How Toyota motivates its workers • i. Agreed to guarantee lifetime employment for employees • ii. Developed a system of internal promotion • 1. enabled workers to rise within the hierarchy • a. casual workers could receive permanent contracts • b. could go on to become team leaders, foremen and even managers. • 2. worker can become a sort of minor manager • iii. Provides a pay scale based on three components of company profitability • 1. One bonus based on seniority - not job classification • 2. Another bonus payment related to team’s performance • 3. Additional bonus payment allocated to worker’s merit • 4. Wage would increase from 85% to 115% from amount allocated • In return, Toyota employees are constantly committed to making improvements rather than just responding to problem Compensation Benefit: