Business Focus Report and Reflection: Toyota HRM Practices

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Toyota, a multinational automotive manufacturer. It begins by highlighting the crucial role of HR in addressing issues such as staff turnover, absence rates, and productivity. The report emphasizes the use of HR matrixes and data sources to present clear business reports, facilitating effective decision-making. It explores various HR matrixes, including turnover rates, job satisfaction, cost per hire, absence rates, and profit per employee, demonstrating their importance in evaluating HR initiatives and responsibilities. The study then delves into HRM theories and practices, such as training, rewards, and fair compensation, and their impact on employee motivation and retention. The report also examines theories like the resource-based theory, strategic contingency theory, and participative decision-making theory to solve HR challenges. Finally, it offers recommendations for improvement, including providing a secure working environment, implementing effective policies, and promoting cultural respect to foster employee engagement and organizational success. This analysis showcases how effective HRM contributes to Toyota's overall performance and competitive advantage.

Business Focus Report
and Reflection
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
Role of HR matrix and data sources for presenting clear business report to solve HR issues....3
HRM theories and practices through small scale research along with recommendations for
change..........................................................................................................................................5
Reflection.....................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Human resource management is a process or practices of some functions like recruitment,
deploying and managing people of the company (Banfield, Kay and Royles, 2018). This present
study is based on Toyota which is Japanese multinational automotive manufacturer company. It
was founded in the year of 1937 by Kiichiro Toyota. This present study is going to show
importance of using HR matrixes and data sources which allow companies to solve HR related
issue like decreasing staff turnover rate, absence rate at workplace and improving productivity. It
will also show ways of using HR matrixes and how HR practices play an important role in an
organization. Some HR practices like training to employees, fair performance evaluation make
employees feel valued and motivated towards accomplishing goals of company. Lastly, it shows
different HRM strategies which such as resource based and others which also allow company to
solve HR callenges.
Role of HR matrix and data sources for presenting clear business report to solve HR issues
HR is one of the important departments of any type of organization which plays several
roles and all their roles effective functions are known as the key of the success of company. They
play several roles and functions such as hiring, selecting, motivation, rewards and training to
employees. In the context of TOYOTA it can be said that it focuses on employees and satisfying
their needs by employing effective workers of HR department. There are several problems occur
in TOYOTA because it operates to a large level and several countries. HR of this company faces
several problems which need to be solved in a timely and in an effective manner (Stokes and
et.al., 2016). Some HR issues at TOYOTA include: retention of employees, providing safe
working environment, solving grievance to all employees, encourage them to work in a team
rather working individually and flexibility or making them able to adapt changes. For solving all
these problems related to issue it makes an effective use of HR matrix.
HR matrix and its importance: HR matrix refers a tool which is being used to gauge
effectiveness of HR initiatives and responsibilities which they play such as: recruitment,
retention, training and others. It is stated that HR department of TOYOTA is facing problems in
all these areas so, it is important for this company to make an effective use of this matrix. With
the help of this tool and matrix they can make themselves able to improve efficiency and
demonstrating values of their all functions. There are several HR matrixes which can be used by
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this company and with this help it can also present a clear business report which will help to
manager in making effective decision. Some examples of HR matrixes which this company can
use and are using some of them:
Turnover: It is one of the best way to identify that whether company’s processes are effective or
employees’ eccentric or not. By making an effective use of HR matrix of turnover, TOYOTA
can measure staff turnover rate as compare to previous year. It can also help this company out in
making know that if their retention strategies are effective and working or not. By tracking
employees’ turnover of different demographic and roles it can make changes in it retention
strategies accordingly (Chen and et.al., 2016). So, it can be said that by measuring this rate,
company can improve staff retention by satisfying employees with different ways or strategies.
Job satisfaction: It is important for this company to know that how their employees are feeling
at work and it can also help them out in knowing that whether employees are giving their 100
percent or not. For example: if Hr finds that employees are not giving efforts to company then it
shows that employees are not satisfied at work and are taking less interest. Because satisfied and
happier employees are more likely to retain with the company and support company in
accomplishing their goals. HR often faces problems in identifying or measuring job satisfaction
of employees at work. But there is a simple and an effective way like conducting survey by
asking employees whether they have any problems and are satisfied at work or not. It is stated
that Toyota make an effective use of feedback and reviews all feelings of employees about the
company as what they think about it and how they feel.
Cost per hire: By measuring cost of recruitment of one person can help out this company in
knowing whether it worth or not. If it costs too much then company can make changes in process
of recruitment and can test different parts within their recruitment pipeline. It can also help it out
to get skilled employees in organization by using the best cost effective approach of recruitment.
By cost saving in its process it can also increase profit margin.
Absence rate: Tracking absence rate can also help Toyota in making changes in its strategies
and increasing employees’ retention rate. This rate is linked with employees’ satisfaction rate.
For example: if there is high rate of absence rate of employees then it means employees’ are not
satisfied at work and with the company. It means company need to make changes in its retention
strategies. It can also help company in increasing productivity by knowing that how many hours
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are being given by employees during their active hours. By making an effective use of Bradford
factor Scores they can track employees absence and satisfaction rate as well.
Profit per employee: Measuring profit per year is one of the important factors which can help
this company in increasing productivity and performance as well. There is an effective way of
measuring profit per employees such as business profit/number of employees. It can help it out in
solving problems of HR along with increasing productivity (Franco and et.al., 2017)
HR data also plays an important role in making improved and effective decisions,
evaluate impacts of people, improving leadership’s decision and making HR processes as well as
operations effective. So, overall it can be said that by making an effective use of all these HR
matrixes and HR data, HR department of Toyota can solve all HR problems and improve overall
wellbeing of the company. HR analytics also deals with metrics of HR functions like hiring,
training, expenses or cost per employees etc.
HRM theories and practices through small scale research along with recommendations for
change
It is analysed that Toyota is facing some HR related issues and for that it has made an effective
use of some HR matrixes. All these matrixes helped it out to some extent. But for solving all
problems to great extent an effective manner it is important for this company to use some HR
strategies by which it can solve all problems and can also take opportunities of competitive
advantages. There are several HR practices which can help HR department of Toyota to satisfy
their employees and retain them with the company for the long run. Some HR practices which it
can use and some are using by this company include:
Training: Training is one of the effective HR practices which can allow employees to increase
their strengths, knowledge and skills and use them at workplace. In this context it can be said
that all companies have different rules, policies and ways of performing and all employees have
some weaknesses by which they face problems in working which de motivates them. So, by
providing training to all employees, HR can strengthen their skills and improve all those areas in
which they are not good (Van Beurden, Van Veldhoven and Van De Voorde, 2018). By getting
training employees can work in an effective and productive manner. It also allows them to focus
on their work reduce errors in functions which increase their self esteem and confidence. It is
beneficial for employers because it increases employees’ retention rate and productivity as well.
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Rewards: It is started that staff turnover is one of the main problems which Toyota is facing and
one of the reason behind their turnover rate is their dissatisfaction and lack of motivation. Some
for motivating employees and satisfying them it is important for HR to provide rewards to them.
There are 2 types of rewards such as financial and non financial. By identifying main root cause
and the type of needs of employees it can provide rewards as motivation. For example: providing
incentives, bonus, promotional opportunities, celebrating success of employees it can motivate
employees towards accomplishing goals of the company. Motivated and valued employees are
more likely to retain or stay with the company.
Fair compensation: Compensation and fair performance evaluation also make employees feel
valued. When employees find that company is concerned about them and make fair performance
evaluation on the basis of performances then they feel valued and it also reduces biasness and
discrimination at work. Employees support company in meeting their goals and improve image
of the company (Ybema, van Vuuren and van Dam, 2020).
Here are some theories of HR which can also allow Toyota to solve all HR issues such as:
Resource based theory: It is being developed by Porters’ which can allow company to solve
HR related issues and retain employees with the company. As per this theory, HR gives
importance to employees and make them the most important resource of the company and uses
employees centric approaches. Employees are also being given all required resources to them
which allow them to perform their functions in an effective manner by reducing errors.
Strategic contingency theory: This theory is being proposed by Hick son whose main aim was
to support companies in solving all HR challenges and allow them to satisfy their employees.
This theory focuses on tasks which need to be done in an effective manner. If an individual or
employees does not have charisma but have abilities to solve problems and deal with critical
clients and problems then he/she can be an effective leader. So, b y using this strategy, HR of
Toyota can make employees believe that all they have some abilities and company value all of
their abilities.
Participative decision making theory: It is one of the effective and best HR theory in which
HR can give equal chance and opportunity to all employees to take participation in decision
making process and share their views (Salah, 2016). When employees are being this opportunity
then they feel valued and motivated at work. Employers can take their views into consideration
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and allow them to increase their confidence and making self dependent. It increases skills of
employees of decision making and problem solving.
Recommendations: From the above study it is analysed that company is making use of some
HR matrixes and HR practices which is helping it out in improving productivity and reduce all
HR problems to some extent. But there are some other effective HR practices and matrixes
which can allow it to get bet outcomes which will have long term impacts such as: providing
security to employees at workplace. It is stated that many employees feel insecure and unsafe at
its workplace so, by providing effective and safe working environment by using some software it
can improve its performance (Mohammed and Quddus, 2019). It can also be said that it should
implement effective policies and legislation which will allow employees to build an effective
relation with each other’s and respecting values and beliefs of all employees with different
cultures.
Reflection
I personally feel that Human resource management has moved toward next level and
important if not, than all other function performed within organization. As I am identified such
as finance, accounting, marketing and operations. I have critically review the success of
enterprise by using HRM practices which providing the better way to improve the business
capabilities. Furthermore, I have identified the various issue or problem during business
operations (Rigolizzo and Zhu, 2020). The conflict among staff member due to discrimination on
the basis of pay scale. Therefore, it directly impact on the overall business productivity as well as
profitability. I feel that HRM will help for improving such complex situation in organization. I
have found that HR manager follows the proper policies, procedures that always support for
establishing the healthy working environment.
In my personal opinion, by implementing various policies but require the suitable
management skills or knowledge to handle the various task in proper manner. I have learn about
the multiple role of HRM how they can analysis job, policy and recruiting the right candidate. I
have strongly believed that HR practices help for managing the company reputation in global
marketplace. Furthermore, I have found that HR collect or gather a large amount of information
or data (Rigolizzo and Zhu, 2020).. It became easier to maintain the relationship between staff
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members, developing reputation for being great employers. I have gained the knowledge to
organize, assess, analyse and also understanding the dynamic enterprises. I have learned from
experience that will help me to focus on the professional in changing world of business.
Sometimes, the question in my mind was how HR manager handle conflicts, part from
doing their own work in organization such as training, development, streaming operation and
staffing candidate. But I got answer where build understanding towards technique, method and
practices that mainly used during business operation. I have undertaken the view, opinion of
manager which always tried to resolve conflict issue within organization (Rigolizzo and Zhu,
2020).. As I have taught about the approach that could great help in future because it come to
know that what suitable and resolve issues in proper manner.
I am sure that all learning comes from personal experience. I will practices all concept in
my own life and consider basics thing to achieve personal as well as professional goal. Initially, I
have not clear about the connection between HRM practices and issues but gradually I learnt the
concept of Human resource management to manage the people. I have believed that learning and
other experience from HR that will give opportunities to handle the issues or problem. It easy for
me to understand various approaches and take decision in difficult situation. I would like to say
that Human resource management plays important role by using significant skill, knowledge.
Sometimes, I have considered the great learning experience for developing the overall business
opportunities in global marketplace. As per discussion, I have representing the personal
experience where Human resource management resolves issues through HR practices. In order to
support for achieving significant goal and objective.
CONCLUSION
From the above study it has been summarized that HR played a vital role in accomplishing
goals of the company as it perform several functions which all are employees centric. It has
discussed some HR issues which are common and many companies of automobile companies are
facing like retention of employees, motivation to employees, lack of flexibility among employees
and making them able to adapt changes etc. It has also discussed effectiveness of HR matrixes
and data which allow companies to measure effectiveness of HR functions and allow them to
solve all HR related issues by measuring employees satisfaction, absence and others rates.
Lastly, this study has shown some HR practices and HR strategies which also allow companies
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to solve HR issues. Some HR practices which this has shown include: rewards, training to
employees.
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REFERENCES
Books and journals
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management. Oxford
University Press.
Chen, Q. and et.al., 2016. Characterization of chromophoric water-soluble organic matter in
urban, forest, and marine aerosols by HR-ToF-AMS analysis and excitation–emission
matrix spectroscopy. Environmental science & technology. 50(19). pp.10351-10360.
Franco, C. and et.al., 2017. Matrix metalloproteinases as regulators of periodontal
inflammation. International journal of molecular sciences. 18(2). p.440.
Mohammed, D. and Quddus, A., 2019. HR Analytics: A Modern Tool in HR for Predictive
Decision Making. Journal of Management. 6(3).
Rigolizzo, M. and Zhu, Z., 2020, April. Motivating reflection habits and raising employee
awareness of learning. In Evidence-based HRM: a Global Forum for Empirical
Scholarship. Emerald Publishing Limited.
Salah, M.R.A., 2016. The influence of rewards on employees performance. Journal of
Economics, Management and Trade, pp.1-25.
Stokes, P. and et.al., 2016. Managing talent across advanced and emerging economies: HR issues
and challenges in a Sino-German strategic collaboration. The International Journal of
Human Resource Management. 27(20). pp.2310-2338.
Van Beurden, J., Van Veldhoven, M. and Van De Voorde, K., 2018, July. When are HR
practices effective for job performance? The role of employee HR Effectiveness ratings.
In Academy of Management Proceedings (Vol. 2018, No. 1, p. 14185). Briarcliff Manor,
NY 10510: Academy of Management.
Ybema, J.F., van Vuuren, T. and van Dam, K., 2020. HR practices for enhancing sustainable
employability: implementation, use, and outcomes. The International Journal of Human
Resource Management.31(7). pp.886-907.
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