Emerging HR developments in Toyota and Ford

1. Introduction
From the earliest times, technological innovations have changed the way the industry
operates. As can be seen, the technical understanding of the human resources department
(HRD) must urgently improve in parallel with the introduction of new technologies and
production processes. The use of information and communication technology helps to
improve the quality of information related to employees, while increasing business efficiency
(Rana and Sharma, 2019). It is argued that the combination of modern technology and
professional staff leads to greater creativity and productivity.

2. Literature review
Human resource management (HRM) is concerned with all elements of employee and
organisational management. Current developing technology focuses on artificial intelligence
(AI), which includes both machine learning and pre-programmed automated algorithms, as
well as robots. This new era is altering the nature of labour in novel ways, with technology
assisting not just in fundamental tasks, but also in jobs requiring higher cognitive processes
(Armstrong and Taylor, 2020). There are numerous study article on the emerging of HR
department and how they affect job performance.

Rana and Shama (2019) conducted a research on a perspective on best management practices
to encourage innovation and learning in the firm to keep abreast with, and adopt industry 4.0
advancements. With the participation of competent people, the adoption of industry 4.0
technology and techniques will considerably boost a firm's innovation capability. The use of
information and communication technology improves the quality of employee-related
information, resulting in increased business effectiveness. Industry 4.0 will change the way
we work; occupations currently performed by people will be completed by robots led by
human workers. The purpose of this study is to emphasise the significance of human resource
management (HRM) techniques in industry 4.0. The literature suggested that in order to stay
up with new methods of doing business, staff would need to be educated to use new
programmes, and top management would be challenged (Rana and Shama, 2019).

Johansson and Herranen (2019) concluded that the area of AI in recruitment is relatively new
and there are not many companies that utilize AI in all parts of their recruitment process.
Recruitment operations like as pre-selection and contact with candidates, as well as handing
out recruiting results for applicants, are the best places to integrate AI in conventional
recruitment. The primary advantages of AI were perceived to be faster quality and the
removal of mundane jobs, while the biggest difficulty was perceived to be the organisations'
general preparedness to new technology. The goal of this thesis is to look at how AI might be
used to improve the traditional recruiting process and make it more efficient, as well as what
the repercussions of using AI in recruitment would be. Even though AI may be used in many
aspects of the recruiting process, not every organisation is required to use it. There are still
some activities that should be performed by people, such as negotiating, cultural fit
assessment, and rapport development. Because it takes a long time to deploy AI in the
recruiting process and observe the benefits, every business must consider the expenses and
choose whether or not AI is truly necessary (Johansson and Herranen, 2019).

Baldegger et al. (2020)'s study was to see the perception of adopting and introducing AI in
HRM processes. Furthermore, it looks at the relationship between entrepreneurial orientation
(EO) and AI in HRM procedures. Creativity and innovativeness are undeniable digitization
tools that contribute to a more competitive market presence. Improved procedures and data
analysis are compelling businesses to invest in expanding digitization in order to prepare for
an unavoidable future with AI in HRM. As a result of their results, AI technology should be
properly examined and used, and businesses should provide effective system information and
knowledge transfer to HR staff to minimise job loss and misunderstanding. However,
implementing AI is significantly dependent on a company's executive orders (Rico et al,
2020).

The present and emerging concepts of electronic human resources management (E-HRM)
and human resources information system (HRIS) was investigated by Mary and Yanagi
(2012). IT has evolved into a key instrument for supporting HR activities, and the HR
function is now closing the gap in terms of applying new IT capabilities to conventional
functions. Distributors of e-HRM technology claim a number of advantages to organisations
that use these technologies. As it is the primary and future necessity of any company in terms
of future and present E-HRM and HRIS is regarded as the major supporting aspect of this
organisation in carrying out HR tasks. The results show that using E-HRM and HRIS
technology is recommended, as the software solutions guarantee a trouble-free system and
low-cost technology, however the degree of this promise is only made up to a certain extent.
However, the software solution keeps up the promise to provide a useful, efficient and
increased performance through this e-HRM and HRIS technology in spite of all barriers it has
to face (Rico et al, 2020).

Jihad (2021) conducted a research on the challenges that E-HRM had to overcome during the
pandamic. According to the findings of the study, Covid-19 dramatically decreased the
number of employee recruitment efforts. Employee training sessions have been cancelled in
order to shield personnel from contact with the disease prior to the outbreak. Due to a
shortage of infrastructure, only a few organisations were able to implement online training,
which would have been the greatest alternative. Organizations may consider implementing
electronic human resource management to ease HR tasks such as recruiting and selection,
employee training, performance management, and others. This will help you avoid or restrict
needless intimate interaction (Feaij, 2022).

3. The future of HR as a function and process

Every organization's most precious asset is its people. As a result, organisations must always
prioritise upgrading their workforce's abilities by altering human resource management
techniques to fit the newest trends, one of which is technology application. turmeric. AI
algorithms integrated into applicant tracking software (ATS) and cloud computing can help
HR managers recruit candidates and standardise work procedures. AI tools also aid in the
elimination of prejudice in the employment process (Lytle, 2022).
Furthermore, AI assists human resource management in employee training, performance
evaluation, reporting, payroll, and corporate data management. With the advent of digital
integration, every department, including Human Resources, is utilising cutting-edge
technology like as virtual reality (VR) and augmented reality (AR) to improve the employee
experience. Businesses in the insurance, service, and retail industries are increasingly
developing VR and AR technology applications to teach personnel. This enables HR
managers to enhance new workers' working capabilities and increase recruiting efficiency
(Lytle, 2022).

4. The impact of cross-cultural engagement within organisations and the impact of

globalisation
People from different cultures are often talented, experienced, and offer diverse opinions.
These differences require team members to be more open about challenges and solutions. As
a result, the intercultural corporate landscape promotes higher levels of creativity and
innovation. This benefits businesses because increased innovation leads to higher earnings
(Matthews, 2012).

With international commerce on the increase, an increasing number of organisations are

attempting to expand into new areas. Companies that welcome cultural diversity and promote
cultural awareness better equip their workers to operate across borders on an individual and
group level (Thunderbird - School of global management, 2021).

In addition, companies that develop cross-cultural methods often have higher employee
retention rates. Many studies have found that employees value business culture, which
includes diversity and inclusion. According to a study by Glassdoor, about 67% of job
seekers believe diversity is an important aspect when making decisions between job offers.
According to another Yello poll, 70% of employees would think about leaving if their
employer did not demonstrate a commitment to cultural diversity. The same is true for
customers. As evidenced by a recent survey, 34% of buyers rate each brand's commitment to
diversity and inclusion when making their final purchase choice if two brands offer the same
product ( Thunderbird - School of Global Management, 2021).
The challenge for organizations when it comes to cross-cultural communication is to ensure
that their message is understood the way it is intended (Matthews, 2012). It is simple to make
assumptions about what is being said when communication obstacles are not resolved. Our
assumptions about what is communicated can differ greatly from the original message.
Communication requires work; It is often easier to sit back and simply assume what we
believe people are trying to tell us. Organizations must be willing to commit the necessary
resources to facilitate cross-cultural communication (Nasir, 2017).
5. Technology is reinventing HR
The field of human resources is continually evolving. One way it has altered in recent years is
due to advances in technology. AI is becoming increasingly important in the sector of human
resources. HR is concerned with the establishment, maintenance, and enhancement of human
interactions inside a business. The continual requirement for human touch in all HR
operations paves the road for AI application. AI is transforming how people are recruited,
trained, and data is utilised to generate people analytics. It enables HR professionals to
intelligently automate repetitive processes, freeing up time to focus on more important tasks
that require human participation (AIT , 2019).
● Enhancing recruitment process
As recruiters go through and filter potential candidates from hundreds of thousands of
resumes, an AI-powered application can be very helpful. AI can help employers analyze the
labor market, compare skills, assess competencies, and detect exaggeration in job
descriptions. AI will always prevent prejudice from entering the hiring process. Furthermore,
HR directors can use chatbots to interact with candidates before arranging interviews and
answering their frequently asked questions. This saves a lot of recruitment time and effort.
(AIT , 2019).

● Understanding employee referrals

The AI can also examine previous referral performance data and identify when potential
candidates can compare against recommended successful employees. AI enables HR to
improve the candidate and employee experience by automating repetitive processes, and
freeing up time to focus on the more creative, strategic things that HR can desire. Instead of
spending time overseeing every stage of the onboarding process, those processes can be
intelligently automated. (Nicastro, 2020).

● The increased demand for a better work-life balance.

According to a new study published by Aviva - one of the UK's major workplace pension
providers, work-life balance (41%) is more appealing to workers than salary (36%). Male
employees are still more attracted to money (43%) than work-life balance (34%), but female
employees prefer work-life balance (44%) over money salary (33%). The workplace benefits
package and pension contributions offered have been stable over the course of three years,
ranking seventh and eighth as sustaining factors (plc, A, 2022).

6. The emerging HR developments affect the role of the HR function in the future
Today, the role of HR is evolving rapidly and increasingly shows its importance. With the
advent of new technologies and changes in the way we work, HR managers have to think
differently, operate differently.
● Work flexibility
Our workplace is no longer fixed at a certain location. The pandemic has permanently
changed the perception that employees must be present at work or have to travel to meet face-
to-face at the company. Employees want more flexibility, and regardless of your company's
policies—remote, hybrid, or hotel (for in-office use when needed)—employees want a good
work-life balance than. Changing trends in employee choice of workplace will require new
rules to be established. Human resources directors must take the lead in establishing and
implementing those policies that address the way we work (Price, 2022).
● Bespoke employee training and development
Personal options are in high demand no matter where individuals work. Employees want to
be recognized for their uniqueness—both for their abilities and limitations—while businesses
face a growing need for knowledge workers. More importantly, people are leaving companies
in search of better opportunities outside the market for growth and development. Companies
can no longer create a training program that works for all employees because functionality
can appear to vary not only between organizations but even within companies as individual
workers acquire unique skills and talents. HR managers must assess how knowledge worker
growth can affect talent acquisition in addition to providing appropriate training to
employees. (Price, 2022).
● Overall employee well-being
HR managers care about employee behavior and they can ensure that employees will do their
best to work to reduce time consumption and increase productivity and efficiency. The HR
department can track employee morale and estimate how it will affect productivity.
Identifying problems and needed treatments early can be key to managing employees' mental
health. Encouraging a stressed employee with unused vacation days to take a break can boost
morale and reduce attrition (Price, 2022).

7. Valid judgements and conclusions

Human resource managers that pay attention to their employees' activities may be able to
reduce attrition and increase production by encouraging their employees to come up with
creative solutions to difficulties. Human resource departments can assess employee morale
and predict how it will effect output. The key to managing employee health may be
recognising concerns early on and putting appropriate measures in place. Encourage
concerned employees with unused vacation days to take some time off as a simple method to
increase morale and reduce attrition (Parikh, 2022).
Human resource professionals should make it a point to stay current on technological
advances, trends, and operational changes that will affect how firms function in the future.
Human resources may be adaptable in reaction to these changes, allowing them to better
assist in employee growth, retention, and recruitment (Parikh, 2022).

8. Organisational design of Toyota and Ford influences high performing work practices
with regard to organisational objective
 Organisational objective
Toyota aims to launch 30 pure electric vehicle models by 2030, providing all-electric vehicles
globally in the passenger and commercial vehicle segments with a global sales target of 3.5
million vehicles by 2030 (Toyota Việt Nam, 2021).
Ford objectives are targeting zero emissions for all vehicle sales in Europe and carbon
neutrality across our European footprint of facilities, logistics and suppliers by 2035 (Ford,
2023).

a. Environment changes
Covid 19 has a significant influence on enterprises; it impacts how human resources are
handled, how firms function and operate organisations, and so on. Covid 19 affects everyone,
and they must separate themselves at home owing to a medical issue. However, companies
must still find a means to function, thus organisations must devise working techniques that
are appropriate for the changing context of the environment. Furthermore, the electric vehicle
market share is now just 5% of the whole sector, but this percentage will alter with rising
momentum in the next years (My, 2021).
Because of the epidemic's environmental impact, remote working has been used for office
workers to accommodate changing environmental conditions - Covid 19. Businesses have
reacted to the environmental effect of shifting customer consumption habits.
Toyota - The Japanese automaker will still focus on developing electric vehicles such as
hybrids and plug-in hybrids to save fuel. Toyota will be able to serve all types of customers
regardless of the type of vehicle they own. Toyota is the first company to introduce Hybrid
technology for electric vehicles in the world. Hybrid Electric Vehicles (HEV) is one of the
variants of electric vehicles, utilizing the power of both power sources, an internal
combustion engine and an electric motor. Meanwhile, Plug-in Hybrid vehicles (Plug-in
Hybrid Electric Vehicles - PHEVs) are a hybrid variant of electric vehicles and hybrid
vehicles (Quý An, 2022).
Toyota focuses on serving customers during Covid-19, flexibly changing care policies for car
owners. A series of activities are offered by the company such as discounts, car maintenance,
and safety for customers. In order to promptly adapt to market fluctuations, business
operations have also changed to online support. The company provides remote consulting
services, answering product questions via hotline (VnExpress, 2020).

As regard Ford’s strategy to adapt to environment changes, they has outlined its plans to
develop more electric cars in Europe by unveiling a new "startup" business unit called Ford
Model e, which will deliver three new electric SUV models by 2024 (Nguyên, 2022).
Ford has launched the FordPass application, which is an application of Ford Motor Company
that allows customers to download smartphones from the Apple AppStore (iOS), Google Play
Store (Android) providing wireless connectivity. with the car to use many utilities such as
Remote control: Start / Shutdown (vehicles equipped with automatic transmission);
Lock/Unlock the door, Activate the light/horn; Check the current location of the vehicle;
Check vehicle parameters, oil change maintenance schedule and connect with Ford experts
for support (Nguyên, 2023).
Honda and Vinfast's actions both result in personnel and organisational structure changes in
order to attain the company objectives.

Incremental change can be understood as the process of changing, adjusting or improving the
status quo by making small, relatively minor adjustments. It has no effect on the core of an
organization. Incremental change can affect and involve very small changes to pre-existing
systems, hierarchies, models, goods, services, and processes (Schroedel, 2019).
A radical change is a change that affects the core of the company's operations, products,
culture, norms, etc. Radical conversion is sometimes costly and requires a long time. When
any of the following requirements, alone or in combination, are satisfied, radical
transformation occurs: The gap between the present and future states (planned changes) is
very large in circumstances and there is a transformative change that occurs under the
company's core procedures (Schroedel, 2019).

Toyota has been pursuing both incremental and radical innovations in products, processes,
locations and models to maintain its leadership position in the global automotive
manufacturing sector. Most of its product innovation methods are primarily incremental.
Toyota focuses on analyzing changes in the external environment and making critical
continuous incremental improvements to enable them to perform better. Toyota has been a
leader in innovation when it comes to applying these changes, while researching and creating
radical product innovations. Since then they have produced hybrid and plug-in hybrid electric
vehicles. Not only that, the company also produces vehicles that run on hydrogen fuel cells
instead of gasoline. (Okanga, 2022).

To drive incremental innovation, Ford and Google are teaming up and forming a new
collaboration group called “Team Upshift.” This team will create a personalized user
experience for each customer. Next, rely on research data to find out what drives
breakthrough development opportunities. The team's projects will range from developing new
buying experiences to creating new offers based on research data, and more. Starting in 2023,
Ford and Lincoln customers globally will enjoy unique digital experiences built on the
Android operating system, integrated Google apps and services including maps World-class
and voice recognition technology:
With the Google Assistant, drivers can focus on the road and steering as they can control
tasks with just their voice.
With Google Maps as the vehicle's primary navigation system, drivers can get to their
destination faster with real-time updated traffic information, automatic route recalculation,
and lane guidance (Hải, 2021).
Regarding radical changes in Ford, they have invested more than $11.5 billion in the
electrification of vehicles, including zero-emission versions of several popular models such
as the Mustang Mach-E, Transit Commercial EV and especially the F-version. 150 electric is
expected to launch in mid-2022. Previously, the group announced plans to use 100% locally-
sourced renewable energy for all manufacturing plants globally by 2020. 2035. Renewable
natural energy sources include hydroelectricity, geothermal, wind and solar power (T.H,
2020).
b. The changing management
Change management is the process of initiating and facilitating change - initiating and
completing the smooth implementation of new developments and initiatives by carefully
preparing and introducing them while accounting for the possibility of resistance or
misinterpretation. Transformation management approaches, particularly when it comes to
cultural transformation, may be crucial in an organization's growth strategy (Armstrong and
Taylor, 2020).
 Change management at Toyota
Toyota has applied technology to the recruitment process, specifically using the company's
website to post information and application forms and screen suitable CVs (Toyota, 2020).
 Change management at Ford
Ford's organisational design has evolved as a result of bold and clear decisions to incorporate
a research and development department for intelligent features for electric cars. Furthermore,
Ford's deployment of E-recruitment, E-selection, and an integrated system is similar to
Toyota's, in terms of performance management and time. Ford established the talent student
recruiting programme to encourage and develop opportunities for young talented employees
(Ford, 2018).

9. Transformational and psychological change that can affect organisational design

Psycological transformation is the process by which businesses alter their workers' attitudes
and behaviours by utilising psychological discoveries that explain why individuals think and
act the way they do.
To encourage a person to undertake and finish a behaviour change, it is required to guarantee
that:
 The individual understands and agrees with the aim of the change.
 The system of incentives and recognition encourages the new behaviour.
 The individual possesses the necessary abilities for the new conduct. (Armstrong and
Taylor, 2020).
When an organisation goes through transformational change, it undergoes a tremendous
metamorphosis. Transformational change occurs when an organisation must adjust to or plan
for significant changes in its external environment or the state of the art in its industry's
technology. Because of the disruption that transformative change may produce, organisations
should exercise caution before committing to it. Businesses frequently experience upheavals
from within or without, prompting major course adjustments in order to retain profitability
and market relevance. Transformational change occurs when an organisation:
 Adopts breakthrough new technologies that necessitate significant process and team
structure changes.
 Significant strategic adjustments are implemented.
 Significant cultural modifications are implemented (e.g., following a major internal
problem, such as systemic harassment)
 To counter external market forces, offers a new core product or service (Daly, 2021).
Toyota applied transformational change as they
  Empower subordinates to make decisions and create freedom.
 Encourage, support, listen to ideas from young people, instead of forcing them to just
work like a machine and obey their superiors.
 Mass change of old leaders.
 Toyota declaired that it will meet what customers expect by changing conservative,
outdated designs. The proof for that change comes from the design on new Toyota
cars with sportier and more personality like Lexus LC, Camry, C-HR, or RAV4
(VnExpress, 2020).

10. The complex relationship between organisational design and changing work-
performance practices management
The overarching goal of organisational design is to optimise arrangements for conducting the
affairs of the business or function in order to produce a 'best fit' between the structure and
functions of the business or what that section is for. Personnel, after being put in the
appropriate position based on organisational capability, may have a direct influence on
employee qualities such as engagement, dedication, motivation, and abilities (Armstrong and
Taylor, 2020).
Toyota's use of transformational change demonstrates that the corporation makes significant
changes not just to its product line but also to its human resources department. The
company's organisational structure is changing as a result of the development of a hybrid
engine and plug-in hybrid. Toyota is obviously concentrating on training new human
resources for hybrid automobiles, showcasing the company's success (Tâm, 2022).

9. Conclusion
The article discusses current HR developments and how they will impact high-performance
work practises, organisational design, and how organisational goals modify these techniques
of work, as well as global situations.
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