Management & Operations in Toyota - Doc

Management and
Operations

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1 Introduction to organisation and its management structure.....................................................1
2 Role of manager and leader .....................................................................................................2
3 Roles of management and leadership in different organisational situation. ...........................4
4 Strength & weakness of management and leadership approaches. .........................................5
5 Impact of managers and leaders on organisation. ...................................................................6
TASK 2 ...........................................................................................................................................7
1 Introduction to the key operation of Toyota............................................................................7
2 Key operational functions and responsibilities of managers in operational functions ............7
3 The keys operational approach to operation management and their values.............................8
4. The impact of external business environment factor that affect decision making by leaders
and managers...............................................................................................................................9
5 Operational efficiencies improve to meet successful business objectives using management
& leadership approaches ..........................................................................................................10
6. Conclusion and recommendation.........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Management and operations are mainly concerned with procurement of resources,
optimum utilisation of resources in order to convert raw material into finished good. It is
essential for company to achieve pre determined goal, proper arrangement in factors of
production and improves the firm's productivity & profitability (White, 2016). Apart from this it
plays a crucial role in handling issues of operations and maintenance of system used for the
production of goods. Toyota, Japanese multinational automotive manufacture company is taken
in this report for study. It commenced in the year of August, 1937 and headquartered in Japan.
They mainly manufacture vehicles, engines, materials handing machinery etc. and it is the third
largest automotive manufacturer in the world. This research covers the role, function of leader
and manger by applying different theories and approaches and their affect in various situations.
Finally the impact of leaders and manager on organisation in achieving goal.
TASK 1
1 Introduction to organisation and its management structure
Management and operation is a process of transforming input to output i.e. resources into
desired goods by minimizing the cost and wastage of product. It ensures the company to
maximising the output of goods with minimum resource input which improves effectiveness and
efficiency of company. In relation to Toyota, world's largest automotive manufacturing company
started in the year of 1937. It is headquartered n Aichi, Japan. It is known for its management
structure which made them to attain maximisation of profit with optimum utilisation of resources
(Baboli and et. al., 2014). For every organisation an effective management structure is required
in order to obtain organisational goal. Management structure is nothing but how a company
organise or handle its management hierarchy. The management structure of Toyota is segmented
into divisions i.e. office and shopfloor which is controlled or directed by General Manger. Each
departments General Manger has their assistant general manger followed by senior manger and
then section manger. In office department section manger has to monitor or control engineer and
administrator while in shop floor's section manager has group leader and team members.
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(Source: Management structure of Toyota, 2018)
2 Role of manager and leader
Manager is a person who manages organisational activities and act as bridge between
senior management for directing path in order to achieve organisational goal. On the other hand
leader is the one who influence group of people by inspiring them through actions or words in
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Illustration 1: Management structure of Toyota

order to accomplish the objective. As their title is different they have unique role to play in an
organisation. Some of their role which are described below :
Role of Manager:
 Problem solving: One of the crucial role of manger is to handle issues and provide
suitable solution which creates satisfaction among grieved parties (Nakamura and et. al.,
2015). In relation to Toyota, while handling conflict, manager gives employees the
freedom of sharing their issues which builds better relations between them.
 Communicator: Manager act as spokesman for an organisation. He deals with
shareholders, employers, government etc. and maintain proper relation between them. In
case of Toyota, manager communicate properly and builds a strong relationship within
and outside of company.
Characteristics of Manager:
 Reliability: Manager should be available whenever employees needed or required by
supporting them in order to achieve goal. In relation to Toyota, its manger are always
approachable in employees need which reduces confusions & conflicts.
 Time management: Manager should be punctual and complete the task in given time
which impact discipline among employees. In case of Toyota, manager is known for time
keeping which creates enthusiasm among employees to finish task in a given period of
time and it reduces delays in receiving outcomes.
Leader:
 Motivator: Leader is a person who inspires and encourage others to follow him through
behaviour or actions in order to attain pre determined goal. In context to Toyota, its
leader influence or convenience the followers without hurting their morale or values.
 Decision maker: A leader should not be bias during decision making. A good decision
effect the productivity of employees and improves the profitability of company
(Shaheen, 2014). In case of Toyota, manager takes fair decisions which encourages the
employees to accomplish organisational goal effectively.
Characteristics of Leader:
 Sense of humour: Leader should be able to find some laughter, positive situation in
order to create affirmative working culture for followers. In context to Toyota, its leader
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has great sense of humour which always finds some positive energy in order to remove
negative working culture among followers.
 Confidence: Leader must be confident in every step of work which build assurances and
positivity among employees to carry forward the work. In case of Toyota, its leader is
self confident for work which influence employees to perform without confusion and its
improves their productivity.
In the above statement as it explained that managers and leaders have separate role to
play within organisation. Like that management and leadership is neither superior or inferior they
are just different from each other which are describe below:
Particulars Management Leadership
Meaning Management is the art of
managing, organising and
coordinating things in best
possible manner (Difference
Betwen Leader and Manager,
2019).
Leadership is a skill of leading
or inspiring people for
obtaining objective
enthusiastically.
Strategy It follows reactive strategy. Leadership implies proactive
strategy
People It have subordinates. It have followers.
The theories which backing the management and leadership. Transformational theory of leadership : This theory of leadership largely assists leaders
within an organisation in adapting the leadership to the current organisational and outer
business environment situations. With the help of this theory, leaders of Toyota ensure
that behaviour of employees can be influenced according to the leadership and their
commitment towards work. Leaders make use of this to make sure that goals and
objectives are achieved in a desirable manner within due course of time.
 Classical theory of Management : According to the ideology of this management theory,
managers of an entity need to emphasize upon enhancing the profitability of
organisation . For this, managers in Toyota focus upon meeting the personal as well as
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organisational needs of employees so as to encourage them towards working in an
effective and efficient manner. This is done with the help of optimal decision making
policies which can ensure high profits for business.
3 Roles of management and leadership in different organisational situation.
For any company's growth it should have management that can plan, organise and
coordinate the employees at the same time a good leadership should also b there who can inspire,
influence them to perform the best of their effort. Both must go hand in hand in several
organisational situation in order to bring fruitful and satisfactory outcome for employees. Here
some of the management & leadership theories which applies for several company's situation are
as follows:
Situation.1 : Fast changes
In case of Toyota, it is one of the leading automotive car manufacturer. For them
technology plays a vital role in company's expansion as each day innovative technologies are
being introduced. So in this situation technology advancement impact products supply and
consumers purchasing behaviour. To tackle this issue management & leadership have equal role
to play.
Solution: As leader and manager knows that technology driven company can be a successful in
attaining maximisation of profit, in order to stand firmly among competitors. Thus, they move
towards the goal. In case of leader they will use autocratic style i.e. just implement the
technology and command employees to follow. For manager, they receives the order from leader
and execute the plan in order to capture the market. Thus it helps company to improve
profitability and enrich the company's value among competitors.
Situation.2 : Slow Changes
In context to Toyota, one of the multinational automotive manufacturer. Market
expansion is key element for company which improves their quality of product and increase
productivity. Being a multinational firm, establishment of new plant in different countries
improves market growth as well brings conflict of interest among employees. To overcome this
scenario management and leadership perform their role effectively.
Solution: Leader and manager analyse that market enlargement is one of the key factor for
company's enrichment among competitors. In case of leader, they implies democratic style i.e.
taking employees opinions regarding establishment of plant and their comfortableness of
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working culture (Strande and Brdjanovic, 2014). For manager, they acquire those ideas from
leader and crate a framework in order to implement those views. Hence, it enable company to
improves employees satisfaction level & company's productivity.
4 Strength & weakness of management and leadership approaches.
As various leadership and management theories are essential element for smooth
functioning of managerial and operational functions like planning, organising, production, legal
compliance etc. Each should work together for the accomplishment of pre determined goals. But
each theories have its own strength & weakness which impact organisational goal which are as
follows:
Situational Leadership : This theory explains that leader or manager should implies best course
of action based on different situation in order to improve employees morale and better working
culture. Some of the pros and cons of this theory are as follows:
Strength Weakness
 It enables leader and manger to be
flexible in order to accept any
challenges & opportunities.
 Each employees have unique behaviour
like introvert & extrovert. To handle
these character this theory improves
manager & leader's degree of
motivation by bringing new strategies.
 It mainly focus on immediate situation
which excludes the long term vision of
company.
 It fails in providing clear information to
leader & manager as they have to react
and suggest for immediate or sudden
needs of employees.
System Leadership: This theory identifies & builds the interconnection and inter relatedness
between several company's departments which improves the productivity. Some of the
advantages and disadvantages of this theory are given below:
Strength Weakness
 It enable leader & manager to bring
uniformity in decision making for
individual as well as for overall
 Uniformity in decision may arise
conflict of interest among employees.
 It creates difficulty to manager & leader
in apply this theory in practical
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environment.
 It enhance manager & leader
adaptiveness and allows them to be
dynamic in nature.
problems.
Contingency Leadership: This theory emphasize the relationship leader personality and situation
which impact company's & employees working culture. Some of the strength and weakness of
this theory are as follows:
Strength Weakness
 It improves the manger and leaders
effectiveness & efficiency in decision
making.
 It enables managers and leaders to be
reactive rather than proactive which
effect employees satisfaction.
5 Impact of managers and leaders on organisation.
Managers and leaders are the backbone for an organisation as they helps company to
attain organisational goal in an effective and efficient manner. The role of manager and leader
impact organisation productivity (Bahmani-Firouzi and Azizipanah-Abarghooee, 2014). Leaders
introduce the plan or technologies while mangers execute those plans by developing suitable
framework. While processing the goal mangers and leaders should be very attentive and focus
towards the objective. Apart from this they both should be proactive as well as reactive for
immediate situations like employees behaviour without affecting their morale and provide them
satisfaction in order to obtain maximisation of profit with optimum utilisation of resources.
TASK 2
1 Introduction to the key operation of Toyota
Operational management is the governance of business activities to improves highest
level of efficiency within organisation (López and et. al., 2015). It mainly concerned with
transforming raw material to finished goods or products with optimum utilisation of resources.
One of the main importance of operational management is to increase company's overall
performance . In context to Toyota, one of the multinational car manufacturing company in
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world headquartered in Japan. It has effective strategies which enable them to become a
successful in global scale. Some of the key operations of Toyota are given below:
 Quality of product: An effective operation helps company to reduce wastage and
manufacture qualitative product. In context to Toyota, it focus on maximising the quality
by optimum usage of resources which enable them to produce effective and satisfactory
products.
 Inventory management: This is a essential element for companies to manage their
production in effective manner. In relation to Toyota, they maximise their inventory by
maximisation of wastage which improves its profitability.
2 Key operational functions and responsibilities of managers in operational functions
Operational management states the converting input (labour, material, equipments,
capital) into output (goods or services) which adds value to the customers as well as employees.
Effective management of operation ensures successful delivery of goods and also enrich
company's profitability (Binz and et. al., 2014). In context to Toyota, it is known for its
operational function and mangers plays a vital role in processing those functions effectively.
Hence it enhance and enlarge the company growth. Some of operational function and the
responsibilities of managers in several operational functions are as follows:
 Planning: It is the foremost function of company which provides the framework and
blueprint of company's operations. Without planning it is difficult to carry forward the
pre determined goal. In context to Toyota, its plan everything in advance which
provides the clear direction of work without any confusions or varies of ideas. Hence it
improves the productivity of company. For carry forward the plan mangers develops
business and marketing plan which ensures the achievement of goal effectively in given
time.
 Coordinating: It enables the company to attain organisational goal or vision with
minimum effort. In relation to Toyota, their coordination of work is excellent in order to
delegating the responsibilities to each employees which creates better working
environment. For achieving goal mangers make use of minimum resources by assign the
work based on employees potentiality.
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3 The keys operational approach to operation management and their values.
Operational management refers to areas which is concern with controlling and designing
of process of function as well as redesigning business operations so that objectives of Toyota can
be accomplished. The ever-shrinking product life cycle, environmental concern, the digitalisation
of processes required innovation and new market or labour trends. The operational approaches
to operation management are:-
 Six sigma:- It refers to data driven, statistical data approach or continues improvement of
eliminating defects in process, products as well as services provided by organisation.
This approach is used to analyse the requirement of customers better and eliminate the
waste or defect in production (Morschett, Schramm-Klein and Zentes, 2015). The
Toyota must use this approach in production so that waste in production can be
minimised in organisation so to provide effective quality products to customers. If
customer requirement is analysed on timely basis then it become easy for organisation to
minimise waste as well as defect in production.
 Total quality management:- It refers to framework which beliefs if organisation all
members from lower level to higher level executive will focus on building long-term
success is possible quality of product is improved as well as delivering customer
satisfaction. In between production process company must use this process so that
quality of product is monitor time to time (Tian and et. al., 2016). To minimise the cost
of production this approach must be follows by Toyota.
 Lean manufacturing approach:- It refers to approach by using interchangeable with
just in time production. If production process is constantly improved or examined by
manager then Toyota company is liable to maximised the higher quality products at low
cost production process. The organisation is also being able to reduce inventory cost as
well as waste in production process. If organisation applied this principle then inventory
is not required to maintained in organisation. \
4. The impact of external business environment factor that affect decision making by leaders and
managers
To analyse the external business environment the management department of the
company can do PESTEL analysis, it is as following:
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 Political- This factor include various government policies such as taxation policies and
others (Wine, 2014). Toyota operate its business worldwide and in Japan or China,
government make change in its policies that create impact on the leader and manger of
the company because they deigned policies according to new or innovative law which
influence the decision making.
 Economical- It is related to the inflation and deflation, interest rate and others
economical activities. During global recession Toyota sales suffered like other companies
because buying power of customers had gone down and people could no longer afford
luxurious cars (Johnstone, 2016). Exchange rate of Japan also plays a critical role in
analysing the number of cars that would be sold and exported. This influence the decision
making of leaders an managers because they redefined their policies according to policies
such as exchange rate.
 Social- This factor include the tastes and preferences of customers, lifestyles and others.
Change in consumers demand the management department of the company trying to fulfil
their needs and produces products according to their needs (Peng, and et. al., 2015) . For
example, in Japan people preferred those cars who have latest technologies and features
such as AC, remote control and various others. So Toyota specially produce new designs
as per their needs.
 Technological- This factor include various technologies such as promotional, sales and
others. Toyota is leading the world when it comes to research, it has manufactured
alternative fuel consumption vehicles. It has firstly launched Hydrogen car and also
electric cars for fulfilling its customers demands. This positively influence the decision
making of the leaders or managers because it provide motivation to them to deigned new
strategies to produces new products.
 Environmental- It include various environmental law and other activities that are related
to environmental (Zhang and et. al., 2016). Toyota committed to provide a extra mileage
engine which reduce carbon footprints. This positively influence the decision making of
the leaders and managers and they designed policies and strategies according it.
 Legal- This cover all rules, regulation and policies made by government to regulate the
commercial operations of enterprise. Changes in these policies affect decision of leaders
and managers. For example: If government introduce some change in the policies related
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with auto mobile company then it will directly affect the decision of managers and
leaders of companies dealing in this sector.
5 Operational efficiencies improve to meet successful business objectives using management &
leadership approaches
Operational efficiency is an essential factor for company's production or service. It
enables the firm's growth in regional, local and international level of expansion. It is dependable
on internal and external drivers of company. It enables the firm to convert raw material into
usable products (Buchli and et. al., 2014) . In context of Toyota, management and leadership
drive to focus on the procurement of factors of production with a optimum utilisation of
resources. It also helps in planning, coordinating, organising of business operation in order to
achieve organisation goals and objectives. Effective operational efficiency enables maximisation
of wastage in order to capture the market share and improves overall performance of
organisation.
The factors impact on decision making by managers and leaders.
1. Culture – In an organisation there are many types of employees with different culture,
therefore when a decision is taken in the organisation and if any issue occur related to
their culture or the language used by the manager and leader is not understandable by the
employees of different culture, then it will become unethical and then from the next time
they will not participate in the decision-making process.
2. Corporate Social Responsibilities – In the organisation, there are many decisions which
are taken by the managers and leaders have to follow them . The manager has taken the
decision to contribute some of their fund in the social responsibilities. They know that
they are having the responsibilities towards their society so that's why they have the
decision of giving some of their fund to their society, and leaders are also agree with this
decision and follow the process.
3. Ethics – Ethics are refer to the moral principles that govern the behaviour of an
individual. In an organisation decision-making process, the behaviour of manager and
leader must be ethical and they must control and guide their employees to do the same
and follow the ethics made by the firm.
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4. Sustainability – This is about managing the social, financial, and environmental risks,
obligations and opportunities, should be managed by manager and leader so that the
effective decisions can be taken effectively.
6. Conclusion and recommendation.
From the above task it can be concluded that key operations are essential for organisation
like planning and coordination. The organisation must plan appropriately so that objectives of
organisation can be fulfilled. The approaches have to be applied effectively so that organisation
is being able to provide quality products to customers at affordable price. The external analysis is
essential to conduct in organisation to analysis the threats for business. These external forces also
effects the decision making of manager or leader. It management as well as effective leadership
approach are used in organisation then it become easy for organisation to achieved goals. The
company must use lean and six sigma principles as to minimise cost.
CONCLUSION
From the above given information, it can be summarised that both leaders and managers
play a significant role in an organisation. These are the one who formulate and implement
policies at workplace which have a great impact on performance of employees. Various
leadership approaches are there which can be use by leaders to influence the behaviour of
employees. Further, various approaches of operation management are there which can be use by
organisation to minimise production cost and to ensure optimum utilisation of available
resources. With help of all these company can ensure offer quality products to its customers at
minimum prices.
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Online
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