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Write a report that assesses an organization’s people practices and employee engagement levels and recommend a number of initiatives that aim to improve employee engagement. Your report should be based on appropriate theory and research?
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With the increasing globalisation and technological advancement in a dynamic environment, creativity and innovation play a crucial role in the long term sustainable development of an organisation. To achieve organisational goals, HR system plays an important role in facilitating and communicating the goals of creativity. It has been observed that several organisations have failed to sustain in the ever-increasing competitive global market due to poor HR practice (Boon et al. 2011).
An organisation needs to enhance its HR policies/strategies with changing market dynamics. Companies over the period of time have come out with different HR strategies, and HRM has evolved from ‘carrot and stick approach’ to offering stock options to employees, flexible work timings, a global staffing and the latest being, big IT companies moving away from the bell curve model for employee appraisal. As the business environment is continuously changing, companies are altering/improving their human resource policies (Kapoor 2011).
Employee engagement is one another factor which affects the organisational outcomes which have a statistical relationship with the profitability and productivity of any company, retention of employee, safety and satisfaction level of customer (Little & Little 2006). Under human resource management, the extent of employee engagement has emerged as one of the key parameters in gazing the effectiveness of HR practices in the organisation.
Traditionally, research in the field of HR management has been limited to ascertain and to find out the impact of people management on improvement in the performance of a company (Truss et al. 2013). However, more recently, the focus has also shifted towards the relationship between a company’s performance and employee engagement (Truss et al. 2013) . It has been suggested that employee engagement could be the mechanism due to which people management strategies have an impact on the employees as well as the performance of the company (Truss et al. 2013).
With the above background, the present report attempts to evaluate the HR practices and the level of employee engagement is a big Multi National Company, 'Toyota Motor Corporation'. The impact of faulty HR policies of the company is discussed, concluding with specific suggestions/recommendations for improving employee engagement in the organisation.
Toyota Motor Corporation is Japan's biggest car manufacturing company founded in 1937. Although Kiichiro Toyoda, founder of Toyota, began manufacturing of Toyota Automobiles in 1933 under the unit Toyota Automatic Loom works (Toyota Motor Corporation n.d.). The headquarters of the company is located in Toyota, Aichi, Japan. Toyota Motor had a tough fight in establishing itself. Toyota had to compete with brands like General Motors and Fords because the car market of Japan was dominated by imports from American. Toyota is the first automobile manufacturer to produce more than 10 million units in a year (Nkomo 2014).
As one of its HR strategies, Toyota Motor Corporation employed high school graduates to fit with the culture of Toyota instead of recruiting qualified professionals. Such strategy ensured internal career path and lifelong employment for the employees, which in turn resulted in the loyalty of the employees towards the company (Liker & Meier 2007).
However, by the end of 2009, when most of the other car manufacturing companies were making a healthy profit, Toyota was struggling with a quality problem resulting in recalls of its sold products (Camuffo & Wilhelm 2016). One of the reasons for the said quality problem was the failure of Toyota in implementing its HR strategy of good internal career path, lifelong employment and resultant loyalty of employees in its overseas operations (Camuffo & Wilhelm 2016).