Operation Management in Toyota

Management And
Operation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Roles and characteristics of leaders and manager.............................................................3
TASK 2............................................................................................................................................5
P2 The role of a leaders and function of manager apply in different situational context ......5
P3 Different theories and model of approach ........................................................................7
TASK 3............................................................................................................................................9
P4 Explain key approaches to Operations management and role that leaders and managers
play.........................................................................................................................................9
P5 Importance and value of operation management in achieving business objectives........10
TASK 4..........................................................................................................................................12
P6 Factors within business environment which impact upon operational management and
decision making by leaders and manager ............................................................................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
Operation management is area of management related to designing as well as controlling
the procedure of production and redesigning business operations within production of goods or
services. It include planning, organising, coordinating and controlling managerial functions.
Moreover, operation management also include management of people, technology, equipment,
information and several other resources required for product of goods and services. Leader and
manager are the two person in organisation who play important role in operation management
(Boyd and Dougherty, 2016). This assignment is based on Japanese company named as Toyota
which is multinational vehicle manufacturing entity. Respective organisation is founded in 1937
by Kiichiro Toyoda and its headquarter is in Toyota city, Japan. They are serving at worldwide
level and product offering by them are Auto-mobiles, luxury vehicles, commercial vehicles and
engines. This project will going to discuss role and characteristics of leaders and manager. Along
with this, also explores several approaches of operational management including application of
theories and models. Beside this, factors of business environment will be discussed which impact
on operational management as well as decision making.
TASK 1
P1 Roles and characteristics of leaders and manager
Toyota is an Auto-mobile manufacturing multinational company that is providing good
services and products to customers since many years. The organisational structure of this
company adopts a hierarchical structure in which power flows from higher level management to
lower level management. Employees and subordinates are managed by managers and leaders and
managers are responsible for effectively guiding and supporting the employees. The managers
and leaders of the company work together for achieving the goals and objectives of the company
in given interval of time (Ellitan, 2017). Leaders and managers are an important part of
enterprise and they have to ensure growth and development of the employees as well as
organisation.
Role of a leader
A leader is an individual who is responsible for motivating workforce and managing the
behaviour of employees for achieving goals and objectives of the company. In context of Toyota,
the leaders use to make positive environment at work and encourage employees for giving their

best and achieving the targets assigned to them in given time. Leaders ensure that work is being
carried out in an appropriate manner for effectiveness and productivity of tasks.
Role of a manager
A manager is defined as a person who is responsible for authorising tasks and managers
to employees (Eraki, 2015). The mangers of Toyota ensures communication and provide relevant
information to the lower level employees for accomplishing their goals and targets. The
managers of Toyota are creative and innovative and they ensure that employees develop skills
and abilities for meeting the requirements of the organisation.
Similarities between Mangers and Leaders of Toyota
Both the managers and leaders work together for achieving the goals and objectives of
the company in given time. The leaders and managers wants to increase the growth and
profitability of the company.
Differences between managers and leaders of Toyota
Basis of Comparison Managers Leaders
Behavioural characteristics The mangers of Toyota are
involved in making
innovations and creations in
the organisation that will
enhance the profitability and
growth of the company.
The leadership in Toyota
emphasise on the motivation,
influencing and developing
confidence among employees
to work hard (Fan, Liu and
Zhang, 2015).
Authority and power Management has the authority
to do allotment and
management of tasks, decision
making and control of
organisational activities.
Leadership comes with the
power to ensure increased
productivity of employees and
timely completion of tasks in
stipulated manner.
Subordinates Management of the enterprise
have employees as
subordinates.
Leadership tends to have
followers as subordinates.

Conflicts can occur in any organisation as different kind of people work together. Thus it
is important for leaders and managers to handle such situations in the company for effective flow
of operations and functions (Han and et. al., 2017). When there is a situation of conflict in the
organisation, there are situations where the manager and leader has to monitor and supervise
conflict scenarios and take appropriate steps for resolving personal and professional fights
among employees. In Toyota, both leaders and managers adopts contingency management theory
for solving issues at workplace. They ensure to create positive work culture in the organisation.
TASK 2
P2 The role of a leaders and function of manager apply in different situational context
In organisation, there are several situation which gives direct impact on the decision
making of leaders and manager. Thus, they have to made some strategies to react on these
situations so that work can be done in effective manner. There are some major situation which
impact on working of Toyota explanation of these are mention below:-
Fast changing surroundings - Competitive business environment and changing need of
customers is the situation facing by Toyota. Within this situation manager and leaders play
essential role for proper management of overall situation. Explanation of their functions and
roles are as follows :-
 Role of leaders – In this situation role of leader is to conduct meeting with employees and
make them aware about conduction of changing business environment (Idris, 2016).
Along with this, leader motivate staff members to work according to the situation because
it is the only way to get work done in effective as well as appropriate manner.
 Function of managers – Within respective situation manager of Toyota have to analyse
situation and changing needs or wants of customers. So that, strategies can be develop in
effective manner related to the situation of changing business environment as well as
customers needs and wants.
Although, for handling above mention situation of fast changing manager as well as
leader of Toyota implement scientific management theory within their working. So they can
apply changing situation within effective and appropriate way (Ma and Sun, 2012).
Conflict situation – Apart from that external situation company is going through internal
issues also such as conflicts within staff members working within Toyota that will be from top

level, middle and lower. Because of this situation staff members as well as employees are not
able to perform daily basis activities in effective manner and it result in decreasing profitability
of firm and market sheet. In this, manager and leader have their different functions as well as
role to be performed. Explanation of these are as follows :-
 Role of leaders – To come out with the situation of conflict, role of leaders is to conduct
meeting and understand views of each and every employees (Nayak, 2015). Because this
is the only way through which main reason behind problem will be discussed and
resolved. Moreover, leaders also convince employees to not increase conflicts because it
will effect working of everyone within Toyota.
 Function of managers – By developing or designing strategies manager of Toyota can
resolve issues within effectual manner. Along with this, rules and regulation can be
develop by following these company have to do their work and their will be no chances
of conflicts.
To overcome with the situation of conflict, leaders and manager of Toyota can adopt
Theory X and Theory Y. This will result in developing strategies as per the behaviour of
personnel which result in reducing conflicts (Wen-chao, Fan and Wen-wen, 2012). In addition to
this, staff members will also feel connected with their working areas when their behaviour will
be consider while framing policies.
Personality Clash: It refers to the situation where opinions of two employees do not
match and misunderstanding arise between them. This situation must be handled by leaders and
managers of respective company effectively. Role of leader and function of manager is explained
below:
 Role of leader: if such situation arise in an organisation, leader of respective firm should
understand the views and opinions of both employees and take decision accordingly. This
will be fair treatment for both workers.
 Function of manager: manager of respective company must make sure to fulfil needs of
employees and provide them positive environment. This will keep them motivated and
work towards the attainment of goals and objectives of firm.
Fayol management function – There are mainly five function of management given by
Henri Fayol as well all these focus on relationship within staff members and their management.

Along with this, all these five management function gives references so that problem can be
resolve in creative way. Explanation of these are as follows :-
 Planning – It is related to looking ahead, as per Fayol is is necessary for organisation to
draw good plans of action which is hardest part of all five management function. This
need active participation of overall organisation. For instance, When Toyota is coming
with some new range of car within market area before this there is requirement of proper
planning.
 Organizing – Business firm will perform it function in appropriate manner only when
things are organised in better manner. Organizing is simply related to sufficient capital,
staff as well as raw material so that company will perform their activities within easy
manner. Thus, Toyota have to ensure that their will be apropriate capital in company
before bringing new project. Along with this, they have to hire sufficient staff members
for performing day to day activity.
 Commanding – In organisation, command related to work as well as instruction will be
given to staff member. So that, they will know what exactly required from them. Thus,
manager and leaders of Toyota have to give proper instructions to their staff members so
they will know what company want from them. In that manner they will perform their
activities.
 Coordinating – At the time when activities are harmonized then company will perform its
work in better manner. Within coordination it is important for staff members to have
positive behaviour. So they can coordinate with each other and perform activities within
effective manner and result in accomplishing goals and objectives.
 Controlling – It is related to verifying that everything is going according to plan. So that,
Toyota will known exactly whether activities carried out within inconformity of plan. For
example, manager and leader of Toyota have to ensure that overall working of
organisation as per the planning.
P3 Different theories and model of approach
There are several models and theories that can be utilised by organisation in order to
conduct their daily operations within effective manner. Along with this, such theories will assist
in resolving or coming out with the issues mention above. Explanation of some major theories
that can be implement by Toyota are mention below :-

 Situational leadership – This theory of leadership based on the assumptions that most
effectual style of leadership get vary from situation to situation (Situational Leadership.
2019). Although, for being effective and successful leaders have to adapt their style and
approach to diverse circumstances. It is the most flexible leadership style because get
modified according to the situation by adopting working needs of environment as well as
organisation (Wang, Jie and Abareshi, 2015). Although, Leaders of Toyota have to
modify their leadership style according to the changes take place within business
environment as well as customers needs and wants. Because business environment is
flexible in nature so there is no specific skills of leader which work all the time, as
leaders have to change style of management which suit requirement of respective
association. Systems leadership – This leadership theory is related to the strategy adopted by the
company for developing and maintaining proper working environment. So that, staff
members will feel motivated as well as encourage while conducting work within effectual
manner (Plesser and et. al., 2014). In relation of Toyota, manager and leader of respective
company have to adopt systematic leadership in their working so they can encourage and
motivate their staff members for working in the fast changing situation. As well as feel
employees that they are part of company and not to fight with each other on any issue.
Advantages of implementing systematic leadership theory is that employees get
motivated in effective manner which result in accomplishing goals and objectives within
required time duration. On the other hand, it have some disadvantages also that
implementation of this theory not help in conducting differentiation within different
situation of working.
 Contingency leadership – This theory of leadership states that effectiveness of leaders is
contingent on how leadership style will match with situation. Thus, leader have to find
out what kind of situation is that and then implement theory according to it. With the
assistance of it leader and manager will able to accomplish goals and objectives in
effective manner (Tristancho and Gutiérrez, 2012). In relation of Toyota, manager and
leader have to adopt contingency leadership theory because conflict is the situation which
arise frequently and required to be manage in proper manner. Along with this, business
environment is complex and flexible in nature which result in arising several situations,

so in this there is requirement of contingency theory to deal with the situations in
effective manner.
TASK 3
P4 Explain key approaches to Operations management and role that leaders and managers play
For conducting work within organisation in effective manner there are several approaches
which can be adopted by leaders and managers. There are several theories, models and
approaches that can be use manager of Toyota explanation of these are as follows :-
Six Sigma - It is statistical tool as well as technique which focus on eliminating defects
and reduce process variability. Six sigma is the procedure which involve improvement,
measurement and validation activities. But in present years respective tool has evolved more
general philosophy of business management, improving customers retention, meeting customers
requirement, improving sustainability of products offering by company and so on (Wang, Jie
and Abareshi, 2015). Six sigma is applicable for every type of industry including Toyota also
and company conduct each six stages of respective model such as define, measure, analyse,
improve and control. General while conduct these steps manager and leader conduct analysis so
that issues can be identified and its impact also on Toyota working. So that, strategy will be
developed to overcome with the issues and problems through which company will go through.
Lean principles – It is also an effective process used by business organization with the
aim of analysing customers needs and wants towards the company products and services. By
this, company can easily develop appropriate strategies and plans in order to improve their
overall performance. In context of Toyota, this type of approach support in reducing the wastage
within the production activities of the company. For attaining success, there are five stage of lean
principle like specifying values, male the value stream flow establishment, implement as well as
perfection of the work that help Toyota in analysing as well as evaluating customers needs and
wants. With the assistance of all these stages manager and leader of the company easily provide
quality services to its target customers as per their needs and wants. After this activities, manager
is responsible for developing plans and procedures to satisfy the customers requirement
(Williams, 2015). This will directly contribute in making brand image of company more
competitive and successful as well.

Total quality management – This type of approach is related with improving the
product quality so that customers can easily satisfy their needs. Mainly, it is a process which
used by business organization to make their product quality more effective in order to invite
large number of customers. With the assistance of this method, firm can easily attain their set
goals and objectives and at the same time also create their competitive brand image at ,market
place. In context of Toyota, total quality management approach play a vital role in maintaining
product quality to invite number of customers towards its offerings. In this management and
leader carry out various strategies and activities of evaluate the actual needs of the consumers
towards company services. Through which train their workers accordingly so that they can easily
understand customers needs and provide them services accordingly. Along with this, workers are
also ask feedback and any kind of suggestion from the target customers with the aim of
improving their services. It may contribute in satisfying customers requirement and improve
performance level of company.
P5 Importance and value of operation management in achieving business objectives
Operation management is the process in which company decide to adopt practices that
will result in effective management of day to day operations and also in accomplishing goals of
company. Along with this, there are several approaches which will utilise by Toyota in order to
enhance their effectiveness of several functions. Management and leadership approaches that
company will utilise are behavioural and situational (XIANG, Chen and Zhang, 2013).
Explanation of these theories along with its importance in accomplishing business objectives are
as follows :-
 Behavioural approach – It is related to the approach based on the behaviour as well as
ability of staff members in term of accomplishing goals and objectives. Manager of
Toyota develop strategies and assign work to every employee after analysing their ability
and skills of doing work. With the assistance of such practices task assigned to personnel
will be conducted by them in effective manner. In addition of this, it also help in
accomplishing set goals and objectives in stipulate time frame. In context of Toyota,
manager and leader develop as well as make effective strategies, rules and regulation as
per workers performance and behaviour as well. This will directly contribute in

establishing positive and safe working environment in which workers easily perform
their task and activities to attain set targets.
 Situational approach: This type of approach is also an play a significant role in
business organization in which manager and leader formulate effective strategies and
plan as per the situation that occur at workplace (Wen-chao, Fan and Wen-wen, 2012).
In Toyota context, manager and leader analysis organizational situation and develop
strategies accordingly. With the assistance of this they can reduce the chances of
negative impact of the situation at workplace and workers also.
Importance and value of Operation Management:
In business organization operation management consider as one of the important concept
through which workers can effectively perform their task and at the same time also attain their
task in allotted time frame. In addition of this, it also contribute in minimizing the wastage and
maximizing the profitability level of the company at market place. As there are some importance
of operation management faced by Toyota within their business activities are as follows:
 Operation management help Toyota in enhancing their overall sales by reducing wastage
and uncertainty within the production activities of the company. This will increase
profitability level of the company at market place.
 Another importance of operation management for Toyota is that it help organisation by
providing better services to their target customers with the aim of attaining their higher
satisfaction towards its products. It may aid in increasing customers base of the company
at market place.
 Operation management improve the productivity level of the company by managing
entire process of operational activities. It also support in optimum utilization of available
resources to enormous profit of the company at market place. This is possible by
handling various issues such as design, operations activities, maintaining entire system
that used for production of goods and services. This will improve the brand image of the
organization and create strong customers base.

TASK 4
P6 Factors within business environment which impact upon operational management and
decision making by leaders and manager
Decision making is the procedure which is conducted by the top level authority including
middle level also to design framework of task as well as activities which will be conducted by
staff members. Decision taken by the manager and leader of an organisation get affected by
several external or internal factors which affect directly or indirectly. Below mention are some
major factors which affect decision making process of Toyota auto-mobile company are mention
below:- Corporate social responsibility -It is related to the activities that are conducted by
company for serving society with the motive of their benefits in both monetary and non-
monetary form. Conducting of corporate and social responsibility result in attracting
targeted customers as well as enhancing goodwill within market area. Toyota is doing
several activities in relation of corporate social responsibility such as donating money,
education and health care services sponsorship, education facilities and so on. Although,
CSR activities help respective organisation in developing their goods and image within
effective manner and result in accomplishing goals and objectives. Culture – This term is related to beliefs and values that will be adopted by company for
establishing framework of communication including employees and other management
people. It company have proper corporative culture in their working then it will result in
doing work within effective manner by building proper corporate culture in company. In
relation of Toyota proper culture will be framed by employees, employers, customers as
well as clients within polite and effectual manner. Because it will assist in interaction
within appropriate manner by identifying or understanding each other requirement.
Positive culture within organisation result in long term employees retention as well as
manager of Toyota have to update culture of their organisation so that modification can
be implemented in easy manner.
 Ethics – It is related to the way company have to respond external environment refers to
the organisational ethics. Although, organisational ethics involve several guidelines and
principles that decide the manner in which particular person have to behave within
workplace (Yun and et. al., 2018). Example of business ethics, every firm is running

with the motive of generating profit but the way money is generating play important
role. Thus, if money is generated by fair practices result in ethical practices conducted
by company. Such practices conducted by Toyota build their positive image as well as
goodwill within business environment. In relation of this duty of manager and leader is
to take decision by keeping in mind all the ethical practices.
 Social Factors – It is external factor which directly gives impact on decision making of
company. Social factor get modified or updated on regular basis and in this situation
manager as well leader have to modify their strategy in respective manner. Changes in
social factor take place when customers need and wants get modification. Thus, in
relation of this there is requirement of conducting survey for identifying current needs.
So that, Toyota can fulfil their need and wants.
 Economic Factors – This factor is related to the tax rate, income and so on that affect
working of an organisation. In relation of Toyota, they are operating in manufacturing
industry thus changes within economical factors gives direct impact on the working of
respective company. For their manufacturing process, Toyota have to import some parts
if duty will get increase then result in negative impact on working of business.
All these factors give impact on the decision making and working process of Toyota
auto-mobile company. Because modification in these internal and external factors require to
conduct market analysis so that proper strategies will be develop which result in effectual
working of business firm. Such practices will result in accomplishing goals and objectives within
appropriate manner.
CONCLUSION
After going through the above discussion it has been concluded that, operation
management play important role within organisation for accomplishing goals and objectives
within effective manner. Within the process of operation management manager as well as leaders
both play important role. There are several strategies designed by leaders and manager as per the
situation for performing day to day operations in effective manner. In addition to this, there are
several theories, methods and models will be use by them for performing operations in effective
manner. Like just in time method, total quality method, leadership trait and so on because these
will help Toyota in accomplishing their goals and objectives.

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