Human Resource Management and Leadership Strategies

The provided report critically examines the recruitment and selection process of Toyota Motor Corporation, highlighting the importance of managing human capital and leadership management for organizational effectiveness. It summarizes various HR development models, including situational leadership, four-frame work approach model, and provides a detailed analysis of effective leadership models that can help build a strong staff and workforce.

Managing Human Capital and
Leadership

Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
TASK 1............................................................................................................................................3
Analyse the approach of the company to the management of its human resources:..............3
TASK 2............................................................................................................................................5
Recruitment and Selection Processes in Strategic Human Resource Management:..............5
TASK 3............................................................................................................................................6
Approach to Human Resource Development:........................................................................6
TASK 4............................................................................................................................................7
Classical theories of Motivation:............................................................................................7
TASK 5..........................................................................................................................................10
Characteristic of an effective leader and different Leadership Models:...............................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human Capital Management refers to that process in which company manages their
employees to contribute significantly in overall production. It is a path which involves acquiring,
training, managing and retaining employees so that they can work efficiently. In human capital
management, company treats all its employees as an important resource which helps to increase
the productivity of company. Leadership quality is also important for an organization along with
the human capital management. It is an activity of leading a group of people or an organization.
A good leadership involves qualities like having a clear vision and sharing that vision with his
team to achieve it. Coordinating and balancing the equilibrium in between different team
members. A good leader always tries to motivate and inspire people. This report will discuss
about the different functions of Human Resource Management and the way it is important for
organization. It will also emphasize on different classical theories of motivation and the way to
propose a hybrid theory. All these factors will be studied in this report to understand the detailed
functions of HR department.
LITERATURE REVIEW
TASK 1
Analyse the approach of the company to the management of its human resources:
According to Antonakis, J. and Day, D.V. eds. (2017) Human Resource Management
(HRM) is one of the most important element of any organization, whether it is small or large.
HRM is usually a process which involves recruiting people, training and compensating them,
developing policies related to them and developing strategies to retain them. There are many
duties and functions which HRM department operates like :
 Employee recruitment : This is the initial step of the HR department to recruit candidates
which are suitable for their given job profile.
 Workforce management : The environment in which the employees are working should
be friendly and supportive.
 Learning and training of employee : After recruiting the desired candidates, giving them
proper training of their work should be done correctly.
 Labor laws : There are some laws which has to be follow by the organization to work
properly. All these things are required to monitor by the Hr only.

 Performance management : He has to evaluate that work is going efficiently in the
organization.
 Planning strategies : Planning strategies in order to increase their sales and production is
also done by the HR department of the Toyota Motor Corporation.
Toyota Motor corporation is one of the successful companies in automobile industry. It is all
because the HR department of Toyota company is doing their job right and effectively. As HR is
the main reason for high profits or low profits in any corporation, its very important to deliver
dedicated service towards their organization. The Human Resource Department of Toyota Motor
Corporation should implement following factors into consideration to increase their sales,
performance and managing skills:
 Hiring or recruiting people who are qualified enough to give their best for the
organization and who has competency quality in them.
 Providing them a good environment to work. Giving them training and making them
capable to give their best as output.
 Manages the employees to work in team. This will help the organization to deliver
service faster to the customer.
 Should pay attention to quality of work and work place, should posses' problem solving
ability.
 HR should have a good communication skill.
 HR should go through the work place and remove those people who refuses to work
effectively which affects the overall performance of the organization.
According to Brewster, C. (2017) there are different approaches which the Toyota's
Human Resource Management team can apply to their system. For example, they can opt for
different recruiting agencies which will help them to save their valuable time. This will ensure
that they are providing skilled employee for the organization. So that, they don't have to waste
their time in giving training to them. By applying different workplace policies, it will ensure
fairness and continuity of work within the organization. Some policies which can be applied by
the HR department are- discipline process policy, dress code, ethics policy and internet usage
policy, etc. Along with policies, there are different laws also which the Toyota company has to
follow and do work according to them. Human resource of Toyota Motor Corporation should be
aware of all the laws and regulation which can affect the workplace. These laws include,

discrimination laws, health-care related issues, work safety laws and labor laws. All these laws
are regularly changing, so Toyota company should be aware of all these changes happening in
the law. HR should have a good leadership quality to manage its team and work efficiently. This
will help to increase their sales as well as production.
TASK 2
Recruitment and Selection Processes in Strategic Human Resource Management:
As per Cascio, W. (2018) Strategic human resource management is a process involving
recruitment and selection of employees, help the business achieve profit and success. Strategic
management starts with identifying the needs of the company as they will contribute in the
current and future demands of Toyota Motors. After recognizing the demands and need, the HR
should provide all the requirements as soon as possible to complete the task in time. Strategic
human resource management is continuously developing and it is important that Toyota has a
good knowledge of it, as it is a complex process. The strategic HR planning includes processes
like, assessing current HR capacity, forecasting HR requirements, gap analysis and developing
HR strategies that supports company's overall performance. These strategies are described
below:
 Assessing current HR capacity: According to company's strategic plan, it is the fist step
to assess the current HR capacity of the Toyota Motor Corporation. It includes skills and
ability and knowledge of the employees currently working in the company. An
employee's performance assessment form can be reviewed by the HR team in order to
determine if the employee is willing to take the responsibility and to look at the
employee's current development plans.
 Forecasting HR requirements: The next step is to acknowledge the fact that what are the
future challenge which the company can face. It can be done by understanding what the
customer prefers most and what are the current trends in the automobile industry like,
automatic gearing system, lock sensors, etc. Implementing all these new technologies into
their cars will attract customers to buy that car.
 Gap Analysis: In this process Toyota Motor company determines their current position in
the market and where the company wants to be in the future. This can be identified by
staff member's working efficiency and their ability towards work. Factors like does the
company have skilled employees, what are their strength and weaknesses, do they have

enough resources to meet their future demands, etc all these questions have to considered
by the HR.
 Developing HR strategies: These are the plans and plotting which the HR has planned to
overcome different issues coming their way. Through documentation, HR can standardize
the process, enabling repeated success for the company. Documentation also allows
better evaluation of company, so that they can know which parts of your plan need work.
According to Goleman, D. (2017). There is one more option which can be opted by the Toyota
Motor Corporation is by posting job vacancies. The purpose of these vacancies is to grab the
attention of all the interested candidates who are willing to work with them. Selecting the right
candidate requires by identifying their specific skills, knowledge and qualities which company is
desiring in an employee. Marchington, M. et-al. (2016) Indicate that the competencies, skills,
motivation and social interaction of the employee’s of an organization are increasingly being
seen as critical sources of competitive advantage.
TASK 3
Approach to Human Resource Development:
Human Resource Development (HRD) is the process used to help employees develop
their skills, knowledge and abilities. It is one of the most significant opportunity which an
employee can seek. This helps to continue develop their ability and motivates them to work.
There are so many functions which are included in the HRD department like, employee training,
their career development, performance management of company, etc. According to Mayo, A.
(2016) Bringing some change in the HR process and management can help them to build a better
team, these changes can be done in many ways like,
 In Recruitment process: Lean manufacturing strategy has become a standard of selection
process. This is done to decrease or reduce the unwanted cost occurred during the
production process and recruiting those candidates which has some unique technological
knowledge towards their work. Employees should be socially communicating. This will
help in interacting with the customer. They should be always enthusiastic and are always
ready to try new things and techniques. Should be consistent indecision-making if
required. Flexibility should be there so that employees can work for the whole company
and not only for a part of it. Toyota should have to be very strict in the process of
recruiting candidates for example, if they are holding an interview of a candidate, then

they should make sure that they check its ability, techniques and characteristics into
consideration.
 In Selection process: Generally Toyota tries to select those candidates who has a strong
work ethics. People who are dedicated and motivated should be preferred first. The HR
should be focused while selecting candidates. As they will represent the company's name
inn the market.
 In training process: The main motto of Toyota should be to develop programs and
opportunities for the employees. The tagline of the Toyota Motor Corporation say “We
do not just build cars, we build people”. They should follow this in their workplace. As
depicted by Northouse, P.G. (2018) Toyota is increasing the emphasis on their training by
opening three regional training centers known as Global Production centers. These
located in three different countries to gain popularity among different customers. They
are one in Thailand, in England and the last one is in Kentucky. One more factors for
which the Toyota is working upon is the lack of sufficiently skilled trainers to teach them
for this Toyota discovered the formal training programs in the organization. They are also
giving their employees training on new technologies which are coming in the market
related to automobiles.
 In Performance Appraisal: HR department of Toyota Motor Corporation focuses on the
total system efficiency rather than only on individual. It should be kept in mind that it is
important for the HR to evaluate the work and examine the workplace.
 In Compensation process: Toyota Motors is capable to pay higher salary and try to retain
their exceptional employees to work with them. This will ensure that company will never
face employee shortage.
 In Employee Separation: According to Rubtcova, M.V. Et-al. (2015) Toyota has a great
advancement in applying Lean Management technique, which is to hire only skilled and
best employee for the company. This practice has increases the work efficiency of
company.
All these changes in the working environment will increase the sales of their cars in the market.
Implementing new technology and services like fuel efficiency, low pricing compared to others.
Company believes to work in team which reflects a culture of trust, cooperation and
understanding.

TASK 4
Classical theories of Motivation:
As stated by Shields, J. et-al. (2015) Motivation refers to that process which helps to lead
someone to do work in an effective and efficient manner. The employee needs to motivated and
dedicated towards their work. It elicits, controls, and sustains certain behavior of the employee in
the organization. It is a phenomenon which greatly affects individuals behavior, strength and
persistence. There are so many approaches through which motivation can be done, for example,
physiological, behavioral, cognitive, and social. According to various theories, motivation can be
explained as a basic need to increase strength and minimizes the physical pain. In the past years,
employees were treated merely as objects which helps in their production and services. But today
it has been changed. Now they are treated as an important part of the organization. There are
various classical theories of Motivation, such as hierarchy of needs from Abraham Maslow,
McGregor's Theory of Motivation and the two-factor theory from Frederick Herzberg. These
theories are explained below:
1. Needs Hierarchy Theory : The concept of theory was given by Abraham Maslow. This is one
of the most widely theories of motivation. This theory consist of five hierarchical classes.
This theory helps to identify the complexity of human requirement. According to Abraham
Maslow, people are motivated by unsatisfied needs. According to this theory, before
higher level needs are satisfied, lower level needs such as physiological and safety needs to
be satisfied first. Maslow's Hierarchy of Needs theory can be related to employees
motivation, for example, if the manager of the Toyota Motor Corporation tries to satisfy
the needs of the employees, he should first on the lower needs of the employees. After
satisfying their lower needs, satisfy the upper-level needs of the employees. Also, the
manager should also keep in mind that every employee will not be satisfied with the same
needs.
The basic requirement of needs build the first step in this theory. Any deficit in the level will
affect the whole process. Psychological requirements also plays an important role in this theory.
To summarize this theory it can be concluded that every human being have needs and desires
which has a great influence on their behavior. Since there are many needs of the employee, it has
been arranged in the order of importance, from the basic to the complex ones. Further the

progressing up the hierarchy theory of needs, the more individuality and psychological health the
employee will show. The needs from lower to higher level can be divided into following parts:
 Physiological needs : This includes basic necessity like hunger, thirst, sleep, etc. which
the employee has to get properly in order to work effectively.
 Safety, or Security, or Shelter, or Health: This includes all the health-care and security
related issues of the employee.
 Belongingness, or Love, or Friendship: In this, employee should feel safe in their
working environment. Should be treated good.
 Self-esteem, or Recognition, or Achievement: This includes the respect of the employee
which should not be hurt by any means.
 Self actualization.
2. Herzberg’s Two-factor Theory : Frederick Herzberg is the founder of this theory. This theory
is also known as intrinsic/extrinsic motivation theory. The theories concluded by him are
termed as two factor hygiene and motivation theory. Motivation theory concludes that
certain factors which are present in the workplace will result in the job satisfaction. But if
it is nor present in the workplace, it will not lead to dissatisfaction as well. The factors
which affects the motivation can change with time but “respect for me as a person” is one
of the motivating factors at any stage. In the Hygiene Theory, it explains that the
environment in which the worker is working should be friendly and hygienic. Company
should always ensure that working conditions should include Ergonomics which is a
branch of science that studies the relationship between the workers and the environment
they are working in. In the motivational process, building the sense of achievement in the
employees is very important. Another factor to be keep in mind is the reward of
recognition for the efforts he is putting in the work.
3. McGregor's Theory of Motivation : This theory was given by famous Psychologist McGregor
in his book named “The Human side of Enterprise”. This theory is also known as X-Y
theories. According to Snell, S.A., Morris, S. and Bohlander, G.W. (2015) different
organization undergoes various procedures to control their employee. Some follows
Theory X which is less productive as compared to Theory Y, which is more effective in
terms of leadership and enables the company to work efficiently. In theory X, the managers
are less result oriented and very short tempered and they are very distant with the

employees. On the other hand, managers who applies Theory Y in their workplace will
motivate the employee by building the expectation of reward for them. This theory helps to
get better results for the company.
These are some classical theories of Motivation, which Toyota Motors Corporation can apply
into their business. The HRD team can combine all these theories together to get a hybrid theory
of its own which can be helpful for them to generate good working environment for the
employees to work. This will increase the working efficiency of the workers to work hard. These
theories will help to keep them motivated. Toyota company should make sure that the theories
they are applying into their working environment is implementing correctly and all the
employees are getting benefit from it (The Classical and Modern Theories of Motivation. 2018).
TASK 5
Characteristic of an effective leader and different Leadership Models:
According Snell, S.A., Morris, S. and Bohlander, G.W. (2015) Leader are those who
manages to lead a group of people generally known as his/her team. They follow all the work
which the leader has allotted them to do. For became a good effective leader, one must posses all
the quality which are listed below in order to deliver all the achievement and results to their
organization by completing the needs and take care of employee's interest :
 Caring : Leaders must be caring towards his nature as well as his employees. His care
nature establish positive and healthy employee relation. This caring nature towards hie
employees will make a good relationship bonding between employee and his boss.
 Forward thinking and passionate: A leader must have passion towards his work and they
are always prepared to take challenges protecting their environment and create a doom in
front of employees by his forward thinking. They have the talent to find it, engaged it and
developing the work. It is a must for a good leader to be have a clear perceptive of his
mission and vision.
 Innovative : Remarkable HR leaders create many approaches to attract, manage and
develop talent with understanding the competition level and they have to stand with the
employees and use many approaches and practices in order to take the organization in
further level. Basically they are the supporters, promoters and designer of this
competitive and unique world.

 Strategic : Firstly, leaders understand the strategy of an organization and then they apply
their plans in order to gain or lead the company. Their vision, mission and alignment of
work complete the need of organization. They know the meaning of high performance of
work and where to show it through talent management.
 Problem solver : They are crisis managers as well as problem solver. HR leaders first
analyses, and then dealt and prevent by using their skills and ability even in adverse
situations.
 Communicator : An effective HR leaders are good in communication as well as
influencing. They provide guidance to HR issue and then influence team with new ways
in order to improve operation related to organization.
 Technology – minded : They use the latest technology to make their department more
effective and accurate in their day to day operations. Even they are not afraid to use those
new technology in new process and improve old ones.
 Life long learner : An extraordinary leader never stop learning and building network with
their skills as to gain more ideas. They are always tries to find different ways in order to
improve their own effectiveness with organization's success.
 Experience : If leader is not having good experience related to their work then it leads to
unsuccessful of the company. With having good knowledge, can accept the challenges
and hire good employees in order to increase the productivity of firm. Having good
experience help to know the best out of many and promotion as well as create boom of
skills which are needed in an enterprise.
 Ethical : Leaders are those who help the organization and show what is right even though
it takes too much time as well as higher cost, because it is the ethics of a good and
effective leader.
 Honesty : A good leader must be honest towards his job, and should not be sensitive with
feelings and emotions of others. Being sympathetic leads to bad attitude and creates
negative expression in front of employees.
Storey, J., (2014) explains Leadership models can be defined as a guideline which suggests
specifically the leadership behavior used in specific situation. Different leadership models which
can Toyota Motor Corporation can be explained as follows:

 Leadership or Managerial Grid : This models helps the company to focus on leader's
concern related to task and people to predict the leadership outcomes. This model focuses
on setting and achieving goals. Different factors are included in this model like employee
orientation, production orientation, etc.
 Situational Leadership model : The situational leadership theory was produced by Paul
Hersey and Ken Blanchard in 1977. It is based on two factors- the required level of
Supervision and Arousal required to coach workers in specific situations. In Supervision
model, employees skill and level of knowledge is supervised, wherein Arousal model,
employee's skill and knowledge level determines the amount of emotional support they
required. Situational leadership is a four step model which includes- directing, coaching,
supporting and delegating.
 Four Frame work Approach Model : This model was suggested by Bolman and Deal in
1991. This model suggests that leaders will show their leadership behavior in four
different ways that is Structural, Human Resource, Political, or Symbolic. In structural
framework, leaders pay attention more on structure, strategy, environment,
implementation and adaptation. In Human Resource framework, leader are focused on
people and communicating with them. In political framework, leaders are dedicated
toward what they want and what they can get. And in the last, in symbolic framework,
leader tries to view organizations as a stage to play certain roles and give impressions,
uses symbols to capture attention, frame experience of the employees in the organization
(Leadership Models. 2015).
CONCLUSION
From above report it can be concluded that managing human capital management and
leadership management, helps any organization to work effectively and efficiently. This report
critically discussed the recruitment and selection process of Toyota Motor Corporation and what
are the different approach of Human Resource Development of the organization. This report also
summaries the detailed models of effective leadership which can be helpful for the Toyota Motor
Corporation to build a strong staff and workforce. This report will help the organization to build
a strong team of employees provide them a friendly environment to work.

REFERENCES
Books and Journals
Antonakis, J. and Day, D.V. eds., 2017. The nature of leadership. Sage publications.
Brewster, C., 2017. The integration of human resource management and corporate strategy. In
Policy and practice in European human resource management. pp. 22-35. Routledge.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Marchington, M. et-al, 2016. Human resource management at work. Kogan Page Publishers.
Mayo, A., 2016. Human resources or human capital?: Managing people as assets. Routledge.
Northouse, P.G., 2018. Leadership: Theory and practice. Sage publications.
Rubtcova, M.V. Et-al. 2015. Managing Human Capital: How Public Servants Support the
Governance's Performance Conception in Russia.
Shields, J. et-al, 2015. Managing Employee Performance & Reward: Concepts, Practices,
Strategies. Cambridge University Press.
Snell, S.A., Morris, S. and Bohlander, G.W., 2015. Managing human resources. Nelson
Education.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Online
Leadership Models. 2015. Available through:
<http://www.nwlink.com/~donclark/leader/leadmodels.html>
The Classical and Modern Theories of Motivation. 2018. Available through:
</essays/business/the-classical-and-modern-theories-of-motivation.php>