HR Problems Faced by Toyota

This study highlights the HR problems faced by Toyota and introduces solutions to manage the situation. Learn about the issues of improper reward management, lack of risk management, improper hiring process, improper corporate culture, and lack of monitoring on the performance management system.

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HUMAN RESOURCE MANAGEMENT
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Table of contents
Introduction......................................................................................................................................2
HR problems faced by Toyota.........................................................................................................2
Solutions for dealing with the HR issues.........................................................................................4
Reflection.........................................................................................................................................5
Conclusion.......................................................................................................................................6
Reference list and bibliography.......................................................................................................7

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Introduction
Human resource department plays a crucial role in case of driving the positive growth in
the organization. In order to ensure the positive organizational culture, the HR department of
every organization plays influential role (Kundu and Gahlawat 2016). Toyota is a popular brand
in the motor industry, in which the Human resource practice has become the major concern.
Reward system and improper organizational culture have aroused the HR concerns in the
workplace. At its result, the improper organizational culture as well as employee dissatisfaction
is dragging the sustainability concern in the workplace. The purpose of this study is to highlight
the HR problems faced by the organization and introduce measurable solutions so that the further
situation in the organization can be managed. At the end of this study, self-reflection has been
provided based on the knowledge, which has been gathered from the assignment.
HR problems faced by Toyota
Toyota has established its renowned brand image in the motor industry by introducing its
standard quality of products in the market (Prikshat et al. 2018). However, after the
manufacturing failure faced by the company y, its human resource challenges have got increased.
Due to the mechanical defects, the brand image of the company was in a concerning situation. In
order to analyze the HR problem different strategic theoretical implications has been done for
analyzing the impact of these issues on organizational performance.
Employee reward issue
Improper reward management has become the major concerning situation for Toyota
(Siddiqui 2017). Due to improper reward system in the company, employee dissatisfaction has
been aroused. It has been identified that due to poor designed practices as well as weak execution

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of human resource department, the human resource issue has got aroused. Due to the several
mechanism failure, the automaker brand reputation is in the tough situation for the company.
Lack of risk management
Role of risk management team in an organization is to analyze the emerging situation in
the organization and assuming the risk measurable recommendations are being provided. Toyota
HR department has not designed an effective risk management team. Due to improper efficiency
for calculating the organizational risk, ensuring the standard capability of employees has become
an important concern for Toyota (Hcamag.com 2019). By ignoring the product failure, the
management of Toyota focused on calculating the employee capability. In order to analyze the
revenue impact on the organizational practices, the HR errors have been aroused. High hiring
failure as well as higher rate of employee turnover, are the important HR issues in the company.
Improper hiring process
The hiring process is being considered as one of the important responsibility fulfilled by
the HR professions for ensuring the standard skills of employees in the workplace. Handling the
hiring process in the company has become the complex problem in the company. Analyzing the
Matching model of HRM, in the quality enhancement system, it is mentioned that HR plays an
important role for explicating the job analysis (Hcamag.com 2019). However, in case of Toyota
the management authority who has been appointed in the hiring process, are not capable enough
to take the right decision on the behalf of the organization.
Issue regarding improper corporate culture
Corporate culture not only influences the employee engagement process, but also it plays
an influential role in case of ensuring the increasing productivity in the company. Due to the

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increasing rate of manufacturing defects, corporate culture in Toyota now is in the challenging
situation. Due to lower level of management practices increasing numbers of internal complains
the employment standard in the company has got deteriorated. On the other hand, it is also true
that improper organizational culture has also influenced the employee and managers’
relationship. As result, the upper management ignores the concerns of lower management in the
company, which increases the dissatisfaction as well as increasing amount of complaints in the
company.
Lack of monitoring on the performance management system
In order to periodically monitor the performance and appraise the performance of the
employees, the performance management plays an important role. In order to analyze the
performance management system, AHRI- the model of excellence has been applied. Through
this model, the graphic representation of HR practices in Toyota have been discussed. It is
mentioned in this model that performance appraisal is one of the important concern in the
company. Due to the improper performance management in the workplace not only influenced
the behavioral characteristics of the employees but also it has brought the strong impact on
productivity. By continuing this, it can also be said that in the performance management system,
based on the responsiveness towards formation process in the company, the monitoring process
is being done. Due to poor design of performance management structure, Toyota has faced
various HR problems in the company.
Solutions for dealing with the HR issues
Analyzing the human resource problems faced by Toyota, it can be said that in order to
improve the internal situation in Toyota, it has become necessary for the company to introduce

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some effective solutions so that the HR errors can be reduced (Amasaka 2016). As the
manufacturing has become the important concern in the company, in that situation, the company
can focus on improving the quality of Toyota vehicles. In order to measure the cost cutting
process, effective management team development plan needs to be introduced. Ensuring the
employee engagement, standard wages structure needs to be developed in the company. With the
effective implications of compensation policy, employees can be praised based on their
capabilities. On the other hand, it is true that ensuring the appointment of right employees for
performing the right task, efficient people needs to be appointed as board of member in
recruitment and selection process. Ensuring the standard performance of the employees, training
and development process needs to be improved (Prikshat and Kumar 2018). It is true that
managers of Toyota are not efficient enough to manage the manufacturing issue in the
organization. In that case, efficient people need to be appointed in the supervisory positions so
that the performance can be easily managed. With the effective implementation of Level of
strategy alignment model can help to effectively understand the difference between corporate
expectations and functional outcomes, which can help to make an effective performance
management. By continuing this, it can also be said that improving the monitoring process,
weakly report of individuals performance, needs to be maintained by the management.
Reflection
During the learning session, it has been identified by me that Human resource practices
brings the strategic impact on the organizational performance. Understanding the functioning as
well as strategic influences of the HR practices and its impact on Toyota performance
management system, it can be said that in order to become an effective HR professional, I need
to focus on improving my efficiency. Analyzing the theoretical aspects of HR practices, it has

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also been identified by me that improvement of self-efficiency is very important in case of
ensuring the positive growth in the workplace. Becoming an effective HR professional, I also
need to focus on implementing the contemporary approaches of recruitment so that I can
introduce a standard recruitment process in the organization, which may improve its performance
standard.
Conclusion
In this study, it can be concluded that in order to ensure the positive organizational
culture, the HR department of every organization plays influential role. Corporate culture not
only influences the employee engagement process, but also it plays an influential role in case of
ensuring the increasing productivity in the company. Therefore, it should be the priority of HR
professionals to improve their standard for delivering standard performance in Toyota.

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Reference list and bibliography
Amasaka, K., 2016. Innovation of automobile manufacturing fundamentals employing New JIT:
Developing Advance Toyota Production System at Toyota Manufacturing USA. In Proceedings
of the 5th Conference on Production and Operations Management, Havana, Cuba, International
Conference Center (pp. 1-10).
Coltman, T., Tallon, P., Sharma, R. and Queiroz, M., 2015. Strategic IT alignment: twenty-five
years on.
Gerow, J.E., Thatcher, J.B. and Grover, V., 2015. Six types of IT-business strategic alignment:
an investigation of the constructs and their measurement. European Journal of Information
Systems, 24(5), pp.465-491.
Handfield, R.B., Cousins, P.D., Lawson, B. and Petersen, K.J., 2015. How can supply
management really improve performance? A knowledge‐based model of alignment
capabilities. Journal of Supply Chain Management, 51(3), pp.3-17.
Hcamag.com 2019. Retrieved from: https://www.hcamag.com/au/news/opinion-and-best-
practice/how-hr-caused-toyota-to-crash/135577 [Accessed on 25th April, 2019]
Hcamag.com 2019. Retrieved from: https://www.hcamag.com/au/specialisation/change-
management/whats-the-number-one-hr-challenge-for-toyota/158113 [Accessed on 25th April,
2019]
Kundu, S.C. and Gahlawat, N., 2016. Effects of socially responsible HR practices on employees'
work attitudes. International Journal of Human Resources Development and Management, 16(3-
4), pp.140-160.

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Prikshat, V. and Kumar, S., 2018. THE ROLES, COMPETENCIES AND SKILLS OF HRM
PROFESSIONALS IN INDIAN ORGANISATIONS. Equality, Diversity and Inclusion: An
International Journal, 37(4).
Prikshat, V., Kumar, S., Nankervis, A. and Khan, M.M.S., 2018. Indian HR Competency
Modelling: Profiling, Mapping And An Investigation Of HRM Roles And Competencies. The
Journal of Developing Areas, 52(4), pp.269-282.
Siddiqui, S.Y., 2017. Issue and Challenges of Leadership Development. NHRD Network
Journal, 10(4), pp.10-13.