Toyota Hr Practices Essay Sample

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Toyota is one of the world’s biggest automobile companies, which is selling more than 9 million models in all over the world. In 2010, Toyota employed 300,734 people worldwide. A top 10 Fortune Global 500 enterprises, Toyota ranks among the world’s leading international corporations. Toyota is very much proud to be the most admired automaker; an achievement the company believes stems from its dedication to customer satisfaction. Toyota has been shaped by a set of principles and values that have in the roots of the company. Toyota is a leading Japanese automobile company, with sales operations carried out all five continents and with over 9 million cars sold in the year 2006. It also has itself listed within the top 10 companies according to the fortune 500 companies. Mr. Kiichiro Toyoda laid the foundations of Toyota Motor Corporation (TMC), which was established in 1937. Toyota first operations started in Denmark, and since then there has been no looking back for Toyota.

Toyota believes in the policy of localization. This policy means that Toyota produces their automobiles within the area in which they are sold. Toyota believes that this policy will help better understanding the needs of different community groups. Toyota became the no.1 automaker in the year 2007. They overtook GM, who was previously at the top. The reason behind this is the fuel-efficiency and economical cost. Toyota cars are not only reliable, but also user friendly. GM has had to lay back its employees and cut down operations, where as Toyota is expanding its teams and increasing production rapidly Grace, F., 2007) Toyota has also proved itself as a leader in technology by the introduction their hybrid car, Prius.

This car was established as one of the most popular hybrid cars. However, looking at the current scenario, Toyota is facing problems with the 2010 model of the Prius. Estimations say that Toyota has called back around 8 million cars due to technical faults in these cars, some of the major problems dealing with their brakes. Toyota in the current market of today is facing tough competition from car manufacturers such as GM and Ford. Toyotas sales fell by 16% in January 2010 while the sales of GM increased by 14% while Ford’s share grew by 25 %. (7DAYS newspaper, 2010) In sum, the motivation of Toyota is always inclined at lowering costs while strengthening the competitive advantage through quality enhancement. Recruitment and selection of new employees

Toyota management knows that their success and survival totally depends upon the quality of their employees that is why the role of HR department becomes very vital and essential, because the success of Toyota is based on the selection of skilled and able employees. So, in the very competitive auto market recruitment and selection process should be complete. Employee’s recruitment process includes the following steps. Step: 1 complete on-line application

You can apply for a post in Toyota by filling the complete online application form. All the application form must be submitted before the due date. Step: 2On-line assessments

If your application is successful after screening, then you will be invited through email to complete an on-line test session. This will be consisted of two tests. The test session will be approximately an hour to complete. You will receive full instructions and example questions before each test. Step: 3 Assessment centre at Toyota

If you have successfully completed the aptitude tests then you will be invited via email to participate in an Assessment centre at Toyota, where you will participate in several individual and group challenges and activities to evaluate how good you are against the basic Toyota competency structure. Step: 4Final Interview

This is the last stage of evaluation. You will be interviewed by a group of experienced members who will use an objective competency structure to judge if you are the right type of individual to work for Toyota. This interview usually takes one hour. Steps: 5 Conditional Offer of Employment

If your application is successful after the final interview we will make you a conditional offer of employment Step: 6 Final Employment Checks
You will need to present appropriate documents to verify your legal right to stay and work in the relevant country. We will request you to contact two of your referees by telephone. One must be an academic referee. The other will normally be an employment referee or character referee depending on which position you have applied for. Additionally we will ask you to complete a confidential medical questionnaire and attend a physical assessment. Step: 7 Unconditional Offer of Employment

Once we have verified the above and your legal work status, grades, references and medical outcome are satisfactory we will then issue you with an unconditional offer and look forward to you starting with Toyota Motor Manufacturing Ltd.

Training& Development
Because people make our automobiles, nothing gets started until we train and educate our people.” As seen in these words, which were expressed by Honorary Advisor Eiji Toyoda, Toyota seeks to develop human resources through the activity of making things. Toyota leaders truly believe that their only source of competitive differentiation is the brilliant people they develop, and that is always their top priority. Of course the wise farmer selects only the best seeds, but even with careful selection there is no guarantee that the seeds will grow, or that the fruits they yield will be sweet, and yet the effort must be made because it provides the best chance of developing a strong crop.

Training And Development Policies

Training is directly connected with the job performance of employees, so that it is one of the most important activities. Training and development is “continuous process” at Toyota. Toyota believes that developing employees’ potential is critical for organizational effectiveness.

“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” Abraham Lincoln

On the job development

Toyota conducts systematic company-wide and divisional training and assignments for training purposes with an emphasis on on-the-job training (OJT) to ensure that associates can fully utilize their abilities. On the job training is essential part of Toyota Way which gives a chance to new members to learn high tech production themselves. The On-the-Job Development course provides managers and supervisors with a standardized approach to facilitate employee development in their daily work. The purpose of the course is to help employees to practice the Toyota Way principles. The course takes the participants through the four stages in the Plan-Do-Check-Act cycle.

Company-Wide Training to Support Professional Staff

Toyota has defined the required qualifications of “professional staff”1 for office and engineering positions, and “T shaped human resources”2 who are able to perform day-to-day activities and expand their skills in technical positions. Company-wide training is conducted based on employee qualifications, as well as specialized training for individual divisions, language training, and special knowledge and skill training.

According to the scope and requirements of the jobs, some of our employees are sent to Japan for different intervals starting with 1 week up to a couple of years. Purpose of those trips are training, self improvement and some times to provide hands on experience at mother plant in Japan.

Booklet (Toyota):

In October 2002, Toyota created the booklet “Toyota — Developing People” and distributed it to all associates to create a common understanding that “the source of Toyota’s competitiveness is human resources development” and to promote the creation of workplaces where personnel development takes place at all sites and at all levels.

Goals of Toyota T&D System:

•To provide a productive and skillful work force through on-the-job training
•To manage and develop in-house training activities
•To provide proper training for the promoted employees, in order to prepare them to the new responsibilities
•To realize training activities in the most efficient way
•To update and extend employees’ knowledge, skills and experience
•To enhance job satisfaction and motivation


Compensation & Reward
Stable Employment:
A key pillar of stable employment that supporting the relationship of mutual trust between labor and management is to avoid layoffs and terminations to maximum extent. The layoff and terminations damages the relationship, trust and handiness the maximization of ability of employees. The basic principal of Toyota’s management philosophy is to take always a medium to long term management side and to maintain the stable employment through all possible measures. Communication with Employees:

For good and healthy communication with its employees, Toyota offers the many opportunities.
1. Discussion between labor and management
2. Labour management council
3. Joint labor management round table conferences
4. Varioussubcommittees.
Toyota also established a number of hotlines for swift and proper resolution of issues which are related to 1. Complaince
2. Gender Irritation
3. Mental health
4. Working condition etc.
Communication with employee’s families:
Toyota created the Toyota famli-net, which is a family oriented website to make healthy communication with employee’s families. Greeting cards also sent to employees and their families, from the president, at the end of the year. Training on a global scale:

Toyota established the system Inter-company transfers (ICT) for the overseas workers and employees that allow them to work at TMC for two years training on global scale. Employment of Elderly workers:

When Toyota’s employees reaches to the age of 60 Toyota have again take the undertaking from the employees and ask to employees are they want to do more work here or not? For expanding the interest in employees and for securing the livelihood. Women employment:

Toyota rolled out the diversity projects and takes more interest in promoting active role for women they develop well organized programs which help women to work and raise children at the same time and providing such environment which is suitable for women and they feel comfortable there. Long-term Contracts Offered to Contract Employees:

In 2004 Toyota enhanced the contracts of the contract employees from one year to three year because people find that contract work which is more stable.

Childcare Centers:
Toyota opened the childcare centers for balancing the work and childcare at the same time to support the employees. Childs safely play in childcare centers during the working hour of their parents moreover Toyota increases the child care leaves and also increases relaxation in working hour of employees for look after their Childs so company adopting flexible working hour policy for employees and shortening of working hours.

Employment of Disabled People:
Toyota’s disabled employment ratio is increases from 1.8% to 1.84% in 2005 because it employed 832 disable people in 2005 so company’s legal employment quota is exceeding for disabled persons Toyota also giving them work on different type of work places and accommodate them in many ways.

Health and Safety:
For the improvement of health and safety, company implemented PDCA management cycle as a part of daily routine. P(plane),D(do),C(check) and A(act).
Stop6-type accidents which means in 6 type of accidents employees losses their lives like caught by machines, contact with heated objects, with the fallen of heavy object, electric shocked. So deaths and dismalness of employees is stopped. Lockout systems are also introduced so power is not come back into the machine during the repairing of the machine.

Building Good Health:
Toyota company providing time and equipment for exercise and also conduct different type of health seminars for building good health of its employees.

Mental Health Care:
Toyota conduct active listing courses for newly employed managers, supervisors and also train employees self care techniques, stress management methods and other measures. Active listing courses means methods of good communication and sympathy for other’s feelings and emotions. (

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