The people and human resource management in terms of their skill enhancement and development is one of the major principles of the Toyota Production System. The corporate welfare societies have claimed the companies of Japanese origin to be much more responsible and considerate in terms of their employees.The labor management in the Toyota Production System is based on establishing relationship with the workers by enabling them to take responsibly for managing their operations and making them independent in terms of decision making. Consensus decision making is also employed by theToyotacompany in order to increase the participation of the workers in the business and its strategic long term development. The autonomy allotted to the workers enabled the business to establish good relationships with them which result in increased loyalty if the employees and lower turnover of specialized, trained and experienced workers. “According to the corporate welfare school, the company works as a benevolent family. Labor policies benefit both workers and management, employment is guaranteed for a lifetime, teamwork is pervasive, and the wage structure is based upon seniority. Some have claimed that as a result of lifetime employment, a “community of fate” develops among employees, resulting in an intense loyalty to the firm. These claims have created a pervasive belief that inJapan, employees work in an environment which functions more like a nurturing family than like a highly competitive profit making entity and others have written about familial ideology and its impact on worker behavior. Some say that the reason the Japanese are such disciplined workers is because of this family-like environment.” (Mehri, 2006, p23)
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