ASSIGNMENT 3:

“HOW DO ORGANIZATIONS MANAGE DIVERSITY AND

MOTIVATE DIFFERENT TYPES OF EMPLOYEES”

COURSE:
ORGANIZATIONAL BEHAVIOR

SUBMITTED TO:
MADAM ERUM KHATAK

SUBMITTED BY:
SAWERA HAIDERY
KASHAN PIRZADA
ASIF ABRO
ASADULLAH SHAIKH

MBA – 2A

22ND APRIL, 2008

BAHRIA UNIVERSITY
(MANAGEMENT SCIENCES)

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 TOYOTA INDUS MOTOR COMPANY LIMITED
Indus Motor Company Limited is a joint
venture between the House of Habib, Toyota
Motor Corporation, Japan and Toyota Tsusho
Corporation, Japan, for assembling,
progressive manufacturing and marketing of
Toyota vehicles in Pakistan since July 01,
1990. The company was incorporated in
Pakistan as a public limited company on
December 17, 1989 and started commercial
production in May 1993. The shares of
company are quoted on the stock exchanges of
Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in
the company equity. The majority shareholder is the House of Habib with 50 % of the
equity. IMC's production facilities are located at Port Bin Qasim Industrial Zone near
Karachi in an area measuring over 105 acres. The company has now a workforce of more
than 1500 employees.

The company is the sole distributor for all Toyota vehicles. Apart from Toyota it is also
manufactures Daihatsu vehicles in Pakistan. Toyota's corporate philosophy revolves around
customer satisfaction, which is symbolized in its pioneering “3S” concept in automobile
industry i.e., Sales, Service, and Spare Parts available under one roof.

COMPANY’S MISSION STATEMENT:

“To be the most respected and successful enterprise, delighting
customers with a wide range of products and solutions in the
automobile industry with the best people and
the best technology.”

In a nutshell the company’s objective is to have:

“Action Commitment Teamwork for

becoming #1 in Pakistan”

CORE VALUES OF IMC:

➢ Customer Satisfaction.

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➢ Product Quality.
➢ Employee Care.
➢ Teamwork
➢ Ethical & Honest Practices.

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DEFINING THE WORKFORCE DIVERSITY
The workforce diversity is the heterogeneity or diversification in the employees in an
organization on the basis of certain demographic characters, such as race, age, gender,
ethnicity, religion, nationality, etc. Nowadays workforce diversity encompasses anyone
who varies from the so-called norm. Therefore in addition to the above mentioned groups,
the diversification in employee workforce can also be analyzed on the basis of marital
status and tenure.

MANAGING THE WORKFORCE DIVERSITY:

Now with the changing environment and more awareness of personal rights throughout the
world, we realize that the employees do not set aside their cultural values and lifestyle
preferences when they come to work. The challenge for today’s organizations, therefore, is
to make themselves more accommodating to diverse groups of people by addressing their
different lifestyles, family needs, and work styles. Thus, the shifting from the traditional
management practice of treating everyone alike, towards recognizing the differences
present in the workforce and responding to, but not discriminating those differences, is of
major importance to the managers of today. It can ensure employee retention, greater
productivity, increase creativity and innovation, improves decision making by different
perspectives of Diversified workforce.

MOTIVATION AS A TECHNIQUE TO MANAGE THE

WORKFORCE DIVERSITY:

Motivation is the willingness to exert high levels of effort toward organizational goals,
conditioned by the effort’s ability to satisfy some individual need. It plays a vital role in
managing the workforce diversity in order to achieve the organizational goals. Thus by the
knowledge of the wide range of the motivational theories, the managers are able to
properly understand the individual needs of the employees and can also use them for
handling the diversification issues in the organization.

WORKFORCE DIVERSITY IN TOYOTA

(PAKISTAN)
In Toyota, although the workforce diversity is encouraged as it brings creativity,
competitiveness and healthy environment, but here only the diversity is to be seen in terms
of gender (male/ female), and to some extent geographical (linguistics), beliefs (religion
and sect) and marital status (married/ unmarried). The age-wise and skill-wise diversity is
not present in Toyota because at the time of appointments, selection of employees is done
in such a way so as to meet the standards of the company required for a certain type and
level of the job. Also the workforce is given on job training and with the passage of time
the employees get promoted, so age and skills brings promotions only.

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MOTIVATIONAL TECHNIQUES IN PRACTICE AT TOYOTA:

1) THE NAME TOYOTA ITSELF:

The basic motivational factor for employees working in Toyota is the Goodwill of the
company itself and also the Life-time Employment policy (no firing is done, until forgery
or any other such criminal activity done by the employee) of the company.

2) OPEN COMMUNICATION CHANNELS:

An open and informal sort of an environment is to be observed at Toyota with fully

encouraging communication channels. An important and unusual thing to be seen here is
that there is no cabin system, i.e. no separate cabins or rooms are made for top
management, but they remain on the go to keep in touch with the lower management and
the workers commonly called as Team members.

3) ON JOB TRAINING:

The company has a policy that as soon as a person joins its workforce, he/she is provided a
proper training to fit into the job responsibility given to him/her. This phase of training is
prior to accepting the job responsibilities. But the on job training, to overcome situational
problems being faced by the employees, is also very common at Toyota. The TNA
(Training Need Analysis) is a method of evaluating personal capabilities is also an example
of on job training, which is in common practice at the company.

4) ADDITIONAL BENEFITS:

IMC provides a number of benefits to retain its valued employees and to decrease turnover
like:
Medical insurance for employees and their families.
Loans like home loans, etc.
Provident Fund.
Pension after 10 years of service.
Casual and medical leave.
Transport facilities.
Lunch facilities.
Apart from providing the lunch, the company has a very interesting tradition of
serving a glass of milk every hour to each of the factory workers considering their
intense physical work.
Maternity leave of 3 months.
Separate entertainment budget for every department.
Overtime compensation to all late sittings after 5pm.
Every year the company also bears the cost of providing separate (upper
management and middle management separately) recreational trips of 3 to 4 days to
a certain foreign country to its management employees and dealerships.
Team members (factory workers) are provided with Hajj and Umrah facilities
every year through a lucky draw for 4 to 5 members at each time.

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 Upper hierarchy in the company is also provided with an additional benefit of some
Club membership for the family.
Another unique benefit at IMC is charity for needy employees by the Habib group
through secrecy.
There is also a Labor Union to present the issues being faced by the work team
members to the management.
IMC also has a Cricket team of its own to provide entertainment and to enhance
enthusiasm in the employees, for which the selection is done purely on ability basis.

5) CARE AND SAFETY:

Toyota values its employees a lot and considers them as a family. Therefore, in order to
increase awareness about safety measures, it provides two types of safety education to its
team members. One is through improving the technical capabilities employees need for
particular jobs, and the other is by providing knowledge through collective education for
managers and general plant employees. Also the formation of small employee groups to
discuss the potential dangers at the work sites is a very common activity (KYT-
kiken=danger, yochi=prevention, training) in the company. The SHE Department (Safety,
Health and Environment department) on regular basis, get the employee informed for
health and safety measures through e-mails.

6) USE OF MBO:

Management by objectives is the method of emphasizing participative set goals that are
tangible, verifiable, and measurable. It converts the overall organizational objectives into
specific objectives for organizational units and individual members. This method helps
managers to motivate their subordinates in such a way that they themselves feel responsible
in achieving the organizational goals as they have been a part in the goal setting of their
own department.

7) MEETINGS AS REINFORCEMENT SCHEDULES:

IMC uses a number of different types of meetings as reinforcement schedules to increase

the desired or to decrease the undesired behavior of its workforce. The examples of such
meetings include:
3M’s meetings (muri = over burden, muda = waste, mura = unevenness) to
eliminate the wasteful activities of the departments every Monday with the CEO.
OBEHYA meetings (the standing meeting) to judge the performance and
progress of each department every Tuesday with the directors and the CEO of
the company.
Monthly review meetings of the departments themselves with their Directors, in
which the progress of the department and the personal performances of the
concerned employees is evaluated.
QRM meeting (Quality Review Meeting) of the departments every month with
the CEO.
ACT # 1 meeting with the Chairman every month.

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8) INCENTIVES AND REWARDS SYSTEMS:

IMC believes in encouraging the performance of its employees to motivate them to remain
performing at their best in the company’s interest. Some of its rewards systems are
mentioned below:
Bonuses (profit sharing) on performances and hierarchy level on basic salary.
The company gives Employee of the month award to all the best performers during
the month.
The employees are also entitled to Employee of the year award, which is presented
to the best performer on the Annual Family Day.
The higher management also uses a system of sending motivational e-mails to each
and every department in order to praise the performance of an employee in a certain
department for positive reinforcement.

9) PERFORMANCE APPRAISALS:

Every year the company gives performance based appraisals in the form of increments and
benefits. A minimum of Rs.200/= is given to every employee, but this increment is disliked
and indicates that the person has shown zero performance during the year.

10) JOB ENRICHMENT TECHNIQUES:

Certain job enrichment techniques are also in practice at IMC to maintain interest of the
workforce in their job responsibilities, for instance:
Every team member is a Line Inspector, and can stop the line of production even
for small defects.
Suggestive system is very encouraging technique to enhance creativity among
the workers by taking part in the decision-making for the improvement of
working techniques and conditions.
Another important technique is the KAIZEN Marathon (search for a better way
to reduce time and cost) in which the QC Circle (quality control) employees
conduct research based activities for the improvement in working conditions, job
descriptions and job responsibilities.

CONCLUSION

From the above discussion, it may be concluded that TOYOTA INDUS MOTOR
COMPANY LIMITED has a purely motivating, extremely caring and creativity
encouraging open environment which enables it to manage its large workforce with

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minimum issues arising due to diversity. Rather the organizational set-up is such that it
joins the whole workforce in the form of a family.

TOYOTA uses its best efforts to comply with all labor and employment laws and
regulations of the countries where it is active, as well as the spirit thereof. TOYOTA
encourages and supports the personal growth of all people working for TOYOTA.

Based on “Mutual Trust and Mutual Responsibility”, TOYOTA endeavors to improve its
business performance in order to make it possible to provide equal employment
opportunities and to maintain fair and stable working conditions. TOYOTA strives to
create a safe and harmonious work environment for its employees.

TOYOTA respects and honors the rights of all people working for it and will not
discriminate against them or permit the infringement of their rights.