Toyota Compensation and Benefits
Trends in Human Resources Management
Instructor: John Devellier
Toyota Motor Corporation has never faced an issue with their employee compensation and benefits packages. Part of their philosophy has been people are their greatest asset and they treat them as such by paying them a good salary and empowering their employees. How can they attract top talent? Well even the top executives at Toyota do not make a seven figure salary. Wages are determined with a fair market value in mind, but it is the “me” versus “we” attitude that drives Toyota's success.
Describe the formal pay structure within the organization.
Toyota has long marched to a different drummer when it comes to wages and compensation. Now with the economy turning upside down, Toyota has been forced into cost cutting measures to align hourly wages more closely with state manufacturing wages of where the plant is located. They have always followed the policy of pay your employees well and they will perform better and be more productive, but also promote a policy of equal payment for each job.
Describe any benchmarking activities undertaken by the organization. Include information as to whether the organization offers a competitive compensation structure. Describe incentives offered by the organization.
You can take a page by the introduction of the Toyota Way to employees in the Camry Plant of Kentucky (Kentent, 2009). Initially high wages allowed Toyota to hire the cream of the crop. Daily, monthly and yearly goals were outlined for each department and offered a bonus system if goals were achieved. The bonus was distributed to each member regardless if a profit was made and not by individual performance thus enhancing the team concept. The company used also non-monetary awards, as letters of "thank you" from the president, recognition...
Please join StudyMode to read the full document