Role of Manager and Leader in Toyota Production System

The report explores the importance of managers and leaders in implementing different leadership styles to achieve business objectives. It emphasizes the need for a Total Quality Management (TQM) approach to produce quality products and create customer loyalty. The document also highlights the relevance of administrative management and trait leadership approaches in achieving organizational goals.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Introduction on organisation and its management structure...................................................1
2. Definition the roles of managers and leaders as well as the differences between
management and leadership........................................................................................................2
3. Analysis of the different roles of management and leadership in application to different
organisational situations, supported by theories and concepts....................................................3
4. Evaluation of the strengths and weaknesses of different approaches to leadership and
management to draw conclusions that support theories of leadership........................................3
5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements................................................................................4
TASK 2............................................................................................................................................5
1. Key operations of Toyota company........................................................................................5
2. Explain each key operational functions and identify the role & responsibility of manager in
this operation...............................................................................................................................5
3. Key operational approaches to operations management.........................................................6
4. Evaluate how external factors influence the decision of manager or leader...........................7
5. How effectiveness improve business objectives by using management and leadership
approaches...................................................................................................................................7
6. Conclusion and recommendation for the future improvement...............................................8
CONCLUSION ...............................................................................................................................9
REFERENCE ................................................................................................................................10

INTRODUCTION
Management and operation is an essential part of organisation which is used to create
highest possible efficiency by transforming resources into desirable outcome. In this report
discussion will be made on Toyota which is multinational automotive manufacturer pays a lot
of attention on its design or redesign operation activities. First part of report contain the topics
like introduction on management structure of Toyota and roles of both managers and leader in
different organisation situations. Along with that it evaluate the strength and weakness of
different approaches to leadership and management. However, second task contains key
operation approaches functions and approaches to operation management. Lastly, discussion
will be made on how operation efficiency can improve to successfully meet business objective.
TASK 1
1. Introduction on organisation and its management structure
Toyota is the world's largest multinational automotive manufacturer, its headquarter is
in Japan. It has provided employment to more than 3,00,000 people worldwide and in terms of
revenue it is sixth largest company of the world. Toyota company is the market leader in the
sales of hydrogen fuel cell and hybrid electric vehicle (Ashford, Coutu and Beasley, 2013).
Toyota with global presence has adopted divisional organisation structure to
maximising its capacity and efficiency. Initially, they had adopted centralised structure in
which all the major decision was made in the headquarter (i.e. Japan) of respective company.
Additionally, company faced lot of criticism because of delay in decision making process and
addressing vital communication. Then in 2013, company made the wider changes and shift to
divisional organisation structure. Thus, new organisation structure main characteristics are that
it promoted global hierarchy, lead geographical as well as product based division (Brown and
Bessant, 2013). Global hierarchy has fasten the decision making process, reduce delay to carry
out day to day operations in business as well as enhanced the overall operations of business.
Moreover, Toyota currently has eight regional division and each head of region reports in
headquarter of company. Furthermore, different division of company is responsible for
different operation like transmission and engine.

2. Definition the roles of managers and leaders as well as the differences between management
and leadership
Manager: - Mangers are responsible to assign certain duties or responsibility to
employee of its department. Manger's job description varies from one organisation to other
depends upon the responsibility and organisation structure.
Role of manager: In Toyota manger perform on going function like planning,
organising, leading and controlling to run the organisation smoothly in order attain
organisational objective. Moreover, mangers help in coordinating the activities between
management and staff.
Leader: Leader refer to the ability of an individual to lead other individual, team as
well as entire organisation. Thus, they guide a direction to reach destination in an efficient way.
Role of leader: The role of leader in Toyota is to treat each employee equally and
provide fair wages for allotted task. Moreover, the role of manager is to guide, motivate,
influence and encourage personnel to achieve the standards of organisation.
Difference between leadership and management
Basis of difference Management Leadership
Definition Management perform the
overall task of Toyota from
planning to controlling in
order to perform the operations
in a systematic manner.
Leader refer to the skill of an
individual to motivate,
influence and encourage the
behaviour of employees in the
favour of respective company.
Focus Toyota management system
focus on using its multiple
competitive advantage, bring
stability and take company to
achieve new heights.
Toyota leadership system
encourages existing employees
to bring changes as well as
inspire team member to fulfil
the objective.
Strategy They make reactive strategy
and accordingly formulate
rules and regulations.
Toyota leadership has
foresight vision due to which
they make proactive strategy
and influences the role of

individual.
3. Analysis of the different roles of management and leadership in application to different
organisational situations, supported by theories and concepts.
In order to carry out operational activity, both manger as well as leader has to go
through with various situation or circumstances. To deal with such situations leader and
manger plays a significant role supported by below mentioned theories and concept.
Contingency theory: - Under contingency theory, leader figure out strategy they can
use in given situation. Effective outcome will only be produced if leader chooses effective
leadership style for a situation. Toyota make sure they have better understanding of their staff
so that they can come up with better solution to motivate their employee. For instance, Toyota
faced a incidence because they were not able to fulfil the demand of their potential customers
(Chiarini and Vagnoni, 2015). In that case a manger should take effective decision related to
suppliers and maintaining company supplier relation. Whereas, leader can encourage the effort
of its employee to fulfilled the order on time.
Situational theory: - Under situation theory leader adopt various leadership style on
the basis of different situation. To face a particular situation leader help in maintaining an
optimum balance within management and staff. Toyota in its growth stage faces a decline as its
existing and potential customers found a decline in the quality as well as design of Toyota in
comparison of its competitors. To overcome this phase mangers took a strong step in enhancing
the quality as well as design of its products. Furthermore, leader instructed appropriate
instruction to get the best result (De Roover, 2017)(Childe, 2011).
4. Evaluation of the strengths and weaknesses of different approaches to leadership and
management to draw conclusions that support theories of leadership.
Leadership involve guiding and influencing the behaviour of other in order to train and
motivate them. Thus, it is very much important for Toyota to follow different approaches to
enhance operation efficiencies. Though, each approach has its strength and weakness but if
adopted appropriate it helps organisation to function wisely.
Contingency approach of management: - Contingency approach suggest the best
suited style of management. Here, mangers or leader pay attention not only to leadership style
but to situation as well. For instance, Toyota being international brand cannot apply same

policy or same approach everywhere as one style does not fit for all. Strength and weakness
associated with this approach bare as follows.
Strength: The main strength of contingency approach is that it keeps the whole
environment flexible by widening the understanding of different approach by leader. Also it
helps in predicting best suited approach for an organisation.
Weakness: This approach has faced some criticism because it does not explain why
leader are effective in certain situation but not in other situation.
Situational approach of management: -Different situation demands different
leadership style also leadership style adopted for one circumstances must nit be suitable for
other circumstances. Therefore, its is very essential for Toyota to identify all the other factors
and situation carefully in order to adopt best leadership style. Hence, the successful leader of
above mentioned company change their leadership style on the basis of different situation.
Strength: Toyota is able to provide healthy work relation as well as environment
because there is no hard and core rule of adopting same approach every time (He, Li and Chai,
2014).
Weakness: Adopting different leadership style creates a confusion for both employees
as well as management. Hence, can impact their performance.
Conclusions: From the above scenario it has been concluded that Toyota must go for situational
approach where it can adopt best suited approach for its employees. Moreover, adopting
desirable task makes the work easier for for management as well as staff. Furthermore,
situational approach is favourable for all the level of management like top level managers of
Toyota can use this strategy to know the functioning of each de department. Similarly manager
of middle level can use this approach to head the meeting and direct the staff.
5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements.
Leader as well as mangers plays a very significant role within the organisation. They
together directly influence the behaviour of employee to perform the operation as well as run
organisation smoothly. Thus, leader must adopt optimum leadership style on the basis of
various situation to motivate, encourage whole team member as well as organisation.
Recommendation:

 Manger of Toyota must disclose the operation strategy wisely with its employee so that
they remain updated with the policy of company. Hence, this helps an employee to keep
self directed.
 Toyota must provide training session, conduct workshop and orientation to its existing
as well as new employee. This helps an employee to keep on enhancing their skill as
well as knowledge and utilise it in favour of company (Haimes, 2015).
TASK 2
1. Key operations of Toyota company
Toyota is well know company because of it's product quality in car manufacturing
industry. It is an fastest growing company that have their manufacturing facilities, operations
and also have loyal customers in across the globe. These operations help the manager of Toyota
to complete their task in appropriate way. Company differentiate their key operations is three
parts such as:
Supply chain management: - Supply chain activity is totally based on Toyota
production system (TPS). This operational function include the mutual trust and
understanding, control system and information should be share with others. Toyota company
supply raw material from the supplier for the production purpose and than build quality product
for their customers. Organisation complete the target and satisfy the customer's need which
increase the value of Toyota in the eyes of consumers. For that they need to achieve their task
on time with the help of effective supply chain management (Hugos, 2018).
Designing of auto mobile: - It is very important key operation function of Toyota
company to design their product body internal as well external which attract the customers.
Company consider the customer's demand at the top and design according to it because primary
motive is to satisfy consumer's demand and give them preference. This key operation activity
help the manager to produce good product which satisfy the customer's need and demand.
2. Explain each key operational functions and identify the role & responsibility of manager in
this operation
Every manager plays very important role in the organisation at the time of performing
their duties. Toyota's manager have different role and responsibility to perform their task at the
time of operational functions.

Role of manager in Supply chain management: - In this operations manager need to
maintain relationship with the various suppliers and distribution channels. Manage the
warehouses to store raw material and than use it in appropriate way. Manager need to follow
various techniques for the purpose of handling inventory, so manager of Toyota company keep
their eyes on it. Manager also responsible for the manufacturing activity such as cost of labour,
inventory level and check productivity level at regular basis because it help to reduce cost or
maximise the profit.
Role of manager in Designing of auto mobile: - Manager allocate the resources for
the designing of physical appearance of car and it also assign single person for the single task
that create efficiency of work. Manager of Toyota company have responsibility to review all
the task is performing in effective way or not. They also analyse that work is done according to
the costumer's preference or not and after identification manager provide proper guidance to the
employees in respect of manufacturing cars. Manager also responsible for the quality of
product that effect the business very well (Jacobs, Chase and Lummus, 2014).
3. Key operational approaches to operations management
Manager of Toyota company follow the various operational approaches in respect of
performing key operation in the organisation. Each approach have it's different value for the
business activity so there are some approaches such as:
Lean manufacturing approach: - This approach follow by the Toyota company to
reduce wastage in the production level. It is a systematic method who help the organisation to
minimise their waste in order to save their cost. For this, manager prepare proper training
program for their employees which includes the various techniques that help them to reduce
wastage. It will increase the efficiency of workers and productivity of business that is helpful
for Toyota company to achieve their business targets or objectives.
Total Quality of Management (TQM): - It is an another approach follow by the
Toyota company for the operations management. This approach is all about the product quality
which is most important for the organisation as well as for customers. So manager need to take
continuous feedback from customers and focus on improvement of product quality. According
to TQM approach, produce best quality product at one time so it will save the time as well as
money of Toyota company (Marchington and et. al., 2016).

Manager of Toyota company follow these approaches in the organisation which is
helpful in reducing wastage and improve product quality that will increase production as well
as customer loyalty.
4. Evaluate how external factors influence the decision of manager or leader
PESTEL analysis includes the all external factors affect the Toyota company and it's
production level which can be good as well as bad for the organisation. Manager or leader of
the company identify the opportunities & threads which is helpful for the decision making
process.
 Political factor: - Political stability is very important for the organisation to grow their
business, free trade agreement and government support also. These are the opportunity
for the Toyota company and it also affect the decision of manager or leader.
 Economic factor: - Weaker currency of japan in comparison to U.S is the opportunity
for Toyota company and they have to export their products in the U.S market. That is
helpful for the organisation to expand their business. So the manager's decision will
affected by the economic factors.
 Social factor: - Toyota company have social opportunities like customers have interest
in hybrid cars and electric cars, so it is best to introduce these products in the market.
Manager or leader of the company analyse these factors and it will effect the decision
also.
 Technological factor: - It impact the most because company have same line business.
Toyota need to introduce e-commerce and mobile technology that is opportunity for the
business which help to improve productivity. These factors affect the decision making
process of manager or leader.
 Environmental factor: - Company have good opportunity to introduce Eco- friendly
cars such as hybrid and electric cars. These factors influence the leader or manger's
decision in the Toyota organisation (Penn and Pennix, 2017).
 Legal factor: - Intellectual Property Rights (IPR) law improve by the government, so
Toyota company don't have to worry about this. They also provide high quality product
that satisfy the customers. These are the opportunities for the company and it affect the
manager or leader's decision.

5. How effectiveness improve business objectives by using management and leadership
approaches
Every organisation have their business objective which is fulfil by the company.
Toyota's aim to maximise their profitability through the satisfaction of customer by providing
quality product. To the successful achievement of business objective manager of Toyota
company need to follow management as well as leadership approach in the organisation are as
follow:
Trait leadership approach: Under this approach, leaders are not build by learning they
have ability to lead the people by birth. According to this approach, it include the various trait
that is required in the person for the effective leader. Leader should be intelligence,
judgemental on actions, need to be responsible and having attractive personality so employees
listen their leaders word. Manager of Toyota company need to ensure that leader have
leadership quality which help them to achieve business objectives and choose leader who have
these leadership trait. Good leader help the company to achieve their targets and
objectives(Pundi and et. al., 2015).
Administrative approach of management: Manager of the company required to
perform some duties such as planning, organising, directing, controlling and coordinating.
According to this approach, manager need to prepare clear structure for employees and divide
the work between the labours. Also specify the objective and goals to the members so they can
perform well. Manager of the Toyota company follow this approach and perform effectively
and efficiently to the fulfilment of business objective.
6. Conclusion and recommendation for the future improvement
It has been concluded that organisation required to perform key operations for the
effective work that enhance the performance of workers. External factors affect the business
which can be positive as well as negative too. These factors influence the decision of manager
or leader. Further conclusion about the leadership and management approach which is very
important for the organisation to follow. It will help the manager to achieve their business
objectives by using trait leadership approach and administrative approach of management.
Recommendation for the future improvement: -

 As a production manager, recommend the Toyota company to follow Total Quality of
Management (TQM). By using this approach company produce quality product for the
customers which create the loyalty among the consumers.
 Manager of Toyota company need to adopt various leadership and management
approaches to increase productivity as well as efficiency of workers.
 It recommended that to choose administrative approach of management and trait
leadership approach for the organisation to fulfil their business objectives.
CONCLUSION
From the above report, it concluded that role of manager and leader plays very
important role in the organisation by using different leadership style. Manager also review the
operational function that works from raw material to finished goods. By using different
approaches company will reduce the wastage in the production level as well as improve the
quality that help the organisation to create customer loyalty. At the end management approach
help the manager to perform their duty in order to succeed business objectives and goals.

REFERENCE
Books & Journal
Ashford, N., Coutu, P. and Beasley, J., 2013. Airport operations.
Brown, S. and Bessant, J., 2013. Strategic operations management. Routledge.
Chiarini, A. and Vagnoni, E., 2015. World-class manufacturing by Fiat. Comparison with
Toyota production system from a strategic management, management accounting,
operations management and performance measurement dimension. International
Journal of Production Research.53(2). pp.590-606.
Childe, S. J., 2011. What are the hot topics in the management of operations?.
De Roover, R., 2017. The Medici Bank: its organization, management, operations, and decline.
Pickle Partners Publishing.
Haimes, Y. Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.
He, J., Li, K. and Chai, X., Huawei Technologies Co Ltd, 2014. Method for executing
management operation by communication terminal and a terminal and system thereof.
U.S. Patent 8,700,757.
Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
Jacobs, F. R., Chase, R. B. and Lummus, R. R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Marchington, M., and et. al., 2016. Human resource management at work. Kogan Page
Publishers.
Penn, I. A. and Pennix, G. B., 2017. Records management handbook. Routledge.
Pundi, K. N., and et. al., 2015. 40-year follow-up after the Fontan operation: long-term
outcomes of 1,052 patients. Journal of the American College of Cardiology. 66(15).
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Online
PESTEL analysis of Toyota company. 2019. [Online]. Available through:
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