The University of the South Pacific

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Pacific TAFE

EMPLOYEE RELATIONS
Sharing the TOYOTA Way
Employee Relations
Employee relations has replaced
industrial relations as the term for
defining the relationship between
employers and employees. Today,
employee relations is seen as
focusing on both individual and
collective relationships in the
workplace, with an increasing
emphasis on helping line managers
establish trust-based relationships
with employees.
TOYOTA WAY
The Toyota Way 2001
clarified the values and
beliefs that all employees
should embrace in order to
carry out the Guiding
Principles at Toyota
throughout the company’s
TOYOTA WAY
However, the rapid
growth, diversification and
globalization of Toyota in
the past decade have
increased the scope of its
manufacturing and
marketing presence
throughout the world.
TOYOTA WAY
Toyota is preparing to
operate as a truly global
company, guided by a
common corporate culture,
and has identified and
defined the managerial
values and business
methods that are known
Two Pillars
The Toyota Way is supported by two
main pillars:

1. “Continuous Improvement” and

2. “Respect for People.”

Toyota is never satisfied with where

they are and always work to improve
their business by providing ideas and
best efforts.
Two Pillars

They respect all Toyota

stakeholders, and believe the
success of Their business is
created by individual efforts
and good teamwork.
Two Pillars
All Toyota employees, at every level, are
expected to use these two values in their
daily work. Since 2002, Toyota has
adopted the Toyota Way for each
individual function, including human
resources, accounting, and overseas sales
and marketing, and has been working on
ensuring thorough implementation.
Toyota Institute
Toyota established the Toyota
Institute in January 2002 as an
internal human resources
development organization that aims
to reinforce

the organic integration of

global Toyota companies by
way of sharing the Toyota
Way.
Toyota Institute
From its establishment up to the end of
2004:

 more than 1,500 employees have

received training at the Institute
 including approximately 600 from
overseas affiliates.
Toyota Institute
In addition, since 2003:

overseas affiliates in North

America, Europe, Asia, and
Africa have established their
own human resources
training organizations to
promote a better
Communication with
Employees
Toyota sees good communication
as the basis for all activities. In
addition to communication in the
workplace.

Toyota has created numerous other

opportunities for discussions
between labour and management
including Labour-Management
Councils, Joint Labour-Management
Communication with
Employees
Toyota has established a number of
hotlines:

for swift and appropriate

resolution of issues related
to compliance, gender
harassment, mental health
and working conditions.
Communication with Employees

Further, Toyota implements

employee morale surveys and
monitors employee job
satisfaction, etc.
Communication with Employees
In a survey conducted in 2004,
responses were received from 83% of the
approximately 19,000 employees that
were surveyed. Positive responses such
as
“I’m proud to work at Toyota” and
“I’m satisfied with my working
conditions” continue to be at high
levels.
Communication with Employees’
Families

 Since 2002, greeting cards from

the president have been sent to
employees and their families at
the end of the Toyota also created
the Toyota Fami-net, a family
oriented website, and is taking
other measures to enhance
relations with employees’ families.
Communication with Employees’
Families

o Since 2002, greeting cards from

the president have been sent to
employees and their families at
the end of the year.
Communication with Employees’
Families

Since 2003, various work sites

have held workplace visits for
families to facilitate
communication between the
workplace and home.
Respect for Diversity and Creating a Sense
of Unity
With the globalization of business, the social
advancement of women, and other social
changes:

diversity in human resources

(nationality, gender and other
differences) can enhance a
company’s competitiveness.
Respect for Diversity and Creating a Sense
of Unity

Aspiring to be a company that is an

attractive arena of self-realization for
a diverse range of human resources,
Toyota respects diversity and works to
create a sense of unity.
Respect for Diversity and Creating a Sense
of Unity
Since 2002 Toyota rolled out the
Diversity Project with particular
emphasis on promoting active roles
for women, and made a three-
pronged effort to:
Help enable women to work and
raise children at the same time
Assist in women’s career building,
and
Childcare Centers and
Number of Staff Taking
Childcare
As a measure to support employees
balancing work and childcare, a childcare
center was opened in 2002, followed by
the addition of another facility in 2003,
bringing the total capacity to 100
children.
Childcare Centers and
Number of Staff Taking
Childcare

The number of employees

taking childcare leave is
also increasing.
The number of male
employees who have taken
childcare leave have
Labor-Management Relations
Based on Mutual Trust and
Respect

Mutual trust and respect

between labour and
management is a fundamental
principle of Toyota’s employee
relations, as stated in the
Labor-Management Relations
Based on Mutual Trust and
Respect

Following a labour dispute in

1950, mutual trust between
labour and management was
adopted as the foundation of
the Labour Management Joint
Declaration concluded in 1962.
Labor-Management
Relations Based on Mutual
Trust and Respect
Also, the Labour-
Management Resolve for the
21st Century signed by
labour and management
representatives in 1996,
indicates the basic principle
Labor-Management Relations
Based on Mutual Trust and
Respect
In order to achieve this
fundamental principle in labour
management relations, Toyota
has adopted the Basic Principles
of Human Resources
Management, and continuously
works to strengthen its labour-
Stable Employment
Stable employment that
avoids layoffs and
terminations to the maximum
extent is a key pillar
supporting the relationship of
mutual trust between labor
and management.
Stable Employment
In addition, the Toyota
management system is based
largely on maximizing employee
abilities, reasoning skills, and
creativity, and human resources
are regarded as a key
management asset. The layoff
and termination of human
resources, not only damages the
relationship of trust, but also
Stable Employment
The fundamental basis of
Toyota’s management
philosophy is to always take a
medium- to long-term
management perspective and to
maintain stable employment
through all possible measures.
Human Resources Development
Framework that Emphasizes
Problem Solving

The three main points of human

resources development for office and
engineering positions are:

(1) Thorough training in problem

solving during the first ten years,
until promotion to the post of
assistant manager
Human Resources Development
Framework that Emphasizes
Problem Solving

(2) Training is an opportunity to

trigger development of human
resources; but stronger emphasis
should be placed on on-the-job
training (OJT); and

(3) Selected employees act

Long-term Contracts Offered
to Contract Employees
A revision of the law in 2004
extended the maximum contract
length for temporary employees
from one year to three years.
Many contract workers want to
find work that is more stable and
offers a better sense of
Long-term Contracts Offered to
Contract Employees
In a survey carried out in 2004, it was
found that 62% of respondents were
interested in acquiring specialized skills
and knowledge. Toyota is engaged in
improving working conditions, not only in
order to secure human resources who will
serve as a strategic force, but also to
improve the employment prospects for
temporary staff after the end of their
Employment of Disabled
People
March 2005, Toyota
employed 832 disabled
people, and its disabled
employees ratio* reached
1.84%, exceeding the 1.8%
Employment of Disabled
People
Toyota believes in helping
disabled people achieve
autonomy within society,
and makes it a basic rule to
have them work together
Employment of Disabled
People
Consequently, disabled
employees can be found in many
kinds of positions at various
workplaces. At each business
site, efforts are made to create a
workplace environment that is
safe and easy to work in by
Employment of Elderly
Workers

Regarding the best approach to

work arrangements and
employment once staff reach 60
years of age, labour and
management at Toyota have
undertaken repeated discussions
and investigations with the aim of
taking active initiatives in the
Mental Health Care
Regarding mental health at
the workplace, all of the newly
appointed managers and
supervisors participate in
active listening courses that
are effective for the
prevention and early detection
Mental Health Care
In 2004, this system was
extended to include newly
appointed division general
managers, and training
sessions were given to
include department general
Mental Health Care
Also, as part of a self-care approach,
mental health care measures for
individual employees were enhanced
through self care training, stress
management methods, and other
measures. Through these activities,
Toyota aims to create a workplace
environment with better
communication in the future.
THANK YOU