Case Study on Organizational Culture and Leadership Toyota

Running head: CASE STUDY REPORT
Organizational Culture and Leadership
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Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Comparison of Organizational Culture and Leadership between Japan and Australia.............2
2.1 Communication and Shared Value........................................................................................2
2.2 Leadership Control................................................................................................................3
2.3 Organizational Structure........................................................................................................3
2.4 Openness to Ideas..................................................................................................................4
2.5 Existence of Teamwork.........................................................................................................4
2.6 Diversity in Workplace..........................................................................................................5
3.0 Recommendation.......................................................................................................................5
4.0 Conclusion.................................................................................................................................6
Reference List..................................................................................................................................7

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1.0 Introduction
Organizational culture defines the system of shared values, assumptions and beliefs,
which guides the behavior of the employees in an organization (Hogan and Coote 2014). This
study will describe the organizational culture of Toyota, which is a popular Japanese
multinational automobile manufacturer. Moreover, the study will critically compare the
organizational culture of Toyota between its home country Japan and global market Australia.
Moreover, based on the critical comparison, the study will also provide suitable recommendation
for Toyota towards better organizational success.
2.0 Comparison of Organizational Culture and Leadership between Japan and Australia
2.1 Communication and Shared Value
As per Hofsetede Cultural framework, organizational cultural is largely dependent on the
power equality or inequality among the organizational members. According to Yamaguchi
(2013), Toyota follows equal power distribution in Japan, because of the social norms of the
country. Moreover, lower level employees of the organization easily and freely communicate
their issues and concern with the higher-level employees. Furthermore, Toyota has a shared
value organizational culture at Japan. Moreover, the managers of the organization always share
important information with the employees and take their concerns in making organizational
decision. On the other hand, Wiewiora et al. (2013) opined that Toyota has unequal power
distribution in Australia among the organizational members. The managers just pass on their
orders and the employees are just to follow the strict orders of the managers for completing their
task. It is something de-motivating to the employees in Australian employees of Toyota.

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2.2 Leadership Control
As per Charles Handy’s organizational culture theory, there are four types of
organizational culture based on the interaction level of the employees with among each other as
well as upper management. Giorgi et al. (2013) pointed out that Toyota follows role culture in
the workplace of Japan, where every employee is delegated with certain roles and responsibilities
based on their specialization, interest and educational qualification. Moreover, the employees
have right to take the ownership of their job roles, which is quite encouraging for them. Leaders
are just to assist the employees in such organizational culture. On the other hand, O’Reilly et al.
(2014) opined that Toyota follows power culture in the workplace of Australia. In such culture,
the employees do not right to take the ownership of their job roles. Power remains limited to
certain upper class managers and the employees are to follow the strict instructions of leaders for
completing their jobs. Moreover, such organizational culture often undervalues the employees at
their workplace.
2.3 Organizational Structure
Organizational culture defines the typical hierarchical arrangement of communication,
line of authority and rights and duties within an organization. According to Huff, Song and
Gresch (2014), Toyota follows flat organizational structure in the workplace of Japan. In such
workplace, there are few levels of middle level managers and the employees can easily
communicate with their direct upper level managers. Therefore, communication flow in such
workplace culture of free and issues are resolved immediately. On the other hand, Harrison and
Baird (2015) opined that Toyota follows functional organizational structure in the workplace of
Australia. In such organizational structure, there are different types of functional heads based on
the departments. The employees are to work under individual functional heads depending on

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their own specialization and department. Moreover, the coordination and communication among
the organizational members are restricted by having separate department working separately.
2.4 Openness to Ideas
As per Hofstede cultural dimension framework, organizational ate open up to ideas and
thoughts depending upon their degree of long-term orientation or short-term orientation. Leung
and Morris (2015) stated that the management of Toyota in Japan is highly long-term oriented
for making organizational decision. Moreover, the managers are always open up to new and
innovative ideas and thoughts for fostering organizational innovation. On the other hand,
Wiewiora et al. (2013) opined that the management of Toyota in Australia is more focused on
short-term achievements. Moreover, the managers are not much open up to innovative idea and
thoughts, which limits organizational innovation.
2.5 Existence of Teamwork
According to Yamaguchi (2013), Japanese management of Toyota always believes in
individual contribution of the employees in whole group or within team. Moreover, organization
culture of Toyota in Japan is mostly relied on the effort of teamwork towards getting
organizational success. On the other hand, O’Reilly et al. (2014) the management of Toyota in
Australia is more focused on individual achievement towards achieving organizational goals.
Moreover, the organizational culture of Toyota in Australia is very individualized. It often
increases the complexity level of the organization without having any helping hand around the
employees having individualistic culture.

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2.6 Diversity in Workplace
As per the third level (Assumed value) of Edgar Schein organizational culture theory,
organizational culture is shaped depending on degree of equality among the male and female
employees in an organization. According to Huff, Song and Gresch (2014), the organizational
culture of Toyota in Japan in relied on equal value of male and female employees. Such
organizational culture enhances the value of female employees and use female talent in some
specific areas for achieving organizational success. On the other hand, Harrison and Baird (2015)
organizational culture of Toyota in Australia is mostly relied on late sitting, where male
employees dominate female employees. Moreover, female employees are undervalued in such
organizational culture.
3.0 Recommendation
Based on the critical comparison of Toyota’s organizational culture between Japan and
Australia, it can be said that Australian management of Toyota should improve their
organizational culture for better achieving organizational success. Moreover, Toyota should be
relied on equal power distribution within the workplace. The managers of the organization
should share important organizational information with the employees equally and take their
concerns for making organizational decisions. On the other hand, the management of Toyota in
Australia should have long-term orientation and openness to innovative ideas, which will foster
organizational innovation. Toyota should also rely on teamwork approach for achieving
organizational success through having les complexity level among the employees.

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4.0 Conclusion
While concluding the study, it can be said that the organizational culture of Toyota in
Japan and Australia is quite different from each other. The organizational structure of Japan is
flat and communication flow is direct from lower level employees to upper level management.
On the other hand, Toyota follows functional organizational structure in Australia, where there is
indirect communication flow through different functional heads. Furthermore, Toyota follows
teamwork in Japan towards achieving organizational success. However, Toyota follows
individual achievement in Australia for achieving organizational success, which often enhances
complexity level of the employees. Therefore, Toyota should immediately opt for teamwork for
lowering the complexity level of the employees in achieving organizational success.

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Reference List
Giorgi, G., Ando, M., Arenas, A., Shoss, M.K. and Leon-Perez, J.M., 2013. Exploring personal
and organizational determinants of workplace bullying and its prevalence in a Japanese
sample. Psychology of violence, 3(2), p.185.
Harrison, G.L. and Baird, K.M., 2015. The organizational culture of public sector organizations
in Australia. Australian Journal of Management, 40(4), pp.613-629.
Hogan, S.J. and Coote, L.V., 2014. Organizational culture, innovation, and performance: A test
of Schein's model. Journal of Business Research, 67(8), pp.1609-1621.
Huff, K.C., Song, P. and Gresch, E.B., 2014. Cultural intelligence, personality, and cross-cultural
adjustment: A study of expatriates in Japan. International Journal of Intercultural Relations, 38,
pp.151-157.
Leung, K. and Morris, M.W., 2015. Values, schemas, and norms in the culture–behavior nexus:
A situated dynamics framework. Journal of International Business Studies, 46(9), pp.1028-1050.
O’Reilly III, C.A., Caldwell, D.F., Chatman, J.A. and Doerr, B., 2014. The promise and
problems of organizational culture: CEO personality, culture, and firm performance. Group &
Organization Management, 39(6), pp.595-625.
Wiewiora, A., Trigunarsyah, B., Murphy, G. and Coffey, V., 2013. Organizational culture and
willingness to share knowledge: A competing values perspective in Australian
context. International Journal of Project Management, 31(8), pp.1163-1174.

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Yamaguchi, I., 2013. A Japan–US cross-cultural study of relationships among team autonomy,
organizational social capital, job satisfaction, and organizational commitment. International
Journal of Intercultural Relations, 37(1), pp.58-71.