Leadership and Management Science

This assignment delves into various aspects of leadership and management science, including situational leadership theory, lean manufacturing principles, and big data analytics in supply chain management. It also touches on productivity management in construction and energy intensity optimization models for production systems. The assignment covers a range of topics, from organizational behavior to real-time information capturing and integration frameworks.

MANAGEMENT AND
OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Introduction and management structure of Toyota............................................................1
2. Definition, Role and difference of leader and manager ....................................................3
3. Role of management and leader in different situation .......................................................6
4. Strength and weakness of leadership and management approaches..................................8
5. Impact of leader and manager on organisation ................................................................10
TASK 2..........................................................................................................................................10
1. key operation decision in Toyota.....................................................................................10
2. Key operation of Toyota and role and responsibility of leader regarding these..............12
3. Description of key operational approaches......................................................................13
4. External environment effect leader's decision making ....................................................15
5. Operational efficiency with management and leadership approach.................................17
6. Recommendation for future improvement.......................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Operation manager and leader aimed to plan and control business operation in effective
way so that customer requirement can be full fill with minimum resources. Present study
incorporate role of leader and manager in different operation situation and various leadership
approaches along with their advantage and disadvantage. Report also render the understanding of
influence of manager on organisation. Study articulates the different operational activities in
Toyota and function of manager in each activity. Affect of internal business environment on
decision making of leader is also encompassed. Lastly, recommendations are given to effectively
manage the operational activities so that Toyota can achieve its vision and mission.
TASK 1
1. Introduction and management structure of Toyota
Toyota is one of the large automotive company render most competitive luxury and
commercial vehicle across the globe. Company produce 10,418,144 units in 2018, which shows
it operational effectiveness and efficiency.
Toyota is a public company, whose ownership is shared with general people as its shares
are traded freely in stock exchange. It has its headquarter in japan but its operational beaches are
spread worldwide. It has currently 364,445 employee in 2017. Company become sixth largest
company by revenue in 2018. It has achieved and maintain milestone success since 2012, by
produced more than 10 million vehicle per year and become first company to do this (Chiarini
and Vagnoni, 2015). Apart from automotive it diversified its business into financing, baking and
leasing service.
Earlier Toyota was using spoke-and-wheel structure, which was highly centralised. All
the major decision and communication was done by headquarter only, independent units was not
allowed to communicate (Tiwari, Wee and Daryanto, 2018). But, organisation started moving
from centralised to decentralised approach in 2013 after frequently technical issues appeared in
cars. Following is the new organisation structure of Toyota.
Global hierarchy
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Toyota empower regional and business heads with power, authority and autonomy in
decision making. All the business heads are accountable for their functional area. They have to
submit report to global headquarter in japan.
Geographical division
In new organisation structure, Toyota made eight regional division namely Africa, Japan,
north America, Latin America, China ,Middle East, Caribbean, East Asia and Oceania
(Robinson,2017). This change renders great flexibility to Toyota to develop and improvise the
product and service as per the regional market requirement and condition.
Product- Based division
2
Illustration 1: organization structure in Toyota

Toyota also adopts the product based division. In this organisation structure company
makes some divisions who are responsible to make some product or conduct any special activity.
For instance research and development, customer handling, marketing and logistic. Toyota
currently have four divisions i.e. (A)Lexus International, (B)Toyota No. 2 for operations in all
other regions, (C)Toyota No. 1 for operations in, Europe, Japan and North America, (D)Unit
Centre.
2. Definition, Role and difference of leader and manager
Manager is the person who is responsible for conduct certain activity and group of
activities. Manager has charge to perform managerial function in the context of business function
and manage the people of organisation (Collins, Muthusamy and Carr, 2015). they are
accountable to control the administration, and professional activity along with behaviour of
personnels. Leader is the person who lead by taking extra ordinary action and decisions.
3
Illustration 2: leader definition
(Sources: Definition of a Leader,2017)

Leaders equipped, superior position and prominent in their field, which influences to follow
them.
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Leader is motivator, innovator, influencer, role model and guider. Manager play role of planner
in different activities, organiser of resources, controller the process, output and human. Managers
also maintain the enough HR inventory, and put the right person on right time.
Difference between leader and manager
Dimension Leader Manager
Meaning Leader is an individual who inspire and
influence people to achieve the
objectives.
Manager is the person who is
responsible to manager function and
people of organization by planning,
staffing, organizing, controlling and
directing.
Approach Leaders set example in front of their
subordinates by performing task first by
themselves than only they set direction
to other.
Manager is limited to set plans and
details only. Manager formulate
policies and action aligned with
company's vision and mission.
Subordinates They have followers, as they are hero
to others(Raelin and et.al.,2018).
Manager has employees to manage as
their subordinates.
Objectives Innovation, mission accomplishment,
growth and development.
Attainment of given task and
responsibilities.
Unique trait Foresightedness, creativity, risk taking
and charismatic personality.
Mindfulness, aptitude, organizing
skills, commutation skill, and conflict
management.
Others Leaders are capable to bring the change.
They have extra-ordination power to
create vision. Leader possesses ethical
behaviour too.
Managers are able to execute the
vision, ability to direct and process
management skills(Covey,2017).
Focus Vision and mission People and activities
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3. Role of management and leader in different situation
Business is always surrounded by tangible and intangible uncertain situations like
restructure the business process as result of change in political, economical, social, technological
and environmental changes, trend change. Apart from it, internal factor like Employee
Grievances, interpersonal conflicts, Resistance of change, lack of resources, incompetency in
human capital, poor communication, ineffective process are some circumstance, which demands
altered leadership and management. For instance at the time of inflation, people's disposable
income get reduced and interest of loan get increased. In depressive economy people tend to
avoid purchase new vehicle, in such case Toyota manager's should focus on controlling the cost
of cars so that company can quote bit lower price to customer. Manager should use project
management techniques in this case (Daniel,2018).
Project management look upon the efficiency of production, less wastage, renegotiation
with supplier, keeping track on cost, apply TQM, six sigma and other approach, effective time
morale of manager in conflict resolution management, scheduling the activities, budget planning,
project change control etc. there is another case would be arises as financial crisis, performance
issue and frequent interpersonal conflicts. In case firm has lack of financial resources, in such
case, manager is responsible to minimise the wastage, overhead cost, arrangement of working
capital, utilise the relation with supplier for cope up with short falls etc.
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Generally leaders seeks to change, improvement and betterment in existing process and
methods. They identify and try to create favourable conditions to implement the change. For
instance automotive industry still has so many scope in which it can development the product
like fuel efficient cars, Predictive Vehicle Technology by using Artificial intelligence along with
machine learning, Self-Driving Technology etc. these change required leadership role motivate
people, redefine organisation vision and Talent management. Situational leadership is best fit
7
Illustration 3: situational leadership
(Sources: Situational Leadership Theory, 2016)

model to embrace the change. Regarding the conflicts, leader has to play role of mediator, they
should listen and understand people empathetically. Also, leader can arrange the informal events
and tours so that relationship management can be done.
Employee has less knowledge, experience, and skill which are essential for change will
be received directive leadership (Thompson and Glasø, L., 2015). These employees need high
level of direction as they have to work on dangerous machines and their work associates huge
financial and non financial loss (Operation department). Personnel who are already equipped
with high motivation, intelligence and knowledge but they are less motived with change are
subject to coaching style (marketing and finance team) Supporting leadership will be given to
employee who are able to work but has low confidence level (Research and development team).
And, leader will use delegation style for very senior people, who does not required external
motivation and guidance.
Leader also has to alter their leadership role when, they want to bring innovation from
within organisation and to encourage learning culture in business. Like leader celebrates the
small wins of employee and provide guidance for innovation.
4. Strength and weakness of leadership and management approaches
Strength of project management (Giant Chart)
 Project management techniques creates overall picture of activities and their complexity
associates with situation. Like manager get to the cost controlling scope in each
operation.
 Activities and process can be organise and co-ordinate with each other for desired
objective (Heagney, 2016.).
 Manager get all the information regarding performance and wastage, so that controlling
action can be taken on time.
 Project management is highly visible tools. Every one can the result as reports and charts
and align their action accordingly.
Weakness of project management techniques
 It does not take care the human management, which is a significant component affects the
performance.
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 Application of Project management have huge cost associate with it, which can destroy
the cost effective objective (Fleming and Koppelman, 2016).
 Manager may lose focus on other organisational function as project management required
high level of observation.
Situational leadership is developed by Paul Hersey and Kenneth Blanchard. According to
this model, leader has to change its controlling and management approach to deal with follower,
to make adjustment with their different development level, personality trait, background and
motivation level. In system leadership, leader tries to create an environment and set process in
such way, that automatically enhance the employees' engagement and contribution. In systematic
leadership, mentor is able to predict its sub-ordinates behaviour and create business condition
accordingly. In Contingency leadership, mentors aimed to render most suitable leadership style
which suits in different situation.
Strength of situational theory
 It provides customised and personalised solution for every problem and individual,
which help in solve the issue in less time and effective manner.
 It tries to create essential environment which are aligned with particular objective like
technical need demand training and development. Flexible leader is able to know the
T&D of each employee (French, Simpson and Harvey, 2018).
 Employee feels comfortable when they receive suitable mentorship, which enhance their
productivity.
 Situational leadership has high flexibility, as leader can change its leadership style
anytime.
Disadvantage
 It targets only short-term goals.
 People behave differently with female and male leadership, this can cause varied result in
same leadership style.
As it can be seen that leadership approach is more beneficial because it focuses more on
human management than only machines, schedules and process. If employee are not satisfied
and happy, then all planning would work as flat tire, which lead nowhere. Limitation of
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mentoring is not actually a problem because completion of short term objectives, renders
accomplishment of long objectives.
5. Impact of leader and manager on organisation
Organisation is success is majorly depended upon manager and leader. Manager is
responsible to conduct business activities in such way, that render cost effectiveness, work done
on time with maintained quality, control the variation. These methods ensure the effective
utilisation of operational resources, which eventually can be seen In price, quality and
availability of product Manager should try to make plan, aim, objective, schedule with help of
subordinates, as these people have work on designed plan. Best HRM practices will increase the
operational performance too. Leader role play a prominent role in further development,
innovation, expansion and growth service, production and business as whole. Leader also should
try to increase the participation of follower by open communication and autonomy in decision
making. This flexibility render more creative idea to leader to make a new product and process
by people who are actually working in that environment.
TASK 2
1. key operation decision in Toyota
Operation management comprises all the managerial function with context of production.
This area concern about ensure the efficiency of production by maximum utilisation of material,
labour, equipment, process and technology.
Toyota takes many strategical and tactical regarding operation management as it has large
order size, goodwill and global market. Company cannot compromise to quality as well as timing
of completion of orders. So its operation decision are designed in the way, which can help it in
its marketing mix. Following are the operation function of Toyota:
Quality management
Company's strategic decision regarding quality is accomplishes by using Toyota
Production System (TPS). Organisation maintains the quality of cars by continuous improvement
with the help of “The Toyota Way”. Toyota way is bunch of management principles use of this
leading Car manufacturer.
Location Strategy
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Local, regional and global location strategies are being used by Toyota. In United States,
Thailand and china, company has confine local manufacturing plants, firm use official
dealerships except Mongolia and few middle east countries (Nallusamy,2016).
Job Design and Human Resources
Organisation gives respect to each and every employee in its principle Toyota way. Also,
personnel receive training based upon result come out in TPS. Integration of TPS and T&D help
it, to establish the efficient lean manufacturing.
Inventory Management
Toyota tries to control the corresponding cost and idle inventory size by applying just-in-
time. This operational techniques is used in whole Toyota production mechanism.
Maintenance
Organisation's located facilities are jointed to a network, from way long. It also equipped
with global HR network to ensure business flexibility and resilience.
Scheduling
Lean manufacturing is being used by Toyota in Scheduling, so that it can minimise the
operating cost. Firm's HR and resources scheduling gets change with the change of marketing
condition, it helps in minimise and maintain the cost.
Supply chain management
Same, lean manufacturing techniques uses by firm in supply chain management too.
Automated system along with real time adaption minimise the bull-whip effect in company
(Tiwari, Wee and Daryanto, 2018.).
Design of Goods and Services
Toyota put huge investment in R&D of product. It designs its care and service with
technological advancement and standards. It allows integration of personnel needs of dealers In
after sale service.
Importance and value of operation management (OM):
 Operation management plays an important role to attain the aim and objectives of the
company such that it helps a firm to manage the daily activities and then make good use
of its resources so that it meet to its deadline.
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 OM is also plays its important role to improve the overall productivity and it also gives
the measure of its efficiency to the managers and employees. Therefore, it also focus to
use the available resources in the best way to achieve company's end goals so that it helps
to improve the overall productivity.
 Using OM into the working area will help to satisfy the customers needs as well. Such
that it is that system which provides a methodology in order to utilise in order to create
the desired customer product.
 Through OM the quoted firm also reduce its waste management system and this also
includes the lean manufacturing system which effectively reduce the waste sand JIT in
order to manage the inventory cost. Thus it helps to increase the revenue.
2. Key operation of Toyota and role and responsibility of leader regarding these
The key operations of organization are as follows:-
Quality management
Manager is responsible to maintain product, process and resources management and
controlling. Leader and manager is responsible to collect data, make report and analyses and
interpret reports, so that variance should be measure and corrective action can be taken on time.
For instance Toyota aimed to make 100 cars in a day, but in case it has made only 80 cars. In
such case manager is asked to reason of low production.
Inventory management
Managers keep track on optimum level of inventory, for it they predict the future sale
quantity based upon past sale, trend analysis and know the customer demand. They search and
make negotiate with supplier to ensure seamless flow of inventory. Manager keep their eyes on
inventory level with the of technology like RFID, integrated information system and cloud
storage.
Supply chain management
This managerial function is focused with availability of product to right people on right
time, at right place. Like in festival season cars demand would get high, but customer can
effortlessly own the vehicle because of supply chain efforts of Toyota. Manager make plan the
overall supply chain plan, identifies various supply chain option as wholesaler, retailer, online
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sale etc., estimate cost and time associate with each option, find the most suitable vendor and try
to establish coordination between sale team and vendor.
Innovation
Innovation means implement the new idea and thinking in existing product which should
have economical benefit too. Bring innovation in existing product to enhance the customer
experience, is responsibility of leader. Leaders uses their insight to identifies the untapped
opportunities, they take risk, motivate the people to implementing the required change to bring
betterment. Also, they alter the vision and mission statement, which shows the aspiration of
company. Leader not only direct people but they guide them with full support. Leader also
encourage the employee's efforts, render them safety etc.
3. Description of key operational approaches
The key operational approaches are as follows:-
Just-in-time
It is a lean management techniques in which, supply of raw material are aligned with
production schedule. In JIT system, Supply of material is ensured on the right time, at right place
with right quantity. In case manufacturer goods received in very advance before going to
production, it would enhance the maintenance cost (Zhang and et.al., 2015). Conversely,
manufacturing supplies receive after requirement, it will come in no use.
It is very effectively tool in automotive industry, as company's inventory requirement get
changed frequently. Also, it will render less dead stock as orders are make based upon customer
demand. Toyota has improvement its cash in flow as company has to make less capital expenses
on maintaining the idle inventory.
Lean manufacturing
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It aimed to minimized the wastage along with enhancing the productivity. It is made upon
various operational principles like kizen, Heijunka, Jidoka, 5S and continuous improvement
(Yang and et.al., 2015). This approach comprises 5 steps to be followed to achieve the waste
minimization goal, which are given in diagram as well.
Role of lean manufacturing in organization are waste management, identify the customer need,
warehouse cost management, high production observation etc.
Total production system
TPS is integration of jidoka and Just-in-time. Jidoka is Japanese term which means
“automation with a human touch”. This method demand, identify and correct the fault as soon as
possible, before further faulty production, Where just-in-time coordinates the different
production process (Chiarini and Vagnoni, 2015). TPS creates a beautiful and smooth
combination, integration and coordination of different activities that collectively tries to render
cost and time effective production.
The Toyota Way
It is a long term philosophy and value of Toyota which contains set of 14 managerial and
operational principles to look after the well being of production and human being. Main pillar of
this value is continuous improvisation and respect the people. The Toyota way help in create the
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Illustration 4: Lean process
(Sources: Lean principles, 2017)

organization to build the culture which company desired. This is a philosophy made by Toyota is
self to insure its business quality and function.
Importance of operation management
The operation management refers to as the managing the production and operation in an
effective and efficient way so that the company is able to achieve its objectives and goals. The
importance of operation management for Toyota is as follows-
Maintaining Quality- this is the main reason behind the importance of operations
management. This is because of the reason that if the operation management department of the
company is good then it will make sure that the consumers gets the quality product. So it makes
sure that all the raw materials used in by the company are of superior quality.
Reduces cost- this department within the company makes sure that the raw materials used
in by the company are effectively and efficiently used. This efficient and productive use of the
resources ensures that all the scarce and limited resources are used optimally. So this reduces the
cost.
Waste reduction- as the operation management works for the optimum utilization of the
limited resources. So it reduces the waste and improves the efficiency of the company and this in
turn increase the profits of the company.
4. External environment effect leader's decision making
Political factor- it includes all the governmental and political impacts on the company and its
working. Toyota's leaders shows less interest to establish factory outlet in politically unstable
countries. This is because of the reason that unstable political condition creates a negative impact
on the company's operational management system, as it has to deal with the political changes.
Hence, the decision-making of the manager and leaders too. Manager import and export decision
also taken on the basis of governmental policies. (Simons and et.al., 2015.).
Economical factor- Change in economy impact the price, cost, investment and expansion
decision. Like manager focus more on cost controlling in inflation, increases interest on loan
would enhance the cost of borrowing. In this case Toyota will not take loans as it has to pay
more interest and as a result, it affect the decision-making of the leader and managers.
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Social factor- it includes the society and its residents, the taste and preferences of the consumers
so it is very necessary to keep a track of the trends of the society. Like the latest trend is of health
consciousness and for that many consumers are avoiding vehicles and preferring to walk. So the
company must take into consideration this trend and work accordingly.
Technological factor- Automotive industry is highly sensitive to technological changes,
manager not only has to change and update cars with the latest tech but also has to equip the
latest updated technology in company as well. This factor impacts positively as upgrading the
latest technology helps the company in improving its efficiency as well as leaders and manager
also take better decision for the company's welfare.
Environmental factor- Environmental factor includes taking care of the environment (Butcher,
Bailey and Burr, 2016). Leader has to take it's all decision by considering the environment
protection as change in production process with more Eco friendly manner, waste management,
Eco- packaging, embrace the latest Eco technology in cars etc. The company must ensure that it
takes care of the corporate social responsibility and protects the environment with its effluents
(Chinyamurindi,2016).
Legal factors- it includes all the laws which are governing the business. This compliance with
the law ensures that the company is working ethically and in accordance with law. If the
company did not comply with the law then it has to pay penalties and legal charges that affect the
operational management of the firm.
CSR: It is another important factor that affect the operational management of the company such
that Corporate Social Responsibility is the key concern which manages the operation of large
business and also determine how the customers look towards a business. That is why, whether
the financial, social and environment goals are creates a good impact upon the business in order
to work efficiently. This direct create impact upon the operational management of the company
in positive way only if when the company follows CSR.
Ethics and Value: If the firm have follows the ethics and creates positive values to their
customers will also helps to creates positive impact upon the operational management. On the
other side, business have its own ethics then it also have more advantage over their competitors.
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Hence, this clearly reflect that ethics and value are another factor which creates impact upon the
company's operational management.
5. Operational efficiency with management and leadership approach
Toyota wants to change the traditional method of moving, it wants to lead in future of
mobility. Company also committed to innovation, quality product and respect the earth. It
decided to face all the challenges by inducing the engagement of employees. Ultimately firm
wants to become leader in global automotive industry by earning customer and trust (Coetzee
and et.al., 2016)Toyota should make more employee friendly policies, culture and process.
Because a satisfied human can bring improvement and outstanding performance in every
dimension of successful business. Like personnel will do better market research, use their
individual learning for organizational leaning, innovation, effective customer service, less
wastage, errors (Bruce,2015.). These all practices will help Toyota to as increased market share,
competitive advantage and huge profit. Firm can use management by objective instead technical
project management and for leadership it can go with situational leadership.
Management by objective (MBO) :
This is a management model in which goal, objective are made with mutual
understanding and consent of employee and employer both. It will not only increase the
employee engagement but also morale in them. Goals made by employees, creates sense of
responsibility, accountability in them (Chih, and Zwikael, 2015). Which eventually can be seen
as better result and less time and materiel wastage.
Situational leadership:
In this approach leadership is given to employee as per the individual requirement,
nature of work and situation. Like autocratic format is used when there is high work load, where
company render delegation leadership where creativity in work is required. These different
format help employee as per their need. In case employee receive the required help, information
support, their productivity will get improved. And, improved performance is part of overall
organizational success.
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6. Recommendation for future improvement
To maintain long term operational efficiency, company should use U-shaped design in
manufacturing layout. This arrangement enable manager to keep close look on every
manufacturing activity in confined space, which more easy to control. Manager should minimize
the backtracking in production, if there is necessary to do so, these products and process must
kept separate. Bottleneck should be consider in management activities as they can hamper the
overall productively. Manager should render flexibility in process, wherever it can. Flexibility
will help in fast decision making, fewer errors, wastage and defects. Open communication and
transparency in process should use, so that employee can evaluate their performance, qiality of
production, and potential loss.
CONCLUSION
From the above study, it has been concluded that management and operation goes hand in
hand. But to ensure more effectiveness in operation, firm should use different management and
leadership style based upon the specific requirement because all approaches have advantage and
disadvantage attached. One approach can be fit in one situation, where in other situation it can
become less effective. An organization should identified the nature of its operation activities,
then only it can be manage more efficiently. Leader should take proactive, tactical, precautionary
and temporary decision to minimize the impact of external factor,
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