Please go to Chapter $3$ in your e$-$text and read Compensation Today $3\mathrm{.}1($Toyota$)$ and Compensation Today $3\mathrm{.}2($CAMI$).$ Both organizations apparently wanted to adopt a high$-$involvement managerial strategy. Adopting high involvement was not successful at CAMI but was very successful at Toyota.

Questions:

Are there any concepts from Chapter $3$ or previous chapters that could help explain this result?

Assuming management at CAMI really wanted to move away from the classical school, what should have been done differently?COMPENSATION TODAY $3\mathrm{.}1$

REWARDS SUPPORT STRATEGY AT TOYOTA

At its Kentucky assembly plant, Toyota uses a carefully conceived reward

system to support its managerial strategy, which focuses on three central

concepts: employee loyalty and commitment to the firm, teamwork, and

high performance. So how do you create the attitudes necessary to

generate these behaviours? Based on the given scenario give the answer for the writing assignment in humanize form.

The reward system includes all three compensation components: base

pay, indirect pay, and performance pay. Base pay is reasonable, but not

high for the industry. But to create a feeling of cohesion among

production workers, all employees receive the same pay once they have

completed $18$ months of service. A production team member reportedly

earns $$25$ an hour at the plant in Georgetown, Kentucky. Toyota provides

an extensive array of benefits to employees, including childcare. The

childcare centre offers round the clock accommodations to children of

parents who work early mornings or late nights. Kids are offered outdoor

learning areas, developmental and vision screening twice a year, and

opportunities to learn about healthy eating and exercise. However, these

benefits are not out of line for the auto industry, which is famous for the

benefits its unions have won.

What is unusual is that benefits are structured identically for all

employees, from assembly workers to the plant manager. There are no

executive dining rooms, preferred parking, or private offices for

executives. The company believes that egalitarianism is necessary to

avoid the division between workers and managers that is so common in

this highly unionized industry. $($Toyota employees have never voted to

unionize.$)$

Toyota purposely deemphasizes cash rewards. Most companies within

the United States have much more complex systems of performance

evaluation and performance pay. When Toyota uses performance pay, it

is not based on the individual. For example, annual bonuses, based on

company performance, make up a big chunk of earnings for all

employees. As a decentralized strategy to problem solving and

empowering workers, special award money is distributed to groups or

teams that have made suggestions that result in safety, cost, or quality

improvements. This money is distributed equally among group members

and usually consists of gift certificates that can be used at local retailers.

The purpose of this program is threefold: to make sure this money simply

doesn$$t get lost in the paycheque, to create family involvement, and to

make the reward more tangible$.$ For example, every time employees look

at their new flat$-$screen TV$,$ purchased with these certificates, they will be

reminded why they received it$.$ In addition, PT $($personal touch$)$ money is

made available to team leaders to support team social activities, such as

a summer picnic, monthly team lunches, or trips to ball games.

As a part of its reward strategy, the company offers numerous rewards

beyond compensation, one being job security. Management has fostered

a relationship where employees can suggest process improvement ideas

because streamlining their work will not eliminate their jobs. According to

Terry Besser in a Journal of Management Studies article, $$Of all the

rewards an organization can offer, the one which was seen as most

important by nearly all my informants was the job security offered them

by Toyota. Every American interviewee mentioned job security in one

form or another as either the reason they took a job with Toyota and$/$or

the reason they would remain, even if offered a better paying job.$$

Another key pillar of the reward system is training and promotion

opportunities. Toyota has partnered with Bluegrass Community and

Technical College in creating a program where students can earn an

associate degree. However, their only classes occur at Toyota$$s

manufacturing plant. Almost all the students receive a job at the plant

once they graduate. The company also has a promote$-$from$-$within policy

and invests heavily in training for its employees. Toyota focuses on

bringing in top calibre employees with the potential to grow and develop.

However, to keep them interested in what is essentially routine and

repetitive work is a challenge. Toyota deals with this challenge by

providing job enrichment, cross trainin