An Analysis of Leadership and Management in Toyota's Operations Report

This report provides a comprehensive analysis of leadership and management within Toyota, a multinational automotive manufacturer. The introduction defines management and operations management, emphasizing the crucial roles of leaders and managers. The report focuses on Toyota, examining its organizational structure, the roles and characteristics of leaders and managers, and a comparison between them. Task 2 delves into the roles of leaders and managers in different situational contexts, such as implementing changes and resolving conflicts, and explores various leadership theories and models like situational, system, and contingency leadership. Task 3 examines Toyota's approaches to operations management, including production, quality control, and supply chain management. The report concludes by assessing the impact of operational management and decision-making, offering recommendations for improvement. This report highlights Toyota's strategies for maintaining efficiency, productivity, and achieving its business objectives, emphasizing the importance of adaptable leadership and effective management practices.

Management and
Operations

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1) Different roles and characteristics of a leader and manger...................................................1
The basic characteristic which is seen in leader is they have moral courage and do not fear of
speaking out their mind...............................................................................................................2
TASK 2 ...........................................................................................................................................4
P2) Role of leader and manager in different situational context.................................................4
P3) Different theories and models of leadership.........................................................................5
TASK 3 ...........................................................................................................................................6
P4) Approaches to operation management ................................................................................6
P5) Importance and value of Operation management ...............................................................8
TASK 4 ..........................................................................................................................................9
P6) Impact on operational management and decision making ...................................................9
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Management is a process of getting people together to accomplish and achieve desired
goals and objectives by properly coordinating and integrating all available resources effectively
and efficiently. Operations management is that area of management that is concerned with
designing and controlling the whole process of production and operations (Boyd, and Dougherty,
2016). Mangers and leaders plays a very vital and crucial role in proper operation management.
For this assignment, Toyota company is selected which is a Japanese multinational automotive
manufacturer having its headquarter in Aichi, Japan. This report includes definition and role of
mangers and leaders in different organisational situations. Evaluation of strengths and weakness
of different approaches of leadership are also included this project. This assignment also
comprises key approaches of operations management and importance of operations management
in achieving business objectives. At last, factors of business environment that impact operational
management decisions making are also included in this report.
TASK 1
P1) Different roles and characteristics of a leader and manger
Background- Toyota Motor corporation is a multinational automotive manufacturer of
Japan founded by Kiichiro Toyoda in 1937. In 2018, it was sixth largest company in the world
on the basis of total revenue and is the leader of sale of hybrid electric vehicles (TOYOTA. 2019).
Toyota's corporate structure consists of around 364,445 employees and its management structure
is based on divisional organisational structure to conduct better control and monitor on
employees. Management structure of Toyota is influenced by its various business operations in
world which support businesses goals and strategic directions. Toyota's management and
organisational structure has three main characteristic that includes Global hierarchy, geographic
division and product based divisions. Divisional organisational structure provides a greater
degree of flexibility and makes leaders and manger more capable to speedily respond issues and
to provide higher quality product (Toyota’s Organizational Structure: An Analysis, 2019).
Operations management plays a important role in success of an organisation through
enhancing overall probability and productivity. Mangers and leaders plays a vital role in setting
objectives and targets and both of them are equally responsible for timely achievement of goals.
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Leader- These are the persons who lead, guide and command a group of person for
inspiring or motivating them for achievement of target and goals. Leaders have an effective
communication skills which provides them influencing ability to bring new ideas and
innovations in an organisation through influencing and convincing team members and
workforce.
Manager- They are the individual who are responsible for managing and controlling all
the prevailing task, activities and operations in an organization. Managers plays a important role
in allocating and distributing work among employees and are also responsible for timely
completion of work and achievement of targets.
Role of leader
 to influence the action of employees towards achieving organisational goal.
 To motivate and guide employees through providing tamely training and building morale.
Role of manager
 manger plays a important role in ensuring proper and timely functioning of employees
and departments
 manger also define and fix the role and responsibility of all employees and staff.
Characteristic of Leader
The basic characteristic which is seen in leader is they have moral courage and do not fear of
speaking out their mind.
 Another character of leaders is that they are optimistic and always be hopeful towards the
best outcome.
Characteristic of Manager
 Managers are good in communicating themselves in front of their team members.
 They are good in time management and always complete their work within deadlines.
Comparison between leader and manager
Basis Leader Manager
Characteristics  The main characteristic
of leader is influencing
 Mangers of Toyota are
more focused towards
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and motivating
employees for
achievement of
organisational goal and
target. Leaders of
Toyota plays a
important role in
inspiring its workforce
(Leadership v/s
Management, 2019).
 Leaders of Toyota are
more risk takers and
always motivates
employees for
developing new ideas
and creativity while
performing there day to
day task.
setting objective and
goals which are most
profitable for whole
organisation.
 Mangers of Toyota are
little conservative and
likes to avoid
unnecessary risk to
ensures successful
functioning of
organisation with
minimum uncertainty
and risks.
Role  The main role of
leaders in Toyota is to
create a long term
visions and also
motivate employees for
improving their skills
and creativity.
 Leaders of Toyota play
vital role in providing
directions and guidance
to employees through
proper communication
channel which reduce
 Mangers of Toyota
plays a important role
in controlling and
managing all the
operations of
organisation for
achieving vision and
targets of organisations
(Eraki, 2015).
 Manger describes and
fix role and
responsibility of all
employees and staff to
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chances of conflicts
and confusion.
reduce the chance of
conflicts between .
Thus, both leaders and mangers are an important part of organisation who are responsible
for meeting objectives ad targets of organisation and ensure success and future growth.
TASK 2
P2) Role of leader and manager in different situational context
Both mangers and leaders have a crucial and vital role in increasing operational
efficiency and ensures production of goods and services with minimum cost. Mangers and
leaders make use of different styles and theory for ensuring uninterrupted productions through
properly handling different situation thus, facilitates improvement in productivity and
profitability. Some of the role and functions used by mangers and leaders of Toyota in different
situations are explained below:
Implementation of changes- Every organisation brings timely changes for betterment
and future expansion, but change is a complex process which require a deep research and study
to understand the positive and negative implications of change on organisation (Fan, Liu and
Zhang, 2015). Mangers of Toyota are responsible for analysing the need of change and also
evaluate the benefits and drawbacks of changes for organisation. Mangers make use of Scientific
management theory to analysis and synthesis the complete workflow of change and to improve
the economic efficiency and labour productivity. Leaders are responsible for proper
communication of change among employees and team members for proper implementation and
execution of change. Use of strategic leadership approach is made by leaders of Toyota for
influencing employees and team members for better and effective implementation of change.
Conflicts resolutions- In an organisation, large of number of employees work together
who are having different individual goals and targets thus, it is obvious to have conflicts and ego
fights. It is the responsibility of mangers and leaders to reduce the chances of conflicts at
workplace. Mangers of Toyota makes clear plans and strategies which properly shows role and
responsibility of each employees thus, reduce the chances of conflicts (Han and et. al., 2017).
Use of behavioural management theory is made by mangers of Toyota to understand the mindset
and behaviour of employees and to assign work to them as per their skills and interest. Leaders
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of Toyota are also making efforts to reduce the conflicts. They make use of situational
leadership to clearly understand the reasons of conflicts and try to convince all the related party
to reach the most suitable solution. Leaders also plays a important role in keeping a balance
between interest of employees and overall objectives of organisation.
P3) Different theories and models of leadership
A leader is a persons who creates inspiring vision for future through motivating and
inspiring people for better performance. Leaders are responsible for bringing coordination and
collaborations between different skills of labour and other resources. Leaders of Toyota are
making use of different leadership styles to maintain team spirit and to improve efficiency of its
employees. These leadership theories used by leaders of Toyota are explained below with their
advantage and disadvantage:
Situational leadership theory -Under this leadership style, different approaches are used
by leaders to coordinate and influence work of employees on the basis of current situation and
prevailing circumstances. This approach is useful for leaders of Toyota to adopt the most suitable
leadership style as per current situation which properly fits and suits the attitude and behaviour
of employees which is helpful in making them for more efficient and productive (Idris, 2016) .
Advantage Disadvantage
It provide most flexible approach of leadership
which can be easily modified or changed
according to current circumstances and also
provides a better coordination between leaders
and employees through establishing good
relationships.
Random change in leadership style can create
a condition of chaos and confusion in mind of
employees which makes it more complex and
difficult to work properly and efficiently.
System Leadership – It helps in creating a work environment where people at different
level can work more productively to best of their potential. Leaders of Toyota makes and
implement sound human behaviour and principal to predict nature of employees for properly
making and implementing organisational strategy which will lead to increase in efficiency and
productivity of employees.
Advantage Disadvantage
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This leadership style is most useful in
establishing a balance and coordination
between individual's interest and
organisational behaviour through
understanding the nature of employees thus,
helpful in meeting the expectations of both
organisation and employees.
It is difficult and not always practical to
coordinate the benefits and objective of all the
parties thus, increases the chance of chaos if
interest of any particular group is not met or
fulfilled (Ma and Sun, 2012).
Contingency Leadership - this leadership strategy states that effectiveness of leadership
is contingent not only with leader's skills or style but, depends on how well it is matched with the
prevailing situation. It is a two fold leadership style under which Leaders of Toyota first analyse
the prevailing situation and after that efforts are made for motivating employees.
Advantage Disadvantage
It facilities effective planning for workforce
and helps in developing a leadership chart to
analysis the skills and efficiency of leader.
For this, highly efficient and skilled leaders are
required for properly analysing a prevailing
situation.
Recommendation
It can be evaluated that mangers and leaders plays a important role in motivating and
directing the employees for achievement of better results as mangers prepare plans and objective
and leaders communicate it with employees which ensure timely achievements of targets.
Leaders and mangers of Toyota are highly skilled and performing their roles and responsibility
properly as a result Toyota has achieved a very good brand image (Nayak, 2015). It can be
recommanded that mangers and leaders should make use of more flexible approach to
understand attitude and behaviour of employees more properly so that, better efforts can be made
to make employees more productive and efficient.
TASK 3
P4) Approaches to operation management
Main operation of Toyota are as follows :
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Production- This operation is responsible for production of best quality care and other
products. Mangers are responsible for monitoring the quality of product and they ensures that the
product delivered by them must fulfil the demand and needs of customers and provide them
maximum amount of satisfaction. Mangers also provide timely training to employees to improve
their skill and talent.
Marketing- Marketing department is responsible for promotion of sales of proctor and
also develop better relations with customers. Mangers of Toyota are making use of different
marketing strategy to make customers aware about feature of its product. Timely market research
is also conducted to evaluate the taste and preference of customers.
Use of various management approaches are made for conducting effective operation
management to improve overall performance of an organisation. Theses approaches are useful in
reducing wastage of resources and ensure uninterrupted production process and other operation.
The different approaches of operation management used by Toyota and the role performed by
mangers and leaders are described below:
TQM- It is a tool used by management for bringing quality discipline into culture and
activities of an organisation which ensures continuous improvement in performance and
efficiencies of different task. Mangers of Toyota act as a facilitator and assist employees for
implementing TQM. Leaders are responsible for moulding TQM philosophy and principles
within its departmental operations and also develop and deliver necessary training and
development programs for employees for proper implementation of TQM at all stages (Role of
leadership in TQM: An Analysis, 2019).
Six Sigma- It is statistical based, data driven approach for continuous improvement
through eliminating all kinds of defects in a product, process or service (Plesser and et. al.,
2014). Mangers of Toyota creates and foster an environment that develop a base for employee's
successes through clearly defining the roles and responsibility of employees which reduce the
chances of confusion. Leaders of Toyota always make use of effective communication channel to
properly deliver this information to employees about their different role and responsibility to
eliminate the chances of mistake and defects in any product or task thus, creates a much
productive and efficient workplace.
Lean principals – it is systematic method orientated by Japanese manufacturing industry
for minimizing amount of wastage in production process. This principal keeps a check on
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wasteful activity and expenses thus, helps in proper planning to eliminate unnecessary steps and
activities. The manger of Toyota is responsible for optimizing the production process through
properly defining and designing the production process with lean principles to improve the
whole process and techniques. Managers of Toyota are responsible for monitoring day to day
operations to ensure that production targets are met and all the changes for improvements are
properly implemented and executed. Leaders are also responsible for motivating employees for
improving their skills and creativity to reduce the amount of wastage (Tristancho and Gutiérrez,
2012).
P5) Importance and value of Operation management
Operations management is concerned with managing and controlling different operations
of an organisation to meet its objectives. Main aim of operational management is to ensure that
high quality products are manufactured and served by an organisation. Importance and value of
operation management for Toyota can be seen through following explanation:
Improving overall productivity: Operation management approach reduces amount of
wastage through proper implementation of lean principal thus, increases overall productivity of
an organisation. Toyota has implemented operation management approach in its organisation
thus, its productivity has also enhanced which makes it a leading organisation of world.
Enhancing quality of product – Use of operations management approach also helps in
improving quality of product. TQM and six sigma are used by Toyota for continuous
improvement in its operations and it also reduces the chances of defects in product thus, provide
better goods to customers which improves customer satisfaction and sales of organisation.
Reduction of cost: Operation management plays a crucial rule in reducing the cost of
production and other operations through eliminating wasteful activities. Operation management
monitors, controls and mange different operation of an organisation thus, reduce all unnecessary
expenses. Use of operation management techniques has made Toyota more cost effective thus,
its profitability has increased which has made it world's leading organisation in terms of earning
revenue (Wang, Jie and Abareshi, 2015).
Thus, it can be evaluated that operation management plays an crucial role in improving
productivity, reducing cost of production and meeting customers needs which will ultimately
increase the overall sale and productivity of an organisation thus, facilitates achievement of goals
and objective.
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Leaders of Toyota can make use of management and leadership approaches to promote
better work culture in organisation. Motivation and guidance are two important tools for
improving skills and efficiency of employee. Use of operation management techniques ensures
achievements of targets with minimum possible cost and different approaches of leadership like
situational approach and contingent approach makes it easy for leaders to analysis the situation
and influence the mind and attitude of employees for timely completion of work and for
achievements of targets (Wen-chao, Fan and Wen-wen, 2012).
TASK 4
P6) Impact on operational management and decision making
There are different factors within business environment that creates a significant impact
on decision making by leaders and mangers which are explained below :
Internal factors
Stakeholders – The person who gets affected by business operation directly or directly
are known as stakeholders. It includes many individuals and authorities like, debtors, creditors ,
directors, government agencies, employee, shareholders,customers, society, etc.
Corporate social responsibility – CSR is a business process which makes an organisation
socially accountable for its customer, stakeholders and all other individuals of society. A
company which is performing or operating its day to day function in a such way that enhance
cultural value of society and reduce negative impact on environment is particularly engaged in
CSR activity (Williams, 2015).
Toyota is highly concerned towards its stakeholders and formulate a number of strategies
for fulfilling its corporate social responsibility. It make use of sustainable development strategy
to keep a balance between CSR and interest of stakeholders. Mangers of Toyota provides job
security and career development programmes for its employees. Leaders keep on motivating its
employees for delivering best products to its customers. Various community development and
support programme are organised by mangers and leaders of Toyota to fulfil their responsibility
towards society (Toyota’s Stakeholders: A CSR Analysis, 2019).
External factors
For analysis of external factors, use of PESTEL analysis is made which is described
below:
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Political – In japan there is constitutional monarchy where emperor is the head of a state.
Japan maintain good relations with all other nations and thus, provide a stable political
environment. This stability in political environment makes it easy for business organisation to
perform its operations more easily. Thus, manger and leaders are not facing much trouble in
performing their roles and responsibility and in making day to day decisions. Mangers of Toyota
makes and frame decisions as per current situation of business environment and leaders make use
of most efficient communication channels to deliver and provide all relevant information to
employees regarding political frameworks and policies of japan (PESTEL analysis of Japan,
2019).
Economical – Japan is having 2nd largest economy of Asia i.e. having a very good
economic conditions which offering various opportunities for business organisation. This
positive economic condition of japan ensures mangers of Toyota of gaining a good amount of
profits and also reduce the chances of economic fluctuation. Thus, mangers can take firm
business decisions without having much threat of business failure. Leaders can also make use of
incentives and rewards for motivating its employees for better achievement of targets (XIANG,
Chen and Zhang, 2013).
Social – Shintoism and Buddhism are two main religion of japan and it is 10th most
populated country of world providing a large customers for organization to sell its product. Japan
is having higher literacy rate and its society is mainly tends towards personal car. Mangers and
leaders of Toyota makes decisions which yields higher productivity to meet the demand of large
population of japan. Production department of Toyota needs to become effective to fulfil the
demands and to keep a balance between demands and supply.
Technological – Japan is most technological advanced country of world and Japanese
people are well known for its creativity and innovation. This has increased pressure on mangers
and leaders of Toyota as they have to focus more on technology advancement to remain ahead of
its competitors. Mangers of Toyota remain aware about latest technology and innovation and
makes timely changes in its business strategies and plans to remain up to date. Leaders of Toyota
plays a important role in motivating its employees and workforce for improving their skills and
talents to meet the random changes in technology.
Environmental - Japan is a very clean and environmental responsible nation. Thus,
mangers and leaders of Toyota are responsible for proper waste management. Mangers needs
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make strategies and decisions which are based on sustainable development. Leaders can makes
effort for influencing and guiding employees to make use of such practices which are more
environmental friendly (Yun and et. al., 2018). Toyota must use an production process that will
emit or produce minimum amount of carbon dioxide and other harmful substances.
Legal – Proper implementation of employment rights and labour laws and acts is
mandatory in Japan. Thus, mangers of Toyota needs to provide all employment rights to its
employees like timely leaves, proper incentives, etc. Leaders plays a crucial role in reducing or
eliminating all kind of discriminations at work place. Staffing process of Toyota is highly
effected by legal system of japan as they should provide proper invectives and work agreement
to employees.
Recommendations
For enhancing the performance of Toyota, various measures for improvement can be
adopted. Effective use of TQM and six sigma is recommanded for improving quality of product
and for reducing chances of defects. Lean principle should be properly used by Toyota for
reducing wastage of raw material and other resource during its production process.
CONCLUSION
From this assignment, it can be concluded that operation management is used for
achievement of organisational goal and to increase productivity and profitability. Manger and
leaders plays a crucial role in achievement of targets. Different adverse situation arising in day to
day operations are handled by mangers and leaders by making use of different approach and
styles. Their Different approaches of leadership having different strength and weakness.
Approaches of operation management are used like TQM, lean principles, etc. to improve the
quality and to reduce the wasteful activity in production process. At last it can be concluded that,
different factors of business environment create significant influence on decision making.
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Online :
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Toyota’s Organizational Structure: An Analysis. 2019. [Online]. Available through:
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Toyota’s Stakeholders: A CSR Analysis. 2019. [Online]. Available through:
<http://panmore.com/toyota-stakeholders-csr-analysis>
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