Attached.

I.

Executive Summary
i.

Department Information

ii.

Key Topics

iii.

Statement of Impact

II.

Total Rewards Design at Toyota Motors

III.

Considerations in the Development of a Total Rewards Program
i.

Company Size

ii.

Global Reach of an Organization

iii.

Content

IV.

Communication of Total Rewards Program
i.

Executives

ii.

Managers

iii.

Employees

V.

Total Rewards Branding

VI.

VII.
VIII.
IX.

Reward Components and Impact on the Sales Workforce
i.

Compensation

ii.

Benefits

iii.

Work-Life Balance

iv.

Performance and Recognition

v.

Development and Career Opportunities

Behaviors of the Salesforce Targeted by the Compensation Plan
Value Proposition
The attractiveness of the Compensation Plan for Future Salespeople

X.

Internal and External Forces
i.

Internal Forces

ii.

External Forces

XI.

Defining Benefits and Benefits Management Philosophies
“Top-Down” and “Backing-In”

XII.
i.

Top-Down

ii.

Backing-In

iii.

Organization Choice

XIII.

Outcomes

XIV.

Conclusion


Running head: TOTAL REWARDS REPORT

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Executive Summary

Department Information
The Toyota Motors Human Resource (HR) department focus is on the management of the
company's employees strategically and coherently. Employees within the company are drawn from
different backgrounds which means they come with diverse opinions, priorities, and beliefs. For
these employees to be efficient and productive, they need to be appropriately managed. The Toyota
Motors HR department is therefore committed to developing and managing value-added human
resources policies as well as programs that promote the overall productivity of the employees. By
doing this, the HR department is committed to the fair selection and development of the employees
while providing them with the tools and skills necessary for meeting customer satisfaction. The
department is guided three main goals: to value, encourage, and support the diverse workforce; to
champion career and professional growth; to keep the workforce motivated. The HR department
is involved in the following functions: human resource planning and recruiting; employee
remuneration and benefits administration; performance management, employee relation. The aim
of these functions is to maximize both employees and the company's effectiveness. Having the
understanding that the prime employee motivation and satisfaction comes from salaries and wages,
incentives, fringe benefits, and perquisites, a team of elites from the HR department was selected
to form a team for developing the total reward program for Toyota Motors.
Key Topics
The HR project team was charged with and completed the following major tasks:

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1. Coming up with a total reward design that aligns with the company's mission and vision
statement, as wells as the value systems of the company. The adopted total reward design
entails the payment of employees through profit sharing and company ownership options.
2. Identification of the three primary factors that come into play during the design and the
development of the total reward program. These factors are company size, global research of
an organization, and content.
3. A description of the emphasis of communicating total rewards programs to executives,
managers, and employees.
4. Identification of the importance and purpose of the total rewards branding, and the role of HR
in total rewards branding.
Statement of Impact
The total rewards program is an effective tool for communicating the company's
investment value. While the, overall of the HR department is to hire and maintain a motivated
workforce, the development of the total rewards program comes handy with these goals. The
information obtained above will help the company to identify opportunities for growth. The
company will be able to locate missing gaps within existing programs and redesign them in a bid
to increase productivity. It will also help the company to improve the employees understanding of
their total benefits package as well as enhancing the communication between the company and the
employees. The prime employee motivator is the benefits they obtain from their workplaces.
Implementing a total rewards package will not only make employees motivated and satisfied but
will also raise their morale. Motivated employees are more productive. Employees seek
employment where they will get satisfaction. Having a total rewards package in place, employees
will want to be associated with the company.

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Total Rewards Design at Toyota Motors
The total rewards compensation plan at Toyota motors is established based on the
company’s mission and vision statements. The corporate mission of the firm is geared towards
the attraction of customers by offering high-quality products and services as well as giving the
vehicle users a satisfying ownership experience. To support this mission, Toyota Motors’ vision
is to become the most successful as well as a respected car company in America. To achieve this
vision, the company takes into consideration the vital contribution of its workforce towards the
achievement of its objectives (Besser, 1995). It is critical that a total rewards strategy considers
the value added to the organization created by a happy and committed workforce.
Toyota Motors considers its business strategy in the design of a total reward strategy for
its employees. The company’s business strategy is made up of a combination of the cost
leadership and the differentiation strategy. As such, the firm seeks to minimize the costs involved
in the design and manufacture of its brand of vehicles as well as the development of business and
product uniqueness to ensure the firm’s competitive advantage in the motor vehicle industry. The
strategies have been critical in supporting the company’s global reach in all the market segments.
To achieve success in operation, Toyota Motors depends on its employee’s commitment to
minimization of costs as well as the design and manufacture of unique products to meet the
firm’s overall objectives. To achieve the business strategies of the company, the management of
Toyota Motors takes into consideration the prices for its products, the design and manufacture of
high-quality vehicles, product innovation and creativity to ensure differentiation as well as
excellence in service for attraction and retention of customers (Noe et al., 2006). The company
also capitalizes on the marketing and sales of its products to generate adequate revenue and to

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realize profits as well as timely production to meet the consumer needs and demands for its
products.
Toyota Motors defines its human resource philosophy and strategy based on the firm’s
mission and vision as well as the business strategies employed for competitiveness and
leadership in the auto manufacturing industry. The company clearly states the values placed on
its employees as they are considered the most critical element for the firm’s performance and
profitability in the competitive industry. The compensation plan of Toyota Motors touches on
recruitment, talent development and retention of staff to ensure optimal productivity and
performance of the company.
The final stage in the design of a total rewards program is the definition of the total
rewards strategy that gives the rewards-mix that is adopted by a company regarding payments
made to its employees. At this point, the management of a company determines the optimal mix
between the various elements of a total reward program appropriate for attraction and retention
of top talent for optimal performance in the company.
The compensation plan adopted by Toyota Motors seeks to ensure optimal treatment of
its critical assets, the employees, through a compensation plan that adequately meet their needs.
The merit-based compensation approach adopted by the firm is vital in the promotion of equal
pay at all levels of the management of the company (Lyons & Ben-Ora, 2002). The plan also
seeks to promote equality in contribution, improvement in capacity building and experience of
employees. The total rewards strategy adopted by the company involves the payment of wages to
employees with strict adherence to the compensation ...