The Toyota Motor Company employees an initiative known as The Toyota Way which focusses on the values and beliefs that every staff ought to abide by so as to undertake the Guiding Principles at the Company. It is until the inception of the initiative that the management, values and business practices were imparted to employees as implicit knowledge. However, the fast rise of development, diversification and globalization of Toyota has brought about the rise in manufacturing and marketing globally (Meier, and Liker, 2005). The company is now focusing on operating as a truly global organization which is based on a common culture and has noted and described the managerial values and business tendencies that align to Toyota Way.

1.1. Employee Contract Negotiations

Toyota Motor Company prior to 2004 issued its employees contracts that were on a short term basis. The contracts were for a one year period. However, with the rise in company operations and growth the company was going through, it changed the contract length to three years. This would see the employees get better training, wages and values in line with the company’s goals and visions (Sarah, et al, 2013). Most of the employees look for employment that is stable and accords them satisfaction at the personal and corporate level. In a study undertaken in 2004, most of the employees were keen on getting specialized skills and knowledge (Graham et al, 2005). Toyota on the other hand is focused on enhancing the working conditions for its employees. This is bent on to safeguard human resources that will work as a strategic force as well as enhance employment outlook for temporary employees when their contracts end.

1.2. Employee Performance in Toyota

Toyota Motor Company’s philosophy for the employees is based on the Japanese saying ‘making things is about making people’. This shows the direction the company takes the human resource and the significance it accords on developing its employees.

Toyota is a global company popular for the Toyota Production System (TPS), which is the model for high performance organization model. The company forms the grounds for most high performing business operations like Lean Manufacturing and Continuous Improvement. These are part of the TPS model.

This model entails a rigid culture of developing its employees in meeting their complete abilities and make them abide to the model. Through this, the employees are in a good position to control the TPS in the company (Meier, and Liker, 2005). Most of the attributes of the TPS model cannot be forced on the employees. A good example is Kaizen which is a continuous improvement process and the 5S practices which is an operation for enhanced housekeeping in the company. Taking a company that aims to make its staff to abide by these practices with the help of policies, the final results will not be as effective as it supposed to be. They may ultimately meet the long term objective of the company.

In most of its stores all over the world, Toyota Motor Company applies all the chances accessible to it to advance its employees to meet this objective. In addition to formal training that the employees go through when they get into the company, daily activities in shop floor and the PDCAs (Plan, Do, Check, Act) model make it possible for the employees to improve.

Another main aspect in the Toyota is that is looks to all of its managers to be trainers. The long term objective for the company enabling it to advance its human abilities is noted in Toyota’s principles. The Toyota Way is noted as the guide to TPS to the all stores owned by Toyota Motor Company (Graham et al, 2005). The staff are able to learn and advance their skills as needed by TPS. They are the controllers of the TPS and to the next group of the employees.

1.3. Toyota Motor Company EEO requirements and Diversity

Toyota Motor Company has a number of production plants that acts as a major part of conscientious manufacturing, applies production while being keen on quality to safeguard the issuance of erroneous car parts, cost decline to the products and safety to the employees. The plants are similarly changed with the varying market conditions like change in population age a maturity of the market globally in the industry.

Not long ago, Toyota Motor Company issued backing for its main plant set up in another country (Meier, and Liker, 2005). This is in response to globalization, cost decline for the Break Through Toyota (BT2) initiative; consolidate the production process for effective process and aligning the tools and operations so as to compete with other nations in affordable costs.

With the inception of Equal Employment Law in place in 1985 and relaxing of rules in the employment of women, Toyota Motor Company came up with the Toyota Skill Development System. This enable the company to meet diversity demands by employing women. To meet this increase in demand, the company increased shifts.

The company does not discriminate on color, race, and gender. Every person is accorded equal opportunity for employments. The plants introduced is sensitive to the location and gives first priority to the locals and others get the remaining share (Sarah, et al, 2013). Like a plant located in Africa will give Africans first priority or major percentage and accords the rest to the other foreign people. This is with an aim to balance the company in terms of diversity. This is in line with the Equal Employment Opportunity requirement.

1.4. Toyota Motor Company Conflict management

The Toyota Motor Company has been part of several conflict-based issues. The company has employed several ways to resolve be it with its employees, customers or partners. The approach used aims to safeguard the image of the company while still maintain effective service delivery.

Some of the issues in the past that have plagued the company are like the quality of the products. The products did not meet the expected standard that the company stands. This led to Japanese to face intense pressure from competitors. This are a good example of external conflicts. Similarly, there are internal conflicts between the employees (Meier, and Liker, 2005). The company has been plagued by employees and leaders who are keener in acquiring profits rather than attaining quality. This has led to friction to arise between the staff and the top leaders. The employees are noted to be focused on acquiring production levels and less consideration for quality.

With such and many other conflicts, Toyota Motor Company has applied several methods to try and resolve them. In the start of the company, it did not have a fast reaction to issues making its capital capitalization to decline to $21 billion. This was due to the worry among the clients of the number of cars that were called back.

Toyota Motor Company at the time used traditional methods in looking for the start of the problems the company was facing. The company applies an extensive process to resolve any conflicts that arise.

The company first of all asses the incident and makes reports of the same. Clear report will lead the company to acknowledge the problem and offers an assurance of what it is doing to resolve the case (Meier, and Liker, 2005). The response is then formulated strategically with the relevant departments. Lastly, it is implemented in line with the standards of the company and the global policies.

2. Task Two

2.1. Culture

a. Overall Employee Relations Strategy

The present companies are getting complicated day by day in the global stage. This may be attributed to companies doing business with foreign nations. It is through this that Toyota and many other companies are affected by a culturally diverse community. Studies show that efficient management of the manager and employee relationship has a great impact on the results of a company. This may be through elements like turnover, commitment and performance. The global and national culture on which the culture of the company is based can model the expectations of the employee (Graham et al, 2005). A good example is studies done on Toyota show that staff’s perceived duties of the manager varied by culture and that they valued career growth and task completion on time as being vital.

b. Organizational Recruitment

The culture in a company affects the general behaviour in recruitment. In the process of recruitment, the recruiters focus on how the candidates fit in the culture of the company. This will enable them to undertake their duties effectively. The new recruits have to fit in the work schedule, if they do not fit, then they lack in motivation. Additionally, the cohesion that is setup may lead to quality results for the company (Bartol, et al, 2010). This calls for an effective recruitment process for quality results to be acquired.

c. Employee Job Satisfaction and Rewarding Job Performance

Companies undertake their recruitment process for competent staff. They moment they get into the company, they are supposed to apply their ability for the benefit of the company and themselves too. There are however cases where employees are not satisfied due to the culture employed in a company. Employees that are taken in in a different culture are common for this.

2.2. Legal Compliance and Obligations to Employees

a. Overall Employee Relations Strategy

The overall employee relations strategy affects the legal compliance and obligations to employees. Companies noted to have close relations between the employee and the employer are known to disregard the legal and obligatory aspects to the employees (Graham et al, 2005). Family businesses are common for this. Additionally, government and labour unions are known to face a common conflict with most companies. Such companies are disregard legal aspects about employees.

b. Organizational Recruitment

The process that most companies used, same to Toyota Motor Company, bases their recruitment on the legal compliance and obligations to the staff. According to EEO requirements, diversity is necessary in any company (Sarah, et al, 2013). Additionally, in meeting the obligations of the employees, companies like Toyota Motor are called to recruit staff based on their ability to meet their satisfaction and how many the company can accommodate.

c. Employee Job Satisfaction and Rewarding Job Performance

The legal aspects in a country are meant to ensure that a company is able to satisfy the needs of its staff. Additionally, companies are known to have policies that and obligatory duties that are keen on rewarding its employees. Companies like Wal-Mart have rewarding measures for employees to ensure maximum results are acquired.

2.3. Risk Management/Performance Management

a. Overall Employee Relations Strategy

A company’s objective to be effective in the market is based on the effectiveness of its staff. Hence, companies come up with ways that would bring close connections between the managers and staff. This creates a network that works for the success of the company (Graham et al, 2005). Employee relations strategy has to be an all-inclusive one for effective outcome. This will save the company time and cost.

b. Organizational Recruitment

The recruitment process in the company is based with regard meet a lack in performance in a certain area. The staff acquired ought to meet the requirements of the vacancy. Their skills and experiences as well as commitment is called into play. The recruitment process is there an extensive one for the company.

c. Employee Job Satisfaction and Rewarding Job Performance

The overall performance of the company and the satisfaction of the employee are connected. Toyota Motor Company, and many other companies, have diverse ways to acquire staff satisfaction for effective results to be met. This can be through financial rewards of day offs. Employees that are not accorded any form of satisfaction result to poor output.

2.4. Conflict

a. Overall Employee Relations Strategy

Various companies have varied ways they handle conflicts. Most conflict resolution methods effectiveness arise from the relations established between the top hierarchy and the staff as well as between the staff themselves (Geraint, 2009). Companies like Toyota and Wal-Mart among others establish close ties between the employee and leaders so as to manage internal and external conflict. Strategies between the staff has to an all-inclusive so as to save image of the company. Otherwise the market of the company may face a decline leading to loss.

b. Organizational Recruitment

The recruitment process greatly affects the manner a company is able to solve issues amicably. The qualities companies look for are operation based while disregard is given to psychological experts or counsellors as an added advantage (Bartol, et al, 2010). Recruits with such skills as an added advantage can save the company millions of dollars. These staff could be in a good position resolve conflict situations once they come up.

c. Employee Job Satisfaction and Rewarding Job Performance

Conflicts in companies are known to rise due to dissatisfaction of the employees with regard how the company handles their issues. Issues like wage delay, living conditions among others are known to affect the performance of employees (Geraint, 2009). Additionally, lack of a rewarding system lowers the motivation of employees drastically. Companies are hence, called upon to focus on the welfares of their staff for satisfactory output.

2.5. Managing Diversity

a. Overall Employee Relations Strategy

A company which is diverse in terms of gender, race and colour as well as religion can be a benefit and disadvantage. A diverse society offers the company the necessary skills and composition to its customer of an image that is all-inclusive. The company’s relation will enable them to help each other out in areas they find difficulty. Similarly, in developing the company in new regions offers a starting point for it in terms of community association.

b. Organizational Recruitment

The recruitment process of any company has to meet the diversity threshold. All vacancies are set to sensitive to the gender, local community and religion. This calls for intense recruitment to be done to meet this. The process calls for patience as one has to look over one area of the recruitment (looks for women where men are the common applicants). Diversity may at times not be met leading friction with the global bodies like EEO.

c. Employee Job Satisfaction and Rewarding Job Performance

Companies that operate with a diverse staff may find it hard to meet job satisfaction for some of its staff. There are certain religions that have strict rules on working, hence, companies that accord their employee’s celebrations in clubs infringe on the culture (Geraint, 2009). Hence certain job satisfaction and reward mechanisms may not work for some while in others may lead to family conflict. Companies are hence required to be sensitive on the rewards that it offers to its employees.

3. Conclusions

Employee relation in companies are a sensitive area for a company. This is since employee relations go on to affect the performance of the company. This is hence, taken seriously from the recruitment process, performance process, staff policies, and welfare and rewarding. The paper has focused on varied factors affecting the staff and specifically it has focused on Toyota Motor Company.

References

Bartol, Tein, Mathews, Sharma and Scott-Ladd (2010). Management: A Pacific Rim Focus, 6 ed. New York: McGraw-Hill

Geraint Harvey (2009). Employment relations in liberal market economy airlines. Employee Relations, 31, 2, p. 168

Graham Dietz, John Cullen, Alan Coad (2005). Can there be non-union forms of workplace partnership? Employee Relations, 27(3), 289.

Meier, D. and Liker, J. (2005). The Toyota way field book: a practical guide for implementing Toyota’s 4Ps. New York: McGraw-Hill

Sarah Jenkins, Rick Delbridge (2013). Context matters: examining ‘soft’ and ‘hard’ approaches to employee engagement in two workplaces. The International Journal of Human Resource Management, 24(14), 2670.

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