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.

Lean principles: It refers to procedure which is used by Toyota company to identify
need and demand of customers. Lean was originally created by Toyota to eliminate waste and
inefficiency in its manufacturing operations. By this manager of company able make plans and
strategies in effective and appropriate manner. There are 5 stages of lean principles that is
specify value, map the value stream, establish flow, implement pull and work to perfection. At
specify value stage manager of respective company identify need and demand of customers and
in second stage which is map the value stream they will evaluate that which product will enhance
profit of company and which is not. In establish flow stage information and new plan is
communicated and discussed with everyone to know every staff opinions on new product and
plan (Pundi and et. al., 2015). At implement pull and work to perfection stage Toyota implement
that strategy or launch that product into the market and then identify and evaluate whether it new
product is like by customers or not. Lean principles is important for company because by it
company able to minimise waste and conduct work in appropriate manner. Along with this they
able to enhance quality of production process.
Total Quality management:- It refers to the method which is use or adopt by an
organization to evaluate and determine quality of work or production process. By this manager
of a company able to achieve there goal and objectives in appropriate and effective manner by
fulfilling quality of work and production. Mostly respective model is use in various activities
such as determining and evaluation quality of employees work, production process of goods and
services and many more. To attaining this manager plan various activities which help in
enhancing quality of work such as provide training and development session to employees,
provide proper funding which help in goal in proper manner. In context of Toyota, when they
adopt particular appropriate they able to manufacture quality and appropriate products which
satisfy need and demand of product and services. By adopting total quality management process
they able to check and verify there production process at each and every step which help them in
producing products in appropriate manner. Along with this manager and leader of respective
company able to plan strategies accordingly which enhance there quality of production.
There are various operational function which is conducted within an organisation through
which a company is able to achieve goal and objective in effective and appropriate manner.
Some major key operations functions which is conducted by Toyota company is explained
below:-

Planning: Planning refers to activities and plan which is required to achieve certain goal
and objective. In this function manager of Toyota evaluate organisation need and then develop
objective accordingly (Narayanaswami and et.al., 2016). This help them in developing guidelines
and frameworks for employees, that what work they have to done and in what ways. It is role and
responsibilities of manager of this company that they must first understand situation and then do
planning of that things and issues. It help manager to do planning in effective and appropriate
way.
Organising: This process is refers to activities which is use to structure task and
activities in appropriate manner. In it manager of this company able to create effective
organisation structure and allocate resources to employees or staff to complete goal in proper
ways. It is role and responsibilities of Toyota manager that they understand employees and their
requirement so that able to allocate resources accordingly and effectively.
Controlling: It is important operation function which is conduct by a manager. In this
manager of respective company control and evaluate production process and compare standard
quality to actual quality. If they find any issues and problems they will do improvement and
change in plan and then conduct process so that they able to attain objective in appropriate
manner.
P5 The importance and value of operations management
To improve effectiveness of operation and functions, an organisation can use various
approaches and method which help them in conducting business in appropriate manner.
Management and leadership approaches which is use by this company are behavioural and
situational approaches. Which help them in conducting business operation and function in
appropriate and effective manner.
Behavioural Approach:
This approach is based on the behaviours and ability of an employees or staff who will
conduct work and task within a work place. When a manager develop or create strategies and
plans according to employees behaviours and skill then employees able to do their work in more
appropriate manner. Which help an organisation in attaining goal and objectives in effective
manner. Manager of Toyota use this approach and allot work according to the Skills and ability
of employees. They also plan rules, strategies and policies according to behaviours so that every
employees feel connected to Toyota.

Situational Approach:
At this stage, manager of an organisation plan their strategies according to situation and
circumstances which help them in dealing with situation in appropriate and effective manner. So
manager of Toyota plan their strategies according to difference situation and circumstances
(Christopher, 2016). Which help them in understanding situation in proper manner through
which they able to solve it in appropriately. Such as for conflict situation manager plan different
strategy and for reward they plan another strategies.
Importance and value of Operation Management:-
Operations management help an organisation in various ways by which they able to
conduct work and attain goal in effective and appropriate manner. Some major importance and
values of operation management in respect of Toyota are mentioned below:-
 By this employees or staff of respective company able to enhance there performance and
quality of work in appropriate manner.
 By this respective company able to manufacture or produce quality and innovative
products which help them in gaining competitive advancement at market place.
 Toyota able to identify and analysis market demand and need which help then in
enchanting there process. Along with this they able to attain goal and objectives in
appropriate and effective manner.
How leaders and managers can improve efficiencies of operational management to
successfully meet business objectives:
In order meet succession of business in effective and appropriate manner Toyota needs to
adopt various strategies and plans through which they can improve operational management in
effectively and efficiently. For this manager and leader can conduct various activities or plans
such as train employees in appropriate way so that they conduct work in proper way. Along with
this they also need to monitor working or producers so that they can identify any issues at initial
stage and resolve it in effective manner within the time.
TASK 4
P6 Factors within the business environment that impact upon operational management
Decision making of a leader and manager get affected by various factors. It may be
internal or external. These factors affect a decision making as well as business operations and

functions (Punyateera and et. al., 2014). Major internal and external factors which influence
decision-making of leader and manager at Toyota company is mentioned below:-
Corporate culture:- It refers to behaviour and belief of an organisation which help in
determine how employees and management of company interact to each other and how they
handle business transactions which occur outside. So this responsibilities of manager and leader
of respective company is that they must develop and maintain appropriate culture in an
organisation which motivate employees in conducting work in appropriate and effective manner.
Corporate social responsibility:- It refers to the activities which is done by an
organisation in order to do welfare of society for this company conduct various activities such as
donate money, conduct activities for social welfare, develop schools and many more. When
Toyota conduct corporate social responsibilities activities they able to attract more employees.
Along with this they also enhance there goodwill which directly increase profitability ratio and
customers bases of respective company.
Sociological factors:- It refers to factors which is related and connected to society and it
include various dimension such as customs, mores, values, characteristic of demographics and
many other. If there is any change or improvement occur in any of these dimensions, managers
has to take decisions accordingly. Which help them in conducting business in effective manner.
So manager and leader of Toyota company conduct research on regular basis and plan strategies
according to requirement and need of the situations. This factor also influence decision making
of a manger and leader. Such if treads get change then manager of this company design product
and services accordingly.
Economic factors:- It refers to factors which is related to economical factor of a
company as well as country. It include dimensions such as inflations, interest rate,
unemployment rate, taxation rate and many more (Balasubramaniam and et. al., 2016). When
there is any change occur in economic condition of company and country, manager and leader
has to develop decision accordingly. Which help them in gaining competitive advancement and
attracting customers because by this they able to design products according to situation and
purchasing power of customers. Manager of a company design there decisions and strategies
according to economic conduction of company as well as customers. Such as if economic
conduction of customers is not good company has to design product accordingly.

Political factor:- This factor is include various factors like stability of risk, risk of
military invasion, regulation of trade, laws related to pricing, wage regulation, anti- trust law and
many more. This factors influence business operation's and functions of a company. So manager
and leader of respective company develop and design there decision accordingly which help
them in conducting business in international market in effective manner.
Technological factor:- In this there are various factors include such as current and new
technology, cost structure cost, recent trends in technology, impact of technology on production
process and many more. If an organisation adopt this factor in effective manner they able to
conduct production process and other operation in effective and appropriate manner. So manager
and leader of Toyota conduct analysis of market on regular basis by which they get updated
about recent technology which help them in producing and conducting products and services.
Corporate Value:- It is also known as corporate value or core value of an organisation. It refers
to values and belief on which a firm is based as well as they also conduct activities in same
respective manner. By adoption this Toyota able to develop guidelines and principles on which
working of respective company are based as well as their employees also conduct work in
appropriate manner according to guidelines.
Corporate Ethics:- It refers to ethics which can be in professional form and applied by an
organization in order to conduct work in effective and appropriate manner. By this respective
company able to develop as well as maintain guidelines and framework which help them in
conducting work in effective and appropriate manner.
By analysing above situation, it can be conclude that there are various operation and
function which are conducted in an organization in order to attain goal and objectives. For
which company use various type of approaches and methods so that they operate their work in
proper manner. The functions and operations of a business get affect by various external factors
such as cultural, technological, and many others. Recommendations which can be given to
Toyota is that they can use advance digital technology in their products and production process.
By which they able to attract more and more customers. Along with this production process also
become simple and effective (Cordray and et.al., 2015). They can also design their products and
services according requirement of customhouses. To improve services they can connect with
their customers thorough digital media like Facebook, twitter, Instagram and many other.

CONCLUSION
Form the above discussed report, it can be concluded management and operations done
in appropriate manner help an organisation in running their business in effective manner. In
every organisation, manager and leader both are important because they play different role and
functions which is important. There is different between management and leadership style in an
organisation which help in conducting work in appropriate manner. Their are various key
operation function which is conduct in a company and their are various approaches to conduct it
such as six sigma and lean principles. There are external factor which affect decision making of a
manager and leader which help them in encouraging and motivating. Their are management and
leadership approaches which is use by an organisation for successful running of operations. By
adopting effective approaches and method company can gain competitive advantage.

REFRENCES
Books and journals