Objective assessment techniques significantly improve a company's ability to make correct decisions and manage the risks involved. A case study on Toyota Material Handling Australia (TMHA) is the organisation in focus that implemented the mentioned best practice in recruitment, development and promotion. The company has benefited much from objective assessment approach. It has reduced recruitment time, reduced selection cost, cut the hire cycle time, and recruited higher quality staff. The level of employee satisfaction has improved and the cultural differences has been resolved; the credit goes to the systematic and structured integration strategy that the company has planned and effectively implemented.
Toyota Material Handling Australia (TMHA) is a major supplier of the widest range of forklifts and electric warehouse products in the region. The Toyota brand has gained market leadership since 1987. In 2005, TMHA was formed from the integration of BT Industries which was acquired in 2000. Today, the Australian operations represent approximately $300 million in turnover with over 690 staff across the country.
The integration of BT Industries became a great challenge for the company. The merging of the sales team of both Toyota and BT developed into an obstacle for the organisation due to the difference in products and cultures of the two companies. BT industries sold battery-electric warehouse equipments while Toyota was in the business of engine powered trucks. The sales methodologies of both companies were different. BT was a new player to the market in Australia while Toyota has been a key player for over 40 years. The sales culture of Toyota has been tried and tested. It has withstood obstacles in order to consistently achieve market leadership. It is the core competence of Toyota which the management aimed at integrating in the new organisation.
In order to address the issue on culture clash and improve the performance of the newly merged sales teams, TMHA employed the services of an external training and development provider, strategically branded as Objective Assessment Pty Ltd. The service provider performed diagnostic analysis on the capability and growth potential of the sales management. They then assisted in the development of the stability of the sale teams. TMHA together with Objective Assessment implemented sales recruitment and assessment strategies.
As a result of the new sales recruitment and assessment process, TMHA has discovered great assets from within the company and come across new yet stronger sales recruits and talents. Consequently, the new process benefited the company through saving time in selection and providing stability in their sale teams. Furthermore, TMHA has overcome their cultural dilemmas and improved the team's performance.
The fundamental role of strategic human resource management is about matching human resources to the strategic and operational needs of the organisation and ensuring the full utilisation of these resources (Armstrong, 2006, p. 359). It is concerned with obtaining and keeping the number and quality of staff required as well as selecting and promoting people who fit the culture and the strategic requirements of the organisation. (Gunnigle & Moore, 1994, p. 65)
Human resource strategy has come to play a vital role in enhancing an organisation's competitive advantage. Companies realise the importance of