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Understanding and Leading Change: A Comparative Analysis of BMW and Toyota

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Added on 2024/07/01

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This assignment explores the dynamics of organizational change, focusing on the experiences of BMW and Toyota. It examines internal and external drivers of change, their impact on teams, leadership, and individual behavior, and strategies to minimize negative impacts. The study delves into the application of leadership theories and models, including Kotter's 8 Steps of Change and the Burke-Litwin Model, to critically evaluate organizational responses to change. It also analyzes barriers to change and their influence on leadership decision-making, utilizing Force Field Analysis to identify driving and restraining forces. Finally, the assignment evaluates the effectiveness of different leadership approaches in delivering organizational change, considering the specific contexts of BMW and Toyota.

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Table of Contents
INTRODUCTION.............................................................................................................................. 2
TASK 1............................................................................................................................................ 3
P1- COMPARING THE ORGANIZATIONAL EXAMPLES WHERE THERE HAS BEEN IMPACT ON
ORGANIZATIONAL OPERATIONS AND STRATEGY.......................................................................3
P2- EVALUATING THE WAYS IN WHICH THE INTERNAL AND THE EXTERNAL DRIVERS OF
CHANGE AFFECT THE TEAM, LEADERSHIP AND INDIVIDUAL BEHAVIOURS WITHIN THE
ORGANIZATION.......................................................................................................................... 5
P3- EVALUATING THE MEASURES THAT CAN BE TAKEN TO MINIMISE THE NEGATIVE IMPACTS
OF CHANGE IN ORGANIZATIONAL BEHAVIOUR.........................................................................8
M1- ASSESSING THE DIFFERENT DRIVERS OF CHANGE IN THE ORGANIZATIONS AND THE
TYPES OF CHANGE THEY HAVE AFFECTED...............................................................................10
M2-APPLICATION OF THE APPROPRIATE THEORIES AND MODELS TO CRITICALLY EVALUATE
THE ORGANIZATIONAL RESPONSE TO CHANGE.......................................................................12
P4- DIFFERENT BARRIERS OF CHANGE AND THEIR INFLUENCES IN THE LEADERSHIP DECISION
MAKING WITHIN THE ORGANIZATIONAL CONTEXT.................................................................14
M3- USING THE FORCE FIELD ANALYSIS TO ANALYSE AND DRIVE THE RESISTING FORCE AND
SHOWING THE INFLUENCE ON THE DECISION MAKING..........................................................16
P5- APPLICATION OF DIFFERENT LEADERSHIP APPROACHES TO DEAL WITH THE CHANGES IN
RANGE OF THE ORGANIZATIONAL CONTEXT...........................................................................18
M4- EVALUATING THE EXTENT UP TO WHICH THE LEADERSHIP APPROACHES CAN DELIVER
THE ORGANIZATIONAL CHANGE AND EFFECTIVELY BY APPLYING APPROPRIATE MODELS AND
FRAMEWORK........................................................................................................................... 20
CONCLUSION............................................................................................................................... 22
REFERENCES................................................................................................................................. 23
1

Table 1- Internal and External Drivers.........................................................................................11
Table 2- Leadership Approaches..................................................................................................21
2

INTRODUCTION
The organization change is responsible for reviewing as well as modifying the various structures
as well as the processes of the management. This is done to ensure that these changes are
reflected in the methods of working in order to gain the competitive advantage in the market.
The change in the processes of the organization is done by analyzing the market so that the
needs can be identified. The competitive advantage can be gained by using the techniques of
innovation within the organization.
This assignment deals with the role of leadership that reflects the changes in the organization.
The two industries concerned with the automobile are taken into consideration such as BMW
as well as the Toyota. The impact of the change occurring in the organization, individual,
leadership is elaborated. The positive change in the organization occurs when the time, as well
as the cost of production, is reduced. The negative change in the organization occurs with
respect to the behaviour of the team as well as the individual while implementing the changes
in the processes of the organization. Leadership is the most important factor which helps in
reducing the obstacles encountered due to the changes in the organization.
3

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TASK 1
P1- COMPARING THE ORGANIZATIONAL EXAMPLES WHERE THERE HAS BEEN
IMPACT ON ORGANIZATIONAL OPERATIONS AND STRATEGY
As the world is growing very fast, the changes are noticeable with respect to the technology as
well as the competition. The management of these changes is done by the leader that helps in
influencing the organization in order to attain the goals as well as the objectives of the
organization. The leader role here is to analyze those factors which are affecting the growth as
well as the operations of the business. This also creates an impact on the business environment
thereby causing the situation to drive. The efficiency of the organization is maintained by using
the advanced technology in the business operations with is accomplished with the help of
change drivers. The objectives of using change driver help in focusing on the procedures to be
implemented in an organization in order to achieve the goals of the business (Thompson, 2017).
Following are the factors that are responsible for making change drive in the structures of
Toyota are described as follows:
COMPETENCIES
The competencies must be overcome by the Toyota so that it can gain as well as built the
support of a large number of customers. The support can be gained through the provision of
attractive facilities as well as services to the consumers that differ from the other organization
(Burke, 2017).
COMPETITORS
The Toyota organization was set up in order to provide the effective delivery of the services
such as the vehicles to the consumers thereby bringing the competition to the market. This is
one of the major change drivers that are responsible for creating a need for change.
CHANGE IN ORGANIZATION STRUCTURES
4

The need for the organization structure change at the Toyota arises in making the effective
decisions to be implemented, along with the management as well as building the innovation in
the processes of the business. This brings out the opportunity for the employees of the Toyota
that enables them to work hard in order to achieve the huge customer base by providing the
effective services to the consumers (Cummings and Worley, 2014).
TRANSFORMATIONAL CHANGE
The transformational changes are the changes done in the business system of the organization
that helps in building the future organization. The technological, as well as the cultural changes,
are being developed in the organization of Toyota in order to create a good working
environment. In order to build the position globally, the Toyota must do the alteration in the
competence as well as the protection technology (Nkomo, 2018).
These above-mentioned change drivers were being noticed by the Toyota by showing their
concern towards the environment. The eco- friendly technology is being used by the Toyota in
designing the vehicle. The fierce competition affected the strategies of the BMW which affected
the activities of the organization.
5

P2- EVALUATING THE WAYS IN WHICH THE INTERNAL AND THE EXTERNAL
DRIVERS OF CHANGE AFFECT THE TEAM, LEADERSHIP AND INDIVIDUAL
BEHAVIOURS WITHIN THE ORGANIZATION
Leadership can be defined as the activity of a leading a group of people in an organization or
the ability to do this. Change is one important part of the human nature that is always resisted
by the individuals. There are different factors that are driving the change in the team,
leadership and individual behaviour of the organization that includes the internal and the
external drivers which are defined as below-
Some of the external drivers that are impacting the team, leadership and the individual
behaviour within the BMW and Toyota are described as below-
POLITICAL
The performance of the BMW and Toyota is directly impacted by the political factors and the
political force highly impacts the automobiles along with the spending capacity of the
customers and the other businesses (Innovation Enterprise Channels, 2018).
ECONOMIC CHANGES
The leaders of the organization are being challenged due to the economic factors like the
exchange rates and the global economic growth which led them to set a dynamic approach for
the company’s growth and the ways by which the team takes up challenges. This impacts the
performance of the individuals.
NEW COMPETITORS
The competitors of the BMW and Toyota like the Bentley, Volkswagen etc. are implementing
several changes in these organizations and it impacts the leadership as they have to make more
efforts to stay ahead of the competitors (Thompson, 2018).
TECHNOLOGICAL CHANGES
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A high completion in the automobile industry has been created due to the advancement made
in the technology and the technological innovations make the operations of BMW and Toyota
better and cheaper. The team gets motivated to discover new cars.
LEGAL
The governmental policies and laws related to the pollution in the European market changes
the team as well as individual behaviour.
The internal drivers of changes include the following-
Culture and organizational behaviour
The culture of the organizations impacts the leadership, team and the individual behaviour.
BMW and Toyota are always ready to accept the changes and listen to the customer and the
staff suggestion that helps in the positive attitude and behaviour of the individuals (Fullan,
2014).
Employee morale
It is essential that the self-confidence and the strengths of the employees must be maintained
for the success of the organization as when the employees of the organization will be happy
and satisfied a positive energy will be reflected from the organization.
Poor customer service and delivery
The complaints of the customers of the poor performance and the quality of customer service
impacts the bottom line of the organization and their profit margins.
Finance management
The role of the financial management is very important in the organization and in order to keep
the company’s balance positive proper cash flow and financial usage must be maintained
(Cameron and Green, 2015).
High wastage
7

It is essential that the BMW and Toyota keep the minimum amount of wastage as possible and
focuses on more production to bring the changes (Kuipers, et al. 2014)
The above-mentioned drivers of change impact the individual behaviour- it results in the loss of
job of the individuals as they resist the changes but the individuals who are able to bear the
changes are satisfied and have positive work approach, the behaviour of the individuals get
affected if the change process is not properly communicated to them. The individuals resist the
changes as they have fear of losing the control over the work. The lack of competence can
impact their personal growth and development. The individual motivation is affected by the
lack of rewards, office and poor work timings. The leadership is also impacted like- their goals
setting, monitoring and controlling the work gets affected, abilities to deal with conflicts
increase, they motivate the people to solve the problems and easily communicate the vision to
the teams (Burke, 2017).
8

P3- EVALUATING THE MEASURES THAT CAN BE TAKEN TO MINIMISE THE
NEGATIVE IMPACTS OF CHANGE IN ORGANIZATIONAL BEHAVIOUR
There are certain measures that can be taken by the BMW and Toyota to minimize the negative
impacts of the changes in the organizational behaviour that includes-
Involve the employees in the change process
The employees of the BMW and Toyota must be involved in the change process so that changes
can be implemented in better ways for which a formal communication channel can be used
(Lozano, 2015).
Interviewing the employees regarding the feelings
The managers and leaders must understand the employees’ feelings related to change and
address their issue as it required the ability of selling and marketing for implementing the
change.
Concentrating on effective delegation
The managers and supervisors must concentrate on effective delegation at the start of the
change process as it helps to manage the workload and give employees a sense of involvement
(Posavac, 2015.).
Asking for employee commitment
The employees must be personally asked for their commitment to work once the changes have
been announced and assure them that you are interested in hearing out their problems
Expanding the communication channel
The communication channel the BMW and Toyota must be enlarged so as to beef up the
communication and an opportunity to the employees must be given their inputs and they must
update on regular basis (Doppelt, 2017).
Remain firm, committed and flexible
9

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Once the changes are being introduced, they must not be abandoned by the companies in
halfway and both the organizations must be flexible to adapt the different situations
Train and prepare
The employees must be trained to learn new skills which will be helpful in their new roles
(Reason, 2016).
Demonstrate your genuine concern
During the times of stress, the managers must deeply show their concern towards the
employees and open the lines of communication.
10

M1- ASSESSING THE DIFFERENT DRIVERS OF CHANGE IN THE ORGANIZATIONS
AND THE TYPES OF CHANGE THEY HAVE AFFECTED
There are significant organizational changes that have been found in the BMW and Toyota
while assessing the incompatible drivers of change. There are major changes that are being put
forwarded by the Toyota in the business structure as a part of the continuous improvement
policy that led to the attainment of its competitive advantage. The changes in the BMW varied
from the revaluation of the company’s hierarchy and its management objective (Alvesson and
Sveningsson, 2015). The different types of changes that are brought due to the different drivers
of change are as follows-
Drivers of changes for Toyota
Some of the internal drivers that have promoted the company with the changing demands of
the customers include the new technology, improving performance and change in the business
processes. The organizational changes that have brought in the Toyota include the introduction
of new technology in the automobiles, new skill development, changing the job structure,
changing of demand and the administrative procedure along with the production procedures.
Table 1- Internal and External Drivers
[Source: Wheeler and Holmes, 2017]
While the strategies of a company to gain the competitive advantage in the industry changed
due to the external drivers like the globalization, governmental policies and legislation,
11

customers attitude etc. The skills, behaviour and the attitude of the Toyota employees got
changed due to the external drivers and the working structure and management style of the
company (Bradley, 2016).
Drivers of change in the BMW
The hierarchy of the BMW, its structure, administrative procedures has got changed along with
the management styles due to the internal drivers like the rising competition and the changing
business processes. The external drivers like the mergers, compliance, acquisitions have
changed the strategic mission of the BMW, purposes and its overall goals. The BMW has to
adopt changes like mergers and acquisitions due to the rising competition (Benn, et al. 2014).
12

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M2-APPLICATION OF THE APPROPRIATE THEORIES AND MODELS TO
CRITICALLY EVALUATE THE ORGANIZATIONAL RESPONSE TO CHANGE
The different theories and models that can help in the critical evaluation of the organizational
response to changes include the following-
KOTTER 8 STEPS OF CHANGE
Based on the research of over hundreds of organization the model of making a climate of
change in an organization is developed that includes-
1. Increasing urgency
A sense of urgency in doing a task at hand and getting a right team together is
developed to deliver a transformation change in the organization.
2. Build a guiding team
The right people in a place help on building the right team with commitment and trust
to do the job (Salman and Broten, 2017).
3. Developing the vision
A vision must be developed based on what change is needed to make the future of the
organization more probable.
4. Communicate for buy-in
The points like the under-communicating, pushing the information and not walking the
talk must be understood well before convening the messages and addressing the people
anger, distrust and anxieties
5. Empowering the actions
The skills of the employees of Toyota are being enhanced and their actions are
empowered to help them in accepting the changes (Wheeler and Holmes, 2017.).
6. Create short-term wins
13

Creating short-term wins helps in the attainment of feedbacks of vision and strategies
and building faith in the change project
7. Don’t let up
Do not let up in between while implementing the changes and develop a new culture in
the Toyota (Salman and Broten, 2017).
8. Make change stick
The company must stick with the changes that are brought in the Toyota for its future
development and success.
BURKE-LITWIN MODEL
A link between the internal and the external environment of the Toyota can be established with
the help of this model. There are 12 dimensions on which these factors are categorized and
meaningful links between all these dimensions can be created for effective transiting from one
phase to another (Olivier, 2018.).
14

P4- DIFFERENT BARRIERS OF CHANGE AND THEIR INFLUENCES IN THE
LEADERSHIP DECISION MAKING WITHIN THE ORGANIZATIONAL CONTEXT
The different barriers of the change in the Toyota include the following-
Lack of Consensus- Barriers are faced by the organization if every employee is not taken on
board in the corporate changes which can be done by showing the managers that how the
changes will impact the organization and the steps in which the changes can be implemented
(Wilensky,2015).
Lack of communication- There are certain rumors and fear invited in the organization due to
the lack of communication when the company is facing the major changes of downsizing and
this makes the employees feel that they are not a part of decision making.
Employee resistance- Employee resistance is one of the major barriers to change as when
major changes are brought in the Toyota the employees become upset (Nilsen, 2015).
Improper planning- If step by step planning is not done in the organization is not done for the
implementation of the change then the organizations may likely to fall and more problems can
be caused than the benefits.
ANALYSING THE INFLUENCE OF CHANGE ON THE DECISION MAKING OF THE BMW AND
TOYOTA
Toyota has always adopted “Lewin’s Barriers for Change” within the organization for the
purpose of long-term growth. The decisions in the Toyota are made gently by the consensus in
which the entire options are considered thoroughly and then the decisions are rapidly
implemented in the changing environment. There are “Guiding Principles at Toyota” which
includes five major principles that are taken care while taking any decisions related to the every
Toyota Factory, its subsidiary and dealers and suppliers. The “Global Vision 2020” is accepted
by the Toyota in which the management plan of medium to long-term work is defined along
with how to achieve the goals. The management of the organization opts a flexible approach to
managing the strategic changes (Wilensky, 2015). The company now first reorganizes the
15

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problems, analyzes the solutions, finds alternative solutions, applies a solution and then
communicates the process of learning of dealing with the changes to its employees.
16

M3- USING THE FORCE FIELD ANALYSIS TO ANALYSE AND DRIVE THE
RESISTING FORCE AND SHOWING THE INFLUENCE ON THE DECISION MAKING
FORCE FIELD ANALYSIS
It is one of the effective and a structured decision-making technique that helps Toyota to make
difficult or challenging decisions that increases the chances of success of the organization. It
helps in the classification of the driving and the restraint forces that are present in any situation
in which the Toyota prevents the restraining forces and promoted the driving forces to stop the
desirable changes from taking place. The decisions in the Toyota are made with consent as they
believe that in executing fast decision in the changing situations and in the total options
systematically (Scott, 2015.).
EXTERNAL TRIGGERS THAT ARE DRIVING THE CHANGES]
The change in the Toyota is essential due to the external growth and development and there
are several external factors like the market shares, environmental issues, health and change
awareness in demography that are triggering the changes. Direct actions led to activation of the
external factors. Rise and the fall of the economy rates, global competition and the other
economic factors are triggering the changes in Toyota. The changes in the education level,
customer expectation and values results in a change of demography. There are certain
technological changes brought in the automobile industry with new innovations and
development that bring changes and impacts the decision making of the organization (Burn and
Houston, 2015).
INTERNAL TRIGGERS THAT ARE DRIVING THE CHANGES
 The appointment of a new head in Toyota
 The top management dissatisfaction with their current positions
 Increasing conflicts between the management and employee (Hayes, 2018)
 The movement of the system to highlight the interrelationship within the subsystem of
company
17

 The support of the management for implementing the new methods in Toyota
All the favourable that are driving change in the Toyota and its decisions making are analyzed
by the Force Field analysis along with the forces that are against net changes. Forcefield
analysis helps to perfume the plan once the decision is made and identifies the changes that are
required for the organizational improvement (Dawson and Andriopoulos, 2014).
18

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P5- APPLICATION OF DIFFERENT LEADERSHIP APPROACHES TO DEAL WITH
THE CHANGES IN RANGE OF THE ORGANIZATIONAL CONTEXT
Leadership approaches impact the people from the top management to the new employees
and the different approaches to leadership that are utilized within the Toyota to motivate and
inspire the employees includes the following-
Transformation leadership
This leadership requires a high level of communication from the managers to meet the
organizational goals and the leaders motivate the employees to improve their efficiency and
enhance their productivity with high communication and visibility. The big tasks are focused on
the leaders and small tasks are delegated to the team (Bottomley, et al. 2014).
Transactional leadership
Under this style, the leader of the Toyota receives some tasks and provides rewards or
punishment to the team members based on their performance. The team members and the
manager’s together set the predetermined goals which are being agreed by employees to
accomplish the goals (Breevaart, et al. 2014).
Democratic leadership
This is also known as the participative style in which the input of the team members and the
peers are being valued but the final decision is made by the participative leader. The leaders
motivate and boost the employee morals to make a contribution in the decision making and
when the changes are implemented in the Toyota the leaders make changes accepted by the
employees within a short period of time (Lasswell, 2017).
Autocratic leadership
The managers of the Toyota alone make the decisions of the company without taking others
inputs and have total authority which can be imposed on others. The decisions of the
19

autocratic leaders cannot be challenged and it benefits the employees who require close
supervisions (Iqbal, et al. 2015).
20

M4- EVALUATING THE EXTENT UP TO WHICH THE LEADERSHIP APPROACHES
CAN DELIVER THE ORGANIZATIONAL CHANGE AND EFFECTIVELY BY
APPLYING APPROPRIATE MODELS AND FRAMEWORK
In order to deliver the organizational changes in Toyota, the different leadership approaches
can deliver the organizational change by the use of the following models and framework-
Table 2- Leadership Approaches
Leadership Approach Styles in phrase Impact of style on the
organization
When to use
Authoritative Come with me It mobilises
employees towards a
particular vision
When a new vision is
a change is required
and a clear direction
is required
Coaching Try this new thins Develop the
employees for the
changes in future
(Dopson. Et al. 2016)
When there is a need
to help in the
employee
performance
improvement and
develop long-term
strengths
Democratic What do you think? Forges consensus
through the
participation
To build the
consensus or buy-in
and to get valuable
input from employees
Applying the particular leadership approach depends on the situation which is required by the
change and based on the need of the employees that if the change is required in the Toyotas
and if the employees resist the changes. The leaders can make use of one leadership approach
21

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based on the situations and driven forces along with the resisting forces of the changes must be
considered by the leaders along with the culture of the Toyota (Lasswell, 2017).
22

CONCLUSION
Changes that occur in any organization play an important role in the success of the
organization. In this assignment, the changes in the two famous automobile companies namely
the Toyota and BMW have been compared and the internal and the external factors that are
driving the changes in the organization are also evaluated. There are certain barriers that are
hindering the changes the Toyota are evaluated. Lastly, the different types of leadership styles
and approaches that can be used in the Toyota to deal with the different changes are
described.
23

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3. Thompson, J.D., 2017. Organizations in action: Social science bases of administrative
theory. Routledge
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Cengage learning
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Change, Online available at https://channels.theinnovationenterprise.com/articles/how-
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The management of change in public organizations: A literature review. Public
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Social Responsibility and Environmental Management, 22(1), pp.32-44
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for business, government and civil society. Routledge
24

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13. Reason, J., 2016. Managing the risks of organizational accidents. Routledge
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25

27. Breevaart, K., Bakker, A., Hetland, J., Demerouti, E., Olsen, O.K. and Espevik, R., 2014.
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Understanding and Leading Change: A Comparative Analysis of BMW and Toyota

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