Operational Efficiency and Leadership Styles

This report analyzes the operational efficiency and leadership styles within the management structure of Toyota. It discusses how leaders and managers play a vital role in managing tasks and activities, and how various management and leadership theories can be used to achieve operational efficiencies. The report also explores PESTEL factors and stakeholder expectations that affect Toyota's business operations. By adopting key approaches such as JIT and TQM, the organization can increase profitability and sustain itself in a competitive world.

Management and
Operations

Table of Contents

INTRODUCTION
Management and operation plays a vital role in enhancing the company's productivity and
profitability. It is an administration of business practices which creates the highest level of
efficiency within an organisation. Management and operations is mainly concerned with
converting raw material and labour into finished goods and services as efficiently as possible to
maximise the profit of an organisation (Biemans, 2018). It enable company to utilising available
resources which reduces the wastage of product and improves the overall performance of
company. In relation to Toyota, a multinational automotive manufacturer which is started in the
year of 1937. It's headquartered in Aichi, Japan. This research covers the role and characteristics
of leader and manager, application of theories, models and approaches of leadership in various
situation. Finally the factors within the organisation which impact operation management and
decision making of leader and manager.
TASK 1
P1 Roles and characteristics of a leader and a manager
Management and operation is a process of transforming input into output i.e. raw material
into finished goods which reduces the wastage of product and saves the time, cost in order to
enhance the productivity of company. For efficiency of company management and leadership
plays a crucial role. Even though manager and leader are two aspect but they should work
together in order to bring proficiency in company. In simple terms manager is an individual who
manages and controls the activities of business operations while leader is the one who influence
and encourage the followers to put their best effort for company's growth (Bos and Millone,
2015). In context to Toyota, one of the leading car manufacturer in the world which started in the
year of 1937 and its headquartered in Aichi, Japan. Toyota is well known for its effective
management structure which helps them to reduces the wastage of product with the optimum
utilisation of resources. The management structure of Toyota is classified into two division i.e.
office and shopfloor which is govern by General Manager followed by Assistant General
Manager, Senior manager and Section manager for each division. Under section manger of office
division it includes administrator, engineer whereas shop floor division section manager has to
monitor different group and team.
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In an organisation manager and leaders are the backbone of company's success and
productivity. Both has unique role to play within and outside the organisation which impact the
company's growth positively and negatively (Chavez and et. al., 2016). Some of the roles and
characteristics of Toyota's manager and leader are as follows:
Role of manager
 Conflict resolution: One of the essential role of manager is to resolve the issues of
employees in order to create good working environment.
 Spokesperson: Manager represent and speaks for the organisation and always be
available whenever employees required. Furthermore, they provide the appropriate
information regarding achievement of goals within and outside the organisation.
Characteristics of Manager
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 Division of work: Manager assign the roles and responsibilities of particular task to
employees in order to reduce the misunderstanding and conflict regarding work.
 Positive attitude: Manager is an individual who throws light of positiveness within an
organisation. By this employees get influence to put their full effort towards the
accomplishment of long term goal.
Role of Leader
 Inspirer: Leader is the one who inspires and motivates the followers to put their best
contribution towards the achievement of organisational goal. (Dugan, 2017)
 Innovator: Leader always seeks for the best opportunity for introducing the innovative or
latest technology which enable the company to enlarge profitability.
Characteristics of Leader
 Integrity: Leader should not be bias in nature and treat every employees equally. By this
it build healthy relationship between them and leads to attainment of pre determined
goal.
 Accountability: Leader should be responsible and acknowledgeable towards the
organisation goal and track the employees performance in order to bring effectiveness or
efficiency in company's goal.
From the above statement it signifies that manager and leader has different roles to play
but both should work together towards the organisational goal. Some of the comparison between
management and leadership are given below:
Basis Management Leadership
Meaning Management is an art of coordinating
and managing the business activities
(THE DIFFERENCES:
LEADERSHIP VS. MANAGEMENT.
2019 ).
Leadership is a skill of influencing and
inspiring followers towards
organisational goal.
Power It command the work to employees. It encourage or motivates the
employees to participate in
organisational task.
Aim It focus on bringing stability within It encourages the changes and seeks the
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organisation. opportunities to introduce innovation.
TASK 2
P2 Role and function of a leader and manager in different organisation situation.
Manager and leader are two distinctive system of action who come together for the
attainment of pre determined goal of organisation. Manager promotes for stability whereas leader
emphasise on changes. Some of the theories of management and leadership are applied for
different organisation situation.
Situation 1 Decision – making
Toyota ,leading car automotive manufacturer in the world. The world of auto mobile
industry is full of competition where effective decision making skills plays a crucial role in order
to capture the market. So, to implement an effective decision regarding price of the product
which impact the financial condition of company. To overcome the issue Toyota's leader and
manger plays vital role.
Solution: One of the main role of manger and leader is to make favourable and effective
decisions which contributes towards the attainment of long term goal. In case of leader, they will
apply democratic style i.e. involvement of employees in decision making process by asking their
opinions and views regarding the matter (Glock and et. al., 2018). On the other hand manager
simply follow the instructions which is given or passed by leader and work with employees to
obtain pre determined goal.
Situation 2 Implementation of policy
In context to Toyota, Japanese multinational automotive manufacturer who served across
the globe. The auto mobile sector requires enormous workforce in order to improve the overall
performance of company. Thus, to improve the potentiality of employees Toyota decided to
impose training and development policy which affect company's productivity. In this scenario
manager and leader has unique role to play.
Solution: Training and development enables the company in utilisation the available human
resource which helps the employees to be more effective and easily achieve organisational goal.
In case of leader, they imply autocratic leadership style i.e. imposing the policy and commanding
the employees too follow. While manager receives the order from leader and evaluate the
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employee performance. By this leader can analyse the effectiveness of policy and can take
corrective actions for improvement.
P3 Strength and Weakness of management and leadership approaches
For the effectiveness of company leadership and management theories or approaches are
the key component for the growth of company. Each of them has their own role to play and are
applicable for tackle the different organisational situation like conflict resolution,
implementation of policy, innovative technology etc. (Goleman, 2018). Some of the strength and
weakness of different approaches of leadership are as follows:
System Leadership: This theory signifies that it enable the leader to create a such a
working environment where employees at all levels can work productively to their potential. In
context of the Toyota, leadership is still not defined, as people are free to manages themselves
along with managing their work or task in given period of time. This type of the leadership is
important to bring system or structures in a business operation to maintain work based regulation
structure in this business regulation of the Toyota in the given point of time. In context of the
Toyota, system leadership is necessary to continue working regulation in an effective manner or
time.
System leadership defines the use of potentiality of the workers where they utilise their skills to
complete the task. It is a leaders liability to utilise the skills of employees by motivating them for
work, when a leader hears the ideas and suggestion of employees and let them implement that in
the operations can get best out of the human resource. But at every level system leadership can
not be adopted because some workers may have no knowledge of the tasks this can lead a
negative factor for the leader as well as the organization. In Toyota, system leadership helps in
execution of effective work with new ideas and full potential of workers with the help of leaders
approval.
Situational Leadership: This theory explains that leader has a ability or skill to manage
or control the situation by taking corrective course of action which enhance the company's
proficiency. In matter of the Toyota, situational leadership will be helpful to assist the work of
both manager and leader in order to gain perfect or results in a given point of time. This type of
the leadership will be helpful when any critical situation may rise in this business firm and in
response if the leadership wants perfect solution of any situation.
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Situational leadership is considered as an effective leadership where a leader adopts all the ideas
and decisions with the changing situations. This leadership plays a crucial role in the changing
environment of organizations. Toyota adopts many techniques to satisfy its customers but if there
are technological advancements arises in the environment and the leader is not adopting the
changes then this can lead to the loss for the company.
Contingency Leadership: This theory emphasise that leader will not be effective in all
situation but only one suits them best. In other words effectiveness of leader depend upon their
style or personality traits to different organisational situations. This leadership will assists Toyota
to take decision making on a basis of a best situation that has comes up in the business firm to
led a kind of productive work.
This theory explains a situation where a leader adopts best way to avoid conflicts in the
organization. Leaders are known for their effective styles to solve the problems. Toyota leader
can adopt the strategies which are evolving in the market to satisfy the customers.
Thus, leadership approaches or theories are essential element for the accomplishment of
organisational goal in an effective and efficient manner.
TASK 3
P4 Key approaches to operations management and the role of leaders and managers.
The operation management has some of the major key approaches which help the
managers and leaders in guiding its subordinates in a appropriate manner. These approaches also
help in the completion of the task in a effective and efficient manner (Kafetzopoulos, Psomas
and Gotzamani, 2015). It very necessary for manager and leader to know the correct method by
which work can be done. Some of the main key approaches are discussed below-
Total quality management- It is the continuous process of reducing or eliminating the
errors in the process of manufacturing and supply chain management. The main focus of this
method is to improve the quality of the product of Toyota. It is considered as a customer focused
approach which means the changes done in the products of Toyota are according to the need and
demand of the customers. Total quality management works on seven basic principles which the
managers and leaders of Toyota must take into consideration. They are: customer focus, strong
and effective leadership, people involvement, systematic management approach,continuous
improvement , approach to decision making and good supplier relation.
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Role of leaders-
 They ensure the proper utilization of employee is done in the organisation . So that the
human resource is not being wasted.
 Leaders help in establishing good performance measurement for the production process.
The role of managers-
 one of the major role of manager of Toyota is to treat the suppliers as a business partner.
So that they can help in earning profit.
 They must keep a watch on the preferences of the customers.
Just in time(JIT)- This system is used in managing the raw materials for the process of
production. This can be used by Toyota to increase the efficiency in the production process by
reducing the amount of wastage. Under this process the raw materials are received according to
the need in the production process. This will directly help in reducing the inventory cost and
warehousing cost.
Role of leader-
 The major role of leader is to see that the raw materials received is properly used for the
production of final product and no wastage is to be done (Koh, 2017).
 The machinery used in the production process must be monitored and checked by the
leaders.
Role of manager-
 The most important role of manager in this approach is to order the right quantity of raw
materials after analysing the actual demand.
 Manager must try to maintain good relation with the suppliers so that exact amount of
goods is delivered by the suppliers.
Lean production- This is a systematic approach which helps in reducing the waste with
the manufacturing system. This method can be used in Toyota for improving the quality of the
product, increases efficiency in production and helps in reducing the use of manpower
(Zinovieva and et. al., 2016). With the help of this approach the chances of conflicts between the
employees are reduced. As the work is done in a systematic manner and the morale of the
employees is increased.
Role of leader-
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 Leaders can give proper directions to the employees so that the production process is
increased.
 Leaders needs to check and control the wastage in the production process.
Role of manager-
 Manager in this approach are liable to give reports to the higher authority.
 Proper analysis is to be done by the manger so that effectiveness of the product is
maintained.
P5 Importance and the value of operations management in achieving business objectives.
Operation management is very much important for the organisations it is know as the
heart of the company. As this helps in achieving the goals and objectives in the effective and
efficient manner. The main function of operation management is to guiding each and every
activity in the Toyota and handle the issues. So that work is not hampered in the organisation.
Operation management is also important for increasing the overall productivity of Toyota. This
is because it helps in measuring the efficiency of managers, leaders and employees. Good
operation management will lead to increase in the customer satisfaction, increase in the revenue
of Toyota, reduction in wastage and increase in market share of the company (McArthur, 2015).
If all these factors are achieved by the organisation than this will directly lead to the success of
the organisation.
Operational efficiencies can be easily achieved by Toyota if the company uses right
approach in the right manner. There are different management and leadership approaches which
can be used by the company depending upon the situation. The management approach which can
be used by the managers of Toyota for improving efficiencies are discussed below:
 Classical approach- This approach is generally used after conducting research and
analysis. So that the cost of the company is reduced and efficiencies in Toyota can be
achieved. With the help of this approach tasks in Toyota can be done in a sequential
manner with less wastage. By this the organisational goal and efficiencies can be
achieved. The principle of unity of direction can be used in this approach.
 Behavioural approach – By using this approach the manager of Toyota can know the
behaviour of the employees in the organisation. Motivated employee will have positive
behaviour towards the work and organisation. This will directly lead the increase in
productivity and efficiency in Toyota.
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The leadership approaches which can be used by the leaders of Toyota are:
 Authoritarian approach- In this approach the leader gives orders to the employees and
the views, advices of the employees are ignored. Under this approach the employees just
have to follow the orders of the superior or leader (Trigeorgis and Reuer, 2017). All the
planning and organising work is done by the leader only. The authority and responsibility
is not delegated to the subordinates.
 Delegative approach- By using this approach the manager of Toyota takes the important
decisions keeping in mind the views and ideas of the employees. If the employees are
involved in the decision making process. Than they will be motivated to work properly
and the discipline and efficiencies will be maintained in Toyota. It will also facilitate the
principle of equity in the organisation.
The given leadership has been taken into the consideration to make process of working based in
the Toyota for effective as well as productive to bring business performance in given period of
time. The major purpose here is to make systematic working in business organisation to led or
brings the systematic regulation to led proper or productive work based performances.
TASK 4
P6 Factors in the business environment which affect the operational management and decision-
making of leaders and managers.
There are various factors in the business environment which directly affects the working
of the operational management. Such factors are discussed below:
Corporate culture- It is defined as the customs and behaviour of individuals in the
organisation. The corporate culture plays a vital role in the operation management because the
culture or atmosphere of Toyota will affect the decision making process. And strategies are
formed and implemented keeping in mind the organisation culture (Schönsleben, 2016). If the
culture of the organisation is proper and controllable than it would be easy for the manager and
leader to plan the future course of action in a proper manner.
Corporate values- These are the basic principles or norms of the individual behaviour.
In the operation management value is the important parameter because it helps in finalising the
actual standard of production and also compares the actual standard with the desired standard.
The leaders and managers of Toyota must provide proper platform to the employee to show the
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talent and also must ensure that no unethical culture and value is promoted in the organisation.
By doing this operational efficiencies can be achieved.
Corporate ethics- Toyota must perform ethical activities in order to achieve the goals
and objectives of the company. If the corporate ethics are not followed than the efficiencies of
the organisation will be hampered. As the business will be done using the unethical means. So
the leaders and managers of Toyota must ensure that the ethical polices are followed by the
employees.
Corporate social responsibility- The managers and leaders of Toyota also have some
responsibilities towards the environment and society in which it is operating its business. As this
directly helps in improving the image of the company and increasing the sale and profitability
(Slack and Brandon-Jones, 2018). Managers and leaders of Toyota must also ensure that the code
of conduct for performing the business activities is followed and no misleading activity is
entertained in the organisation.
Stakeholders- These are the persons who have interest in the company. These include-
investors, customers, shareholders, etc. The shareholders of Toyota expect that the business must
earn well. The expectations of the government from Toyota is that the legal laws and regulations
are followed and the CSR activities must be done. Customers expectations from the company is
that their exploitation must not be done. If Toyota is able to achieve all these expectations than it
would be easy for the manager and leader to gain operational efficiency.
PESTEL factors: This include the political, economic, social, technological,
environmental and legal factors which are external to the business. But these factors have a great
impact on Toyota and its activities. Any change in one of this factor will disturb the whole
working of the company. So the manager and leader of Toyota needs to plan the future course of
action in a appropriate and desirable manner. So that operational efficiencies is achieved.
There are many internal and external factors that affects the leadership styles of a leaders the
micro environment is consist of consumers, competitors, suppliers and employees it may affect
the leaders decision by changing in the micro environment such as if the suppliers are not
supplying the raw material to the Toyota such as parts and equipments. Then the leader should
shift to the other suppliers to meet the organizations requirements. The macro environment
includes political, environment, social, technological, economic and legal factor. The changes
made in these factors can affect the Toyota such as the government announces the safety laws
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regarding airbags in the cars. So the leaders should adopt the changes by designing the required
air bags for people's safety. Like this the leaders can adopt the changing environment to sustain
in the competitive world.
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CONCLUSION
From the above given report it has been concluded that leaders and managers play a vital
role in managing the task and activities of the organisation. Various management and leadership
theories can be used to achieve operational efficiencies (Stead and Stead, 2017). By using some
key approaches like JIT, TQM,etc. Organisation can easily achieve its goals and objectives and
can also increase the profitability on the long run.
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REFERENCES
Books and journals
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Online
THE DIFFERENCES: LEADERSHIP VS. MANAGEMENT. 2019. [Online]. Available
Through:
<https://www.go2hr.ca/management-leadership/understanding-the-differences-leadership-vs
management>.
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