Organizational Analysis on Toyota
April 16, 2011
Toyota Motor Corporation is an automobile manufacturer company headquartered in Japan. Toyota has created automobiles since 1930's, employing over 317,000. Toyota has experienced several challenges in the past few years. If you have watched the news you have seen or heard about the mechanical issues that Toyota automobiles have faced leading to a massive recall on their cars. Their reputation was damaged due to poor handling of issues that the public witnessed, bringing a decline in sales. The issues that Toyota faced on eight of their models were due to human resource professionals producing faulty accelerator pedals, computer problems and product design. Employees unsuccessfully failed to perform the job as well as management not giving the proper training. Ultimately, human error was the root cause of the problems that Toyota faced. Having a weak human resource department causes problems in any company, especially when you are making a product for consumers. In Business Week projected that Toyota is losing an astonishing $155 million dollars per week from the recalls and over $30 billion in stocks. ( citation) The impact has cost the company billions. Management was aware of the mechanical issues, but hide the problem to keep Toyota's brand in tack. Also, the organization rewarded managers because they kept cost down than having product quality. This created big incentives for management to overlook the problems that existed. Employees failed to make the right decision concerning the issues and problem, taking abrupt action and examining the HR processes that influenced the decision of staff employees and management. There are several process that need to considered such as training, performance, hiring and rewards. Toyota needs to handle their reward processes by encouraging the right attitude and behavior in their...
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