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Engaging with Employees<br />

Takashi Karasawa<br />

Vice-President Human Resources<br />

& Business Services<br />

Stable Employment<br />

We have made every effort to maintain stable employment<br />

for our permanent employees. The step-<strong>by</strong>-step approach<br />

that we introduced in FY08 to minimise <strong>the</strong> impact <strong>of</strong><br />

required cost reductions continued in FY10, in addition to<br />

some <strong>of</strong> <strong>the</strong> structural changes, such as limited recruitment<br />

and minimising overtime:<br />

We continued a limited ratio <strong>of</strong> “work-sharing” in <strong>Toyota</strong><br />

Motor Manufacturing Turkey (TMMT), where labour cost was<br />

reduced with a commensurate reduction in working time<br />

In <strong>Toyota</strong> Motor Manufacturing UK (TMUK), we needed to align<br />

our production capacity to demand, and <strong>the</strong>refore stopped<br />

one production line. To adjust <strong>the</strong> headcount, TMUK initiated<br />

its second voluntary separation scheme, where approximately<br />

850 members chose to leave. This necessitated a massive<br />

multi-skill training initiative to allow every team member who<br />

opted to stay to gain <strong>the</strong> skills to work on <strong>the</strong> operational line<br />

In <strong>Toyota</strong> Motor Europe a voluntary resignation programme<br />

was also introduced and approximately 200 members opted<br />

to fi nd external opportunities.<br />

To a limited extent, some <strong>of</strong> our NMSCs also optimised <strong>the</strong>ir<br />

organisations, while ensuring thorough communication with<br />

<strong>the</strong>ir members.<br />

Employee Communication<br />

In all <strong>the</strong> European countries in which we operate, we adhere<br />

to European and national legislation. In line with this, employee<br />

representation bodies are in place to inform and communicate<br />

within <strong>the</strong> framework <strong>of</strong> social dialogue based on mutual trust,<br />

Despite <strong>the</strong> fact that we are in our third year <strong>of</strong><br />

this crisis, we take pride in <strong>the</strong> fact that we have<br />

made every effort to maintain our ideology and<br />

values on how we treat our employees. While<br />

we were again forced to reduce some <strong>of</strong> our<br />

headcount, we continued to work hard to try and<br />

achieve this through voluntary means, supported<br />

<strong>by</strong> effective communication.<br />

respect and responsibilities. Regular information sharing and<br />

required consultations with European and national bodies<br />

contributed to <strong>maintaining</strong> <strong>the</strong> relationship and ensured<br />

understanding <strong>by</strong> employee representatives on <strong>the</strong> business<br />

situation and company’s position.<br />

In line with <strong>the</strong> agreement with our European Works Council,<br />

which is called <strong>the</strong> <strong>Toyota</strong> European Forum (TEF), additional<br />

meetings were convened to discuss <strong>the</strong> various business<br />

issues in our European operations.<br />

Under <strong>the</strong> continuing severe business and economic<br />

conditions, it was critical to communicate with all our<br />

employees in an open and timely manner. On several<br />

occasions face-to-face meetings were organised between<br />

<strong>the</strong> company management and employees to explain critical<br />

business issues and company decisions. Pan-European<br />

employee briefi ngs were held throughout <strong>the</strong> year to ensure<br />

consistent and thorough communication with all European<br />

employees.<br />

Employee Motivation Survey<br />

Takashi Karasawa<br />

One <strong>of</strong> <strong>the</strong> ways we monitor and measure employee<br />

engagement is through our employee motivation survey. The<br />

survey is conducted every two years and includes all our<br />

European affi liates. While NMSC employee engagement was<br />

relatively high and in line with high performing benchmarks,<br />

this was not achieved in <strong>the</strong> manufacturing plants and <strong>the</strong><br />

head <strong>of</strong>fi ce, where a dip was seen against <strong>the</strong> 2008 results.<br />

The results were communicated to employees and in line<br />

with local practice and requirements, working groups or<br />

management workshops were established to develop action<br />

plans to address <strong>the</strong> identifi ed issues. As a result <strong>of</strong> <strong>the</strong><br />

motivation survey, numerous changes have been introduced<br />

in <strong>the</strong> areas <strong>of</strong> communication, training and HR systems.<br />

<strong>Toyota</strong> European Sustainability Report 2011 I Social Performance<br />

47

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