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Background Of Toyota Engine Company Limited Management Essay

Since it was founded in 1937, Toyota Motor unit Company has added to the development of the auto industry and world by providing people with quality vehicles. TMC companies automobiles in 25 countries and parts all over the world. Today, its vehicles are sold in more 160 nations worldwide under the brand names of Toyota, Lexus, Daihatsu, and Hino, developing small vehicles to luxury sedans, full-sized pickups, and crossover vehicles.

This report is mainly concentrating on the human learning resource management system of Toyota Motor unit. The major issues like technological issues of HRMS, change management and invention to management style of Toyota Engine Company at length. In addition, it depicts the relation between the individuals source management system and among these key issues in the framework of Toyota engine company.

Technological changes in HRMS of Toyota include the recruitment and selection process of Toyota and different techniques how to encourage and encourage employees to the targets and goals of group. In change management an example of change management has been make clear about the Toyota Electric motor and different varieties of management which are used in Toyota are also express in detail and some techniques which Toyota's management is using to regulate and directing its employees.

Some recommendations are given by the end of the article on those areas where Toyota needs some advancements.

Background of Toyota Engine Company Limited

Toyota Electric motor Co. Ltd. (TMC) was initially set up in 1937 as a separated company from Toyoda Car Loomworks, the leading production of weaving equipment. The Toyota Car Loomworks was then going by Sakichi Toyoda, the ruler of buyers (Schewe, Charles and Hiam, Alexander, 1998).

The gigantic automaker confronted its one and only reach in 1950. This event, however, provided Toyota an important viewpoint, offering it the labour and management system which helped Toyota to get mutual progress and success in both domestic and overseas market segments. Today, this philosophy is vital to the composition of Toyota.

Toyota's creation system upgraded in the past due 1950s, creating the 'Toyota Development System. This technique became the major element in the reduced amount of inventories and defect in the plants of Toyota and its own suppliers. In addition, it underpinned most of Toyota's functions across

the world. It launched its first small cars in 1947. The procedure outside Japan were only available in 1959 in Brazil and sustained with growing network of international plants.

Toyota celebrated its 60th anniversary in August 1997. It is convinced that its local creation provides customers with the productions they want, presenting it the secure and long-term development. In addition, it has a worldwide network of design and research and development facilities, consisting Japan, THE UNITED STATES, and Europe market segments (Schewe, Charles and Hiam, Alexander, 1998).

Toyota is at get ranking 8 in bundle of money global 500 2007 companies of the world Toyota Motor unit Company is committed to the process of Equal Opportunities by giving fair and equitable treatment to all or any individuals and applicants. Toyota looks for to follow the objective as well as the notice of appropriate legislation in these concerns and Toyota management team is committed to the advertising of and adherence to the Equal Opportunities Insurance plan.


Why Toyota Engine need Advancement and Change?

Any company needs change for some reason. It may be for its success if business is not doing well or may be business wishes to achieve competitive edge. Sometimes this change is necessary due to the external pressure like mergers or change in any legislation. Overall change is good for the benefit of the business and their employees. There are so multiple reasons for the Toyota for the technology and change that are:

Reduced Sales

Customer Turnover

Employee Turnover

Loan Repayment

Investments in a new project

Extension of Firm i. e. overseas business

Need for Technology

Core Competence

Customer Value Creation

Basic Issues to Toyota Electric motor Company

In days gone by, Toyota had not been giving much focus on its Human Learning resource management system but now it is known that success of the Toyota is more determined by its employees rather than on any thing else. Toyota Motor also thinks its employees are belongings to them and sometimes they give more focus on the employees than customers. They consider on the idea that organization with more satisfied employees having more satisfied customers. So now, It's important for the Toyota to choose the right employee for the right job. Because one incorrect decision regarding collection of the staff will damage Toyota till that employee will work on that job. The three most essential issues related to HRMS of Toyota includes

Technological Changes in HRMS of Toyota

Innovation to Management Varieties of the Toyota HRMS

Change Management point of view of Toyota HRMS

Technological Changes in HRMS of Toyota

In this competitive environment of global business, it was very difficult for Toyota Motor Company to remain always competitive and monitored profitable relationship with the clients. Toyota Engine is the 3rd best automobile organization of the world and it always needs development (Ronald J. Burke, Cary L. Cooper, 2006). Innovation can maintain any form or in any field e. g. it could be in the look, production techniques, quality, product, managing human source of information effectively etc. in this record main concentration will be on the individuals resource management system of the Toyota. The answer of technical changes in HRMS of Toyota includes:

Innovation in recruitment and selection process

How Can Toyota keeps employee's satisfaction and low employee's turnover

Innovation in recruitment and selection process of Toyota

With the duration of time, so many technological changes have also come into the recruitment and selection procedure for the Toyota. Now for selecting employees Toyota offers special attention. Because finding right staff for the any position is necessary for the Toyota Motors (R. L. Compton, Alan R. Nankervis, 2008). The first rung on the ladder in the process of acquiring the human tool for the Toyota is to designate the kind of work which is done by the employees. Job evaluation and job design will be the process used to find out this

Job Analysis

Job Design

Training of Employees

Job Analysis

Job Examination means gathering the essential information regarding the nature of the precise job. It is determining the responsibilities that comprise the job which include skills, qualification, abilities and connection with the employees (Ronald J. Burke, Cary L. Cooper, 2006). Now job examination is must for each and every job in Toyota Motor. Job analysis provides as groundwork of the every human being resource functions.

Products of job Analysis

Job description: means written synopsis of characteristics of the job.

Job specs: means information of competencies, educational, and experience qualification the incumbent must own to perform the work.

Job Analysis Method

Different methods are used by the Toyota for the work analysis that happen to be:

Observation (Action and time analysis, Work Sampling)



Functional job Analysis

Job Design

Job Design is the process of structuring work and planning work for the specific job in Toyota. Job design gives the answers to basic questions of the way the job is performed, who is to perform. Both job analysis and job design are associated with one another. Two dimensions of job design include job opportunity and job depth (Ronald J. Burke, Cary L. Cooper, 2006).

Job scope identifies the number and variety of jobs performed by the jobholder in the Toyota Electric motor Company. In Toyota's working environment most jobs have high job scope. In employment with less opportunity, jobholder must performed few duties. Low job scope can be the reason behind dissatisfaction of the particularly job.

Job depth identifies the independence of the work holders to plan and coordinate their own work. Toyota's management offers flexibility to its employees up to his control or limit and works at your own tempo and communicates matching to your need (R. L. Compton, Alan R. Nankervis, 2008)

Training of the employees

After selecting the employees, Toyota set up training activities because of its employees. To get this training is compulsory in Toyota. This training is very helpful for the employees and it takes less time to learn the employee's lots of things than learning on job from own experience. Toyota Engine used different methods for working out of its employees like some lectures and training classes are assemble on their behalf or give them on job training with the senior members who are experiencing vast experience and can help the employees in its training. Job rotation is another term which is employed for learning and expanding new skills of the employees.

How Toyota can maintain employee's satisfaction and low employee's turnover

In managing human tool of the Toyota effectively the first rung on the ladder is to choose the right staff for the right position. For this right selection of employees, it's important for Toyota to make use of new innovative techniques for selection of employees, compensating and rewarding to employees. Because job satisfaction is the most crucial adjustable and Toyota's success will depend on its employees. So, Toyota always follows the innovative techniques for managing its individual source. Satisfied and devoted employees are asset for the Toyota. It includes seen organization with an increase of satisfied employees perform much better than other whose aren't satisfied. So, Toyota's success or failing also depends on its employee's satisfaction or dissatisfaction. Organization whose employees are dissatisfied with the jobs cost too much to the organization. Mainly they will be absent from the task or might quarrel with the co-workers. These employees do not take interest in their job which affects the overall efficiency of the business and ultimately firm will suffer. There are so many reasons because of their dissatisfaction; it could be the environmental conditions where they work, Characteristics of the task like repetition etc. There are different techniques which are used to make employee satisfied and in the end low employee's turnover which can be:

HR Development

Career Development



Skills and understanding of staff is vital for Toyota's innovation process. A lot of the invention ideas are come through the employees of the Toyota Motor. But the time is changing so quickly that each technology and change becomes outdated in no time. It's important for the Toyota that its employees stay up-to-date with the data and changes to contend in the industry

Career Development

It is the work of the Toyota's management to provide the development opportunities to its employees. Career development can be an ongoing process that focusing on the developing and enriching the organizations human being source of information in the light of both worker and corporation need. Additionally it is the responsibility of the Toyota's worker himself to think about his profession development. It is something which you can not do for others. It must come from the individual himself. Toyota also helps, guide and opportunities to its employees.


Motivation is a sense of satisfaction and commitment towards its goals and objectives. This is an interior psychological express which can determine the action of the individual. Employees are determined via different ways. It is important for Toyota to provide much focus on the needs of its employees and excersice in the desire way. Toyota enhances its employee's inspiration through two basic ways:



Financial motivators

Toyota's financial motivators are connected to the economic need of the employees which include salary system, bonus deals, and allowances etc. which have usually short-term effect on the employees.

Base salary:

A person is paid an income for the work he/she is doing in a particular time. In Toyota, person's basic salary depends after his knowledge, skills, certification and competencies of the worker. Basic salary should be compatible with the job. It really is necessary for the Toyota to provide the suitable salary to its employees which keep them encouraged and devoted.

Variable pay

Sometimes Toyota gives bonuses to employees to improve or improve the performance of the employees focusing on the specific goals or projects.

Financial rewards provide financial acceptance to people. Extra money is given to the employee because of their achievements.

Benefits are also given to the employees because of their well being which includes contribution to pension account, health insurance strategies, life insurance, loan without interest or lower interest, free use of products or services of the business, etc.

Allowances for relocation, transport, subsistence, accommodation, recreation, etc

Non-financial drive techniques

The most important technological changes which are used by the Toyota to encourage its employees include non-financial drive techniques. These non- financial motivators are incredibly effective it cost nothing at all to the Toyota but rely upon the determination of pertinent managers to pay more attention to their staff. These non financial motivators are connected to the task itself and having an extended term result. Non financial motivators are honors, self respect,

Change Management perspective of Toyota HRMS

"Change Management" as it seems composed of two words Change plus Management. Change means "to convert" while management means "the art work of managing, leading, managing and decision making". So obviously change management means the art of controlling, leading, company and decision making in the change process (J Dawkins, 2007)

More accurately, in the context of Toyota Electric motor, we can specify change management as organized methodology of changing the individuals, teams and organizations from current state to the required point out. This change may or may not include all the employees of an organization.

In the situation Development of new system was very important for Toyota Electric motor. Company was using old system but new computerized system was needed. And Toyota was facing problems in changing the old system due to its employee's behavior (Chaffey D, 2004)

Change Management process

Change Management process includes the Toyota' framework, pace and range of change, people management, change management content plan page and implementation of plan

In Toyota's Context

In Toyota Motor unit company, management decided to change its old manual accounting system with new computerized system. Toyota Company needed the new computerized system for the next reason: Toyota Motor unit wanted to increase its efficiency in conducting business and also wanted to gain competitive benefits over its rival. For the development of new system company needed the services of the other company (J Dawkins, 2007)

The new system was following the stage of successful evaluation was almost complete and the one problem for Toyota was the implementation because its employees who were resisting this new change they were thinking that after the development of the new system they will have problem to use it plus they have to made major modification even layoffs are expected therefore of new system in reality company was predicting for the growth they were planning for product development and wanted to add new models and staff for managing this growth (Ayse Saka, 2003). After this implementation of new system lots of employees of Toyota was taking into consideration the early retirement.

Pace and Size of Change in Toyota Engine Company

In tempo and range of change business must know that how many people are damaged with the introduction of the new system. For this organization can make different ways that how they'll know about these damaged employees because this new system have been used by the same people there is very high cost fastened with the new system so Toyota Electric motor had a need to know exactly about the number of individuals who are influenced and how often that they had to improve their attitudes and habit. Toyota should know the period of time where the old system will be replaced by the new computerized system (Joel Oleson, 2009)

For this change Toyota needs a sponsor and best person meets to the role are mature and the as influential personality of the Toyota. This is the first step for the Toyota to recognize the sponsor next thing was to identify champions and change agent who'll bring this new change system in the organization.

People Management in Toyota

In the new system development process at Toyota the most complicated stage in the process was people management. This is actually the most difficult process of development of new system. Because people will be the final user for this new system in cases like this Toyota was facing some challenges as their employees weren't favoring the new system scheduled for some future uncertainties e. g. these were being their selves insecure that this new system will be damage for the kids (Joel Oleson, 2009)

It will not in the benefit for them. There are so many ways company can manage this problem of contradiction (Ayse Saka, 2003). First it is the responsibility of the Toyota's management in order to about the change to its employees who'll be afflicted by this new system. They must be aware of relating to this system before it's starting so, then these hurdles do not exist. Now proper training is necessary for the employees who'll utilize this new system. They must be trained and learned to use new system. Toyota should communicate new system's benefits and new opportunities that will arise credited to execution of the new system to the employees like presentations, highway shows; team briefing and regular meeting of the senior employee would be called and set up for the employees.

Toyota's Change Management Plan Details Page

Change management is an extremely difficult process that requirements a proper step-by-step process for the change in a company or organization. It's been often discovered that employees withstand to the change management process a lot. Same as the case of Toyota Motor which wished to implement a change within the organization and was facing level of resistance from his employees. Change management plan details page includes:

Initial Knowledge

Implementation Plan of Toyota

Initial Knowledge

For Toyota primary knowledge is called as the building blocks to the change process. Toyota Engine believes, when they have a strong release to your change requirements, they can have a first effect on the stakeholders who may be the cause of the amount of resistance to the change. The more impressive the benefits to the situation and the change need, you have the most chances of the success in the change management (Ayse Saka, 2003). An introduction is the area of the change process where you introduce the goals, needs, rules and regulations and deliver change success.

Implementation Plan of Toyota

For Toyota Execution plan in the change process works as the milestones towards Toyota's destination. In the plan first Toyota management pieces its milestones in order that they may not lose their keep track of from the change process. Plan has a substantial importance (Chaffey D, 2004)

. It helps the folks, technology, process, and the change implementers like Toyota Engine Company identify the service, reduce ambiguity in the change process looked after help to mitigate issues within the organization where change needs to be integrated. Communication

Whenever a change is necessary, the change management team is required to seek, produce and properly connect the evidences to Toyota's management in support to the change. Taking employees in self-confidence has a great importance for Toyota, as the change is mostly not implemented because of the level of resistance from the employees (Helen Taylor, Cary L. Cooper, 1998)

. And to get their support, it is generally required the good communications of the evidences to the support of change. Because if the employees will understand the huge benefits and reasons behind change, they will respond positively. Execution plan includes:

Readiness dimension By Toyota

Involvement of employees


Readiness way of measuring by Toyota

Along with the strong communication, Toyota Motor unit also measures the readiness to make use of the change in the daily businesses. If the staff will see it more ambiguous and difficult to implement, they will deny recognizing change as you won't be secure to them. It could harm their performance that will impact on their careers too. The experts in new system may replace them. So they will never accept the change. But if indeed they find the system is easy to use and change, then most staff will adopt changes for the long-term security.

Involvement of employees

Keeping the engagement of the staff and employees in the change process is also an important step for Toyota. In the event that you keep their thoughts and opinions and recommendations in the changing process, you may face very less possibility of the level of resistance from them. It will provide them with an affiliation with the change process (Helen Taylor, Cary L. Cooper, 1998). They will consider the success of the change as their success. Keeping them aware and entail also keep them aware what is going on so that there would be less chances of negative words of mouth area and rumours.


The new systems and the changing should have workout sessions for the employees who are use to the elderly systems and the business enterprise environment. The training consultations should be conducted by Toyota such that it may decrease the amount of resistance, to increase efficiency and also to avoid any risk in the stoppage of the production, jammed operations or other factors related to the less knowledge for the new systems (Chaffey D, 2004).

Innovation to Management Varieties of the Toyota HRMS

Different management styles are being used in Toyota to control its workforce. These styles are dependent on the on various factors e. g. culture of Toyota, characteristics of the duty, skills, certification of the employees, dynamics of the leaders (Kotter, J. and Schlesinger, L. 2003). Style of leader will depend on each one of these factors and after analyzing appropriate style is utilized. Sometimes different styles are used at same time to regulate the problem.

Different Management Styles

Normally there are three management styles which can be followed by the various organizations including Toyota which are



Lassie Faire


In Toyota's Autocratic style employee's involvement is nominal or not considered. No information is shared with the employees. Guidelines are placed and then tell employees to follow them. All of the objectives and goals are arranged by the Toyota top management. The communication stream is from up to downward from top level to low level. The advantage of this style is that aims and goal stay constant. These type of market leaders make unilateral decision and always keep an eye on subordinates if they are doing the right things. In this particular style subordinates have no control on any thing plus they simply need to follow innovator (Kotter, J. and Schlesinger, L. 2003). The disadvantage of the style is that employees are dissatisfied and which cause the reason of turnovers, absenteeism and low productivity.


In Toyota's Democratic style, employees type are used the look and decision making process. Employees are determined and encourage taking part in the affairs of the Toyota. In this particular style every problems and issues are solved with the consent of the majority. The communication flow is both way upwards to downward and vice versa. Democratic style is more often used at Toyota when the challenge is complex and need everyone suggestions. There are a few benefits and drawbacks of this style. Employees tend to be satisfied with their job and turnover rate is low and production is high. Down sides can include to get everyone consensus is difficult. This style is frustrating because it takes time to obtain the input from others.


In Toyota's Laissez-faire leadership style, leader provides free hands to employees or an organization or team and called for the outcome. Toyota's leader does not set any regulations. Toyota's employees establish the guidelines and objectives according to their need. Innovator role is very nominal in this style. The communication style is horizontal in this style (Kotter, J. and Schlesinger, L. 2003). This style is not very common in the so many organizations including Toyota but still used when management feels its need. There's also some disadvantages for this style, lack of staff concentration, no clear hierarchy, poor company image and less dissatisfaction of customers

How to control Toyota Human Resource?

Toyota motor company has also adopted the various management approaches for keeping its employees competitive, satisfied and solve all the problems related to its HRMS. These different techniques are:

Job rotation

Job Enrichment

Involving employees


Management by walking around

Employee driven innovation

Maintain an understanding sharing network

Job rotation

In Toyota job rotation is the newly concept and it is effective as well. The process of moving employees among different careers is job rotation. Job rotation helps employees to boost their skills, Knowledge and competencies. Employees get weary by doing the repetitive task every time so job rotation is a good way to keep them energetic and fresh each time (Jeffrey H. Dyer and Kentaro Nobeoka, 2000). Job rotation also ideal for the Toyota itself in the time of turmoil, if a worker is unavailable due to the any reason other staff can do its work

Job enrichment:

Toyota Motor Company recognizes intrinsic factors in employment such as achievements, responsibility and growth need the work enrichment. With job enrichment employees will be happy with the job and motivated to perform it. Combining jobs calls for existing and fractionalized jobs and sets them together and form a larger module of work. Creating natural work systems' tasks and employee does create an identifiable and significant whole. Establishing client relationship increases the direct romantic relationship with the customers. Expanding jobs vertically gives staff more responsibilities and control (Jeffrey H. Dyer and Kentaro Nobeoka, 2000). Opening feedback channel let us employees understands how well they may be performing their careers whether performance have improved or not or stay constant.

Involving employees

Take input from the employees to increase their commitment is important for the success of the Toyota. The amount to which decisions affect the employees and Toyota should require the employees. By increasing their autonomy and control over their work lives, employees can be more determined, more committed to the organization, more productive and even more satisfied with their jobs.


Keep informing the employees about the goals and direction of the Toyota. Communicate all the related issues regarding employee future, job and performance. Every single matter which Toyota can talk about to the employee should converse them. Almost everything which impacts the employees itself also communicated to them.

Management by travelling:

Visit to the Toyota's office buildings, factories, workshops, and labs regularly, always asking the employees about their work and work related problems, straighten out the problems and providing them with feedback etc.

Employee Driven Innovation

Toyota believes in assortment of key ideas and uses the encounters of most of the employees to produce opportunities and new ways for the kids. It is important to bring incremental changes in culture of Toyota, products, tendencies, processes, and running a business models that create value for customers, stakeholders and the business.

Maintain Knowledge writing network

It is necessary for organization to keep knowledge posting network that will assist in quick knowledge diffusion than other rivalling manufactures. Because of the best knowledge sharing network corporation can gain competitive gain on other competitors. Knowledge writing system made corporation effective and competent to do any thing with in no time. This knowledge writing network includes organization's employees, suppliers, management and all the related stakeholders. This network enhances the efficiency and reduced the delivery time. This knowledge writing network of will solve three basic problems:

Motivate and encourage member's engagement and reveal their valuable ideas

Reduce cost of doing business

Prevent free Riders


Studies have proven that organizational success is affected by the innovative management styles. These management styles are change from every organization to another organization. There are different managing styles which all used to manage employees. Management styles may bring success and advancement in the business but the most important thing is that management style should be suited to the organization

Satisfied and determined employees are asset for the Toyota. It offers seen organization with more satisfied employees perform better than other whose aren't satisfied. So, Toyota's success or failing also will depend on its employee's satisfaction or dissatisfaction. Organization whose employees are dissatisfied with the jobs cost too much to the business.

The Change Management Could comes from several many situations and could be applied in several many varieties. Actually the type of problem or situation makes a decision why and exactly how to change. The successful implementation of change depends upon the individual capital an organization possesses and also on the actions adopted to implement change. The primary purpose of organizational change is to bring about a tactical change in its organizational framework to better utilize its individuals and non-human resources to proficiently achieve organizational goal.


Effective and Timely Change Management is the trick of success of Toyota. But for effective change, Toyota must plan the look, sequence and implementation of change proactively.

Satisfied and devoted employees are asset for the Toyota. It offers seen organization with more satisfied employees perform better than other whose are not satisfied. So, it is vital for Toyota to maintain a healthy marriage with its employees in order to become competitive.

Today world is changing very quickly so Toyota should change and up grade its self applied with the modern standards and technology. Toyota should welcome any key idea by the any employee.

Self recognition, self esteem and honors are also very very important to the employees so, Toyota should more emphasis on these non financial motivators and retains its employees as most satisfied and happy.

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