Scribd
Upload
24 views

Looking Beyond Gas Pedals-How Human Resources Lead To Toyota's Failure

Uploaded by

Muskan Manchanda
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
24 views

Looking Beyond Gas Pedals-How Human Resources Lead To Toyota's Failure

Uploaded by

Muskan Manchanda
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Case

Looking Beyond Gas Pedals- How Human Resources Lead to Toyota’s Failure
Toyota today is riddled with quality problems. Quality was once the pride USP of this
company. The problem reached to such a critical level tha thte company had to recall almost
9 million cars worldwide. Obviously, this led to significant lowering of the brand value of the
company, and drop in sales. John Sullivan (2010) attributes such failure of Toyota to poor
HRM function of the company. Sullivan added that while hull design flaw contributed to this
catastrophe, the root cause of the problem was human error. Human error at times caused for
factors which could be beyond the control of employees. It cascades for the actions of the
senior management. People at operations level may have inadequate information and poor job
training.
Toyota’s poor HR practices, which Sullivan classified under eight categories, attributed to
such mechanical failure, causing recalling of their supplies. Such HR practices are: reward
and recognition, training, hiring, performance management process, corporate culture,
leadership development and succession, retention and risk assessment. In all these HR
practices, the company failed to integrate with the business goals. Moreover, HR decisions
were not backed with data, rather it were in accordance with the existing systems and
standards. Hence systematic failure of management contributed to quality problems and
subsequent recalling of cars, resulting several billion loss to the company. With data-driven
HR decisions, HR managers could have been more analytic and predictive in foreseeing such
problems and warned the top management.
Question: In the context of this case study, do you think Toyota could make a difference with
HR analytics? Elucidate your answer.

You might also like