Toyota is a large, multinational automaker headquartered in Japan. It has over 300,000 employees worldwide and manufactures a wide range of vehicles, including the Camry, Corolla, and Lexus brands. Toyota focuses on developing human resources through on-the-job training and passing down company values. It recruits employees through an online application and assessment process. Performance is appraised three times per year and compensation and benefits are structured to attract and retain top talent.

1. TOYOTA
HumanResources Management
Practices
By: Maged Madeh MOHAMMED

2. • TOYOTA Briefly
• History
• Mission and Vision
• BUSINESS OBJECTIVES OF TOYOTA
• Competition Strategy
• Human Resource Management in TOYOTA
• HR activities at TOYOTA
• Recruitment process
• Performance Appraisal
• Compensation Benefit
• Training and development of TOYOTA
Index

3. TOYOTA Briefly:
• Company name : TOYOTA
• Industry : Car Manfacture
• Headquarters : Tokoyo, Japan
• Company type : Multinational Company
• Key persons : Takeshi Uchiyamada, (chairman), Akio Toyoda(CEO)
• Products : Avalon, Camry, Corolla, Yaris, lexus , land cruiser,……..
• Employees : 338,875 (as of March 31, 2014)

4. Toyota History
• Brief History The establishment of the Toyota
• Sometimes we'd never ask - ask in our minds, how its history to Toyota automotive company can grow up big
and as famous as this ini. This isa brief review of the history of the Toyota.
• In April 1935, 75 years ago he laid the foundation of Toyota, namely Sakichi Toyoda with his son, Kiichiro
Toyoda automotive engine successfully completed the first prototype, named Type A.
• Type A machine which completed the process in April 1935, the cost of development is only obtained from
small households, which was pioneered by Sakichi Toyoda, a yarn spinner tool. Thanks to this dynasty,
Toyoda looms could realize his dream of making cars.
• A year later or rather April 1936, Kiichiro began mass-producing the first car, with the name A1. Not only
cars, in the same month also produced a mini truck with the nickname G1.
• Apparently response to the public from Toyoda product was beyond expectations. Both the first automotive
products get good response from the community. Armed with the positive progress that is, Kiichiro had
founded the Toyota Motor Corporation Ltd., on August 28, 1937.

5. • Kiichiro deliberately replacing the letter 'D' on Toyoda with 'T', because he wanted a name is easier said Toyota
pronunciation. With an easy pronunciation, then Kiichiro hope that Toyota will easily attached to the minds of
consumers.
• Kiichiro confidence now become a reality. Toyota became the world's largest automotive manufacturer with a
variety of products in various countries.
• It turned out to achieve the success it is today a long road winding nan that unpleasant also been adopted by the
founder of Toyota.
• To achieve success requires knowledge, enthusiasm, and ingenuity in seeing the opportunity, and also the most
important blessing of God Almighty
Toyota History

6. Mission and Vision
• Vision:
• “To be the most respected and successful enterprise, delight customers with a wide
range of products and solutions in the automobile industry with the best people and best
technology.”
• The most respected.
• The most successful.
• Delighting customers.
• Wide range of products.
• The best people.
• The best technology.
• Mission:
• Mission of Toyota is to provide safe & sound journey. Toyota is developing various new
technologies from the perspective of energy saving and diversifying energy sources.
Environment has been first and most important issue in priorities of Toyota and working
toward creating a prosperous society and clean world.

7. BUSINESS OBJECTIVES OF TOYOTA
1.The manufacture, sale, leasing and repair of motor vehicles, industrial vehicles, ships, aircraft, other
transportation machinery and apparatus, space machinery and apparatus, and parts thereof;
2. The manufacture, sale, leasing and repair of industrial machinery and apparatus and other general
machinery and apparatus, and parts thereof;
3. The manufacture, sale, leasing and repair of electrical machinery and apparatus, and parts thereof;
4. The manufacture, sale, leasing and repair of measuring machinery and apparatus, and medical machinery
and apparatus, and parts thereof;
5. The manufacture and sale of ceramics and products of synthetic resins, and materials thereof;
6. The manufacture, sale and repair of construction materials and equipment, furnishings and fixtures for
residential buildings;
7. The planning, designing, supervision, execution and undertaking of construction works, civil engineering
works, land development, urban development and regional development;
8. The sale, purchase, leasing, brokerage and management of real estate;
9. The service of information processing, information communications and information supply, and the
development, sale and leasing of software;

8. 10. The design and development of product sales systems that utilize networks such as the Internet; sales,
leasing, maintenance of computers included within such systems, and sales of products by utilizing such
systems;
11. The inland transportation, marine transportation, air transportation, stevedoring, warehousing and tourism
businesses;
12. The printing, publishing, advertising and publicity, general leasing, security and workers dispatch
businesses;
13. The credit card operations, purchase and sale of securities, investment consulting, investment trust
operation, and other financial services;
14. The operation and management of such facilities as parking lots, showrooms, educational facilities, medical
care facilities, sports facilities, marinas, airfields, food and drink stands and restaurants, lodging facilities, retail
stores and others;
15. The non-life insurance agency business and life insurance agency business;
16. The production and processing by using biotechnology of agricultural products including trees, and the sale
of such products;
17. The sale of goods related to each of the preceding items and mineral oil;
18. The conducting of engineering, consulting, invention and research relating to each of the preceding items
and the utilization of such invention and research; and
19. Any businesses incidental to or related to any of the preceding items.
BUSINESS OBJECTIVES OF TOYOTA

9. Competition Strategy
1. Cost Leadership
In cost leadership, a firm sets out to become the low cost producer in its industry.
The sources of cost advantage are varied and depend on the structure of the
industry. They may include the pursuit of economies of scale, proprietary
technology, preferential access to raw materials and other factors. A low cost
producer must find and exploit all sources of cost advantage. if a firm can achieve
and sustain overall cost leadership, then it will be an above average performer in its
industry, provided it can command prices at or near the industry average.
2. Differentiation
In a differentiation strategy a firm seeks to be unique in its industry along some
dimensions that are widely valued by buyers. It selects one or more attributes that
many buyers in an industry perceive as important, and uniquely positions itself to
meet those needs. It is rewarded for its uniqueness with a premium price.
3. Focus
The generic strategy of focus rests on the choice of a narrow competitive scope
within an industry. The focuser selects a segment or group of segments in the
industry and tailors its strategy to serving them to the exclusion of others.

10. Human Resource Management in TOYOTA
• "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 believes that the development of human resources requires the
handing down of values and perspectives. In conjunction with the
geographic expansion of business and the growth of business areas,
undertaking global actions for the development of human resources has
become a priority issue. Toyota is building both tangible (a new learning
facility) and intangible (course content) structures relating to team member
development that ensures a secure and steady flow of qualified human
resources to conduct Toyota's global business in the 21st century.

11. HR activities at TOYOTA
• Basic Concept of Human Resource Development
• We are working to develop human resources by implementing an
educational program based on OJT (on-the-job-training), which is
crucial for the development and generational transfer of excellent
monozukuri (manufacturing), with the five Toyota Way keywords as a
fundamental basis.

12. Recruitment Process:
1. Complete on-line application
2. On-line assessment (Aptitude Tests)
3. Assessment Centre at Toyota
4. Final Interview
5. Conditional Offer of Employment
6. Final Employment Checks
7. Unconditional Offer of Employment
8. Open Day for New Recruits at Toyota
9. Commence Employment

13. Performance Appraisal
• Toyota appraises its employees three times a year:
• once for promotion and wage increases and twice for bonus payments
where there is a detailed evaluation standard followed (Kono, 2001). To
improve employee performance, intensive training of management and
production personnel is enhanced. The company wants to develop
personnel capable of functioning in international business environments
which prompted the establishment of the Toyota Institute, spearheaded by
Toyota President, Fujio Cho (Kono, 2001). Moreover, the Global Knowledge
Center at the University of Toyota which is an educational facility of the
company in the US was established to promote the Toyota Way in sales and
marketing. In addition, there are like establishments such as the Toyota
Academy in Europe, Thailand and South Africa which aim to develop Toyota
employees (Cho, F 2004). With the new education facilities Toyota has
established, more and more employees are equipped with the skills they
need to cope with the demands of their jobs in the company.

14. Compensation Benefit:
• Toyota Motor Corporation has never faced an issue with their
employee compensation and benefits packages. Part of their
philosophy has been people are their greatest asset and they treat
them as such by paying them a good salary and empowering their
employees. How can they attract top talent? Well even the top
executives at Toyota do not make a seven figure salary. Wages are
determined with a fair market value in mind, but it is the “me” versus
“we” attitude that drives Toyota's success.

15. How Toyota motivates its workers
• i. Agreed to guarantee lifetime employment for employees
• ii. Developed a system of internal promotion
• 1. enabled workers to rise within the hierarchy
• a. casual workers could receive permanent contracts
• b. could go on to become team leaders, foremen and even managers.
• 2. worker can become a sort of minor manager
• iii. Provides a pay scale based on three components of company profitability
• 1. One bonus based on seniority - not job classification
• 2. Another bonus payment related to team’s performance
• 3. Additional bonus payment allocated to worker’s merit
• 4. Wage would increase from 85% to 115% from amount allocated
• In return, Toyota employees are constantly committed to making improvements rather than just
responding to problem
Compensation Benefit:

16. GM had:
• Excessive wage costs for its unionized workers.
• Pension crisis with salaried and unionized retirees.
• Uncompetitive factories with low-quality products.
Toyota had:
• Lower compensation costs due to young work force.
• A weak currency in Japan.
• A lucky break from high oil prices in those years.
As a result:
• Toyota won.
Compensation Benefit:

17. Our suggested structure topay employees
Common to all types of jobs
• Basic pay- depend on the class/grade where a employee is positioned.
• Should be based on:nature of work
• Physical work involved.
• Mental work involved.
• Knowledge & technical skills involved.
• Volume of Duties & responsibilities.
• Nature & no of Task/activities contained.
• Level of Skills to be exhibited in the work
• Burden on employee & complexity of job to do it.
• on par with other Similar org’s pay structure for same job.
• On par with cost of living/money value in that area/country.
• As per latest pay commissions/govt guidelines.
Compensation Benefit:

18. Add value to the organization by developing your
people and partners
• Grow leaders
• Develop exceptional people and teams
• Respect your extended network of partners and
suppliers by challenging them and helping them.
Training and development of TOYOTA

19. Higher education
• Toyota established the Toyota Technological Institute in 1981, as Sakichi
Toyoda
• It founded the Toyota Technological Institute at Chicago in 2003
• Supporter of-
- Toyota Youth for Understanding Summer Exchange Scholarship
Program
-Toyota Community Scholars
-contributed to a number of local education
Training and development of TOYOTA

20. Training and development of TOYOTA
• Training is essential to the on-going development of individuals and supporting improved
company performance.
• From day one, On- the-Job Development (OJD) supports individuals to learn their own
jobs to a level of expertise where they can support the development of others.
• All employees are multi-skilled and so broaden their knowledge and optimise production
flexibility.
• Also, employees are involved directly in running the Toyota Production System. They are
given the responsibility for the quality of their own role in the production process,
passing on only good work to the next stage on the line which they see as their
‘customer’.
• Each occupational classification within the company has a structured development path
with clearly identified courses to develop employees’ skills and provide a pathway to the
next level within the company.
• Courses offered are a combination of Toyota Way Development, Technical Development
and Management Development. The company offers financial support for employees
who wish to complete external education to support ‘life long learning’.

21. • To provide a 'learning culture' where individual members own and drive
their own development. Our Leaders actively engage in this continuous
process through 'on-the-job' coaching and mentoring.
We aim to provide clear career pathways with the appropriate balance of
Toyota, technical and personal skills development, enabling each Member
to maximise their capability.
In addition, we endeavour to provide the appropriate academic rigour at
each stage of their career, along with formal recognition of skills gained
and qualifications acquired.
Supporting the wider community is also important. Schools, businesses
and charitable causes benefit through the provision and sharing of skills by
our Members, enabling us to demonstrate our commitment of 'lifelong
learning' to our stakeholders.
Training and development of TOYOTA

22. By: Maged Madeh MOHAMMED