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Toyota way Ihrm
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International Human Resource Management
Group 4
Nguyen Thu HangVu Le Hoang
To Duc Anh
Toyota Motor Corporation
2
I. Toyota Motor Corp1. Introduction2. Globalization
II. National and Corporate Culture1. Japanese Culture2. Toyota Culture
III. Toyota Business1. Business Strategies2. Strategic IHRM
Table of Content
3
I. Toyota Motor Corp1. Introduction
Toyota was born in a rural area near Nagoya, Japan in 1867 by Sakichi Toyoda
The first product made by the effort of Sakichi and his son was an automatic loom in 1924
In 1929, with the notion that the auto industry is growing he sold his patent to Platt Brothers company take the fund to invest in the manufacturing and automotive manufacturing
August 28,1937, Toyota Motor Corporation officially launched 3
4
Reasons for Toyota’s decision to become globalized ?1. Expand the market to the world
2. Take great advantages of locations, technologies and cheap labor forces from other countries
3. Create the high competitiveness and opportunities in domestic market
4. Building a learning culture for continuous improvement
I. Toyota Motor Corp2. Globalization
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1. Recruitment employees bases on typical style of Japanese: intelligent, hardworking, team player, careful but conservative, stubborn.
2. Equally divided workload for both employees and machines (heijuka)
3. Standardized tasks are the foundation for continuous improvement and encouraging staffs
4. Only use reliable technologies which are thoroughly tested to meet the staffs and processes
5. Training leaders to become who are able to understand the life and philosophy of staffs
Impacts on IHRM of Toyota’s employees ?
I. Toyota Motor Corp2. Globalization
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II. National & Corporate Culture
Japanese culture Toyota culture
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Hofstede
Theory
Power distance
Uncertainly
avoidance
Individual-
Collectivism
Masculinity-
Femininity
Time Orientat
ion
II. National & Corporate Culture1. Japanese Culture
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Power
Dista
nce
Indi
vidu
alism
Mas
culin
ity
Uncer
tain
ty A
void
ance
Tim
e Orie
ntat
ion
54 46
95 92 80
Hofstede's Japanese cultural dimensions
II. National & Corporate Culture1. Japanese Culture
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Power distance -> Japan is a mildly hierarchical society
Individualism-Collectivism -> Collectivism
Masculinity-Femininity -> Masculinity
Uncertainty avoidance ->one of the most uncertainty avoiding countries
Long term orientation -> long term oriented societies
II. National & Corporate Culture1. Japanese Culture
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Toyota Way
Continuous Improvement
Challenge
Kaizen
Genchi Genbutsu
Respect For People
Respect
Teamwork
The Toyota Way is supported by two main pillars:
1. Continuous Improvement2. Respect For People
II. National & Corporate Culture2. Toyota Culture
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Continuous Improvement1. Challenge - forming a long term vision, meeting challenges with
courage and creativity to realize dreams;2. Kaizen - improving business operations continuously, always driving
for innovation and evolution3. Genchi Genbutsu - going to the source to find the facts to make
correct decisions, build consensus and achieve goals.
Respect For People1. Respect - respecting others, make every effort to understand each
other, take responsibility and do best to build mutual trust2. Teamwork - stimulating personal and professional growth, share the
opportunities of development and maximize individual and team performance.
II. National & Corporate Culture2. Toyota Culture
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Geocentric approach Regiocentric approach
Standardization More adapted approach to be more close to consumers expectation
“Think globally, act locally”
What type of business strategy has Toyota pursued in its international business?
III. Toyota Business1. Business Strategies
“In-house grooming”The main field of the recruitment: engineering, HR,
marketing and IT
Recruitment method
Advertisements
Internet recruiting
Executive search firms
Public employment agency
2. Strategic IHRMThe Toyota way of recruitment
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Screening processBackground checkCandidate test
Aptitude test Achievement test
InterviewsReaching the selecting decision
The Toyota human resources policies will not allow to select any candidate who does not match with the Toyota culture and identify the enterprise value.
2. Strategic IHRMThe Toyota way of Selection
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PCNs from Toyota HCNs and TCNs• Firstly, the internal selection can also guarantee the deep understanding of Toyota spirits.• Secondly, the position promotion will be a convention for the expatriate when he comes back .• Thirdly, Toyota encourages the expatriate together with his family members and supply the financial support.
• Communicative: HCN and TCN shall have the strong intention to express and exchange own ideas with the Japanese colleague, learning the enterprise spirits of Toyota actively.
2. Strategic IHRMUsing PCNs and HCNs
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TRAINING DEVELOPMENT
• Employees are involved directly in running the Toyota Production System.• Responsibility for the quality of their own role in the production process.• Passing on only good work on the line which they see as their “customer”
• Structured development path with clearly identified courses to develop employees’ skills and provide a path way to the next level within the company.
2. Strategic IHRMTraining and Development
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Planning process Regular discussion
of objectives Appraisal stage
Maintain and enhance the
productivity of employees
2. Strategic IHRMPerformance management
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