Organizational Commitment In Toyota

Introduction

Toyota Motor Corporation is one of the well- known and established automobile manufacturer in the world. The success story of this company begins back in 1926 when Sakichi Toyoda started Toyoda Automatic Loom Works, the key important player in Toyota Group until today. A transition from a textile company to one of the biggest automobile manufacturer in the world is inspiring as it inspired people working harder to achieve their dream. Liker (2004) in his book refer Sakichi Toyoda as great inventor and Toyoda family story become more interesting as Kiichiro Toyoda, Sakichi’s son established Toyota Motor Company after he was challenged by his father to start up a car business. At first, Japan automobile face great challenge to enter

In addition, organizational commitment requires effort from an organization to make sure their employee feel happy to work with them. Jaros (2007) provided a critical analysis of Meyer and Ellen model of organizational commitment that can be divided into three component such as affective commitment, normative commitment and continuance commitment. “Toyota Way”, principle number 10 state that develops exceptional people and teams who follow your company philosophy (Liker, 2004). In Toyota, every individual play an important role and Toyota believe that a good team was created by excellent individual performance that understands Toyota philosophy. So, Toyota makes their employee feel that everyone is special and everyone have their own contribution to the company

Toyota Motor Corporation (2012a) highlighted a few important point about Toyota employee welfare such as Toyota Memorial Hospital that responsible for employee and their family healthcare, Toyota Motor Health Insurance Society provides healthcare coverage and Toyota Motor Pension Fund to ease employee future when they retired. Toyota Motor Corporation effort to make sure their employee feel sense of appreciation manage to increase the organizational commitment. When employee receives benefits from an organization, they will feel secured to work there and make them stay longer with the organization. As the end of March 2012, Toyota Motor Corporation have almost three hundred thirty thousand employee working with them and the number keep increasing from year to year (Toyota Motor Corporation, 2012b). Toyota Motor Corporation always work harder to increase their employee organizational commitment that attracted more people to become part of Toyota family.

Fancher and Rutherfold (2012) give better understanding about Maslow’s hierarchy of needs by several important ideas of this approach like physiological needs, safety needs, love needs, esteem needs and self- actualization. The way Toyota treat their employee can be related to Maslow’s approach as Toyota satisfy the lower level needs and bring employee to the highest