Effective Operation Management in Toyota

This assignment explores the role of operation management in Toyota, highlighting its impact on productivity, profit ratio, and organizational growth. The report discusses various aspects such as culture, share information and numbers, and operation management as a process that helps employees make decisions. It also touches upon production, suppliers, and leadership theories, providing insights into how these factors contribute to the success of Toyota.

Management and
operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1............................................................................................................................................3
M1...........................................................................................................................................5
TASK 2............................................................................................................................................6
P2............................................................................................................................................6
P3............................................................................................................................................7
M2 ..........................................................................................................................................8
D1...........................................................................................................................................9
TASK 3..........................................................................................................................................10
P4..........................................................................................................................................10
P5..........................................................................................................................................11
M3.........................................................................................................................................13
TASK 4..........................................................................................................................................13
P6..........................................................................................................................................13
M4.........................................................................................................................................15
D2.........................................................................................................................................15
CONCLUSION..............................................................................................................................16
........................................................................................................................................................17

INTRODUCTION
Operation management defines as a method which is concern for designing, creating and
make direction processes to makes necessary improvements for attaining profits. It is concerned
for managing inputs through transformation processes to deliver inputs (services and products).
Toyota motors is international business firm in Japan. It's HQ is in Aichin at Japan. It provides
auto mobiles, commercial, luxury vehicles and engines. This report includes role and
characteristics of leader and manager in different situational contexts (Slack and Brandon-Jones,
2018). Apart from this, it also includes situational, system leadership and contingency approach.
Approaches of operation management, their importance and impact on operational management
has also been mentioned in the report.
TASK 1
P1
Toyota is a Japanese organisation which is largest company by revenue and market
capitalization. It make sales in motor hybrid vehicles which boost aggregate market development
in motor hybrid vehicles across the world. It has employed its organisational structure for
supporting strategic directions and business goals (Galindo and Batta, 2013).
Management structure of Toyota-
It's management structure is based on various operations throughout the worldwide. The
Toyota firm is to keep a powerful existence that makes some utility to its organization structure
which will maximise efficiency and increase capacity for utilization. Features of Toyota
organization structure are as follows-
Toyota had a strong centred worldwide organization which make powerful structure. Its
H.Q is in Japan to develop various determination policies that help individuals to communicate
with other companies. It has many characteristics which are as follows-
 Global hierarchy: In this hierarchy various international companies make single union is
called global hierarchy, Toyota make different organisation needs in which it will gain
decision making ability of territorial and enterprise portion heads that help employees to
expand their business all over the world (Hillier and Price, 2013).
 Geographic decisions: It is a process which make different environmental and societal
issues to interpret earth physical and processes is called geographic decisions. Toyota

make various organizational structure which have eight territorial divisions all over the
nation. This help to analyse their business to expand in geographic areas.
 Commodity based decisions: Toyota help to make various decisions on the basis of
products and help to compensate all problems and procedures in an organisation
Leader
Leader is a individual which commands and leads a group or organisation. Leader
influences group of people for achieving a specific goal (Crevier and et.al ,2012).
Role of Leader:
1. Leader creates a clear vision for its followers. Within Toyota, leader is responsible for
influencing followers or employees so that they can understand and accept future state of
organisation.
2. Toyota leaders motivates its employees and try to find out wants and requirements of
employees and appreciate them when they perform out of box.
Characteristics of leader:
1. Leaders of Toyota is honest in which they will establish a strong relationship with their
peers.
2. They have an ability to inspire others in which Toyota leaders have a vision to motivate
their subordinates by doing good work.
Manager
Manager is a individual who manages all organization activities and on the basis of it
make various planning. Within Toyota, managers can control different departments and give
guidance to people who work under them.
Role of a Manager:
1. Manager of Toyota performs Interpersonal role which includes figurehead act as leader
(provides direction to subordinates), acts as liaison.
2. Informational role is performed by manager of Toyota. They collect information from
other organisations .(Benzarti and Sahin' 2013).
Characteristics of managers:
1. Managers of Toyota has strong communication skills by which they can communicate
with employees

2. Managers of Toyota should be confident in abilities, skills, experience and in decisions so
that they have an ability to perform their duties.
Difference between leaders and mangers-
Basis Leaders Mangers
Meaning A leader is a person who
influences his followers to
achieve a specified goal in an
organisation.
A manager is a person who can
plan, organize, coordinate and
control all activities of
organisation
Characteristics Leader has qualities like
motivator, morale developer
and influencer.
Manager has qualities like time
management, delegating
authority, managing activities
and many more.
Difference between management and leadership
Management Leadership
 It is a process in which organisation
need to manage and coordinate things
in an effective way.
 It create scheme, plan of action and
methods to trust operation smoothly.
 It is an ability of an individual to
determiner, cause and alter others to
change in effective and success of an
organisation.
 It will look on problems and invent new
and imaginative solutions on it.
M1
Role of a leader- In any organisation a leader have a clear vision which can set all the
objectives for attaining the common goals or objectives. While applying situational leadership
the leaders of Toyota establish a perfect environment so that all the employees can work
properly. They have to set the target by which all the employees have to do the task in proper
time.
 They have to set the clear vision and mission for the organisation

 Leaders have a good communication skills while assigning or preparing the task for the
employees
Function of manager- The main function of all the managers of Toyota develop a
perfect work workforce planning so that they plan and mobilise various resources. Managers of
Toyota apply classical theory in which they have to satisfy all the physical ans social needs of
the employees in order to design a proper strategic plan. Managers have to certain objective while assigning the task to all the employees-
employees They have to perform all the duties specifically in making the organisation goals and
objectives.
TASK 2
P2
In any organisation role of leaders and managers is very important to make substantial
growth. Leaders and managers have different role and function in situation of organisation.
Staff turnover- It is a process in which number of worker who leave an organization and
will be arranged by new worker. This will help employees to make different profit margins in
order to organise all activities of firm. (Heaslip, 2013).
Resolution of conflicts- Within organisation conflicts can arise at any moment due to
miscommunication, beliefs, working environment, cultural difference and many more. Leader
and manager of Toyota have different role and functions to perform in this situation Management
of Toyota can set targets for each employee as per their designation, skills they acquire and their
responsibilities.
Planning- It helps to plan various resources in an organisation in which leaders and
managers will help Toyota to accomplish these objectives via proper planning. Manager and
leader needs to follow their vision so that success can be derived. When Toyota need plan to
launch a new product so leaders provide ideas and suggestions and on the other hand, managers
deliver to their subordinates and assign work (McArthur, 2015).
Timely delivery services- Leader and manager work in coordination to ensure effective
working of organisation. Role of leader within Toyota is to motivate employees so that
requirements of customers can be fulfilled. In this, trait theory of leadership help in measure

personality as well as performance of their employees. For this, leaders and managers easily
analyse their staff members abilities, interest and personality as per this they are distribute work
among them. They are divide skilled and qualified employees and give them rank according to
their performance level. In this, mangers are assign work to those staff member who are
complete task in given time period on the basis of capabilities.
P3
Situational leadership-This theory has been formulated and make a deliberate study by
Kenneth Blanchard and Paul heresy. It refers to when managers and leaders of Toyota essentially
modify their styles that suited for all followers in organization.
Strengths: -
 It easy to understand, practical and puts emphasis on leader’s flexibility. It creates a comfortable environment for workers in which workers perform comfortable
job duties.
Weaknesses-
1. It make an impact on long needs as compare to short needs in which situational managers
can fall into trap where they evaluate or respond to an immediate circumstance all the
time.
2. It can be ineffective in task oriented environments in which managers find themselves in
a position where task must be completed in specific way.
System leadership- It is a term that leaders will work on different levels to make profit
margins for an structure. This enables an employees to work on their own they have to make
plans with different levels of employees in organisation.
Strengths-
 Leaders can provide different roles and responsibilities to their employees which help in
increasing productivity in Toyota. It focuses on multiple dimensions of management that help managers and leaders to make
various decisions (Bichou and et.al, 2013).
Weaknesses-
1. It do not make contingencies or variety of styles for various operations in Toyota.
2. It may not be applicable for smaller organisations to make various laws and regulations
in which mangers and leaders find various decisions.

Contingency theory- It is a theory that is based on management effectiveness that is
contingent or dependent that based upon on interplay between different applications of
management.
Strengths-
1. Flexibility in structure of task. Different structural levels are required within different
types of task.
2. Leaders of Toyota considers all possible factors which can affect specific situation.
Weaknesses-
1. There is no definite solution to problem and apart from this it is costly and needs lot of
time.
2. All factors cannot be considered to reach to a definite conclusion due to lack of ability,
money or time and analysis of complete information is time consuming
These leadership theory has major influence upon such factors as -
Decision making – Decision making is a process which is used to manage different
components and make various decisions on commercial enterprise state. In Toyota leaders and
manager play an important role within an organisation because they are responsible for all
business operations and functions. They are develop effective decision which help them in
gaining required profitability and income.
Planning – It is a process which is use to make different planning to achieve a desired
goal and make different results of Toyota. If company manager plan in advance so they can
easily forecast future issues and requirement of resources. They can able to plan strategies and
policies according to the situations of an organisation (Radnor and et. al , 2015).
M2
Situational analysis- This is a theory in which leaders make different styles or the
behaviour of the employees so that they can attain the proper objectives.
Strengths-
 The leaders and managers of Toyota do the task in proper time
 In Toyota leaders have to make a good environment so that employees can able to make
the decisions
Weaknesses-
 The employees of Toyota not able to make long term needs for attaining the objectives

 They do not have the clear work force planning
Contingency theory- It is a theory that explains the management effectiveness of all the
employees.
Contingency - The theory had made the focuses on the task which has given to all the
leaders of Toyota. The leaders have to assigned the task to all the employees so that they can do
that on the proper time. This help to make different strategic decisions in which all the leaders
have to give the punishments or the rewards according to the working criteria of the employees
in the organisation.
Strengths-
 All the employees of Toyota do the task in a flexible manner
 They gave the rewards or the compensation when the employees do the extra work in the
organisation
Weaknesses-
 The task which is assigned to all the managers have to bears some cost which can occur
some loss
 Their is indefinite planning and the leaders of Toyota do not satisfy all the needs of the
employees.
D1
Situational leadership- In this theory all the managers and leaders have to set the clear
vision for organising various policies and procedures. In Toyota the employees have to do the
best task which is assigned to them so that they can receive the positive feedback from the
managers. They plan, manipulate and mobilise various resources so that managers and leaders
can make effective decisions.
System leadership- In this theory all the managers and leaders have to adopt different
styles or the behaviour that help them to achieve the common goals and objectives. While doing
any work in the organisation, all the employees have to make a proper work force plan so that
they do the task in the proper time. This help an organisation to establish different planning and
mobilise various resources.

TASK 3
P4
Key operational method is a process where goal of management is to maximise
efficiency while producing goods and services that satisfy full needs of employees in Toyota.
Lean production:
Lean production manufacturing is an methodology that focus on improve quality of
production of goods and services by minimizing wastage at highest level simultaneously increase
production of goods and services. The main role of manager in lean production is to ensure about
product quality, reliability and efficiency in better manner. They required to work on reducing
wastage of material while producing different type of goods (Rose and et. al, 2013).
Total quality management:
It is the duty of manager to work as a facilitator at workplace and it is responsibility of
manager to give education to employees while adopt TQM in organisation. They have
responsible for select right individuals so that they can give their major contribution as line
managers and can take charge of project in case of Toyota. In case of Toyota Leaders play
crucial role by taking sponsorship and set the culture in which employee morale and their
contribution should be foster. For maintaining TQM, the main role of manager is to upgrade and
improve the processes and system which ensure to develop high quality based goods.
Six sigma:
It is a disciplined, data driven approach which used to eliminate various methods from
manufacturing to transactional and from product to services. This will help HR managers who is
responsible in Toyota to implement various strategies that focus on process improvement and
variations may occurred due to application of Six sigma improvement projects. The manager
play an important role in building successful strategies and policies which assist an organisation
in gaining higher profitability and income.
Toyota help make analyses various programs in order to make proper training and
development, feedback and analyse some competitors. Time efficiency of leaders and managers
is very important to analyse some opportunities and threats in an organisation (Minas and et.al ,
2013). This will make some recommendations in order Toyota can make planning, executing and
control all ways.There are following improvements that make Toyota to be successful-

 Transmit clear goals and make proper evaluate of employees-Employees in Toyota
share different ideas and views which make them to work in a proper way, deliver
excepted results and make new innovations to an organization. Toyota target particular
employees who make new vision and make proper evaluation. Share information and numbers- It will help employees to inform to all leaders about
problems and variations in an economy. Toyota leaders will make a strong approach in
order to share ideas and views in an organisation that improves transparency between
employee and employer.(Radnor and et.al , 2015). Encourage open communication- Toyota can examine skilfulness which encourage all
employees of Toyota to express their ideas and views to make long term objectives in an
organization. Leaders of Toyota make employees to communicate in good way, be an
open minded person and make different plans and objectives. Culture-Leaders and managers will build different culture in order to make some fruitful
behaviour of all employees which will help in decision making and make better training
and development.
P5.
Operation management is an important factor to manage proceedings of firm and helps in
design and operation of processes in business to produce goods and services. There are some
important approaches that helps in enhance level of production and increase their efficiency.
Planning-
It is a process which develop various needs that used to accomplish goal in an
organisation. Human resource planning in Toyota make different planning resources between
HRM and strategic decisions in an organization.
Controlling-
It is a process which is used to control various activities in an organization starting from
planning till development. Market and company makes various approaches used to screened
inner composition of Toyota. Toyota make different activities which is use to plan, measure,
development and provide value added to all stakeholders in an organization (Swink and et.al.,
2017).
Executing-

Toyota help to execute following ways that help in making various policies in order to
make different plans and procedures in an organisation. They work in small companies or make
effective training and development for an HR employees in large organizations. Those
employees who work in large organization may have to give proper training and development to
all employees and travel other companies for meetings and make proposals.
Organizing is a process which is used to control all activities in an organization and
utilise them effectively. Toyota organise, plan, design and coordinate various activities which
help employees to work in proper manner. (Swink and et.al, 2017).
Importance and value of operation management in achieving business objectives-
 Operation management show an crucial role for smoothly run a business concern
operations and functions in order to gain profit and income.
 With the help of operation management, Toyota can make improvement in their overall
productivity process and it gives a measure of efficiency to the company manager as well
as employees. For this, they can easily reach with desired goals and objectives.
Value for operation management in achieving objective-
Value for operation management in Toyota help in making effective decision which are
related to human, business environment, ethics, morality and development of community. This
will help managers and leaders to make value added approaches which assist in reaching with
main objectives for making profit.
Leadership approaches-
Transformational- It is a leadership approach in which leaders identify changes and
make vision while working in a team to accomplish desired goals and objectives. Toyota leaders
make effective members to work in team which develop vision and face some challenges in an
organisation. It will make individuals and mangers to determine needs and goals of an
organisation.
Charismatic- In this approach leaders have calm and distributive behaviour while
making various decisions and develop vision for an organization. Toyota leaders have clear
vision and ability to engage more employees in an organization. They will develop different
leadership styles depending on personality and actions of them. It help in Toyota to analyse all
needs and goals of an organisation.

M3
In an organisation the leaders and managers planned a perfect workforce planning so that
all the they can achieve the common objectives. This help the leaders and managers to meet the
business objectives ethically. They planned, mobilise all the resources ethically so that Toyota
can attain the maximum benefits. The employees have to do the task on the proper time so that
leaders can assigned more duties and responsibilities in the organisation. They have to do the
task in a flexible manner so that employees establish a perfect planning, controlling and improve
the performance of all the leaders by attains more objectives in the organisation. The employees
of Toyota have good leadership skills so that they can build the perfect relationship with the
leaders. Leaders have to make different operations in which leaders choice the best
administration practices to attaining the maximum profit for the organisation. This will help to
develop their social and physical needs that help them to make perfect planning and
development.
TASK 4
P6
Business environment is a process which make marketers to build external and internal
factors and maintain customers relationships between buyer and seller that affect a business firm.
(Schönsleben, 2016). In business environment there are majorly two important factors consist
external and internal factors of leaders and mangers of a firm-
Competitors:
Rules and policies of organisation should be regulated by the competitors, competitive
marketplace companies are enough competitive and that force another to change their rules and
regulations according to other companies. There are various competitors which create issue and
problems for Toyota in the large market place by distributing same type of products. For this,
company manager and leader require to make decisions for developing innovative and unique
product which is totally differ from other companies (Slack and Brandon-Jones, 2018).
Customers:
Customer is most important part of every organisation and give satisfaction goods and
objectives is primary goal of every organisation. They are the people who give the profit that the
target of company. In case of Toyota it has huge chain of vehicles so they have to pay attention

on each and every product and services so that consumer can be fully satisfied. If company does
not develop products as per the requirement of customers so this will directly affect on their
business operations and its sales level. It is required for managers and leaders is to analyse
buyers demand and needs after that they need to make appropriate decisions for the welfare of
organisation.
Suppliers:
Suppliers are another important attribute in external environment of organisation that
majorly contributes in organisation progress and growth. Suppliers provides the products and
material to the organisation at appropriate time and cost. In case of Toyota it has huge no. of
suppliers that help in development and progress of organisational development that directly
influence operation management. The leader guide about requirement of raw materials in
organisation which leads to better decision making.
Employees:
An employee is an individual who is hired by manager for performing business functions.
It can be hired after the interview process is been conducted in an organisation. (Sodhi and et.al
2012). The leaders need to provide proper guidance of work to be performed by staff and
manager should manage all employees working in organisation in order to make better decision
making and achieve goal and objectives.
There can be some internal business functions that can influence decision making of
leader and manager as -
Finance- Finance is a process which make different ways in operation management
which is to make an organization to fulfil all requirements related to financing operations. In
Toyota managers make financing operations for creation of different goods and services which
satisfied needs of customers. It is essential for an organization to maintain proper balance sheet
of company by organising firms and operations. The manager of Toyota make proper planning
and budgeting for different activities to be carried out in business.
Operation-It is a process which is concern for designing, coordinate, leading and
controlling all activities of an organisation. Toyota managers make proper planning which help
to convert raw materials into finished goods to satisfy all needs of customers. They help to
mange various operations which is helpful in decision making. In order to run operational

activities such as designing, salary, promotion, manager should encourage all staff and members
so that work can be done effectively.
Strategy-This is a process in which managers achieved desired goal and objective to a
problem. Toyota make different interpretations for achieving a desired goal and make an art for
making effective and efficient resource in it. This aspect make long term decisions for Toyota
which is helpful in different marketing operations. It is important to make proper strategy by
manager of organisation so that business can run successfully in competitive era.
Design of the product-Toyota make different designs according to the needs of
customers which catered market trends. Innovation plays an important role in an organization
which build long term objectives and efficient marketing strategies. Toyota manager can take
help from employees in order to design creative and attractive products.
M4
Culture-Leaders and managers have to build a good culture so that all employees of the
Toyota build a good business environment in the organisation. In different aspects culture is the
major aspect in which a leader or the manager have to make a good culture in identifying the
needs and the social benefits of the employees. In this case Toyota need to analyse the SWOT
analysis to check the internal and the external environment. This helps to builds the creativity in
the organisation.
Share information and numbers-This factor need to analyse different needs and benefits
so that Toyota leaders and managers can organise various plans and procedures. The employees
should have open communication so that they share their views and knowledge in making the
various decisions and achieves the common goal. All the employees do the task in an effective
manner so that leaders and managers can share different aspects and knowledge. They develop a
strong approach or the effective relationship with the employee or the employee in increasing the
communication in the organisation.
D2
Operation management is a process that help employees in making different decisions in
the organisation. There are different factors that critically evaluate the application of operation
management which affects the business environment-
Production- It is the important factor that help the leaders to make different production
concepts. When the leaders and the managers of Toyota make the production process, it first

build the team groups so that all employees should work in the efficient team for perfect mobilise
planning. They convert all the raw materials into finished goods. Toyota leaders distribute the
work according to which all the employees can make best production process.
Suppliers-Toyota develop the external environment which help the suppliers to make
sufficient cost so that they bears in any possible. They made huge number of suppliers so that the
organisation can mobilised the differential planning and help the leaders enhance the growth of
the organisation. They determined the best alternatives so that different suppliers in the Toyota
help in making various decisions and effective planning is been analysed.
CONCLUSION
From above report it has been concluded that operation management is a essential tool
use to organise and plan various activities in an organization. Leader and manager gives their
contribution in create culture so that they give their maximum contribution in organisational
growth and. Leadership theories is help to make definite resource planning to organise various
resources. In organisation various circumstances appear in which operation management and
leaders with managers provide appropriate solution by access different methodologies. Operation
management helps in eradicate errors and increase profit ratio by increase in productivity.