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Toyota Motor Corporation – OHR Essay

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Introduction
1.0 Background

Toyota Motor Corporation was birth when Mr. Kiichiro Toyoda, the founder, finally succeeded in creating the A1 prototype passenger car in 1935. He was a Japanese entrepreneur and the son of Mr. Sakichi Toyoda, who is the founder of Toyoda Loom Works. Kiichiro Toyoda has made the decision for Toyoda Loom Works to branch into automobiles. Shortly before Sakichi Toyoda died, he encouraged his son to follow his dream and pursue automobiles manufacturing. However, Kiichiro Toyoda resigned from the company in 1950 and passing away two years later. In 1957, his cousin and confidant Mr. Eiji Toyoda, became head of Toyota Motor Corporation. They successful expansion worldwide and launch the Japan most luxury vehicle brand, Lexus. Toyota Company is one of the world’s best-known and most successful businesses, building cars and trucks in 26 countries for sale in more than 170 markets around the globe. It’s been 76 years anniversary. Nowadays, Toyota is one of the largest multinational corporations that specialized on the manufacturing of cars and the headquarters is located in Japan.

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Being a multinational competition and one of the largest employers in the world, Toyota has try practicing best and innovative human resources management. Toyota has managed to gain the leading position in the world market due to the successful strategy of the market expansion and the implementation of the effective management style. Main business activities of Toyota are motor vehicle production and sales. Toyota is a well-known car manufacturer and, naturally, the company attempts to spread its products worldwide. This is why Toyota sales its cars in many countries of the world and is a well-known brand, while its cars are popular in different parts of the world. Nowadays, Toyota has its plants manufacturing and assembling cars not only in countries, which are traditional target markets for its products, such as the US, Australia, South-Eastern Asia, the EU, but it also actively enters markets of other countries of the world, including China, Argentina, Mexico, and others. The international market expansion of Toyota was possible due to the process of globalization. Toyota is really a global company which has its plants in many countries of the world, while there are even more countries where its production is sold by official dealers. So, it is possible to conclude that Toyota is a very successful multinational corporation that is affected by the process of globalization.

This is why Toyota sales its cars in many countries of the world and is a well-known brand, while its cars are popular in different parts of the world. Nowadays, Toyota has its plants manufacturing and assembling cars not only in countries, which are traditional target markets for its products, such as the US, Australia, South-Eastern Asia, the EU, but it also actively enters markets of other countries of the world, including China, Argentina, Mexico, and others. The international market expansion of Toyota was possible due to the process of globalization. Toyota is really a global company which has its plants in many countries of the world, while there are even more countries where its production is sold by official dealers. So, it is possible to conclude that Toyota is a very successful multinational corporation that is affected by the process of globalization.

Years of Experience

The Toyota success story is built on innovation, both in terms of its products and the processes by which they are made. In 1918, Sakichi Toyoda revolutionized the weaving industry with his invention of an automatic loom. The proceeds from the sale of his patent to a British firm (Platt Brothers of Oldham) provided his son Kichiro with the finances to make a start in the developing car industry. The pioneering work practices that Sakichi had developed for his loom business were easily adapted to the new automotive operation and in 1936 the first prototype car, the Toyoda AA, was completed. From 1937 to 2013, Toyota Motor Corporation has 76 years of experience.

Size of Organization
Toyota Motor Corporation (TMC) is one of the world’s leading auto manufacturers, offering a full range of models, established in August 28, 1937 by Kiichiro Toyoda. The company manufactures automobiles and motorcycles. The year 2007 marks the 50th year of Toyota’s international participation in motorsports. Their products are includes Toyota, Lexus, and Scion. Besides that, their industry are includes Automotive, Robotics, Financial services, and Biotechnology. Toyota Motor Corporation owned 12 plants and a number of manufacturing subsidiaries and affiliates in Japan. Toyota has 52 manufacturing companies in 26 countries and regions, which produce Lexus-and Toyota-brand vehicles and components. On the other hand, Toyota employs approximately 299,400 people worldwide, and markets vehicles in more than 170 countries.

2.1 Explanation of Selecting Employees & Orientation and Employee Training
Selecting Employees
Selection refers to the process of choosing individuals who have relevant qualifications to fill existing or projected job openings. Selection of employees is a very important topic in an organization because the talent of its employees may affect the success or failure of an organization. So, it is vital to select right person.

Before the selection process start, there are two main things that need to analyse which are person-job fit and person-organization fit. Person-job fit mostly refer to their personal skills, knowledge, abilities and other factors that need to perform the job. Person-organization fit mostly refer to the applicants whether they can suit themselves with the organization values and culture. The whole selection process is depending on these requirements.

Employment tests are one of the main areas for the selection process. Employment test generally use to measure a candidate’s abilities compared to others. Employment test are classified into two main categories which are aptitude tests and achievement tests. The aptitude test will measure a person’s capacity to learn or acquire skills. Then, the achievement test will measure on what a person has already learned.

Besides that, selection process can be known as completion of application, initial interview, employment testing, background investigation, preliminary selection, medical check, and finally hiring decision will be make. Applicants need to pass through some process such as interview, skill testing, and so on. Information provided by the applicants will be checked to prove the reliability and validity.

Orientation and Employee Training
Orientation is the process after the candidate had passed the selection section and categories as freshmen of the organization. Orientation usually covers the topics from the most basic things to most concern things. Besides, orientation used to introduce the job and the organization to the new employee before they start their work.

The purpose of orientation is to remove fears among new employee, creates a good impression, and act as a valuable source of information. Sometime, a new employee will feel unfamiliar with the organization. So, they may feel new and not so sure about what they supposed to do. Orientation can help a new employee to overcome those fears and conduct their job better.

Furthermore, orientation can leaves a good impression about the organization. Through the orientation, new employee can know their job function more clearly in the organization. At the same time, they may get to know how good the colleagues are. Orientation also able to tell the job requirements to the new employee, make them feel relax, and feel confident with their own abilities.

Training is the last process before new employee able to perform their job in the organization. It is also an educational preparation for performing a job that is typically provided to staff by the business that has recently hired them before they become active in service to the company. Employee training is increasingly required to assist the work force in using modern techniques, tools, strategies and materials in their jobs. Training usually performs by those who have well experience in this field.

If training is conducted within a company, it may help to addressing weaknesses among the employees, improved employee performance, work consistency, and employee satisfaction. It is very important within a company because it provides employees with the knowledge and skills that may help the employees to perform their job effectively. At the same time, the company may have a high potential to increase their performance and make their operations run smoothly.

2.2 How Toyota Company applies chosen topic in its operations.
Toyota Company has their own styles in hiring employees. They take a very planed and long-term approach to hiring new employees. Toyota predicts the growth and position of the company in the future by using a long-term growth model. They also use the information to determine the number of new employees needed to hire and for what positions. It is very important to Toyota since one of their goals is to never lay off employees, which ensures
mutual prosperity for both the employees and company.

Besides, to ensure that Toyota does not over hire employees, the hiring process is very carefully monitored and controlled by human resources. Toyota aims to hire employees for life, so it is very important to them that they hire the right employees with values which in alignment with Toyotas culture. By hiring the right employees, Toyota needs to pass through many processes which includes, selecting employees & orientation and employee training.

Selecting Employees
Toyota goes through every parts of selecting process very carefully since it determines the future talent pool of Toyota. Toyota has to face many competitors in the world market, so, to match with those competitors in an effective way, selection process is very important. Selecting the wrong employees may cause negative impact to the day-to-day operation.

The process usually will begin with the source of information about job applicants. All the information of the applicant will be checked during this stage which is known as screening process. Screening process is conducted at this stage to ensure that the right match is made between the work to be done and the person to do it. The most common thing for Toyota to gain the source of information is background checks. After this, reference check will be conducted at this stage. Toyota checks all the references regarding the previous employers of candidates. It is to verify some factual information such as dates and places of employment, applicant’s work history and so on. Reference check is an important tool to discover information regarding an employee’s past.

After checked all the information of the applicants, Toyota will conduct some tests for those applicant which known as candidate test. Applicants will be test in their aptitude and achievement because some jobs at Toyota are highly technical. So, these tests are very important at the selection stage. Aptitude test is to test the applicant’s capacity to learn or acquire skills. This is very important to Toyota because Toyota need a continuous improvement in their company. Toyota not only focuses on the continuous improvement for the production but also focus on the continuous improvement of its employees. So, Toyota hopes continuous learning and acquired skills of its employees. In addition, achievement test will be conducted. Achievement test determines what the applicant already knows. Toyota use achievement tests to pick out those applicants who already have a special skill or knowledge needed to perform a job. Toyota usually will perform the test to applicant in skill and knowledge that related to their job.

After this, interview process will be conducted. Job interview is a conversation which occurs between a potential employer and a job applicant. Toyota goes through many steps during interview process. The interview methods Toyota used are included structured interviews, behavioural description interviews, situational interviews, nondirective interviews, computer and virtual interviews and so on. The interview method is absolutely depended on the nature of the job. By go through interview process, Toyota can determine whether the applicant is suitable for the job or not. Different applicants will go through different interviews according to the nature to job.

After goes through all the process, the final step is selecting decision. Those applicants who not match with the Toyota culture seem likely will not be selected. Selecting decision is taken after many considerations. So, it will be a final decision whether the applicants will be hiring or not.

Orientation
After the selection process, candidates are oriented about the Toyota Company. The orientation process in Toyota Company is in charge by the Sales Manager. First, all the departments are shown to the new employees. The various topic in the orientation process are included the history of the Toyota Company, the abbreviations which are used in daily, production system, teamwork, and etc. The orientation is done in a classroom environment. Every topic is followed by a practical exercise on the office environment depending on the position of the new employees. This is done to demonstrate that the participants learned what they were supposed to learn. Every employees need to discuss about what they observed in the entire week.

Besides that, orientation at Toyota Company also covers traditional topics such as way to convert Toyota’s new employees to the firm’s ideology of quality, company benefits, development, open communication, and mutual respect. In the whole week, they oriented new employees step-by-step to let them have a better understanding about the company.

Their orientation begins with discussion of the firm’s organization structure following by the Toyota history and culture. It is because they must let the candidates to know about their company first. They also talk about the employee benefits which attract many people to join them. Some general orientation issues are devoted such as employee safety, environmental affairs, quality assurance, hazard communications and etc. The orientation also covers what work teams are responsible for and how to work together as a team.

Toyota mentioned most in their orientation includes its mission of quality, values of teamwork, continuous improvement, and problem solving. That is a big step toward winning new employees commitment to Toyota and its goals and values.

Employees Training

Toyota trains their employees step-by-step to make sure everyone understand while training. New employees will learn the basics in a classroom, but then the majority of the learning is from observing then doing. Employees will become more responsibility to their job until they are mastering all the skill by using this method. The training program may take around 4 to 5 weeks training which implemented by the human resources department. The employees will usually train in some different training such as classroom training, personal training opportunities, and on-the-job training.

Toyota train their employees heavily depends on the “spoken word”. Toyota makes the training that less focus to the books or operating manuals. They more focus on-the-job training. They let the new employees to have a sitting
down sessions and as well as visits to the manufacturing floor, warehouse, or office to observe actual processes in action. Toyota used training method similar like Apprenticeship program to train the new employees which teach them knowledge and skills required to perform a job.

Besides that, new employees do not need to worry if they are new to the job since there are always have senior mentor or advisor willing to teach them. Once their superior realized their mistake, they will immediately correct it to ensure that they doing the right thing. After training for the entire basics thing, every employees need to focus on-the-job training. On-the-job training is the most in depth and detailed because it fits with the Toyota culture of learning by doing. It let them know how to perform their specific job, but also on the proper use of tools, equipment, quality procedures, HR policies, preventive maintenance, ordering materials and reporting problems. By doing so, Toyota can make sure that every employees has learning what was the role of each team member to support these processes.

Before on-the-job development, employees have to go through basic fundamentals skills. After employees master the fundamental skills, then on-the-job training will starts. They will be taught using the cycle of plan, do, check, and action. Besides that, they required to perfect each step under direct supervision. Once all the learning process has been mastered by all employees, trainee is allowed to perform their work and the process is observed for a while to ensure they do it with procedure and correctly. The process of training goes on for around two years until the temporary employee is either hired or not. Toyota invests big amounts of money to developing their employees because they understand that the employee is the only appreciating asset that they have. So, it is worth investing in employees.

Findings and Recommendations
3.1 Toyota pros and cons in selecting employees ; orientation and employee training

Pros
Selecting Employees
Toyota Company selecting employees with quite strict rules since Toyota aims to hire employees for life. Toyota Company own a lot of talented employees by carefully choose them. Selecting the right employees may give an opportunity to assess potential employee’s personality. Through this process, company can ensure which applicants have the most suitable personalities and skills to perform the job. It is very important to have appropriate selection procedure because it may influence the recruited employee job performance. Hence, job satisfaction of employee may lead to a low employee turnover rate. In addition, with good selection procedures, company can save time in the recruitment and orientation processes because the applicant is expected to have been introduced to some aspects of the organizational culture.

Orientation
Everyone will understand about Toyota culture and gain basic knowledge that needed to know by all employees. Since orientation covered all things step-by-step, candidates can get all information clearly. Candidates will feel that nothing to be nervous even they are new because every job needs to perform by them has been pointed in their orientation. Candidates have a chance to meet and interact with role models who can serve as coaches and mentors during orientation process.

Employee Training
Toyota have invests big amount of money to train and develop their employee because they realize that talent employee is very important to help their organization achieve its long-term goal. Training enables the employee to further their education, develop skills, have better performance at work, and enhance their competencies in their job. Besides, employees will be able to increase their job knowledge and skills at each level. Employee training also helps to develop and improve their culture and effectiveness. It will be able to create the learning culture within the organization. In addition, employees will be able to develop leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.

Cons
Selecting Employees
Toyota has gone through many steps to selecting the right employees. Selecting the wrong individuals to the company will create many operational problems such as employees unable to perform up to the standards of the organization and it will directly make negative impact to the operation. Besides that, selection process needs to use up a lot of times and it is cost to the company. Company has to expend a lot money to select an employee.

Orientation
Time for orientation sometimes too short or some information only simply passes by. Candidates have no chance to know more since everything are scheduled by management. If candidates need to know more about the company, they need to discover information by themselves because there is limited information in the orientation process. Majority of information skipped to reduce costs and saving time.

Employee Training
Toyota has used some ways to train and develop their employee such as on-the-job training or in classroom training. Training sometime may bring to disadvantages. Toyota invests big amount of money to train their employees. Once training is conducted, company has to pay one of their employees for training instead of doing productive works. Sometime, company may find out one of their employee is very talented at their job and decide to send the employee to train their new employees. Unfortunately, being a trainer may require to have a special skill and not everyone has this ability. So, the trainer may be unable to train the new employees as well as what they expected. With this, new employees may end up picking up some bad habits along the way.

3.2 Possible Problems Encountered by Toyota Company

Selecting Employees
It is hard to decide who being chosen to join their company when too large amount of applicant. Besides that, unexpected amount of the applicant will take part in the interview session, but the applicant that actually met the job requirement or qualification is relatively less. So, this will cause the process time consuming and ineffective. Tester will sometime go through those process carelessly if too many applicants.

Orientation
The large group of new employees sometimes is really hard to handle by few people who in charge in the program. To confirm everyone who joins the orientation can understand all basic things, it needs a lot of man power. Lack of man power leads the candidates to the lack of knowledge. Besides that, it is impossible to let the candidates to absorb all basic knowledge in short period time.

Employee Training
Toyota owned a lot of employees who have enough experienced and expert in this field, but not all of them can become mentors or advisor to teach the candidates. Other than that, Toyota train their employees heavily depends on “spoken word”. So, it is hard for some candidates to do revision on what they have learned.

3.3 Recommendations to solve the possible problems encountered by Toyota

Selecting Employees
Toyota should be patient, relax, and think clearly before selecting the employee. They should look over the job description and criteria, think about the responsibilities of the job and what type of employees are needed. Besides, they must go through every resume and application, and choose the ideal candidate. Those employees that they think do not fit the job should be tossing aside.

Orientation
As a suggestion, Toyota should divide them into more small groups. It might be easier to handle if the number of candidates are less. Besides that, an
orientation period should be longer since Toyota is a large organization. It let candidate to have more time to understand and know about their new employer. Q;A section should be added into this program to test the candidates for their understanding about the Toyota Company.

Employee Training
Since Toyota owned a lot of employees who have enough experienced and expert in this field, Toyota should let them to become a mentors or advisor by training them a teaching skill. Because of this, candidates can have more choices to choose their favourite advisor. Other than that, notes should be provided to candidates for revision purpose.

Conclusion
In conclusion, this assignment is based on selecting employees, orientation, and employee training of Toyota Company. Selecting employees, orientation, and employee training is one of the most important areas in human resources management. This assignment discuss the background of the company, explanation of selecting employees, orientation, and employee training, pros and cons of the principles, problem encountered and the recommendation to solve the organization’s problem.

This report covers important areas such as importance of recruitment and selection, orientation and employees training, theoretical background, etc. In this report, we have known that Toyota are the multinational company and famous among people in whole world. Besides that, we also know that how the Toyota Company select and train their employees. Their methods were quite serious and high requirement needed for each applicant. It is because they need a lifetime worker for their company. However, some of the problems are facing by the Toyota Company. We have to provide some suggestions so that the encountered problem might be solved.

In the future, Toyota Company might be more successful depends on its wise decision of selecting, orienting, and training best suitable recruitment.