Crash at Toyota HR Crises

(HRM Project Proposal)

Abstract: Toyota had recalled roughly 9 million vehicles worldwide since 2009. The main concern of the recall of
these vehicles is because of current HR policies in Toyota Motor Corporation such as:
1) Reward system in place rewarded the managers for cost containment instead of sustaining product
quality.
2) Overall corporate culture was flawed resulting in lower level managers concerns being ignored by
upper management.
3) Toyota failed to perform and implement proper workforce planning to ensure the right number and
type of personnel.
Objective:The intention of this study is to look into problem that Toyota is facing because of HR policies, analyze
them and provide a feasible solution.
About Toyota: - Toyota Motor Corporation was founded in 1937 by Kiichiro Toyoda. It is an automotive
manufacturing company whose headquarters is located in Toyota, Aichi, Japan. It has branches located in
a significant number of countries worldwide. It employees more than 338,000 workers worldwide and has
produced more than 200 million vehicles. It is the first automobile manufacturer to produce more than 10
million units in a year.
How did we arrive at the problem: - Toyota being one of the largest automobile producers (in terms of
sales units) and one of the most reputed brands around the world in terms of quality of production, we
were curious to find out if such a successful company had any major flaws in their system. So we
encountered this crises faced by Toyota where a major recall of vehicles took place majorly due to HR
Policy flaws. According to BusinessWeek estimates, Toyota has lost $155 million per week as a result of
their continuous recall and Toyota had lost nearly $30 billion in stock valuation during 2009-10.
Methodologies to solve the Problem: We will primarily work on secondary data. The data collection will be through web sources. We will go
through the existing HR policies of Toyota Motor Corporation and other MNCs. The outcome of this
research is to provide a feasible solution to encounter existing flaws in HR policies.