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CHAPTER 5
ORGANIZATION?S MANAGERIAL FUNCTIONS
PLANNING
STRATEGIC OBJECTIVES
Achieving Market Leadership by Delivering Value to Customers
Following our ?Customer First? philosophy in manufacturing
and providing high quality vehicles and services that meet the
needs of Pakistani customers.
Enhancing the quality and reach of our 3S Dealership Network.
Employing customer insight and feedback for continuous
corporate renewal, including product development, improving
service and customer care.
Bringing Toyota Quality to Pakistan
Maximizing QRD (Quality, Reliability and Durability) by built-in
engineering.
Transferring technology and promoting indigenization at Indus
Motor Company and Vendors.
Raising the bar in all support functions to meet Toyota Global
Standards.
Optimizing Cost by Kaizen
Fostering a Kaizen culture and mindset at Indus Motor

Company, its Dealers and Vendors. Implementing Toyota

Production System.
Removing waste in all areas and operating in the lowest cost
quartile of the industry.
Respecting our People
Treating employees as the most important sustainable
competitive resource.
Providing a continuous learning environment that promotes
individual creativity and teamwork.
Supporting equal employment opportunities, diversity and
inclusion without discrimination.
Building competitive value through mutual trust and mutual
responsibility between the Indus Team and the Company.
Becoming a Good Corporate Citizen
Following ethical business practices and the laws of the land.
Engaging in philanthropic and social activities that contribute
to the enrichment of Pakistani society, especially in areas that
are strategic tooth societal and business needs e.g. Road
Safety, Technical Education, Environment Protection, etc.
Enhancing corporate value and respect while achieving a
stable and long-term growth for the benefit of our
shareholders.
(Annual Report, 2010)
RULES & REGULATIONS
The prices are suggested Retail price, Ex-factory price per unit
inclusive of sales tax
Any impact in prices due to change in government levies, tariff,
fiscal policies, import policies etc. will be in customers account
The above prices are provisional and subject to change without
any prior notice
Prices at time of delivery will be final
Prices are exclusive of transportation, transit insurance charges
etc. which are to be charged at the time of delivery
Order taken from customer is governed by the provisional
booking order form(PBO) and is under its terms and conditions
Our principal M/s Indus Motor Company Ltd reserves the right
to change the specification without any notice
(Toyota Azad Motors, 2012)
ORGANIZING
DEPARTMENTAL FUNCTIONS

DEPARTMENTALIZATION
It means the process of group related work activities into
manageable units is called departmentalization.
Departmentalization is being very. Common in every
organization as it facilitates the working of the organization.
This concept of departmentalization following departments
which are working out there:
Marketing
Finance
Customer Relations
Sales
Human Resource
Service
Spare parts
Planning
Logistic cells
Marketing Department
The marketing department of the firm comprises of highly
qualified, dedicated and hardworking team, equipped with the
latest marketing techniques.
Customer Relation (CR) Department
The Customer relation department is one of the most
important departments which can control all the activities
perform for the retention and benefit the customers. We
believe in perpetual improvement in all fields of services and
facilities as per Toyota & Daihatsu Standards applicable
globally, through regularly conducting Training & workshops to
enhance knowledge and share experience of our fellow
National CR- member and globally available experience of
Toyota.
Toyota Customer relations Ideals
Creating corporate trust based on integrity on integrity and fair
handling of Complaints.
Opening a larger window for customers.
Swift and sure handling of ?Inquiries & Complaints?
Making the? Voice of the customers? the basis for corporate
renewal.
Improving corporate image and better informing customers to
support Sales and Service activities
Finance Department

The Finance department is related to the accounts handling,

the customer drafts for the booking of cars to the Indus Motor
Company and the employees? salaries, records of the
transactions. The salaries are giving on their ranks like the top
management salaries are sent to their accounts while the
lower level employees are gives cash salaries on the spot from
the account department.
Capital
The Capital and Reserve of the firm are Rs. 38,000,000.00.
Sales Department
The Sales department is related to the sales of the Vehicles,
The Sales department includes Customer Services (CS), Vehicle
Delivery Inspection Quality (VDIQ), Record Maintenance, and
Inquiries & Complaints Handling.
Customer Services (CS)
Customer service department is related to the external
customer who is come to Toyota for the purchasing and
booking of the Toyota Vehicle of any variant. The Customer
service staff is well trained and sophisticated person because
these are the people who can play an important role in the
sales of a firm.
Record Maintenance
This department deals with the data/information about any
customer and this shows comprehensive information about the
customer data. Through this department the top management
can see the sales and the demand of the booking of the cars.
The record is maintained in this department is totally on the
manual work, but the firm wants to made a computerized
system.
Vehicle Delivery Inspection Quality (VDIQ)
This department deals with the overall checking of the Vehicle
at the time of arrival and the selling to customer. At arrival
stage, the vehicle that come from the Indus Motor Company
the Inspector check the vehicle and if any default occurs then
it claim to the Indus Motor Company. At the Selling perspective
the inspectors check the vehicle so that the customer are more
facilitate rather they have any problem faced after the
purchasing.
Inquiries & Complaints Handling
Another Department is also there that handles the Inquires and

complaints of the Customers. As Indus Motor Company launch

software namely ?Voice of Customer? so that the customers
can easily put their information directly to the Company
through the dealers.
7-Steps of Complaint Handling
Step # 1 Receive the Complaint
Step #2 Look Listen and Learn (3Ls)
Step #3 Get the Facts
Step #4 Determine ?Root Cause? and Responsibility
Step #5 Explain your decision then get Agreement
Step #6 Take Prompt Action
Step #7 Follow-up
Human Resource Department
Human resource refers to the activities an organization carries
out to use its human resource effectively. These activities
include determining the firm's human resource strategy,
staffing, performance evaluation, management development,
compensation, and labor relations. Indus Motor Company
Limited is also running department of HR for hiring and
compensating the employees of the firm. HR function to pay
significant attention to selecting individuals whom not only has
the skills required to perform particular jobs but who also "fit"
the prevailing culture of the firm.
Reward System
A Superior Quality Award can be given to anyone at anytime
due to good performance. It does not matter how long a person
has been in the organization. On an annual basis,bonuses are
given to employees whose performance exceeds their targets.
The main motivational factors are bonuses, pay-raises,
promotions and Awards.
Punishment System
Punishment is not necessary and common. Each and every
employee knows that if they have to survive in the
organization, they have to work hard for it. Everyone is
expected to work. There are at least 3 jobs for one person. If
punishment is absolutely necessary, it is usually in the form of
a verbal warning and in some extreme cases, termination.
Service Department
Indus Motor Company Ltd Service Department strives for
complete customer satisfaction. We service any make or model
and our workshop trained master technicians have the

experience and expertise to have your vehicle serviced the

correct way the first time. Let us be your automotive servicing
specialists.TAM service Department undertaken extensive
training of its service staff by sending them to attend 30specialized course conducting over a year for service
managers/service advisors, service Engineers and Technicians
by the Indus Motor Company.
Equipped Workshop
The company?s workshops are equipped with highly
sophisticated and latest technology equipments and providing
services to the customers.
Engine Analyzers
Computerized 4 wheel alignment equipment
Paint Booths
Special Service Tools
Post Auto Lifts
Wheel Balancer
Frame Aligner (some dealers)
Wide Range of Garage Equipment
Body Repairing Equipment
Electrical Service Equipment
Toyota technicians are well-trained specialists. And they are
receiving the latest service information through technical
bulletins, service tips, and in-dealership training programs.
They learn to work on Toyotas before they work on your
vehicle, rather than while they are working on it. The service
department will perform all of the scheduled maintenance on
your vehicle ? reliable and economical.
Free OIL & FILTER Change Jan 2007
?Toyota Customer Care? philosophy arranges a number of
complimentary services for our valued customers round the
year.
Cuore Free OIL change
Corolla & Cuore Free A/C Check Up Campaign March 2007
Spare Parts Department
Firm has a shop for availability of genuine parts of all sorts of
Toyota / Cuore Motor Cars for the convenience of his
customers.
Our Shining Stars Speak for themselves

We ensure the genuineness of the parts that go into your

vehicle.
We guarantee long life and optimum performance of parts.
That's why; we provide warranty for all genuine parts.
We provide technical assistance for the right choice of parts.
Toyota & Daihatsu Genuine parts Advantage
Better & Smoother engine performance.
Improved efficiency in fuel consumption.
Ensures trouble free driving.
Quality parts supply through strict quality check by Toyota
Motor Corporation & Daihatsu Motor Company.
Designed by Toyota to fit in your vehicle.
Durability coupled with lasting quality performance.
Proves to be cost effective in the long run due to increased life
of genuine parts.
STAFFING PROCEDURE
Employees are an expensive and vital resource. Toyota
mangers manage recruitment and selection, training and
development, and rewards and remuneration. Indus Motors
consider their employees as human capital. The mission and
objectives of the Indus Motors is the driving force behind the
HRM strategy.
Recruitment
Selection
Training and development
Compensation
Maintenance
Recruitment
They advertise the vacancies using the mass media.
They collect the Rsums via mail, email; through online
application on their web site.
They prefer people who are energetic not the people who come
with reference.
They select the person after panel interview.
In some vacancies the candidate had to pass written test.
LEADING FUNCTION
EMPLOYEES COMPENSATION AND BENEFITS
Health benefits
Activities to prevent six types of accidents which may cause

death or disability (caught in machines, contact with heavy

objects, contact with vehicles, falls, electrocution, and contact
with heated objects)
Designated occupational diseases: Injury from dust and noise,
or musculoskeletal disorders
Inherent safety: Completely eliminate or reduce the risk of
accidents associated with work or equipment so as to pursue
intrinsic safety at the workplace at the equipment design stage
Completely healthy Toyota employees: Ratio of those with the
A rank of health management ratings (no problems found
during health checks, and not receiving medical treatment.
The ratio of Toyota employees whose health-related work
restrictions were lifted:
Meal Check System
A system for confirming and evaluating individuals' food
consumption patterns, using data of their food and drink
consumption in the cafeteria
INCENTIVES AND MOTIVATION
MOTIVATIONAL TECHNIQUES IN PRACTICE AT TOYOTA:
THE NAME OF TOYOTA ITSELF
The basic motivational factor for employees working in Toyota
is the Goodwill of the company itself and also the Life-time
Employment policy (no firing is done, until forgery or any other
such criminal activity done by the employee) of the company.
OPEN COMMUNICATION CHANNELS:
An open and informal sort of an environment is to be observed
at Toyota with fully encouraging communication channels. An
important thing and unusual thing to be seen here is that there
is no cabin system, i.e. no separate cabins or rooms are made
for top management but they remain on the go to keep in
touch with the lower management and the workers commonly
called as Team members.
ON JOB TRAINING:
The company has a policy that as soon as a person joins its
workforce, he/she is provided a proper training to fit into the
job responsibility given to him/her. This phase of training is
prior to accepting the job responsibilities. But the on job
training, to overcome situational problems being faced by the
employees, is also very common at Toyota. The TNA (Training

Need Analysis) is a method of evaluating personal capabilities

is also an example of on job training, which is in common
practice at the company.
ADDITIONAL BENEFITS:
Indus Motor Company provides a number of benefits to retain
its valued employees and to decrease turnover like:
Medical insurance for employees and their families.
Loans like home loans, etc.
Pension after 10 years of service.
Casual and medical leave.
Transport facilities.
Lunch facilities.
Apart from providing the lunch, the company has a very
interesting tradition of serving a glass of milk every hour to
each of the factory workers considering their intense
physical work.
Maternity leave of 3 months.
Separate entertainment budget for every department.
Team members (factory workers) are provided with Hajj and
Umrah facilities every year through a lucky draw for 4 to 5
members at each time
Upper hierarchy in the company is also provided with an
additional benefit of some Club membership for the family.
Another unique benefit at Indus Motor Company is charity for
needy employees by the Habib group through secrecy.
Indus Motor Company also has a Cricket team of its own to
provide entertainment and to enhance enthusiasm in the
employees, for which the selection is done purely on ability
basis.
CARE AND SAFETY:
Toyota values its employees a lot and considers them as a
family. Therefore, in order to increase awareness about safety
measures, it provides two types of safety education to its team
members. One is through improving the technical capabilities
employees need for particular jobs, and the other is by
providing knowledge through collective education for
managers and general plant employees.
Also the formation of small employee groups to discuss the
potential dangers at the work sites is a very common activity in
the company. The SHE Department (Safety, Health and
Environment department) on regular basis, get the employee

informed for health and safety measures through e-mails.

USE OF MBO:
Management by objectives is the method of emphasizing
participative set of goals that are tangible, verifiable, and
measurable. It converts the overall organizational objectives
into specific objectives for organizational units and individual
members. This method helps managers to motivate their
subordinates in such a way that they themselves feel
responsible in achieving the organizational goals as they have
been a part in the goal setting of their own department.
MEETINGS AS REINFORCEMENT SCHEDULES:
Indus Motor Company uses a number of different types of
meetings as reinforcement schedules to increase the desired or
to decrease the undesired behavior of its workforce. The
examples of such meetings include:
3M?s meetings (Muri = over burden, Muda =waste, Mura =
unevenness) to eliminate the wasteful activities of the
departments every Monday with the CEO.
OBEHYA meetings (the standing meeting) to judge the
performance and progress of each department every Tuesday
with the directors and the CEO of the company.
Monthly review meetings of the departments themselves with
their Directors, in which the progress of the department and
the personal performances of the concerned employees is
evaluated.
QRM meeting (Quality Review Meeting) of the departments
every month with the CEO.
ACT # 1 meeting with the Chairman every month
INCENTIVES AND REWARDS SYSTEMS:
Indus Motor Company believes in encouraging the
performance of its employees to motivate them to remain
performing at their best in the company?s interest. Some of
its rewards systems are mentioned below:
Bonuses (profit sharing) on performances and hierarchy level
on basic salary.
The company gives Employee of the month award to all the
best performers during the month.
The employees are also entitled to Employee of the year
award, which is presented to the best performer on the Annual
Family Day.
The higher management also uses a system of sending

motivational e-mails to each and every department in order to

praise the performance of an employee in a certain
department for positive reinforcement.
PERFORMANCE APPRAISALS:
Every year the company gives performance based appraisals in
the form of increments and benefits. A minimum of Rs.200/=
is given to every employee, but this increment is disliked and
indicates that the person has shown zero performance during
the year.
JOB ENRICHMENT TECHNIQUES:
Certain job enrichment techniques are also in practice at Indus
Motor Company to maintain interest of the workforce in their
job responsibilities, for instance:
Every team member is a Line Inspector, and can stop the line
of production even for small defects.
Suggestive system is very encouraging technique to enhance
creativity among the workers by taking part in the decisionmaking for the improvement of working techniques and
conditions.
Another important technique is the KAIZEN Marathon (search
for a better way to reduce time and cost) in which the QC
Circle (quality control) employees conduct research based
activities for the improvement in working conditions, job
descriptions and job responsibilities.
EMPLOYEES TRAINING & CAREER DEVELOPMENT PROGRAM

Students Paper:
DEVELOPMENT PROGRAM
Toyota seeks to develop human resources through the activity
of making things. Toyota believes that the development of
human resources requires the handing down of values and
perspectives. Toyota is building
http://www.toyota.co.jp/en/environmental_rep/03/jyugyo
in03.html
Eiji Toyoda, Toyota seeks to develop human resources
through the activity of making things. Toyota believes that the

development of human resources requires the handing down of

values and perspectives. In conjunction

Students Paper:
and perspectives. Toyota is building both tangible (a new
learning facility) and intangible (course content) structures
relating to team member development that ensures a secure
and steady flow of qualified human resources to conduct
Toyota's global business in the 21st century.
Toyota conducts systematic company
http://www.toyota.co.jp/en/environmental_rep/03/jyugyo
in03.html
priority issue. Toyota is building both tangible (a new
learning facility) and intangible (course content) structures
relating to team member development that ensures a secure
and steady flow of qualified human resources to conduct
Toyota's global business in the 21st century. Fully

Students Paper:
21st century.
Toyota conducts systematic company-wide and divisional
training and assignments for training purposes with an
emphasis on on-the-job training (OJT) to ensure that associates
can fully utilize their abilities.
Toyota has defined the required qualifications of "professional
staff"1 for office
http://www.toyota.co.jp/en/environmental_rep/03/jyugyo
in03.html
Resources Development Toyota conducts systematic
company-wide and divisional training and assignments for
training purposes with an emphasis on on-the-job training (OJT)
to ensure that associates can fully utilize their abilities.
Toyota has defined the required qualifications of "professional
staff"1 for

 "1 for
Students Paper:
staff"1 for office and engineering positions, and "T shaped
human resources"who are
http://www.toyota.co.jp/en/environmental_rep/03/jyugyo
in03.html
1 for office and engineering positions, and "T shaped human
resources"2 who
"who
Students Paper:
resources"who are able to perform day-to-day activities
and expand their skills in technical positions. Company-wide
training is conducted based on employee qualifications, as well
as specialized training for individual divisions, language
training, and special knowledge and skill training.
In order to
http://www.toyota.co.jp/en/environmental_rep/03/jyugyo
in03.html
2 who are able to perform day-to-day activities and expand
their skills in technical positions. Company-wide training is
conducted based on employee qualifications, as well as
specialized training for individual divisions, language training,
and special knowledge and skill training.
In October 2002

Students Paper:
skill training.
In order to promote the development of Global Toyota and the
transfer of authority to local entities, Toyota's management
philosophies, values and business methods, that previously
had been implicit in Toyota's tradition, were codified. Based on
the dual pillars of "Respect for People" and "Continuous
Improvement," the following five key principles sum up the

Toyota employee conduct guidelines: Challenge, Kaizen

(improvement), Respect, and Teamwork. In
http://www.toyota.co.jp/en/environmental_rep/03/jyugyo
in03.html
should embrace. In order to promote the development of
Global Toyota and the transfer of authority to local entities,
Toyota's management philosophies, values and business
methods, that previously had been implicit in Toyota's tradition,
were codified. Based on the dual pillars of "Respect for People"
and "Continuous Improvement," the following five key
principles sum up the Toyota employee conduct guidelines:
Challenge, Kaizen (improvement), Genchi Genbutsu

Students Paper:
Kaizen (improvement), Respect, and Teamwork. In 2002,
these policies were advanced further with the adoption of the
Toyota Way for individual functions, including overseas sales,
domestic sales, human resources, accounting, procurement,
etc.
SAFETY & TRAINING
http://www.toyota.co.jp/en/environmental_rep/03/jyugyo
in03.html
and see), Respect, and Teamwork. In 2002, these policies
were advanced further with the adoption of the Toyota Way for
individual functions, including overseas sales, domestic sales,
human resources, accounting, procurement, etc. Toyota
.
SAFETY & TRAINING
For physical well-being and health of the employees safety
training is essential ?safety first? attitude ensures the health of
the employees.
APPRENTICE TRAINING PROGRAM
Apprenticeship training program which was started in Nov
1992 is now well institutionalized and continues to benefit both

the individual and the organization, in terms of development of

quality and well trained resources. A total number of 362,320
training man hours have been imparted under its scheme since
its inception.
CONTROLLING
CONTROLLING COMPANY?S RESOURCES
Toyota has achieved a reputation for the production of very
high quality vehicles in all countries around the world. This has
been achieved by an approach to quality control and quality
assurance, which is unique to Toyota and has been developed
over many years.
DEFINING THE WORKFORCE DIVERSITY
The workforce diversity is the heterogeneity or diversification
in the employees in an organization on the basis of certain
demographic characters, such as race, age, gender, ethnicity,
religion, nationality etc. nowadays workforce diversity
encompasses anyone who varies from the so-called norms.
Therefore in addition to the above mentioned groups, the
diversification in employee workforce can also be analyzed the
basis of marital status and tenure.
MANAGING THE WORKFORCE DIVERSITY:
Now with the changing environment and more awareness of
personal rights throughout the world, we realize that the
employees do not set aside their cultural values and lifestyle
preferences when they come to work. The challenge for
today?s organizations, therefore, is to make them more
accommodating to diverse groups of people by addressing
their different lifestyles, family needs and work styles. Thus,
the shifting from the traditional management practice of
treating everyone alike, towards recognizing the differences
present in the workforce and responding to, but not
discriminating those differences, is of major importance to the
managers of today. It can ensure employee retention, greater
productivity, increase creativity and innovation, improves
decision making by different perspectives of Diversified
workforce.
MOTIVATION AS A TECHNIQUE TO MANAGE THEWORKFORCE
DIVERSITY:
Motivation is the willingness to exert high levels of effort
toward

Students Paper:
effort toward organizational goals, conditioned by the effort?
s ability to satisfy some individual need. It plays a
http://www.globalspec.com/reference/24312/203279/wh
at-is-motivation
to reach organizational goals, conditioned by the effort s
ability to satisfy some individual need .

It is also
plays a vital role the workforce diversity in order to achieve
the organizational goals. Thus, by knowledge of the wide range
of the motivational theories, the managers are able to properly
understand the individual needs of the employees and can also
use them for handling the diversification issues in the
organization.
COMPANY WIDE CONTROL QUALITY
Customer satisfaction is at the heart of all Toyota activities. In
order to satisfy customer needs Toyota includes all Members in
quality control activities. Everybody from research and
development to manufacturing, retailing and servicing
contribute to the quality control process. All Members have two
roles, their own job and quality assurance. At Toyota we call
this ?Companywide quality control?. Customer satisfaction is at
the heart of all Toyota activities. In order to satisfy customer
needs Toyota includes all Members in quality control activities.
Everybody from research and development to manufacturing,
retailing and servicing contribute to the quality control process.
All Members have two roles, their own job and quality
assurance. At Toyota we call this ?Companywide quality
control?.
Some people understand quality assurance to mean thoroughly
inspecting parts after they are made or by promptly complying
with claims on products in the market. This is not the belief at
Toyota. Total quality control is carried out using two basic
principles: quality is built in at every stage and quality is
continually improved.

To achieve total quality control Toyota Manufacturing UK

involves each and every Member to ensure that only the best
work is passed on to the next process. The use of standardized
work together with visual control clearly indicates the current
status in which our industry is operating. This makes it very
easy to spot problems or unusual conditions as they occur.
Strict adherence to standardized work is vital.
Each Member is responsible for the quality of his or her work
and aims never to pass on poor quality to the next stage. If
anything unusual is noticed, the Member can pull the andon
cord (a cord runs alongside the whole length of the production
line), which stops the process, allowing time to investigate and
confirm the quality before continuing.
If the Member pulls the andon cord, this action summons
assistance from their Team Leader, by lighting up a number
corresponding to their workstation on one of the many andon
boards hanging overhead. If the problem can be rectified within
that Member?s process time, that is the time it takes for the
car to pass through the Member?s workstation, then the line
does not actually stop.

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Master document text

CHAPTER 5
ORGANIZATION?S MANAGERIAL FUNCTIONS
PLANNING
STRATEGIC OBJECTIVES
Achieving Market Leadership by Delivering Value to Customers
Following our ?Customer First? philosophy in manufacturing
and providing high quality vehicles and services that meet the
needs of Pakistani customers.
Enhancing the quality and reach of our 3S Dealership Network.
Employing customer insight and feedback for continuous
corporate renewal, including product development, improving

service and customer care.

Bringing Toyota Quality to Pakistan
Maximizing QRD (Quality, Reliability and Durability) by built-in
engineering.
Transferring technology and promoting indigenization at Indus
Motor Company and Vendors.
Raising the bar in all support functions to meet Toyota Global
Standards.
Optimizing Cost by Kaizen
Fostering a Kaizen culture and mindset at Indus Motor
Company, its Dealers and Vendors. Implementing Toyota
Production System.
Removing waste in all areas and operating in the lowest cost
quartile of the industry.
Respecting our People
Treating employees as the most important sustainable
competitive resource.
Providing a continuous learning environment that promotes
individual creativity and teamwork.
Supporting equal employment opportunities, diversity and
inclusion without discrimination.
Building competitive value through mutual trust and mutual
responsibility between the Indus Team and the Company.
Becoming a Good Corporate Citizen
Following ethical business practices and the laws of the land.
Engaging in philanthropic and social activities that contribute
to the enrichment of Pakistani society, especially in areas that
are strategic tooth societal and business needs e.g. Road
Safety, Technical Education, Environment Protection, etc.
Enhancing corporate value and respect while achieving a
stable and long-term growth for the benefit of our
shareholders.
(Annual Report, 2010)
RULES & REGULATIONS
The prices are suggested Retail price, Ex-factory price per unit

inclusive of sales tax

Any impact in prices due to change in government levies, tariff,
fiscal policies, import policies etc. will be in customers account
The above prices are provisional and subject to change without
any prior notice
Prices at time of delivery will be final
Prices are exclusive of transportation, transit insurance charges
etc. which are to be charged at the time of delivery
Order taken from customer is governed by the provisional
booking order form(PBO) and is under its terms and conditions
Our principal M/s Indus Motor Company Ltd reserves the right
to change the specification without any notice
(Toyota Azad Motors, 2012)
ORGANIZING
DEPARTMENTAL FUNCTIONS
DEPARTMENTALIZATION
It means the process of group related work activities into
manageable units is called departmentalization.
Departmentalization is being very. Common in every
organization as it facilitates the working of the organization.
This concept of departmentalization following departments
which are working out there:
Marketing
Finance
Customer Relations
Sales
Human Resource
Service
Spare parts
Planning
Logistic cells
Marketing Department
The marketing department of the firm comprises of highly
qualified, dedicated and hardworking team, equipped with the

latest marketing techniques.

Customer Relation (CR) Department
The Customer relation department is one of the most
important departments which can control all the activities
perform for the retention and benefit the customers. We
believe in perpetual improvement in all fields of services and
facilities as per Toyota & Daihatsu Standards applicable
globally, through regularly conducting Training & workshops to
enhance knowledge and share experience of our fellow
National CR- member and globally available experience of
Toyota.
Toyota Customer relations Ideals
Creating corporate trust based on integrity on integrity and fair
handling of Complaints.
Opening a larger window for customers.
Swift and sure handling of ?Inquiries & Complaints?
Making the? Voice of the customers? the basis for corporate
renewal.
Improving corporate image and better informing customers to
support Sales and Service activities
Finance Department
The Finance department is related to the accounts handling,
the customer drafts for the booking of cars to the Indus Motor
Company and the employees? salaries, records of the
transactions. The salaries are giving on their ranks like the top
management salaries are sent to their accounts while the
lower level employees are gives cash salaries on the spot from
the account department.
Capital
The Capital and Reserve of the firm are Rs. 38,000,000.00.
Sales Department
The Sales department is related to the sales of the Vehicles,
The Sales department includes Customer Services (CS), Vehicle
Delivery Inspection Quality (VDIQ), Record Maintenance, and

Inquiries & Complaints Handling.

Customer Services (CS)
Customer service department is related to the external
customer who is come to Toyota for the purchasing and
booking of the Toyota Vehicle of any variant. The Customer
service staff is well trained and sophisticated person because
these are the people who can play an important role in the
sales of a firm.
Record Maintenance
This department deals with the data/information about any
customer and this shows comprehensive information about the
customer data. Through this department the top management
can see the sales and the demand of the booking of the cars.
The record is maintained in this department is totally on the
manual work, but the firm wants to made a computerized
system.
Vehicle Delivery Inspection Quality (VDIQ)
This department deals with the overall checking of the Vehicle
at the time of arrival and the selling to customer. At arrival
stage, the vehicle that come from the Indus Motor Company
the Inspector check the vehicle and if any default occurs then
it claim to the Indus Motor Company. At the Selling perspective
the inspectors check the vehicle so that the customer are more
facilitate rather they have any problem faced after the
purchasing.
Inquiries & Complaints Handling
Another Department is also there that handles the Inquires and
complaints of the Customers. As Indus Motor Company launch
software namely ?Voice of Customer? so that the customers
can easily put their information directly to the Company
through the dealers.
7-Steps of Complaint Handling
Step # 1 Receive the Complaint
Step #2 Look Listen and Learn (3Ls)

Step #3 Get the Facts

Step #4 Determine ?Root Cause? and Responsibility
Step #5 Explain your decision then get Agreement
Step #6 Take Prompt Action
Step #7 Follow-up
Human Resource Department
Human resource refers to the activities an organization carries
out to use its human resource effectively. These activities
include determining the firm's human resource strategy,
staffing, performance evaluation, management development,
compensation, and labor relations. Indus Motor Company
Limited is also running department of HR for hiring and
compensating the employees of the firm. HR function to pay
significant attention to selecting individuals whom not only has
the skills required to perform particular jobs but who also "fit"
the prevailing culture of the firm.
Reward System
A Superior Quality Award can be given to anyone at anytime
due to good performance. It does not matter how long a person
has been in the organization. On an annual basis,bonuses are
given to employees whose performance exceeds their targets.
The main motivational factors are bonuses, pay-raises,
promotions and Awards.
Punishment System
Punishment is not necessary and common. Each and every
employee knows that if they have to survive in the
organization, they have to work hard for it. Everyone is
expected to work. There are at least 3 jobs for one person. If
punishment is absolutely necessary, it is usually in the form of
a verbal warning and in some extreme cases, termination.
Service Department
Indus Motor Company Ltd Service Department strives for
complete customer satisfaction. We service any make or model
and our workshop trained master technicians have the
experience and expertise to have your vehicle serviced the

correct way the first time. Let us be your automotive

servicing specialists.TAM service Department undertaken
extensive training of its service staff by sending them to attend
30-specialized course conducting over a year for service
managers/service advisors, service Engineers and Technicians
by the Indus Motor Company.
Equipped Workshop
The company?s workshops are equipped with highly
sophisticated and latest technology equipments and providing
services to the customers.
Engine Analyzers
Computerized 4 wheel alignment equipment
Paint Booths
Special Service Tools
Post Auto Lifts
Wheel Balancer
Frame Aligner (some dealers)
Wide Range of Garage Equipment
Body Repairing Equipment
Electrical Service Equipment
Toyota technicians are well-trained specialists. And they are
receiving the latest service information through technical
bulletins, service tips, and in-dealership training programs.
They learn to work on Toyotas before they work on your
vehicle, rather than while they are working on it. The service
department will perform all of the scheduled maintenance on
your vehicle ? reliable and economical.
Free OIL & FILTER Change Jan 2007
?Toyota Customer Care? philosophy arranges a number of
complimentary services for our valued customers round the
year.
Cuore Free OIL change
Corolla & Cuore Free A/C Check Up Campaign March 2007
Spare Parts Department

Firm has a shop for availability of genuine parts of all sorts of

Toyota / Cuore Motor Cars for the convenience of his
customers.
Our Shining Stars Speak for themselves
We ensure the genuineness of the parts that go into your
vehicle.
We guarantee long life and optimum performance of parts.
That's why; we provide warranty for all genuine parts.
We provide technical assistance for the right choice of parts.
Toyota & Daihatsu Genuine parts Advantage
Better & Smoother engine performance.
Improved efficiency in fuel consumption.
Ensures trouble free driving.
Quality parts supply through strict quality check by Toyota
Motor Corporation & Daihatsu Motor Company.
Designed by Toyota to fit in your vehicle.
Durability coupled with lasting quality performance.
Proves to be cost effective in the long run due to increased life
of genuine parts.
STAFFING PROCEDURE
Employees are an expensive and vital resource.
Toyota mangers manage recruitment and selection, training
and development, and rewards and remuneration.
Indus Motors consider their employees as human capital. The
mission and objectives of the Indus Motors is the driving force
behind the HRM strategy.
Recruitment
Selection
Training and development
Compensation
Maintenance
Recruitment
They advertise the vacancies using the mass media.

They collect the Rsums via mail, email; through online

application on their web site.
They prefer people who are energetic not the people who come
with reference.
They select the person after panel interview.
In some vacancies the candidate had to pass written test.
LEADING FUNCTION
EMPLOYEES COMPENSATION AND BENEFITS
Health benefits
Activities to prevent six types of accidents which may cause
death or disability (caught in machines, contact with heavy
objects, contact with vehicles, falls, electrocution, and contact
with heated objects)
Designated occupational diseases: Injury from dust and noise,
or musculoskeletal disorders
Inherent safety: Completely eliminate or reduce the risk of
accidents associated with work or equipment so as to pursue
intrinsic safety at the workplace at the equipment design stage
Completely healthy Toyota employees: Ratio of those with the
A rank of health management ratings (no problems found
during health checks, and not receiving medical treatment.
The ratio of Toyota employees whose health-related work
restrictions were lifted:
Meal Check System
A system for confirming and evaluating individuals' food
consumption patterns, using data of their food and drink
consumption in the cafeteria
INCENTIVES AND MOTIVATION
MOTIVATIONAL TECHNIQUES IN PRACTICE AT TOYOTA:
THE NAME OF TOYOTA ITSELF
The basic motivational factor for employees working in Toyota
is the Goodwill of the company itself and also the Life-time

Employment policy (no firing is done, until forgery or any other

such criminal activity done by the employee) of the company.
OPEN COMMUNICATION CHANNELS:
An open and informal sort of an environment is to be observed
at Toyota with fully encouraging communication channels. An
important thing and unusual thing to be seen here is that there
is no cabin system, i.e. no separate cabins or rooms are made
for top management but they remain on the go to keep in
touch with the lower management and the workers commonly
called as Team members.
ON JOB TRAINING:
The company has a policy that as soon as a person joins its
workforce, he/she is provided a proper training to fit into the
job responsibility given to him/her. This phase of training is
prior to accepting the job responsibilities. But the on job
training, to overcome situational problems being faced by the
employees, is also very common at Toyota. The TNA (Training
Need Analysis) is a method of evaluating personal capabilities
is also an example of on job training, which is in common
practice at the company.
ADDITIONAL BENEFITS:
Indus Motor Company provides a number of benefits to retain
its valued employees and to decrease turnover like:
Medical insurance for employees and their families.
Loans like home loans, etc.
Pension after 10 years of service.
Casual and medical leave.
Transport facilities.
Lunch facilities.
Apart from providing the lunch, the company has a very
interesting tradition of serving a glass of milk every hour to
each of the factory workers considering their intense
physical work.
Maternity leave of 3 months.
Separate entertainment budget for every department.

Team members (factory workers) are provided with Hajj and

Umrah facilities every year through a lucky draw for 4 to 5
members at each time
Upper hierarchy in the company is also provided with an
additional benefit of some Club membership for the family.
Another unique benefit at Indus Motor Company is charity for
needy employees by the Habib group through secrecy.
Indus Motor Company also has a Cricket team of its own to
provide entertainment and to enhance enthusiasm in the
employees, for which the selection is done purely on ability
basis.
CARE AND SAFETY:
Toyota values its employees a lot and considers them as a
family. Therefore, in order to increase awareness about safety
measures, it provides two types of safety education to its team
members. One is through improving the technical capabilities
employees need for particular jobs, and the other is by
providing knowledge through collective education for
managers and general plant employees.
Also the formation of small employee groups to discuss the
potential dangers at the work sites is a very common activity in
the company. The SHE Department (Safety, Health and
Environment department) on regular basis, get the employee
informed for health and safety measures through e-mails.
USE OF MBO:
Management by objectives is the method of
emphasizing participative set of goals that are tangible,
verifiable, and measurable. It converts the overall
organizational objectives into specific objectives for
organizational units and individual members. This method
helps managers to motivate their subordinates in such a way
that they themselves feel responsible in achieving the
organizational goals as they have been a part in the goal
setting of their own department.
MEETINGS AS REINFORCEMENT SCHEDULES:

Indus Motor Company uses a number of different types of

meetings as reinforcement schedules to increase the desired or
to decrease the undesired behavior of its workforce. The
examples of such meetings include:
3M?s meetings (Muri = over burden, Muda =waste, Mura =
unevenness) to eliminate the wasteful activities of the
departments every Monday with the CEO.
OBEHYA meetings (the standing meeting) to judge the
performance and progress of each department every Tuesday
with the directors and the CEO of the company.
Monthly review meetings of the departments themselves with
their Directors, in which the progress of the department and
the personal performances of the concerned employees is
evaluated.
QRM meeting (Quality Review Meeting) of the departments
every month with the CEO.
ACT # 1 meeting with the Chairman every month
INCENTIVES AND REWARDS SYSTEMS:
Indus Motor Company believes in encouraging the
performance of its employees to motivate them to remain
performing at their best in the company?s interest. Some of
its rewards systems are mentioned below:
Bonuses (profit sharing) on performances and hierarchy level
on basic salary.
The company gives Employee of the month award to all the
best performers during the month.
The employees are also entitled to Employee of the year
award, which is presented to the best performer on the Annual
Family Day.
The higher management also uses a system of sending
motivational e-mails to each and every department in order to
praise the performance of an employee in a certain
department for positive reinforcement.
PERFORMANCE APPRAISALS:
Every year the company gives performance based appraisals in

the form of increments and benefits. A minimum of Rs.200/=

is given to every employee, but this increment is disliked and
indicates that the person has shown zero performance during
the year.
JOB ENRICHMENT TECHNIQUES:
Certain job enrichment techniques are also in practice at Indus
Motor Company to maintain interest of the workforce in their
job responsibilities, for instance:
Every team member is a Line Inspector, and can stop the line
of production even for small defects.
Suggestive system is very encouraging technique to enhance
creativity among the workers by taking part in the decisionmaking for the improvement of working techniques and
conditions.
Another important technique is the KAIZEN Marathon (search
for a better way to reduce time and cost) in which the QC
Circle (quality control) employees conduct research based
activities for the improvement in working conditions, job
descriptions and job responsibilities.
EMPLOYEES TRAINING & CAREER DEVELOPMENT PROGRAM
Toyota seeks to develop human resources through the activity
of making things. Toyota believes that the development of
human resources requires the handing down of values and
perspectives. Toyota is building both tangible (a new learning
facility) and intangible (course content) structures relating to
team member development that ensures a secure and steady
flow of qualified human resources to conduct Toyota's global
business in the 21st century.
Toyota conducts systematic company-wide and divisional
training and assignments for training purposes with an
emphasis on on-the-job training (OJT) to ensure that associates
can fully utilize their abilities.
Toyota has defined the required qualifications of "professional
staff"1 for office and engineering positions, and "T shaped

human resources"who are able to perform day-to-day

activities and expand their skills in technical positions.
Company-wide training is conducted based on employee
qualifications, as well as specialized training for individual
divisions, language training, and special knowledge and skill
training.
In order to promote the development of Global Toyota and the
transfer of authority to local entities, Toyota's management
philosophies, values and business methods, that previously
had been implicit in Toyota's tradition, were codified. Based on
the dual pillars of "Respect for People" and "Continuous
Improvement," the following five key principles sum up the
Toyota employee conduct guidelines: Challenge, Kaizen
(improvement), Respect, and Teamwork. In 2002, these policies
were advanced further with the adoption of the Toyota Way for
individual functions, including overseas sales, domestic sales,
human resources, accounting, procurement, etc.
SAFETY & TRAINING
For physical well-being and health of the employees safety
training is essential ?safety first? attitude ensures the health of
the employees.
APPRENTICE TRAINING PROGRAM
Apprenticeship training program which was started in Nov
1992 is now well institutionalized and continues to benefit both
the individual and the organization, in terms of development of
quality and well trained resources. A total number of 362,320
training man hours have been imparted under its scheme since
its inception.
CONTROLLING
CONTROLLING COMPANY?S RESOURCES
Toyota has achieved a reputation for the production of very
high quality vehicles in all countries around the world. This has
been achieved by an approach to quality control and quality
assurance, which is unique to Toyota and has been developed

over many years.

DEFINING THE WORKFORCE DIVERSITY
The workforce diversity is the heterogeneity or diversification
in the employees in an organization on the basis of certain
demographic characters, such as race, age, gender, ethnicity,
religion, nationality etc. nowadays workforce diversity
encompasses anyone who varies from the so-called norms.
Therefore in addition to the above mentioned groups, the
diversification in employee workforce can also be analyzed the
basis of marital status and tenure.
MANAGING THE WORKFORCE DIVERSITY:
Now with the changing environment and more awareness of
personal rights throughout the world, we realize that the
employees do not set aside their cultural values and lifestyle
preferences when they come to work. The challenge for
today?s organizations, therefore, is to make them more
accommodating to diverse groups of people by addressing
their different lifestyles, family needs and work styles. Thus,
the shifting from the traditional management practice of
treating everyone alike, towards recognizing the differences
present in the workforce and responding to, but not
discriminating those differences, is of major importance to the
managers of today. It can ensure employee retention, greater
productivity, increase creativity and innovation, improves
decision making by different perspectives of Diversified
workforce.
MOTIVATION AS A TECHNIQUE TO MANAGE THEWORKFORCE
DIVERSITY:
Motivation is the willingness to exert high levels of effort
toward organizational goals, conditioned by the effort?s ability
to satisfy some individual need. It plays a vital role the
workforce diversity in order to achieve the organizational goals.
Thus, by knowledge of the wide range of the motivational
theories, the managers are able to properly understand the
individual needs of the employees and can also use them for

handling the diversification issues in the organization.

COMPANY WIDE CONTROL QUALITY
Customer satisfaction is at the heart of all Toyota activities. In
order to satisfy customer needs Toyota includes all Members in
quality control activities. Everybody from research and
development to manufacturing, retailing and servicing
contribute to the quality control process. All Members have two
roles, their own job and quality assurance. At Toyota we call
this ?Companywide quality control?. Customer satisfaction is at
the heart of all Toyota activities. In order to satisfy customer
needs Toyota includes all Members in quality control activities.
Everybody from research and development to manufacturing,
retailing and servicing contribute to the quality control process.
All Members have two roles, their own job and quality
assurance. At Toyota we call this ?Companywide quality
control?.
Some people understand quality assurance to mean thoroughly
inspecting parts after they are made or by promptly complying
with claims on products in the market. This is not the belief at
Toyota. Total quality control is carried out using two basic
principles: quality is built in at every stage and quality is
continually improved.
To achieve total quality control Toyota Manufacturing UK
involves each and every Member to ensure that only the best
work is passed on to the next process. The use of standardized
work together with visual control clearly indicates the current
status in which our industry is operating. This makes it very
easy to spot problems or unusual conditions as they occur.
Strict adherence to standardized work is vital.
Each Member is responsible for the quality of his or her work
and aims never to pass on poor quality to the next stage. If
anything unusual is noticed, the Member can pull the andon
cord (a cord runs alongside the whole length of the production
line), which stops the process, allowing time to investigate and
confirm the quality before continuing.

If the Member pulls the andon cord, this action summons

assistance from their Team Leader, by lighting up a number
corresponding to their workstation on one of the many andon
boards hanging overhead. If the problem can be rectified within
that Member?s process time, that is the time it takes for the
car to pass through the Member?s workstation, then the line
does not actually stop.