Toyota Motor Corporation is an automobile manufacturer company headquartered in Japan. Toyota has created automobiles since 1930's, employing over 317,000. Toyota has experienced several challenges in the past few years. If you have watched the news you have seen or heard about the mechanical issues that Toyota automobiles have faced leading to a massive recall on their cars. Their reputation was damaged due to poor handling of issues that the public witnessed, bringing a decline in sales.
The issues that Toyota faced on eight of their models were due to human resource professionals producing faulty accelerator pedals, computer problems and product design. Employees unsuccessfully failed to perform the job as well as management not giving the proper training. Ultimately, human error was the root cause of the problems that Toyota faced. Having a weak human resource department causes problems in any company, especially when you are making a product for consumers.
In Business Week projected that Toyota is losing an astonishing $155 million dollars per week from the recalls and over $30 billion in stocks. ( citation) The impact has cost the company billions. Management was aware of the mechanical issues, but hide the problem to keep Toyota's brand in tack. Also, the organization rewarded managers because they kept cost down than having product quality. This created big incentives for management to overlook the problems that existed. Employees failed to make the right decision concerning the issues and problem, taking abrupt action and examining the HR processes that influenced the decision of staff employees and management.
There are several process that need to considered such as training, performance, hiring and rewards. Toyota needs to handle their reward processes by encouraging the right attitude and behavior in their employee. There was a lapse in training among the employees. The purpose of training is to make sure that everyone has the right capabilities and skills to handle any problem they may encounter.
The Human Resource department need to make sure that all staff is trained properly and management understand the importance of safety and having quality automobiles than high error free numbers. Need to hire qualified and skilled individual that is capable of doing the job. Management need to ensure that the performance measuring system is being monitored for errors. HR need to make sure the culture of the company is adhered by all staff and that the core values that Toyota have is being implemented.
Toyota has faced many legal concerns in the organization over the past couple of years due to thousands of recalls on their vehicles. Faulty brakes and product failures was a big issue for Toyota. These concerns should have been addressed during the manufacturing process, but the employees and management did not adhere to issues soon enough before the problems became exculpated. The organization should have taken a closer look at the processes and their employees. The HR need to have a risk assessment team that calculates and identifies mistakes caused by employees that demonstrate weak processes.
The legal issues that Toyota has faced need to be addressed by senior management looking at their processes and fixing the problems that have surfaced. Making sure that all vehicles are fixed and reassuring that there will be no more problems and that safety is Toyota’s number one goal. Determine how the organization should address current (or anticipated) human resource issues concerning expanding into international markets. Make recommendations concerning how the organization can leverage its human resources to come out on top in a highly competitive environment.