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The Human Resources Management at Toyota

Info: 1351 words (5 pages) Essay
Published: 1st Jan 2015 in Business

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Toyota Motor Corporation is one of the world’s second largest successful companies in making automobiles by sales and production after General Motors.

The secret behind their success is that TMC management has relied on the right selection for their employees whereby TMC can differentiate between applicants which one can fill a particular job in terms of their performance in the job to achieve balance and harmony between the requirements and duties of the job and between their attributes, qualifications and characteristics as well as development of the human element which enables careers development in the organization because achieving the goals depends on it which is considered the most valuable resources to the management and the most influential in productivity at all. Also, TMC administration develops and improves the HR as it is the cornerstone to enhance the organization capacity and enable the organization to keep up with current and future challenges because they believe that HR is the reason for high profits or low profits in any corporation. HR can strongly contribute in achieving any corporation objectives and make it profitable and can be a financial burden on the corporation.

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TMC creates a good working environment for their employees and provide them with more career opportunities beside providing them with ØلمØدية ÙˆØلمعنوية incentives to mobilize their productivity and creativity. Also they organize educational programs. Moreover, the administration is committed to train and develop all of their employees through training programs because they believe that learning is essential to increase the efficiency of the organization and the employees, so TMC and its subsidiaries provides appropriate opportunities for its employees to pursue higher education and specialization in their fields. As to achieve the best investment in HR, TMC has developed a comprehensive policy for transferring and reassigning among their branches and offices in the world.

Analyst in the automobiles sector estimated that if Toyota continued this way it will overcome General Motors and become the first largest automobiles manufacturer in the world.

Three keys of HRM activities…………

I would like to work in private sector organizations, and Toyota is one of these organizations. Their Human Resources Department Functions are interesting because it includes a variety of activities and they can manage all the HR functions.

Compensation and Benefits

Salaries, bonuses, sick leave pay, compensations of workers and insurance such as dental and life are covered by compensation and benefits. Developing and administrating a benefits compensation system are the responsibilities of TMC HR Dept. this system serves as an inducement and make them to guarantee that the recruitment and the retirement of talented and skilled employees will stay in the organization. The compensation and benefit manager explains for the hired employees their benefits package by meeting one by one or in small groups. Finally, employees are obligated to make an informed decision and their signature is needed for processing purposes.

Employee and Labour Relations

These days the unethical practices and misbehaviour has increased in workplace, this includes race, gender, religion discrimination and sexual harassments. TMC ensures that all of there employees are fairly treated according to their compulsory abidance to the law rules and regulations. Concisely, if there were any authority abuses by the supervisor to lower employees, they have a place to turn on and the TMC HR Department will get involved as arbitrator and liaison the employees and legal entity to solve this issue in a proper way.

Safety and Health

TMC is concerned for their employees overall physical and mental well-being and believes that healthy employees will provide the cornerstone for better quality of life. So, they do their best to provide them with additional opportunities and their families to receive medical treatment which will contribute to life quality for employees and maintain the effective contribution to the organization.

HRM academic models

Harvard Model

This model sees that employees as resources but not like other resources as they cannot be managed. In other words, it concentrate on people outcomes and business performance and stakeholder interests are does not ranked

This model states that diversity of the personal relation activities can be dealt with four human resources categories or polices

Human resource flow

This is about managing people flows into and out of the corporation which means decisions are made on recruitment, selection, placement and promotion.

Employee influence

This is bout how much authority, responsibility, and power is willingly delegated by the management and by whom.

Reward Systems

States how employees get rewarded for their work whether it was externally or internally and these rewards should be pay systems and benefits such as health insurance. These leads to motivation and employees job satisfaction.

Work system

Is the arrangement of people, information, activities and technology in all of the organization levels.

These four HR policies, leads to other HR policies which are called the four Cs and these 4C’s are commitment, competence, congruence and cost effectiveness.

I believe that TMC follow the Harvard Model because

And agree or DIS both are committed to employees; needs as long as the measures taken to meet those needs remain consistent with the strategy of the organization and management aims. Guest claims his model is more straightforward that the Harvard model because he simply prescribes that improved implementation of just seven HRM policies will result in better HR outcomes

Hard approach

This model considered hard HRM one because it emphasizes that employees are treated as means to achieve the strategy of the organization. This approach focuses on the organization and how can it respond to the external environment.

This approach argues that Human Recourses cycle affects the individual and organization performance. And there are four functions which are:


Select people who are able to perform a job in a best way


Appraising the employee performance to facilitate the fair distribution of rewards and linking these rewards to high levels of management



Enhance employees current performance likewise to prepare them to perform in future positions that they might hold.

Harder approach is considered hard HRM as it is based on strategic control, orgnizational structure and managing people systems


Works Cited

Baehr, Ann. Human Resources Development. 2010. 27 9 2010 <http://www.streetdirectory.com/travel_guide/12514/careers_and_job_hunting/how_hr_works_to_get_the_job_done.html>.

Human Resources Managment Contribution. 26 9 2010 < http://www.oppapers.com/essays/Human-Resources-Management-Contribution/289845>.

Liker, Jeffrey K. and Michael Hoseus. Human Resources Executive Online. 1 11 2008. 28 9 2010 <http://www.hreonline.com/HRE/story.jsp?storyId=142379047>.

McNamara, Carter. Human Resources Management. 27 9 2010 <http://managementhelp.org/hr_mgmnt/hr_mgmnt.htm#anchor727105>.

Objectives of Human Resources Managment. 4 10 2010 <http://www.scribd.com/doc/2466214/Objectives-of-Human-Resources-Management>.

Strategic Human Resources In World Airline Industry. 30 9 2010 <http://www.oppapers.com/essays/Strategic-Human-Resource-Management-World-Airline/138251>.

Toyota. 27 9 2010 <http://www.toyotauk.com/main/download/pdf/Human%20resources%20at%20TMUK.pdf>.

Appendix 1

SEDD Organizational Structure


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