HRA CASE STUDY ASSIGNMENT (Submitted by: Bhargavi Mehta28108) Case Looking Beyond Gas Pedals-How Human Resources Lead to Toyota’s Failure Toyota today is riddled with quality problems. Quality was once theprimeUSP of this company. The problem reachedsuch a critical levelthatthecompany had to recall almost 9 million cars worldwide. Obviously, this led toasignificant lowering of the brand value of the company, andadrop in sales. John Sullivan (2010) attributes such failure of Toyota tothe poor HRM function of the company. Sullivan added that while hull design flaw contributed to this catastrophe, the root cause of the problem was human error. Human error at times caused for factorsthatcould be beyond the control of employees. It cascades for the actions of the senior management. People attheoperations level may have inadequate information and poor job training. Toyota’s poor HR practices,which Sullivan classified under eight categories, attributed to such mechanical failure, causing recalling of their supplies. Such HR practices arereward and recognition, training, hiring, performance management process, corporate culture, leadership development and succession, retention,and risk assessment. In all these HR practices, the company failed to integrate with the business goals. Moreover, HR decisions were not backed with data, rather itwasin accordance with the existing systems and standards. Hencethesystematic failure of management contributed to quality problems and subsequent recalling of cars, resultinginseveral billionlossesto the company. With data- driven HR decisions, HR managers could have been more analytic and predictive in foreseeing such problems and warned the top management. Question: In the context of this case study, do you think Toyota could make a difference with HR analytics? Elucidate your answer. I completely agree that Toyota could make a difference in HR analytics for a variety ofreasons, including: 1.Training: If Toyota training had been more effective, employees would have had the skills and capabilities to deal with any situation that arose. 2.Hiring: The goal of great hiring is to bring on top-performing individuals with high levels of skill. A problem can be caused by poorly designed recruiting and assessment elements, as was the case in this case. 3.Risk Assessment: Most Human Resources Departments do not even have a risk assessment team whose purpose is to identify andcalculate risk caused by ineffective employee processes. Toyota's problem is not the result of a single individual making an isolated mistake, but rather of the company concealing a series of mistakes that are all related to one another. If Toyota had usedHR Analytics, it could have made a significant difference.
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