Toyota has grown to become the largest auto manufacturer in the world, with plants located around the world. In 2005–2007 the company hired 40,000 new employees to keep up with this growth. A challenge for Toyota during times of growth is to make sure that the new hires effectively become part of the company’s culture, including the Toyota Production System which guides the flow of product through Toyota’s plants. The new hires must also learn the Toyota Way, an eight-step method for decision making. Toyota’s new managers go through extensive training at the Toyota Institute in Japan. Even veteran Toyota managers are required to go back to the Institute for training when they get a promotion. Concerned about the decline in quality in recent years, Toyota has redoubled its efforts in training and has begun to hire back some retired workers in Japan. New entry-level employees are trained at Toyota Technical Institutes located around the world.

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Why is training so important for Toyota?