The fundamental reason for
Toyota's success in the global marketplace lies in its corporate
culture and corporate philosophy – the set of rules and attitudes that govern the use of
Toyota have successfully penetrated global markets
and established a world-wide presence by virtue of its
productivity. The company's approach to both product development
and distribution is very consumer-friendly and market-driven.
empowering its workers
is the centrepiece of a human resources management system that
continuous improvement, and
employee participation, and that likewise engenders
high levels of employee loyalty. Knowing that a workplace
with high morale and job satisfaction is more likely to produce
reliable, high-quality products at affordable prices,
Toyota have institutionalized many successful workforce practices.
Toyota has done so not only in its own plants but also in supplier
plants that were experiencing problems.
Although many car
manufacturers have earned a reputation for building high-quality
cars, they have been unable to overcome Toyota's advantages in human
resource management, supplier networks and distribution systems in
the highly competitive car market. Much of Toyota's success in the
world markets is attributed directly to the
performance of its policies in human resources management and
The Toyota Way
Toyota Way is not the Toyota Production System
(TPS). The 14 Principles of the Toyota Way is a management philosophy used by
the Toyota corporation that includes TPS, also known as
TPS is the most systematic and highly developed example of what the principles
of the Toyota Way can accomplish. The Toyota Way consists of the foundational
principles of the Toyota culture
which allows the TPS to function so effectively...