Introduction
The purpose of this proposal is to have a better analysis on the Toyota Company in the United States of America. As a Human Resources Manager, I have a particular role to look into this problem with a view to creating a good working environment in the company. Using information from a few hundred open associations accumulated over a nine-year time period, we test the suggestion that the right level of employee turnover may emphatically influence hierarchical execution.In this process, factual finding of the problem is done that will persistently identify the executional aspects of the company’s objective.
What is the problem you have identified? Why is it a problem? Give specific examples of the problem occurring
The problems that exists in Toyota, USA is that it faces a high rate of employee turnover per year which leads to reduced staff productivity, and this in turn had an adverse impact on the organization's effectiveness. When the employee of a company leaves an organisation, the remaining employees have to cope with the vacancy until a new representative is appointed to fill the vacant position. Employee turnover affects the staffs’ performance because the daily work schedule gets disturbed (Tucker, Heisler & Janisse, 2013). Consequently, the company is forced to set aside huge amount of resources to facilitate the recruitment and training process of new employees each year owing to the high rates of employee turnover. Also, there have been frequent complaints from the public regarding the poor performance of staff at the various departments of Toyota USA. There are various underlying examples of instances that influence poor performance of employee at the company and consequently, leads to high employee turnover. First, the managers tend to believe the applicant's resume without much introspection. Secondly, to save the money spent on training, some of the necessary criteria are often overlooked. Thirdly, the management assumes that if employees are sent on training, then they are trained. Finally, employees do not have essential support from the management head (Mathis, 2004).
Who are the persons or groups most affected by this problem? Give the specific name or names of the reader for the proposal (The reader is the person/persons who can make the change).
The management board of the Toyota Company is affected the most due to the high rate of employee turnover. This proposal is for the human resource manager of the company as he is in a position to take decisive action regarding the problem at hand.
What does your reader value the most? For example, does your reader value efficiency? Profit? Accuracy? Environment? Consistency?
The reader (in this case, the human resource manager of Toyota, USA) values efficiency and the need to realise a profit, along with the importance of creating an environment conducive for working, in which employees feel comfortable and can be productive.
What attitudes does your reader harbor about the problem?
The reader i.e. the HRM is very conscious of the problem and is willing to deal tactfully with the situation. After a thorough assessment of the problem, he intends to bring about the necessary changes that will enable the company overcome this perennial problem of employee turnover.
What is your proposed solution? Provide some preliminary research-based evidence supporting your solution..
Following an analysis of the problem facing the company several recommendations have been made in the hope of diminishing the impact of the problem identified. This problem of employee turnover can be managed by implementing the following suggestions:
• To minimize the impact of employee turnover, the management first needs to avoid or minimize the employee turnover (Hissom, 2009).
• On the issue of minimizing the rate of employee turnover and its impact on the performance at the company, the management should consider the root cause of this problem so as to develop a lasting solution to it.
• Toyota should properly review the salary packages of their employees in order to avoid the high rate of employee turnover and its undesirable impact on the growth and performance of the company.
• As a means of dealing with the problem identified, the management should consider implementing such strategies as encouraging the company's employees to participate in decision making, giving promotions, sharing of benefits based on performance, and giving clearance for employee career advancement through training programs. These measures are geared towards increasing the retaining rate of employee and hence diminishing the impact of high employee turnover (Buzeti, Klun & Stare, 2016). The graph provided below showcases the turnover trend in Toyota, USA.
Here is the turnover trend information:
• In 2008, the voluntary turnover rate was 12.5%, while the total turnover rate was significantly higher at 18.7%.
• In 2009, both rates decreased, with voluntary turnover dropping to 10.4% and total turnover falling to 16.3%.
• The downward trend continued in 2010, where voluntary turnover declined to 9.2%, and total turnover slightly decreased to 15.9%.
• By 2011, voluntary turnover reached its lowest point at 9.1%, while total turnover also dropped to 14.4%.
• In 2012, voluntary turnover started increasing again, rising to 9.8%, while total turnover also climbed to 15.2%.
• The following year, in 2013, voluntary turnover continued to rise to 10.4%, though total turnover slightly decreased to 15.1%.
• Finally, in 2014, voluntary turnover reached 11.0%, and total turnover increased to 15.7%.
This data shows an initial decline in both voluntary and total turnover from 2008 to 2011, followed by a gradual increase in voluntary turnover and fluctuations in total turnover from 2012 onward
The above figure rate of Employee Turnover of Toyota (Comparison of Voluntary resignation with overall turnover from 2008-2014)
• The management should consider giving excellent terminal benefits to its employees and also give them a competitive pension plan.
• The management at Toyota creativity should be smooth and favourable in inter- personal relationships from an informal group for ensuring effectiveness to be carried out by each employee of the institution.
• The management should consider recruiting young professionals who have an innovative mindset and providing them with the training materials and personnel needed to ensure that they are a real asset to the company.
• The top management of Toyota USA should select a capable management team who are committed to abandoning employee's turnover in the institution.
• Effective communication in the workplace is an essential component for the proper execution of activities and the accomplishment of the set goals. In this regard, the management at Toyota USA should ensure that they adopt an effective means of communicating with employees so that their grievances can be heard and attended to in a timely manner. This demands that the management adopt a polite and effective means of communicating its intention, programs and benefits to the employees (Ton & Huckman, 2008). Lack of communication indirectly leads to financial loss of organization which is shown in the chart provided below.
Here is the net revenue trend:
• In the early years (1984-1987), net revenues showed a steady increase, reaching around 10 million yen.
• Around 1990, the growth slowed down, and there was a slight decline in revenue during the early 1990s.
• By the mid-1990s, revenues started recovering, with a noticeable increase around 1995.
• From the late 1990s to the early 2000s, net revenues maintained an upward trend, steadily increasing year after year.
• In the early 2000s, particularly from 2002 onwards, revenue growth accelerated significantly.
• The peak was reached around 2005 (Fiscal Term 104), where net revenues exceeded 25 million yen.
• After this peak, there was a sharp decline around 2006 (Fiscal Term 105-106).
• From 2007 to 2010, net revenues stabilized but remained lower than the peak, fluctuating around 17-20 million yen.
This trend suggests a period of strong growth followed by a sudden decline and eventual stabilization in later years.
Figure 2: Loss suffered by Toyota, USA due to high rate of employee turnover
What does your reader need to know to implement the solution?
If at all the proposed solution is to be implemented successfully, it is important that the reader be fully cognizant of the exact problems and issues hampering the efficiency and output of the organisation and in particular, how the issue of employee turnover affects such development. This way, the reader would be best placed to adopt appropriate measures that will in turn ensure that the solution is implemented accordingly.
Explain how your solution is in step with the needs of, values of, and attitudes of your reader? Explain.
Turnover is an urgent issue for the management of any organisation. In order to ensure steady productivity of an organisation, it is important that the management maintains a talented workforce. Additionally, such a workforce should possess values that are in line with the culture of the organisation. This is best captured while recruiting employees and the onus is thus on the human resource department to ensure that they recruit a suitable workforce. However, even after putting in place the most suitable workforce that will enable the organisation realise its set goals, it is not easy to control employees’ turnover. There are various components that influence employee turnover, which in turn affects their productivity, the type of service given to customers, organisational procedures and development. Most Toyota USA employees face tough challenges along these lines. The recommendation section has delineated various solutions for reducing employee turnover. Most importantly, a satisfactory pay structure diminishes employee turnover, but employer stability is also a vital issue. Nonetheless, it is not by all accounts the only dependable solution for the organistion. An employee does not remain in an organisation just for the pay but rather he or she must stay there for other reasons as well.
References:
Buzeti, J., Klun, M., & Stare, J. (2016). Evaluation of measures to reduce employee turnover in Slovenian organisations. Business Administration and Management.
Hissom, A. (2009). Understanding and controlling employee turnover. Human Resource Management.
Mathis, K. (2004). 7 Reasons Employee Performance Is Bad. The Mathis Group, Inc.
Ton, Z., & Huckman, R. (2008). Managing the Impact of Employee Turnover on Performance: The Role of Process Conformance. Organization Science.
Toolkit for the Management of Poor Performance in the Public Service. (2007). Public Service Commission.
Tucker, A., Heisler, W., & Janisse, L. (2013). Organizational Factors that Contribute to Operational Failures in Hospital. Harvard Business School.
