Operation Management Assignment - Toyota company

MANAGEMENT
AND
OPERATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Introduction of Toyota management structure.................................................................1
LO 2.................................................................................................................................................4
P2. Function of manager and role of leader...........................................................................4
P3. analysis of leader and manager by using different theory................................................4
Conclusions and recommendations for improvements...........................................................6
LO 3.................................................................................................................................................7
P4 Introduction of key operations and approaches of operation management with roles and
responsibilities of leaders and mangers..................................................................................7
P5 approaches of management or leadership help to improve operational efficiency...........9
LO 4...............................................................................................................................................10
P6 analysis of external factors impact to business...............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management is an art of getting things done with people in formal organised group. Operation is
an analytical method of problem solving and decision-making that is useful in the management
of organization. Operation management is concerned with designing and controlling the process
of production as well as redesigning the business operations in production of goods or services
(Nakamura and et.al., 2015). Present study is based on the “Toyota” is the Japanese automotive
manufacturer company. Study lays emphasis on proper management structure help to address
every department work. The difference between the role of leaders and manager and how they
are handle different situation in organisation, supported by theories and concept. Report will
highlight the strength as well as weakness of approaches. Study will discussion on different key
operation function and how manager and leader plays roles in it. Report will also highlight
impact of external factors affect to the business.
LO 1
P1. Introduction of Toyota management structure
Toyota is the Japanese multinational automotive company. This is the first largest
company of automation. This produce more than 10 million vehicles per year. This was listed in
japan market capitalization. Company has aim to achieve long term growth in harmony within
the global environment. On the other side, mission of company is to seeks to create a more
prosperous society by automotive manufacture. Company has always try to enhance customer
satisfaction and they provide high or best quality services to their customers in effective manner.
Management structure of Toyota
Toyota's organizational structure is varied business operations of company. Management
structure describes management hierarchy in the company. Company has a divisional structure
for work (Management structure of Toyota, 2018). This organizational structure supports
business in accomplishing goals and getting correct strategic direction. Structure is effective for
the company to maintaining a strong discipline. It helps to maximize effectiveness and efficiency
of work in growth of company in effective manner.
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This structure defines the arrangements of firm resources. Toyota's divisional structure
follows the main characteristics geographic division, global hierarchy and product based
divisions. With this structure manager is capable for responding in regional market condition
(Hasegawa and NEC Corp, 2017). This help to local mangers to take any decision with good
solution. This help to mangers and leaders of Toyota is fast take any decision for solving issues
and provide best quality products. Meanwhile, this increase decision-making power of local
heads. This structure helps to increase the productivity and continue growth.
Definition of leaders and manager or their roles in organisation
Managers: Manager is individual who is charges for controlling, supervising and motivating
employees and for directing the progress of an organisation. Effective communication, time
management is a characteristic of manager.
Leaders: the person who lead or command in the group of people. They try to motivate their
followers towards the positive work. Team leading, effective communication and give motivation
is a characteristic of leaders.
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Illustration 1: Management structure
(Source: Management structure of Toyota, 2018)

Basis Management Leadership
Meaning It is a process of managing the
activities of the organisation.
It is a good of leading people
through encouraging them.
Vision Managers build a strategic vision
for team members.
Leaders involve the team in plan a
future direction.
Roles of leaders and manager
Leading and managing
peoples
This is responsibility of managers
is controlling a group in order to
fulfil a certain goal. In the leading
and managing the peoples at
workplace.
This is responsibility of leaders to
motivate the employees to make
contribution towards the success
of organisation. Leaders are play
an effective role to manage the
peoples at workplace.
Honesty and integrity Manager have roles to be an
honest with their work and team
member.
It is the main role of leaders to
believe their followers and show
the path to employees.
Ability to challenges
and direct
Manager is responsible for daily
efforts. They have analysis the
resources and anticipating needs to
make changes according to
situation.
Leader is responsible for taking
challenges. They have own style to
doing work and solving problem in
correct manner.
Characteristic of leaders and managers
Communication skill Managers keep their employees
informed about the rules and
regulation happening both present
and future (Higuchi and NEC
Corp, 2016). This is helpful for the
effective management.
Leaders always keep their team
informed about the task. They
always try to communicate
everything to their follower for
improving capacity of work.
Risk Manager tries control the risk in Leaders take risk of task for
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the market place as well as in the
organization.
reaching success of team.
LO 2
P2. Function of manager and role of leader.
There has the various role of leader and function manager are provide the effective and
valuable form the workplace. They are effectively handle this at workplace which are as follows:
New technology lunched
The new technology is lunched this also the situation which is happened at the
workplace. In this manager can organized the training function for the employees for give
information about the new technology to their employees. Other hand the leaders are also can
give the effective and valuable role to analysis the effective and valuable for the business and its
growth. In that leaders can give correct guidance to the employees and motivate towards work.
P3. analysis of leader and manager by using different theory.
Manager and leader have various responsibilities in antithetic situation within the
organization. They plays a effective role in the Toyota. Different situation and different roles of
both are as follows:
Miscommunication and feedback
Communication is an essential element in effective collaboration. It can be an oral,
written and body language should be effective and clear. Feedback is also important and it will
help to member of the organization be more motivated. For example: poor communication and
miscommunication happing in the Toyota. In that case, role of Toyota manager take decision by
ensuring their work role and situation. They have to convey right messages to their employees
and also to team leaders (Kiehtreiber and et.al., 2018). Meanwhile, leader have to sure before
convey information to their followers and give direction to them. It will help to improve
productivity of team as well organisation. Situational leadership theory states that manager and
management to prefer leadership style according to the various situation and condition.
According to this theory, leader of Toyota handle miscommunication situation happens in the
team. In this situation, leader use effective and easy language to communicate with their team
members (Hrle and et.al., 2016). This theory helps leaders to handle this situation effectively.
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This help to understand the needs of follower and gain their trust. With this they are able to make
changes according to situation and condition.
Safe and healthy work environment
Healthy and safe work environment is most important part of Toyota. That's simply
means which is refers safe and healthy work environment. This happened by the location, culture
of the company. System management theory refers that organisation prefers different
management theory according to the situation and condition happening in the organisation.
Manger of Toyota creates safe work place for the workers where they feel safe. They use
different safety equipment when they face any problem about production team as well as whole
staff of Toyota. They provide safe working environment to their female employees. This theory
helps to manage system of work environment. This supports to innovating and creating in
Toyota.
In this role of Toyota leader can make positive workplace in team by providing
motivation employees, provide opportunities of extra work, effective feedback. Meanwhile,
manager is responsible for taking challenges for setting goals of company. For that here is
important to provide safe work culture and place to workers and females. By these employees are
feel safe from job environment. This is good for growth of company.
The strength and weakness of those theories.
Situational theory
Here are the strength and weakness of situational leadership theory:
Strength Weakness
This theory recognizes the need for flexibility
in team. The strength of Situational leadership
theory is to create comfortable environment for
their team. This help to the leader for circulate
effective communication in team (Thompson
and Glasø, 2015). Which is most important for
the team as well leaders.
The weakness of this theory is communication
gap when leader is not communicate right
messages to team then team get wrong message
from the leader. This not good for the team
work. This weakness of situational theory not
good for the team growth.
System theory
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Strength Weakness
It increases organization ability to environment
change. This theory focus on achieving the
goal of Toyota. This theory helpful for
manager to create safe and healthy work
environment in the organization. In this they
can proper producer of problems. It is the
foremost strength of this theory.
Therefore, it doesn't provide tools and
techniques. It the weakness of this theory. In
this manager only can make system not to
provide any equipment relate to problem.
Contingency theory
This approach is significant difference in different situation.
Strength Weakness
This theory is reliable approach which is
explain effectiveness of leadership to achieve
goal of firm. This is the strength of this theory
is, that focusing on relationship betwixt
leadership style.
This theory is not explain in organisation and
this is the main weakness of theory.
Conclusions and recommendations for improvements.
Manager and leader affect the decision-making process of Toyota. Manager and leader
take effective and good result for their team and employees growth. Both are help to their team
member to enhance skills and boost their self-confidence towards achieve goal of team and
organization. They set objectives to motivate them. They organized training program to develop
their team according to their personal requirements (Meuser and et.al., 2016). This program
helps to gain extra knowledge, develop skills, introduce with new software and also help to
employees to know about culture and environment of Toyota.
Both are not able to guide their team members and employees in proper manner then it
impacts to organization badly. It can impact on decision-making, productivity, profit as well as
goals of Toyota.
Recommendations for future improvement
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Managers and leaders should improve their communication skills like listening, oral,
written and body language. It is a two way processes. Effective communication is requires
manager and leaders capable for effective listening. This help to influenced employees for
effective work done. Through effective communication both are able to explain task and work
procedure to employees which helpful for the team members to get right way of work done.
They can involve their team member in the decision-making process which is help to improve
their productivity and motivation towards the work done. By involvement of employees in
decision-making that help get innovative ideas in process because they have various idea. This
also good for the Toyota’s future growth and profit.
LO 3
P4 Introduction of key operations and approaches of operation management with roles and
responsibilities of leaders and mangers.
Toyota's operation management manage effective and efficient operations. It is the
maintenance of production of services and goods. The company is the best example of successful
automotive manufacturing company in worldwide (Key operational management, 2017). this is
show the highly importance of management coordination for ensure operation and productivity at
at global era. Key operation management of Toyota follows different strategic areas which is
managed by the managers. That are as follows:
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key operational functions of Toyota are as here Designing goods and services, planning
of raw material, quality management, etc. Manager of Toyota input the transformed and
transforming resource in their process of production which is help to manage the system of
operation management. Toyota make effective planning for their uses of resources in production
process. Company directing for proper layout designing. By these customers attract towards the
product this is good for the Toyota growth.
Key approaches of operation management
Six Sigma
Six sigma refers effective process to determine mistakes or defects for products. This
process is help to improve quality by finding defects. Toyota uses six sigma system in company
for improving quality of goods and low priced products in the shortest time by eliminating the
wastes through the quality management method. Role of manager is to ensure are about the
quality of goods by using six sigma. This system improves the customer satisfaction and increase
the interest of the consumers towards company by offering the products with the best quality
(Allen, 2019).
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Illustration 2: operation management
(Source: Key operational management, 2017)

Lean manufacturing
This system important role in minimising the wastes of the production in the
manufacturing companies without resign productivity.
The Toyota company, in which the focus of Lean manufacturing is on improving the flow of
work in terms of the better production. Roles of manager have to stop wasting of quantities and
roles of leaders have managed proper system of production. This system includes the set of the
tools which are essential for determining and identifying the wastes of products. If the wastes are
determined the cost of production can be reduced and it retains the product quality through the
efficient working.
Total quality management
It is an approach, to improve the product quality and performance which helps to meet
the consumers' expectation through the quality assurance method.
In the Toyota the TQM plays a crucial role in contributing higher quality of production and work
quality at the all level of the company through the creative innovation which are creates by the
total quality management system (Ross, 2017). Role of manager have use better quality in goods
and leaders have to create innovation for product.
The key operational functions,
Toyota approaches for strategic and effective decisions making of operations
management and show the important role of manager in it.
Design of goods and services
Design of goods are important for the company. Product design and services attract the
customer towards the brand. This is an important role of the manager of Toyota. In this they
address strategies like advancement and quality of goods. Managers use the R&D investment to
advanced features in its products (Wild, 2017). This help to improve productivity of goods and
services. In that roles of manager is to make effective and valuable design of goods and role of
leader to give correct guidance for work.
Quality management
Quality management is an important part of the production department and company
management. Company maintain quality of goods at minimum cost. Quality of product always
affect to company. In this case, role of Toyota manager maintained quality of goods. They take
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strategic decision through continues improvement in product. They use principle of management
to maintained quality of product.
Inventory management
Inventory management is essential aspect of the company. Company have to maintain the
inventory for production department. This affect the process of production when it is not enough
at the time of production process (Bian and et.al., 2016). At that time, Toyota's manager plays an
important role to minimize inventory level.
Supply chain management
Supply of product at place or right time is most important for the company. Manager of
Toyota uses productive strategy for supply their product at other place. Company can use
automation system for real adjustment in supply chain. By this, Toyota can minimize negative
effects in its supply chain. Effective and good supply of product at right time this develop
customers trust on the brand.
All roles of manager are important to measure and for improve productivity. These are
helpful for improve productivity of Toyota.
P5 approaches of management or leadership help to improve operational efficiency.
Approaches of management or leaders are help to improve business and its growth by
managing follows and employees at workplace.
Importance of operation management through management and leadership approaches:
leadership is the essential and effective success of the company which is provide the
proper and effective direction to their employee. Leadership style depends on manager
personality. Manager of Toyota select leader who have personal style that coordinates with need
of the group (Briggs, 2018). In that they use the situational leadership theory. Through these,
Toyota able take effective and productive decisions for improve operational efficiency. This
theory helps to handle every situation which is happened in the company. Like situation is design
of product this is key operation function of the Toyota. In that manager have to use effective and
right techniques and tools for design product which is help develop attractive design of product.
Operational management is important to improve efficiency and also to successfully meet with
business objectives. This is the main techniques which is help to improve operational efficiency
which is improving the team work between the employees.
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A line the management field which stresses the interactive nature of external as well as
internal factors in an organization. A system theory is used to evaluate the market and internal
elements which is affect to Toyota profitability. This theory helps to maintain the efficiency of
employees and techniques which is help to improve operational efficiency of Toyota (Miyamoto
and FUJIFILM Corp, 2018). This help to maintain the proper structure in the organization.
Design of product in that manager can make proper schedule for the process like they make list
of material when they are used in design product. According to list they able to do their work
fast and easy. Operation management is important for improving operational efficiency and
successful meet with business objectives of Toyota.
LO 4
P6 analysis of external factors impact to business.
External factors are always affected to business internal decision-making process which
is taken by managers and leaders. That factors are as follows:
Political factor
Political factor affects to Toyota's manager and leaders decision. This factor includes law,
legislation and government policies. Like government introduce new rules and regulation on
manufacturing in that cases. Company face problems in their terms and condition by adding.
This can affect the decision making process of manager and leaders like the law of compensation
gives amount to employees against of their injuries.
Technological factor
Technologies also affect to decision process of leaders and managers. Day by day new
technologies come into the market that affects the product design and its uses. Toyota manager
take various technology in their production and team work process (Kafetzopoulos and et.al.,
2015). For example: new technology like new software come. In that manager and leaders have
to use this technology in their production process. By this, technology affects the Toyota manger
and leaders decision-making.
Social factor
Social factor like lifestyle, new trends and customer needs also influence decision-
making process of Toyota's manager and leaders. Company produce automotive product for the
customers and profit. At this manager of Toyota have taken this option in their product and make
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new decision for product design. So, this factor also affects the decision making of manager and
leaders.
Economic factor
Economic factor affects the company decision making power. This includes interest rate,
economic growth, exchange rate, labour rate. If labour rates decrease, in this, manager and leader
of Toyota have to take decision about increase employment. Economy of country is good then
Toyota can take decision to hire new persons in the company. Economy of country always
affects the business decision making process.
Key operational functions are important for the Toyota to make productive growth in the
product. By this manager of Toyota is able to give effective and right decision for their product.
These functions are effective and useful for the managers and growth of the company. Key
operational approaches like six-sigma and total quality management help to measure value of
product in the market and also to analysis the customer needs and wants (Ichinose and et.al.,
2015). These approaches shows proper graph of Toyota's growth and productivity. External
factors like political, economic, legal and technologies affect to decision process of leaders and
manager. Situational leadership theory and system management theory help to improve
operational efficiency of the company.
Recommendations for future improvement
Manager of Toyota should make proper schedule of operation function. Which is help to
analysis needs and wants of the employees of production department and also to customer needs
and wants. This helpful for future growth of the company. By this, Toyota manager able to
perform effectively and give better results of key operation functions. They can use the different
technologies in their product according to the social factors and customers’ needs. Through this
Toyota stable their positive performance in market long time and also help become positive
future growth.
CONCLUSION
From the above report and discussion here is concluded that the operation management
has important for organisation. That has affect to organisation structure. Manager and leaders
played their roles in different situation which had help to improve efficiency of employees.
Different leadership and management theories have their personal strength and weakness at
workplace. For that above analysis gave suggestions for future growth. Report has covered by
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the key operation function of company has important for proper schedule and effective result. In
that managers and leaders played their roles. For that they tried to improve operational
efficiencies by uses of different approaches of leadership and management.
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