Question:
You are a Human Resources Manager and you work at Toyota Australia’s Altona manufacturing plant. This is a wholly owned subsidiary of Toyota Motor Corporation.
Your organization has decided to move a manager in 2017 from its Melbourne plant to a US sister plant.
This manager needs you to prepare a background briefing report outlining the human resource management and employment issues that will affect the manager’s work life in the United States.
Information relevant to this report will be posted to the course website.
What is the point of asking this question?
Donald Trump
What will be the impact of Donald Trump’s presidency on the economy, business, and HR in America?
What’s it like to work in the automotive industry in Australia, and the United States?
The essay was specific to a country; the report is specific to an industry.
Please no tourism or cultural issues, as these were not discussed in the essay.
Discuss the issues of human resource management and employment relations that could impact the work life of the manager in the United States car industry.
You can compare briefly what it’s like to work in Australia’s car industry at the moment.
Answer:
Employment Relations and HR Practices
Toyota Motor Corporation, a Japanese automobile manufacturer, has many subsidiaries around the world. These include the United States and Australia.
Although the headquarters is based in Japan there are also regional offices on all continents.
Since its inception, the firm has been operating since August 28, 1937.
The company’s HR policies, and employment, are different across continents because of the laws and policies that govern these matters made by the government (Jayamaha et al. 2014).
The country must deal with employees from both unions and non-unionized.
However, different countries have different HR policies and practices that affect the quality of employees, continuous improvements, employee motivation, ensuring competencies and remuneration.
This report examines the differences between the US and Australia’s HR and employment relationships.
Trump’s Presidency: Economic and Business Effects
Donald Trump was inaugurated as the President of the United States on January 21, 2017.
Due to the unimplemented legislation, Trump’s presidency will bring many changes.
The proposed policies will have a significant impact on business and the economy.
Trump’s Presidency also has many effects on the future management of Human Resources in the U.S.A and around the world.
But, observing Trump’s policies shows an unavoidable trend. The policies most likely to get implemented by Trump’s Administration seem to be moving in the direction of protectionism. This would have a significant impact on the HR of many organizations (Peters 2017; Kehoe 2017).
In light of possible changes in federal policy, the focus of this article is on the future of workplace policies and strategic human resource management.
These impacts on HR include overtime regulation at work, diversity benefits and hiring immigrant workers.
On the proposed changes to the global trade agreements (and the tax regime), we explain the effects of Trump’s presidency on business and economy.
This will impact the economy in a number of ways. One is by using tax breaks that have the objective of supporting the U.S. population and companies.
Concerning trade agreements, NAFTA and Trans-Pacific Partnership will likely be modified.
Trump also expressed his desire to end the Offshoring Act (Peters 2017, 2017).
These factors suggest that there could be mixed effects for businesses in certain sectors.
These policies will benefit the energy sector, particularly oil and gas and coal (Kehoe 2017, 2017).
The plans will have a significant impact on the manufacturing sector and infrastructure improvements.
It is possible to freeze federal employee hiring and allow the numbers to naturally grow (Burman 2016,).
The Impact of Trump’s Presidency on HRM
The Trump presidency’s implications are expected to have an enormous impact on US industries and organizations.
Increased checks and balances for immigrant workers is one of the consequences.
Companies will experience a shortage in skilled workers and personnel as a result of increased immigration crackdowns (Ku, Ku, et. al., 2017).
The U.S. HR must use E-Verify to verify the employment status of all employees.
Management must ensure that all workers have proper documentation and I-9 procedures. This is due to increased raids by the Customers Enforcement Agency (U.S. Immigration department) to verify compliance (Morgan 2017, 2017).
Regulations on Overtime
Trump will likely reintroduce FLSA overtime rules that were repealed last year.
This rule will impact HR policies within the organization and increase company spending.
The rules will allow many employees to be eligible for overtime pay.
The HR department would reduce the wages set to pay overtime wages if overtime is paid by the company.
This would result in employees in different categories losing flexibility and being prevented from working overtime (Ku, Ku, et. al., 2017).
Diversity
Companies will have the freedom to create additional diversity policies at work.
Federal contractors had the right to preference for contracts if they were diverse and certain percentages of the workforce were given were to minority groups. These were also conditions that federal contractors could recruit from this particular group.
This is likely to change with Trump’s presidency. The workplace can now accommodate more diverse groups (Salzl & Johnson 2017, 2017).
Human Resources Policy in the U.S
Toyota Motor Corporation, a highly successful company that produces automobiles for the global marketplace, is second only to General Motors in terms of production.
Their success lies in the focus on highly-skilled employees.
The position is filled by people who are more competent in their duties. HR also ensures that these people are trained and developed to help them achieve their goals as well as those of the company (Marks 2014).
The company focuses on improving and developing their HR capabilities because this is seen as the foundation to improve the firm’s capabilities and address future and current challenges.
The general HR practices are consistent across all industries. These include providing career opportunities and incentives for employees to increase their creativity and productivity (Kaufman & Taras 2016, 2016).
The laws that affect the organization policies in the United States are governed both by federal and state laws. They protect employees’ rights and set the obligations of employers.
The federal and state guidelines must be followed by a Toyota manager.
This includes the prohibition of discrimination against any age, gender, or group.
These laws guide activities such safety at work, remuneration and related benefits (Kaufman & Taras 2016, 2016).
Managers must be familiar with the federal laws that govern the payment of HRM policies regarding employee wages and allowances.
Fair Labor Standards Act, which sets out the minimum remuneration and overtime payments. It also provides record keeping requirements, exempt workers, and other classifications.
Managers must be aware that there are differences between state and federal wage laws in the United States. Therefore, the company should pay the higher side of the two.
It is important to know that the Equal Pay Act, which was passed in 1963, prohibits discrimination against sex (Kubasek et al. 2016,).
An employer cannot pay women more for the same job or position.
HRM must review their policies regularly to adjust and pay the appropriate compensation.
Hiring Employees
The U.S. has a variety of laws that govern hiring practices. These acts are enacted by both the Federal government as well as the States.
The Equal Employment Opportunity Commission enforces these laws.
The Equal Employment Opportunity Commission enforces these laws. Therefore, HRMs must be familiar with the various statutes that govern the firm’s HR policies when advertising for work, recruiting, and selecting candidates to fill vacant positions (Kubasek, Kubasek, et. al., 2016).
These same principles are applied to training, developing skills and retaining employees.
The HR department at Toyota Motor Corporation must not use discriminatory practices that could lead to the exclusion of potential employees because of their circumstances, such as race, religion, disability or sexual orientation.
It is important to remember that all discrimination is prohibited by the state laws and municipal ordinances. This applies to Toyota HR policies (DauSchmidt, et. al., 2016).
Safety at Work
There are many laws and policies in place around the world to ensure safety at work.
The U.S. has regulations and rules that ensure a safe work environment for employees.
Toyota Motor Corporation’s HR department must create policies to ensure that employees are properly trained in order to achieve workplace safety.
Handling hazardous materials, complex machinery, and robots that work for Toyota can all lead to injury or death (Kaufman & Taras 2016, 2016).
OSHA regulations are also used to guide HR policies and practices in dealing with workplace injuries and fatalities.
The HR policies for a new manager who is transferring to Toyota in the U.S. are intended to continuously evaluate the workplace and make any necessary changes to decrease the number of accidents (Marks 2014).
There are no laws in the United States that deal with workplace benefits such as vacation or holiday pay.
Family and Medical Leave Act provides that employees may be granted 12 weeks of unpaid time off for serious medical conditions.
Managers must ensure workers who are facing these issues have access to paid leave. They must also be restored to their original positions and given equal pay, benefits and working conditions.
In retirement, the HR policies must ensure that pension benefits, including Medicare and Social Security, are guaranteed (Ruggie 2013, 2013).
U.S. Employment Relationship Questions
Australia’s employment relationship is different from the U.S. and managers will be affected differently.
The Employment Relationship Issues in the U.S. are governed by various Federal and State laws, such as the National Labour Relations Act and other.
These laws make the U.S. employment relationship unique to Australia. Managers who migrate from Australia to the U.S. will face different issues (Dubofsky & Dulles 2014).
The U.S. gives employees at Toyota Motor Corporation the right to join unions and to refuse to join them. It also allows for concerted activities.
The provisions concerning arbitration and collective bargaining are available (Kaufman & Taras (2016); O’Sullivan & Turner (2013)).
Employers and labor unions cannot interfere with workers’ rights, while employees can engage in collective bargaining with their employer.
There are HRM policies which require training and development for middle-level employees, such as supervisors, on matters of protected activities or contract interpretation (Fossum 2014).
Additionally, the United States has the employment at-will doctrine. This allows for collective bargaining agreements between employees and management.
O’Sullivan & Turner (2013) also states that the employer has the right to implement an individual employment contract.
The HR at Toyota Motor Corporation has the right and freedom to fire an employee for any reason.
Employers are prohibited from discriminating against workers on the grounds of race, religion or sexual orientation (Hattam 2014).
Employers are not allowed to discriminate against applicants on the grounds of their age, disability, or refusal to accept paid leave.
Employers over 40 years old cannot be discriminated against.
Management cannot hire foreign workers if the worker isn’t authorized to work in the United States.
This means that the new worker must be verified as to their eligibility and identity.
The law requires that all foreign workers employed must sign a Form I-9. Harassment of aliens can result in heavy fines and imprisonment (Ngai 2014).
Comparison of Australia and the U.S. Employment Relationships and HR Practices
This section compares the HRM policies, practices, and employment relations issues.
There are some similarities in terms of the employment relationship. For example, provisions for equal opportunity and diversity at work.
The workers who guide equal opportunities and diversity are similar in both countries. They advocate for hiring and keeping employees that reflect diversity and have workers from different backgrounds (Hollifield, and al., 2014).
This includes the hiring of workers with different backgrounds, such as ethnicity, gender, education status, gender, age, religious affiliations, sexual orientations, and work experience.
Both countries allow employees to participate in collective bargaining. They also have the right to be represented by a union (Gospel, and others, 2014).
The laws of Australia, like the U.S., are at the two levels: national and state. This ensures that the workplace is free from discrimination and offers equal opportunities for all employees.
The laws give managers the responsibility to ensure that the workplace is free of harassment and discrimination, and to understand the rights and responsibilities.
There is a slight difference between them. Australia offers funding extensions and incentive schemes for firms that provide support to workers with disabilities, Indigenous people, or those who have been unemployed for a long time (Watson 2013,).
There is little difference in Toyota Motor Corporation’s HR policies and practices.
The differences in employment contracts are that in the U.S. it is not required, but in Australia it must be signed by both the worker and the employer. It must also state the terms of employment, the rewards and any other conditions (Ngai 2014).
There are also differences in how employees are hired and fired.
In Australia, employees are protected, while in the U.S., employers can fire and hire as they wish.
Employees who have worked in Australia for six years or more can’t be fired unfairly, as they can in the U.S.
This applies only to workers earning lower wages, and does not apply to managers with high incomes.
Both countries have broad protections that are similar. For example, employees can be taken to task for exercising their workplace rights such as striking or demanding a raise in pay.
Other protections include the right to dismiss employees, change their positions, discrimination, and any form of prejudice (Dubofsky & Dulles 2014; Watson 2013).
Conclusion
The report concludes by examining the US and Australian employment relationships and policies.
Both countries have seen a decline in trade unions and a rise of collective bargaining between employees, employers, and the employer. There is also a guarantee for safety and rights of employees at work.
Managers can fire or hire at will. The company must adhere to the minimum wage guidelines set by the federal and state governments when determining benefits.
The federal and state laws govern the employment relationship and protect employees from discrimination on the basis of their gender, age, or race.
The decline in trade unions and the use of collective bargaining at work show that there are some similarities and differences between the U.S. and Australia.
The Australian laws protect workers and prevent managers from firing them at will.
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