Managers and HR professionals have the important job of organising people so that they can effectively perform organisational activities. The goal of HRM is to maximise the productivity of an organisation by maximising the effectiveness of its employees while simultaneously improving their work life and treating them as valuable resources. In relation to this, use the case study below and answer the following four questions.
Case Study: Toyota
Toyota has long been praised for its efficiency and effectiveness, but there were some problems in the early 21st century that caused the company to re-examine its organizational structure.
The company’s headquarters in Japan made all the major decisions. Individual business units did not communicate with each other, and all communications had to go through the headquarters.
In which the most senior executives make all of the decisions for the entire organisation. It is typified by little delegation of authority, and all information flows one way: from the top down. For example, executives in U.S. plants are closely monitored by a Japanese counterpart who makes sure the American executive is following structured protocols.
Historically, Toyota and its brand were synonymous with quality. In fact, in 1989 when there were problems with Toyota’s Lexus lines, the cars were recalled and fixed efficiently, showing the ‘customer first’ policy in action.
Beginning in the 1990s the organization grew faster than expected – in fact, there was a 6% growth in 2009 alone. This fast growth and the need to produce more and more resulted in some problems with production. In 2009, brakes on certain models were found to have issues. While the problem was known by the upper level executives of Toyota, they did nothing about it until the U.S. transportation secretary confronted them.
- What structure would be suitable for Toyota and why? For example: a flat or tall structure?
- How do the following listed factors influence employee motivation? Relate your answer to Toyota.
Span of control
Decision making
- Which ONE of the below mentioned three management styles does Toyota have and how does it influence management activities?
Autocratic
Laissez Faire
Democratic
- Explain the role of HRM in the below two functions and relate to Toyota
Performance Management
Reward Management
