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Human resources case study PDF

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Added on  2022-01-24

Human resources case study PDF

   Added on 2022-01-24

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HRA CASE STUDY ASSIGNMENT
(Submitted by: Bhargavi Mehta 28108)
Case
Looking Beyond Gas Pedals- How Human Resources Lead to Toyota’s Failure
Toyota today is riddled with quality problems. Quality was once the prime USP of this
company. The problem reached such a critical level that the company had to recall almost 9
million cars worldwide. Obviously, this led to a significant lowering of the brand value of the
company, and a drop in sales. John Sullivan (2010) attributes such failure of Toyota to the
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 factors that could be beyond the control of employees. It cascades for the actions
of the senior management. People at the operations 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 are reward
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 it was in accordance with the existing systems and
standards. Hence the systematic failure of management contributed to quality problems and
subsequent recalling of cars, resulting in several billion losses to 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 of reasons,
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 and calculate 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 used HR Analytics, it could have made a significant difference.
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