Analysis of Operation Management and Leadership

The provided document is an assignment that delves into the topics of operation management and leadership. It includes references to various patents and research papers related to these subjects, as well as a discussion on the differences between management and leadership. The assignment appears to be from a university or college course, likely in the fields of business, operations management, or organizational studies.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
1.Introduction to the organisation and its management structure...............................................3
2.Definition and roles of both managers and leaders and difference between management and
leadership....................................................................................................................................4
3. Roles of management and leadership in application to different organisational situations,...6
4.Strengths and weaknesses of different approaches to leadership and management ...............6
5.Conclusions on how managers and leaders have made an impact on the organisation and
recommendations........................................................................................................................7
Task 2...............................................................................................................................................8
1. key operations of the chosen organisation..............................................................................8
2.Defining key operational functions along with identification of roles and responsibilities of
managers in them........................................................................................................................8
3.key operational approaches to operations management and their value. ................................9
4. Impact of external business environment factors on decision of manager and leaders........10
5.How operational efficiencies can be improved to successfully meet business objectives.....11
6.Conclusions and recommendations. .....................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation management is the area of administration which is concerned with the
production processes. It comprises with designing and controlling the entire process and creating
new design for organisation's operations that focusses on producing goods and services as well.
Organisation undertaken under this report is Toyota Motor Corporation which is an multinational
automotive situated in Japan. This report will differentiate between the role of leaders and
function of manager by applying a range of theories. It will also highlight how managers and
leaders will improve their efficiency which is done in order to achieve overall business objective.
The later part of the report deals with various environmental factors that have impacted the
organisation's performance (Åström and et. al., 2017).
TASK1
1.Introduction to the organisation and its management structure
Under this report the business undertaken is Toyota Motor Corporation which is an
multinational automotive and it is situated in Japan. It employees around 364,445 number of
employees across globe. They deal in different automotive segments such as assembling and
selling cars, trucks and other vehicle parts and accessories. Apart from this, the financial services
segment involves offering facilities such as lease financing to dealers and customers.
Management structure of an business represents how organisation manges it's management
hierarchy. It involves arranging line of authority and different distribution of different rights and
duties. The Toyota management structure is developed on its business operations which are
being carried by them in different parts of the globe. The business follows the hierarchical
structure which assist them in accomplishing their objectives. The business structure of Toyota
can be studied below-

(Toyota Company Hierarchy 2018).
 Global hierarchy- As the business headquarter is situated in Japan. They are responsible
for making final decisions on different matters and on major issues as well. Japan office
can have a final verdict in case if the individual units are not communicating in an
effective manner with each other. In the present business scenario which is highly
dynamic in nature, Toyota's structure has emphasised on maximising the power of
decision making of regional and business unit heads (Chan and et. al., 2018).
 Geographic division- The business have eight divisions across the globe situated in
Latin America, Caribbean, Asia, Oceania, China, Europe, Middle east, Japan, North
America and East Asia. All of the divisions or regional heads are required to report to
headquarter of the company which helps the business to create products and services
efficiently and effective in business operations.
 Product- Based Division- The business have four different division such as Lexus
international, Toyota No.1 which operates in North America, Europe and Japan, Toyota
no. 2 it operates in all the other regions and unit centre. The Unit centre handles operation
related with transmission engine and other related processes.
2.Definition and roles of both managers and leaders and difference between management and
leadership.
Leader: They are the individuals who impacts group of people for attaining organisational
goals. They are one who have superior or dominant position within specific field and they have
the power to influence decisions of others.
Illustration 1: Toyota Company Hierarchy 2018.

1. Manager: They are individuals who are responsible for certain tasks and subsets
within an organisation. They are the person to whom employees needs to answer.
Both managers and leaders plays an crucial role in the overall functioning of the business.
Managers are in charge of carrying different activities in the organisation. Managers focus on
controlling and administrating a group of members. On the other hand leaders are responsible for
leading and commanding a group of individuals in the business towards achieving the already set
goal and objective of organisation. Both are responsible for handling certain roles in the
business which can be discussed below-
Role of manager
Entrepreneurial role: In this type of role, manager is responsible to create and control
changes within the businesses. They tent to solve problems of the employees and foster
innovative ideas that are focussed on fulfilment of overall organisational goals.
Figurehead role: It includes conducting different ceremonies in the business such as
conducting welcoming session of the guest and signing legal documents. As the managers are
representing the entire company in front of the outsiders and also in front of official guest they
are responsible to create a strong image of the business in front of them.
Role of leader : Role of leaders can be discussed below-
Setting a link between organisational and individual goals- In order to integrate the
goals of employee and organisation leader will use their traits. They will try to coordinate the
efforts of employees and organisation in same direction.
Creating vision- It comprises of defining the goals and also defining the path by which
they are going to achieve the already defined goals and objectives.
Difference between leader and manager-
BASIS LEADER MANAGER
Meaning. They are individuals who
create strong impact on their
followers.
It involves setting and
coordinating different activities
in an efficient and effective
manner.
Emphasis. Leaders focus on inspiring They tent to focus on

individuals. managing different activities of
individuals.
Perspective. Leadership requires good
foresight.
Management comparatively
have short range of perspective

3. Roles of management and leadership in application to different organisational situations,
The present business environment is highly dynamic which needs regular alternations and
modification. In order to deals with such situation leaders and manager have to perform certain
roles that can be expressed below-
Rapid changes: In the economy where the environment is highly dynamic and the
government stability is also not there, then the business will require to make fast and rapid
change in the organisation in order to effectively attain it's goals and objectives. In theses
contingent situations, the leader will be following autocratic leadership style which involves
leaders taking the decisions on their own without taking suggestions or advices from the sub
ordinates. As the changes in the environment is taking place rapidly it leaves the business with a
very little time to react and requires quick decision. In such contingent situations, manager will
be taking responsibility of altering and modifying the policies and plans of the organisation so
that they can handle the situations effectively and adopt the changes in the business. For
instance, if there is modification in trade policies than it is the duty of mangers to identify theses
and to provide adequate training to the workforce so that they can tackle these changes and the
leaders will be motivating individual the staff members to work in according with them (Reim,
Parida and Sjödin, 2016).
Slow changes: When the environment and government of the country is stable then the
Toyota will adopt changes after analysing the business environment. In this environment the
leader will adopt democratic leadership styles which takes the view of co-worker into
consideration while taking decision. When the economy is in stable situation managers will use
democratic leadership style which will help to take the suggestion of their employees into
consideration. It will help them to gain innovative ideas and they will assists them to take better
decisions in the business. If the economy is table the business will be able to analyse the market
thoroughly and will be able to produce new product in order to gain more attention of customers.
At the same time, manager will also do thorough research regarding the needs and requirements
of the customer and then develop the new plans and program by taking them in to consideration.
Further more, the manager will closely work to analyse that the established mission and vision is
clearly clarified to the employees and they are working in accordance with it.
There are various problems that can be face through respectrive firm while opearting its business
at market area. That are mentioned below:

Conflict management: This is the general issues that can be faced through whole kinds of firm.
This type of situation arises within respective company due to different conception and ideas.
There may be another reasons which leads disputes into organisation which impact attainment of
objective. Herein, leaders need to adapt situational leadership theory for resolving problems. It
concentrates upon root cause of the problems and provide effective solution by analysing the
situations properly.
Lack of resources: TOYOTA manager should examine the requirements an demands of
marketplace and consequently manufacturing should be performed. Without needs, in more
products are produced then firm have to face resource issues. Hence, for overcoming with such
circumstances, they required to used contingency theory so that they can understand the
upcoming assumption for effective results.
4.Strengths and weaknesses of different approaches to leadership and management
In order to facilitates smooth functioning the business uses different approaches to
leadership and management that can be elaborated below-
Classic Approach of management- This approach focusses on managing in classical
methods of management. It is the oldest from of school and it originated in 90's. It comprises of
increasing the effectiveness of both business and employees which is based on management
practices. Under this the importance is given to economical and physical needs of employees and
it has not given importance to social and need for job satisfaction. It involves administrative,
bureaucratic and scientific management. The strength and weakness of the approach can be
explained in the below points-
STRENGTH WEAKNESSES
 It is an Hierarchical structure which
divides that structure in three different
management level.
 By dividing the task it facilitates ease.
Which will enhance the efficiency of
Toyota organisation.
 It involves motivating employees
through monetary incentives.
 The structure of the theory is tough and
rigid.
 In order to achieve higher level of
productivity and efficiency. It involves
creativity expenses and as the business
is providing due importance to social
needs they will not be able to influence
people on larger extent.

Therefore, by evaluating the classical management approach it has been summarised that
in present business scenario, the concept will not work effectively in the organisation because it
focuses only on financial needs of the employees. But employees also have emotions and
sentiments, they also want social respect and values which are not undertaken by this approach
and organisational goals cannot be accomplished effectively and efficiently in this.
Contingency leadership approach- These approach believes that the effectiveness of
leadership can be increased by applying leaders behaviour into different situations which
emphasis on changing the management style as per the needs of different situation. Different
strength and weakness of the approach can be elaborated below (Bott and Luna, Seven Networks
Inc, 2017).-
STRENGTH WEAKNESSES
 This will help the manager of Toyota to
actively handle different situation by
adopting different styles.
 It will enhance the flexibility level
which will help to improve the
efficiency of business.
 It is difficult to act as per different
situation.
 This approach is reactive not proactive.
It is difficult as the situation tent to
differ from time to time.
Therefore, Contingency leadership approach is very effective and suitable for the
company because it enhances flexibility and leader prepares the employees in advance only so
that they do not resist to accept changes. This type of leadership style is also advantageous for
the company because business environment is very dynamic and leaders have the efficiency to
cope up with the changing atmosphere.
Situational leadership theory
This style of leadership suggest that leadership style all depends on present situation and
which type of leadership and strategies to use rely on task. Situational theory of leadership
works on assumption that most effective style of leadership changes from situation to situation.

This theory concentrate upon impact of situation that arises in company. Through this style,
respective firm leaders can mange the situation that raise in enterprise for good performance.
Strengths Weaknesses
This is easy to learn and intuitively sensible This has only few related research studies
conducted to justify assumption.
It is frequently used for training in organization It is difficult in matching leadership style with
work competency
It provide flexibility to leaders It fails to evaluate demographic characteristics
influencing the leader.
Systematic leadership
Systematic approach of leadership consider manager first and foremost as a part of
complex system. It begins with clear aim that organisation as a system to enable appropriate
leadership.
Strengths Weaknesses
This leadership style deals with complexity It does not specify tools and techniques for
practising.
It takes holistic view It is quite difficult to apply in practical
problems.
It properly utilises feedback. This may not be applicable for smaller
organisation
From the above theories situational leadership style is better for the respective company
as this is helpful to deal with various situation and identify effectual solution.
Situational leadership has been adopted by Toyota Motor Corporation, the reason behind
this is that style of leadership varies with respect to situation prevailing within organisation. This
denotes that the working structure is adaptable to current working conditions. An example can
be taken to understand this concept like, a conflict has occurred within Toyota Motor

Corporation then depending upon the intensity of conflict management and leader will take a
decision.
5.Conclusions on how managers and leaders have made an impact on the organisation and
recommendations.
Manager and leader play an key role in the Toyota Corporation. They are responsible for
playing different roles in the organisation such as manager plays the role as figurehead and
entrepreneurial. On the other hand the leaders are responsible for integrating the goals of
individuals and organisation in a way that the goals and objective of the organisation can be
achieved. Business used different approaches in order to attract and motivate individuals in the
organisation and manager and leaders assist the business in their effective implementation in the
organisation. In order to increase the efficiency in the work, operations managers are required to
focus on increasing the communication system. So that the information flow can be maintained
without any error. They also need to focus on increasing the employee engagement so that their
suggestion and ideas can be taken in consideration which will help the business to take better
decision in future (Khan, and Brissenden, Altera Corp, 2017)
Task 2
1. key operations of the chosen organisation.
Toyota is automotive organisation which is operating in different parts of the globe. It
offers their product and services to customer all across the globe. The key operations of the
business involves activities such as supply chain management, process and capacity, Quality
management, job design, inventory management and designing good and services. Managers are
responsible to take different action in order to ensure all theses operations facilitates in the
organisation in an efficient and effective manner.
2.Defining key operational functions along with identification of roles and responsibilities of
managers in them.
The Toyota corporation have different operation's that take place in the business on daily
basis and managers are obligated to perform their role in the same. Different operational
functions of the business can be expressed below-
 Designing of goods and services : As Toyota allows the use of technology while
developing different product and services. Managers are responsible to identify the

market trend in technology that are being used by their competitors which can enable
them in their business processes in order to produce goods and services which comprises
of latest technology.
 Inventory Management: As the organisation is involves in producing cars and other
vehicles and for producing this Toyota need to ensure that they are equipped with
adequate amount of resources such as raw material. It is the responsibility of management
team to guarantee that business have the adequate amount of resource to continue
production processes without any difficulty (Leeuwenburgh and et. al., 2014). In this
manager will closely work to identify that operations are going as per the plans and keeps
regular check so that if any deviation arises in any area like technical obsolete or low
skilled labour then manager will take quick decision on repairment of equipment and
training to the employees.
 Supply chain management- The organisation uses automatic systems in order to
establish real time adjustment in the supply chain. The manager needs to take decision
after analysing the current situation and their actions should be focusses on enabling a
cost effective methods in order to ensure the smooth flow of production.
 Scheduling- In order to ensure that all the different task in the business is being handled
on a appropriate time. The business prepare schedule such as resource scheduling which
is done in order to maintain the operating cost of the business. Manager needs to pay
attention while scheduling different task so that they can be tackled in given time period
and also to eliminate confusion about different job responsibility.
 Job design and human resource: The organisation focuses on respecting every
individuals associated with the same. It is integrated in the business human resource
programme and policies as well. The manager ensure that adequate amount of human
resource is available to the organisation and also ensure tat the current workforce are
treated in fair manner which involves providing solution to their issues on timely basis. It
will them them to work more efficiently in the business.
 Quality Management: To ensure that quality is being maintained in different processes
of the business, so Toyota Corporation will use production system of the organisation. It
is the duty of manager to ensure that quality is being ensured in different department such
a production department because production department is responsible fro producing and

manufacturing good quality products and services so that the business can facilitates
continues improvement in it's work processes. This can be done by regularly keeping
checking on the quality control of the organisation that produced products are made with
proper efficiency and effectiveness without compromising with the quality.
3.key operational approaches to operations management and their value.
There are approaches which are being used by Toyota Corporation in their operation
department that can be pointed below-
Just in time : Under this method the business organizes labour, goods and material in
such a manner that they are exactly available when they are required in manufacturing process.
The main objective behind this is to ensure regular production by eliminating the obstacles that
can be there because of the unavailability of the things which are essential for process. In
Toyota, it helps the businesses to stock the right amount of inventory and help to avoid
overstocking. It helps the businesses to maximise the the inventory turnover and also help to
minimise the cost which is associated with holding inventory. If the organisation stocks larger
amount of inventory the required the money will get blocked in the inventory and by this
approach they will be able to protect their money from getting blocked. Under this approach the
businesses requires good understanding of their supplier and manufacturers so that they can get
right amount of stock and also can maintain quality and quantity in the inventory (Lüttgau,
2016). It is helpful for maintaining a good relation it the suppliers in order to ensure that the
suppliers supply the desired amount of goods. It is important in future because it help in
managing the inventory and help in making lesser investments by the firm as receiving goods at
times when it s not necessary to increase the investment of the cost of the firm.
Six sigma : This approach focusses on both increasing customer experience and
minimising cost. Under this approach businesses focusses on minimising the level of defect in
their operational and transaction process. It helps the business in reducing the chances of error or
mistake in processing and delivering of products and services. For further importance, it is
beneficial for providing the satisfaction to the customer by analysing their needs, demands, taste
and preferences so that it can provide products and services according to the consumers. If
Toyota implement this approach in the operational management then it can attain maximum
customer satisfaction by minimizing defects and improving the return on sales, investments etc.

Total quality management: It can be defined as a series of continuous effort which are
being made by both business and staff members in order to achieve customer loyalty and
customer satisfaction. It can also be expressed as customer centric approach which focusses on
coordinating the efforts of every individuals towards achieving the overall organisational goals
which is focussed on improving the quality and quantity of their product and services by
ensuring quality in products Toyota is able to influence and satisfy customer in a better way.
This approach is important for the future growth of the company because it help in analysing the
quality of the products and help in providing better quality goods and services to the customers
so that they can satisfy their demand by getting products according their needs.
Kaizan: This is considered as a effective models of operation management. It is the Japanese
management concepts which significant regular changes or development for betterment. Toyota
company utilise this techniques for continuous efforts for development by all staff as well as
assure improvement of whole procedures and system of firm.
Importance and Value of Operation management Higher Standard of Living- With the assistance of operation management, respective
working in Toyota can enhance its living standard. It assist in doing all task in effectual
way that leads towards higher profitability which automatically develop the standards of
living.
 Better Quality of Goods and Service- The user opt quality goods and services that is
possible only if Toyota has effectual operation management group for performing work.
With assistance of operation management, manager can appraise all the work for
effective work performance.
Importance of operation management: It is illustrated below:
 Control and distribution system: Toyota Motor Corporation renders effectual
distribution of services. This can happen only when there is trenchant utilisations of
resources as well as less wastage and products will be delivered within time.
 Transformation of raw materials into finished products: Production team of Toyota
Motor Corporation needs to have effectual usage of resources so that there will be less
wastage of products and raw materials can be transformed into product in required
manner.

Values of operation management: This will provide people as well as employees with high
standards of living when productivity of Toyota Motor Corporation will be higher. If goods are
provided at lower cost along with better quality then services will be enhanced.
4. Impact of external business environment factors on decision of manager and leaders.
There are different external factors which affect the decision of leaders and managers that
can be expressed below-
Political factors: These involves factors such as political stability, taxation policies and
trade agreements. As the business is serving customers all across the globe it is important for the
manager to analyse the political environment of different segments in to work as per their
government mindset. If their government have suggested the firm to use of eco friendly method
in the production processes then the managers are responsible to analyse these methods and then
implement them and the leaders are obligated to train and guide people so that thy can implement
the same in the business (Mateo and et. al., 2014).
Economic factors: These includes factors such as recession and inflation rate. If the
economic condition of a particular segment is good then it will help the organisation to increase
their operation in that particular economy. The manager will be able to provide more
employment opportunity and leaders will be able to lead more number of employees. If the
manager of the firm take decision by considering the needs and demands of the customer then it
help in increasing the sales of the company and economically affect the gwoth of the frim in
positive way.
Social factors: It involves the impact of various socio culture factors on the business.
For instance the trends are emphasizing on more use of electronic and hybrid cars then the
business will focus on producing the same. The managers and leader both will work on
motivating and leading the work force in order to produce more so that they can satisfy customer
needs.
Technological factor: This factor comprises of technological trends that take place in the
economy. In order to produce product with latest technology and the product which comprises of
latest feature the manger of the business needs to analyse the market and needs to enable these
trends in the different processes of the business. It is the duty of leader to formulate strategies
that will focus on implementation of these technologies in the business they will also

communicate the advantage of these technological updates to their employees so that they do not
resist it's implementation in the business (Nayak, 2015)..
Corporate culture: This is refers as the value as well as behaviour of individuals in firm.
It is necessary for the TOYOTA manager to obey the culture of the organisation efficaciously.
Thus, the role of leaders and manager role is to boost their staff to adapt its culture in effective
manner.
Impact of organisational culture cites affirmative of small organisational structure by
collaborating with others. Leaders and managers of Toyota Motor Corporation must be proactive
while mitigating risks with respect to decisions so that there might not be negative impact of
culture . For this they need to be artistic, inclusive and creative for this they need to formulate
assumptions with respect to successful environment.
Ethics and Values: These are refers as the plan of action, attitudes, codes of the
TOYOTA needed to be adapt through entire inside worker. Hence, manager roles and obligation
is to direct the personnel to do their operations in ethical manner in order to fulfill the
organisational objectives.
Sustainability: This is refers as a process of individuals keeping modification into
balanced environment where resources development, investments way, orientation of
technological betterment as well as institutional occurrence are whole in order as well as exploit
both future and current potentiality to meet need of individuals and organisation. As there is not
any sustainability in environment then both managers and leaders decision of Toyota get
impacted. Both have to make plans and strategies as per environment sustainability in respect of
resources, investment etc and guide them to work accordingly so that they can attain objectives
of the firm.
Both leaders and managers are responsible to take decisions with respect to this aspect, as
leader formulates the team and ensures that project is accomplished with respect to time duration
and quality. Managers are responsible for taking the projects which seams to be feasible. This
will have strong impact on both sustainability as well as performance of organisation.
Corporate social responsibility: This is considered as how firms handle its procedures
of business in order to generate a whole positive effect on society. Due to corporate social
responsibility factors the managers and leaders of the decision get effected as both leaders and

manager of the TOYOTA have to perform activities relate to society. Some CSR activities of
Toyota is Recycling, CO2 emissions, supporting local communities and many more.
CSR denotes the concept of management in which organisations merge their social as
well as environmental concerns with respect to business operations and communication with
stakeholders. The decisions are formulated by managers and leaders of Toyota Motor
Corporation by taking into consideration CSR. They make ensure that anti-corruption, human
rights, working conditions and measures for labour standards are taken.
External factors:
Stakeholder analysis:
This is considered as a procedures of systematically accumulating as well as examining
qualitative information to ascertain whose interests should be undertaken in account when
improving and executing a program. Stake holders of Toyota are customers, suppliers,
employees and many more.
The success of projects is dependent on leaders as well as managers. The stakeholders
can be anyone either employees, management or any one from outside environment who has
interest in success of project. So, it is necessary for them to take decisions in such a manner that
there is no negative impact on success of project by which they may not have sufficient sponsors
for their project.
5.How operational efficiencies can be improved to successfully meet business objectives.
Operational efficiency can be increased by enabling the right mixture of people,
technology and processes. It is done with a motive of minimising the waste and maximising the
value creation process of business that is done to achieve overall organisational goals. There are
leadership and management approaches that can be beneficial for the orchestration to make
important in the efficiency of the firm. They are as following:
Democratic leadership approach- It is a type of leadership approach in which leader
will help in making or designing the final decision and thy invites other members of the team to
make contribution in the decision making process. Basically, it is a type of leadership style in
which all the member of the group are liable or able to participate in the decision making process
so that they can share their views and ideas. It is beneficial for the company because with the
help of this leadership style, the employees can share their problems to their senior and resolve
them on time. It help in reducing the conflicts and improving the efficiencies of an organisational

department. It help in achieving the organisational objective because the employees facing issues
related to it, they can find the solution with their superior related to it.
Autocratic management approach- It is a management style in which managers are the
leaders and they are responsible to take decisions and provide guidance to the employees. In it,
they have the power of guide the employees and the people who are working in a team have few
opportunities for making suggestions. It is important because if the decision will be wrong then
only the managers are responsible for this. It hep in the improvement of the efficiencies of an
organisational by developing strategies and policies so that they can attain their set aims and
objectives (Parisio, Rikos and Glielmo, 2016).
6.Conclusions and recommendations.
From the above analysis it has been concluded that operation management is an key
element in the business. It explained approaches of operational management that are being used
by business. Along with it it have also examined the impact of different environmental factors on
decision making of the business. It is recommanded to the business they they pay more attention
in analysing the customer needs and wants and producing goods and services accordingly. They
can also focus on producing product that are being affordable by every section of society. Which
will help them to cater the needs to different section of society (Pavlineri, Skoulikidis and
Tsihrintzis, 2017).
CONCLUSION
From the above report it has been concluded that managers and leaders plays an essential
role in functioning of the business. The report further analyse different management and
leadership approaches with their respective strengths and weaknesses. It also analyse how
managers and leaders deals with different environment factors and how that effect their
decisions. Later part of the report deals with the recommendations which will help the
organisation in increasing their performance in future.

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