Introduction

1. Toyota Motor Corporation founded by Kiichiro

Toyoda in 1937
2. Employed 317,734 people worldwide 3. World's largest automobile manufacturer by sales and production.

Toyota System

1. Face Challenge

2. Kaizen (improvement)
3. Respect, and Teamwork

HR. in Toyota Company

MAIN Philosophy BEHIND HR

Company organization structure

Multi-function concept Mobility of Members Promotion policy Social welfare:

1. health care
2. Long term disability plan

Terms and conditions

Fully Committed and Thorough Human Resources Development Diversity and Equal Opportunities

Identification the Problem Several mechanical failures Damaged the automakers brand reputation Sales to fall

Cause of the problem

Production sector:

This is a result of poorly designed practices;

HR sector weak execution on the part of the human resource department (writes Dr John Sullivan).

Video
http://www.youtube.com/watch?v=81hrSnx0wbo

HR processes for downfall

The 8 HR processes that contributed to Toyotas downfall: 1. Rewards and recognition; 2. Training; 3. Hiring; 4. The performance management process; 5. The corporate culture;

6. Leadership development and succession;

7. Retention; 8. Risk assessment.

1. Rewards and recognition

to encourage and incent the right be saviors and to discourage the negative ones.

Its important for the reward process to incent the gathering of information about problems.
Its equally important to reward employees who are successful in getting executives to take immediate action on negative information

2. Training
Make sure that employees have the right skills and

capabilities to identify and handle all situations they

may encounter. Toyota is famous for its four-step cycle:

(plan/do/check/act) The training focus more on the last two. Key question If Toyotas training was more effective, would the managers involved have been more successful in convincing executives to act on the negative

information received?

3. Hiring
The purpose is to bring on board top-performing
individuals with the high level of skills and capabilities. Poorly designed recruiting and assessment Key questions Did Toyota have a poorly designed hiring process that allowed it to hire individuals who were

not experienced in the required constructive confrontation

technique? Were their hires poor learners that did not change as a result of company training?

4. The performance management process

Periodically monitor or appraise performance, in order to identify problem behaviors before they get out of hand.

If the measurement system included performance

factors to measure responsiveness to negative in formation, Toyota wouldnt be in turmoil today.

Key questions Did Toyotas famous high level of trust

of its employees go too far without reasonable metrics, checks, and balances?

5. The corporate culture

Informally drive employee behavior so that it closely adheres to the companys core values.

It appears that the corporate culture created leaders so

concerned with saving face and so adverse to negative publicity.

As a result, it is the culture within the corporate offices

that need to be more closely monitored rather than assuming that the culture was aligned...

6. Leadership development and succession

Ensure that a sufficient number of leaders with the right
skills and decision-making. It is likely that the leadership development and the pro

motion process both failed.

Key question Was the leadership process at Toyota so outdated that it produced the wrong kind of lead errs with outdated competencies, who could not successfully operate in the rapidly changing automotive industry?

7. Retention
Identify and keep top performers and individuals with mission-critical skills. Key question Did the retention program ignore people

that brought up problems and as a result, did these

whistleblowers often leave out of frustration?

8. Risk assessment
HR should have worked with corporate risk man agreement at Toyota to ensure that employees were capable of calculating the long- term actual costs of ignoring product failure information.

Key question Should HR work with riskassessment experts and build the capability of identifying and quantifying the revenue impacts of big HR errors, including a high hiring failure rate, a high turnover rate among top performers, and the cost of keeping a bad manager or employee?

Conclusion
Toyotas problems are not the result of a single individual making an isolated mistake, a companywide series of mistakes that are all related to each other. So many corporate functions were involved, including: customer service, government relations, vendor management and PR, that one cannot help but attribute the crash of Toyota to systemic management failure.

 key lesson

Toyotas mistakes is that HR needs to

periodically test or audit each of the processes

that could allow this type of billion-dollar error

to occur.

MBA

Human Resource Management