Leadership, Management, and Operations Report: Toyota Analysis

This report delves into the leadership and management practices of Toyota, a multinational automotive manufacturer. It begins by differentiating between the characteristics and roles of managers and leaders, highlighting their functions in various business situations. The report then explores different leadership theories and models, such as situational, contingency, and systems leadership, and how they are applied within Toyota. Part 2 of the report focuses on operations management, explaining key approaches like Total Quality Management and their impact on achieving organizational objectives. It also examines the role of leaders and managers in implementing these approaches. Finally, the report analyzes the factors within the business environment that influence the decision-making processes of Toyota's leaders and managers, offering a comprehensive overview of the company's management and operational strategies.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................4
P1 Differentiate between characteristics and roles of manager and leader ................................4
TASK 2 ...........................................................................................................................................5
P2 Functions of leaders and managers in various business situations .......................................5
P3 Leadership theories and models ............................................................................................6
CONCLUSION ...............................................................................................................................6
PART 2 ...........................................................................................................................................7
INTRODUCTION ..........................................................................................................................7
TASK 3............................................................................................................................................7
P4 Explain the key approaches to operations management and role of leaders and managers ..7
P5 Operations management value in attaining objectives of business .......................................9
TASK 4 ...........................................................................................................................................9
P6 Factors in the business environment that affect the decision making of leaders and
managers ....................................................................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Operations and management is one of the most important function of any organisation
and it is the administration of various business practices. These are helpful in increasing
efficiency and productivity of the company. The main aim of operation management is to
convert materials as well as labour into services and goods in order to enhance profits. The
company taken into consideration while doing this file is Toyota. This is a Japanese
multinational automotive manufacturer which has headquarters in Aichi, Japan. This company
has various operations that are operated effectively for attaining organisational objectives and
goals. The following report consists of differentiation between characteristics of managers and
leaders. The role of managers as well as leaders in different business situations are discussed.
There is discussion of various leadership models and theories in this report in context of Toyota.
TASK 1
P1 Differentiate between characteristics and roles of manager and leader
Introduction to Toyota
Toyota Motor Corporation is an automobile manufacturer which deals worldwide and its
headquarter is located in Toyota, Aichi, Japan. The company was founded in 1937. Toyota
motors has incorporated five brands which are Toyota itself, Hino, Daihatsu, Ranz,and Lexus.
Toyota is also listed on various stock exchanges around the world such as Tokyo Stock
Exchange, London Stock Exchange and New York Stock Exchange. It started from a small
number of around 4000 units of production in year 1937 since then the company has grown
enormously and produces around 5 million units now only in Japan. Its production and sales
worldwide have also grown over the years. Other than automotive industry, Toyota is also
indulged in philanthropy, higher education, robotics, aerospace,agricultural biotechnology.
In order to attain goals and objectives in an organisation within a given time period, it
becomes essential for the management to put in all efforts for development of company. Leaders
are the one who take lead in team and give orders to team members to fulfil goals. Whereas, it is
the duty of managers to keep employees under check. Administrating and controlling employees
is duty of a manager.

ROLE OF LEADER:
Taking Decisions: One of the most important job of a leader is to study market closely
and then take decisions which will benefit the firm. Along with it, manager requires to be good
at communication skills so that goals and decisions taken by manager can easily be
communicated to employees of organisation. In case of Toyota, leaders at company are
competent enough to take decisions and to communicate them to rest of the employees as well.
Guiding Employees Towards the Decision Taken: Another role of leader after setting up
goals and communicating them is to also explain the path to attain them. It is very important for
employees to know the clear idea of what they would be doing in order to attain those
objectives. When looking into Toyota , it is found that leaders of company are well prepared with
a road map to attain their objectives. Along with goals, they also communicate the ways in which
they must be achieved.
ROLE OF MANAGER:
Resource Allocation: Due to scarcity of resources and unlimited wants, it becomes
necessary in an organization to use the available resources carefully. It is therefore an important
part of a manager's job to allocate all the resources available with them amongst various
department in organisation (Battini, and Et.Al. 2016). When referring to Toyota, they follow lean
production method due to which wastage of any resource is not tolerated. The managers in
company very effectively and efficiently manage all available resources.
Characteristics of leader:
Communication skills: Communication is a very important skill which a leader must
posses. If a leader could not communicate his thoughts well it will be impossible for the firm to
attain its objectives. The leaders at Toyota are very good with their communication skills. They
efficiently deliver the goals and objectives to employees and also answer their queries if
required.
Self Motivated: In hard times, when company is going through a rough phase it is very
important for a leader to be self motivated. If leader is not self motivated, it becomes difficult for
them to motivate others. Also employees start giving up when they see their leader demotivated.
All leaders at Toyota are self motivated who also take various steps required in order to
motivate their employees.

Characteristics of managers:
Time management: One of the most important trait a manager needs to have is time
management. Along with goals and objectives, a set time frame is also provided to managers in
which they need to attain those objectives. Managers at Toyota have proved to attain their
objectives within given time. This proves their competency in auto mobile sector.
Difference between Leader and Manager:
There are various elements which is the base of difference among a leader as well as
manager (Choi, Cheng, and Zhao, 2016). Some of these difference are going to be discussed as
follows:
Dimensions Leader Manager
Goal Focused It is the responsibility of a
leader to create objectives of
the company based on his
knowledge and skills. The
leaders of Toyota remain
committed to their goals and
objectives,which help them in
leading the organisation
towards its goals.
Top level authorities delegate
the duties and goals to
managers in an organisation.
Managers at Toyota make sure
they work towards the goals
communicated by top level
management.
Decision Leader setup the goals for
organisation and makes sure
that all those goals are clearly
communicated within the
organisation. Further, if any
query arises within employees,
it is the utmost duty of leader
to counter them.
A manager in an organisation
take decisions on the basis of
work delegated to them from
top level management. It then
becomes the task of manager to
take various decisions in order
to meet the goals within time.

TASK 2
P2 Functions of leaders and managers in various business situations
There are different situations within business which are managed by managers and
leaders. In context of Toyota, it is seen that managers are so effective that they take care of
employees as well as efficiency of processes. The function of leaders and managers in different
business situation is listed below -
Conflicts – While working with different individuals at workplace, occurrence of
conflicts is very common. It is duty of leaders to divide employees into various teams and assign
them particular tasks and activities. The managers of Toyota have to guide and help subordinates
and team mates for achieving assigned targets in specified time frame. Conflict management
within Toyota helps in increasing employee engagement and involvement. This directly helps in
making employees to work towards achieving the organisational goals in effective manager.
Decision making – It is an essential role within business for taking effective and strong
decisions. The managers of Toyota take effective decisions for team (Ferguson, and Et Al.,
2019). The leaders of Toyota have to provide the responsibility for taking decisions regarding
new technology, design, appearance, sales, price of new cars established by the company. These
decisions are made properly so that new the company is able to increase the number of
customers.
Technology up-gradation: Technological up-gradation is essential factor that affects role
of leaders and managers of Toyota. It is important for this company to continuously develop and
implement technological development within the company processes. These will help both
managers and leaders to provide strong and more effective products to customers. The managers
of Toyota are involved in using new technological instruments and giving effective products and
services to customers. The leaders of Toyota provide personal training to every individual for
developing skills and implementing new technology within organisations.
P3 Leadership theories and models
Leadership is defined as the ability of leader or manager to make other individuals work
according to their way. This ability is important for managers and leaders to analyse different
employees working in the company. Every leader has it's own way of managing and handling
employees (Gibson, and Parkman, 2018). These are known as leadership style. Some theories

are present within business environment which are followed within Toyota. These theories are
mentioned below -
Situational leadership theory – According to the situational leadership theory, there are
some particular ways of solving various problems and handling different business situations. It is
important for Toyota managers and leaders to manage their work and manage situations in
effective manner.
Contingency Leadership: This theory refers to the organisational success depends on
the behaviour of leader that change according to the situations. As per Toyota, manager focuses
on taking decision considering the internal and external element of the company that affect the
decision of the the business organisation. Apart from this, it helps in executing different purpose
and activity in the suitable manner. The leader emphasised on change in behaviour according to
the requirement of the business organisation.
System Leadership: This theory specifies that the purpose of a company is carried out in
systematic manner in order to achieve the goal or objective of the company. It refers to
responsibility to be fulfilled when plan is in a running process. This refers to handling of
management system by adopting new and innovative tools as well as technologies. Toyota has a
goodwill in across the globe because of its maintaining their system management deeply and
carefully. They focus more on problems solving procedure so that customer and employee both
may get high level of satisfaction.
Apply situational leadership theory, systems leadership and contingency theory
situational
leadership theory
systems leadership contingency theory
Major
Product/Service
Launch
Launch of new product
will need situational
leaders as this will
include various
activities like
promotions, launching,
organising campaigns,
etc. These tasks
requires leaders that
There will be proper
step involved in
launching new product
or service within
market.
According to the
market condition,
leaders and mangers
are managing various
situations that occur
while launching of
product.

can manage different
business situations.
Conflict management The situational leaders
can manage conflicts
effectively.
There are strict rules
for employees of
Toyota when any
conflicts arises.
This includes
managing various
conflicts and fights
that occur at
workplace.
CONCLUSION
It is analysed from above discussion that managers and leaders both play an important
role in managing various functions and operations of an organisation. The characteristics of both
managers and leaders are different while handling business situations. The different leadership
theories adopted by leaders and managers are contingency theory, situational theory and system
theory.

PART 2
INTRODUCTION
Management and operations is defined as filed includes various functions of business
which are completed effectively. This consists of different functions like organising, planning,
supervising, production, manufacturing, marketing, etc. The following presentation includes key
approaches to operation management and the role of managers and leaders in using different
approaches. It also discusses about operations management value for achieving goals and
objectives of organisation. At last, there is discussion for factors in business environment which
influence decision making of managers and leaders.
TASK 3
P4 Explain the key approaches to operations management and role of leaders and managers
Operation management is essential for managing and handling activities and tasks of the
company. There are various approaches used by management of Toyota for improving the
efficiency of processes and tasks. Some of the approaches are mentioned below -
Total Quality Management: This is a method which focuses on success of an
organisation in long term which is ultimately achieved through customer satisfaction. It takes the
efforts of all the members in organisation to improve the process, service, products or even
culture in which they operate. Total quality management consists of eight principles which are
customer focused, total employee involvement, Process-centred, integrated system, strategic and
systematic approach, ongoing improvement, fact based decision making and communications.
Total Quality management is said to be a customer-oriented process as improvement in the
quality will benefit end consumer. In addition to this, it has also been identified that with the help
of TQM, overall quality of the culture within an organisation will be improved. It also promotes
team work in employees as they work together towards a same target. Total Quality management
asks for improvement to be a continuous task in the organisation. The employees and managers
do not stop after one improvement they go on seeking for more ideas which would help them to
attain more customer-satisfaction.
Role of managers:– While handling the process of manufacturing products of Toyota, TQM is
used for managing work in effective manner.

Role of leaders:– Leaders of Toyota have the responsibility of managing process and ensuring
that there is no problem in managing defects in products.
Six Sigma: Six Sigma is a methodology which has aim of reducing defects, increasing
profits, boosting up employee morale and increasing the quality of products or services
provided by business. Six sigma is a continuous improvement methodology. There are major
seven principles in six sigma which are always focus on the customer, understanding the process
of actual work, smooth flow of processes, reduction of waste and more focus on utility, removing
variation to bring an end to defects, attain buy-in through collaborations and making systematic
and scientific efforts. According to Six sigma, standard deviation of a standard mean set for
defining the quality of a product should be less than 0.005. If the results does not reach six sigma
and only achieve up to 3 sigma or 4 sigma, it still leads to reduction in cost and increasing
customer satisfaction.
Role of managers - This method is used by minimising overall cost and maximising profits of
the company.
Role of leaders – Managers of Toyota use this approach for reducing costs and price incurred
while production of products.
Lean Production: This is focused towards one major output that is reduction of wastes
and simultaneously increasing the productivity and efficiency of process. Any activity performed
in the organisation that does not lead to customer satisfaction is said to be a waste. Lean
Production was first brought into use by Toyota Production System. Toyota still uses lean
production system. There are a total of five principles of lean production which are identifying
value, mapping the value system, creating a flow in the system, establishing pull and seeking
perfection. There are a number of tools in lean production to achieve these principles. Some of
the most commonly used tools of lean production are Just- In- Time (JIT), Kaizen (Continuous
Improvement), Kanban (Pull System), Overall Equipment Effectiveness (OEE), PDCA (Plan,
Do, Check, Act), Root Cause Analysis, SMART Goals (where smart stands for Specific,
Measurable, Attainable, Relevant, and Time -Specific), Total Productive Maintenance (TPM)
etc.
Role of managers - The managers of Toyota guide their subordinates and employees in using
lean production strategy in their process. The managers set certain standards for work
completion.

Role of leaders – Toyota leaders are involved in encouraging employees for doing using this
strategy effectively and attain organisational goals.
P5 Operations management value in attaining objectives of business
The operations management is defined as conducting of activities and tasks needed for
managing and handling various tasks and activities. There are two type of behaviour that is
followed within Toyota leaders and managers. These are mentioned below -
Behavioural approach – This is known as behaviour of both individuals and team in
analysing competencies of the organisation. Toyota managers provide effective training and
sessions for employees and subordinates that are ineffective in their job role.
Situational approach - As per this approach, Toyota managers as well as leaders make
several strategies and plans for sustaining within market for long time. It is important for the
companies to make effective decisions in different situations.
Importance and value of Operation Management:
There are few value of operation management followed within Toyota organisation and
these are mentioned below -
 Toyota company is able to enhance the functioning of it's processes by adopting key
approaches of OandM. This is helpful in increasing market share and profitability ratio of
the company.
 Toyota managers are involved in developing strong and effective strategies in order to
take decisions for benefit of company.
It is essential for companies to utilise operational management for doing effective work.
It is important for managing work and all activities of the company in proper manner.
TASK 4
P6 Factors in the business environment that affect the decision making of leaders and managers Corporate social responsibility – Also known as CSR, this refers coping up with social
as well as environmental impact. Many organisation have contributed to these
responsibilities which directly have a impact on their goodwill and brand awareness in
market as well as in eyes the people. Toyota is a well known auto-mobile company across
the world. Concluding profit maximisation objective, Toyota has been successful in

maintaining the social as well as environmental responsibility. For example- Company
has able to launched its hybrid cars which will use less fossil gas hence, pollution will be
reduced up-to some extent.
 Culture – Culture is important in every individual's life. Because these are responsible
for overall personality development of human being. As it is truly said that a your
attributes defines your culture. So, Toyota culture has always been positive. Their
employees and management system are always ready for implementing something new.
Positive culture leads to effective workforce in the organisation.
 Ethics- Ethics defines as morals and principles in context to individual knowledge.
Every organisation has their own modes of ethics and according to those they operate in
the market. Toyota has failed in this section. This is because Toyota failed to recall their
defected vehicle. Because company refused the statement that there cars were defective
at such a high numbers. Ethics are important for every organisation to work under
principles and maintain standards.
 Sustainability- It is the key factor which a impact on business. It refers to process
maintaining of process which has been initiated for a longer period of time. Earlier,
Toyota was not capable of providing high quality for their vehicles but as due to change
in their management system they have successfully maintain their continuity of business.
In present years, company has able to achieve its sales higher than ever before.
 Values- Values are another important factor which need to be considered. Value defines
how to behave, how to act in the society. Value are somehow indirectly connected to
culture. This is because values have certain rights which are accepted on the basis of
different cultures accepted by individual. With changing period of time, Toyota has
become emerging and most preferable auto-mobile company in the market. It is only
because of their values in which they focuses on such as, quality, customer's satisfaction,
honesty etc.
CONCLUSION
It is concluded from the above discussion that management and operation is important
part of an organisation. There are various approaches used for improving the operation
management of company such as total quality management, lean production and six sigma. If all

the functions of organisation are done properly and effectively then there are more possibilities
of doing great work and attaining profits and sales in less time. CSR activities, social role of
organisation, involvement in societal beneficiary activities help an organisation for developing
good reputation within market.

REFERENCES
Books and Journals
Battini, D., and Et.Al. 2016. Sustainable humanitarian operations: closed-loop supply
chain. International Journal of Services and Operations Management. 25(1). pp.65-79.
Choi, T.M., Cheng, T.C.E. and Zhao, X., 2016. Multi‐methodological research in operations
management. Production and Operations Management. 25(3).pp.379-389.
Ferguson, N.T., and Et Al., 2019. Secure management of operations on protected virtual
machines. U.S. Patent 10,176,095.
Gibson, P. and Parkman, R., 2018. Cruise operations management: hospitality perspectives.
Routledge.
1. Gillen, D., Jacquillat, A. and Odoni, A.R.2016. Airport demand management: The
operations research and economics perspectives and potential synergies. Transportation
Research Part A: Policy and Practice.94.pp.495-513.
Heizer, J., 2016. Operations management, 11/e. Pearson Education India.
Hübner, A., Holzapfel, A. and Kuhn, H., 2015. Operations management in multi-channel
retailing: an exploratory study. Operations Management Research.8(3-4). pp.84-100.
Meredith, J.R. and Shafer, S.M., 2019. Operations and supply chain management for MBAs.
Wiley.
Radnor, Z.J. And Et. Al., 2015. Public service operations management: A research handbook.
Routledge.
Siryani, J., Mazzuchi, T. and Sarkani, S., 2015, March. Framework using Bayesian belief
networks for utility effective management and operations. In 2015 IEEE First
International Conference on Big Data Computing Service and Applications(pp. 72-78).
IEEE.