Toyota Motivation Case Study

860 Words 4 Pages
Rewards sometimes have a negative effect on employees’ behavior. Often the competition between employees may become unhealthy. Everyone is trying to achieve results in a very high speed, which can lead to accidents, especially in manual labor. Monetary rewards may lead to the obsession of employees with money, to the development of unfriendly behavior towards others and preoccupation with quantity rather than quality of the product. That’s why employers must carefully reflect upon the consequences of rewards and test incentives in a pilot program before applying them across the organization.


The research aims at explaining how Japanese-managed organizations use different rewards in order
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We must underline that managers in TMM don’t have the privilege to enjoy extra facilities. In addition to that, all staff must wear the same uniform, and everyone is called by their first names, except the president. Among the employees, the most important reward in job security. Even though it is unwritten, workers in Toyota enjoy a lifetime employment commitment. Toyota’s policy is that the company has to respect and look after the workers. For instance, if someone gets injured, the company doesn’t discard them. The example of an alcoholic employee that instead of being fired by the company was helped to get into a rehabilitation program proves that even though Toyota is not legally forced to look after the employees in such a way, they simply do it. Training and promotion opportunities are also very popular among rewards. Equally important are some psychological benefits that are provided to employees. Specific procedures provide recognition and positive feedback to employees, when they have their job nicely done. For example, TMM honors exceptional employees with plaques and public congratulations in ceremonies, announcements and publications. Such practices truly motivate employees as it is proved by the numerous examples. One of them is the fact that team members show up to work 15-30 minutes before their starting time, without being obliged to do so. This has evolved because they enjoy to socialize and are motivated to do their best, because eventually being part of Toyota’s group has become their everyday life. The method Toyota uses is that it convinces workers that it is in their best interest to achieve certain goals. So this study helps us understand how team work and community of fate affect the goals and the purpose of organizations. Thus, we conclude that Toyota has created a unique reward package and through equal pay, job security,

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