Toyota stands on the belief that each single minute should be used productively, in the sense that a worker should be busy all the time. This overworks the employees and to some extent affects the quality of their production. For instance, the recent recalls for the calls with inappropriate brakes may have resulted from the carelessness of the employees as they try to produce many cars, which is in line with the company’s requirements.

Additionally, this company has few layers in Organizational hierarchy, resulting in less opportunity for promotions. This denies the employees an opportunity to be promoted and as such, they become demoralized, which affects their production rate. As such, with workers that are less inefficient the expansion opportunity of the company is threatened since just like capital, labor is very essential in facilitating expansion of a business.

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