Analysis of Leadership and Management at Toyota Corporation

This report provides a comprehensive analysis of Toyota's management and operations. It begins with an overview of Toyota's organizational structure, transitioning from a centralized to a divisional structure to enhance efficiency and specialization. The report defines the roles of managers and leaders, highlighting their distinct characteristics and responsibilities within the company, and contrasts management and leadership approaches. It then delves into the application of different management and leadership theories, such as contingency theory, system leadership theory, and scientific management theory, in various organizational situations. The report evaluates the strengths and weaknesses of these approaches to leadership and management, supporting its conclusions with leadership theories. Furthermore, it examines how managers and leaders have impacted the organization, offering recommendations for future improvements. The second part of the report focuses on Toyota's key operational functions, including supply chain management and automobile design, and outlines the roles and responsibilities of managers in these functions. It explores operational approaches and how external factors influence managerial decisions, concluding with strategies to enhance operational efficiencies and meet business objectives using appropriate leadership and management methods. The report's insights aim to provide a thorough understanding of Toyota's management practices and their impact on the company's success.

Management &
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
1: Introduction on organisation and its management structure...................................................3
2: Definition the roles of managers and leaders as well as the differences between
management and leadership........................................................................................................4
3: Analysis of the different roles of management and leadership in application to different
organisational situations, supported by theories and concepts....................................................5
4: Evaluation of the strengths and weaknesses of different approaches to leadership and
management to draw conclusions that support theories of leadership........................................6
5: Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements................................................................................7
TASK 2 ...........................................................................................................................................7
1. Introduction to the key operations of the chosen organisation...............................................7
2. Define key operational functions and identify roles and responsibilities of managers in
operational functions...................................................................................................................8
3. Explanation of the key operational approaches to operations management and their value...9
4. Evaluate how external factors influence the decision of manager or leader ........................10
5.How to improve operational efficiencies to meet business objectives using appropriate
management and leadership approaches...................................................................................11
6. Conclusion and supported recommendations for future improvements in organisation.......11
CONCLUSION..............................................................................................................................12
REFERENCE ................................................................................................................................13

INTRODUCTION
Management and operations is the core business function used to manage the processing
of goods and services to achieve desirable outcome. Production of goods and services involve
management function like planning, coordinating and controlling the resources (Ashford, Coutu
and Beasley, 2013). This report involves the discussion on Toyota which is Japan's multinational
automotive manufacturer. It provides employment to large pools of employee worldwide and in
term of revenue it is sixth largest company in world. First part of report contains introduction on
management structure of Toyota along with roles of both manager and leader in different
organisation situation. Second task contains key operational functions and approaches to
operation management. Lastly, discussion will be made on how operation efficiency can improve
to successfully meet business objective by using appropriate leadership and management
theories.
TASK 1
1 Introduction on organisation and its management structure
Toyota is one of the largest manufacturer of auto mobiles in the world. Its headquarter is
in Japan city. Toyota company has gained huge share and became market leader in the sales of
hybrid electric vehicle and hydrogen fuel cell. Toyota pays a lot of attention in its operational
activity that includes maintaining quality, inventory management, capacity design, supply chain
management and so on.
Initially respective company has adopted centralised structure. Under centralised
structure all decision making power strictly resides in the hand of top level management (Brown
and Bessant, 2013). Similarly, all decision regarding Toyota like assigning task to management
as well as employees was made in the headquarter of Toyota that is Japan (Toyota Company
Hierarchy, 2018). Later on Toyota faced a lot of issues due to centralised structure like delay in
decision making and restricted communication among internal members of company. Then
finally in 2013 Toyota shifted its structure from centralised structure to divisional management
structure in order to expand efficiency of each member and allow specialisation. Apart from this,
divisional structure helped in maintaining global hierarchy that lead to fasten the decision
making ability, improve efficiency in order to carry out day to day operations. Therefore, Toyota
has eight division and head of each division report directly to the headquarter of company.

2: Definition the roles of managers and leaders as well as the differences between management
and leadership
Managers: Manager is the expert who takes a charge to conduct group of task within the
company. Manager's task is to assign certain task or responsibility to employee of its department
with the aim to achieve the goal of organisation (Chiarini and Vagnoni, 2015).
Characteristics of manager: Managers have the ability to direct and lead its team
member in an effective manner. They collect the information from its staff about the
performance and utilise it in favour of respective company.
Role of manager: The role of manager in Toyota includes planning, organising,
coordinating and controlling the activities to achieve the objective of company.
Leader: Leaders are the one who hold dominant position within the company by
motivating and influencing the behaviour of other person. Therefore, their foresight vision
inspires others to achieve the common goal of entire team.
Characteristic of leader: Leader plays an important role in all the level of management
with their sound knowledge and creative thinking ability. Moreover, their problem solving
attitude helps in maintaining cooperation among team members.
Role of leader: Leader's role in Toyota is to shape the effectiveness of team. Maintain
equality in term of wages for allotted task. Moreover, the role of leader is to guide, motivate and
respond immediately to any issue. Thus, this helps personnel to achieve the standards of
organisation.
Basis of difference Management Leadership
Meaning Management of Toyota
perform overall organisational
task from planning till
controlling to conduct
operational activity smoothly.
Leadership is an ability of
individual to influence the
behaviour of subordinate to
achieve the operational goal
(Childe, 2011).
Approach Management of Toyota makes
the plan for the organisation.
Thus, they ensure planning
must to executed appropriately
Leadership set the direction for
an employee. By treating each
employee fairly, ethically and
with respect.

and work on the deviation.
Strives Manager of Toyota strives for
efficiency in the management
function.
Whereas, leader perform work
with effectiveness by reducing
the wastage and optimum
utilisation of resources.
3: Analysis of the different roles of management and leadership in application to different
organisational situations, supported by theories and concepts.
To perform operational activity, both leader as well as manager perform different roles
and responsibility on the basis of various situations arises within the organisation. To deal with
such situations both of them plays a significant role supported by below mentioned theories and
concept:
Contingency theory: In this theory leader find out the best theory they can use in a given
situation. Toyota make sure they gain better understanding of their internal staff so that they can
come up with suitable leadership style. Like, if Toyota faces problem in meeting the demand of
potential customers. In this case leader encourages the effort of internal staff whereas manager
take vital decision related to suppliers and establish company supplier relationship.
System leadership theory: This theory creates the condition for different level of people
to work with full potential in order to achieve the productivity (De Roover, 2017). If Toyota
wants to increase its reach in given geographical market then managers of Toyota set standards
for product they are selling to their existing and potential customers. Along with that leader
motivate their team member to achieve the set target.
Scientific management theory: This theory involves the application of scientific
approach to managerial decision- making and discarding at the same time, such as: rule of thumb
or trial approach. The manager and leader of Toyota collect the data of previous year related to
sales and on the basis of it current tear sales can be analysed and it is beneficial in the
manufacturing process that how much units have to be produce.

4: Evaluation of the strengths and weaknesses of different approaches to leadership and
management to draw conclusions that support theories of leadership.
Toyota follows various approaches to overcome the threat and enhance the operational
efficiency. Each approach has its strength and weakness because of which manager adopt
appropriate approach so that organisation can perform its functions wisely.
Contingency approach of management: Contingency approach refer to the best suited
style of management by paying attention not only to leadership style but to given situation as
well. Like, Toyota being global brand cannot use same approach everywhere as one approach
does not fit for all situation. Strength and weakness of contingency approach are as follows:
Strength: Instead of keeping whole environment rigid contingency approach helps in
keeping the business environment flexible by understanding the relevance of various approach.
Along with that it helps in predicting best suited approach on the basis of situation.
Weakness: Under this approach if leader can handle one situation effectively does not
mean other situation will also be handled effectively.
System leadership approach: System leadership approach refer to interrelation among
various parts of company which help in dealing with certain business issues.
Strength: This approach helps in adapting organisation on the basis of environmental or
external change. Hence, helps in achieving individual as well as organisational goal.
Weakness: It leads to delay in decision making process which slower down the
operations of company.
Scientific management theory:
Strength: This types of theory is based on scientific management so manager are able to
analyse the future demands of cars.
Weaknesses: In case if the collected data of last year is not appropriate than decision are
not accurate which could be a major reason for decrease in sales.
Conclusions: From the above study it has been concluded that Toyota must go for
situational approach where it gets chance to opt best suited approach for its employees.
Additionally, by adopting desirable leadership style for certain situation makes the task easier for
both management as well as staff. Hence, it is favourable for all level of management for
instance, top level management of Toyota can apply this strategy to know the working of each
department.

5: Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements.
The role of leader and manager helps in structuring the organisation by influencing and
motivating the behaviour of staff to perform operational functions effectively. Moreover,
appropriate leadership style must be adopted on the basis of circumstances prevailing within the
organisation (He, Li and Chai, 2014). Manager plays valuable role in making effective plan to
overcome the problem and leader helps in motivating, influencing, guiding and directing the way
to achieve organisational goal.
Recommendation:
 Toyota must disclose about the leadership approach, situation as well as operation
strategy clearly with its employee this will help internal member to remain self directed
as well as update with the functioning of company.
 Toyota should constantly provide training session, workshop and orientation programme
to its employee. Thus, it will support in enhancing the current skill as well as knowledge
of employees.
 Toyota must keep on launching new models and bring innovation so that they can use
their competitive spirit against rivalries.
TASK 2
1. Introduction to the key operations of the chosen organisation
Toyota being global brand of car manufacturer is known for it's product quality. It is
fastest growing company as it has manufactured more than 10 million vehicle since 2012. These
operational functions help manager of Toyota to accomplish their task in appropriate manner.
Thus, company key operations roles are as follows:
Supply chain management: Supply chain activity plays a vital role in the flow of final
goods and services. Toyota's supply chain is based on total production system (TPS) they take
the raw material from the supplier for the production purpose transform it and than deliver
quality product to its customers on time. Therefore, it is very essential for organisation to achieve
their targets and satisfy the customer's need.
Designing of auto mobile: It is one of the most important key operations function of
Toyota company to design or redesign the product body that includes internal and external

design to attract the customers (Hugos, 2018). Company consider customer's demand as well as
current trend as their priority and design according to its planning. Thus, the key operation
functions assist the manager to manufacture good that satisfy the customer's expectation.
2. Define key operational functions and identify roles and responsibilities of managers in
operational functions
Within company there are many key operations as well as activities that they have to
organise in effective way so that it can accomplish its objectives. Toyota manager plays crucial
roles and responsibilities for conducting the functions of operation. Few important operational
functions of chosen company as well as roles and responsibilities of manager are mentioned
below:
Improvement of product and services:
This considered to functions for creating automotive as per customer needs and demands.
It assists Toyota to satisfy their consumers as well as fulfil its demand. This function of operation
is mainly conducted through the research and development.
Manager’s roles and responsibilities:
 Toyota manager do market analysis as well as valuation on regular so that they can know
about new technology and requirement of customers.
 Through this Toyota manager can assure the resources availability at its work. Here, role
of manager is to ensure regarding optimal resource utilisation for waste management.
Control and distribution system:
It is considered as activities that assist Toyota to attract and reach its clients in effectual
manner. This function is related to serve and distribute products and services to consumers as
well as assure that its target customers will reach to their products easily.
Manager roles and responsibilities:
 The responsibility of Toyota manager is to find out supplying sustainability and handle
systematic as well as lean products or services flow.
 It also assures that goods or services should be available at appropriate time, in good
condition and at correct location. Here, company concentrate to maintain supply chain
quality to accomplish the efficiencies of operations.

3. Explanation of the key operational approaches to operations management and their value
There are different kinds of approaches that company applied in order to conduct its
operations in effective way. The key approaches that are used by Toyota manager and leader in
order to perform their task are mentioned below:
Six sigma:
It is essential tool for Toyota manager and leader as with the help of this they can find
out problems that are occurs in company. With the help of this they can capable to create
strategies and plans consequently and solve problems that promotes functional layout and
systematic manufacturing (acobs, Chase and Lummus, 2014). It can be performed by following
five steps which are define, measure, analyse, improve and control. At first step, manager and
leader of Toyota find out issues that they are recently facing. After that they measure all
problems that identified at initial stage then they perform analysis. Here, manger and leaders
resolve the problems and form strategy consequently. At improvement steps, strategies and plans
are determined also, see that improvement is needed or not. In last step, manager and leader of
Toyota execute strategy as well as control and maintain task consequently. Therefore, it is the
duties of Toyota manager and leaders to take decision and choose proper techniques that aid
them in solving problems as well as performing functions in suitable way.
Lean Principles:
Through this Toyota manager and leader can identify the requirements of its target
consumers. Also they can able to minimise wastage from its production method. It will assist
respective firm’s manager to create plans and strategies in effectual way. It can be only
performed by adapting five stages that define value, map value, launch flow, execute pull and
work towards perfections. In initial stage, define value: Toyota manager can conduct analysis as
well as find out requirement and in second stage, map the value: they identity the clients demand
that aids in maximising its profit. In third stage, flow strategies are developed and information
about new plan or goods is conveyed between employees. At fourth and fifth stages, that is
execute pull and find out work to perfection; Toyota manager launches new strategy or product
as well as identify it appears advantageous for them or not. Respective company manager and
leader can conduct its operations in proper way as through this production process wastage can
be minimised. Also capable to perform work at specified time with suitable funds and resources.
It can be done by research and development sections of firm.

Continuous improvement approach:
Changes are important to adopt but mostly large organisation feel frightened with the
changes as risk is associated with changes (Haimes, 2015). So they adopt small and incremental
changes that helps in continuous improvement of organisation. This approach helps an employee
to improve their performance on the continuous basis. Manager of Toyota have to motivate
employees in order to work together and generate new ideas. Also they should provide some
training session for their employees to train them for continuous improvement.
4. Evaluate how external factors influence the decision of manager or leader
External business environment affects the operations of the business. PESTEL analysis
can help the managers and leaders of Toyota in identifying the negative impact of such factors
which can directly affect the growth of Toyota.
Internal factors:
CSR: - Corporate social responsibility is the effort from the companies side for the
welfare of society. It can be in many ways such as donate money for the development of
building, it can be in educational or healthcare sector. This activity is important to done by the
companies who earn enough profit according to the prescribe standard. Manager of the company
identify the need of society and than build CSR activity which is help full for the organisation.
CSR activity help the manager as well to take decision on the bases of these activities.
Corporate culture: - It includes the outer behaviour and beliefs which affect the
management as well as employees which handle the business transaction. Corporate culture
attached with the business goals and objectives which influence the decision making process of
the manager. So it is required to make their strategies according to these factors which affect the
manager's decision.
External factors:
Political factor: Political factor plays important role in determining factors which can
affect the Toyota Corporation long term profitability. Toyota motor has experienced the direct
impact of political factors. Toyota was involved in a political battle which directly affected the
business of the organisation. It will impact to the decision making of manager as they have to
operate business policies set by political parties of nation.
Economic factor: There are some factors such as inflation rate, macro economic climate,
cost of labour etc. (Marchington and et. al, 2016). that have direct or indirect impact on Toyota

revenue. Company's operating income for the year 2014 was benefited due to weakening of Yen
against USD.
Social factor: Toyota is highly impacted by additional range of social factors such as
family values, change in consumer attitude, media perception etc. With the increase in concern
regarding the environmental implications of driving a vehicle is the important tendency. Toyota
is trying to overcome this by focusing on electric and hybrid cars such as Toyota Prius.
Management should for consider social factors to take appropriate and effective decisions.
Technological factor: Technological investments used by Toyota is high and it is
always being pioneer in the technological field. Toyota is known for its innovations, replacement
mechanisms and research funding. The large investments have increased the chances of
uncertainties and risk for the company. Technological factor should be considered by
management to take innovative decisions like automation of process or technical improvement.
5.How to improve operational efficiencies to meet business objectives using appropriate
management and leadership approaches
Operation management plays essential role in Toyota as it improve the whole
productivity and also manage maintenance, operations and design of system that is usage for
product manufacturing. For the successful business it control and transform the production
process and create innovative designs. For developing and updating operations of business there
are different management as well as leadership approaches that assist firm to conduct task in
proper way (Penn and Pennix, 2018). Toyota applied situational and scientific theory of
leadership and management so that they can perform its functions of operations in effectual
manner.
Situational theory of leadership:
This is the method where manager of firm create plans and strategies as per
circumstances and situation which organisation is facing recently. It will aid firm in conduction
task in effectual way. Toyota manager and leader are capable to form plans and strategies as per
recent situation that they are facing. Through this workers feel encouraged and their issues are
recorded by its manager and they are taking actions. This will motivate them for providing its
full potential for accomplishing task in effective manner that leads to achieving organizational
objectives in appropriate way.
Scientific theory of management:

It defines the performance of work at the time of product manufacturing in order to
distinguish one work from another. The main purpose of this theory is to standardised the
working methods and also through adapting this company can improve its performance. Toyota
applied various tools in order to develop its working conditions through analysing various
aspects like suppliers, rivals and another factors. This assists to improve efficiencies by applying
various above given techniques in order to cut cost as well as improve efficiency.
Therefore, manager and leaders of Toyota can develop efficiencies of operation
management with the usage of above two management and leadership approach by creating
effective plans as well as strategies according to situation. Also motivate their employees to
work in complex condition. By upgrading the working methods with the help of various
techniques so that they feel encouraged and accomplish the objectives of business successfully.
Fayol's functions of management
Planning:
It is generally refers to looking ahead. Manager of Toyota make the plan which should
be linked and coordinated at various levels. Planning also includes the available resources within
company and personnel flexibility. Therefore, manager have to do effective planning so that it
can make better decisions as well as minimises the all cost.
Organising:
Company can not functions well if it will not properly organised. So a appropriate
structure is important in respect to firm's size. Therefore, manager of Toyota have to organised
proper structure so that they acquire better position into market in order to use its resources and
accomplish their objectives.
Commanding:
This is the crucial functions of management. So, it is necessary for masnager of Toyota
to provide clear commands to their employees so that they can facilitates expected output. Clear
instructions also encouraged workers and they required commands to understand their task as
well as accomplish target.
Coordination:
It is all about assuring all things that perform effectively together. This is having proper
resources at correct time and at appropriate location. Managers of Toyota have to coordinate all

the actions and procedures of their team so that organisational goal can be attained in effectual
way.
Controlling/ monitoring:
This assure that all thing is going on according to plan or not. Evaluation s is very crucial
elements of this functions. Manager of Toyota has to evaluate the performance of their workers
regularly to know that plan is implementing according to plan. In case if there are any critical
variation from planning. Then manager have to set standards and measures of performance as per
that.
6. Conclusion and supported recommendations for future improvements in organisation.
Toyota Company is growing into market but to sustain in competitive market firm has to
change its features of products in order to attract more number of consumers for that few
recommendation that are required by Toyota for developing its performance. At this case Toyota
managers and leaders play essential role to adapt modification as per the situation and guide its
employees in adapting changes in growth of company. Toyota has upcoming plans in order to
expand its market share through launching cell vehicles, developing products at low cost and so
on assist them to push its technology so that they can gain economies of scale. They have to
develop their strategy of production to minimise material costs like create more sound proof
operation system so that resource can be utilise appropriately. Also they have to develop in
prototype for small delivery vehicles. Also improve its vehicle through adapting battery operated
commercial truck and so on. For performing key operations like distribution and control system
in effectual way.
There are external as well as internal factors that effects manager and leaders decision
making (Pundi and et. al, 2015). Company can develop its working status through applying many
approaches such as situational, scientific. As per this manager of Toyota can perform market
analysis at daily basis in order to find out clients need and new technology. With the aids of this
respective firm can design plans as well as strategies in proper way.
Therefore all above recommendations for Toyota assists them to enhance it level of
operational efficiencies by minimising cost as well as satisfy clients by producing eco friendly
products in order to accomplish its product line.

CONCLUSION
From the above report it is concluded that Toyota manager and leaders play important
role to create successful company. For which it utilises many approaches that assist them in
forming plan in effectual manner. It also improves strategies for performing key operational
functions of firm. But many times managers and leaders decisions effected because of external
factors.

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Online
Toyota Company Hierarchy. 2018. [Online] Available through
<https://www.hierarchystructure.com/toyota-company-hierarchy/>