Management and Operation - Toyota Plc

MANAGEMENT & OPERATIONS

CONTENTS
INTRODUCTION .....................................................................................................................................3
TASK – 1.................................................................................................................................................3
1.Introduction of Toyota and its management structure ..................................................................3
2.Defining and comparing the roles of leaders and managers & throwing light on management and
leadership .........................................................................................................................................4
3.Evaluating the roles of management and leadership in application to different organisational
situations...........................................................................................................................................5
4.Assessing strength and weakness of different theories and models of leadership and
management .....................................................................................................................................6
5.Conclusion and recommendation for future improvement .........................................................7
TASK – 2.................................................................................................................................................7
1.Key operations of Toyota Plc. – Introduction .................................................................................7
2.Key operational function and determining the roles and responsibilities of the managers in these
functions ...........................................................................................................................................8
3.Key operational approaches to operations management & its importance and role of leaders and
managers.........................................................................................................................................10
4.Evaluating external business environment factors which influence operation management &
decision making by leaders and managers......................................................................................11
5.Ways of improving operational efficiency for meeting out the business objectives using
leadership and management approaches .......................................................................................11
6.Conclusion & recommendation for future improvement ............................................................12
REFERENCES ........................................................................................................................................13

INTRODUCTION
Operations as well as management are being regarded as the major strength in almost
every firm. This can be better managed by effective leadership in place, as it helps in making
use of the present resources effectively and leads the path where goals are achieved
meticulously (Gaither and Frazier, 2012). The present research study is also focussed towards
the role of leaders and managers within the organization which helps in making an
improvement in the production level and creates products which are of high standard.
Further, the report will also going to evaluate varied types of leadership & management skills
practiced in the firm and will make an attempt to assess its relative strength as well as
weaknesses. It will also explore operational and management requirement for accomplishing
the business objectives. In this regards, a case of Toyota Plc will be taken into consideration.
As a production manager for this Japanese car manufacturing company, focus will be made
on how managers and leaders impacts the organization. The final section of the study
includes the role of leaders and managers in operation function of Toyota and will show the
relationship between leadership and management in this contemporary business environment.
TASK – 1
1. Introduction of Toyota and its management structure
Focusing in relation with the Toyota Motor Corporations, it is a Japanese
multinational automotive manufacturer being headquartered in Japan. Other than automobile,
the firm is also engaged into the business of financial services by its division of Toyota
financial services and also creates robots for various industries as well (Toyota-global.com,
2015). The corporate structure of the company includes around 364,445 employee all across
the world. Company is the world’s market leader in regards with the sales of hybrid electric
vehicles. Further, they are quite popular for their high quality manufactured cars and is being
growing fast globally. The management structure of Toyota is dependent on various business
operations being performed by them all throughout the world. As they are leading automobile
firm, they takes into consideration hierarchical structure which helps them in achieving its
objectives and strategic aims. Moreover, they maintain a global hierarchy with its
headquarters in Japan. All crucial decisions on each and every matter is being taken by
headquarter. It is also accountable for passing on judgement on major issues. The
organization structure of Toyota is divisional which is categorised into 8 geographic divisions
such as North America, Europe, Middle East, Japan, East Asia, Africa, Oceania, Latin
America, China, Asia and Caribbean. All these regional centres are required to report to
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Headquarter. With this system and structure in place, the firm can manager its activities and
operate effectively (Toyota Company Hierarchy, 2018).
2. Defining and comparing the roles of leaders and managers & throwing light on
management and leadership
Defining managers and leaders
Managers are those which designs and manage all the activities of the company
according to the pre-determined standards and objectives. Toyota Plc is engaged into
manufacturing, designing, trading and assembly of passenger cars in many parts of the world.
The main task of the managers of the firm is successfully achieving the objectives by
cultivating and executing strategies. They also plan out work activities according to the
objectives for the employees. Managers also assess the performance of their workers and do
appraisal accordingly (Greasley, 2011). On contrary to this, leaders helps in persuading the
behaviour of individuals for carrying out specified tasks or work activities so as to attain the
organizational goals. The leaders within Toyota has a crucial role to play, as they inspire and
directs the workers and leads them towards the path of success through their innovative,
directing and communication skills. They also provoke the works to perform as per the
defined goals and encourages them to make improvement in their productivity level.
Different Roles and functions of managers and leaders Planning – This is being regarded as one of the most important function of manager
of Toyota Plc. They manage and operates the each and every function of Toyota Plc
and set objectives that needs to be achieved by respective departments. Here, the role
of leader is to successfully communicate the roles of the employees and directs them
so that they can achieve those objectives effectively. Organizing – It is very significant that all the resources should be optimally utilized
and the manager of the firm ensure this (Volberda, 2011). The role of leaders here is
to help in proper allocation of the resources and accountabilities and also supports in
motivating the employees to perform optimally. Directing – The main function of the manager of Toyota is to direct the work
activities that is required to be carried out. However, it is the leader which develops
team and gives them guidance about the ways tasks can be attained. Controlling – The manager of the firm develops strategies and plans and all are
implemented by the leaders. Managers controls the activities of the workers and on
the other hand, leader verifies the result with the set standards.
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Difference between management and leadership
Management Leadership
It is an art of organizing and controlling
things efficiently
It is a skill for leading others by examples
The focus of management is towards
bringing stability (Born, 2012)
The focus of leadership is on encouraging
change
It is reactive It is proactive
It has short range of perspectives It needs good foresightedness
Helps in managing activities Helps in inspiring people
3. Evaluating the roles of management and leadership in application to different
organisational situations
With the effective functioning of both the leader and the manager, organization can
achieve its desired objectives successfully. Numerous functions of managers and roles &
characteristics of leaders significantly aids in appropriate execution of all the operations and
activities. In the current business context and scenario, Toyota Plc is coming across
challenges related to increased prices of fuel, equipments and other materials (Du and et.al,
2013). Therefore, they need suitable use of both of functions of managers and skills of
leaders so that they can develop plans and strategies in regards with minimizing the cost of
manufacturing cars and can also increase revenue for the firm. Different theories of
management can be comprehended with leadership skills that can support in achieving
success: The contemporary theory – In order to manage the present situation of increased cost
of manufacturing within Toyota Plc, contemporary theory is very much suitable. The
managers of the firm develops strategies such as selecting suppliers which can
provide materials at lesser prices. Further, the leaders of the company also make use
of his skills to encourage the employees to use improved technologies for minimizing
the cost of manufacturing. He can also create an environment which is full of trust by
eradicating conflicts related to change between the employees (Gaither and Frazier,
2012). Classical management theory – Given the current organizational context, this theory
is also used in Toyota Plc. Considering this theory, the managers creates policies for
augmenting the level of productivity. They have created a strategy known as KAIZEN
in which the workers and managers employ their best efforts to improve the
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production activity. Further, the leader follows participative leadership style so as to
get more input from the employees regarding ways of decreasing costs.
 Behavioral theory of management – Behavioral theory of management can also be
applied within Toyota Plc. The manager of the firm will takes into account the skills
as well as ability of the employees (Voss, 2015). Moreover, the leader on the other
hand, considers transformational leadership style for communicating with the
employees effectively. He also defines the policies and procedures to the workers
meritoriously.
4. Assessing strength and weakness of different theories and models of leadership and
management
Articulating in relation with the situational leadership, it is that style of leadership
where leadership style is normally based on the skills and competence of the employees or in
other words it is dependent on the developmental level of the followers which he is trying to
influence. This type of leadership can influence the operation management of Toyota Plc, as
numerous styles are being considered in different situations. Currently, company is coming
across with the situation of increased costs of manufacturing and thus, this type of leadership
is very vital due to many reasons (Li and Li, 2010). Firstly, with this, the group environment
within Toyota will be comfortable, as it involves employees in the decision making
sometimes. Secondly, it helps in increasing the awareness, as workers monitors the situation
closely. However, it has some weaknesses as well such as it tends to focus on short term
strategy as per the current situation and there is lack of comprehension of demographic
differences due to lack of experience in the workers.
System leadership on the other hand, is also applicable in Toyota Plc. With this theory
in place, the leaders will have control on the workers and their activities and can also
communicate the condition of the firm to them. It enables the leaders to create a condition
wherein people from all the level of the firm work efficiently to their best potential.
Presently, Toyota Plc want to alter their operations and requires to implement such strategies
that helps them in attaining KAIZEN. They even want their employees to adopt best practices
so as to reduce the costs of manufacturing. The major strength of this theory is that it helps in
clarifying the thought on the complexity as well as dynamism of the environment and offers
framework for generating new ideas. However, one of the weakness of system theory is that
its process is too lengthy and complicated (Frohlich and Westbrook, 2012).
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Finally, contingency theory emphasize on the alteration in the strategies with the
change in the situation. Here, the role of leader is also important as he encourages the
employees for bringing changes in the operations in order to solve issues and challenges.
Toyota plc has implemented this theory and has done some changes in their activities so as to
bring down the high prices of materials, raw-products and equipments from the suppliers.
The advantage of executing theory to Toyota is there will be prices task definition and
employees will be aware about their roles. But, it involves lack of creativity, motivation and
innovation within the employees (Daft, 2014).
5. Conclusion and recommendation for future improvement
To conclude it can be well attributed that leaders and managers impacts the operation
of the organization. There approaches and strategies defines whether the firm will pave the
path of success or failure. Managers and leaders through their innovative skills, various
controlling and organizing functions, proactive and reactive behaviour and art of inspiring
and managing people have impacted the firm effectively. For the future improvement, it is
highly recommended that sometimes leaders and managers needs to step out of box to be
more innovative. They should be flexible in their approach when they are trying their hand
for the first time towards a new procedure or strategy.
TASK – 2
1. Key operations of Toyota Plc. – Introduction
The success as well as growth of Toyota Plc is majorly dependent on its unique
operation management system which focusses on Just in time inventory management as well
as continuous improvement. The company has developed a centralized structure that
motivates participation of the workers and encourages team work. They have also integrated
different operational techniques such as inventory management, quality management,
designing of good and services, supply chain management for manufacturing high efficient
cars and just in time technology for attaining a competitive edge in the automobile market
(Ivanov, Tsipoulanidis and Schönberger, 2016). Toyota also follows lean manufacturing
philosophy for the organizational success. The manufacturing department of the firm pays
attention towards high productivity and thus, this lean manufacturing emphasize on cost
reduction by minimizing waste. They are maintaining the quality of their cars by continuous
improvement.
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2. Key operational function and determining the roles and responsibilities of the managers in
these functions
Focusing in relation with the operation management function, it is being defined as a
business function which is accountable for planning, organizing, coordinating as well as
controlling the resources required for manufacturing the products and services of the firm.
The operations function of Toyota Plc might be inter-related with the other functional
operations within the firm like finance, marketing, human resource, research and
development and many more. Thus, it can be said that each and every functional areas takes
into consideration operation activities as they all manufacture products and services (Key
Functions of Operations Management, 2018). The operation manager is the person who is
responsible for supervising the manufacturing taking place within the firm and makes
decision in regards with the process of operation and other functional areas connected to it. In
this current scenario, Toyota Plc has realized the significance of operation management and
agreed that it is the core function for the firm. The key functions of operations management
are as follows: Quality assurance and control – This is being regarded as one of the most vital
element of the production system. This function must makes sure that the products
and services being produced by the firm is in accordance with the declared quality
standards at the minimum cost. A manager of Toyota Plc is responsible for setting
standards of quality, inspecting the purchased parts and materials, controlling the
quality of manufacturing, performance testing and inspecting the finished products
(Berk and Toy, 2010).
 Capacity planning – This function is concerned with the acquisition as well as
determination of the productive resources to make sure that their availability is
according to the demand. Decision in regards with the capacity have a direct impact
on the performance of the production system. If there is excess capacity than there
will be low resource productivity and on contrary, inadequate capacity will leads to
poor customer service. Here, the major role and responsibility of the manager is to
estimate that the available resources within Toyota such as infrastructure, hardware,
software, human resources, technologies, machines and other processes are sufficient
enough to meet the future demand of the products or not.
 Inventory control – This function deals with determining the stock level available
with the company. In other words, it is a process of making sure that adequate amount
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of stock such as tools, raw-materials, components, finished goods, spares and supplies
are available within the minimum capital lock. Various techniques can be applied
such as Just in time and material requirement planning for reducing the inventory
(Magalhães, 2017).

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 Cost reduction and cost control – This function helps in minimizing the cost of
production by employing effective production management techniques and tools.
Here, the roles and responsibility of the manager is to effectively utilize the available
resources and contributes to the organizational targets in maximizing profits by
decreasing the cost of production.
3. Key operational approaches to operations management & its importance and role of
leaders and managers
Role of leader- Leader are persons who visualises a picture of the goal or the aim and then
engages and inspires the team members in turning this vision in successful reality (Heizer,
Render and Munson, 2016). These people think beyond what others normally think. Whereas
the managers are person who guides the way of the employees in achieving the vision of the
leaders. Leaders focuses on all the stakeholders of the organisation. They try to influence the
behaviour of all the stakeholder whether employees, suppliers, shareholders, etc. to
accomplish the goals of the company (Akindipe, 2014). Whereas the manager focuses only
on the process and structure necessary to attain the goals and objectives defined and set by
the leaders.
There are many key operational approaches which can be implemented by Toyota Plc.
for improving the overall operations within the company and some of them are being
described in the subsequent paragraph: Kaizen – This Japanese word means “continuous improvement”. This approach can be
used by the firm for minimizing the level of waste, enhancing the procedure of the
business, improving the satisfaction level of the customers and for maximizing the
efficiency of all the operations within Toyota Plc (Yang and Yang, 2012). The main
role of leader and manager in such approach is to identify the processes that should be
improved. In addition to this, leader is also required to guide the team about the ways
to minimize waste and focus on best ways to eliminate it. Total quality management – It helps in bringing efficiency in the production of the
organization. In other words, it focusses on making continuous improvement in the
products and services provided by the company considering the needs of the
customers. The main role of a manager in total quality management approach is to
alter the production process so that issues pertaining to the operations can be reduced.
Further, a leader is liable to encourage the staff member to work hard in collaboration
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with other and helps in eradicating resistance to change between the workers so as to
apply new approaches smoothly (Chiarini, 2013). Just in time Inventory – It is referred as the process that focusses on ordering the
materials only when it is needed at the time of manufacturing. With this approach is
place, Toyota Plc. will be able to make improvement in their processes and will
significantly eliminate waste from their inventory (Amasaka, 2012). The manager is
responsible for directing the operation and production department in regards with
controlling the inventory. Leader on the other hand, analyse the performance level of
the workers and keeps the track of their work.
 Lean production – this is a method or a approach used by TESCO where in the
management of the company focuses on cutting down the waste, and focusing on
maintaining the required quality. This approach does not work only in the operation
and the production but also works and can be applied in all the aspects and
dimensions of the business that is starting from designing, through production to
distribution to marketing to customer services etc.
 Six sigma- it is a type of operation management technique which is used to improve
the quality of the output produced by the production process by analysing and
removing the problems due to which the process of production is delayed.
4. Evaluating external business environment factors which influence operation management
& decision making by leaders and managers
Some of the external environmental factors that impacts the operation management
and decision making by the leaders and managers are as follows: Alteration in the economic condition – This is considered as one of the most crucial
factor that can impact the operation management and decision making of the leaders
and managers of Toyota Plc. If there is change in the economic condition and the
purchasing power of the people goes down than they will more likely to demand
lower prices for the cars. Company in turn need to improvise their production system
(Amasaka, 2014). The managers and leaders need to think about execution of more
efficient techniques and must train their employees to minimize waste so that cost can
be reduced.
 Government issues and regulations – Since Toyota is related with the automobile
industry, they are subject to various government laws related to quality as well as
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safety. Nowadays, the pollution laws have grown stricter. The vehicles being
manufactured by Toyota have to pass strict emission controls. Here, the manager and
the leaders of the company is required to make decision about implanting such
technology and processes within their products that emits less pollution.
 Technology and innovation – Technology and innovation taking place in the business
world might impact the operation management and decision making of the leaders and
managers of Toyota Plc. Presently, firms are investing huge on research and
development activities for manufacturing emission free and environmental friendly
vehicles. Driverless cars is also a new innovation paving way for many big brands to
achieve success (Fang and Kleiner, 2003). Considering these factors, leaders and
managers of Toyota too needs to rethink about their technologies and production
system and must motivate their employees to work better to achieve the same.
 CSR- it refers to corporate social responsibility. It is a type of self regulation that the
company has to follow. It includes sustainability, ethics, societal benefits, and to make
sure that the working and the operations of the business do not impacts the
environment and the society in a negative way.
 PEST- it is a technique which is used to analyze the impact of the external forces or
the macro environment which have a great impact on the working of the business.
This analysis includes the study of political, economical, social and the technological
factors which have a great impact on the working of the business are studied and
analyzed.
5. Ways of improving operational efficiency for meeting out the business objectives using
leadership and management approaches
Operation management is essential for almost every organization and so in Toyota
Plc. It helps the organization in making use of the available resources effectively and make
improvement in the quality of the products and services. Further, the business objectives of
the Toyota such as manufacturing high quality products and services, attaining competitive
advantage, maximum satisfaction to the customers etc. All these objectives can be achieved
by improving the operational efficiency of the firm (Operations Management and its
Objectives, 2018). This can better be done through leadership and management approaches.
Focusing in relation with the transformational leadership, it is an approach which pays
attention on the changes that needs to be executed within the firm. It is also apt for attaining
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competitive edge as well. Further, in this leadership style leaders work with the employees to
execute the change and creates the position of the firm superior from the competitors. Other
than this, a leader and manager should make improvement in the cross-departmental
communication. With this, workers working at all the levels will be able to work optimally,
as they will get needed information accurately. In addition to this, it is also vital to motivate
the staff members for higher work performance and this can be done by improving incentives
programs for the employees (Avolio and Yammarino, 2013).
6. Conclusion & recommendation for future improvement
To conclude it can be said that Toyota Plc has adopted efficient operational
management strategies from time to time, which has developed themselves over the time.
These approaches and strategies has helped in improving the performance and overall
efficiency of the firm. Toyota is already making use of lean manufacturing method and it is
highly recommended to make use of this lean manufacturing method in conjunction with the
other techniques such as six sigma and Kaizen for establishing the best possible operational
efficiency and waste management.
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REFERENCES
Books and journals
Amasaka, K., 2012. “New JIT”: A new management technology principle at Toyota.
International Journal of Production Economics, 80(2), pp.135-144.
Amasaka, K., 2014. An intellectual development production hyper-cycle model – new JIT
fundamentals and applications in Toyota. IJCENT, 1(1), p.103.
Avolio, B.J. and Yammarino, F.J., 2013. Transformational and charismatic leadership: The
road ahead. Emerald Group Publishing.
Berk, E. and Toy, A., 2010. Quality control chart design under Jidoka. Naval Research
Logistics, 56(5), pp.465-477.
Born, M., 2012. Difference between managers and leaders. Marksborn.
Chiarini, A., 2013. Relationships between total quality management and Six Sigma inside
European manufacturing companies: a dedicated survey. IJPQM, 11(2), p.179.
Daft, R.L., 2014. The leadership experience. Cengage Learning.
Du, S., Swaen, V., Lindgreen, A. and Sen, S., 2013. The roles of leadership styles in
corporate social responsibility. Journal of business ethics, 114(1), pp.155-169.
Fang, S. and Kleiner, B., 2003. Excellence at Toyota motor manufacturing in the United
States. Management Research News, 26(2/3/4), pp.116-122.
Frohlich, M.T. and Westbrook, R., 2012. Demand chain management in manufacturing and
services: web-based integration, drivers and performance. Journal of Operations
Management, 20(6), pp.729-745.
Gaither, N. and Frazier, G., 2012. Operations management. Australia:
South-Western/Thomson Learning.
Greasley, A., 2011. Operations management. Los Angeles: SAGE Publications.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2016. Global Suppy Chain and Operations
Management. Springer.
Li, H. and Li, L.X., 2010. Integrating systems concepts into manufacturing information
systems. Systems Research and Behavioural Science, 17(2), pp.135-147.
Volberda, H.W., 2011. Building the flexible firm: how to remain competitive. Oxford
University Press.
Voss, C.A., 2015. Operations management – from Taylor to Toyota – and Beyond? British
Journal of Management, 6, pp.17-29.
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Yang, C. and Yang, K., 2012. An Integrated Model of the Toyota Production System with
Total Quality Management and People Factors. Hum. Factors Man., 23(5), pp.450-461.
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