Effective Human Resource Management in Toyota Motor Corporation

Desklib offers solved assignments and past papers to help students succeed.

Human Resource Management
1

Table of Contents
Introduction...................................................................................................................... 3
LO1 Explain the purpose and scope of Human Resource Management in terms of
resourcing in Toyota with talent and skills appropriate to fulfil business objectives.........4
LO2 Evaluate the effectiveness of the key elements of Human Resource Management
in Toyota.......................................................................................................................... 7
LO3 Analyse internal and external factors that affect Human Resource Management
decision-making, including employment legislation........................................................13
LO4 Apply Human Resource Management practices in a work-related context............18
Conclusion..................................................................................................................... 21
References.....................................................................................................................22
2

Introduction
Human resource management plays a very important role in achieving the success of
the organization. Human resource also helps in improving the brand image that helps
the company to sustain in the market for the long run. This assignment will provide a
thorough understanding of the concept of Human resource management and also the
HRM in respect of Toyota Company. This assignment will include key elements of HRM,
different factors such as external and internal that affects the HRM practices and at last
there will be rational development of application in specific HRM will be done.
To study this report Toyota has been chosen, Toyota Motor Corporation is a Japanese
multinational automotive manufacturing company. This company is consisting of
364,445 employees across the world as per the report of 2017 and this company is
securing 6th largest company in all over the world in terms of revenue. This company is
known as the market leader in selling hybrid electric vehicles.
3

4

LO1 Explain the purpose and scope of Human Resource Management
in terms of resourcing in Toyota with talent and skills appropriate to
fulfil business objectives.
Human resource management considers people as assets of an organization and also
works to develop job satisfaction, internal customers and create employee effectiveness
and efficiency. HRM is basically communicating with employees and develop the
structure and culture as per the needs such as re-engineering processes and
negotiation with unions. HRM is the one who leads the employment life cycle by enticing
and hiring the right candidate for the organization.
Because every organization is made up of people and HRM is all about obtaining the
people, develop their skills then motivate the employees to reach the foremost level as
ensures that employees are committed towards the organization (Bratton and Gold,
2017). In simple words, HRM is all about management of employees from recruitment to
retirement. Although there are a various function of HRM that are discussed below-
Recruitment and selection- recruitment means enticing, screening and selecting the
interested and potential candidates who are qualified for a particular job. To attract
qualified applicants is known as recruitment.
Before recruitment, every company develop a staffing plan that includes a number of
employees needed in the organization that means forecasting of employees
(Northouse, 2018). Thus, the recruitment and selection process is very essential for an
organization as it reduces the risk of mistakes such as under qualified employees,
unmotivated and incompetent.
Orientation- this is the most important step to help the newcomers in the organization.
The orientation helps the new employee to know about the goals and objective of an
organization in order to achieve long-term and short-term goals. Orientation is the major
function of HRM as this program defines the roles and responsibilities, position, the job
description of a new employee in the organization.
5

Maintaining good working conditions- this is the main responsibility of HRM to
provide positive and good working conditions for every employee that can motivate the
employees at the workplace (Bratton and Gold, 2017). Good environment consist
system like where employees gate financial and non-financial benefits for
encouragement. And also employee welfare that creates job satisfaction among the
employees.
Managing employee’s relations- as employees are the pillars of the organization.
Thus, t maintains the employee's relations is the crucial function of HRM. HRM has the
ability to influence the output of work by influencing the behaviour of the employees
(Bratton and Gold, 2017). Organization of employee's activities must be managed by
HRM so, that employee relations can be balanced. Relationship management is the key
to success in the organization.
Thus, HRM is responsible for the overall activities of employees such as their safety,
health, motivation, planning for training and development, hiring and selecting
6

employees, etc.
Figure 1- Functions of Human Resource Management
Source- Cairn.info, 2018.
With the preparation of job description, person specification, clear details or guidance
how to apply for job and reward packages, company needs to adopt suitable
approaches of recruitment and selection to attract the right candidate for the job. Here
are some approaches with their strength and weaknesses-
Websites and online job boards- job boards such as monster.co.uk that can be used
by the organizations to entice the candidates or companies can directly attract the right
candidate through their own websites (Northouse, 2018).
Advantage
 Quick applications and global reach
Disadvantage
 Attract a large number of
7

 Cost-effective
 The technology effectively
coordinates in the processes
 Ability to speed up the cycle of
recruitment.
inappropriate candidates.
 The badly designed website can
damage the rand image or turn-off
the potential applicants.
 Leads discrimination where
applicants are not computer
friendly.
Recruitment agencies- these are the private sector agencies which provide permanent
and temporary placements.
Strength
 Involvement of specialists
knowledge and expertise in the
recruitment market
 High quality of candidates
 Reduces the administration as
agencies perform many tasks like
advertising, etc.
 If no hires then no fee and no risk.
Weaknesses
 Costly as they charge 20% of
appointee’s remuneration.
 Often candidates prefer contacting
directly to the employer rather than
the agency.
 Sometimes agencies do not meet
the expectations of employers.
Consultants- they are basically headhunters. This approach is adopted when the
senior post is vacant and this vacancy does not need to be publically knowledge.
Strengths
 Carefulness
 Identification of the candidates who
can do the job.
 Specialist knowledge about the
recruitment
Weaknesses
 Limited pool of desired candidates
 Costly
 Unavailability of shortlisted people.
8

Press advertising- this includes local newspapers, national, specialist/trade journals as
people are more towards looking for professional journals firsts for the vacancies
(Northouse, 2018).
Strengths
 Recruitment message and brand is
positively communicated
 Helps in building brand awareness
 The present positive message of
the company at the marketplace
 Fixed cost
 This helps in targeting people with
specific experience and skills
through trade publications
 Publications offer online and print
packages
Weaknesses
 High advance costs and no
guarantee of success.
 Cost of administration is a high and
heavy resource
 Its slow process
 Less control over where the ads are
being placed within the press.
 Limited coverage as limited to those
people who read newspapers
 Limited reporting and measurement
of success.
Apprenticeships- it is the easiest way for employers to reduce the recruitment cost.
Strengths
 Development of skills in house
 Generation of commitment towards
community
 It offsets the cost
 This boost up the loyalty
Weaknesses
 Time-consuming
 Sometimes do not works well as
classroom learning not always
suitable.
HRM of Toyota always makes sure that the process of selection is a consonant,
compatible, cost-effective and fair approach in order to recruit the candidates. The basic
objective of recruitment is to have the right candidate in the right place or job at the right
time to meet the objectives of an organization. The policies of HRM in Toyota comply
with the requirement of the organization, departmental, meeting with legal and equality
9

requirement in supporting the best practices in the organization. HRM in Toyota takes
all the responsibilities of managers and employees (Northouse, 2018). The recruitment
process of Toyota includes job description, advertising and job or person specification.
The selection process of Toyota includes shortlisting candidates, then interview,
presentations, tasks, aptitude test and psychometric testing. Recruitment and selection
process provides many opportunities for this organization by supporting a skilled set of
staff as well as planning for individual and departmental growth. Whereas this requires
lots of efforts in assessing appropriate planning and evaluation in order to hire the right
person for the job role.
LO2 Evaluate the effectiveness of the key elements of Human
Resource Management in Toyota
HRM plays a very crucial role in the organization as the HRM has many responsibilities
within the organization as they protect the interest of both employees and employers.
For employees, it protects the rights of employees and makes sure that employers are
operating under the labour law and the scope of employment. For employers, HRM
helps in managing employee relations as well as provide ways to reduce labour costs.
There are many other benefits of HRM practices to employees and employers that are
discussed below-
Training and development-
The statement of Toyota- “we do not just build cars, we build people”. The
philosophy of training and development of Toyota is that every defect or flaw is an
opportunity to develop or build people. Training and development is the number one
priority of Toyota. HRM has the responsibility of conducting training and development in
order to help the employees, so they organize the training programs according to the
needs of workers by delivering through the appropriate method of training (Johndenver,
2013). HRM treats employees as an important asset so, by utilizing this asset in a
proper manner helps in increasing the customer services and sales skills. HRM
provides continuous training programs that provide opportunities for employees to gain
10

additional skills and experiences. Moreover, HRM provides support to develop the
employee career by pursuing future opportunities.
Conflict resolution-
HRM provides help in resolving the disputes within the organization, whether between
management and employees or between employers and employees. HRM formulate
essential policies and procedures in a company that defines a proper working
environment and behaviour. HRM also provide assistance in resolving or rectifying the
poor attitude, disrespectful behaviour, insubordination, inappropriate language and
another disturbing behaviour at the workplace that can lead the disciplinary and conflict
action.
Employee relations-
HRM provides support to the employees or employers who feel that their rights are
getting violated. Employers and employees can contact the HRM for remedy if they
experience any kind of harassment and discrimination in the organization. Thus, HRM
provides harassment laws, anti-discrimination and guide employees in legal matters
(Johndenver, 2013). HRM also arbitrate disagreement between the employers and the
employees in order to avoid the legal actions or litigation.
Information resources-
Another important practice of HRM is to provide essential information to employees and
employers. For instance, a worker or a supervisor cannot answer the questions that are
related to an employment matter, this question can only be answered properly by the
HRM in the organization. Thus, HRM provides information such as employee assistance
programs, leave for absence, employee’s compensation benefits and other employee
benefits. If an employer or an employee needs personal guidance or assistance so, the
HRM also provides confidential assistance.
11

Figure 2- Human Resource best practices
Source- DIGITALHRTECH, 2019.
HRM is basically concerned with the planned management of employees in the
organization so that the organization's performance can be optimized. As HRM consist
of many practices like health and safety, training and development, performance
appraisal, recruitment and selection, job evaluation and most importantly human
resource planning. This is a comprehensive list. However, HRM practices are an
important and essential piece of organizational strategy. In early times, The HRM was
associated with the strict and extreme styles of management such as cost-cutting, work-
intensification and downsizing (Ghiyasvand, 2013). Nowadays, organizations are more
focused towards individual development to achieve the organizational needs so,
organizations are hiring well-educated, intelligent and highly motivated workforce.
Therefore HRM, refers to the employers caring for the employees, educating them,
supporting and enabling them to bring out their potential, consulting them, and many
more supportive activities they are performing in order to achieve the higher
productivity and profitability. A recent study has stated that the effectiveness of HRM
practices is getting affected by the morale of employees (Ghiyasvand, 2013). HRM is
12