Analysis of Human Capital Management and Leadership at Toyota

This report provides an in-depth analysis of human resource management and leadership practices within Toyota Motor Corporation. It begins with an introduction to the role of HRM in gaining a competitive advantage and improving employee productivity. The report then delves into the Harvard and Guest models, illustrating how these frameworks are applied within Toyota. Task 1 focuses on the Harvard HRM framework, exploring stakeholder interests, HRM policies, outcomes, and situational factors. Task 2 examines the HR functions within the context of strategic HR initiatives, specifically focusing on recruitment and selection, and human resource development. The report also covers the use of HR software and the characteristics of effective leaders. The report also offers recommendations for improving leadership and HRM within Toyota, aiming to enhance overall organizational performance. The conclusion summarizes the key findings and insights presented throughout the analysis.

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Harvard Human Resource Management......................................................................................1
Guest Model.................................................................................................................................3
TASK 2............................................................................................................................................4
HR Functions in context t strategic HR initiatives......................................................................4
TASK 3............................................................................................................................................9
Number of Human Resource Management software programs ..................................................9
TASK 4..........................................................................................................................................10
Effective leaders characteristics and its effectiveness into considering issues..........................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is an effective strategy of organization to manage the
people in the organization. The purpose of Human resource department is to gain advantage in
competitive by focusing on the management of employee with in the company (Hu and Jiang,
2018). The target of HRM is to improve the productivity of firm by improving performance of
individual employee. Toyota motor corporation is a Japanese multinational automobile company
and its headquarter is in Aichi, Japan this report is analysing the approach Human resource
approach to manage the employees in Toyota. The main human resource functions are explained
in study. Different software used by Human Resource department are covered in study and the
benefits from this software are also considered. The recommendations are provided for the
effective leadership in Toyota.
TASK 1
Harvard Human Resource Management
1
Illustration 1: Harvard human Resources Model
(Source: Human Resource Management Models, 2019)

The Harvard frame work for Human resource management to manage the working and
behaviour of employees in organization. Focus of the Harvard frame work is on six components
which are Stake holder interest, Human Resources Management policies, Human Resource
Management out comes, Long term Consequences and situational factors. This frame work is a
cycle that have a unidirectional circular flow. The human resource management in the Toyota is
based on the interest of stake holders.
Stakeholders Interest
The interest of stakeholders is related to the work and profit of company. These
stakeholders are considered as the internal factor that have impact and influence on the policies
of the organization. Stakeholders of the organization are employees, management, company
owner, consumers, government and suppliers. The operations and policies of Human Resource
department are based on the stakeholders. The policies designed are influenced by stakeholders.
Employees with in the organization are the most important for operations of Toyota. Main
function of HRM is to keep employees motivated to get maximum output from them. The main
intension of management and company owner is to get maximum profit from the operation of
company. Customer and suppliers of company are also important for the company. Customers
are the source of profit for company and suppliers provide raw material to keep production
running. These all stake holders are attached from the organization from mutual interest.
Human Resource Management Policies
The department of Human resource make different policies to run the organization. These
policies are important to keep the company functioning. These policies are designed to full fill
the expectation of stakeholders. It is really complex for the Human resource department to meet
the needs of stakeholders. These policies can be individual or correlated to each other. These
policies of HRM are related to different department of organization (Zhang and et. al., 2015).
The purpose of HR policies are to develop better company culture, reflect the company
standards, manage and meet the legal obligation regards to employees and integrate the new staff
members and improve their performance in the lowest cost and shortest time.
Policy Outcomes
The policies have impact on the working and operation of organization. The out comes of
this policy after implementation can be good or bad for stakeholder or company. If the outcomes
of company are positive then they will improve the performance and profit of company. The
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possible outcomes of human resource department are commitments, competence, congruence
and cost effectiveness. These outcomes of the HR policies are further decides the continuity of
policies.
Long Term Consequences
The focus of human resource management is on short term and long term impact of the
policies on the operation and productivity of company. This long term consequences of Human
Resource policies are individual well being, organizational effectiveness and societal well being.
This is the last stage of the flow. The long term consequences of HRM can help the company to
get better outcomes and financial success in future.
Situational Factors
The results generated form the long term outcomes different aspects. The feedback and
impacts of this polices influences different situations which can be inside or outside of
organization. This factors are work force characteristic, business strategy and conditions,
management philosophy, labour market, union, task technology and law and social values. This
factors again influence the interest of the stakeholders.
The process of the whole cycle starts form the interest of stake holders and cycle go
through policy designing, outcomes of policy and long term consequences and impact on
situation and come back to interest of stake holders.
Guest Model
The guest model is focused on the better management policies and this make this model
an exception in other models. The concentration of this model is on the policies which are
implemented to improve the individual performance of employee. The employee relations are
most important in this model. This model allow the HRM to full fill the requirement of
employees not on the need of organization. These six dimension of the guest model are HRM
strategy, HRM practices, HRM outcomes, Behaviour Outcomes, Performance Outcomes and
Financial outcomes. The behavioural outcomes are related to the relation between the employees
and management. The performance outcomes are the result of training and development sessions
conducted by HR department. The performance of the individual employee is depended on their
personal and professional skills. The performance of employees are monitored by HRM to
conduct training and development. Financial outcomes of company can be gained by better
employee performance. This improved performance of employee will increase the productivity
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of company and that lead to greater profitability. improved by These are the multiple outcomes
of the HRM policies which are executed to full fill the requirement of employees to get
maximum output from them (Buller and McEvoy, 2016)
. This model is all about the satisfaction of the company employees. The different outcomes of
actions are result of HRM practices. This particular outcomes are targeted by the Human
Resources department to achieve with in the time limit.
All the action of Human Resource Management are conducted to improve the people
management in the organization. Better management of employees in Toyota allows the
company to take decision regarding company procedures and policies.
TASK 2
HR Functions in context t strategic HR initiatives
Toyota has an efficient running human resource department with good business structure
and manage employees with the ability in meeting their needs which helps the business to
increase its productivity and profitability (Six Main Functions of a Human Resource Department,
2019). There are several HR functions which need to improve so that Toyota can take its human
practices to next level in the marketplace. The following are the HR practices in the human
resource department which can be enhanced by making the function more efficiently and
effectively.
Recruitment and selection
The HR managers at Toyota provides equal opportunities to every candidate as they hired
employees without any type of social discrimination such as caste, religion, age and gender in
the recruitment and selection process. Recruitment is the process of acquiring qualified
candidates by advertising vacancies on newspapers, social networking sites and television. There
are two ways of recruiting employees which are internal and external recruitment.
Internal Recruitment- Toyota follows both of this recruitment process as in internal
recruitment, company provides opportunities to the existing employees or promoting the
employees on the vacant seats (Al Ariss and Sidani, 2016). They also give appointment to the
retired employee's family members or the employees who become permanently disabled in
accident.
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External recruitment- It provides opportunities who are not within the organization or related
to any employee, this recruitment invites outside candidates. There are several sources in
external recruitment and some of are followed by Toyota which are as follows:
 Employment consultancy gives many job applicants who can register for the vacancies in
the company and it depends upon their interview skills and technical skills to qualify
recruitment and selection process.
 Campus and college recruitment provides Toyota a pool of talented and fresher
candidates who are eager to learn skills and gain knowledge as the technology is
emerging. Toyota can retain fresh talented candidates which can help in improving the
efficiency of the organization.
Both of this recruitment process are time-consuming and money taking for Toyota as it
requires time to invite qualified candidates within locality and across the world and also cost-
effective as it requires money for advertisements in newspapers and television. To improve this
recruitment process there is another source in external recruitment which is not fully followed by
Toyota that is internet based recruitment.
Internet or online based recruitment- As the era of technology is rapidly increasing so as the
internet recruitment is also becoming popular and is known as major source in recruitment as it
take less time in recruiting qualified candidates from all over the world and also saves time and
money as compared to the other sources of external recruitment (Glaister and et.al., 2018).
Online recruitment helps HR managers by rejecting inappropriate candidates through recruitment
tests. It is profitable as it saves large amount of investments in the process.
Selection
After the recruitment process is finished, candidates go through various types of tests like
oral tests, group discussions, final job interview and candidates background verification for the
vacancy in an organization. Toyota is having problem in selecting the qualified candidates who
are right for the available vacancies, therefore, they can retain talented and qualified candidates
by introducing new tests in the selection process which can determine their skills, abilities and
qualifications which are as follows:
 Ability tests includes two types of test, the first is mathematical skills, reasoning, reading
skills etc. and the second test includes technical skills, marketing and mechanical skills.
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 Integrity tests helps organization to identify the honest and reliable candidates which can
be loyal to the organization and increase the efficiency in the marketplace.
 Personality tests provides knowledge about the candidates' behaviour and attitude
towards the work and organization.
Human Resource Development
Human resource training and development is the core function of the management as it
keeps the employees encouraged and motivated. Toyota is having issue in fulfilling the right
training and development programs within the organization.
Training- The trainer in HR management provides different types of training to the employees
in enhancing their skills and knowledge in order to complete their job effectively. The employers
or HR managers must provide right tools which are necessary for individual success which
directly impacts on overall organization success.
 On-the-job training- Toyota provide training to new or inexperienced candidates and
also provide on-the-job training to the experienced employees for their development and
growth. This training includes job rotation which helps the trainee to acquire knowledge
from its supervisor and gains experience from one job to another. Internship is the
another method which is provided at Toyota for trainee who wants to acquire technical
skills within the organization (Huff and Schüssler, 2016). On-the-job training helped
Toyota by equipping employees with the correct tools which increases productivity as the
employees are given training about learning new technologies, boosts employees morale
 Off-the-job training- Toyota can improve this HR practice by providing off-the-job
training also which includes simulation training in which trainee is used to work on
designed equipment or machine that can be used in field job so that they can handle the
real field job and the machine on which they operate are expensive too, therefore, it is
crucial for employees to acquire this training as it will improve their practical experience
in operating the machines. The training conducted away from the workplace helps the
trainee to minimize the distractions and provide their full attention on the machines or
equipments.
Development- The organization also organize development programmes which improves
and prepare employees so that they can undertake higher responsibilities within the organization.
Toyota can improve its development programs by using two approaches which are as follows:
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 Traditional approach- In this approach, the training manager can provide good
development skills and abilities for the growth of business.
 Modern approach- In this approach, HR manager is responsible for providing good
requirements training for staff, programs and career development needs for the
employees and also resolve the conflicts between staff which enhance team building and
evaluate the skills of employees.
Motivation
This is the important HR practice for retaining the employees for a longer time for the
faster growth and development of the organization. The current major factors using in Toyota to
motivate employees are as follows:
 Pay and benefits- The company provides excellent salary packages to their employees in
order to make them satisfy with their job and efforts they are putting in their work. They
also provide benefits like paid vacations, free food, health and medical benefits. Toyota
also provides flexible working hours by maintaining and providing excellent working
conditions which not only enhance motivation of employees but also prevents employees
from legal issues faced under the labour law (L'Écuyer and et.al., 2019). The workload is
also easily managed by employees which overall maintains the business environment and
also balance their work life in order to complete the organizational tasks efficiently and
avoid distractions. Toyota also follows various types of policies that helps to make
employees feel comfortable and reduce social discrimination. These policies like labour
law are beneficial to both organization and employees in achieving goals and objectives.
 Brand Recognition- Toyota's brand reputation is very recognized around the world.
Therefore, employees stay motivated as they are working for one of the best auto-mobile
company and feel pride for working under the well reputed and organization whose brand
value is better than the other organization.
Toyota is having problem in maintaining the motivation of their employees, therefore, the
company can use various methods to improve the motivation level of employees which are as
follows:
 Recognition- Toyota must provide value to each employees so that they don't feel
unrecognised within the organization which results in demotivation (Lewicka and Krot,
2015). They can improve this HR practice by appreciating and recognizing their
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employees which will make them feel their importance and value in organization and
leads to increase in motivation level.
 Healthy relationship- This can be another motivating factor which can be implemented
by Toyota to improve its relationship between superiors and employees as sometimes
there are miscommunication and improper understanding with employers and employees
which leads to psychological stress, results in demotivation and affect the work life. By
maintaining healthy relationship with the employees and employers which makes the
work easier and make employees happy and boost their motivation and energy level
which will make them motivated.
Performance
Toyota uses performance appraisal function which analyse and monitors performance of
the employees within the organization (Marler and Parry, 2016). The managers and supervisors
at Toyota are responsible for employee development and also helps in guiding performance
improvements. Toyota conducts performance appraisals on half-yearly and annually basis.
Toyota is having issue in assessing the performance of employees and HR managers to establish
the standards of performance. So, Toyota can use different methods or strategies to analyse
performance and determine the actual performance of employees within the organization and
identification of gaps in their performance which are as follows:
 Utilization of Performance management software– Toyota can implement software
within the human resource department which can easily evaluate the performance of
employees which saves the time of HR managers in monitoring and also provide details
of improvement where employee's performance is not beyond the level of organization
and also provide quick and actionable reporting and enhance employee development
which overall help the company to run smoothly and efficiently (6 Strategies for Effective
Performance Management, 2018). For example, BambooHR is used to keep the track of
employees information and performance throughout organization.
 Regular meetings- Toyota can conduct regular meetings within the organization to
discuss the results and outcomes of employees work. This will help the organization to
keep the track of employees performance by directly interacting with them in the meeting
and this will also help them to check progress of organization in achieving goals and
objectives.
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Toyota can organize these meetings in weekly, monthly, or according to the suitability of
supervisor or employers. HR managers make ensure that team must knows that participation is
mandatory. This will make progress feedback more accurate and allow management to plan for
further action (Prieto-Pastor and Martin-Perez, 2015). The company must ensures everything is
going well, employees must get feedback about how to do it and act accordingly, and the
business as a whole is positive, meetings can be held less frequently and treated as control points
throughout the year. This meeting will help the HR managers to analyse questions, problems or
ideas to discuss and improve the performance of employees. It's important to keep team up-to-
date to ensure that the management runs smoothly in business. These effective performance
management strategies may seem simple, but they can work well if applied in the daily life of
business. Business must be for those involved in maximize their skills, improve performance,
recognize where they shine, promote them where they need work, and see them as full
employees, not just as gearboxes, really a way to create the right work environment for success.
TASK 3
Number of Human Resource Management software programs
HRM is the functions of Toyota company which deals with concerns that is connected to
staff performance and work. Within business they play role in term of performance, hiring,
wellness, motivating, compensation, benefits, training and developing and safety (Leroy and
et.al., 2018). Human resource management or department have rights from managing workers to
managing employers and entire HR section as well. With the help of range of HRM software
programs they can easily do their and well managed each of its performance effectively. There
are the three types of Human resource management software system.
Workday HCM is HRM software program- It is one of the best and demanding
software, it helps to plan and recruit people easily as well as develop talent. This application
provides absolute visibility into company global workforce. It also gives better user experience
to HRM of firm in which they keep people occupied and help them to grow better than before.
Effectiveness of Workday HCM (Human Capital Management) software is to engage individual
on its preferred device, take quick action and give response to change on Fly, make better
business judgement based on contextual insight and it gives one version of single program across
entire Toyota company. With the help of this system, HRM in firm manage full employees' life
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cycle from recruiting to staffing to benefits and compensation to career growth, they are using
this single HCM Program which gives many benefits to them.
Dayforce HCM- Dayforce is HCM system program using by Human Resource
management of Toyota firm for managing their daily professional activities or functions with in
workplace. It is international human capital management program that help to transform workers
experience. It is a broad or comprehensive cloud platform that combines HR payroll, workforce,
talent management and workforce management in individual application (Noe and et.al., 2017).
Dayforce HCM is considered as Modern and latest technologies or technique used by many
companies for managing their work. This scalable platform is make with single flexible policy or
rules engine combined with real time updates. It gives appropriate calculations that support
address or identify complex regulatory necessitate. It also helps to unify information from across
the entire workers' life cycle. It provides many conveniences to Human resource management of
Toyota in which they drive towards achieving business objectives and goals. In this software
data is store in single and focusing location and give data driven insights across all Human
resource functions.
Core HR Human resource software program- It helps with storing all workers' data in
database, makes easy to for HRM to create staff profiles and worker information to extract
database. It considered as important bulk of processes and information that pertain to workers in
Toyota, employee personal information, income tax withholding and benefits enrolment is few
aspects of Core HR software program.
Workday HCM is effective and suitable for Toyota company HRM practices, this
software program will offer many benefits to organization as it is very beneficial for them as
business growth. With the help of using this system Human resource management managed all
over activities of its job and make them able to accomplish their responsibilities effectively.
TASK 4
Effective leaders characteristics and its effectiveness into considering issues
Leader is a person who managed workers performance and staff working abilities, they
try hard to motivate workers as well as enhancing their performance at workplace (Schutte,
Barkhuizen and Van der Sluis, 2016). There are few characteristics of effective leaders which is
quite effective for resolving issues in Toyota company.
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Inspiring and motivating- Motivation and inspiring is considered as effective leader
characteristic that help Toyota leader to enhance workers productivity and performances better
than before. Leader taking this characteristic into considering lack of motivation issues at
workplace that directly affect company profitability and productivity (Jamali, El Dirani and
Harwood, 2015). With the help of effective motivation leader can resolve this issue they
understand staff needs and try to make the comfortable which is quite beneficial for business
growth. They can inspire people around work areas in context of working effectively which help
company to gain profit and generate more revenue.
Good communicator- Communication is better way or term of interacting with people
from one place to other, with the use of effective tool leader can be able to communicate with its
staff members effectively. Leader must be a good communicator is considered as one of the best
leader characteristic that help Toyota leader to manage workforce and solve any arise issues at
workplace. For example, company have facing issues in training and developing program they
cannot been able to plan effective session that directly impact firm growth and success in
marketplace. At this situation leader try to communicate with staff and management of
organization, they take opinion of staff related to requirement in training and developing
program than make effective plan or session which give many benefits to company and its
workers the most.
Good decision maker- Leader must be a good decision maker, it is one more effective
leaders characteristic that affect staff performance and abilities. Toyota leader need to take better
decision in context of providing training to new and exiting workers. In organization training and
development program related problems will arise which is not appropriate for them as market
growth. Thus, at this situation leader advice higher management to take some right action related
with this topic that provide many benefits to company, they advise including good training
program according to new trends that help to improve workers skills and knowledge rather than
before.
All above characteristic must carried by Toyota leader within their working styles which
make them able to solve any problems, and inspire people to retain with company for longer
term period.
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CONCLUSION
From the above report it had been summarized that human resource management is
important for managing the whole organization. This report shows the HRM model called
Harvard model that is used by the Toyota which is world's best auto-mobile company. The HR
functions like recruitment and selection, human resource development, motivation and
performance and to take this HR practices to the next level, some recommendations are made so
the company can compete more effectively in the marketplace. This report highlighted the
various HRM software like Workday HCM which act as a tracking system of their employees
information and performance and can be beneficial to organization. At last, it concluded with
discussing characteristics of effective leader in order to resolve the issues which are shown in
HR practices like consumption of time in recruitment and selection, lack of training programs
outside the workplace and retention of employees within the organization.
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