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Located in the Far East looking from North America

Total: 127.1 million (Aug.2001) 12 million in Tokyo

377,873 square kilometers68% mountains .the same size as Montana and slightly smaller than California. 

Source: Web Japan & Japanese Consulate General, San Francisco

3Source: Web Japan & Japanese Consulate General, San Francisco

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“Cool Japan”Japanimation“KAWAII”

GDP (2007 est.): $5.103 trillion (official exchange rate); $4.34 trillion (PPP).

Real growth rate (2007 est.): 1.9%. Per capita GDP (2007 est. PPP): $33,800.

Natural resources: Fish and few mineral resources.

Agriculture: Products--rice, vegetables, fruit, milk, meat, silk.

Industry: Types--machinery and equipment, metals and metal products, textiles, autos, chemicals, electrical and electronic equipment.

Japan's industrialized, social market economy is the world's third-largest, adjusted to purchasing power parity (PPP), after the United States and People's Republic of China.

Also, Japan is the world's second-largest economy by real GDP, nominal GDP and by market exchange rates. Its economy is highly efficient and competitive in areas linked to international trade although productivity is lower in areas such as agriculture, distribution, and services.

Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation have helped Japan advance with extraordinary speed to become one of the largest economies in the world.

Its reservoir of industrial leadership and technicians, well-educated and industrious work force, high savings and investment rates, and intensive promotion of industrial development and foreign trade have produced a mature industrial economy. Japan has few natural resources, and trade helps it earn the foreign exchange needed to purchase raw materials for its economy.

Distinguishing characteristics of the Japanese economy include the cooperation of manufacturers, suppliers, distributors, and banks in closely-knit groups called keiretsu; the powerful enterprise unions and shuntō; cozy relations with government bureaucrats, and the guarantee of lifetime employment (shushin koyo) in big corporations and highly unionized blue-collar factories. Recently, Japanese companies have begun to gradually move away from some of these norms in an attempt to increase their global competitiveness and profitability (the latter due mostly to their increased reliance on equity rather than debt financing).

For three decades, Japan's overall real economic growth had been spectacular: a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s.

Entry Process and Screening Process : In addition to regular hiring of new

graduates, there are many cases of mid-career hiring throughout the year.

many companies in the IT sectors suffer from a shortage in talents whose skills can be put in use immediately

Pay System : Although the industry requires highly

specialized expertise, many project activities take place in work groups for a long period of time; so, it is difficult to give incentive to individual performances

As a result, the industry tends to adopt a pay system based on seniority

Even employees hired for mid-career often take on a post for employees of the same age

Many companies are now reviewing this system to prepare one based on performance.

Since there are many activities based on projects, it is difficult to evaluate performance and contribution every half fiscal year and to assess individual’s performance

. As a result, it is common for companies to make a team assessment by project.

companies actively support employees to improve their technical skills and to acquire qualifications.

Promotion and Job Rotation : Because high technical specialty is

required, it is rare to transfer employees to a job that is totally different from their specialty after the first assignment.

Working Conditions : Employees are allowed to work in casual

wear. Many companies give employees a high degree of freedom and adopt a flexi-time system.

Entry Process and Screening Process : Hiring activities are conducted throughout

the year to reduce training costs, mid-career hiring is

conducted to obtain employees who can work at the workplace immediately

Because names of companies are not well known to the general public, recruitment activities are mainly conducted through employment agencies.

To secure talented employees, companies actively participate in seminars held by the industry and take aggressive actions for publicity.

Salary Determination Factors : Because most of employees are mid-career

workers hired irregularly, salaries are determined based on jobs and an annual salary system

Although evaluations by superiors are basically taken into consideration, payments are often determined with the approval of the president, who can evaluate skills of each employee

Because appraisal is one of factors to determine salaries, it is a rule to hold interviews with superiors once or twice a year for determining or reviewing the pay.

Since there is no systematic training program prepared, basically skills are improved mainly by the employee’s self-training.

As high technical expertise is required, many companies financially support employees to acquire qualifications and attend lectures held outside companies.

Retirement : Compared with other industries, turnover is

conducted frequently because external labor market is well developed.

To enhance flexibility of personnel costs, companies utilize temporary workers for administrative jobs as much as possible. (Temporary workers account for about 20% of total employees.)

Employee’s Benefits : There are no personal allowances (family

allowance etc.) but, in many cases, they are included in funds for a salary and a bonus.

retirement allowance is also included in a salary.

Planning for Required Personnel and Job Design :

•Each department makes a request for required personnel when it draws up fiscal plan as well as annual plan. (Number of required personnel is reported separately for new graduates and mid-career workers.)

Entry Process Recruiting is conducted at seminars and

meetings to explain the company’s activities. The company announces in advertisements and through web sites.

Screening Process Hiring is conducted throughout the year and

applicants can register at any time. However, it is customary to recruit new employees in April and October.

Mid-career workers are classified into two types: “workers with expertise which can start working right after hiring” and “workers who require two or three years of in-house training.” The company hires the first type.

Salary Determination Factors : Broadband-type skill rank system is

adopted. As a head of line is considered as an ordinary role, no special title allowance is provided.

Monthly salary comprises only base pay and allowance for professionals. Annual salary system is applicable to part of employees.

Pay System:

Salary is determined by base pay and allowance for professionals. (all the employees are).

Regular increase in base pay is conducted in April. (However, there are cases of demotions for professional grades.)

Skill Formation at the Workplace:

Some divisions adopt a tutoring system. Tutors instruct and nurture new graduates during the first year at the company.

At some divisions, new graduates are rotated within the division every half a year.

Off-the-Job-Training : It is possible for employees to choose

training items according to their wishes. (Taking lectures based on their own selections) In-house intranet is used during part of the training.

Training by career groups is conducted at the time of promotion. The training gives an opportunity to raise employees’ awareness of skills required for their next career group.

Promotion and Job Rotation : Each department takes charge of rotations

within the same department, while the personnel department takes charge of rotations among different ones.

For promotion, a graduation system is adopted. In each stage, employees who have met required specifications are promoted.

Transfer requests are collected by employees’ own requests once a year.

Employment Adjustment and Retirement :

Notice of volunteer resignation should be basically made two weeks before, but it is usually made one to two months before.

Transfers to group companies have been made previously. However, since this is based on a review of organizational operations as well as employees’ own requests, it is different from employment adjustment.

Employee’s Benefits, etc :

About 14 to 15 employees take a childcare leave every year. Reduction of working hours is adopted for up to two years. Employees themselves can determine the timing to come back to the workplace after a childcare leave.

Allowances for housing and family have been reviewed and only an allowance per professional is provided. However, a housing allowance is paid to married employees for their first one to three years of employment.

Toyota started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda.

It's first vehicles were the A1 passenger car and the G1 in 1935.

Toyota Motor Co. was established as an independent and separate company in 1937.

Toyota is headquartered in Toyota City and Nagoya (both in Aichi), and in Tokyo.

Toyota employs approximately 316,000 people around the world.

Toyota sees diversity as a pathway to create a better Toyota. Success in diversity gives Toyota access to the best and the brightest.

It creates opportunities for new partnerships. Diversity allows Toyota the ability to fully participate in today’s changing marketplace. Diversity gives Toyota additional ways to make a difference.

Eastern holistic approach to life influences Toyota`s broad approach to Rewards & RecognitionHolistic recognition & rewards system at Toyota includes linking all the key systems such as

Formal compensation system Performance evaluation Slow promotion Corrective action Informal Rewards and recognition

Compensation and Benefits a combination of standard pay scales & practices in the Auto industry. The philosophy and the strategy it is built on include:

1. Support long term employment through pay and benefits program founded on good business judgements

2. Provide a stable pay program3. Avoid severe cash fluctuation in total cash

compensation4. Reflect overall company performance5. Reward during good times and protect during

bad times

To provide an opportunity to provide feedback necessary for development of each employee. The key points include

1.Balancing appraisal of both process and results

2.Evaluating the doing of the job and the doing of the job

3.Checking system in place for fairness4.Focus on development: daily observation,

coaching and feedback.

Shrikant Pavitra Lal Ram Tenzing Babu Raja