Leadership and Management Roles in Toyota's Operational Functions

This report examines the roles and functions of leaders and managers within Toyota, a prominent automotive company. It defines and compares the characteristics of leaders and managers, highlighting their differing approaches to tasks and employee relations. The report further explores how these roles apply in various situational contexts, such as conflict resolution and rapid change, using examples from Toyota's operations. It then delves into relevant management theories, including the scientific management theory, Theory X and Y, and Fiedler's Contingency Model, illustrating how these theories can be applied to Toyota's organizational structure and management practices. The analysis provides insights into how Toyota can leverage different leadership and management styles to achieve its goals, manage its workforce effectively, and adapt to changing market conditions.

Management and
Operations

Table of Contents

INTRODUCTION
In an organization, work or task which is conduct is know as operations and it involves
several application of principles as well as theories in order to achieve goal in appropriate
manner. When an organisation start and run their business they have to conduct various activities
related to management and operations. Management is related to process of organising and
coordinating business activities and functions in order to attain goal and objective in effective
and appropriate manner (Balasubramaniam and et.al., 2016).Organization taken for this
assignment is Toyota which is established by Kiichiro Toyoda in year 1937. It’s headquarter is in
Toyota city, Aichi, Japan and they are dealing in automotive industry. There are several divisions
of respective company such as Toyota, Lexus, Ranz, TRD, Scion, Gazoo Racing and many
others. They serve their products and services at worldwide marketplace like Australia,
Bangladesh, Europe, India, Indonesia, Japan and many others. Topics covered in this assignment
are difference role and functions of leader and manager in operational function in an
organisation. Along with this it explain relationship between leadership and management in
context of different theories and models.
TASK 1
P1 Define and compare the different roles and characteristics of a leader and a manager
Toyota is a automotive company which was established in year 1937. There are various
products that are offered by respective company such as auto mobiles, luxury vehicles,
commercial vehicles, engines and many others. They offer their products and services at
worldwide marketplace. Services offer by this company are banking, financing and leasing.
Numbers of employees working in Toyota are approx 3,69,124. It is a world's leading auto
mobile company which designing and developing their products according to customers need
and demand with advance technology (Christopher, 2016). Its main objective is to attract more
and more customers and enhance their profitability and market shares.
Management structure adopted by respective company is hierarchy structure which helps
them in operating business operations and functions in effective and efficient manner at
worldwide level. In hierarchy structure work is conduct on the multiple level and it is seems as a
pyramid. In this superiors will direct and supervise their subordinates to conduct work in
appropriate manner. In context of Toyota decision is taking my management of company, who

are working in headquarter. Those employees who are working in different location follow that
this decision in order to work in effective manner. This will help Toyota in achieving their goal
and objectives in appropriate manner. Along with this respective company enhance decision
making authority and power of regional heads and business unit managers.
Definition of Manager:
Manager is a person within an organisation who is responsible for certain task, work,
group or project within a workplace. Employees or subordinate of a company report to the
manager regarding their work and responsibilities (Cordray and et. al.2015). Manager of Toyota
play various duties such as recruiting, preparing budgets, provide training to employees
according to requirement, prepare financial report etc.
Role of manager-
 Major role of manager in respective company is that they motivate their employees in
attaining goal and objectives in effective manner. This will also help employees in getting
rewards and appraisal.
Illustration 1: Toyota management structure
(Source:Toyota management structure, 2018)

 They also develop rules, policies and regulations which help management and employees
in conducting work and task in appropriate manner without any hurdle and conflict
situations.
Characteristics of manager:-
 Manager encourage their employees and motivate them with reward and punishment.
 They develop and maintain effective environment at workplace by developing rules,
regulations and policies.
Definition of Leader:
Leader is an individual in an organisation who takes whole responsibilities of project and
to completion work in effective manner. They also take responsibilities of their workers and
guide them how to conduct work in appropriate and effective manner. Duties of leader in Toyota
are they build trust between team, develop vision statement of project and many others.
Role of leader-
 They develop positive environment at a workplace so that employees feel motivated and
connected toward organisation (Evangelopoulos and et. al., 2016). This will also reduce
situation of conflict at a workplace.
 Leader of a company design and develop innovative and creative strategies which
encourage employees to work in effective manner.
Characteristics of leader:-
 Leader of a company motivate employees with promoting positive punishment at
workplace.
 A good leader is honest and self confident, which attract employees and inspire them.
Difference between manager and leader on the basis of their roles and function
Basis Manager Leader
Maintaining relationship
(Role)
At this manager who is
working with employees
attach less emotionally with
them.
Leader of a company attached
emotionally with employees
with whom they are working.
Working style (Function) Functioning style of a manager
is that they set goal and they
Whereas working style of a
leader is that they are decision

use mainly specific style of
conducting process.
maker according to situation
which company is facing and
they are flexible in adopting
any strategy and method.
Difference between leadership and management:-
Management Leadership
Management of Toyota company direct and
monitor employees that they conduct their
work in appropriate manner.
Whereas leadership style of Toyota is to
motivate and encourage employees to do work
in appropriate ways.
Management of company aim on believing in
conducting activities and things appropriate.
Leadership of respective company focus on
conducting right activities.
TASK 2
P2 Examples of how the role of a leader and the function of a manager apply in different
situational contexts
There are various major situations in which manager and leaders act differently to
conduct work in effective ways (Grahn and et.al., 2014). Some major situation in context of
respective company is mention below in context of this company:-
Conflict situation: It is a most common and disturbing situation which arises at a
workplace. There are various reasons behind its development such as discrimination due to
different cast, gender, salary, position, religion, values and many others. At this stage in
Toyota,if any conflict situation will arise between employer and employees due to some issues
then manager and leader try to resolve this in their particular and effective ways. Manager and
leader of respective company try to solve situation of conflict by using situational approach. It is
a leadership style which is used by manager and leader of an organisation to make decision and
solution according to different situation which is arising at a workplace. Such as if there is nay
conflict arise due to work time and another issue is discrimination. So when leader and manger
develop strategies they will develop it accordingly and separately which help them in

overcoming from issues. Role of leader and function of manger of leader in respective situation
is given below:-
 Role of leader in conflict situation at Toyota is that they identify and evaluate reason of
conflict in their team and they discuss to employees about reason and issues (Haimes,
2015). They will mainly identify root cause of issues and motivate and encourage
employees to resolve respective situations. By identifying root cause of issues leader able
to develop strategies accordingly and motivate employees how to resolve particular
situation in proper manner.
 Function of manager in conflict situation is that they will develop different rules and
regulation which help them in resolving conflict with in a workplace. They will discuss
about conflict issues with staff and make strategies, rules and policies accordingly. By
which they able to solve the problems in effective manner. Manger of a company develop
and creates respective things according to situation which help them in resolving conflict
situation in appropriate and effective situation.
Fast changing situation:- This refers to the situation when there is change occur on
regular basis. In which manager and leaders has to update there strategies and plans according to
situation which they are facing. In this situation manager and leader of Toyota company update
their strategies and plans on regular basis according to situations and issues. Which help them in
overcoming and facing situation in effective and appropriate manner. Role of leader and function
of manger of leader in respective situation is given below:-
 Role of leader in particular situation is that, they will motivate and encourage employees
to work in appropriate and effective manner in order to attain goal and objective in proper
manner. At this situation leader of a company conduct research and market evaluation
which help them in getting aware about situation and new trends. Then accordingly they
will develop strategies and plans.
 Function of manager in this situation is that they will develop strategies and plans which
employees will follow to attain goal and objective in effective and appropriate manner.
Manager of respective company develop production strategies and other related strategies
such as training and development plans, working process and many more. This will help
company as well as employees in conduction work in appropriate and effective manner.
Classical Theory-

Scientific management theory:- It refers to management theory which help in analysing
and improve workflow. Main objective and aim of this theory is enhancing economic condition,
production and activities are conduct by focusing labours and staffs. According to Frederick
Taylor employer not scroll there employees for small mistakes, they must encourage them to not
do same mistakes again. Superiors must understand there employees and place right person on a
right job which help them in conducting work in appropriate manner. This theory is mainly focus
on three aspects which are:
 Employer must focus on staff performance and how effective they are conducting work
to attain goal and objective.
 Superior of an organization or team must supervise and guide there employees so that
they accomplish their work in appropriate manner.
 Employer must motivate there employees by using various methods like guide them,
reward, appraise, arrange activities and many more.
This theory can be adopted by Toyota company in both the situation i.e. conflict as well
as fast changing because by this they able to assign work or conduct allocation of resources in
effective manner. Through this employees able to conduct work in appropriate way because they
get work according to their skills, knowledge and ability.
Behavioural Theory-
Theory X and Y:- This theory is develop by Douglas McGregor and according to him
there are two type of peoples in an organisation. One is who like to work and another one didn't
like to work. Staff who like to work are known as Theory Y and peoples who won't like work are
Theory X. Characteristic of both of them are explain below:-
Theory Y:
 These employees enjoy doping work and they are interested in achieving goal in
appropriate manner. They are self motivated employees and they are desire to conduct work in proper manner.
Along with this these employees are creative and like to take responsibilities.
Theory X:
 These employees dislike work and they feel boring so they avoid work, if manger want to
take work from these employees they have to force them to complete work in proper
manner.

 They are less creative and they always need guidance to conduct work in proper manner.
Moreover these peoples didn't like to take responsibilities.
In respect of Toyota company, they can adopt theory X and theory Y in situation of
conflict because by it respective company management able to develop strategies according to
both type of peoples which help in resolving conflict in effective and appropriate manner. This is
so because need and expectation of every individual are different due to which they required
different treatment accordingly.
Contemporary Theory-
Fiedler's Contingency model:- This theory is develop by Fred Fiedler and it will include
and predict various factors like style of leadership, relation among leader and employees, power
which is based on position of leader. Along with this it also include job or task structure of
employees and ability of different leader which help in attaining goal and objectives in
appropriate and effective manner. On basis of respective model if Toyota organization want to
achieve goal and objective in appropriate manner. They must consider various leadership traits,
principles, situational factors and develop appropriate combination between employer and
employees. Factors which is included in this theory are identify effective group according to
nature of work, power of leader to conduct work and many more.
To evaluate attitude of leader, Fiedler create and develop least preferred co-worker scale.
This scale include pleasant and unpleasant; friendly and unfriendly; rejecting and accepting; cold
and warm; tense and relaxed and many more. In this manager of a company ask to leader about
those persons and employees with them leader didn't like to work. According to Fiedler,
behaviour of a leader is based on situation and circumstances in respect of leadership. To
determine and evaluate favorability of leadership there are three factors which are relationship
between leader and employees, structure of task and power of a position on which a particular
person is on. This theory can be used by Toyota company in order to adopt fast changing
situation in effective and appropriate manner. This is so because by it they able to develop
strategies and plans in appropriate manner which help them in adopting changing situation in
effective and appropriate way.

P3 Different theories and models of Leadership
There are various leadership styles and approaches which an organisation can use to
conduct their operations and functions in smooth and effective manner. Some major of them
which is use by respective company is explained below:-
Situational leadership: This model is developed by Paul Hersey and Ken Blanchard. It is
mostly adapted leadership style because by it manager of Toyota company can plan their
decision and strategies according to the situations and issues which they are currently going
through (He and et.al., 2014).
Advantage-
 By using this style, Toyota is able to enhance their communication with staff which also
enhances their production. This help employer to design strategies and plan according to their working style and
situation.
Disadvantage-
 This strategy is time consuming and sometime manager face difficulties in managing and
operating issues and strategies.
By this leadership style Toyota manager able to develop strategies and plans in effective
manner that leads to achievement of goal as well as objectives in effective manner. This is so
because every situation or condition required different strategies and plans which help them in
attaining goal and objective in effective manner.
Contingency leadership: This refers to the leadership style theory which shows dependency of
how a leader matches their leadership method to particular situation and issues. This will help
respective company in conducting their work in effective and appropriate manner (Hugos, 2018).
This theory is effective because it fits in every situation or issues and by it manager can plan
better and proper situation.
Advantage-
 This theory can be used in each and every situation and issues by leader and manager of
this company. Through this there is enhancement in group performance and working styles of
employees at workplace.
Disadvantage-

 Practical implementation of this approach is difficult.
By adopting theory at respective company manager able to develop strategies and plans
in effective manner which leads to achievement of goal as well as objective in effective manner.
Along with this by adopting this manager of Toyota also able to adopt any strategy or plans in
proper way in order to accomplish work and attain goal.
System leadership: It refers to leadership style by which an organisation can create and
maintain situation at which every employee feel motivated that leads enhancement in work
productivity and efficiency (Christopher, 2016). This will help Toyota company in conducting
their work in appropriate manner in order to attain goal and objective in proper ways.
Advantage-
 By using this leadership style Toyota able to conduct their work in complex situation.
 By this employees feel motivated and conduct their work or task in appropriate manner
and through it they also able to adopt improvement in their workplace in proper ways.
Disadvantage-
 If manager and leader of respective company use this approach they not able to
differentiated between various systems.
By adopting this theory manager of Toyota able to develop and maintain appropriate
working environment through which employees get motivated and conduct their work in
appropriate as well as effective manner. By this respective company also able to attain goal and
attract customers in appropriate manner.
Manager and leader play an important in every company by conducting various activities
which help them in achieving goal and objective in effective manner. In other work both of them
is essential for company because by their help employees feel encouraged and motivated so that
they will conduct their work in appropriate and effective manner (Jacobs and et.al., 2014).
Manager of this company make various policies and rules which help them in avoiding conflict
and other problems. Leaders encourage employees and direct them how to do work in proper
manner. Recommendations for Toyota company to conduct their work in future is that they can
use more advance and digital techniques and tool which help employees in conducting work in
appropriate manner and in given time duration. By this they will feel motivated to achieve goal
and objective.

TASK 3
P4 Explain the key approaches to operations management
Toyota is well known and leading company in automotive industry which was founded in
1937 by Kiichiro Toyoda. They server there products and services at worldwide market. Toyota
company offer their products in various divisions that are Toyota, Lexus, Ranz, scion, TRD,
Gazoo Racing and Daihatsu (Marchington and et.al., 2016). Toyota products and services are
manufacturing various products like auto mobiles, luxury vehicles, commercial vehicles and
engines. They are also offering certain services such as banking, financing and leasing. Along
with this they are also manufacturing and selling machines related to textiles industry and
equipments of materials handling. For conducting business operations and functions in
appropriate manner this company use Six sigma model and lead principles. By which they able
to analysis market, motivate employees and also able to develop strategies which help in
enhancing business and profitability ratio. Key operations of respective company is
manufacturing vehicle with advance technology which is in new trends.
Their are various type of approaches which help an organisation to conduct their
operations and functions in effective manner (Penn and Pennix, 2017). There are two approaches
which is use by management of Toyota that is six sigma, total quality management and lean
principles. Explanation of both approaches in context of Toyota is given below:-
Six Sigma: It refers to process which is controlled, statistical based, data driven
approaches and it also leads to improvement on the continuous basis. By using this this company
able to identify issues and problems by which they can make plans and strategies accordingly for
improvement (Pundi and et.al., 2015). For using this, manager of Toyota conduct six stages that
is define, measure, analyse, improve and control. In define stage, manager identify need and
demand of customers or any issues which organisation is facing. In second stage which is
measure they measure all the issues and plan process to resolve it. In analyse stage Toyota
manager identify why that issue is occur at their workplace. At improvement stage managers
implement the plan what they create and identify that there problems is solve or not. At last stage
which is control the respective company manager try to maintain and control solution which they
adopt for particular issues. Six sigma is valuable for this company because by it they can identify
issues and problems which occur in a company. Along with this they able to increase
productivity and quality of work.