Human Resource Management Report: Toyota Recruitment and Practices

This report delves into the Human Resource Management (HRM) practices employed by Toyota, examining their purpose, functions, and impact on workforce planning and talent acquisition. It analyzes the strengths and weaknesses of Toyota's recruitment and selection processes, considering both external and internal recruitment methods, and discusses the benefits of various HRM practices for both employers and employees. The report further explores the importance of employee relations in HRM decision-making, highlighting key elements of employment legislation and HRM practices in a work-related context. The analysis includes critical evaluations of recruitment and selection approaches, emphasizing the significance of job descriptions, skills inventories, and website-based recruitment strategies. The report concludes with a comprehensive overview of how Toyota's HRM strategies contribute to its overall business objectives, including employee motivation, cultural sensitivity, and adherence to government regulations.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
INTRODUCTION.......................................................................................................................1
P1. Purpose and the functions of HRM to workforce planning and resourcing for Toyota and
its it can provide talent and skills to achieve business objectives................................................1
P2. Strengths and weaknesses of recruitment and selection process in Toyota..........................3
P3. Benefits of different HRM practices in organisations for employer and employee..............5
P4. Critical evaluation of approaches to recruitment and selection.............................................6
TASK 2............................................................................................................................................7
Importance of employee relation in HRM decision.....................................................................7
Application of HRM practices -...................................................................................................9
HRM practices and employee relation - ...................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management is the term which used to explain formal system devised
for the management of people within an organization, there are many responsibilities with human
resource management like staffing, employee salary etc. this project summarised the purpose and
functions of the HRM, how HRM helps to provide the right skilled people to the organisation
and strengths and weakness factor that affect to the recruitment and selection process, benefits
of different HRM practices, importance of the employee relations to in influence the HRM
decision making and key elements of employment legislation, HRM practices in work related
context.
TASK 1
INTRODUCTION
This task discusses on the functions and purpose of the HRM, how functions of HRM
provide the talented and skilful employees who help to achieve the company's objectives.
Strengths and weakness of the approaches to recruitment and selection process and their
evaluations (Reiche and et.al., 2016). Benefits of HRM practices and effectiveness in profit and
productivity.
P1. Purpose and the functions of HRM to workforce planning and resourcing for Toyota and its
it can provide talent and skills to achieve business objectives
Human Resource management is termed as process in order to manage employees in a
company. It involves process of hiring, firing, training and motivating of employees. It is also
known as a way in which company hires new employees and trains them in order to achieve long
term success.
Purpose of HRM
 Internal customer management- this is the primary purpose of human resource
management. Thus, the productivity directly rests with its employees quality. The
management of human resource has to define and implement the process and policies that
is necessary in order to attract, recruit and in retaining a quality workforce.
 Cultural sensitivity- the human resource management maintains cultural awareness. The
main purpose of them is to hire candidates from one part of world and relocate to another
that requires understanding in terms of visas and contracts.
Functions of HRM-
1

 Recruitment- It is an important factor for HRM that recruitment of employees in
company to run the operations. Recruitment is the process of attract the large number of
applicants apply for a particular job
 Promote Company Cultural – Make sure that the employees are happy in company and
they are adopted the company's environment. There are many employees from different
part of the world HRM is responsible to make them comfortable at work place (Sapegina
and Weibel, 2017).
 Government laws- HRM responsible to comply with government policies its important
to follow the rules and regulations and increase the awareness of the staff to the countries
laws, there are many employees in Toyota from the different place of the world its
purpose of HRM to encourage them to adopt the rule and regulations of the country.
 Motivate employees- HRM has a purpose to motivate their staff time to time its help to
improve the employee's efficiency and effectiveness towards their work in company.
 Human Resource Development- functions of human resource planning also include the
training and development of the employees for improvement of the employees efficiency
in the particular (Bamberger, Meshoulam and Biron, 2014). Training and development
help to provide the employee's knowledge and improve their skills. Development is more
important than the training, training focus on the particular task on the other hand
development help them to the improvement of the skill which help them to their future.
 Safety and Health- safety and health is very important issue for the department in
function of safety from the accident in work place they have to ensure it to before allot
the task that there is not any factor which can cause of any harm. Health function relate to
the physical and mental fitness of the employee that make them free from the illness
(Bratton and Gold, 2017).
Human resource planning
Human resource planning is the process of reviewing requirements of HR in systematic
way that helps in ensuring limited and required number of employees are available whenever
needed by cited company.
Succession planning
It is the process in order to identify and develop new leaders in order to replace old ones
whenever they leave, die or retire.
2

Importance of Human Resource planning
It is important for success including other factors as growth, change and technology that
is needed to be considered in such process. It also helps in searching skills, recruitment, hiring,
training and preparing.
HRM provide skills and talent
HRM can give the organisation talent and skilled employees HRM have direct contact with the
employees so its know the where the employees need a development or training in their task.
HRM is associated with the hiring and motivating and maintain the people in the organisations.
HRM is designing management system which help to make employee's able to achieve the
objectives of the company main objectives of the human resource management is to ensuring the
availability of the talented and skilled employees force. Learning is main action of human
resource management is to assist learning of employee its help the employees to generate more
revenue to the company (Armstrong and Taylor, 2014).
P2. Strengths and weaknesses of recruitment and selection process in Toyota.
A human resource management is in charge to recruiting the new employees and significant
hand the selection of the candidate, there are several challenges in the process but also several
benefits. HRM have to understand the advantages and the disadvantages of the selection and
recruitment process. Toyota is the internationally brand so it is important for the HRM to select
the best employees for the work, which can help to achieve the company's objective as well as
established the right approach the for the company (Bratton and Gold, 2017). There are 2 types
of recruitment process(1)External recruitment(2) internal recruitment
(11 External recruitment- when fill the vacancy from outside the business.
(11 Internal recruitment- when fill the vacancy within its existing workforce
STRENGTHS OF EXTERNAL RECRUITMENT
New ideas- the main strengths of the recruitment and selection process is that its bring new idea
to the Toyota company. Many people have their own perception and plan which they will share
with the company, it is strengths that new employee can determine the current strengths and
weakness of the company where need to do the work and improve it (Barrick and et.al., 2015).
New idea can help to earn the profit and its help to reduce the market competition, new idea in
business help to make it strong in share market its help in productivity, reduce the cost, improved
brand recognition and value there are many advantages of with the new ideas in business.
3

Reduced Turnover- when and organisations select the right skilled employee on the right place
to work end result of it is that employees are more happy with their work, it is fact that a
environment of work which fit in the preference and comfort of the employee that make them
happy (Reiche and et.al., 2016). It is concern point for the Toyota to put the employees on their
prefer place its make them more effective and they can complete their task with willingness.
Lower employee turnover rate and positive workplace help contribute the Toyota great efficiency
and high profit in the business.
Pool of applicants- A planned recruitment process is the best method to connect with the many
applicants on the limited time .its help to get many experienced candidate from different sources.
WEAKNESS OF EXTERNAL RECRUITMENT
Expensive process- external recruitment need huge budget to conducting a interview process its
need for promotion, sources and its costly for company to hire a new employee.
Time consuming process- recruitment of new candidate is a time consuming process, there is
need much time for select a right candidate for the vacancy if Toyota company is not get the
right employee then it is lose for the company's revenue (Bratton and Gold, 2017).
Risk- it is a risk to get a right candidate for the job its not always possible to select a candidate
who will work effective and skilled. It is a risk factor for company to select a skilled candidate.
STRENGTHS OF INTERNAL RECRUITMENT
Lower cost- its is money saving process there is no any additional cost like advertisement and
employ from recruitment agencies. Selecting of a new candidate add more cost for company but
existing employee need just little increment in salary (Hawkins, 2017).
Recognize employee- employee who is already working in the same company it is already
known by the HRM that what is performance of the candidate it is risk free process.
Employee work more effectively- internal recruitment create the willingness in employee to
work good, they know if there work is effective there is much chance to get promotions
(Functions & Practices of Human Resource Management, 2017).
WEAKNESS OF THE INTERNAL RECRUITMENT
Conflict between employees- the weakness of the internal recruitment is that its create the
conflict between the employee. It creates a negative impact in other employees they think that
company is not recognising their hard work.
4

Limitation on choice- internal recruitment put the limitation on the choice, it is cost effective
process but sometime company can miss the more talented person from the outside.
Replacement of person- internal recruitment seems easy on one side but there is need one more
employee on the persons position who got promoted. That will also a cost to the company to hier
a replacement ( Why Strong Employee/Employer Relationship is Important and How to Achieve
This, 2018 )
Approaches to recruitment and selection
 Job descriptions- the policy of hiring begins with job description. This must include
detailed information on all aspects of a job that includes pay ranges, job tasks reporting
requirements and supervisory responsibilities
 Skills inventory- this helps in identifying ideal candidates for specific jobs. The manager
has the list of ideal candidates in hand that helps in finding correct person for a particular
position.
 Websites- this is the easiest way to find the skilled and talented employyes within limited
time. The company must display their requirements on websites so that they can reach to
all the job seeking candidates all over the world.
P3. Benefits of different HRM practices in organisations for employer and employee.
Here is some HRM practices which benefits the both employer and employee.
 Employment security- Best employment practice is employment security. Employee and
employer make a social contract between them. Employee commit to the organisation to
work and offer the ideas. Employment security is a reason that for employee do this all
commitment. its help the employee to spend their time with family without any worries.
 employment security also benefits organizations because its help to retain their workers
with the company. Its is very costly process to hire a employee, there is a much
investment for the employee's training and development (Chelladurai and Kerwin, 2017).
 Selective hiring- selective hiring is also a HRM practice. It is help to bring employees
who add value. it is competitive advantage to bring right people for right place. If a
employee get a prefer job then they perform good.
 Selective candidate help the organisation in growth toyota company have to select the
skilled employee for the growth it will be beneficial for the both.
5

 Self managed and effective teams- teamwork is crucial in achieve the objectives of the
company. Skilled team is crucial to any company to achieve the success. Team work
provide the
 The best outcome because there is many mind working to achieving a common goal. For
employee its benefits because they can improve and get knowledge from the others and
for employer they get the best result on time.
 Contingent compensation- a fair price for the work of employee. Motivate them for the
work they will able to put the best value in company and they will retain in company for
a long period.
HRM benefit to employee
 Best HRM Patrice helps employee get its right and fair opportunity at work place.
 Human resources' management Patrice helps an employee to identifies its learning need
and HR provide customised training and development as per the learning need of
particular employee which boost confidence and morale. Employees feel competitively
healthy in industry which increase their participation in various conference and seminars.
 HRM practice try to reduce stress and tension which occurred by conflict. HRM also try
to resolve the conflict among employee which save energy and time of employee, so that
they can do their work.
 Employee engagement and performance will increase by positive workplace environment
P4. Critical evaluation of approaches to recruitment and selection
Recruitment and selection is the process by which an organisation hire the best talent in
organisation. Recruitment and selection are not same in their functions. Recruitment deals with
making the pool of candidate on the basis of desired skill, experience and qualification. Various
software are performing matching task of matching the job description with candidate pool like
applicant tracking system, recruitment CRM, human capital management software etc. selection
process is a evaluation process of candidate in which various test and interview conduct to
know the competency candidate (Reiche and et.al., 2016).
There are two approach used for recruitment process.
Recruitment approach- internal recruitment approach includes hire from existing
employee of the organisation. For example transfer, promotion, referrals, job positioning, former
6

employee, internal advertisement, deputation. External recruitment approaches tools are Internet
advertisements , employee agency, campus hiring, newspaper etc.
Internal recruitments are time saving, cost friendly, increase morale of existing employee as they
see promotion chances, less expenditure on initial welcome expenses on orientation day,
insurance policy paper, contract making etc. employee already know policy program of the
organisation, less chance of wrong selection as employee already well unknown for his work.
for example TOYTA use internal recruitment for hire best auto mobile engineer for very
expensive project. Toyota gives carrier growth opportunity to best performance employee. As
every coin has two side, internal recruitment also have some disadvantage like lack of fresh
talent (Bamberger, Meshoulam and Biron, 2014). May be promoted or deputation person does
not have the new technical knowledge or competences. No extra efforts and experiments will be
tried by the employee as they are in their comfort zone, less pool size available, relationships
among employee may be disturb by jealousy .
External hiring will help organisation to bring fresh talent also attract the best in industry to the
organisation. Large pool size available with different talents and skills and capabilities. No
politics and jealousy among existing employees, diversification, cultural improvement in
organisation (Omotayo, 2015). TOYTA use external hiring for innovative project which are at
initial stage and need innovative idea and best technical experience. Like project of develop new
hybrid car (Bratton and Gold, 2017).
There are many selection process available like Systematic Recruitment Methods, The Peacock
& the Magpie. In systematic selection process, employer has to perform whole selection process
in specific manner like screening, test, interview, medical test etc. this selection process give
employer time to understand now employee ,his quality and decide where the new person can be
designate according to his competency. Pay scale are offer by the employer which are not so
high for newcomers. Systematic selection process consist many stages which are time taking and
costly, more chance of error and biasses. In The Peacock & the Magpie two best candidates are
come to the employer and show them what they have best. Here the employee are at the strong
side because they are the best players. And they ask to employer to select among them. In this
selection process organisation can avail the player in less time and cost but the disadvantage is
employer have to pay what they are demanding (Bratton and Gold, 2017). Which is a little cost
burden on the organisation but it can avail the best material to it which gives a higher chance to
7

beat its competitor. TOYTA always use mix of the internal external recruitment and both
approaches of selection because it is a dynamic company which is not strict to one approach.
Follow only one approach is never a good idea because every option has a good and bad side. If
anyone chooses only optional it will become a great loss of fund, quality of human capital can
be compromised a organisation can make customised selection as per organisational need.
(Reiche. and et.al., 2016)
TASK 2
Importance of employee relation in HRM decision.
Significance of employee relation
Human relation management department manages the human capital. They take decisions
regarding recruitment , selection, decide job role and responsibility, job description, find training
and development requirement, evaluate work performance, motivate the employee, gives salary,
bonus, compensation etc (Chelladurai and Kerwin, 2017). employee relation is the relation
between employer and employee. Also between employee and employee. good employee
relation in the organisation get high productivity, job satisfaction, goodwill, low employee
turnover etc. TOYTA HR strategy for employee-employer relation includes smart salary, bonus,
compensations, working environment management, use all law regarding employee, motivational
programme, training programme. HRM department of TOYTA organise sports event, celebrate
b'day together, outing, informal parties etc. nice employee relation increases employee retention.
Employee take initiative to communicate their training and development need to HRM. HR get
to know more about employees and their trait which help them in making promotion, demotion
and transfer decision (Schaufeli and Taris, 2014). HR recognise the need of the employee which
can be use as his motivation tool.
Various legislation and their impact on HRM decision making
Employment legislation are law set by the government employee welfare at
workplace. These laws include set of standard service which employer has provided to his
employees. These are law for working environment, termination policy, leave clauses, maternity
leave, hour of work, health and safety laws. HRM department has to follow these rules and
regulation and in making employment contract. Human resources' department work for protect
these rights of employee at workplace (Hawkins, 2017). For example Toyota follow Civil Rights
Act of 1964 and according to it Toyota has to practice all the standards of labour law. HRM of
8

Toyota offer same amount for all the worker performing same work with discrimination of
gender, race, religion and origin under, give maternity, leave to its female employee. Hr provide
all the benefit to employee under Health and Safety at Work Act 1974.
Equality act- Toyota HRM follow the equality act 2010. Which says not to discriminate
in recruitment, selection, promotion on the basis of gender, race, disability, orientation ,religion
and belief and age (Barrick and et.al., 2015).
The Health and Safety at Work Act 1974 – health and safety act make HR department
accountable to make proper provision regarding health and safety of the employee. It covers
insurance, first aid, poster information about health tips, compensation for temporary and
permanent physical injury, give instruction for doing work of dangerous machines and proper
clothing (Functions & Practices of Human Resource Management, 2017).
Employment rights 1996- employment rights 1996 prohibited unfair termination of the
employee. HR department have to tell the reason of termination to the employee. TOYOTA
human resource management department write all the grounds on which a person can be
terminated. If he or she does something which is prohibited in the contact will get termination.
Unbiased termination example is terminated a female on her pregnancy period.
Application of HRM practices -
HRM practices are different from HRM activities. These practices are set of efforts and
rules made for long term where activities are made for short term. These practices are help in
reaching the organisation objectives. For example introduce new performance evaluation
method like from 360 to 780 degree. Change in training method, new motivational programme.
The main aim of these practices are make employee self starter and they voluntary take
responsibility and interest in organisation's objectives (Why Strong Employee/Employer
Relationship is Important and How to Achieve This, 2018).
Facilitate growth opportunity- HRM facilitate growth opportunity as give fair promotion
chances, training and development pre-program, deputations, change in job role etc. TOYOTA
send its employee to various country so that they can learn the new technology and off job
experiences.
Change in reward system-reward is the most effective tool which can productivity and
efficiency of employee. Reward can be in form of monetary like bonus, increment, promotion
9

etc. reward can be non monetary also like recognition, give more authority and power,
leadership role etc. TOYOTA gives promotion very fast to motivate its employee (Barrick. and
et.al., 2015).
Balance between personal and professional life – employee gives a major hour to its company
but in long term in can hamper the productivity of employee and they can feel frustrate and bore
from the work. So HRM department give time to its employee for family outing, organise family
tours, feasible working hours, holidays. TOYOTA allow employee to take his family for the
business tour also ,so that he can enjoy the both (Armstrong and Taylor, 2014).
Training and development sessions- by giving training and development a employee feel
values and fit for the industry .he feels satisfies when he gets to know that company also
interested in growing him personally. TOYOTA recently give training to its employee for use
the latest car designing software.
Rationale of using simulation training practice.
Toyota use simulation technology to give training to its employee. Simulation is the virtual set
up of real life experience. For example- practice of driving car in virtual car. These virtual set-
ups are controlled by the computers. In auto mobile industry this training is use for product
designing, learning new technology, or try new innovations. Simulation training has calculative
outcome. These training program used where physical injury is possible while training. Outcome
can be measure with giving different inputs. This kind of training existed the employee and
reduce stress of the employees (Chelladurai and Kerwin, 2017). Learning become more fast to
employee by practical approach. Decision making become fast as obtain fast result. Simulation is
totally flexible process, input can be change frequently and outcome can be measure accordingly.
Human error can not lead to equipment damage or physical damage.
HRM practices and employee relation -
Human resources practice in organisation is a function to make employee relation better.
Employee relation consist relation of an employee with organisation . If there is good relation
between these two employee will feel motivated, connected and happy with his work. If
employer employee relation is not good employee retention will be high. Employee give his best
to the organisation as new idea, commitment, organisation loyalty, customer satisfaction .
Human resources practice like fair recruitment and placement, attractive salary and other
10