Management Theory and Application Examples

This assignment delves into the realm of management theory, examining different concepts and models. It features a discussion on the Contingency Theory of Management, highlighting its adaptability to diverse situations. The assignment further analyzes practical applications of these theories by focusing on the organizational structure and hierarchy of the Toyota Company.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
1.Introduction to the organisation and its management structure ..............................................3
2.Definition and roles of both managers and leaders, highlighting the differences between
management and leadership........................................................................................................4
3.Different roles of management and leadership in application to different organisational
situations,....................................................................................................................................5
4.Strengths and weaknesses of different approaches to leadership and management ...............6
5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements................................................................................7
Task 2...............................................................................................................................................8
1. key operations of the chosen organisation..............................................................................8
2.Define each of the key operational functions, identifying the roles and responsibilities of
managers in the key operational functions..................................................................................8
3.key operational approaches to operations management and their value. ................................9
4. Impact of external business environment factors that affect decision-making by leaders and
managers. ...............................................................................................................................10
5.How operational efficiencies can be improved to successfully meet business objectives
using appropriate management and leadership approaches......................................................11
6.Conclusions and supported recommendations for future improvements to be taken by the
organisation. .............................................................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
Con.................................................................................................................................................13

INTRODUCTION
Operation management is that area of management that is concerned with preparing,
organising and supervising different processes and then making further required improvement in
process in order to achieve high level of productivity. It is concerned with dealing with certain
operations and processes existing within a organisation. Organisation taken under this report is
Toyota Motor Corporation It was established in 1937 it deals in auto-mobile industry (Viswanath
and Chiu, Oracle America Inc, 2015). This report will highlight and distinguish between the
different role of leaders and function of managers by applying a range of theories. It will further
examine strength and weaknesses of different approaches in relation with the work environment.
It will also analyse that how manger and leaders will improve their efficiency in order to achieve
overall organisation objectives. The later part of report deals with different environmental factors
that affects the organisation.
TASK1
1.Introduction to the organisation and its management structure
Organisation taken under this report is Toyota which is an Japanese multinational
automotive manufacturer headquartered in Toyota, Japan. The organisation operates in different
segments such as automotive, financial services and all other. It is operating and selling it's
product in approximately 190 countries (Dommisse and Isaksen, Austin GeoModeling Inc,
2014). The automotive segment deals with designing manufacturing, assembling and selling
passenger cars, trucks, and vehicle parts and accessories. Where as Financial service segment
offers the facility of lease financing to the vehicle dealers and customers. Management structure
of an organisation depicts how business organises its management hierarchy. It contains
arrangement of lines of authority and communication, rights, and duties. Toyota structure is
based on the different business operation which are being carried by the businesses across the
world. As it is one of the leading auto-mobile manufacturer in the globe. The company employ

and hierarchical structure that supports its goals. The business structure of organisation is divided
into three sub points. Which can be understood under the following sub points:
 Global hierarchy- As the organisation headquarter is situated in Japan. It is responsible
for taking the final decision on different matters and is also responsible for giving
judgement on the major issues or problems existing in the organisation. The main head is
responsible to have a final verdict on crucial matters. With the increase in the business
processes the regional heads are also provided an opportunity to present their say in the
matters.
 Geographic divisions- The organisation have 8 geographic division across the globe
situated in different location such as Latin America, Japan, North America, Europe,
Middle East, China, Caribbean and Africa. Each one of the division is bound to report to
the report to the headquarter . Thus, it facilitates in achieving efficiency and effectiveness
in business functions.
 Product- based division- The business have four of these that are Lexus international,
Toyota no.1 handles the operations in North America, Europe and Japan. Toyota no.2
handles operations in all the other areas and unit centres. Unit centres are responsible for
different factors such as transmission, engine and other operations (Toyota Company
Hierarchy 2018.)
2.Definition and roles of both managers and leaders, highlighting the differences between
management and leadership
Manger and leaders both play an important role in the functioning of the organisation.
Managers are individual who is in charge of carrying certain activities in the business (Yadav
and Kumar, 2015). They control and administer a group of staff. Where as Leader is a person
who is responsible for leading or commanding a group of people or organisation in the direction
of achieving overall organisational goals. Both of them perform certain roles in the organisation
that can be elaborated below:
Roles of manager
As a manger of the organisation individual is obligated to perform several roles on a daily
basis that are elaborated below:-

 Entrepreneurial role: As the entrepreneurship is involved with creating innovation.
Manager are also seek to add creativity in the workplace so that the overall performance
of the organisation can be improved.
 Figurehead role: It involves conduction of several ceremonies such as welcoming the
organisation's guest and signing of legal document. As the manger is representing the
organisation to outside or official visitor they are responsible for creating a link between
them and the organisation.
Role of leaders : The main role of leaders in the organisation are as follows-
 Integrating the individual goal with organisational goals- A leader with the use of
traits integrate employees goals with the organisational goals. They try to coordinate the
effort of people towards achieving the common objective.
 Parental figure- Leaders are responsible for leading and commanding the efforts of
individual and groups in the right path.
Difference between leadership and management-
BASIS LEADERSHIP MANAGEMENT
Meaning. Leadership is a set of skill
which comprises of leading
others by setting examples.
Management includes setting
activities and coordination of
different activities in an
effective way.
Emphasis. It is focussed on inspiring
people.
It focusses on managing
activities.
Perspective. It requires good foresight. It has a comparatively short
range perspective.
3.Different roles of management and leadership in application to different organisational
situations,
There will be numerous situations in which Toyota will have to deal with different
organisational situations and in every situation the role of managers and leaders will differ. The
following are the situations discussed below:
Rapid changes

When the business environment is highly dynamic and stability of the government of the
country is not there, than this will require to quickly and rapidly changes in the organisations as
well to accomplish the business goals and objectives. In these contingency situations, leaders
will follow autocratic leadership style (Nayak, 2015). This is because in this leadership style, the
leaders themselves take all the decisions without taking suggestions or advices from the sub
ordinates as rapid changes are required so there is lack of time as well. In this context, manager
will be responsible to quickly modify the policies and plans of the company so that the new
policies can quickly adopt the changes and business goals and objectives can be accomplished
For example the trade agreement policies changes then it is duty of manager to identify theses
changes and train people about theses changes and and the leaders are suppose to motivate
people to work in accordance with these.
Slow changes
When the business world and government of the country is highly stable, then Toyota
will focus on adopting changes by thoroughly identifying and analysing the business world and
surroundings. In such changes, the leader will use democratic leadership which involves taking
view of other co-workers into consideration while taking decision (Åström and et. al., 2017).
When the economy is stable organisation manger will use democratic leadership style which will
help them to take suggestion of their employees and they will be able to receive innovative ideas
and thus, they will be able to make better decision in the business. For instance if the economy is
stable the organisation will be able to deeply analyse the market in order to produce new
products in order to attract more customers. .
4.Strengths and weaknesses of different approaches to leadership and management
There are different types of management and leadership approaches that are being used
by organisation in order to facilitates smooth functioning in the business. That can be further
explained below:
Classic Approach- This approach is related with managing in classical methods. It is
oldest formal school which started in the 90's. It involves increasing the efficiency of both
workers and organisation which are based on management practices. It believes that employees
have only economical and physical needs and the social need and need for job satisfaction is not
important as the compared to the earlier one's. It includes scientific, bureaucratic and

administrative management. There are various strength and weaknesses associated with the same
that can be discussed below:
STRENGTH WEAKNESSES
 Hierarchical structure dividing the
structure into three management level.
 Division of tasks that provide ease. It
will help the business to work more
efficiently.
 Motivating employees through
providing monetary incentives.
 The main weakness of the theory is that
it is rigid and tough structure.
 Achieving high level of productivity
and efficiency. These involves
expenses of creativity. If the business is
not taking the social needs in
consideration then they will not be able
to attract people on a higher level.
Contingency management approach- It believes that the management effectiveness can
be achieved by application of management behaviour into different situation. That emphasis on
changing the management style as per the need of the situation so that different situation can be
tackled differently (Contingency Theory of Management, 2019). Different strength and weakness
of the approach can be discussed below-
STRENGTH WEAKNESSES
 It will help to tackle different situation
as manager will act according to
different situation.
 It will provide flexibility in the
workplace. Which will help the
business to increase efficiency.
 It is complex as the manager needs to
act according to the situation's need.
 It is reactive not proactive. It will be
difficult for the business as situation
differs from time to time.
5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements.
Manager and leader plays an important role in the organisation. They play different role
in the working of the business such as managers play roles such as figurehead and

entrepreneurial roles. Where as leaders integrate the individuals goals with organisational goals.
Organisation uses different approaches in order to influence individuals and manager and leaders
assist their smooth implementation in the business.
In order to increase the efficiency and effectiveness in the work process manager should
focuses on enhancing the effectiveness of communication system. So the information can be
passed without any error or mistake in the workplace (Lüttgau, 2016). They should also focus on
increasing the employees engagement in different activities so that their suggestion and
recommendation can also be taken into consideration for taking decision in the workplace. This
will help in increasing the employees motivation level.
Task 2
1. key operations of the chosen organisation.
Toyota is an multinational automotive company operating in several part of the globe. It
serves customer from all across the globe by providing their products and services to them. The
key operations of Toyota includes several activities such as designing goods and services Quality
management, layout designing, supply chain management, process and capacity designing,
Inventory management and Job design. Different decision are to b taken by managers in order to
ensure smooth functioning of the key operations in the organisation.
2.Define each of the key operational functions, identifying the roles and responsibilities of
managers in the key operational functions.
There are different type of operations that take place in the functioning of a businesses
and mangers are suppose to fulfil their responsibilities in the same. That can be elaborated from
the below points:
 Designing of goods and services : As Toyota uses technology in development of product
and services. Managers are response to analyse the market and find out about the
technology used by the other businesses that can be used in the business in order to
produce product with comprises of latest technology.
 Inventory Management: In order to continue the production of product and services it is
important to ensure that the material required in the manufacturing processes are being
available to the business. It is responsibility of manger to ensure that the business have an

adequate amount of raw material and other resources that are required in the production
process (Umachandran, 2016).
 Quality Management: In order to ensure superior quality in the production the
management of the Toyota company uses Toyota production system. It is the job of
manger to ensure that quality is being maintained in the different process of the
production department so that the organisation can strive for continuous improvement.
 Job design and human resource: The organisation emphasizes on respecting all people
that are associated with the organisation. It is also integrated in the human resource
programme and policies of the organisation. Manager is responsible to ensure that
company have an adequate amount of human resource and also to ensure that the
problems faced by the workforce are solved on a timely basis so that they can work
efficiently.
 Supply chain management- In the area of strategic decision related with operations
management the organisation uses automatic systems for enabling real time adjustment in
the supply chain. Manager needs to ensure that the that decision taken in the supply chain
management system of the organisation is taken after analysing and it should be focussed
on creating a cost effective method enabling the smooth flow of production.
 Scheduling- In order to finish different task in the organisation in the given time the
company prepare schedule of different tasks such as resource scheduling it hep the
business to decrease the operating cost. Manager will take adequate care while
scheduling different task so that they can be finished in the assigned time period and also
to ensure that business does not face any confusion about different job responsibilities.
3.key operational approaches to operations management and their value.
There are various types of approaches that are being used by Toyota operation
department that can be further discussed below:
Just in time : It is a method which comprises arrangement of labour, material and goods
exactly in time when they are being required in the manufacturing process. It main objective is to
facilitates regular production by removing the obstacles that can arise because of the non
availability of the things that are important in the process. It help the organisation to store the
right amount of inventory and helps to avoid over stock of the same. It is very important for the
organisation as it maximise the inventory turnover and helps in minimising the cost associated

with holding inventory. As the cost gets blocked in the inventory if the organisation stock large
amount of it by this method organisation save their money from getting blocked. For this method
organisation requires good understanding of supplier and manufacturers so that they can order
the right amount of inventory and also can maintain the quality and quantity for the same
(Pedersen, Boeing Co, 2016).
Six sigma : It is an program that is focussed on improving the customer experience and
minimising cost. This focus on minimising the defect in the operation and transaction process to
a great extent. It will help the organisation to decrease the changes of mistake and error in the
processing of goods and services.
Total quality management: It can be defined as continuous efforts which are being
made by both employees as well as organization in order to guarantee long term customer loyalty
and customer satisfaction. It can be also defined as an customer centric oriented approach which
is focussed on alignment of all effort towards achievement of common goal which is focussed on
enhancing the quality and quantity of product. By ensuring quality and quantity Toyota is able to
create a better satisfaction level among it's customers.
4. Impact of external business environment factors that affect decision-making by leaders and
managers.
There are different factors in the business environment that may affect the decision
making process of leaders and managers. Certain factor related to the external business
environment can be elaborated below:
 Political factors: These comprise of factors such as political stability, taxation policies
and trade agreement. As the organisation is operating in different part of the globe it is
important for managers to understand the political environment of each place so that they
can work within the government mindset if the government is focussed on implementing
eco friendly methods in the production process then it the responsibility of manger of
Toyota to research about these methods and implement them and it is the responsivity of
leaders to train people so that these can be implemented.
 Economic factors: These involves factors such as inflation rate and recession. If the
economic condition of a economy is better then it will encourage the operation of the
organisation in that economy. If the economic condition is good then the manager of

Toyota will be able to be able to produce more thus proving more employment
opportunities. Thus Leader will be able to motivate more people.
 Social factors: These comprises of effect of different socio culture factors on the
organisation. For instance the trend reflect the increase use of hybrid and electronic
vehicle then the business will try to produce more of them. The manager and leader both
will work towards increasing the production of the same in order to satisfy customer
needs.
 Technological factor: As the economy is growing fast there are various kinds of
technological updates that are taking place in the world. In order to produce product with
latest technology Toyota manager needs to analyse market and enable them in the
production processes. Then it is the responsibility of leaders to provide training to the
employees so that they can develop skills that will enable them to use these latest
technology.
5.How operational efficiencies can be improved to successfully meet business objectives using
appropriate management and leadership approaches.
Operational efficiency can be improved by putting the right combination of people,
processes and technology that is done in order to maximise the organisation performance. It is
done in order to minimise the waste and maximise the value creation process of the organisation.
Which is done to achieve the overall organisation goals that are:-
 Employee orientation- The business focusses on developing career path for employees
and facilitates several training and development programme so that their efforts can be
directed in the right direction.
 Sales objectives- Achieving higher profits by selling higher number of auto mobile
products.
 Organisational objective- Toyota objective to provide quality products while satisfying
the consumer needs and wants.
In order to achieve operational efficiencies organisation can adopt certain ways such as:
Improving customer service- Organisation will focus on improving the overall
customer service which involves providing proper after sales services, Treating customer with
respect and giving them proper time and attention (Khan and Brissenden, Altera Corp, 2017). As
the organisation is dealing with a large number of audience and each customer satisfaction level

and preferences differs from one another. The Leaders will use total quality management
approach in order to maintain the quality in the production processes and if there is high quality
in the product that will automatically increase the customer satisfaction level. Where as the
managers will use contingency approach which comprises of adopting to changing circumstances
as the world is dynamic mangers needs to prepare them to face future contingencies that lies the
near future.
6.Conclusions and supported recommendations for future improvements to be taken by the
organisation.
From the above part of the report it has been concluded that operation management plays
an important role in organisation. It also defines the approaches of operation management which
are being adopted by the organisation. It also analyse different environmental factors that effect
decision making process of the company. It can be recommanded to the organisation to focus
more on the satisfying the customer needs and preferences and the designing products
accordingly. They can also produce products that can be afforded by different section of society.
As the society comprises of different class of customer and this will help them to capture every
section of the same (Pedersen, Boeing Co, 2016).
CONCLUSION
From the above report it can be concluded that leaders and mangers plays an very important role
in the overall functioning of the organisation For further analyses different approaches have been
explained with their advantages and disadvantages. This report also explains that how manger
and leaders deals with different situation and how it effects their decision making process.
Further more various factor comprising of external factors that effect the organisation
performance level is being discussed in the later part and recommendations have been made to
organisation which will help them to improve their performance in the future.

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Online
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Toyota Company
Hierarchy
Con