Analysing Leadership and Organisational Behaviour in Toyota (Report)

This report delves into the organisational behaviour and leadership issues at Toyota, specifically addressing quality control failures and their impact on the company. The report begins with an introduction to Toyota, followed by an analysis of leadership challenges, including poor employee management and safety compliance. A literature review explores various leadership theories, such as trait theory, contingency theory, and behavioural theories, to understand their relevance to Toyota's situation. The analysis evaluates alternative solutions to improve the situation, ultimately leading to recommendations for effective strategies. The report concludes with a summary of the findings and suggests how leadership styles can be adapted to maintain quality and improve employee morale and productivity. The report emphasizes the importance of leadership in addressing organisational issues and maintaining a positive workplace culture.

ORGANISATIONAL BEHAVIOUR
AND LEADERSHIP

Contents
Introduction...........................................................................................................................................2
An introduction to the organisation......................................................................................................2
Description and analysis of the organisational behaviour or leadership issue......................................3
Literature review – overview of application theories to the identified issue........................................4
Evaluation of possible alternative solutions required to improve the situation....................................8
Recommendations of the most suitable strategies...............................................................................8
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11

Introduction
This report brings out a discussion on leadership affecting the organisational issues. A leader
acts an influencer, manager, and supervisor of the operations and the activities of the
company. This report considers a corporate failure due to leader`s power to regulate the
organisational operations. This report reveals the product quality issues in Toyota. Further, an
effective literature review has been described regarding the styles of leadership. It affects the
productivity and motivates the employee`s morale from the effective leadership that also
ensures no issues in relation to the quality. The literature review undertakes to elaborate
many leadership theories such as trait theory, behavioural theories, autocratic theory,
participative theory, democratic leadership, situational leadership, contingency leadership,
and laissez- faire leadership (Anderson, and Sun, 2017).
An overview of quality issues in Toyota has been complied with the forms of leadership to
actually identify the role of a leader to improve the organisational issues by maintaining
culture at workplace. Each leadership trait tries to find the possible alternative solutions
required to improve the situation in the company. Further, at last several recommendation has
been strategized as per the adoption of leadership so that the goal of improving the quality
(DuBrin, 2015).
An introduction to the organisation
Toyota Motor Corporation is a Japanese company of Toyota Group that was renowned as one
of the leading a largest automobile manufacturer on the globe in 2008. It owns nearly 600
subsidiaries for the purpose of production of cars. The company was founded in 1933 and
further it developed main car production from business to other large industrial groups that
includes finance, machinery, and other industries. After 1930s and 1940s, Toyota has tried to
accelerate and fasten the development. With the introduction American and European

technology with the accomplishment management and technical experts, which has to be
mastered management techniques and automobile production techniques according to the
features of Japanese`s automobile industry. It continues to perfectly improve the plant`s
efficiency and the total production was nearly 10 million. Toyota maintains strong
development capabilities with greater importance to foresee the customer`s demand. The
company worked in south East Asia, US, and Britain so that it can establish joint venture by
the joint implementation in regards to the internationalisation strategy in the development of
production and design. The annual export of cars is nearly 5 million (Elbanna, and
Elsharnouby, 2018). The company will post a recorded net profit of nearly 2.5 trillion will the
unit sales of 8964394 for March 2018.
Description and analysis of the organisational
behaviour or leadership issue
Some of the criteria of the leadership issues started appearing among the employees
considering their teamwork, skills, diligence, safety compliance, work quality, and
attendance. Due to poor managing power, poor handling of employees and poor safety
compliance has led to huge labour turnover that has caused by either kicking them out or self-
resignation (Eranova, and Prashantham, 2017). The leader has faced many challenges related
to efficiency, productive, and compliant workforce. The leader started complaining about the
sick leave system and complained about the staff sickness. He has said that the redundancies
has destroyed the morale (Eranova, and Prashantham, 2017). The procedure of traumatic for
the survival of workers lead to losing of job and several responses lead to anger, depression,
guilt, reassured about the future insecurities, and anxiety. Although, the company leaders
have seen that retrenchment has led to least productive staff. However, at the same time
productivity accelerated after the redundancies (Eranova, and Prashantham, 2017). The main
task of leader is to restore the energy, sense of purpose, excitement, and a huge component of

the productivity. Real risks while retrenching workers, it was profound much to lead the self-
harm by delivering the information to the retrenched employees. The main challenge is to
ensure whether the organisation`s manager are supportive or not aftermath (Gosling, Jia,
Gong, and Brown, 2016).
Lack of leadership skills at Toyota leads to the begging of mixed up the performance
management associated with the retrenchments. In lieu of this, stakeholders are entitled to
answerable by the company regarding the redundancies to the underperforming staff rather
than improving the activities and dismiss the workers. Joblessness is remarked as poor
management actions in extreme in Toyota. The results of the poor crisis management that
was damaging the reputation (Ghasabeh, Soosay, and Reaiche, 2015). The company is the
perfect exemplar of production stock suffering from the quality issues in both reliable and
other innovative products (Grandy, and Sliwa, 2017). Due to failure of production defects
causing deaths that has put the consumer at uncertainty. The issue of product quality has
become out of control inviting the stakeholders to enter in the conversation of critical
responses of product quality. Confused plans for the resolution and apologises that have made
to confront the crisis when the leader is not able to deal with the crisis with a significant
level. The effect of poor quality in Toyota is huge when the customers have lost their trust
and this has created a discrepancy between reality and the expectation (Ghasabeh, Soosay,
and Reaiche, 2015).
Literature review – overview of application theories to
the identified issue
In order to rectify the issues related to quality, the company has to undertake leadership
philosophy is that it can positive quantifiable impact on future purchases. The company
has lost its more attention and confidence when focusing the customers that turn to lose
its greater market (Gurung, and Prater, 2017). It is realised that the company see the

falling off profits, which have extended in future. With the passage of time, leadership
has a huge literature while fixing the issues of the organisation especially the product
quality. Several types of leadership gives an chance and applies due to functional
entailing with high degree of precision, sensitivity, technical expertise, and confidence
level (Gurung, and Prater, 2017). Sometimes, it will be different in simplifying the
management orienting portfolios that does not fit in all the heads (Gurung, and Prater,
2017). While treating the quality issues in Toyota, it is seen that situations, culture, new
formulated law, and working environment affect the leadership style that has to be opted.
On the remarkable direction and guidance of the leader, dynamic situations among the
specific factors was further established regarding the task behaviour, social emotional
strength in the performance of task and readiness level of competence (Handley, and
Angst, 2015). The situation reveals that there was not proper lines of communication and
it was undertaken lightly that anyone could report any leader rather than confirming to a
particular leader. The chain of command often remain disturbed even when there is a
need to command and control the production. Although, there is not authentic style of
leadership by assuming that democratic leadership forces the audience to access several
decisions while improving the product quality (Handley, and Angst, 2015).
The company can opt for a combination of leadership theories to improve the standards
and regulate its machine properly. Great man theory symbolises that these leaders are
born and are not made (Laureani, and Antony, 2019). The two main attributes of this
leadership theory are event making leader and the eventful leader. This leader proposes a
series of eventful and complex solutions but at the same time, it can undermine the course
of actions that has been applied (Laureani, and Antony, 2019). This leader`s traits are
based on results related to outstanding capacities of intelligence characterising the action
of distinction. Other more things related to productivity and related issues are which there

should be a leader who not only overlooks the operations but also monitor them careful
perspective (Luoma, 2016). On realising the issue of product quality, great man theory is
irrelevant due to increasing conditions in the company`s actions because these leaders are
born from dogma and are destined by the nature to attempt to fulfil the role of particular
goal in the light of few fixed traits (Luoma, 2016).
Trait theory assumes that the traits of the leader are genetic or attained. The traits are
emergent such as intelligence, height, self-confidence, attractiveness and effective traits
(Luoma, 2016). Further, in this case, charisma is an important element of leadership. It is
a greater revolutionary enforcement where main traits that creates a difference between
the leaders and non-leaders researching that there is a minor difference between the leader
and the follower (Luoma, 2016). It is quite difficult to identify the specific traits that
every leader have in common resulting in the development process as an inaccessible
element (McPhee, and Canary, 2016).
Contingency theory of leadership is best suitable theory that is précised and it stand-alone
when the leadership style totally depend on quality, and situations on the basis of
variables. As per this theory, there is no single way of resolving the issues, as it is
important to consider both internal as well as external dimensions in the environment in
order to adapt the situation (McPhee, and Canary, 2016). In most of the cases, leaders not
only change as per the dynamic environment but also employees in the organisational
change. In some of the common change, it is seen that theory of contingency is the
category of behaviour theory, which challenges one of the finest way of organising and
leading the style of leadership which is operative enough is some business conditions that
many nor be an effective in others (Mitchell, Weaver, Agle, Bailey, and Carlson, 2016).
This theory perceived the focus of leader and the subordinate relationship that has opened
that subordinates plays an important role while defining the relationships. This style is

easily surpasses in the name of few characteristics that can directly relate to the issues of
the product quality and improve it in the light to become effective and further able to
adapt the situation and transform equally from the leadership style between the
relationship-oriented and the task-oriented (Mitchell, Weaver, Agle, Bailey, and Carlson,
2016). Style and behaviour leadership shows the importance of certain important
leadership skills, which can serve as an enabler for the leader who can perform the action
when comparing it with the previous leader while prioritising to the act which each
person, has different styles. This includes three signifying behavioural style of leadership
such as democratic leaders, autocratic leadership and the lassie- fairz leadership. It
displays creativity, motivation, and great level of satisfaction, maintaining the better
conditions with the leader, enthusiastic leaders ignoring the presence of leader, and
working with synergy when working under the democratic leadership resulting increase
in productivity. On the other hand, autocratic leaders crucially focus on greater quality
and the quantity of the output. Lastly, laissez- faire considers relevant leading the team of
highly educated and motivated people excelling record of accomplishment in the past
(Müller et al., 2018). It finds two leadership skills that purely focus on effectiveness of
leadership. It is concerned about the opinions for the production, relationship behaviour,
concern for the people, and other task behaviours (Mizrahi, Vashdi, and Gadot, 2016). It
considers initiating the structure, directing, and defining the self as well as the
subordinates in the process the improving the quality of the product. Servant leadership
has been encouraged to remain in the influence of leaders and followers that sympathise,
nurture, and take care of them. A servant leader is more concerned about what not to do.
This leader in the leading organisations clarifies to be greater as compared to other self. A
leader itself aligns with the vision with other people, community, and the organisation
(Ruben, and Gigliotti, 2016). The leadership has started to be defined as the birth traits

and rights, acquisition of traits, situational leadership, and functional grouping leadership
to the interaction of personal as well as organisational functioning of the group
possessions (Ruben, and Gigliotti, 2016).
Evaluation of possible alternative solutions required to
improve the situation
The company should attempted several activities in order to improve the quality of the
products to the customers and retain its trust with the help of talking through media such
as Facebook, diverse websites, and instagram to ensure and assure the customers. The
company has not accepted the management crisis it has created. In order to retreat the
action, it is seen that organisational culture that is vigilant for the organisational crisis
(Lussier, and Achua, 2015). Severe obsession with the poor quality blames lack of
leadership skills. Therefore, it is important to the lines of communication between the
employees and top-level management and their willingness to deal with the production
issues (Lussier, and Achua, 2015).
The two crucial challenges were created because of elements of culture. The first was
associated with the quality clearly stating that it is less than perfection. Other linked
element of the organisational culture, which is a hierarchical approach to management
where there is a lack of open communication. People ate placed on the best places for the
early signs for the critics to sign out the flaws (Northouse, 2017). Consequently, problem
was remained unresolved when exploded from the major crisis. Another challenge was
related to crisis that touched the essence of reputation. As it created its brand image on
the basis of reliability and quality, which has called for threatening questions. The
company has called to resolve many failed events and further opt for control (Northouse,
2017).

Recommendations of the most suitable strategies
Toyota should build leadership model where it is aimed to develop the leader`s understanding
for their work and their philosophy teaching other employees. The main opposing challenge
is the weak capability where it is the strong contributor for the organisation to achieve long-
term goals and visions knowing that what actually do and develop people (Saleem, 2015).
The leaders should focus on measuring the results where financial results can be a result of
quality improvement procedure. All the quality improvement effects revolve around
planning especially when it is exposed to risks. The company should provide an extraordinary
focus on control, direction, and maximise the flexibility (Ruben, and Gigliotti, 2016).
The company should opt an initiate so that it can solve the issues and finally improve the
image where it is aligned to assist providing value to the customers for prosperity. Leader
should become role model to understand the daily work in order to promote success within
the team. The company should emphasise on developing exceptional people who ultimately
follow organisation`s philosophy (Ruben, and Gigliotti, 2016). The company should use a
cross-functional team where each person has different set of expertise focusing on
achievement of organisational objectives and improving the production quality (Zareen,
Razzaq, and Mujtaba, 2015). It includes marketing, human resource, finance, and operations
departments, which further includes all the levels especially the operational section for the
floor level management. Cross- cultural teams can be seen as self-directed teams where a
leader has to be effective to direct the quality production to comply with the standards.
Decision-making depends on consensus led by the team leader under the light of reinforcing
culture on the continuous basis (Ruben, and Gigliotti, 2016).
Toyota should have credible and clear plan. The company is a change opting agent where it
will enable the group to endure hard times (Tortorella, and Fogliatto, 2018).

The company could not accept the reality and opt for the responsibility for the crisis. He
should first admit that pushing hard for the growth with the neglected quality could spoil the
company sustainability and financial reports in long term. The company could not expect to
actually solve the issues in its own magnitude (Tortorella, Fettermann, and Fries, 2016).
Therefore, the company needs to create a crisis team reporting directly to leader so that it can
work and fix the issues permanently (Tortorella, Fettermann, and Fries, 2016). The leader
needs outside counsel when listening to the insiders regarding the defensive about the
criticism. It is important to realise the cause of crisis and invest huge sum of money in a
corrective actions so that sales do not tend to shrink and profits too that requires the
restoration of funds and other cash resources until the reputation will be restored.
Transformational leaders need to personify the brand image of the company (Tortorella,
Fettermann, and Fries, 2016). Leaders can make personal commitment for every customers so
that it can repair the damage that further includes purchasing back the defective cars. In order
to win the greater market share, Toyota cannot wait to improve superior quality, greater
safety, fuel efficiency, and better value for the customers. The company will restore to give
consumer information to recall the pedagogic way and it is easily understandable.
Conclusion
From the above discussion, it has been seen that leadership plays an important role in
improving the product quality. It is quite visible that transformational leadership, situational
leadership and the contingency leadership promotes integrity, adoption with the external and
internal dimension of leadership strategies. It will robust skills and traits to establish and
implement total Quality management and other tools for the measuring the quality of the
products to achieve the vision, manage the delivery, build stronger and large successful team.
Toyota should adopt the given suitable recommendation strategies for leadership so that

issues can be resolved. This literature review defines each of the appropriate leadership styles
to accomplish the organisational goals.