solving and team-working skills of the people are properly evaluated in terms of the concern’s needs. Finally the screened applicants are again subjected to another round of interview before being rendered the final appointment letter by the concern (Tesco Careers, 2009; Tesco Careers-a, 2009). Evaluation of the effectiveness of the Recruitment and Selection techniques / processes Comparing the recruitment process of Toyota and Tesco it is learnt that the recruitment process or technique of the latter involves a comprehensive view taking into account broadcasting and print media and also through the mode of largely incorporating the use of the online medium. Tesco also encourages the rise of internal recruitments in the form of referrals from staffs to the advertisements rendered in the notice boards. Toyota on the contrary depends more on gaining recruits from campuses of professional institutes, career fairs and also through other potential partnerships. Though the recruitment process of Tesco compared to Toyota appears to be more costly in deal however the same contributes to the gaining of large number of potential applications than that of the latter’s. Comparing the selection process of both Toyota and Tesco it is observed that both the organisations focus largely on evaluating the problem-solving skills of the different applicants along with understanding their ability to communicate and work in a team setting. However, Toyota’s management tends to also assess or renders importance to the understanding of the Cognitive Ability and Personality of the individual applicants to meet the requirements of the different posts. Task 3 Toyota’s Staff Motivation Process through Rewards The human resources management team at Toyota designs special rewarding processes and schemes to enhance the loyalty parameters of the highly committed employees along the different departments and thereby to effectively sustain them in the concern. Rewards are generated to the employees in effectively involving them in teams and empowering them to take creative and innovative decisions on their own. Apart from such the individual potencies of the individuals are recognised in the different team meets. Financial rewards are also generated to the people in terms of enhancing their pay scales on basis of experience and expertise reflected in the course of the company’s operation. Rewards are also generated to motivate the employees not only on the basis of their performance but also depending on other parameters like attendance. Rewards are generated to those individuals that have achieved the perfect attendance criteria of around 60 percent as in effect during 2005. Herein non-financial rewards like encouraging them to bear their names on hats worn along with gaining a brand new car are effectively generated by Toyota (Besser, 1996, p.182-184). Determination of Pay-Scales of Employees in Toyota through Job Evaluation and Other Factors The pay-scales of the employees in Toyota are generally determined based on three main factors that can be highlighted as follows. Firstly the parameter of working or performing under stress is effectively evaluated before deciding on an individual’s pay scale. Secondly an effective break-up has been designed by the human resources management team of the company highlighting the different factors related to an individual’s wages like ‘Personal’, ‘Job’ and ‘Ability’ parameters. The ‘Personal Wages’ of an individual are determined through recommendation placed by Supervisors that accounts for the first 40 percent of an individual’s pay. The second 50 percent amount of an individual’s pay scale is rightly attributed to the process of job evaluation conducted. Metrics pertaining to the Job Evaluation paradigm of the employees relate on determining the salary and wages received by them. Finally the third part or the remaining 10 percent of the amount of the employee’s pay scale is based on one’s ‘Ability’ relating to the performances reflected. Herein the skills and expertise of the individual employees are evaluated to adjust the pays received by them from the concern. Thus Toyota’s management tends to take into account or encompasses the above factors to decide the pay scale received by the different individuals (International Labour Organisation, 1993, p.91). Effectiveness of the Reward Systems in Toyota The effectiveness of the reward systems of Toyota can be evaluated from two different situations. In the first case the rewards for employees are generated based on the potential of the individuals to generate new ideas for sustained and continuous improvement of the job processes in the concern. The case reflects that for implementation of each of the new ideas generated by the employees for continuous improvement in Toyota’s Kentucky plant the workers receive a reward certificate of $20. Through accumulation of such to around $500 the employees can either cash the certificate or go in for further saving (Tozawa and Bodek, 2001, p.211). In another event the company management also tends to excite motivation in the staffs and employees both in the dealerships and also of their own manufacturing and service outlets through generation of rewards based on ratings rendered by the customers. The higher the amount of rating gained from the customers through surveys the higher was the amount of reward, financial and otherwise generated to adequately motivate them to render enhanced services (McShane, Glinow and Sharma, 2011, p.246). Monitoring Employee Performance in Toyota The Performances of the Employees are monitored and evaluated by the management of Toyota based on a checklist designed that would rate the different individual employees in terms of parameters related to Behaviour and Skills and Knowledge Reflected. The behavioural parameters on which the employees are evaluated encompasses subsets like Adherence to the Values and Objectives of the concern, Ability and the Willingness to Adapt to a Changing or Flexible Job Environment, Complies with the rules relating to Safety and reflects due diligence in Wearing Uniforms. Finally the behavioural parameters also encompass the factor of Daily Attendance as one of the Primary Standpoints in evaluating an individual. Relating to Skills and Knowledge parameters the evaluation criteria strictly tends to monitor whether the individual employee rightly meets the Quality Standards in their performance rendered. It also tends to reflect on the Participatory Evidences relating to working in teams and in rendering effective Problem-Solving Skills. Finally the employee evaluation process also focuses on the Communication and Team Building Skills of the individual employees in Group and Team Settings. These are the different parameters based on which an individual is rightly evaluated by the management of Toyota (Smith, 2012). Task 4 Cessation of Employment in Toyota Toyota tends to shack or terminate an employee from his or her course of duty in the company if evidence is gained that the individual has effectively gone against the values of the company. For example a person found to gain employment in a supportive or additional vocation while tending to operate in the company may be terminated on being caught. Again cessation of employment may occur such that the individual tends to remain absent for a long period of time that becomes unauthorised in nature thereby leading to termination. Sabotage or taking resort to erroneous activities while operating within the company to gain access to additional information or income and thereby using such for one’s own betterment without the notice of the management body also leads to termination or cessation of employment in Toyota (Karan, 2001, p.128-129). Employment Exit Procedures: Toyota Vs Tesco Case of Toyota The exit procedures in Toyota pertaining to employment relate first to the process where a group of employees in the concern first draw the concern of the management to an issue to the first line manager. On condition where the issue fails to get resolved it is escalated to the higher management. Finally the company works on the process of reviewing based on a panel of team members or peers such that the concern or issue is reviewed by three general team members, two managers and an additional facilitator. Decisions taken by this panel stands as binding in cases relating to the termination of employment in the company (O’Brien, 2008, p.93). Case of Tesco In Tesco the employees are terminated by the management or their reporting supervisors in that verbal warning fail to result any potential changes in their behavioural patterns towards their work and disciplinary matters in the concern. These people are righty terminated by the concern through the issuance of a termination letter thereby suspending or terminating one’s normal course of employment in the concern (Tesco, 2000, Ch.1). Legal and Regulatory Impact on Employment Cessation in Toyota Toyota is held by the legal and regulatory bodies in not being transparent with its rules relating to the cause of termination of employment of its employees. Legal experts sue the firm for not properly disclosing the facts related to the non-compliance of safety and matters related to company values and ethics. 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