A short presentation on HRM

1. Employee Engagement in Toyota
Motor Corporation
By: Sinja Raut

2. Toyota Motor Corporation
• Automotive manufacturer headquartered in Japan
• Founded in 1937 by Kiichiro Toyoda
• Invincible progress maintained over the years
• As of 2015 first quarter financial report, the Japan
branch alone has net revenue of 109 billion USD
• One of the best run companies in the world
• Pioneered Toyota Production System & The Toyota
way

3. Philosophy
• To realize management that shows respect for
people and build stable labor-management
relations based on mutual trust and mutual
respect, as well as to have all employees
exercise their abilities to think, be creative,
and utilize their strengths to the maximum
extent possible

4. Employee engagement
•The emotional and functional commitment an
employee has to his/her organization
• Engagement or passion for work involves feeling
positive about your job as well as wanting to go an
extra mile to make sure you do your job to the best of
your ability – Truss et al
• According to US survey,
• 3 out of 10 employees are actively engaged
• 7 out of 10 employees are disengaged or actively
disengaged
• Disengaged employees are threats to Organization

5. The Core of an Engaged employee
Emotional
Commitment
(Feeling)
Behavioral
Commitment
(Doing)
Cognitive
Commitment
(Thinking)

6. Toyota story
• Half a century ago, Economic crisis pushed
Toyota near bankruptcy
• It got difficult to compete with western rivals
• To do best with what it had, Toyota asked its
employees to help rebuild the company and
submit new ideas that will
- Reduce waste, Improve Quality &
- Build leaner operation

7. • By making employees integral part of the
success, and valuing their input created a
strong sense of worth in the employees
• The employees transformed the small
struggling company into an icon of quality and
World’s most profitable auto manufacturer
• Hence, realizing the value of engaged
workforce, many companies have started to
value employees

8. Why engagement matters?
• Better performance of the organization
• Happy customers
• Positive word of mouth
• Increased loyalty
• Improved brand reputation
• Innovative solutions
• Disengaged employees cost a lot and can sink
the organization

9. Employee engagement drivers
•Personal relationship with
boss
•Employee development
•Co-workers and team
members
•Career and growth
Opportunities
•Line of sight
•Nature of job
•Trust and integrity
Feel
valued
and
involved
Engagement

10. Traits of engaged employees
• Enthusiasm
• Inspired
• Empowered
• Confident

11. What accounts to Toyota’s Success?
• Application of ‘Lean thinking’
-Encourage knowledge workers to become
independent goal seekers
-Apply problem-solving skills
-Critical thinking capabilities to serve
customers
• HumanSigma: Managing human differences at
work

12. • Work-Life balance
• Open communication
• Gallup’s process for measuring and managing
performances
• Culture of appreciation
• Encourage submission of new ideas from
every level of employees

14. Thank You