QUESTION
Williams College
Assignment Feedback
Edexcel BTEC Level 7
Extended Diploma in Strategic Management and Leadership
UNIT 10 – STRATEGIC HUMAN RESOURCES MANAGEMENT
Lecturer: Adrian Gauci
Date of Issue: 21/06/2010
Name of Student: ____________________ _________ Student ID: _________________________________ _
Date of Submission: _______________________ Name of Lecturer: _______________________
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gned by Student
I declare that all the work produced as a response to this assignment is my own work. I understand the college policy on
plagiarism.
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To be filled in by Lecturer
Guidelines:
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2) Feedback: Please put comments depending upon grade, for example if R- what can be improved and
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Imagine you are Dr. Eiji Toyoda, the new Human Resource Manager at a Toyota Production Plant in
Tokyo Japan, and your HR Department has just recruited 30 new university students for the Summer HR
Internship Program. The writer of the ‘Toyota Way Guidelines’ and current CEO asked you to be the
main speaker at the Internship Induction session for these 30 new students. The CEO also asks you to
give a report of what you will include in the presentation. Read the attached article for information.
Task 1 – STRATEGIC ROLE OF HRM
AC1: The learner works as a newly appointed human resources manager in an organization.
The Toyota CEO asked you to give a critical presentation during the induction seminar for these 30 new
students at the HR Department. The CEO asked to include a critical review of the overall strategic
role of the HR Department. In your critical presentation and report you should include the below:
1. Analysis of what HRM is; including 4 definitions, 4 Goals and 3 theories about HRM
2. An explanation and application of the Harvard and Michigan Models of HRM.
3. A comparison between Strategic HRM and Personnel Management Practices.
Feedback for Task
1
Circle as
appropriate
R P
R P
R P
Task 2 – HARD AND SOFT HRM PLANNING AND PRACTICES:
AC2: The learner works as a human resources manager in an expanding organisation.
Provide a detailed comparative report on what ‘Hard’ and ‘Soft’ HR policies should
be considered by Toyota to expand operation in USA. Illustrate the difference
between USA and Japan by use of a diagram. Also include some advantages and
disadvantages of hard and soft HRM practices to sustain your comparative analysis.
Identify and discuss the characteristics and benefits of any 5 Soft HRM Practices of
the Toyota Way that are discussed in the attached article (or also during lectures).
Discuss how these Soft HRM Practices can help in HRM Strategy Expand Globally.
Feedback for Task2:
Task 3 – IMPROVING HRM STRATEGIES
AC3: The learner is a HR consultant asked to review an HR Strategy.
Discuss what constitutes a Training and Development Strategy.
Also discuss in detail 3 activities of Training and Development Strategy that can be
used to improve the HRM Strategy achieves its goals at Toyota.
Discuss and review how the Kolb Learning Styles Theory can help reach HRM goals.
Discuss each learning style of the Kolb Model on overall HRM Strategy. Use a diagram
Feedback for Task3:
Overall Feedback:
Lecturer Signature : _________________ Date: _____________________
2
R P
R P
R P
R P
R P
Relations with Employees
Sharing the Toyota Way
Environmental & Social Report 2005
Social
Aspects
The Toyota Way 2001 clarifies the values
and beliefs that all employees should
embrace in order to carry out the Guiding
Principles at Toyota throughout the
company’s global activities. Until the Toyota
Way was published, Toyota’s management
philosophies, values, and business methods
had been passed on as implicit knowledge.
However, the rapid growth, diversification
and globalization of Toyota in the past
decade have increased the scope of its
manufacturing and marketing presence
throughout the world. Toyota is preparing
to operate as a truly global company, guided
by a common corporate culture, and has
identified and defined the managerial
values and business methods that are
known collectively as the Toyota Way.
Number of Employees by Region on a
Consolidated Basis
March 2005Region March 2002 March 2003 March 2004
Japan
North
America
Europe
Other
Total
180,273
27,721
11,894
26,814
246,702
The Two Pillars of the Toyota Way
The Toyota Way is supported by two
main pillars. They are “Continuous
Improvement” and “Respect for People.”
We are never satisfied with where we are
and always work to improve our business
by providing our ideas and best efforts. We
respect all Toyota stakeholders, and
believe the success of our business is
created by individual efforts and good
teamwork. All Toyota employees, at every
level, are expected to use these two values
in their daily work. Since 2002, Toyota has
adopted the Toyota Way for each individual
function, including human resources,
accounting, and overseas sales and
marketing, and has been working on
ensuring thorough implementation.
Toyota Institute
179,039
30,775
14,418
39,864
264,096
175,096
30,806
17,349
41,159
264,410
Toyota established the Toyota Institute
in January 2002 as an internal human
resources development organization that
aims to reinforce the organic integration of
global Toyota companies by way of sharing
the Toyota Way. From its establishment up
to the end of FY2004, more than 1,500
employees have received training at the
Institute, including approximately 600 from
overseas affiliates. In addition, since 2003,
overseas affiliates in North America, Europe,
Asia, and Africa have established their own
human resources training organizations to
promote a better understanding of the
Toyota Way.
171,087
31,543
18,554
44,569
265,753
Toyota Way 2001
Respect
We respect others, make every effort to
understand each other, take responsibility
and do our best to build mutual trust.
• Respect for stakeholders
• Mutual trust and mutual responsibility
• Sincere communication
Continuous
Improvement
Labor-Management Relations
Based on Mutual Trust and Respect
Mutual trust and respect between labor
and management is a fundamental
principle of Toyota’s employee relations, as
stated in the Guiding Principles at Toyota.
Following a labor dispute in 1950, mutual
trust between labor and management was
adopted as the foundation of the LaborManagement
Joint Declaration
concluded
in
1962.
Also,
the Labor-Management
Resolve
for
the 21st Century
signed by
labor
and management representatives
in
1996,
indicates the basic principle
of
mutual
trust
and respect.
In order to
achieve
this fundamental principle
in labormanagement
relations,
Toyota
has adopted
the
Basic Principles
of Human Resources
Management,
and continuously
works
to
strengthen
its labor-management relations.
Stable Employment
Stable employment that avoids layoffs
and terminations to the maximum extent
is a key pillar supporting the relationship
of mutual trust between labor and
management. In addition, the Toyota
management system is based largely on
maximizing employee abilities, reasoning
skills, and creativity, and human resources
are regarded as a key management asset.
The layoff and termination of human
Respect
for People
Teamwork
We stimulate personal and professional
growth, share the opportunities of
development and maximize individual
and team performance.
• Commitment to education and development
• Respect for the individual; realizing consolidated
power as a team
Challenge
Kaizen
Genchi Genbutsu
Basic Principles of Human Resources
Management
(1) Creating a workplace environment where
employees can work with their trust in the
company
· Stable employment where layoffs and dismissals
are not readily made
· Steadily maintain and improve working conditions
from a medium- to long-term perspective
· Ensure fairness and consistency
(2) Creating a mechanism for promoting constant
and voluntary initiatives in continuous
improvements
· Share the management mindset and sense of
critical urgency through thorough communication
· Reflect business results in working conditions
(3) Fully committed and thorough human
resources development
· Promote personal growth through work
· Communication of the Toyota Way/role
(4) Promoting teamwork aimed at pursuit of
individual roles and optimization of the entire
team
· Thorough consensus building and achievement in
single thrust
· Team results and creating a sense of unity
resources, not only damages the relationship
of trust, but also hinders the maximization
of employees’ abilities. The fundamental
basis of Toyota’s management philosophy
is to always take a medium- to long-term
management perspective and to maintain
stable employment through all possible
measures.
53
54
Social Aspects Employees
Communication with Employees
Toyota sees good communication as
Proud to work at Toyota
’00
(FY)
’02
Training target Workplace
Newly-joined staff
OJT Mentor System at the workplace
Career consultations with supervisors
OJT and practical training
Knowledge and skills that enhance employability
Skills and abilities necessary for working at Toyota
Administration staffSpecialistsAssistant managers
the basis for all activities. In addition to
communication in the workplace, Toyota has
created numerous other opportunities for
discussions between labor and management
including Labor-Management Councils,
Joint Labor-Management Round Table
Conferences, and various subcommittees.
Toyota has established a number of
hotlines for swift and appropriate resolution
of issues related to compliance, gender
harassment, mental health and working
conditions. Further, Toyota implements
employee morale surveys, and monitors
employee job satisfaction, etc. In a survey
conducted in FY2004, responses were
received from 83% of the approximately
19,000 employees that were surveyed.
Positive responses such as “I’m proud to
work at Toyota” and “I’m satisfied with my
working conditions” continue to be at high
levels.
100
(%)
40
50
60
70
80
90
0
Employee Morale
(Administrative and Technical)
Satisfaction with working
conditions
’04
Communication with Employees’ Families
Since FY2002, greeting cards from the
president have been sent to employees
and their families at the end of the year,
and since FY2003, various work sites have
held workplace visits for families to
facilitate communication between the
workplace and home. Toyota also created
the Toyota Fami-net, a family oriented
website, and is taking other measures to
enhance relations with employees’ families.
Greeting card from the president
Human Resources
Development
“Making automobiles is about developing
people.” As these words indicate, Toyota
seeks to develop human resources through
the process of making things. Toyota
believes that the development of human
resources requires the communication of
values and principles. Toyota has defined
the required qualifications of “professional
staff” for office and engineering positions
—associates who can create added value
on their own and contribute to society, as
well as utilize their strengths and exercise
teamwork— and “T shaped human
resources” —team members with a broad
range of skills, such as foreign language
skills and operational knowledge (the
crossbar of the “T”) as well as highly
specialized knowledge and experience in a
particular field (the vertical bar of the
“T”)— who are able to perform day-to-day
activities and expand their skills in
technical positions. Company-wide training
is conducted based on employee grades,
as well as specialized training for individual
Groups, and language training.
Human Resources Development
Framework that Emphasizes Problem
Solving
The three main points of human
resources development for office and
engineering positions are: (1) Thorough
training in problem solving during the first
ten years, until promotion to the post of
assistant manager; (2) Training is an
opportunity to trigger development of
human resources; but stronger emphasis
should be placed on on-the-job training
(OJT); and (3) Selected employees act
concurrently as instructors and mentors.
Based on these points, Toyota conducts
training of younger employees with a focus
on original problem-solving techniques to
enhance practical problem-solving skills.
In addition, Toyota has systematically
developed and implements training to
improve the managerial skills (human
resources development capabilities) of
managers, and global training for employees
at overseas affiliates to strengthen practical
skills in implementation of the Toyota Way.
Toyota also conducts a variety of self
initiated development programs including
language training and business-related
courses to respond to the employees’
desire for additional learning, regardless of
grade.
Structural Diagram of Toyota’s Human
Resources Development
Under consideration
Training
by grade level
Induction training
for
newly joined staff
Advanced training
for administration
staff
Orientation
training for
newly promoted
specialists
Advanced training
for specialists
Orientation training
for newly promoted
assistant managers
Advanced training
for assistant
managers
Developing a Business Culture that
Emphasizes Technical Skills
Toyota established the TMC Skill
Development System to revitalize the joy of
making things and to stimulate the desire
to acquire specialized skills among
production employees. Three ranks (A to
C) are recognized according to the level of
skills acquired. Specialized training is
conducted at manufacturing sites in
various plants, and technical trainers
selected from each worksite also undergo
training to enhance their training skills. As
of March 2005, a total of approximately
600 trainers (including 240 full-time
trainers) are working at all plants.
Toyota also holds company-wide
specialized skill exchange meetings and
participates actively in the WorldSkills
Competition to foster a business culture
that emphasizes specialized skills. Toyota
does not limit specialized skills to expertise
in work processes, but defines them to
include the skills necessary for promoting
improvements in work methods and
processes with an awareness of workplace
issues and challenges.
Personnel Exchanges and Training on
a Global Scale
Toyota created a system for intercompany
transfers
(ICT) that allows
employees
from overseas
affiliates to work
at
TMC
for
two
years,
to realize
personnel
exchanges
and training
on a global scale.
Currently,
approximately
300 employees
are
working
in Japan
under the ICT program.
Respect for Diversity and
Creating a Sense of Unity
With the globalization of business, the
social advancement of women, and other
social changes, diversity in human
resources (nationality, gender and other
differences) can enhance a company’s
competitiveness. Aspiring to be a company
that is an attractive arena of self-realization
for a diverse range of human resources,
Toyota respects diversity and works to
create a sense of unity.
Environmental & Social Report 2005
Social
Aspects
In FY2002, Toyota rolled out the
Diversity Project with particular emphasis
on promoting active roles for women, and
made a three-pronged effort to: (1) Help
enable women to work and raise children
at the same time; (2) Assist in women’s
career building, and (3) Reform the
working environment and employee
awareness.
(%)
30
40
20
10
0
150
100
50
0
Trends in Ratio of Female Employees
(Example of Administrative Positions)
(FY)
’00 ’01 ’02 ’03
Childcare Centers and Number of
Staff Taking Childcare
As a measure to support employees
balancing work and childcare, a childcare
center was opened in FY2002, followed by
the addition of another facility in FY2003,
bringing the total capacity to 100 children.
The number of employees taking childcare
leave is also increasing. The number of
male employees who have taken childcare
leave since FY1999 reached a cumulative
Trends in Number of Employees Taking
Childcare Leave
200
(Number of people)
100
153
128
’00 ’01
’02 ’03
172
’04
216
35%
’04
(FY)
A childcare center
total of 11 (two in FY2004). To support
return to the workplace after childcare
leave, the system has been enhanced by
adopting flexible working hours (e.g.
exemption of core time in flex system,
partial working at home, shortening of
working hours), resulting in an almost
100% return-to-work rate.
Increased Support for Balancing Work
with Childcare
With consideration to the implementation
of Policies and Measures to Support
Fostering Next-Generation Youth, Toyota has
conducted surveys and interviews with staff
as well as talks between labor and
management. An action plan based on the
results was formulated and submitted to the
Labor Bureau in April 2005. Toyota is
promoting further improvement in the work
environment, with three main action points:
support for production staff combining work
with childcare, career design support, and
raising of corporate awareness.
Long-term Contracts Offered to
Contract Employees
A revision of the law in 2004 extended
the maximum contract length for temporary
employees from one year to three years.
Many contract workers want to find work
that is more stable and offers a better
sense of achievement and fulfillment. In a
survey carried out in 2004, it was found
that 62% of respondents were interested in
acquiring specialized skills and knowledge.
Toyota is engaged in improving working
conditions, not only in order to secure
human resources who will serve as a
strategic force, but also to improve the
employment prospects for temporary staff
after the end of their contracts.
Employment of Disabled People
As of March 2005, Toyota employed
832 disabled people, and its disabled
employees ratio* reached 1.84%,
exceeding the 1.8% Legal Employment
Quota. Toyota believes in helping disabled
people achieve autonomy within society,
and makes it a basic rule to have them
work together with other employees.
Consequently, disabled employees can be
found in many kinds of positions at various
workplaces. At each business site, efforts
are made to create a workplace
environment that is safe and easy to work
in by devising various ways to adapt
facilities that accommodate the nature of
employees’ disabilities.
*In April 2004, the basis for calculating the
disabled employees ratio was altered
Employment of Elderly Workers
Regarding the best approach to work
arrangements and employment once staff
reach 60 years of age, labor and
management at Toyota have undertaken
repeated discussions and investigations
with the aim of taking active initiatives in
the interests of expanding employment
opportunities and securing livelihoods.
Communication that Involves
All Employees
In order to enhance communication that
involves all employees, Toyota is striving to
create a sense of unity and improve workrelated
skills and work
ethic.
One example is the utilization of “quality
control (QC) circles” to create a shared
awareness of problems, as well as to foster
collegiality and a desire for improvement.
QC circles involve not just TMC, but are
developed globally on a company-wide
basis to include suppliers, overseas
affiliates, and other relevant parties.
Moreover, the aim is not restricted to work
practice but extends to the creation of a
sense of unity, and the activities include a
range of events that take place during
employee leisure time. At the Ekiden longdistance
relay
race
held for
the 56th time in
2004,
292 teams,
including seven
from
overseas
affiliates,
participated
in a closely
fought
contest.
Examples of Quality Control Circle Activities
in FY2004
All-Toyota Total Quality Management Associate
Convention Held in September for 39th time
Attended by 1,500 participants from the Toyota
Group, Kyohokai, and Eihokai, with the aim of
creating a sense of unity throughout the entire
company
Toyota Global QC Circle Convention
Held in November for 17th time
Opportunity for exchange with 130 participants
from 33 overseas affiliates in 21 countries
Ekiden race held in December 2004
55
56
Social Aspects Employees
Health and Safety
Safety, along with quality and the
environment, is an important topic that is
connected to the very foundation of a
corporation. Toyota is making an effort to
create a safe and energetic work
environment, based on the philosophy of
“Respect for people,” and the fundamental
policies that “Safety is management itself”
and that “Placing safety first is everyone’s
responsibility, from senior executives to
every employee at the workplace.”
5-Year Policy (2000 – 2004)
1. Zero STOP6-type accidents and designated
occupational diseases by reinforcing a
proactive prevention system and structure
2. Building a workplace environment that is
healthy for the mind and body
Health and Safety
Main Actions Taken in FY2004
1. Notification and thorough enforcement of safety
regulations and workplace management items
2. Thorough countermeasures against frequent machine
stoppages (breakdowns where repair time is limited
to a number of minutes)
3. Further expansion of measures against ergonomic
(musculoskeletal) disorders
4. Promotion of measures against noise and dust
5. Management and guidance for construction work
by contracted companies on Toyota’s premises
Beginning with the thorough
implementation and development of Full
Observation Activities to reduce the risk of
workplace accidents, Toyota has developed
a range of voluntary activities to prevent
accidents. As a result, the number of
STOP6-type accidents
and designated
occupational diseases
2
1
in 2004 was the
fewest to date. Unfortunately, however, one
fatal accident did occur. As a measure to
prevent the recurrence of such an
accident, a so-called Lockout System
was
introduced covering all company machines
and equipment (see photos on the right).
Additionally, improved levels of health and
safety are being targeted by implementing
the P (plan), D (do), C (check) and A (act)
management cycle as part of the daily
routine.
1. STOP6-type accidents:
Six types of accidents that may cause death or
disability (being caught in a machine, contact with
a heavy object, contact with a vehicle, falls,
electric shocks, and contact with a heated object)
2. Designated occupational diseases:
Occupational diseases resulting from dust and
noise, or musculoskeletal disorders
3. Lockout System:
A system to protect the safety of workers whereby
a blocking mechanism is locked in place when the
power supply is turned off, for the purpose of the
maintenance or repair of machines and
equipment, so that the power will not be
mistakenly switched back on at the
machine/equipment involved
3
2
1.5
1
0.5
0
Industrial Accident Frequency
(Frequency of Lost Workday Cases)
All industries
Manufacturing industries
Automobile
manufacturing industry
Automobile
manufacturing industry
Toyota
’00 ’01 ’03’02 ’04
(Year)
*The figures for all industries, manufacturing industries and the
automobile manufacturing industry for 2004 are preliminary
Building Good Health
When health checks are conducted,
verification items independently selected by
Toyota are added to those prescribed by
law. In 2004, the ratio of completely healthy
employees
showed no change and fell
short of the target of 70%, but the number
of employees aiming to improve their health
by regularly exercising or taking part in
health seminars is steadily on the rise. In the
future, through developing BIP2 activities
4. Completely healthy employees:
Employees with an A ranking for health
management (no health problems found during
health checks and not receiving medical treatment)
5. BIP2 activity:
Behavior Change Innovation Program, a lifestyle
improvement campaign with targets set for body
mass index (BMI) and smoking rate
(%)
60
40
50
Trend in Percentage of Completely Healthy
Employees
30
’00 ’01 ’02 ’03
’04
(Old system)
(New system)
4
centered on the approach of behavioral
change (BMI, smoking), the aim is to
strengthen workplace activities that target
practical achievements in building health
and to continue activities designed to improve
the health awareness of every employee.
Lockout System
Warning Tag:
DO NOT SWITCH
ON!
Portable plug
Padlock used to
lock equipment
into off mode
5
(Year)
Mental Health Care
Regarding mental health at the
workplace, all of the newly appointed
managers and supervisors participate in
active listening courses
that are effective
for the prevention and early detection of
mental problems. In FY2004, this system
was extended to include newly appointed
division general managers, and training
sessions were given to include department
general managers, group managers, etc.
6
Also, as part of a self-care approach,
mental health care measures for individual
employees were enhanced through selfcare
training,
stress management methods,
and
other measures.
Through these activities, Toyota aims to
create a workplace environment with better
communication in the future.
6. Active listening courses:
Experiential training in methods of building
good communication through understanding
and sympathy for others’ feelings and
emotions; a technique of active listening
Global Health and Safety Initiatives
With the aim of achieving the highest
levels of health and safety at Toyota’s 45
production-related overseas affiliates,
relevant divisions at TMC and mother
plants are collaborating based on action
items proposed in Japan to implement
health and safety activities geared to
conditions in each country and region.
In addition, employees who are assigned
overseas and families accompanying them
undergo physical examinations before,
during, and after their overseas stays.
Doctors and other specialist personnel
conduct surveys of local medical facilities,
and consult with employees and their
families to alleviate concerns about living
overseas.
In FY2004, with the aim of enhancing
self-reliance and increasing the level of
health and safety at overseas affiliates,
44 health and safety staff from 31
overseas manufacturing companies were
invited to spend four days in September or
November to reaffirm their knowledge of
the Toyota Way in Safety, to share
information, and to
exchange views on
a range of other
issues.
Examples of Initiatives
Asia
Toyota Motor Thailand Uses Improvement as
Foundation for Growth during Baht Crisis
(TMT, Thailand)
Today, Toyota Motor Thailand Co., Ltd.
(TMT) is a pivotal point within Toyota’s
global strategy serving as a production and
export base for finished vehicles and parts,
with emphasis on the IMV* Project.
Looking back, Vice Presidents Apichai
Sidrattakul and Wichien Emprasertsuk note
that the company’s current growth is
thanks to systematic improvements taken
during the baht crisis.
Employment Maintained through
Deep Cost Cutting
Environmental & Social Report 2005
Social
Aspects
The crisis started suddenly on July 1,
1997. Over the next several months, the
baht plunged from 25 to the dollar to 50 to
the dollar, and the Thai economy took an
abrupt downturn. At that time, the reputation
of the Soluna, a model designed exclusively
for the Thai market, was extremely high, and
TMT received orders for 30,000 vehicles,
requiring its plant to operate two shifts and
take a variety of other measures to increase
production. However, reflecting the sudden
Rice milling plant that provided jobs to employees
during the baht crisis
Africa
Against this background, TMT showed a
strong commitment to uniting with the whole
workforce as well as suppliers and dealers
to ride out the crisis. This commitment was
shared with the labor union, and the entire
company together with the Toyota Group
implemented thorough measures to make
operations more lean, utilizing the resulting
excess labor to implement improvement
initiatives as well as additional education of
employees and suppliers.
For example, based on the concept of
“just in time,” energy was supplied to each
process when it was needed and in just the
right amount; personal wastebaskets were
reduced to one-quarter of their original size
to encourage less paper usage; and
localization was promoted by extending local
procurement to Tier 2 and Tier 3 suppliers.
Under these circumstances, TMT
presented a Soluna to His Majesty the King
of Thailand. This action inspired great
confidence in employees, dealers, suppliers
and all other stakeholders. From His
Majesty, TMT received a sum equivalent to
the price of the Soluna and it was
suggested that the money be used as the
basis for building a rice milling plant with
the cooperation of the Toyota Group. With
the support of the different group companies,
TMT built a rice milling plant near the
Gateway Plant. This contributed to the
local community and provided temporary
employment for employees who would
otherwise have been laid off.
Meanwhile, TMT also directed energy
into the education and training of
employees. As a result of these efforts,
without having dismissed a single full-time
employee, inventories were cleared in
January 1998 and production began to rise
again. In 2004, TMT produced 273,980
vehicles. By gritting its teeth during a
tough period and cultivating fundamental
stamina, TMT paved the way for the strides
forward it is making today.
TSAM Supports AIDS Countermeasures for Workers
(TSAM, South Africa)
In South Africa, AIDS is a serious social
problem. At Toyota South Africa Motors
(Pty.) Ltd. (TSAM), its effect on employees,
their families, and local communities is also
a great problem. In response, the company
is implementing an HIV/AIDS Support
Program.
Based on a policy of providing all
employees with a safe and healthy
workplace and working consistently to
improve employee health, TSAM supports
health management by its employees by
providing information on AIDS and offering
counseling and treatment by specialist
doctors. As a measure against AIDS, it is
important for employees to be aware of the
slowdown in the economy, the number of
units produced fell sharply, with the daily
operating time cut to just four hours.
state of their own health and to take steps
to avoid infection. To this end, in FY2004,
10,000 copies were published of the
information booklet
Toyota vs HIV/AIDS
and distributed to all employees. The booklet
gives concrete and clear information on
routes of AIDS infection, what to do if one
becomes infected, and what action to take
in the face of the serious problem of AIDS
directly present in everyday life.
In addition to AIDS prevention, TSAM is
investing time and energy in education to
eliminate the discrimination from families
and friends, which is one of the hardest
things that people with HIV face, and also
in training 200 employees to become
TMT manufactures and exports IMV Project vehicles
*IMV:
Innovative International Multi-purpose Vehicle
specialists in AIDS education, known as
peer educators. These are two areas
where TSAM is working to raise awareness
among employees. Additionally, TSAM has
set up an anonymous telephone advice line.
Peer educators on World AIDS Day
57
SOLUTION
Task-1:
Human resource management is a very important subject of management which gained a lot of significance after the concept of globalization and privatization when it became very instrumental to integrate the human resource in the organization which is working in highly competent and concise market. The most recent topic in current times is SHRM i.e. strategic human resource management. The major link between strategic HRM and HRM in practice is still not build by pioneers of corporate sector. What should be practiced is the strategic implication towards HR practices by narrowing the gap between self-interest and company interest, goal of the firm, vision of the firm and self, employee’s sense of belongingness and their retention and motivation for achievement of the same, these concepts should be practically implemented in corporate world. [Mbongya, 2006]
Edwin Flippo has described “HRM as planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resource to the end so that individual, organization and social objectives are achieved.” While Miller describes “HRM is strategic and coherent approach to the management, of an organization’s most valued assets.”Van Donk explains SHRM as concept which must be involved from the very early planning stages in terms of the type of human resources that are needed. This helps it in involvement that allows human resources to understand exactly what is needed.Miller in 1987 said Strategic human resource management deals with concerns with the ways in which human resource management is crucial to the firm. [Scribd inc, 2012]
Four goals of HRM are as follows:
- To manage the personnel force effectively and appropriately: HR department is meant to manage with the recruitment, selection, training, performance management, separation of the employees so that the personnel force is highly motivated and properly managed in the organization if human resource department would not have been there, it would become very difficult for organizations to manage with the workforce and their grievances after becoming a large and well known firm where the number of employees is relatively high to small firms.
- To maximize the productivity of the organization: the importance of human resource department lies in maximizing the productivity of the firm by means of higher employee engagement, more motivation due to proper management, grievance handling of the employees, reward and recognition management by HR department which helps the employees to put forward their issues to the management through means of liaison i.e. HR.
- To increase the quality of work life of organization’s employees: many employees want quality of work and self actualization from work life, therefore it becomes need for organizations to have a HR department which will take care of policies and practices as per employees convenience and motivation.
- To favor and protect the rights of labor and employee force: To favor and protect the rights of labor and employee force through means of proper laws, statutory disciplines, trade union, labor laws, employee insurance, benefits and health and safety conservancies of the employees.
3 theories of management to be discussed are: Henry Fayol’s principles of management, managerial grid model, management by objective of peter drucker.
Henry fayol’s principle of management says that there are 14 principles on which the basis of management of any organization is based. Division of work, authority, discipline, unity of command, unity of direction, subordination, direction, remuneration, centralization, scalar chain, order, equity, stability of tenure, initiative and spirit de corps. Fayols principles say that with following these parameters, human force can be managed and maintained properly so that they also contribute in company’s success.
Managerial grid model says that there are five combinations of successful management starting from low productivity low people that is impoverished style, then comes country club style where low productivity and high people, thirdly product style where high productivity and low people, fourth is middle style where there is medium productivity and medium people, fifth is team style of high productivity high people, all these combinations show that by altering some of the key functions, the other could be increased and those two variables are concern for productivity and concern for people.
Management by objective is one of the finest theories of HRM given by Peter Drucker who says that for perfect management objectives must be conveyed to the employees so that they could work in the desired direction and achieve the desired goal, and then those achieved goals and results must be compared with the objectives so as to find out the percentage of variation or errors.
The Michigan Model focuses on Hard HRM practices where ordering the employees, reward and punishments and strategies are kept as main locus and employees are considered as a driving force for extracting better performance and high productivity. The crux of this model and its relevance is to concentrate on efficiency by high productivity, lowered cost and maximum utilization of resources. This model attaches organizational development with external market performance which is also a positive aspect of this model for short term success and immediate growth. However there lie many disadvantages as well like possibility of long term failure due to robust marketing if internal environmental factors like human resource, their effectiveness, work load, grievances etc. Michigan’s model of HRM says that there are 4 factors which influence organizational performance, i.e. selection of the right employee, appraisal of their performance, and reward for good work i.e. compensation which is a factor of motivation and development which is linked with selection as training programs held after recruitment of employees. [Price, 2012]
Harvard model of soft HRM works on four principles: work system i.e. the nature of work and policies and practices of achieving it, reward for good work and motivation for low performance rectification, hr flow within the firm and all of them influencing employee at the core. USA follows soft HRM practices where they delegate responsibility and empower the employees for fast and perfection linked performance so that they could gain the sense of responsibility towards the firm’s vision and their work. Harvard model works on the principle of guiding the key managers on how to achieve their desired goals, it also works on the concept that employees need competence, knowledge, responsibility, guidance and congruence. The reward system is included in this model to understand the need of reward in motivation of employees.
SHRM i.e. strategic human resource management practiced is the strategic implication towards HR practices by narrowing the gap between self-interest and company interest, long term goal of the organization and employee retention and motivation towards achievement of the same. Employees are proactive rather than passive source of production. Employee participation, involvement and commitment are considered to be a model that produces reliable standard of excellence whereas the concept of personnel management is comparatively older where personnel force were said to be managed on bare necessity grounds and the workforce were considered as a mode of extracting productivity and maximum comfort given by firm to the employee was in form of personnel manager who takes care of employee grievances, who makes salary disbursements and otter holidays and compensation related issues. In other words, it was a smaller concept as compared to SHRM. [pinnamenini]
Task-2: Hard and Soft HRM
The concept of soft HRM practices are theoretically accepted as better model as to hard HRM but the reality remains that on ground level soft HRM is limited to just a concept and it is not being practiced on robust level in Toyota or any other big brand. In order to reshape employment relationship and to make organizational as well as organizational performance effective, soft HRM practices can be a long term benefit as compared to hard HRM. The locus of hard HRM is control, delegation of responsibility and strategies whereas soft HRM focuses on organic nature of organization where management is decentralized in nature and each person is considered integral part of organization. Soft HRM can yield developmental results for both firm and employee whereas hard is not applicable in current day world where the universe of organization is not limited to one country or continent. The difference between Hard and Soft HRM is that hard HRM focuses on resource utilization of HRM. [Gill, 1999]The hard HRM model has close integration of HRM policies and business strategy. From this perspective, human resource is a factor of production an expense of doing business, human resource is considered a passive source of creating profit. It is manipulative and tough minded approach whereas soft management considers HR as an asset, a source which provides competitive advantage and high quality of skill and adaptability. Employees are proactive rather than passive source of production. Employee participation, involvement and commitment are considered to be a model that produces reliable standard of excellence. Soft model should be practiced and is far more acceptable than hard HRM because the choice that key managers have is between strategies based on withholding control over employees and strategies based on employee commitment to that extent that it accelerates the employees for production. Another fact is that after globalization, HRM has inclined deeply towards soft model which we can see because even the most unproductive employees have their mission and career graph so as to create sense of belongingness towards the firm. Toyota is a leading brand in automobile industry which has excellent human force that has excelled themselves in leadership qualities and strategic management. Toyota considers its work force as an asset and therefore tries to abide strategic HRM principles to its management decisions so that employee has high degree of loyalty and excellence in its work. The management handles the human resource department of recruitment, training, appraisals and even separation with utmost emotions, feelings and motivations which is example of soft HRM practice so that employee could always give positive reputation of the brand in external market. USA has soft management as its core principle and Japan has hard management diagramme of hire and fire. Japan works on the principle of hard management that is to extract work from experts through work pressure, orders from seniors and punishment fear whereas USA follows soft HRM practices where they delegate responsibility and leave the employees for performing so that they could gain the sense of responsibility and seriousness towards the firm and the work. Harvard model works on the principle of guiding the managers on how to achieve the desired goals, it also works on the concept that employees need competence, guidance and congruence. The reward system is included in this model to motivate employees.
Harvard Diagramme of soft HRM is:
MICHIGAN’S MODEL OF HARD HRM:
The Michigan Model focuses on Hard HRM practices where control, delegation of responsibility and strategies are kept as main focus and employees are considered as a tool for deriving better performance and more productivity. The locus of this model and its strategy is to concentrate on competitive advantage by high productivity, low cost and full utilization of resources. This model attaches organizational growth with market performance which also became its advantage for short term success and immediate growth. However there lie many disadvantages as well like possibility of market failure due to negligence if internal environmental factors like human resource, their motivation, work load etc. Michigan’s model of HRM says that there are 4 factors which influence organizational performance, i.e. selection of the right person, appraisal of the performance, and reward for good work i.e. compensation which is a factor of motivation and development which is linked with selection as training and developmental programs are conducted after selection.
Michigan’s model of Human resource cycle:
5 soft HRM practices of Toyota are: employee engagement techniques adopted in the firm to promote motivation of employees and their interest towards the firm being an employee friendly firm. Then it can be said that company follows the innovative idea promotion technique wherein employees are promoted for giving new ideas to the management and they are considered if effective. Performance appraisal is highly transparent and is seriously considered where not only the performance is measured but their loopholes are scrutinized and counseling sessions are done so as to make the employees comfortable for discussing their hurdles. Toyota is well known for high retention which becomes possible due to company’s nicely build policies and timely growth to its employees so that they remain loyal and motivated to stay in the firm for long time. Apart from being highly responsive HR team from Toyota, it is also considered as a highly strict firm in terms of its grievance and discipline management. The policies of the company are very transparent, highly communicated and grievance of employees are very strictly heard irrespective of the rank which the employee is holding i.e. HR team flow within the organization.
Task-3:
Training and development strategies are constituted with reason or objective for training primarily, training module designing i.e. on the job, training centers, comprehensive training, lectures or counseling, way of communicating ideas in training like pamphlets, booklets, visual, audio usage or mentors discussions to be distributed evenly or in some other way. Then the evaluation criteria is also decided together with training needs analysis like what mode of training evaluation will be used, how effective has the training been can be found with surveys, interviews or anonymous questionnaires.
The first strategic training which could be practiced at Toyota is that work study training should be promoted i.e. classroom training should be introduced on large scale for induction training programs where newly introduced employees should be given long term classroom training about the work culture, techniques of production and mentoring from seniors and top officials. This method could be high success because the automobile industry is highly prone to technical faults and training about the basic safety and other new and modern techniques could bring high results. Another method is by involving the trainees in group building methods by means of which they could better understand the group dynamics prevailing within themselves. Business games and role plays should also be highly introduced on every weekend or week day sessions when employees will be playing various management games and role plays for real life situations which will solve dual purpose of employee engagement as well as productivity increase. [Scribd inc, 2012]
Kolb’s learning cycle is based on the theory of distinct styles of learning which are available that makes the principle of learning an easy task to perform. The four stages in the model are as follows: converger, reflective observation or diverger, assimilator and active experimentation and accommodator. Converger converges or integrates all knowledge and experiences to impart any learning, they make practical implications of ideas and thoughts; diverger conveys the knowledge to other parties and spreads those learning, they also see things from different perspectives, assimilator assimilates the knowledge gained and makes it available for further conveying for example in inductive thinking and reasoning and accommodator as the name suggests accommodates all knowledge and learning gained at one place or virtual point so that be available on one point for getting conveyed.
Kolb’s learning cycle: concrete experimentation is doing the component derived from the process or content. It has an impact on the HR strategies of the firm because doing the act derives most of learning for any employee as learning by doing is considered a very important aspect of learning styles.
Reflective observation stems from your analysis or judgement of events i.e. learning by means of observing, this is useful in HRM as there are many organizations that provide learning to employees on basis of simulation or real life situation watching of other old employees which will help an employee learn about the respective situation.
Abstract conceptualization means analysis of past actions and making of a concept that any particular step is taken in this particular situation. This is also a great method of learning because it is not always that people learn when things happen in real sense but at times people learn from past experiences preventing any fault or flaw being taken place in present time.
Active experimentation means experimenting things on practical grounds and learning by those and following all other steps after that. It is helpful in HRM as experimenting has always been considered a successful tool for bringing learning to employees.
Thus it could be said that Kolb’s learning cycle is a very good example of promoting learning styles and all these learning styles are interrelated and implementation of theses in an organization could bring really good outcomes. Another fact is that learning styles have direct impact on the human resource of the firm because promoting learning needs means effective hr management. This learning style theory enables us to under5stand how effectively learning could be promoted in firms and on employees what kind of positive impact it could have. It has also been said to be an experiential learning method because in all these learning styles it is seen that experiencing is a common fact. Such learning styles must be promoted in organizations together with training also being provided so that employee should be very well acquainted with the management principles and techniques of management. Human resource management is not just about providing technical and non technical training to employees but learning should be equally promoted so that employee should have the capability of self understanding and will be always motivated for good work and self evaluation. [Kolb and chapman, 2012]
Thus it could be said that Kolb’s learning cycle is a powerful tooll for promoting learning within an organization and it must be implemented to employees of all standards and ranks. Top officials should also be trained and motivated for self learning as self learning promoted innovations and innovations can bring competitive advantage for the firm. In order to identify the best HR practices, we need to make HRM more strategic and practically possible rather than just being a modular or theoretical subject to study and review. On the other hand it could be said that reviewing of already formed models and theories could always bri9ng to light HR policies and practices which must be followed in firms for achievement of growth and high productivity.
References:
- Arrey Mbongya Ivo, 2006, human resource management, viewed on 18th april, 2012, <http://www.africancentreforcommunity.com/articles-Dateien/Best%20Perspectives%20to%20human%20resource%20management%20by%20Arrey%20Mbongaya%20Ivo.pdf>
- Scribd inc, 2012, introduction to HRM, viewed on 18th april, 2012, <http://www.scribd.com/doc/24594577/Chapter-1-Introduction-to-Human-Resource-Management-Definition-Concept-For>
- Alan Price, 2012, hard HRM, viewed on 18th april, 2012, < http://www.hrmguide.co.uk/introduction_to_hrm/hard-hrm.htm>
- Neelima Pinnamenini, Diliang Su, Henry Findley, SHRM, viewed on 18th april, 2012, < http://business.troy.edu/Downloads/Publications/SIRHRC2003/2003SIRHRC/SHRM.pdf>
- Carol gill, 1999, Hard and soft HRM, viewed on 18th april, 2012, < http://mams.rmit.edu.au/d4lhtsmk45c.pdf>
- Scribd inc, 2012, training methods, , viewed on 18th april, 2012, <http://www.scribd.com/doc/10041934/HRM-Training-Development>
- David Kolb and Alan chapman, 2012, Kolb’s learning cycle, viewed on 18th april, 2012, < http://www.businessballs.com/kolblearningstyles.htm>
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