Human Resource Management: A Case Study of Toyota PLC

Human Resource Management
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Table of Contents
Introduction................................................................................................................. 3
Task 1......................................................................................................................... 4
A. Provide an overview of the organisation and an explanation on the purpose and
functions of Human Resources Management in the organisation...............................4
B. Identify the organization’s approaches to recruitment and selection and explain
the strengths and weakness of the different approaches............................................5
Task 2......................................................................................................................... 7
A. Undertake an assessment of the organisation’s approaches to workforce
planning, recruitment and selection, development and training, performance
management and reward system................................................................................7
B. Evaluate the organization approach to and effectiveness of employee relations
and employee engagement, and comment on the adoption of flexible organization
and flexible working practices and employer of choice...............................................9
C. Identify and evaluate the key areas of employment legislation within which an
organization must work.............................................................................................10
Task 3....................................................................................................................... 11
Conduct a brief evaluation of the process and the rationale for conducting
appropriate HR practices.......................................................................................... 11
Conclusion................................................................................................................ 18
Reference List:............................................................................................................ 19
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Introduction
Human resource management is necessary to take into account in order to lead human
resources towards accomplishing business goals and objectives. In order to develop business
operation of an organisation, human resource strategy needs to be aligned with overall
organisational strategy. On the other hand, strategic human resource management is reliable
to promote behaviour of an organisation (Cascio, 2018).
This assignment aims to evaluate the role of human resource management within an
organisation. The study of this assignment intends to develop a case study report
demonstrating the application of HRM practice within an organisation named Toyota PLC
and to show the various benefits that the organization can utilize because of having a proper
Human Resource Management.
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Task 1
A. Provide an overview of the organisation and an explanation on the purpose
and functions of Human Resources Management in the organisation.
It is important for an organisation to take concern in order to manage their workforce. Hence,
an organization needs to increase the performance of the individual employees so that overall
organizational performance will also increase. In order to improve workforce of an
organisation, it is essential to ensure that in an organisation there are the right talents. On the
other hand, it is also necessary to assess the performance of the employees. Thereby, an
organisation requires to develop strategic human resource management. The role of human
resource management is concerned to recruit employees, train employees, and promote
performance of the employees. Human resource management helps an organisation to
maintain a good relationship between employments and employees. Thus, human resource
management is regarded in terms of ensuring high engagement of the employees within an
organisation (Brewster, 2017). In order to manage workforce, Toyota PLC is concerned to
align their business and organisational needs together.
Workforce Planning: The role of Human Resource Management is not only to manage its
employees but it also helps in strategising the changes that will affect its prospects to
recruitment needs. For example, through workforce planning the company may grow into
new market like service sector. An organization can use different skills that need new
technologies; employees can be promoted or be withdraw, based on their performance.
Therefore, in this planning process there is an analysis of current employees, to shape their
future needs, to fore sighting the gaps in between the present and future, implementing the
solutions and checking the results. This process also makes decisions that provide the right
people, right skills, right place and right time (Addicott et al., 2015).
There are following HR activities which in connection with Workforce planning are:
 Basic organizational design
 There is a business plan for labour demand and to forecast supply
 Talent management and succession management
 Retention planning and career planning
 Technique relates to employee engagement
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 Scenario planning and horizon planning
 To develop strategic plan for a period of one year to three year and also to develop an
operational plan for a period of one year.
Labour Market: Labour market is termed as a field for workers who are looking for an
employment and employers who are looking for an individual to fill their vacancies. It is that
field where there is a supply, demand and utilization of human resources (Marchington et al.,
2016). There are two terms that determine labour market, which are:
 Labour Supply: labour supply is termed as an employee who are in a working age
engaged in employment or seeking for employment and the number of hours an
individual is willing to work. In this supply process, the age and size of the population
structure is determined and the decisions by an individual in relation with its relative
cost and the benefits of the employment. This decision is also determined by the level
of wages offered to an individual. In Toyota, there is a greater number of internal
supply in compare with external supply as internal supply leads to succession
planning, Talent management and reducing staff.
 Labour Demand: It is termed by the addition of people who are in employment with
the vacancies which are to be filled. The labour demand is determined by the demand
of goods and services in the market. If production and sales rises, the company
demands for more labour and if it falls there is a decline in the demand for labour. For
a company like Toyota there is always a high demand for cars, due to which there is
also a high demand for labour.
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B. Identify the organization’s approaches to recruitment and selection and
explain the strengths and weakness of the different approaches.
Recruitment is the process of looking for a desired and potential job candidate. In that way
organization can select the best people to fill the concern job needs in the organization. In this
process an organization can identify its basic needs so that it can utilize someone to fulfil that
needs up to the point (Cuddy, 2015). On the other hand, in the selection process, an
organization can choose the suitable candidates from the application for the required post. An
organization can select the individual who can give best contribution to the organization at
present or in near future. Selecting and appointing individuals to fill the desired post can
either be done through internally or externally (Brewster, 2017).
There are two sources of recruitment, which are internal and external. In both the sources
there are basic strength and weakness that are discussed below:
Internal Recruitment process:
 Strength of Internal Recruitment Process: In this recruitment process there is a
considerable retention of monetary source as the employees who have a basic inside
knowledge will take a shorter period of training and adaptation. As it is like an in-
house promotion, helps the employee to motivate and to work in the organization. In
this process, it is easier to recruit as both the candidates and the company are familiar
to each other and the recruiter knows the strength and weakness of the candidate.
 Weakness of Internal Recruitment Process: There is also some weakness which
includes a lack of new ideas, facing problem in filling technical vacancies. In this
process an individual have to substitute the person who has been getting promoted. If
there is a promotion of a single employee in the organization, it will disappoint the
other employees.
External Recruitment process:
 Strength of External Recruitment Process: When organization wants to recruit
externally, they search for the talent that takes place in either regional, national and
local market or international labour market. In that way an organization can search for
a wider variety of talent. In this process, it helps to catch the new ideas and
knowledge to the company.
 Weakness of External Recruitment process: Sometimes External Recruitment also
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