Operations Management in Toyota Motor

Management and
Operations

INTRODUCTION
Management and operations is the business strategy or practices which will be performed by
the organization in order to increase the efficiency. It further helps in increasing productive or
profitable. These practices majorly focus on the conversion of raw material into finished goods
which is used by the customers and which generate more profit for the business (Boyd and
Dougherty, 2016). With the help of various strategies, manager of the organization able to
control or redesign the operational functions. Leaders & managers help the organization to
become more productive or profitable business in the market. Toyota Motor Corporation selected
for the better understanding of this concepts. It is Japanese multinational automotive
manufacturing company which established in 1937 and founded by Kiichiro Toyota.
It covers the various topics such as different roles or characteristic of leader & manager
and role of a leader and functions of manager applied in a various situations. In addition, it
includes the different theories & approaches in the organisation and key approaches of
operational management. Along with this, it includes importance & value of operations
management which helps in achieving business objectives and business environment factors
which affect the operation management and decision making process.
TASK 1
P1 Evaluate the different roles & characteristics of managers and leaders
Leaders: It is a person, who helps the organization to maintain to their human forces so
they can perform well and achieve business goals & objectives. Leader is the person who applied
various leadership skills to maximise their employee’s efficiency or effectiveness. It will
improve the individual’s performance which increases the productivity or profitability. Leader of
the Toyota Company encourage their employees to enhance their performances.
Managers: It is the person, who is expert in their field and manage all the operational or
functional activities in order to achieve their organizational goals & objectives. Manager is the
person who is responsible for the operational activity. In the Toyota, manager pass the
instruction or guidelines to the employees that how to perform their task in order to achieve
business goals & objectives.
Role of Leaders:
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 Leaders have to motivate their employees who increase their efficiency as well as
effectiveness of tasks.
 Leaders should require providing various training & development programs to enhance
their performance.
Characteristics of Leaders:
 Leaders should have attractive personality which attracts the followers.
 Leaders have to be honest and integrated because it directly affect the employees and
their behaviour.
Role of Managers:
 Manager have to circulate valuable information to the lower level so they can perform
well their task and able to achieve their organisational goals & objectives.
 Manager required managing and controlling the internal functions & day to day activities.
Characteristics of Managers:
 Manager required effective communication skills, so they can deal with organizational
problems. Manager have to be emotionally strong because it affects the decision which taken by
them according to the situation.
Differences between the role & characteristics of Managers and Leader in the organization
Basis Managers Leaders
Characteristics In the Toyota, manager is
responsible to take any
decision,
Leadership helps the leaders to
provide the motivation which
build employees confidence as
well as efficiency.
Role & Responsibility Managers handle the day to
day activities in order to
increase efficiency or
effectiveness.
Leaders provide training &
development program to
enhance their performances.
Authority and power Managers have authority to
divide the task, manager or
control the operational
In the Toyota organization,
leaders make sure that
employees have efficiency to
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activities and take important
decision in the Toyota.
meet the requirement and
achieve the goals.
TASK 2
P2 Evaluate the various functions and role of a leader as well as manager in different situational
contexts
Conflict Resolution: In the organization, employees are from different culture which
creates various problems. So it is managers & leaders responsibility to resolve all the issues. In
the Toyota, managers follow the autocratic style of leadership which helps the organization to
make effective team to complete their task. Managers provide the instructions and clear
guidelines which helps in achieving common goals. Effective or regular communication between
the employer & employees helps in solving conflicts.
Role of a leader: Leaders in the Toyota organization, build healthy working environment
which helps the employee to satisfy with their work. On the other hand, manager of the Toyota
Company build effective plan to achieve operational success. So basically, managers & leaders
both are help the organization to achieve their business goals & objectives.
Functions of manager: Manager plays vary important role in the organization which help
the business to enhance their employees performance. It further helps the business to achieve
their organizational to increase their productivity & profitability. There are various functions of
manager and it will be discussed below:
 Planning: Manager of the Toyota already develop various plans for conflicts among the
employees. For example, employees not able to complete task then manager give them
warning. If they not enhance their performance after these warnings then manager take
actions such as punishment, demotions or fire them. Because, Toyota not going to bear
the loss so manager have to plan for this.
 Organizing: Manager organize the workplace in order to maintain effective performance
of each employee. Manager will be the responsible person who handles the entire
situation and listening both parties concern and take decision. This process helps the
Toyota to resolve their conflicts among the employees which affect the operations.
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 Controlling: Manager handles all the internal activities and operational functions which
further help the Toyota to enhance their employee’s performance and make them capable
to achieve their business goals & objectives. Manager provides guidance to ensure that
employee work in proper directions.
 Coordination: Manager coordinates all the situations with leader and then analyse. After
this both will take essential decision for the organization which helps in increasing
productivity or profitability.
Multi tasking: It is important for Toyota to execute their projects in effective way where
they have to implement their strategies in appropriate manner (Eraki, 2015). Need to use
resources in the direction where business functionalities provide high efficiency or effectiveness.
Manager or leader ensure that each task fulfil the basic requirements. Manager should be
ensuring that employee’s roles and responsibilities are assigned on the basis of their skills &
capabilities.
Functions of managers: Management needs to ensure that employees carry out their
operations and functional desire in a specific time frame. For example: Toyota gets the huge
order to manufacture car but their employees are already engaged within other project. So in this
case, both projects are important which cannot be left out. Managers perform various functions
in order to complete both project and it will be discussed below:
 Planning: According to the situation, manager has to ensure and build effective strategy
that both projects carried out simultaneously. They have to divide work and work force as
per the requirement and urgency of project. For this, manager required proper planning
which helps in completing both projects on time. In this case, manager or leaders required
to work together to achieve this target effectively.
 Organizing: Manager of Toyota, need to provide friendly environment to their
employees who helps them to feel comfortable and give their efforts to achieve both
projects. In this case, manager provides some monetary or non-monetary benefits to
encourage them to push their efforts. It further helps in motivating employees or increase
their productivity or profitability.
 Coordinating: It is important for the Toyota to coordinate their employees in order to
perform effectively and achieve high efficiency in their work. Manager and leaders both
are responsible for coordinating every employee regarding their work. They have to
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communicate with all regarding project goals & objectives which required achieving.
They also have to ensure that, any kind of disputes not occur among the employee so they
have to provide separate guidelines for both projects. It will clear the all confusion and
implemented with the help of effective communication.
 Controlling: Manager of the Tesco is responsible for controlling each and every action
which further helps the organization to increase their productivity or profitability.
Success of this project will totally depend on the manager which further helps in
achieving both projects.
Above mention functions of managers play improvement role in the organization that will
help in providing market growth. Manager as well as leader both have to perform their task in
order to achieve operational success.
P3 Evaluate the different theories such as situational, system and contingency leadership
Leadership theories help the organization to increase their efficiency or effectiveness
which increases the productivity as well as profitability. Some of the leadership styles can be
followed by the Toyota which motivation employees. There are various approaches which is
discussed below:
Situational leadership: In this leadership style, leaders or manager have to perform
various activities as per the situations. It is used by the manager or leader of the Toyota which is
required for the working style. It is important theory which helps the manager to perform well as
per the situations (Fan, Liu and Zhang, 2015). For example: Toyota manager take their decision
as per the requirement. For extra project they need to hire new employees for the new projects.
Contingency leadership: It is an organizational theory which claims that, it is the best
theory for the organization which followed by the manager. In this context, manager of Toyota
focuses on the different situation where leader react as per the situation. With the help of this
theory, it helps in motivating employees to perform their task in order to achieve business goals
& objectives.
System leadership: It is the systematic approach which can be followed by the manager of
Toyota to build an effective environment for the employees. This approach used by the leader
when they develop new procedures and policies in the organization to increase their efficiency of
effectiveness. This theory generally used for the production process of Toyota where the
implement for the achievement of business goals & objectives.
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Leaders and managers have various responsibilities which required to perform by then to
fulfilling the current requirements for the achievement of their business goals & objectives.
Managers or leaders ensure that, every function must be accomplished in order to enhance
employees performance. Along with this, it includes the different approaches of management and
leadership which can be used by Toyota to attain objectives & goals within specific time period.
Manager of Toyota adopt situational leadership theory for the implementation of management
strategies which based on the various situations.
TASK 3
P4. Explain the key approaches of operations management
Operation management is the process which includes the movements of products &
services from one place to another. With the help of this management practices, manager will
save the time as well as reduce the wastage. It includes the procedure of converting raw material
to finished goods for the use of end users. Main purpose of this management practices is to
reduce the wastage of resources in order increase the production level or profit margin of the
company. Optimum utilization of resources helps the manager to decrease there per unit costs
and increase the profit margin. Operational management help the Toyota to improve their
efficiency as well as effectiveness. It helps in managing proper balance between the cost as well
as revenue generate by organisation. Basically there are two types of operational functions which
are carried out within Toyota and it is mentioned below:
Production: It includes the process where raw material converted into finished goods and
ready for the transportation of products. It is the major function done by the manufacturing
company.
Transportation: After production, transportation is the important functions because
delivery of products done on time. Management ensure that, product will be delivered to the
customers on time.
Key approaches:
There are various approaches followed by the Toyota Company to enhance their
operational activity. It will further help in achieving business goals & objectives through
increasing productivity or profitability. Some of the approached discussed below:
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Six sigma: It is statistical approach which required by the organization to identify the
errors and defaults in the production process. It helps the managers as well as leader of the
Toyota Company to enhance their employee’s performance which increases the productivity or
profitability. Along with this, six sigma approaches helps in achieving business goals &
objectives. This approach used by the Toyota Company to measure their employee’s
performance as well as identify the internal defaults & errors. Six sigma helps in evaluating
current performance of individuals within Toyota so they can compare with desired standards of
quality. Leaders played essential role to inspire or motivate their employees at every level of the
departments. In the organization every stage of employee required training and motivation so
they can perform effectively or efficiently.
Just in time: This approach used to manage stock in the organization which can create
the issues such as shortage of wastage of material in the production. With the help of this
approach, manager of Toyota can reduce the wastage of raw material in the manufacturing
process which increase the cost and that will be automatically increase the price of product. So it
is important for the organization to analyse the demand and then maintain their stock level as per
the requirement which helps manager to reduce waste and increase the productivity or profit
margin (Han and et. al., 2017). It is used by the managers & leaders of Toyota for the inventory
management which increase the efficiency or effectiveness. Just in time approach focuses on
reducing cost related to the inventory management while reducing dead stock. Managers &
leaders plays important role through providing accurate guidelines to employees in respect of the
requirement of inventory in the organization which reduce the waste and deliver the service on
time.
Total Quality Management (TQM): It is used for the improvement of product quality
maintain it for the longer time period. Toyota makes sure that customers become brand loyal for
the company or for the products. Organization has to improve their quality because with the help
of this, they can increase their product demand among the customers and make them loyal for the
longer period. Along with this, Total Quality of Management enhances organisational culture
through promoting operational excellence. Here, manager or leaders plays very essential role
because they provide required training & development for the enhancement of skills. So they get
aware about basic techniques which required increasing their product quality.
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P5. Evaluate the importance as well as value of the operations management for achieving
business objectives
Operation management help the organization increase their productivity as well as
profitability. It is associated with the manufacturing process within organisation where they
convert raw material into finished goods. This process is the merger of different management
operations activities such as planning, monitoring, controlling etc. In the Toyota, main objective
of the manager is to ensure that provide high quality products & services.
Importance of Operational management:
In context of Toyota, importance and value of operation management is discussed below:
Managing business activities: Operation management help the organization to manage
various business activities which increase the efficiency as well as effectiveness of work. It helps
the business to align with customers requirement and it is the heart of the organization who
control lots of functions.
Optimum utilization of resources: With the help of operation management,
organization can optimum utilize their resources which help in generating more revenue through
less wastage of material.
Reduction of cost: With the help of operation management, Toyota reduces their product
cost because it helps in reducing non valuable activities. It is an effective tool which helps the
manager to identify the cost which is not worth for the organization and try to reduce it.
Managers find improvising or different way to enhance quality of services and goods. Leaders
provide various training to build their confidence and motivate to achieve their goals &
objectives.
Enhancing overall productivity: With the help of operation management, manager
improves their overall quality which increases the productivity and it automatically increases the
profit margin too. Leaders & managers of Toyota concentrate on the operations to reduce the
cost as well as improve the product quality. Main objective of manager is to utilise these
activities in effective manner which increase productivity or profitability. Leaders of the
organization provide comfortable work environment where employees can share their views
which helps in increasing employee’s productivity.
Value of Operational Management:
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Different approach of operational management will help the manager of Toyota to enhance
their manufacturing process. With the help of six sigma approach, business identifies the errors
& defaults and total quality of management helps in providing quality products to the customers.
With the help of these approaches, it will increase the value of organization among the
customers. Use of operational management will reduce the cost which increases the productivity
or demand among the customers. It further helps the manager to take effective decision in order
to enhance quality of product which make customer loyal and build organizational value. It will
increase the efficiency and effectively which further helps in achieving business goals &
objectives.
TASK 4
P6. Evaluate the factors within business environment that influence organization and decision-
making process
There are various factors which influence the organization and their decision making
process of manager in the Toyota. Internal and external factors are discussed below:
Internal factors: It includes those factors which occur within organization such as Toyota taken
as a reference and it is mentioned below:
 Owners: Shareholders of the company invest for the profit purpose and if they not
getting profit then further they do not invests in the company which affect the business.
Managers build various strategies, regulations and rules for the business which can
complete their goals and objectives of Toyota. If manager’s decision helps in generating
profit then it is beneficial for the Toyota Company (Ma and Sun, 2012).
 Employees: They are the important assets for the organization because they help the
Toyota managers to accomplish their business goals & objectives. It will further help in
increasing productivity or profit margin. In the Toyota, manager is the responsible person
who recruit skilled workforce for the organization to complete their task. It is important
to hire skilled employees who have potential to achieve business goals & objectives.
Corporate culture: Management of the Toyota provide various opportunities to their
employee to enhance their skills and competencies. With the help of this, it builds effective
culture in the workplace which helps the employees to improve their performance. It further
helps in maximising productivity as well as profitability.
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Corporate Values & Ethics: It includes the various rules, regulation, policies or principles
which formulated by the management and it helps in performing organizational activities. It
includes the organizational vision, mission and code of best practices for the Toyota.
Corporate Social Responsibility: It is corporate responsibility to contribute in the society
for the sustainable development. It helps the organization to develop customer’s loyalty with the
help of various activities which help the society to grow forward for the sustainable
development.
External Factors:
 Political: It includes the various government polices such as bureaucracy, corruption,
foreign trade policy, tax structure, trade barriers which formulated by Toyota with respect
of different political factors. Political stability is the biggest opportunity for the
organization and UK has stable government. Change in the policies will affect the
organization and their production too. For example: tax policies of one country may
allow other country’s organization to expand their business in different regions but other
policies can affect business at the time of expanding operations within other industries.
 Economical: This factor includes the tax rates, inflation, unemployment, export or import
duty, interest rates, etc. Organization analysed that prices of vehicles as per the their
demands and then fix export duty. Globalisation can be taken into accounts if any large
organization entered in the UK market. So it will affect the operations of the Toyota.
 Social: It includes the individual behaviour at the time of purchasing products which
influenced by the customer's taste, preference or different culture of country. Toyota
majorly focuses on the customer’s taste, preferences and habit of buying. Toyota ensures
that, they do not produce harmful products which affect the society (Boyd and
Dougherty, 2016).
 Technological: Due to rapid growth in technology, organization has to adopt changes as
per the time which makes them capable to survive in the market for the longer period.
Manager & leaders of the Toyota ensure that they must adopt these technical changes
which help in following current trends and provide development.
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CONCLUSION
Above mention report, it has been interpreted that management & operations plays very
important role in the organization. Manager and leaders also plays effective role which help the
organization to improve their employee’s performance as well as efficiency or effectiveness.
Along with this, it includes the various theories which help the manager to achieve their
organizational task. Operational management helps the organization to increase their efficiency
or effectiveness. In addition, key approaches of operational management help the business to
eliminate wastage and improve the product quality. Operation management helps in reducing
overall cost and increase the productivity which helps in achieving their goals. It further helps in
taking effective decision which taken by the manager for the effective strategy.
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