HRM Performance of Toyota Motor

Discuss about the Investigation of Strategic Human Resource Management.

The strategic human resource management (SHRM) can be considered as one of the critical dimensions of influencing the organisational performance. An SHRM plan emphasises on aligning the organisational objectives with the individual performance of the employees (author). Eventually, adherence to broader organisational goals and responsiveness to the external environment can be maintained. However, author contradicted the fact and stated that to meet short-term business goal and greater return on investment (ROI), the majority of the firms fail to manage the strategic HRM activities within the workforce. Thus, meeting long-term business sustainability becomes a complex task as well.

Considering the SHRM process as pivotal for the organisational success, the current study aims to examine the HRM-performance in followed by Toyota Motors. A few challenges faced by Toyota have been identified in the previous part of the assignment. Based on the outcome, a range of strategic recommendations would be discussed in the current assignment. Also, a reflection of the researcher regarding the lesson, acquired from the transfer would also be considered in the later part of the study.

The current HRM performance of Toyota Motor can be evaluated considering the framework of the High-Performance Work System (HPWS). An HPWS prioritises firstly on the employee selection process, as effective employee selection helps to meet the long-term organisational goals in a flexible way. The current HRM performance regarding the selection parameter generates issue as Toyota Motor Corporation fails to hire more sophisticated and potential employees within the workforce. On the other hand, the author stated that HPWS employs hiring young talents along with the experienced personnel to maintain diversified job environments. Paauwe (2009) also reported that the current HR staff lack from offering a possible job definition to the employees, thus, failing to retain skilled employees as well. Therefore, it can be stated that there exist integration between the human capital and the organisational commitment. Thus, Toyota is failing to retain efficient employees.

An in-depth analysis also indicates that the HR directors have incorporated a complex communication protocol within the workforce. Thus, the lack of adequate leadership approach and potential communication process can be considered major HR issues of the firm. Supporting to this fact, Shen (2015) stated that although Toyota has employed a centralised system, the headquarter management fails to communicate with the local or regional offices potentially.

Among all these issues, employee engagement, communication and hiring process get higher priority that needs to be resolved by the management as early as possible. The lack of communication within the management and employees fails to identify the primary need of the employees meeting higher organisational goals (Subramony, 2009).

Strategic Recommendations

Also, comparing the current HRM practices of Toyota Motor Corporations with the HPWS, it can be inferred that Toyota is imposing greater expectation towards the employees. At the same time, the brand lacks maintaining a comprehensive plan related to the training, development, appraising and rewarding employees. Thus, Toyota’s organisational commitment needs to be revised to improve the impact of SHRM on the overall corporate performance. Focusing more on the human capital improvement would help Toyota Motors to enhance the overall organizational performance. Therefore, developing the strategic synergy has become crucial for the contemporary organisations.

A strategic fit between the varied human resource functions in different corporate level could improve the overall synergy of the HRM functions. Thus, the recruitment process could become more flexible, and the conventional HRM practices could experience a strategic shift as well as the brand competitiveness. Supporting to this fact, Misiak (2010) stated that strategic fit helps the brand to diversify the way of managing and leading people with a cross-cultural work environment. This situation can be achieved by making each HRM practices coherent and complement to each other. The employment of strategic fit could help Toyota Motor Corporations to make a correlation within the regular HRM practices and other associated systems within the firm.In addition, implementing a high commitment management system within the existing HRM practices has also become a crucial factor for the leaders.

As the majority of the issues is coming from the current HRM perspectives of Toyota Motor, a high commitment management (HCM) system can be employed by the HR director to increase the engagement between the employees and the management. In this regards, Demirbas and Yukhanaev (2011) stated that the HCM process is the contrast practices against the Tayloristic form of the organisations. The HCM system could increase employee satisfaction using the improved reward management system and training facilities across all hierarchical levels. Supporting to this fact, Ferreira and Almeida (2015) stated that HCM practices could deploy a two-way communication process, which could help Toyota employing diversified training and development models within the workforce. Thus, the concept of hiring only experienced candidates would be destroyed, and new recruits can also be able to deliver eye-catching performance within the workforce. In addition, introducing a diversified reward strategy within the HRM practices could bring better sustainability and competitiveness within the firm.

A diversified compensation strategy against expanded responsibilities can enable the employees to make full use of the efficacy and job abilities. In this context, Arshadi (2011) stated that a comprehensive reward management strategy could help Toyota developing a trust factor and motivation within the workforce. Thus, the existing employee retention index can be improved. Also, the comprehensive SHRM could also help Toyota in identifying the instrumental consideration and the ideological concerns as well (Dragoni, 2016). Therefore, a simple compulsion approach could help Toyota’s management, reducing the influence of trade unions towards the existing workforce. On the other hand, Alonso and Garcia-Muina (2014) stated that Toyota employs an equitable reward management system as indicated by Adams. However, the diversified employee base has become more enthusiastic to take new challenges and the incentive scheme as well. Hence, a diversified reward strategy can be employed using a simple compulsion approach. Thus, the individual goal and organisational performances can be achieved.

High-Commitment Management (HCM) System

The management of the Toyota Motors would require adopting some policies to ensure that all of the employees of the firm would be treated in a fair way. In the opinion of Diamandis (2015), it is required for the aToyota’s management to discontinue the employee discrimination from the workplace. Adding to this, the human resource management of the firm would need to follow compulsory rules and regulations to uphold a fair employee culture within the workplace. According to the opinion of Jaqua (2013), the organisation would need to employ a legal entity to resolve the workplace issues in an appropriate way.

Toyota Motors would need to concern about the employee’s health and safety to increase employee satisfaction. Considering the view of Dragoni (2016), the physical and mental well-being of the employees would also be helpful to improve the organisational productivity. The loyalty index of the employees would be increased if the management of the firm could provide a better quality of life to the employees (Shen, 2015). Furthermore, health and safety policy of the firm would be more effective as the families of the employees would receive similar treatment from the company. Hence, this valuable strategy would be advantageous to improve the employee lifestyle and preserve an effective employee contribution to the organisation.

Furthermore, adopting a performance appraisal process using a Balanced Scorecard (BSC) approach is also essential to manage the organisational reward system policy. The Balance Scorecard is a performance management tool, which would help to measure the financial actions of the firm. In this, industrial age, the company would get the facilities of the investment, employee relationship services and the other long-term capabilities to preserve the success. As per the opinion of Diamandis (2015), the balanced scorecard would be helpful to determine the employee remuneration as per the performance. Hence, this would be helpful to create future value for the organisational process and the employee performance.

The study has helped me to understand the fundamental practices of the strategic human resource management. I got the practical understanding of SHRM and the employee performance on the automobile firm, Toyota Motors. After evaluating the study, I perceived the integrated human resource practices of the firm which is focused on the teamwork, recruitment and an effective employee reward system. Adding to this, employee empowerment and an attractive appraisal system are also highly beneficial to improve the SHRM strategies. The implementation of high commitment management system in Toyota Motors helps me to understand the way to increase employee satisfaction throughout all the hierarchical levels.

The preliminary analysis of the study indicates that the strategic human resource management (SHRM) strategies of Toyota Motors. The study has also identified the HRM-performance chain of the chosen firm. The framework of the High-Performance Work System (HPWS) of the firm indicates that communication is the foremost priority to improve employee loyalty index as well as the organisational productivity. Furthermore, the recommendation such as reward strategy, health and safety programs and the employee relationship strategy has been provided to improve the organisational performance. Therefore, the policies of the strategic human resource management are essential for an organisation to improve the overall organisational performance.

References:

Alonso, A. and Garcia-Muina, F.E. (2014) ‘Talent management: Working lines and key processes’, Intangible Capital, 10(5), pp. 20–25.

Arshadi, N. (2011) ‘The relationships of perceived organizational support (POS) with organizational commitment, in-role performance, and turnover intention: Mediating role of felt obligation’, Procedia – Social and Behavioral Sciences, 30, pp. 1103–1108

Demirbas, D. and Yukhanaev, A. (2011) ‘Independence of board of directors, employee relation and harmonisation of corporate governance’, Employee Relations, 33(4), pp. 444–471

Diamandis, E.P. (2015) ‘Support staff: Build reward system for ace technicians’, Nature, 519(7544), pp. 414–414.

Dragoni, D. (2016) ‘Reward ideas and strategies’, International Journal of Complementary & Alternative Medicine, 3(5), pp. 21–25

Ferreira, L. and Almeida, C. (2015) ‘Employee turnover and organizational performance: A study of the Brazilian retail sector’, Brazilian Business Review, 12(4), pp. 27–56

Jaqua, S. (2013) ‘Case study: Rebuilding a radiation safety program’, Journal of Chemical Health and Safety, 20(3), p. 43.

Misiak, S. (2010) ‘Ethical system for employee performance appraisal in practice’, Economics & Sociology, 3(2), pp. 101–113

Paauwe, J. (2009) ‘HRM and performance: Achievements, methodological issues and prospects’, Journal of Management Studies, 46(1), pp. 129–142

Shen, J. (2015) ‘Principles and applications of multilevel modeling in human resource management research’, Human Resource Management, 1, pp. 230–245

Subramony, M. (2009) ‘A meta-analytic investigation of the relationship between HRM bundles and firm performance’, Human Resource Management, 48(5), pp. 745–768

Toyota Motor Corporation Global Website (2009) Available at: https://www.toyota-global.com/ (Accessed: 14 September 2016).