Toyota’s Organizational Behaviour

This case study of Toyota Company elaborates the organization development theories, strategies to enhance the organizational performance, internal and external factors, and the role of structure and design in organizational development and change.

Running head: Toyota’s Organizational Behaviour 1
Organizational behaviour
Toyota’s Organizational Behaviour

Toyota’s Organizational Behaviour 2
Contents
Introduction.................................................................................................................................................3
Organisational development theories...........................................................................................................4
Strategies to enhance the organizational performance.................................................................................6
Internal and external factors........................................................................................................................8
Internal factors.........................................................................................................................................8
Strengths..............................................................................................................................................8
Weaknesses.........................................................................................................................................8
External factors........................................................................................................................................8
Opportunities.......................................................................................................................................8
Threats.................................................................................................................................................9
Assess the strategies organization employ to affect change and development...........................................10
The role of structure and design in organizational development and change.............................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

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Introduction
Organizational development is considered as the systematic approach that facilitates to improve
effectiveness of the organization. It is vital for the organization to implement change for
attaining desired goals of high performance and competitive advantages (Burnes & Cooke,
2012). The case study of Toyota Company is taken for this assignment to elaborate the
organization development theories. Various strategies will be defined in order to improve the
organizational performance. Internal and External factors have the huge role in the organisational
development which will be discussed in the term of Toyota Company.
Overview of the case
Toyota PLC is a component of Toyota Motor Corporation which is the world’s seventh largest
company. This company is responsible for marketing, sales and customer relations across its
entire network globally. The case study of Toyota shows that it has decided to replace business-
critical systems with open source business applications. It is the huge change in the organization
that affects entire employees of the company. This case study shows that how one of the famous
company chosen an open source solution to reinstate the core system of at Toyota (GB) PLC and
chose 1Tech (1Tech, 2018).

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Organisational development theories
It is defined by Bennis that organizational development is considered as a respond to amendment
in educational strategy which is planned to change the attitudes, values and structures of
organization so that an organization can adopt latest technologies, challenges, and markets.
There are various theories of organizational development which helps organization to move
ahead without any obstacles. Lewin’s Theory is effective one of them which shows the balance
regarding changes within the organization.
Kurt Lewin and Followers
It has been found that one active theory of organizational development and change is the
equilibrium theory. The change management model was introduced in 1940 and the component
of this model still remains reliable and relevant today and this theory has developed by Lewin
which is able to find out the balance factor between desirable and non-desirable behaviours that
practioners of OD utilize to move the point of equilibrium to one side for attaining the desired
results (Kaminski, J2011). It entails unfreezing, moving and freezing factors that can be found
within the change process. In the context of Toyota PLC it has been found that unfreeze is the
initial step that is able to reduce the forces that are resolute to sustain the status of the
organization. It is the stage in which company can find out the gap between the desirable
outcome and current outcome. The second step of this model is transition which consume a lot of
time because in this stage people are looking for better things (Manchester, Gray-Miceli,
Metcalf, Paolini, Napier, Coogle & Owens, 2014). As per the case study Toyota need to give
proper training ti the employees due to amendments in the organization. Toyota has identified
the potential strategic platform as opentaps and 1tech is the opentaps specialist in Europe. 1Tech

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was involved in the selection of opentaps which given the challenges of increasing a working
prototype of a system that allow Toyota dealers to handle the customers, produce quotations,
configure vehicles and analyse the activities and sales. These challenges were faced by Toyota
PLC during this model that covers transition point. The last stage of Lewin’s model is freeze
which shows that the amendments in the organizations are okay and can be freeze.

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Strategies to enhance the organizational performance
There are various strategies of organizational development that enhance the organizational
performance. Diagnosis, action planning, interventions, evaluation are the major strategies of
organizational development.
Diagnosis
The diagnosis is the strategy that helps to find out the potential causes that may affect the
efficiency to the implemented changes. It is done by organizational development specialist by
examining the goals, objectives, mission and vision of the organization. It is the effective
approach that can identify the current situation and desired situation so that company can take
appropriate actions to fill the gaps (Bushe and Marshak, 2009). It would be helpful to enhance
the organization performance because once company identify the actual performance gap; the
initiatives can be taken immediately to fill the gap that increases the efficiency and productivity
of the employees as well as the organization.
Action planning
Action planning is another strategy of organizational develop that can facilitates change makers
revolve their mission and visions into reality and amplify the accountability and productivity
within an organization. An action plan is the strategy that explains the process to the organization
for attaining the objectives by details actions steps that explain how and when these steps will be
taken. It allows company to make possible amendments in the action plan due to changes in the
strategy. It would be helpful for the organization to improve the organizational performance

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because action plan aids them to do activity as per planned changes which reduce the chance of
confusion and enhance the efficiency (Langley, Smallman, Tsoukas & Van de Ven, 2013).
Interventions
Interventions are considered as the principle learning processes in the stage of action of
organizational development. There are various kinds of interventions such as human resources
interventions, strategic interventions and techno structural interventions that are able to increase
the organization performance (Hayes, 2014). Toyota Plc is facing challenges regarding change in
the process which can be reduced with the help of above mentioned interventions.
Evaluations
The evaluation can contribute to the organizational development in an adequate manner. This
strategy enables the organization to attain its strategic goals. As per this strategy, Toyota Plc can
assess the planned change endeavours by evaluating the progress of the organization in executing
the change and by documenting its impact on the organization (Bhasin, 2016).

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Internal and external factors
The internal and external factors of the Toyota Plc can be evaluated by SWOT analysis which
entails the strength, weaknesses, opportunities and threats of the company which will be helpful
to reflect the influence about the process of organizational development and change.
Internal factors
Strengths
The strength of Toyota Plc is to move ahead towards the change that is replacement of business
critical systems with open source applications. 1Tech Company is being chosen to advice on and
implementation of open taps within the organization. It would be helpful to enhance the
organizational performance of Toyota Plc. It is the world’s seventh largest company second
largest manufactures of cars. 1Tech has been working with company for many years on
Information system solutions that extent the operations of business.
Weaknesses
Toyota offers a wide range of vehicles with integration of more than 20 million configurations
options that involve customization which should be sustained by a production such as the supply
of extra parts and workflow across the entire lifecycle of every model. The company is not that
much capable to respond in effective way. Lack of training about the implemented changes is
another weakness which may bring conflicts and low morale among employees.

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External factors
Opportunities
There are various opportunities can be evaluated in Toyota Plc such as technological innovation,
sustainability and diversification. In the context of technological innovation, company can
increase its investment in research and development which boost the competitive advantages.
The company can develop new engines and designs to improve the fuel economy (Cummings,
2009). The Toyota Company has low level of diversification which can be increased by investing
in high level of machineries to distribute its business in various industries.
Threats
The biggest challenge for the company is managing the change within the organization. It is
necessary for the company to implement the progressive approach. It has been analyzed that
current threats facing by Toyota is rise of fuel prices, aggressive competition and new entrants.
Competitors started to use aggressive strategies like increasing the aggressive marketing for the
purpose of increasing the market share in comparison of Toyota Company (Victor & John,
2011). The fuel price has been raising day by day which turns customer towards more
economical options. The threat of new entrants by adopting the same changes as Toyota Plc did
can be the major threat for the organization.

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Assess the strategies organization employ to affect change and development
The role of various strategies in organization is huge as it affects change and development of the
organization. The strategies are given below in the context of Toyota Plc.
Proposed incentives
It is vital for Toyota to produce incentives plan that will certainly motivate the employees of the
company to engage with the new direction of the company. The change and development can be
affected properly by the employee recognition process and rewards strategy that increase the
potential of each employees towards change.
Redefined cultural values
Redefined cultural values strategy is effective as it helps to bring the positivity within the
organization. However, the changes in the cultural values may brings conflicts within the
organization but Toyota can do make changes in an efficient manner by keeping consideration of
company’s values (Hatch, 2018).
Exercise authority
An organization can opt to exercise its authority to reduce opposition of employee and get
workers to adhere to new process and cultures as quick as possible. It has been found that the
coercive strategy is the fastest process to implement change but it can be problematic for the
organization if it is not implement with efficiency (Green, 2012).
Shift the burden of change

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The strategy of shifting the burden of change can enhance the productivity of the workers by
diverting their mind from one place to another. It will increase the learning environment in which
an employee can learn new things (BEM, 2017).
Recruit champions of change
Radical change is met with upper level of resistance but it has been analyzed that the odds of
growth can be developed of the voices championing amendment belong to workers. Toyota can
recruit the champion of change who can provide proper guidance to the employees of Toyota.

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The role of structure and design in organizational development and change
The role of structure and design is valuable in organizational development and change. The
proper structure and design of organization is able to define the responsibilities of each
individual of the organization. Decision making process can take place in the organization in an
effective manner due to proper structure. The structure and design of Toyota Company is
effective as it helps each employee of the company in case of any conflicts. It has been found
that the organizational structure and designs are vital aspects affecting behaviour of individuals
that entails the organization. The role of structure is to make the expectations for what an
individual will do to attain the purposes of the organization (Vahlne & Johanson, 2017). On the
other hand the role of design is to determine the way employees do their tasks. Work
specialization, departmentalization, chain of command, centralization and formalization are the
specific elements of organizational structure of the company. Toyota has adopted this strategy
which would be helpful for it to encourage employees for attaining the objectives of the
company. Differentiation is the approach by which an organization delegates the responsibility to
the workers (Burke, 2017). In the context of case study of Toyota, it is vital for the organization
to understand the requirements of the users in depth manner and explain the software architecture
to sustain them by utilizing standards opentaps things and services with customization in
necessary points.

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Conclusion
From the above discussion, it can be concluded that organisational development is used to
increase the knowledge and efficiency to attain more successful organizational change and
performance. The report has been made on Toyota Plc Company in which various strategies
implemented to enhance the performance of the organization. Internal and external factors have
been implemented to define the opportunities and challenges with considering the case study of
Toyota. Along with that the strategies have been discussed which may affect the change
development. The role of structure and designing organization development and change is huge
which described in depth in this assignment.

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References
1Tech, (2018). Toyota Case Study 1. Retrieved from:
https://www.1tech.eu/clients/casestudy_toyota1?menu_type=menu_by_client_name.
BEM, (2017). 5 Effective Change Management Strategies. Retrieved from:
https://www.businessmapping.com/blog/5-effective-change-management-strategies/.
Bhasin, H, (2016). Marketing mix of Toyota – Toyota Marketing mix. Retrieved from:
https://www.marketing91.com/marketing-mix-toyota/.
Burke, W. W. (2017). Organization change: Theory and practice. Sage Publications.
Burnes, B. & Cooke, B. (2012). The past, present and future of organization development:
Taking the long view. Human Relations, 65(11), pp.1395-1429.
Bushe, G.R. & Marshak, R.J. (2009). Revisioning organization development: Diagnostic and
dialogic premises and patterns of practice. The Journal of Applied Behavioral
Science, 45(3), pp.348-368.
Cummings, T. (2009). Organization development and change(pp. 25-42). John Wiley & Sons
Ltd.
Green, M. (2012). Transitional Space. Accessed on 5th April, 2018, from: .
Hatch, M. J. (2018). Organization theory: Modern, symbolic, and postmodern perspectives.
Oxford university press.
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan.

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Kaminski, J. (2011). Theory applied to informatics-Lewin’s change theory. Canadian Journal of
Nursing Informatics, 6(1), pp.1-4.
Langley, A. N. N., Smallman, C., Tsoukas, H., & Van de Ven, A. H. (2013). Process studies
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Manchester, J., Gray-Miceli, D.L., Metcalf, J.A., Paolini, C.A., Napier, A.H., Coogle, C.L. &
Owens, M.G. (2014). Facilitating Lewin's change model with collaborative evaluation in
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Vahlne, J. E., & Johanson, J. (2017). The internationalization process of the firm—a model of
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Victor L. H. & John, R. D. (2011). Toyota in crisis: Denial and mismanagement, Journal of
Business Strategy, 32(5), 4-13.