Report on HRM Issues, Challenges and Solutions at Toyota Motors

This report provides a comprehensive analysis of Human Resource Management (HRM) issues at Toyota Motors. It delves into challenges related to recruitment and selection, particularly within a global context, and highlights the impact of ineffective HRM practices on the company. The report identifies problems such as managing a diverse workforce, language barriers, and compliance with varying laws and regulations. It also explores issues in performance management and employee training. The report suggests various solutions, including structured recruitment processes, merit-based selection, and the implementation of training and development programs to address these challenges and improve organizational performance. It emphasizes the importance of cultural awareness, open communication, and effective communication approaches. This report is a valuable resource for understanding and addressing HRM challenges in a multinational automotive company like Toyota.

Human Resource Issues

Table of Contents
INTRODUCTION...........................................................................................................................4
Main body .......................................................................................................................................4
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An effective as well as proper Human Resource Management (HRM) is very important
for an organisation in order to achieve success and foster growth. The ineffective practices by
human resource manager can lead to crises in the company. One of the organisation is Toyota
Motors that are presently facing human resource issues which has led to important recalls in
reward system. HRM failure has given rise to other problem that is issue related to facilitation of
proper risk management within the business entity. This problem has arisen due to lack of
sufficient human resource that is required to facilitate essential procedure in the firm. These
factors have great effect on employer and organisation brand value.
The report has focus on identifying the issues related to recruitment and selection that are
faced by HRM in an organisation. The project will include some solutions that can be used by
HR manager for solving various problems at workplace.
Main body
In present scenario, with the rise in intensity and high level of competition, globalisation
as well as dynamic business environment, there is an increase in requirement of HRM team in
order to deal with various business issues. HRM refers to as the strategic as well as coherent
approach to the management of a business’ most valuable assets. The role of HR manager in an
enterprise is to execute job analysis, design work, recruiting or selecting candidates, orientation
and training to workers, management of salaries plus communicating with management team and
other staff members. When performing the role of HR manager, individual has to deal with many
issues. In simple words, the human resource manager in multinational organisations has same
responsibilities as normal HR manager; in addition to this, they have to perform specific task
related to offshore operations (Li and Jiang, 2017).

Toyota company is a Japanese multinational automotive manufacturing organisation. The
business entity consists of approximately 363495 employees worldwide. It is ranked as the fifth
largest organisation in terms of revenue. Toyota company is recognised as world’s market leader.
The business entity has expertise in selling hybrid vehicles. It is also considered as one of the
organisation that has encouraged mass market adoption of hybrid vehicles. But due to ineffective
human resource practices, the business unit has to face many challenges. The HRM failure has
given rise to other problem that is related to facilitation of proper risk management within the
business entity. This problem has arisen due to lack of sufficient human resource that is required
to facilitate essential procedure in the firm. The major issue that is faced by HRM in Toyota
company is related with managing people at international level. It becomes difficult for human
resource manager. This problem is faced by HRM due to variation in culture, religious
background etc. Another issue is related to language problem that create barriers in recruiting
and hiring candidates. This procedure also includes evaluating individual for future employment.
Recruiting or selecting overseas candidates is very crucial, difficult and complex process. As it
Illustration 1: Integrated model of Staffing Practices
Source: (A Handbook for Staffing Practices in Student Affairs,2017)

includes significant decision that have great impact on business performance. These factors also
have great effect on the employer and brand value of firm. The employees who are appointed for
performing job in Auto mobile industry require specialised abilities such as language and
technical knowledge. The HR manager in Toyota company when fulfilling his duty related to
selecting candidate for global placement have to deal with serious or major issues due to the
changing nature of mobility globally (Yazici, Beyca and Zaim, 2017).
HRM is required to facilitate their role within the coordinated system when identifying
and being sensitive to domestic needs, personal manager has to analyse the suitable source for
recruiting or hiring employees. The human resource management in Toyota face problem in
integrating diverse workforce as this problem has great effect on individual and business
performance. These factors also have great impact on relationship among employees. Workplace
diversity is the element that contributes towards increasing personal manager responsibility in
firm. In Toyota company, the personal manager has to emphasise on reward system, resourcing
procedure and on management development. As this activity will assist human resource manager
and organisation in dealing with the issue of high employee turnover rate.
Other issues that have been faced by Toyota are: many workers in organisation believes
that the bias approach for recruitment and selection of candidates in enterprise is adopted by the
HR manager. Individual working at the higher position in the organisation enjoys obtaining,
organising and interpretation opinion that are based on characteristics that demonstrate the
belongingness to a specific group of society, may lead to decision stimulating element for the
human resource manager in relation to selection of candidates. This factor has great impact on
employer brand value or reputation. The human resource management also faces issues in
integrating the right mix of abilities in the enterprise in terms of geographical location and
recognising the capabilities of people who will be able to perform their job in effective as well as
efficient manner. Laws and regulations differs in different countries due to which personal
manager faces difficulty in complying with the laws that are associated with the human resource
practices. The personal manager in Toyota faces sensitive issues working with people belonging
to different cultural background. It has become major problem for HR manager to identify
different global legislation such as labour law, dealing with technological advancement and
different values as well as attitudes.

Performance management is another issue that is faced by HR manager in global
environment.
The management team in Toyota company need to develop their focus on maximising the
learning as well as development opportunities for workers. This can be through expanding global
networks and allowing employees to work on international project. It will support HRM in
providing job satisfaction to workers and allowing them to retain their job. This activity will also
help firm in developing and maintaining healthy relationship with employees. Rapidly changing
business situations in volatile global markets require HR personnel to speedily recruit, deploy
and develop people.
It is required by HRM in Toyota company to formulate effective as well as suitable
strategies. Diversity is essential for workers as it assists organisation in enhancing the brand
reputation. It also provides firm an opportunity to increase its profitability. The personal manager
in organisation is required to provide open communication system as it will allow workers to
share their values and opinions with other people at work place (Payne and Isaacs, 2017).
Personal manager in Toyota company is needed to promote cultural awareness that will
assist business entity in executing global operations in effective as well as efficient manner. As
people belonging to different cultural background may perceive several assumptions about
working behaviour. The HR manager in organisation must conduct group activities at workplace.
This is because sensitivity and experience in working with people belonging to different cultural
background leads to acceptances of differences by employees. It also enables workers to share
their opinion with others. This activity also provides employees a chance to develop various
skills and competencies which are required to perform particular task. Development of business
practices and communication approaches that will be acceptable to broader range of people and
to incorporate issues that are relevant and of value to them. However, obtaining feedback from
the customers is an effective technique that will assist HR manager in analysing the need of
training and evaluating worker’s performance as well as behaviour at workplace.
It is very much essential for the human resource manager to adopt effective recruitment
and selection approaches as this action will help business entity in generating positive results.
This activity will help organisation in improving as well as maintaining business performance.
The effective organisation have focus on providing satisfaction to employee (Belias,Trivellas,
Koustelios and et.al., 2017.)

The various approaches to recruitment is Job description, skill inventory, job posting
strategy and multi-step recruitment that can be adopted by personal manager when hiring or
selecting candidate. The Job description assist candidates to more accurately recognise their
interest in different position. It also allows HR manager in analysing the field in which the
applicant would be most satisfied and fully utilised in specific job roles. Skill inventory will
support HR manager in selecting or hiring the suitable candidate for particular job profile.
Developing a strategy for posting job openings is part of a systematic recruitment and selection
process. The human resource manager in Toyota company need to conduct systematic interview
procedure as this will aid them in identifying the abilities and interest of individual. When
facilitating interview, the personal manager need to have focus on various points such as
sensitive issues, nature or behaviour of candidate, listening abilities. When conducting the
interview, it is required by employer to select particular criteria as this will help them in making
suitable and accurate decision. It is very essential for personal manager to avoid discrimination.
Illustration 2: Recruitment Process Model,2017
Source: (Informatics Outsourcing - Recruitment Process Service,2017)

As this factor or activity will help employer in enhancing their brand reputation and increasing
brand value.
The personal manager in organisation need to follow proper and typical end to end
recruitment procedures. This recruitment and selection process include various stages these are
defining job vacancy, sourcing candidate, selecting individual, providing offers related to salary
packages, pre day 1 boarding of new employee etc. This activity allows HR manager to support
candidate in adjusting into new working environment.
It is essential for HRM to adopt Meritocracy objective assessment technique as selection
criteria as this will assist them in eliminating biases and changing the perception of existing
workers. This activity will also support personal manager in developing trust based relationship
with staff members.
The technique through which the HR manager can source talented and skilled candidates
are Generating the field of candidates and selecting from field of employees. In simple words,
there are two sources from where the personal manager can select or recruit candidate these are
internal and external sources. The method of generating the field of candidates include self-
selection, social media, internal job posting, talent management, external job posting and
recommendation. Selecting from field of employees include un-assessed appointments,
unstructured, structured as well as panel interviews, psychometric tests etc. These are some
selection techniques that can be adopted by human resource manager in Toyota company in
order to facilitate selection procedure in systematic manner. This activity will support personal
manager in ensuring that right candidate is appointed at right place. As it is very essential
because this factor has great effect on business performance and predictability. Several
selection--methods which can be adopted by employer when selecting candidate for particular
job are Psychometrics test. This tool will help the human resource manager in analysing or
recognising the ability to execute specific task or activity. The most accurate as well as effective
instrument that can be judged to analyse the skills of individual are Graphology, unstructured
interview, Astrological star sign, etc. (Springe,Dwyer, Čorak and Tomljenović, 2017)
It is recommended to personal manager in Toyota to conduct structured discussion as this
will allow them to gather evidence of candidate abilities that can be used to fulfil a set of pre-
determined job criteria.

The human resource manager in Toyota company is required to organise training and
development programmes as this activity will assist management in demonstrating their they are
more concerned about employee career growth and development. Training programmes provide
workers an opportunity to develop various skills that are required to execute specific task and it
also enables them to keep themselves updated with the latest business trend. These events allow
HR manager to make workers aware about company policies, plans, strategies and objectives. It
also provides employees a chance to develop competencies and assist business entity in
increasing productivity as well as profitability. This activity help manager in ensuring the
effective as well as efficient utilisation of resources. Training and development programmes
support employees in providing professional as well as effective services to company clients
(Newman and Newman, 2017).
It is important for HR manager in Toyota company to keep themselves updated with the
latest amendments in laws and regulation related to human resource practices. As this will help
firm in eliminating legal issues and obligations.
Effective recruitment planning supports personal manager in facilitating selection
procedure in systematic as well as effective manner. The effective recruitment plan includes
complete and detail job description, person specification, job requirement, competencies required
to perform particular task etc.
The personal manager in Toyota company need to have focus on development of various
abilities and competencies. As these capabilities will assist human resource manager in fulfilling
their roles as well as responsibilities in an effective manner. It also allows them to produce
desired outcomes.
Human resource manager should develop attractive policies, procedures and system that
will help them in dealing with the issue related to high employee turnover rate. The personal
manager in organisation may conduct internal analysis as this tactic will assist them in
identifying the various problems that are being faced by employees at workplace. It will also aid
personal manager in recognising the root cause of high employee turnover rate and planning
appropriate actions in order to deal with such situation. It is essential for employer to develop
reward system as it will help them in encouraging employees to improve their performance and
increase their contribution in achievement of organisational goals and objectives (Wrosch, Jobin
and Scheier,2017.)

The HRM in Toyota company is required to develop and maintain healthy as well as safe
working environment. As this activity will assist enterprise in attracting more number of
employees and creating high performance working team. Effective organisational culture and
working environment will support personal manager in facilitating effective communication and
coordination among different functional unit. It also allows human resource management to
eliminate conflicts and cultural barriers that have adverse effect on individual and business
performance. Effective working environment also allows human resource manager in eliminating
unfair discrimination. This factor provides business entity an opportunity to facilitate innovation
and attract more number of customer. It enables firm to increase its profitability, sustainability
and sales. Healthy working environment provides enterprise an opportunity to provide good
quality products and services to its clients. It also enables business unit to develop as well as
maintain healthy relationship with client and allows firm to gain customer loyalty. The
formulation of effective as well as suitable strategies support human resource manager or
organisation in ensuring the effective engagement or contribution of employees in various
activities of firm. Development of open communication system enables workers to share their
views as well as opinions and allows them to participate in decision making process. It also
provides them opportunity to make their significant contribution in achievement of business
goals and objectives. Involvement of employees in various activities and decision-making
process leads to motivation in workers and also provides employees with job satisfaction
(Huebner, 2017.)
It is very much essential for employer or leader to set specific standards in order to
measure the performance of workers in the organisation. HR manager in Toyota company is
required to monitor the workers' performance on regular interval of time. As this activity will
help them in evaluating the performance of employees and providing them suitable feedback as
well suggestion. It also provides workers an opportunity to gain effective guidance from their
employer and develop as well healthy relationship with their leader or supervisors. The workers
also get chance to get rewards and recognition for their performance in company.
The personal manager in Toyota company can establish some standards, regulation and
code of conducts as this will help them in monitoring as well as controlling the activities of
employees. This activity will assist firm in developing uniqueness, increasing competitive

strength and gaining competitive advantage in the market (Drewelies, Wagner,Tesch-Römer,
Heckhausen and Gerstorf,2017).
CONCLUSION
The report has concluded that human resources practices have great impact on business.
The major issues faced by the Human Resource Management in multinational companies have
great effect on business performance and profitability. These factors have great effect on
company policies, procedures and plans. It has been identified from the report that due to
ineffective human resource practices, Toyota company has to face many legal issues. In addition
to this, the cited venture has to face various other problems such low productivity, poor
performance, financial instability etc. It has been concluded from the study that the success and
growth of firm is totally based on the performance of HRM team of the company.
There are various strategies that can be adopted by employer when selecting candidate
for particular job. Moreover, this plan or technique will help personal manager in eliminating or
reducing various problems at workplace.

REFERENCES
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Huebner, E.S., 2017. Quality of life and personality development: A reply to Land and Michalos.
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Li, Y. and Jiang, Q.J., 2017. Demand forecasting and information platform in tourism. Open
Physics. 15(1). pp.247-252.
Newman, B.M. and Newman, P.R., 2017. Development through life: A psychosocial approach.
Cengage Learning.
Payne, V.G. and Isaacs, L.D., 2017. Human motor development: A lifespan approach.
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Springer,Dwyer, L., Čorak, S. and Tomljenović, R., 2017. Introduction. In Evolution of
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Wrosch, C., Jobin, J. and Scheier, M.F., 2017. Do the emotional benefits of optimism vary
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Yazici, İ., Beyca, Ö.F. and Zaim, S., 2017. Clustering Techniques within Service Sector. In
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Online:
A Handbook for Staffing Practices in Student Affairs, 2017 [Online] Available through:
<http://www.staffingpractices.soe.vt.edu/recruitsel.htm>