Toyota Compensation and Benefits

Toyota Compensation and Benefits Trends in Human Resources Management Teresa Hall U8a1 Instructor John Devellier Toyota push back Corporation has never faced an issue with their employee remuneration and benefits packages. Part of their philosophy has been people are their greatest asset and they treat them as such by supporting them a good salary and empowering their employees. How derriere they attract top talent? Well even the top executives at Toyota do not crap a seven figure salary. Wages are determined with a fair market value in mind, but it is the me versus we attitude that drives Toyotas success.Describe the formal pay structure within the cheek. Toyota has long marched to a variant drummer when it comes to earnings and compensation. Now with the economy turning upside down, Toyota has been forced into cost cutting measures to align periodic wages to a greater extent closely with state manufacturing wages of where the plant is located. They have always followed th e 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 genus Phallus regardless if a profit was made and not by individual performance thus enhancing the police squad concept.The company used also non-monetary awards, as letters of thank you from the president, citation on Toyota publications, and daily recognition from their peers and supervisors. On e of the highlights of the Camry plant was to build a gym, cafeteria and a nursery for the children of the employees. The upper management also does not have special parking places or any other perks to enhance the feeling of equality with their blighter employees. Describe any profit sharing, stock ownership programs that are available.While owning part of the company is not an election for most Toyota employees, profit sharing is with the gains consistently being passed on to workers throughout the years (Miller & Novak, 2008) often qualification Toyota employees the highest paid workers in the automaker industry. Describe how benefits are communicated to employees. Benefits are communicated to employees on their day of hire with the Toyota handbook which explains company policy wages, benefits, health care packages, retirement and pension plans and the company mission.Also included is the (Toyota, 2003) Toyota mindset of Kaizen, unbroken improvement and employee respect. Des cribe any problems associated with compensation policies of the organization. Some of the problems associated with compensation result in the low wages paid to employees versus other automakers. Initially Toyota offers high salaries in an effort to attract the best talent, but at that place it ends. Even top executives in Toyota rarely receive more than a seven figure salary. by and by all the training and development Toyota puts into its employees, some can be wooed away from other companies with the promise of more money.Describe the environmental factors that have influenced compensation and benefits of the organization. Toyota believes in green and that is passed on to its employees by making them socially apprised of establishing a low carbon society. There is no waste of any kind at Toyota and sometimes that means eliminating positions and tasks that may potentially harm the environment. But that does not mean that the employee is discarded along the way. They are just retr ained into another job.Describe any current issues faced by the organization as they relate to compensation and benefits. The current recession has made Toyota consider the unthinkable for them and that is laying people off. In previous articles this has never been an issue for Toyota as people are their most valuable asset. They have managed to avoid it thus further by reducing man hours, moving people to different operations and rethinking their benefit packages. They are in favor of tailoring an individual benefit plan instead of offering the comprehensive group plans they forthwith offer.References Kentent. (2009). Toyota production system. Retrieved from http//kentent. hubpages. com/hub/Toyota-Production-System Miller, J. , & Novak, V. (2008, December 11). Auto worker salaries. Retrieved from http//www. factcheck. org/2008/12/auto-worker-salaries/ Toyota. (2003). Toyota environmental and social report. Retrieved from http//www. toyota. co. jp/en/environmental_rep/03/jyugyoin0 3. html Toyota. (n. d. ). Toyota take corporation. Retrieved from http//www. toyota-global. com/sustainability/environmental_responsibility/