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Management Report Of Toyota Motor Corporation

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Question:

Discuss about the Management Report of Toyota Motor Corporation.
 
 

Answer:

Introduction

The Toyota Company remains one of the fastest growing multinationals with its outlets spread in most countries across the world. The unique management structure in addition to effective leadership styles serve as some of the main reasons behind the company’s organizational success.  Despite the fact the company deals with a relatively wide market base which may be characterized by hefty consumer demands and changing trends, the company has remained clinical in its execution of operational strategies. It is equally a fact worth noting that the Toyota Company comprises over 100 outlets spread in different locations depending on the various factors and the business environment. One of the leading plants is the Altona Manufacturing plant located in Australia. The others are situated in ripe market areas like Europe, Asia and the United States of America.  Good infrastructure, stable economic environments as well as comfortable business policies are some of the core determinants before the company sets up an outlet base. However, the business environment tends to change as one moves from one country to another (Dunning, 2003). This transition could be attributed to changes in consumer behavior, government policies, socio-economic factors as well as the level of economic growth. Consequently, the managerial approach implemented in one location may be inapplicable in a different country due to this dynamic nature. It is therefore appropriate for a manager who is changing his place of work, to have a substantial knowledge of some of the aspects which may impact his working life and hence managerial approaches (Bray and Waring, 2009). This report basically covers the human resource and the employment relations issues which may impact a new manager’s working strategies especially when the change involves switching countries.

Employment Relations Issues

The relationship between the employees and their employers is a sensitive aspect in business organizations which requires the necessary attention. As a manager, it would be important to have an in depth understanding of some of the crucial aspects which have a direct impact on the performance of employees (Campbell, 2002). It is even more important for a leader to note the management approaches which have a direct impact on the reception of the employees.  Some of these aspects include the rights of employees in terms of age and the minimum remuneration the employees may be entitled to. In line with employee relations, the report highlights some of the issues which may impact the managers working life.

 

Time

The minimum duration that an employee is supposed to be at their place of work tends to differ from one place to another. This largely depends on policies set aside by the government to regulate the treatment of employees. For instance in a 24-hour economy, an employee is likely to take longer periods at work compared to the case in a 12-hour economy. For instance in the United States, the set period for work may differ from the nature of operations in Australia. As a result, the manager may have challenges adjusting to these changes especially when it comes to delegation of duties as well as sharing of responsibilities (Collings and Wood, 2009). For a 24-hour work schedule, there may be an inevitable need to adjust the managerial commitment to adequately cover all the working hours. These strategies ought to be meted out with the necessary caution to ensure that the employees are neither underworked nor overworked

Wages brackets

The minimum wage as depicted by both the government regulations and the stipulations of the trade unions also tend to vary as one moves from country to another. As a manager, it is important to note the aspect which escalates the levels of motivation among the employees (Dabsheck, 2000). The remunerations given to the employees in return for their services ought to be vital in enhancing their desire to offer more to the company. When the wage levels are low, the employees are less likely to stay aggressive in giving their best to the company. Such work environments lead to low output by employs which culminates in various managerial challenges. The wage ranges in Australia tend to differ from the stipulated brackets in the United States. As a result, a manager moving from Australia to the US might face challenges especially when they try to remain rigid with the former wage levels (Daft and Armstrong, 2009).

Employment Age

The other crucial aspect when it comes to employment in organizations is the aspect of age. The legal stipulations placed to govern the process of employment by companies equally tend to take dynamic trends hence changing from one place to another (Glisson, 2008). For instance, the law allows organizations to employ individuals who have attained the age of 18 and above. It is interesting to note that this line varies from one country to another. While some countries state the employment age at a relatively lower level for instance, 16-years, in other places, an individual is not considered to have attained an employment age unless they are 20-years or over. The employment age in Australia is definitely different from the case in the US where in some industries; even individuals below the age of 18 are absorbed depending on the union policies (Gomez-Mejia and David, 2008). In line with this aspect, the manager is likely to face challenges when it comes to finding the right people for the job. The Toyota Company being an industrial multinational comprises various departments and channels which require the right expertise and experience in order achieve both managerial and organizational success. As such, certain employment regulations such as the aspects of age might minimize the manager’s options as they choose the right employees (John, 2001). The other challenge that might arise in line with the aspect of age is variations in managerial approaches required to deal with individuals of different age groups. The organization is likely to comprise both young and old employees each of which may have different work philosophies. Since it is the common that a new manager is likely to come with his own work philosophy into a new work environment, the reception of employees to these leadership approaches may act as an impediment to successful leadership.

 

Employment Requirements

With references to government policies regarding business operations in a country, the requirements set aside for employment also vary from one place to another. At the same time, the company’s policies play a crucial role in determining the minimum qualifications which an individual must have in order to qualify for employment at Toyota Company. It may be a challenge for the manager especially when it comes to harmonizing the government policies and the trade union polices with the company’s policies (Johnason, 2009). For instance in the United States, academic qualifications such as degrees and diplomas are considered important yet this may not be the case in other countries such as Australia. Failing to employ an individual based on their academic qualifications may result in legal challenges especially when the new manager is not in full knowledge of academic qualification related employment issues.

Changing Employee needs

The other employment relations issue which may affect the manager’s bid to implement his strategies at the new place of work is the dynamic nature of the employees’ needs. It is a fact worth noting that the work cultures, personal initiatives and individual commitments at the place of work tend to vary from individual to another (Kerensky, 2002). The situation equally changes from one country to another. This therefore implies that the employees in the US based company might present needs that may prove overwhelming to the manager in one way or the other. Such needs may include requests for pay rise, frequent time offs and perhaps resignations depending on the company situation (Klerck, 2009). Some of these aspects may be beyond the manager’s ability especially when several employees choose to resign from their posts at the same time due to dissatisfaction at the place of work. It would therefore be important to understand the various employee needs and respond to them as efficiently as possible in order to enhance their levels of commitment at work and specifically to Toyota Company’s core goals and objectives.

Human Resource Management Issues

The human resource fraternity forms the most instrumental segment of an organization. The people employed to aid in the achievement of an organization’s goals and objectives remain pivotal in enhancing organizational success. As a result, it is always a crucial requirement for every manager to ensure that the human resource fraternity is at its best at all times. The strategy may involve the use of appropriate leadership strategies, decision making skills as well as motivational approaches (Levi, 2007). Failure to use the right channels might cause a new manager to face various HRM related challenges at the place of work.  Some of the issues are highlighted below.

 

Diversity

The United States similar to most developed countries has its industries characterized by an extremely diverse workforce. Individuals from various walks of life enter the country in search of employment and other opportunities for development. The US itself comprises individuals who are different from each other along the aspect of race, religion and culture just to mention but few. At the same time, the Toyota Company being a multinational tends to employ workers from different walks of life hence the human resource fraternity at the US based company is equally likely to comprise a diverse workforce (Levi, 2002). Diversity comes with a myriad challenges especially for the manager who has to deal with individuals with varied ideologies and approach to organizational aspects. For instance the differences in terms of cultures and backgrounds may be accompanied by challenges to effective communication within the organization. When the work force comprises individuals who speak different native languages and have a low understanding of the formal language in America, communicating ideologies to such individuals may be a challenge. This is basically caused by variations in the nature reception to messages (Paauwe and Boon, 2009). Consequently, poor communication leads to slow movement of information within the organization which in turn slows down other crucial processes. Poor communication as a result of work force diversity is therefore one of the major issues likely to impact the new manager’s work in the United States.

Additionally, diversity at the work place can be illustrated by differences in gender and age. Depending on the legal stipulations outlined by a country on the treatment of employees, there is the need for equal opportunities presented to both the males and the females within an organization (Peetz, 2006). It may therefore be a challenge for the manager when it comes to obtaining a common ground for all the workers despite their gender, age, religion and sexual orientations. For instance in the United States, the law is particular on unfair treatment of individuals based on their sexual orientations. As such if the manager’s personal philosophy abhors people with unique sexual orientations, he is likely to face a challenge if he installs strategies which go against the host country’s stance on equal treatment of people despite who they are.

Diversity also involves variations in culture.  The cultural beliefs and activities tend to differ from one place to another. For instance, the Australians are characterized by given cultural orientations, practices and beliefs. This may not be the case in the United States. Consequently, the manager may have problems bringing together a people whose beliefs are diverse. There are leadership strategies and approaches which may not augur well with the American culture, in case of such situations, the workers are likely to take longer period of time adjusting to the new change in leadership. When such challenges are not sorted in good time, they may go a long way in slowing down the process of organizational development (Trevisani, 2016).

Motivation

In order to keep the worker force committed to the organization’s goals, there is need for appropriate motivational structures within the company. Good motivation is determined by a carefully established reward structure which covers all the aspects and departments within an organization (Posey, 2012). The new manager may face challenges in the new place of work especially due to the fact that the motivational needs of the human resource fraternity varies from one country to another. Consequently, using a rewards scheme similar to what was being applied in the former place of work may not operate effectively for the manager in the United States, At the  same time, the manager may have challenges adjusting to the already established reward scheme may be another challenge for the manager (Punch, 2006). It would therefore be important to establish the necessary adjustments on the leadership strategies which are likely to improve the motivational levels at the new place of work.

 

Leadership Approaches

The human resource, despite its pivotal role, is a complex body which requires the most effective leadership structures. In case the manager intends to overhaul the work philosophy, the workers’ reception to this transition may either be detrimental or constructive in line with the organizational performance (Riemann, 2008). The manager is therefore likely to face a number of challenges bringing in his leadership approaches at the new place of work. Some of these ideologies may be different from what the workers are used to. This may result in the workers’ resistance to this change in leadership which in turn prolongs the period the manager needs to settle at the new place of work.

Recommendations

The report outlines some of the employment relations and human resource management issues a manager changing places from Australia to the US is likely to face. In line with the issues highlighted above, a number of recommendations can be fronted. To begin with, the manager needs to have a good understanding of the policies established by the US government as well as the trade and workers unions. The regulations tend to differ from one place to another hence having a good grasp of the situation in America would enable the manager to make the necessary prior adjustments (Robert, 2003). The other recommendation would be the manager’s need to embrace flexible leadership approaches which would adequately cater for the varying employee needs as one moves from one place to another. The leadership strategies also need to be effective enough in handling the issue of diversity at the place of work. When these issues are not adequately addressed, vital processes such as decision making and the overall organizational performance are greatly influence.

Conclusion

In this report, a number of issues related to employment relations and human resource management have been highlighted as some of the challenges likely to be faced by the manager in his new place of work. In line with the aspect of employment relations, the report notes the aspects of changing employee requirements, time, age and the variations in government policies on management of business organizations as some of the issues which are likely to impact the manager in his new place of work . In line with the aspect of human resource management, changing motivational needs, differences in reception to the new leadership approaches as well as diversity at the place of work have been outlined as some of the issues likely to impact the manager’s working life. It would therefore be necessary for the manager to make the necessary adjustments in terms of leadership approaches, ideologies and philosophies in order to ensure that the change in work location will have the least negative impact on the performance of Toyota Company in the United States of America.

 

References

Bray, M. and Waring, P. (2009) Employment Relations: Theory and Practise. Sydney: McGraw Hill Campbell, J. (2002) ‘Personnel training and development’.  Annual Review of Psychology, 22(1), pp. 565–602.

Collings, D. and Wood, G. (2009) Human resource management. London: Routledge.

Dabsheck, B. (2000) ‘The Australian Waterfront Dispute and theories of the state’. Journal of Industrial Relations, 42(1), pp. 497-516.

Daft, R. and Armstrong, G. (2009) Organization Theory and Design. Toronto: Nelson.

Dunning, J. (2003) Multinational enterprise and the global economy, England: Addison-Wesley Publishers.

Glisson, M. (2008) ‘Productivity and Efficiency in Human Service Organizations as related to Structure, size and Age’. The Academy of Management Journal, 23(1), pp. 21--37.

Gomez-Mejia, Luis R. and David,  B.(2008) Management: People, Performance, Change. New York: McGraw-Hill. p. 20 John, W (2001) Industrial Law and Governance New York: Dryden Press.

Johnason, P. (2009) HRM in changing organizational contexts. London: Routledge.

Kerensky, K. (2002) Analysis Methods in Comparative Employment Relations. Harlow Longman, London.

Klerck, G. (2009) ‘Industrial relations and human resource management’. Journal of Management, 2(1), pp. 1-6.

Levi, M. (2007)  Gender Based Issues at the Workplace, London: Tavistock.

Levi, M. (2002) The organization and the Workforce. Oxford: Oxford University Press.

Paauwe, J. and Boon, C. (2009) ‘Strategic HRM: A critical review’. Journal of Management, 4(2), pp. 23-27.    

Peetz, D. (2006) Brave New Workplace: How Individual Contracts are changing our Jobs. Sydney: Allen & Unwin Publishers.

Posey, R. (2012) ‘Modern Organization Theory’. Administrative Science Quarterly, 5 (4), pp. 609–611.

Punch, M (2006) Dirty Business, London: Sage

Riemann, J. (2008). The Minimum Wage Laws, Boston: Allyn & Bacon

Robert, M. (2003) Employment Relations, London: Butterworth.

Trevisani, D. (2016) ‘Communication for Leadership: Coaching Leadership Skills’. Medialab Research, 34(1), pp. 23-34.

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