Human Resource Management: Toyota - Assignment Example

Organizations have been formed to earn economic profit and decrease the cost associated with it. Among different departments, the name of Human Resources Department is one of them; responsible for managing the workforce accordingly. Planning lies in almost everything in an organization and thus it lies in Human Resources (HR) as well. Human resource planning has been traditionally used by organizations for ensuring that the right person is placed in the right job and at the right time. Human resource planning occurs in the broad context of strategic and organizational planning of business involving forecasting the future needs of an organization in terms of human resources and the way in which it will be met.  The main perspective of this assignment is to critically analyze the human resources-based function of a selected organization and the company which has been selected for the same is Toyota Inc.  

Toyota is basically an auto manufacturing company, with its headquartering located in Tokyo, Japan. The name of the company has been abbreviated with the name of Toyota Motor Company (TMC). After the names of General Motors and Volkswagen, Toyota is known as the 3rd largest automobile company in the world.

It was 1937 when this great company has been founded by Kiicchiro Toyoda. TMC is basically a subsidiary of Toyota Group, one of the largest conglomerate groups in the world, both in terms of size and revenue recognition as well. The shares of the company are registered on three different stock exchanges of the world, which predominantly are the New York Stock Exchange (NYSE), London Stock Exchange (LSE), and Tokyo Stock Exchange (TSE).

Toyota made 7,308,039 units in the fiscal year 2011. Apart from that, the company also earned net revenue of Japanese Yen (JPY) 18.583 trillion in the fiscal year 2012 with a net income of JPY 283.55 billion. The company currently has more than 300,000 employees working in around 60 countries of the world (Financial Highlights of Toyota, 2012). The shares of the company are very famous among the general public and most of the investors think that it would be a wonderful choice to invest only in the stocks of Toyota merely because of its high growth rate and strategy to comply with the effective compliance with both internal and external stakeholders.

HR planning in Toyota
Toyota is one of those companies which bounds with ad hoc and perfect strategies both in marketing and Human Resources viewpoint. The company complies with all the sufficient knowledge and information about the Human Resources functions and has great knowledge about all the labor laws (Christopher & Jain, 2010, 475).
Toyota Inc equips their human resources manager and heads regarding managing their workforce accordingly and effectively as according to them, it is the most important and essential function for them. The company has a perfect loyalty and promotion system for the employees from which the motivation level of the employees enhanced tremendously well. Toyota is one of those companies which have a very low turnover rate merely because of its human’s friendly strategies. By far and large, it could be said that Toyota Inc is moving with a perfect human resource policy from which they can attract the recognition of more and more employees. 

Human resource policies refer to the formal guidelines and rules that are put by businesses in place to train, hire, reward, and assess the members of their workforce. Sound human resource policy is very essential in the growth of any business or company (Poole, 1999, 457). One of the greatest human resources policies initiated by the company is the utilization of management by objectives (MBO) in which the management gets the employees to participate in different decisions. Each employee can initiate and share their thoughts and every thought of the employee is to entertain accordingly and with efficacy. Toyota Inc respects their employees and that is the main thing why their employees are always satisfied with the functions and strategies of the company as a whole. Toyota Inc always addresses the following basic issues of human resources while placing their personnel policies: employee classifications, equal employment opportunity policies, paydays, workdays, and pay advances, break periods and meal periods, overtime compensation, payroll deductions, holidays vacation policies, personal leave (voting, jury duty, etc.), performance evaluations, sick days, performance improvement, salary increase, termination policies, which is one of their major strengths as far as managing their workforce is concerned (Anyim, Ekwaoba & Anthony, 2012. 245).
Advantages of Human Resources Planning in Toyota
It increases the satisfaction level among the employees
It Increases the Job Security of the employees
It increases the level of planning and working condition herein Toyota Inc
It increases the involvement of the employees towards different decisions for the sake of the company


Disadvantage
Toyota Inc’s such leniency towards their employees may endanger their situation in the future as companies many rely too much on their employees
Conclusion
Organizations always strive extremely difficult to enhance the level of their financial profit and there are certain strategies, which the companies undertake during their operational activities. Organizations have to consider numerous things before their operational moves. Inevitably, organizations always try to increase the shareholder’s equity from different angles (Walker, 2012, 19).
The human resources department is one of the most crucial departments for an organization and the planning relates to this department is known as Human Resources Planning (HRP). The main theme of this paper is to analyze the HR policies and planning of Toyota Inc. From the entire paper, it is found that the company is moving at a perfect pace with effective and perfect human resources policies and strategies which is strengthening its position in the market as well as in the eyes of its employees as well.