Toyota

Toyota's HRM practices in the UK

Abstract

This report examines Toyota's HRM practices in Japan and looks at how changes were made when setting up the European plant in the UK. Toyota were faced by the pressure to remain internationally consistent with their HRM practices, which include, employee commitment, employee integration with the organization, flexibility and adaptability and lastly quality. However there were local cultural forces which also needed to be taken into account.

Introduction

The HRM strategy in Japanese companies is supported by the six pillars of Japanese employment practice - lifetime employment, company welfare, quality consciousness, enterprise unions, consensus management and seniority-based reward systems. Toyota is at the heart of global manufacturing, a company that has grown over 70 years to become the world's third largest vehicle manufacturer. (Toyota worldwide 2006) Toyota is the seventh largest company in the world and the third largest manufacturer of automobiles, with production facilities in 26 nations around the world employing more than a quarter of a million people. The decision to manufacture in Europe was based on a corporate policy of building vehicles where the customers are and The United Kingdom was chosen for many reasons including its history of vehicle manufacture, the large domestic automobile market, its components supply base and its excellent links with the rest of Europe.

The vehicle manufacturing plant is located at Burnaston in Derbyshire, the engine manufacturing plant is located at Deeside in North Wales.(Toyota Manufacturing UK 2006 ) the company has, since production began in 1992, grown to its current size with 5,500 members are employed. As they meet the challenges of the 21st century, Toyota continues to be a world leader in developing new transport and production solutions while still respecting and protecting the global environment. Toyota is a global business.

UK business culture

Weiner J (2004) suggests that the business system in the UK has been influenced by cultural and social factors .This reflected deep-rooted class divisions in British society, and has led to hierarchies within the business system. Chandler (1994) has used the term "personal capitalism" to describe British business culture. This was shown by the Persistence of family ownership and control, Aversion to professional training and a preference towards immediate consumption rather than reinvestment of profits. Britain's business culture is also referred to as a proprietal system - failure to co-ordinate between strategic management and the shop floor. Stereotypical views about which jobs are suitable for men and which are suitable for women still influence young people's career choices. The motor industry has always been regarded as heavily male dominated and although there have been some changes in recent years, this is still the case. Of 566,000 people employed in the industry (almost 80%) are men and only 20% are women. Management and worker representatives in the United Kingdom are trained to negotiate, form agreements and stick to them. The shop steward is elected by the workforce, he represents the working people in their place of work, he talks for them to the management, he negotiates for them, it is he who is backed by the union in the work that he is doing. He exercises a restraining influence and it is pressure from the working people which pushes him into confrontation.

Toyotas philosophy

Toyota Motor Corporation contributes to harmonious and sustainable development of society and the earth, based on their principle guidelines. They comply with local, national and international laws and regulations as well as the culture and they believe that management interacting with its stakeholders is of the greatest importance. (Toyota sustainable development 2006)

Toyotas principle guidelines (Toyota vision & philosophy 2006)

1. Honour the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world.

2. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities.

3. Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities.

4. Create and develop advanced technologies and provide outstanding products and services that fulfil the needs of customers worldwide.

5. Foster a corporate culture that enhances individual creativity and teamwork value, while honouring mutual trust and respect between labour and management

6. Pursue growth in harmony with the global community through innovative management

7. Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits

These principles are the basis on which the Toyota Group functions. They serve as guidelines for the group's policies and activities, as well as for all management and staff .Respect for People is important to Toyota, Toyota presidents, chairmen and managers acknowledge that it is the hard work of all employees which has enabled the company to become what it is today. Toyota is constantly striving for continuous improvement (kaizen) and through this and continuous learning Toyota has managed to grow and achieve its goals. This basic philosophy, passed down from generation to generation.

They respect their employees and believe that the success the business comes from each individual's creativity and good teamwork. They stimulate personal growth for employees. They support equal employment opportunities, and do not discriminate against them. They provide fair working conditions with a safe and healthy working environment for all their employees. They respect and honour the human rights of people involved in the business and, in particular, do not use forced or child labour. Through communication with employees, they share Mutual Trust and Mutual Responsibility and work together. The Management of each company takes leadership in following corporate culture, and implementing policies, that promote ethical behaviour.