UNIVERSITY OF MUMBAI

PROJECT REPORT
ON
HUMAN RESOURCE PLANNING
OF TOYOTA COMPANY
BY
ROHIT RAMESH SHET
ROLL NO.MANAGEMENT 65
MCOM (PART I)
SEM I
ACADEMIC YEAR 2015-2016

PROJECT GUIDE
PROF. PARVEEN. NAGPAL
&
PROF.DR.M.S.PETHE

PARLE TILAK VIDYALAYA ASSOCIATION

M.L.DAHANUKAR COLLEGE OF COMMERCE
DIXIT ROAD, VILE PARLE (E),
MUMBAI-400 057

DECLARATION

I, Rohit Ramesh Shet , of Parle Tilak Vidyalaya Association M.L.Dahanukar College of

commerce, here by certify that this material, which I now submit for assessment as partial
fulfilment of the study is true and original to the best of my knowledge.

(Signature of student)

ACKNOWLEDGEMENTS
I would like to thank a number of people for their help during the writing of this dissertation.
I would like to thank my project guide Prof. Parveen. Nagpal for giving me direction, belief
and such a great encouragement throughout my dissertation.
I would also like to thank my college library, for providing me various reference books and
magazines related to my project.
And also I would like to thank each and every person who directly or indirectly helped me in
completion of the project, Thank you.

TABLE OF CONTENTS

Introduction to HRP
The HRP Process
Factors affecting HRP
Objective of the study
HRP of Toyota company
Planning process of the company
Secret of Toyota success
Case study
Human Resource Information System
Information system
Job analysis
Dob description of Toyota
Case study
Reference

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Introduction to HRP
Human resources planning are a process that identifies current and future human
resources needs for an organization to achieve its goals. Human resources planning should
serve as a link between human resources management and the overall strategic plan of an
organization. Human resource planning is one of the crucial aspects of human resource
management because it helps to ensure the needed manpower for organizational goal. Due to
the globalization movement, the competition to provide quality and low cost products has
been increasing day by day. In this situation, the HR department has to plan in order to
provide the quality manpower to compete in the market. The supply of manpower must be
sufficient to ensure the healthy operation of the organization. Otherwise, the stated goals and
objectives cannot be accomplished on time.
Human resource planning may be defined as a process of predetermining future human
resources needs and course of action needed to satisfy those needs to achieve organizational
goals. It ensures that organization has right number and kind of people, at right place, and at
right time capable of performing well in the organization. Human resource planning is a
continuous process rather than a one shot affair. It tries to keep the organization supplied with
required and capable people when they are demanded.
Moreover, human resource planning is a process of knowing that what kind of people should
be recruited to ensure the quality performance of the organization. It tries to ensure that the
required competency is maintained in line with organizational mission, vision and strategic
objectives. It also determines and organization's human resource needs. It identifies what is to
be done to ensure the availability of human resources needed to achieve stated goals and
objectives within the given constraints

Thus, human resource planning (HRP) is a complex and continuous process which helps
determine the manpower requirement of the organization. It helps to translate the
organization's objectives and plans into the number of workers needed to meet the objectives.
Hence, it claims at:
* Balancing demand and supply of workers
* Controlling cost of human labour
* Formulating policies on transfer, succession, relocation of manpower
* Ensuring right kind of people at the right time and right place.
According to K. Aswathappa, HRP is a process of forecasting a firms future demand for,
and supply of, the right type of people in right number.

Objective
The objective of this study is:

To understand the concept of human resource planning.

To disclose the planning process of Toyota company.
To disclose the secret behind the success of Toyota company.

Now let us how the human resource planning is undertaken at Toyota Company,

Toyota Motor Corporation is a Japanese automotive manufacturer headquartered

in Toyota, Aichi, Japan. In 2013 the multinational corporation consisted of 333,498
employees worldwide and, as of January 2014, is the fourteenth-largest company in the world
by revenue. Toyota was the largest automobile manufacturer in 2012 (by production). In July
of that year, the company reported the production of its 200-millionth vehicle. Toyota is the
world's first automobile manufacturer to produce more than 10 million vehicles per year. It
did so in 2012 according to OICA, and in 2013 according to company data. As of July 2014,
Toyota was the largest listed company in Japan by market capitalization and by revenue.
The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his
father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while
still a department of Toyota Industries, it created its first product, the Type A engine, and, in
1936, its first passenger car, the Toyota AA. Toyota Motor Corporation produces vehicles
under 5 brands, including the Toyota brand, Hino, Lexus, Ranz, and Scion. It also holds a
51.2% stake in Daihatsu, a 16.66% stake in Fuji Heavy Industries, a 5.9% stake in Isuzu, and
a 0.27% stake in Tesla, as well as joint-ventures with two in China (GAC Toyota and Sichuan

FAW Toyota Motor), one in India (Toyota Kirloskar), one in the Czech Republic (TPCA),
along with several "nonautomotive" companies. TMC is part of the Toyota Group, one of the
largest conglomerates in the world.

Planning Process of Toyota Company

Toyota is the third-largest auto manufacturer in the world, behind General Motors and Ford,
with global vehicle sales of over six million per year in 170 countries. However, Toyota is far
more profitable than any other auto manufacturer. Auto industry analysts estimate that Toyota
will pass Ford in global vehicles sold in 2005, and if current trends continue, it will
eventually pass GM to become the largest automaker in the world.

What is the secret of Toyota success?

The incredible consistency of Toyotas performance is a direct result of operational

excellence. Toyota has turned operational excellence into a strategic weapon. Toyotas
continued success at implementing these tools stems from a deeper business philosophy
based on its understanding of people and human motivation. Its success is ultimately based
on its ability to cultivate leadership, teams, and culture, to devise strategy, to build supplier
relationships, and to maintain a learning organization.

According to the book wrote by Jeffrey K. Liker, Ph.D., is Professor of Industrial and
Operations Engineering at the University of Michigan we can comprehend what have made
Toyota success. They have incredibly applied planning process to their operation step by step.
From setting goal, develop commitment, develop effective action plan, track progress toward
goal achievement, and maintain flexibility.
1. Setting goal

Toyota has identified specific company is to achieve simultaneously high quality, low cost,
short lead times, and flexibility.

2. Develop commitment

Then, the leaders try to motivate their employees because goals dont encourage them to
worker harder or smarter. Thus, they were armed with their shop-floor knowledge, dedicated
engineers, managers, and workers who would give their all to help the company succeed.

3. Develop effective action plan

They move to next step of planning is to develop effective action plans to their objectives.
Toyota lists the specific steps (how), people (who), resources (what) and time period (when)
for accomplishing a goal.

4. Track progress toward goal achievement

After completing second step, they use the method of tracking progress toward goal
achievement to get more motivating and rewarding and then gather and provide performance
feedback to make adjustment in efforts, direction and strategy that will lead to dramatic
increase in performance.

5. Maintain flexibility

Finally is maintaining flexibility, which is the key to their operations. They learned from
experiences and failures and improve them to satisfy their customers and get the best
productions.

They accept challenges with a creative spirit and the courage to realize their own dreams
without losing drive or energy. They approach their work vigorously, with optimism and a
sincere belief in the value of our contribution. Furthermore, they strive to decide their own
fate. They act with self-reliance, trusting in their own abilities. They accept responsibility for
their conduct and for maintaining and improving the skills that enable them to produce added
value. Toyota understands that in a typical business system, meeting and exceeding the
customers requirements is the task of everyone within an organization. And they

comprehended the definition of customer to include both internal and external customers.
Each person or step in a production line or business process was to be treated as a customer
and to be supplied with exactly what was needed, at the exact time needed.

Understanding Toyotas success and quality improvement systems does not automatically
mean you can transform a company with a different culture and circumstances. Toyota can
provide inspiration, demonstrate the importance of stability in leadership and values that go
beyond short-term profit, and suggest how the right combination of philosophy, process,
people, and problem solving can create a learning enterprise. I believe all manufacturing and
service companies that want to be successful in the long term must become learning
enterprises. Toyota is one of the best models in the world. Though every company must find
its own way and learn for itself, understanding the Toyota Way can be one giant step on that
journey.

Workforce Planning with How Toyota Australia Looks Forward to New Workforce
Tomorrows
Toyota is the worlds leading car manufacturer, committed to continuous improvement,
looking forward to new tomorrows The Toyota Australia workforce planning team is
embracing this, attracting global attention with Strategic Workforce Planning. The company
has a loyal and long serving team of 4500 employees and is very proud of their diverse
workforce, however, a shrinking workforce supply and retiring employees has led the
workforce planning team to approach Aruspex. The Aruspex Strategic Workforce Planning
framework taught them to analyze their current state and trends and envision what they
needed for the future.
They also learnt the steps of the workforce planning process developed by Aruspex. This
process includes environment scanning to identify the outside forces affecting the business,
calculating the quantitative future by projecting the No Change Future State, scenario
planning to explore possible qualitative futures and action planning to achieve their targeted
future. Toyota launched their new approach with a pilot in their strategically important
Franchise Development team, which involved introducing new methods such as scenario
planning and action planning. We took all the tools and ideas from Aruspex and easily
Toyota-ized them to fit with the company, says Sue Calvey, Labour Planning and

Recruitment Manager. At first, the business groups were sceptical about the process and it
was difficult to get them fully engaged. However, after only a couple of days, we found that
the department responded well to the process and were very positive.
We found that the groups complete HR strategy simply fell out of the Process! Calvey
says. Making the action plan was easy. Aruspexs process ensured we had explored all the
difficult questions and thus the solutions to our challenges formed naturally.
Using good Strategic Workforce Planning techniques, Toyota was able to base their action
plan on real information rather than arbitrary beliefs. The result was a 2-year-plan and a full
HR strategy which includes retraining and redeployment for staff whose areas of work would
diminish in the future, anticipating these changes to minimize the impact on Toyota, and on
their loyal workforce. When they presented this to the Divisional Human Resources and
Franchise Development managers, both were impressed.
The process has been very valuable and we have gained a lot of knowledge, Calvey says.
We are now prepared for any future and are able to deal with it accordingly. Unlike other
methods that produced purely quantitative predictions, Aruspex has allowed us to produce
comprehensive action plans that cover a wide range of possibilities and allows us to respond
to the workforce environment in the most appropriate way.
By using the Aruspex Strategic Planning framework and tools, Toyota has been able to think
strategically and proactively about the future and produce measurable but qualitative plans
that far exceed earlier attempts at labour planning.
The Toyota Workforce Planning team is now working with other groups in the organization,
winning them over one by one as they roll the Toyota-ized Aruspex process out through the
organization and getting some good attention from Toyota Motor Corporation head office in
Japan (TMC).

Recently TMC approached Toyota Australia with their corporate strategy, needing the local
team to be able to clearly explain how they would achieve their goals.
We were prepared for them and were able to tell them exactly where we were and where we
wanted to be, says Calvey. Rather than be surprised by the changes, we were able to
discuss all the concepts and consequences with the team from TMC in a really strategic and
proactive way. The whole company is set to complete scenario planning later this year and
the HR department knows how important and positive this work is and are excited about the
recognition they are getting from the rest of the organization.
They have come to the realization that Workforce Planning is not just a fad, says Calvey,
its gaining momentum and is here to stay. Using Aruspex Strategic Workforce Planning,
Toyota is also looking forward to the right workforce for their new tomorrows.

Human Resource Information System:

Human Resource Information Systems (HRIS) have become one of the most important tools
for many businesses. Even the small, 20-person office needs to realize the benefits of using
HRIS to be more efficient. Many firms do not realize how much time and money they are
wasting on manual human resource management (HRM) tasks until they sit down and
inventory their time. HRIS is advancing to become its own information technology (IT) field.
It allows companies to cut costs and offer more information to employees in a faster and
more efficient way. Especially in difficult economic times, it is critical for companies to
become more efficient in every sector of their business; human resources (HR) is no
exception.

HRIS refers to software packages that address HR needs with respect to planning, employee
information access, and employer regulatory compliance. The following text begins with a
discussion of human resource planning, followed by human resource management systems.
American companies must now operate in a rapidly changing business environment. These
changes have important implications for HRM practices. To ensure that management
practices support business needs, organizations must continually monitor changing
environmental conditions and devise HRM strategies for dealing with them. The procedure
used to tie human resource issues to the organization's business needs is called human
resource planning. Also known as HR planning, this procedure is defined as the "process of
identifying and responding to [organizational needs] and charting new policies, systems,
and programs that will assure effective human resource management under changing
conditions."
The purposes of HR planning are to enable organizations to anticipate their future HRM
needs and to identify practices that will help them to meet those needs. HR planning may be
done on a short- or long-term (three or more years) basis. Its aim is to ensure that people will
be available with the appropriate characteristics and skills when and where the organization
needs them. The use of HR planning enables companies to gain control of their future by
preparing for likely events. That is, they can anticipate change and devise appropriate courses
of action. When companies learn how to capitalize on future events, their own future
improves.
As valuable as HR planning is, many companies ignore this opportunity. Some see it as too
difficult and frustrating, while others simply do not see the need for it. However, when failing
to properly plan for their human resources, employers are forced to respond to events after
they occur, rather than before; they become reactive, rather than proactive. When this

outcome occurs, an organization may be unable to correctly anticipate an increase in its future
demand for personnel. At best, such a company would be forced to recruit personnel at the
last minute and may fail to find the best candidates. At worst, the company may become
seriously understaffed.
If a company remains understaffed for a prolonged period, it may ultimately suffer a variety
of consequences.

Exhibit 1
HR Trend Analysis for a Manufacturing Firm
2006

2007 2008 2009 2010

Projected sales (thousands of dollars) 10,200 8,700 7,800 9,500 10,000

Number of employees
240
200 165
215
?
For instance, the understaffing could cause existing employees to experience a great deal of
stress as they attempt to meet additional demand without adequate resources and assistance.
If required work is not getting done, the firm ultimately may experience an increase in back
orders, which could cause a decrease in customer goodwill, an increase in competition, and a
loss of market share.
When engaged in human resource planning, a company derives its human resource needs by
first forecasting its demand for human resources (i.e., the number and types of people needed
to carry out the work of the organization at some future point in time), and then its supply
(i.e., the positions that are expected to be already filled). The difference between the two
forecasts signifies the firm's HR needs. For example, if a firm estimates that it will demand

12 accountants during the next fiscal year and expects to retain its supply of nine who are
already on staff, its HR need would be to hire three additional accountants. Following is a
closer look at how a company can determine its HR needs and devise plans to meet them.

DEMAND FORECASTING
Demand forecasting involves predicting the number and types of people the organization will
need at some future point in time. There are two general approaches to demand forecasting:
statistical and judgmental. Using a statistical approach, an organization predicts its needed
workforce size on the basis of certain business factors. A business factor is an attribute of the
business, such as sales volume or market share, which closely relates to the size of the needed
workforce. For example, a hospital could use the business factor of projected patient load to
predict the number of nurses it would need at some point in time.
A statistical approach to demand forecasting typically is used when an organization operates
in a stable environment, where an appropriate business factor can be predicted with some
degree of certainty. For example, a statistical approach may be appropriate for a hospital
located in an area with little population growth. Organizations operating in less stable
environments (e.g., a hospital in an area experiencing explosive growth and change) are more
likely to rely on a judgmental approach.
STATISTICAL APPROACHES.
The most commonly used statistical methods of demand forecasting are trend, ratio,
and regression analysis. In trend analysis, the future demand for human resources is projected

on the basis of past business trends regarding a business factor. An example of a trend
analysis is illustrated in Exhibit 1, which depicts the relationship between a business factor
(namely, sales volume) and workforce size. As one can see from the exhibit, if the company
expects its 2010 sales to be $10 million, it will need to increase its workforce to a size of
nearly 240, which is the number of employees it had in 2006 when sales were $10.2 million.
Ratio analysis is the process of determining future HR demand by computing an exact ratio
between the specific business factor and the number of employees needed. It thus provides a
more precise estimate than trend analysis. For instance, the demand for professors at a
university could be forecast on the basis of the student-faculty ratio. Suppose that a university
has 10,000 students and 500 professors; the student-faculty ratio is thus 10,000:500 or 20:1.
This ratio means that for every 20 students, the university needs 1 professor. If the university
anticipates a student enrolment increase of 1,000 for next year, it would need to hire 50
(1000/20) new professors. This is in addition to any hiring needed to fill vacancies from
existing faculty who might leave in the meantime.
Regression analysis is similar to both trend and ratio analyses in that forecasts are based on
the relationship between a business factor and workforce size. However, this method is more
statistically sophisticated. Using statistical software, the analyst first creates a scatter diagram
depicting the relationship between the business factor and workforce size. The software can
then calculate a regression line, which cuts right through the centre of the points on the
scatter diagram. (The regression line is mathematically determined using a formula found in
most statistical texts.) By inspecting values along the regression line, one can see how many
employees are needed at each value of the business factor. Both ratio analysis and regression
analysis are aspects of human resource management systems (HRMS) packages, and

therefore provide the business with the capabilities to calculate more accurate and timely
forecasts.
An example of how regression analysis can be used to project HR demand is shown in
Exhibit 2. In this example, the figures used in the trend analysis (Exhibit 1) are now depicted
in the form of a scatter diagram. The line running through the centre of the points plotted on
the scatter diagram is the regression line. To determine the number of employees needed
when the sales volume is $10 million, one would follow the path indicated by the dashed line.
One would start at the point on the X axis reading "10, 000," and then move up vertically
until reaching the regression line. The value on the Y axis corresponding to that point (i.e.,
230) reflects the needed workforce size.

Exhibit 2
Regression Line Depicting Relationship between Sales Volume and Workforce Size
Statistical methods of demand forecasting assume that the relationship between workforce
size and the business factor remains constant over time. If this relationship were to change
unexpectedly, the forecast would become inaccurate. For example, the forecast of needed

professors based on the student-faculty ratio would be inaccurate if the university decided to
change its teaching approach and institute distance learning classes. This approach to
teaching involves the use of video equipment, which can beam the professor's lectures to
many different locations, thus allowing many more students to enrol in the class.
Consequently, the 20:1 ratio would no longer apply; the university would now be able to
function with fewer professors (or at least more students per professor).
JUDGMENTAL APPROACHES.
Judgmental approaches to demand forecasting involve the use of human judgment, rather
than a manipulation of numbers. Two of the most commonly used judgmental techniques are
group brainstorming and sales force estimates. The group brainstorming technique of demand
forecasting uses a panel of experts (i.e., people within the organization who collectively
understand the market, the industry, and the technological developments bearing on HRM
needs). These experts are asked to generate a forecast through the process of brainstorming. A
variety of brainstorming techniques exist. Most involve a face-to-face discussion among
group members, who are asked to reach a consensus.
When using a group brainstorming technique to forecast human resources demand,
participants must make certain assumptions regarding the future. That is, they must examine
the firm's strategic plans for developing new products or services, expanding to new markets,
and so forth, and then try to predict such things as:

Future marketplace demands for the organization's products and services

The percentage of the market that the organization will serve

The availability and nature of new technologies that may affect the amounts and types
of products or services that can be offered

The accuracy of the forecasts depends on the correctness of these assumptions. Of course, the
future is very difficult to predict because it is subject to many uncertainties. Therefore, the
organization must continually monitor its demand forecasts in light of any unexpected
changes. HRMS packages facilitate the calculation and monitoring of demand forecasts.
The use of sales force estimates represents another judgmental approach for forecasting HR
demand. This approach is most appropriately used when the need for additional employees
arises from the introduction of new products. When a new product is launched, sales
personnel are asked to estimate the demand for the product (i.e., expected sales volume)
based on their knowledge of customer needs and interests. The organization then uses this
information to estimate how many employees will be needed to meet this demand. One
drawback of this approach is the possibility of bias. Some sales personnel may purposely
underestimate product demands so they will look good when their own sales exceed the
forecasts. Others may overestimate demand because they are overly optimistic about their
sales potential.
SUPPLY FORECASTING
Once a demand forecast has been made, an organization has a relatively good idea of the
number and nature of positions it will need to carry out its work at a particular point in time.
It then estimates which of these positions will be filled at that time by individuals who
already are employed by the company. The process used to make this estimation is called
supply forecasting.

Supply forecasting is a two-step process. HRMS packages provide the employer with the
means to automate much of these two steps. In the first step, the organization groups its
positions by title, function, and responsibility level. These groupings should reflect levels of
positions across which employees may be expected to advance. For instance, the HRM group
might include the job titles of HR assistant, HR manager, and HR director. The secretarial
group might include secretarial clerk, principal secretary, senior secretary, and administrative
assistant.
The second step of supply forecasting is to estimate, within each job group, how many
current employees will remain in their positions during the planning period, how many will
move to another position (e.g., through transfer, promotion, or demotion), and how many will
leave the organization. These predictions are partially based on past mobility trends (e.g.,
turnover and promotion rates). The organization also should consider any plans for mergers,
acquisitions, unit or division divestitures, layoffs, retrenchments and downsizing, and even
hostile takeovers. When making its supply forecast, the organization also should look at
specific individuals. Some may have already announced, for instance, that they are retiring at
the end of the year, returning to school in the fall, or getting married and planning on moving
to a different part of the country.
Computerized statistical packages are available to help estimate the flow of employees
through an organization. The estimates generated by these packages can be fairly accurate in
stable environments. When the environment is unstable, of course, these estimates are
suspect. For instance, an organization may base its estimates on past turnover rates, which
have been about 10 percent during each of the past five years. If the turnover rate were to
change drastically because of factors such as job dissatisfaction or down-sizing, the
organization would severely underestimate its future staffing needs.

ESTIMATING FUTURE HUMAN RESOURCE NEEDS

Combining the results of the supply and demand forecasts within each job group derives
specific staffing needs. For example, consider a firm that currently employs twenty-five
secretaries. As the result of its supply forecast, the firm predicts that five of these secretarial
positions will become vacant by the end of the planning period because of retirements,
promotions, and so forth. Its demand forecast predicts that three new secretarial positions will
be needed during the coming period because of an increased demand for the company's
product. By combining these two estimates, the firm now realizes that it must hire eight new
secretaries (five to replace those expected to vacate their positions, plus three to fill the newly
created positions).
OUTCOMES OF THE HR PLANNING PROCESS
When the HR planning process is completed, a firm must establish and implement HRM
practices in order to meet its human resource needs. Following is a brief overview of how
HRM practices can help organizations to deal with anticipated oversupplies and
undersupplies of personnel.
The trend toward organizational restructuring usually results in a smaller workforce.
Therefore, when an organization's strategic plan calls for restructuring, the HRM response
usually is one of downsizing. Downsizing usually results in layoffs. Because of the negative
outcomes that are often associated with layoffs, employers are encouraged to seek
alternatives, such as hiring freezes, early retirements, restricted overtime, job sharing, and
pay reductions.
When the results of demand and supply forecasting project an undersupply of personnel at
some future point in time, the organization must decide how to resolve this problem. The

solution may involve hiring additional staff, but there are other options. When HR plans
indicate an undersupply of employees, firms can recruit personnel to staff jobs with
anticipated vacancies. HRMS packages provide employers with capabilities to carry out
recruitment in all of its steps. The first step is to conduct a job analysis to determine the
qualifications needed for each vacant job.
The next step is to determine where and how to recruit the needed individuals. For instance, a
company must decide whether to fill its vacancies externally (i.e., from the external labour
market) or internally (i.e., from its own current workforce). When recruiting externally, an
organization should first assess its attractiveness in the eyes of potential applicants;
unattractive employers may have trouble generating a sufficiently large applicant pool. Such
employers should attempt to increase the number of people who are attracted to the
organization and thus interested in applying for a job there. This may be accomplished by
increasing starting pay levels and/or improving benefit packages. Another option is to target
certain protected groups whose members may be underemployed in the local labour market,
such as older, disabled, or foreign-born individuals.
Internal recruitment efforts can be improved through the use of career development programs.
When designing such a program, the organization should collect work history and skill level
information on each of its employees. Such information would include age, education level,
training, special skills (e.g., foreign language spoken), and promotion record, and should be
stored on a computer. This employee information allows the organization to identify current
employees who are qualified to assume jobs with greater responsibility levels. For instance,
in departments where skilled managers are in short supply, a management replacement chart
can be prepared that lists present managers, proposes likely replacements, and gives an

estimate of when the replacement candidate will be trained and available to fill an open
position.
Instead of hiring new workers to meet increasing demands, an organization may decide to
improve the productivity of the existing workforce through additional training. Other options
include the use of overtime, additional shifts, job reassignments, and temporary workers.
Another option is to improve retention rates. When this aim is met, firms will have fewer job
vacancies to fill.
Retention rates can be improved at the outset of the employer/employee relationship, when
applicants are first recruited. Retention rates are likely to improve when applicants are given
a realistic preview of what their jobs would actually be like (warts and all), rather than an
overly glowing one.
Workers want to feel valued and needed by their organization. In a climate characterized by
mergers, acquisitions, and layoffs, many workers feel very insecure about their jobs.
Employees with such feelings often begin shopping around for other jobs. These fears can be
eased by implementing HR plans for training and cross-training. Such plans allow workers to
perform a variety of functions, thus ensuring that they have the necessary skills to continue
making contributions to the firm. Management training also is crucial in this regard.
Organizations must train managers to be good supervisors. Poor "people management" is a
primary cause of voluntary turnover. Managers at all levels should know what is expected of
them, in terms of managing people instead of just managing budgets.
Companies also can improve retention rates by creating a work environment that encourages
employees to participate actively in the company's total welfare. Workers want recognition
for their contributions to organizational progress, but this recognition must be tailored to the

workers' individual needs. While some workers may be motivated by monetary rewards,
others seek recognition by peers and managers, feelings of accomplishment, or job
satisfaction.
Workers now demand more flexible schedules to best fit their lifestyles. Organizations can
improve retention rates by implementing programs to accommodate these needs, such as job
sharing, shortened workweeks, and telecommuting via computer and modem.
Finally, companies also can improve retention rates by offering attractive benefit packages,
such as generous retirement plans, stock ownership, health and dental insurance, and
employee discount programs. Many firms are now offering "cafeteria plan" benefit packages,
which are tailored to the specific needs of each of their employees.
Information Systems
Toyota has actively propelled growth and innovation in its information systems by
incorporating new information processing technologies while responding to various changes
in the external environment, including rapid globalization of development, manufacturing,
and sales operations; advancements in car electronics technologies; compliance with global
environmental standards; and changes in the Japanese and global economy.
Growth and innovation of information systems at Toyota in the second half of the 1980s to
first half of the 1990s saw advances in office automation and in the globalization of corporate
systems in the commercial systems of business application systems. In the engineering
systems of business application systems, Toyota applied in-house-developed CAD/CAM
systems to broader areas of activity and also extended them to supplier operations.

From the second half of the 1990s to the early 2000s, advancements in administrative
systems made information systems more globally adaptable and also brought about reform of
Toyota's overall management structure. Innovations in engineering system made engineering
data more integrated and more useable on a global basis.
From the early to late 2000s, Toyota sought to globally standardize all business application
systems and make better use of information. Even such IT infrastructure as IC network
systems were globally standardized and shifted to TCP/IP-based systems in Japan and
overseas. The economic crisis that shook the world from 2008 to 2009 also had a major
impact on Toyota's information divisions. Since then, Toyota has sought to improve the
efficiency of system development and maintenance and has instituted structural reform of its
system development and maintenance organization.

Job Analysis:
What is a Job Analysis?
A Job Analysis is a detailed look at a particular job or job classification. It is process that
identifies the tasks performed on the job and knowledge, skills, abilities, and personal
characteristics needed to perform those tasks. One of the crucial parts of this process is to
meet with Subject Matter Experts to help identify the key responsibilities, tasks, and
knowledge, skills and abilities of the classification. Subject Matter Experts are incumbents,
firstlevel supervisors or hiring managers, or employees who previously were in the
classification.
Why do we use Job Analysis?

Job analysis results in the identification and documentation of the essential functions of a job
(or job classification), the specific task requirements of the job classification, and
Knowledge, Skill and Abilities required to perform those tasks and essential functions. Once
conducted, a job analysis can provide data for multitude of human resources activities
surrounding a given job classification, including the following:

Classification and pay

Recruitment and Selection
Training and Development
Performance appraisal
Disability or returntowork accommodation
Human resource/workforce planning

Job analyses are conducted to obtain accurate, current, and reliable information about jobs in
order to make better employment and management decisions, to save money, to increase
productivity, and to comply with federal and state laws where adverse impact is found related
to prohibited discriminatory factors.
provides

employers

with

Job analysis, as the foundation of selection procedures,

means

to

make

sound,

costeffective

employment

decisions. Selection procedures based on a thorough job analysis are designed to identify the
bestqualified candidates for a job.
The purposes of job analysis
A.

"... Job analysis is to the personnel specialist what the wrench is to the plumber."
(Cascio, 1982). It is the cornerstone of nearly all personnel practices. (Mitchell, Alliger, &
Morfopoulos, 1997).

B.

Job Description: A snapshot communicating the essence of the job.

1. Usually contains information such as job title, summary of job purpose or
objectives, and duties and tasks that are done on the job.

2. Among other purposes, job descriptions are important for letting people who dont
do the job know what the job is.
C.

Job Specification: Identifying the skills or attributes a worker should have to

successfully do a job.

D.

Job Classification: Identifying what jobs go together somehow.

1. They may go together for a variety of reasons, for example:
(a) Similar tasks carried out.
(b) Similar KSAOs needed.
(c) Similar lines of authority.
2. Job classification can be important for setting pay, hiring employees, moving
employees between jobs.

E.

Job Evaluation: Establishing the worth of jobs to employers.

F.

Job design and redesign: Deciding what tasks or units of work go together into a
single job.

The Toyota Job Description: Follow Standards & Find Better Ways

The Toyota managers who share their insights with us on our study missions to Japan tell us
that there are two things that are part of every Toyota' employee's job. They are:
1)
2) Find a better way

Follow

the

standard

This is the essence of kaizen. These simple yet profound rules are what drive every employee
to maintain safety, quality, low cost, and on-time, and strive to make it better. It sounds so
simple, yet how many of us who think we've made good progress on our Lean journey could
say that our organizations live by these rules?
Taiichi Ohno said "Where there is no standard there can be no kaizen (improvement)." When
the fastest, safest, best quality, repeatable steps have been identified that is documented as the
standard. That is now the record to beat. Kaizen teams find and eliminate
unreasonable/unsafe working conditions waste, variability, and waste (muri, Mura, muda).
The term "standard" can be misunderstood as something rigid, unchanging, and absolute. If it
is misunderstood in this way, it becomes an obstacle to kaizen.
Take the example of a 1st tier automotive supplier of rubber products. After redesigning the
assembly lines and implementing one-piece flow, it came time to create Standard Work.
The production manager who had been actively participating in kaizen resisted documenting
Standard Work. When finally confronted, he explained that he didn't want a published
standard time because he wanted to keep challenging guys to beat their times and get higher
production in fewer hours. What he was talking about was "the record" you had to beat to
have your picture up on the "wall of fame" at the factory. Standard Work is the method used
to achieve that record and must be redrawn each time the record is broken. It is how you train
to beat the new record.
Machine operators in a candy factory had concerns with establishing standards settings on
their production lines. Their reasoning had to do with the fact that in the past management
had wanted standard followed strictly and not adjusted. This was an attempt to maintain

control and keep quality at a certain level. Yet without the "Find a better way" element, it was
not kaizen.
The second part of their concern had to do with the fact that now that they had freedom to
change settings, they did often based on variation in the quality of the cooked candy, the
recipe, etc. The fact that this level of variation exists and requires constant adjustment is a
waste of processing, and demands that standards are set, followed, and improved.
It was not an easy process, but once we listened to these points and discussed how setting and
improving standards could address their concerns, the kaizen efforts were back on track.
Another example is during a series of Lean Enterprise overview sessions conducted to train
engineers on how to apply kaizen in their areas. We were warned by the Lean Manager
"Whatever you do, don't mention standards to engineers." We were puzzled, and discovered
that yet again there is a strong belief that standards get in the way of creativity or freedom to
make a better product design or a better process.
Even in engineering "knowledge work", whatever is the most effective current method is the
standard. "Most effective" needs to be based on fact. With engineering work, so little of it is
measured in terms of time or quality that this can be difficult, nonetheless, standards needs to
be documented and shared so that kaizen can happen.

Job description of Toyota Company:

To prepare Group Marketing Budget.

To Plan and achieve events and enquiry for month to year as per DESI.
To plan and coordinate advertisement and events with other locations and complete

the schedule.
To coordinate with agencies for advertisement and events.
To propose creative ideas for marketing campaigns those communicates benefits to

the customer and execute the same with sales team.

Arranging for advertisements to be placed in newspapers, magazines, the

trade press, TV or radio.

To coordinate with vendors for quotations, rate and completion of activities.
To plan schemes on month to month basis for all locations.
To coordinate with Toyota Kirloskar for Budget, submission of events plan, claims

and follow-up.
To prepare and submit Dealership sales activity plan to TKM zonal monthly.
To prepare Pre & Post event reports and share post activity feedback.
To finalise tele marketing targets.
To review performance of tele marketing team on daily / weekly & monthly

basis.
To train event champion on his /her activities during the event.
To conduct regular Training of Team member.

Toyota invest in 1Techs process engineering expertise

Toyota select 1Tech to champion best practice

This case study describes how one of the worlds most innovative and successful companies
selected 1Tech to improve and integrate its IT processes and to transfer skills to Toyotas
information systems community.
Toyota have developed a collection of processes and standards for use by their Information
Systems department known as the Information Systems Methodology (ISM) and, within it, a
further set of processes known as the Information Systems Project Methodology (ISPM) to
manage both the software development lifecycle and the business processes which govern it.
They have also chosen to implement an agile methodology for software development and
integration projects.
At Toyota, all employees have two roles: their own job and quality assurance.
On each vehicle production line, a cord, known as the Andon cord, runs along the length of
the line. If a line worker notices anything unusual, such as a defect, they pull this cord and the
line stops. The team then concentrates all of their effort on correcting the defect before the
line starts up again.
Toyota invented the concept of Just in Time in 1938 (often described as Just in time, stop
the line). The objective was not simply to reduce inventory, as is often thought, but to avoid
building up too much stock with defects which would have to be written off or corrected.

Just in Time and this culture of quality evolved into the Toyota Production System and its
more generic equivalent, Lean Manufacturing, which is the benchmark for manufacturing
organisations across the globe.

Toyota introduced Total Quality Management (TQM) as long ago as 1961 and was the first to
introduce Kaizen (lit. Improvement) to represent the concept of continuous improvement.
These concepts and the associated culture are practiced in every aspect of Toyotas
operations, including information systems.

Toyota (GB) PLC is part of Toyota Motor Corporation the worlds seventh largest company
and the second largest global car manufacturer. Importer and distributor for Toyota and Lexus
vehicles in the UK, the company is responsible for sales, marketing, after sales and customer
relations across its entire UK network of 200 Toyota Centres. 1Tech has been working with
Toyota GB plc for a number of years on Information Systems solutions that span the
companys business applications portfolio.

The Problem

Toyotas Information Systems Methodology (ISM) and Information Systems Project

Methodology (ISPM) embody Toyota principles but they have not been institutionalised to
the same degree as processes used in other parts of the business.

In 2007, they introduced the IBM Rational Unified Process (RUP) to manage
Business and Software Architecture and application development. RUP in fact resembles the
Toyota Production System in many ways, with its focus on quality and team interaction and
its architecture-centric approach.

Toyota work closely with IBM Global Services to ensure that the Kaizen principle of
continuous improvement is applied to the management of its information systems. The
implementation of Agile methods in any organisation is challenging and the time before it
begins to produce positive results varies significantly, but is frequently measured in years
rather than months. Working with IBM, Toyota tailored Agile to suit the environment (a
prerequisite of any Agile adoption programme), but were having difficulties in
institutionalising the process due to limited experience and skills.

The implementation of Agile was further complicated by the need for it to operate
within the boundaries of ISM and ISPM which in effect provided the interface to Toyota
methods and the organisation in general.

Part of Toyotas philosophy is the concept of the Extended Enterprise wherein they
develop long term relationships with suppliers specifically targeted at mutual innovation.
Whereas this was an integral part of all business and manufacturing operations, it was
immature within information systems. This was a weakness, given a policy that it is better to
buy something of proven quality than to risk developing something new.

Toyotas first production pilot of Agile was the new Vehicle Management System
which 1Tech had been engaged to implement some 12 months into the project. At the time of
1Techs engagement the project was well behind schedule and over budget.

The Solution

1Tech's own Open Source Integration Methodology (1TechOSIM) is based on agile

methods and it soon became clear to Toyota that compared to their own implementation,

the method was mature and was additionally backed up by the skills of the 1Tech team.
1Tech were therefore asked to extend their engagement to mentor and train Toyota staff in

the efficient use of Agile.

1Tech identified the lack of methods to manage IS supplier engagement and the
introduction of third party components and proposed the adoption of the Evolutionary
Process for Integrating COTS-based Systems (EPIC), a methodology defined by the

Software Engineering Institute and generally considered to represent best practice.

Following a review of the current status of the ISM and ISPM methodologies with the
resident IBM Global Services team, 1Tech were asked to integrate all of the information
systems processes so that boundaries and interfaces were clearly defined and the whole
could operate as a single, seamless entity, accessible to all information systems personnel.

The Result

1Tech worked with project and programme management to reconstruct the critical
vehicle management system project, replacing the existing function-driven approach

with one that was risk driven and architecture-centric according to Agile principles.
This resulted in the identification of elements which represented the highest risk and
focused on the need to eliminate these risks early so that the effects they might have

on project timescales could be mitigated.

The number of elements with high architectural risk was significant due to the number
of interfaces to legacy systems which were needed. The development of instances of
each commenced immediately and the risks were either eliminated or, where major
problems occurred, the need to focus and reschedule effort on their resolution was

identified.
1Tech analysed the use of the four information systems methodologies (ISM, IDSPM,
RUP and EPIC) and produced a process architecture which integrated them into

effectively a single process.

The integrated processes, along with guidelines, templates and other supporting
materials, were defined and published by 1Tech as a web site for Toyotas intranet

using IBM Rational Method Composer, allowing each member of the information
systems community, whether acting in a project, support or management role, to
instantly see how they were expected to interact with their colleagues and the

processes they should follow.

1Tech developed custom training material and trained all information systems staff,
including senior management, via modular courses aimed at transferring skills
appropriate to the needs of each individual. This was supplemented by on-the-job

coaching, a technique which is itself a core Toyota philosophy.

Training customisation and delivery, and process analysis, tailoring and integration,
were completed within 3 months.
Conclusion
Implementing a major new approach, such as an agile project delivery methodology,
is a huge task for any organisation and requires a properly managed change
programme in its own right. Integrating it with other processes at the same time
magnifies the risk and the associated effort. By harnessing 1Techs extensive
experience in these areas and their ability to produce pragmatic solutions, Toyota were
able to radically reduce the time needed to realise benefits, whilst improving staff
motivation by giving team members more control over and insight into the tasks for
which they were responsible.

Conclusion:
With all this I conclude that planning for human resource is very important for a
company in order to be successful in future.

Reference:

www.google.com
www.1tech.eu
www.referenceforbusiness.com
www.toyotamanagement.wordpress.com

www.web1.net