Toyota Motor Corporation: Management and Leadership Report Analysis

This report provides a comprehensive analysis of management and leadership within Toyota Motor Corporation. It begins with an overview of Toyota's management structure and defines the roles of managers and leaders, highlighting the key differences between them. The report then delves into the application of different management and leadership roles in various organizational situations, providing examples such as dealing with worker strikes or quality control issues. It further examines the strengths and weaknesses of different leadership and management approaches, including scientific management, McGregor's Theory X and Y, system leadership, and contingency theory, with a focus on their relevance to Toyota's operations. The report also identifies Toyota's key operational functions and the responsibilities of managers within these functions. Finally, the report concludes with an assessment of the impact of managers and leaders on the organization, offering recommendations for future improvements, and emphasizes the significance of adapting leadership styles to changing business environments. The report covers various aspects of management and leadership, making it a comprehensive study of Toyota's operational strategies.

Management
&
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Overview and management structure of company:.................................................................3
2. Definition and roles of both managers and leaders, highlighting the differences between
management and leadership:........................................................................................................3
3. Analysis of the different roles of management and leadership in application to different
organisational situations...............................................................................................................5
4. Strengths and weaknesses of different approaches to leadership and management:...............6
5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements:................................................................................8
TASK 2............................................................................................................................................8
1. Key operations of Toyota company.........................................................................................8
2. Explain each key operations and identify the role and responsibility of managers.................9
3. Key operational approaches and values...................................................................................9
4. Impact of external factors on decision making process of manager and leader....................10
5. Management and leadership approaches...............................................................................11
6. Conclusion and recommendations for the future improvement.............................................12
CONCLUSION ............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Management and operation are major aspects of business organisation. Coordination
between management and operations of business organisation ensure the success of organisation.
Efficiency and effectiveness of operations in a business organisation purely depends on action
and strategies of management. This report exhibits role of managers and leaders in the
organization which assists in enhancement of efficiency and effectiveness of various operations
and task within the entity. This report describes in the context of Toyota Plc, a Japanese
company dealing in the auto-mobile sector, differences between management and leadership, key
operational functions, key operational approaches, impact of external business environment
factors and strengths and weaknesses of different approaches to leadership.
TASK 1
1. Overview and management structure of company:
Toyota Motor Corporation is Japanese company and by volume it is world’s largest auto
maker. Toyota is mainly engaged in manufacturing and sell of vehicles and motor parts in
various countries. Presently company is operating its business globally with approx 53 overseas
manufacturing companies in 28 countries and regions selling vehicle in approx more than 170
countries and regions.
Toyota has large range of activities related with manufacturing and sell of vehicle, to
manage all these different segments divided as per activities company follows divisional
management structure. Toyota also has a centralized global chain and headquarters of company
in Japan is responsible for all the major decisions. Generally divisions are not allowed to
communicate with each other and significant communications are routed through headquarters
which creates a systematic centralised control over the all divisions and segments. Toyota follow
the vertical management structure to control their human strength because in this type of
structure organisation need to circulate information from top to bottom.
2. Definition and roles of both managers and leaders, highlighting the differences between
management and leadership:
Managers: Managers are individuals who are responsible for supervising, controlling and
managing other staff or individual projects in a business organisation. Managers are the persons
in an organization who design and manage the work of an organization in the direction of the

pre-determined goals and objective of the company. In order to accomplish a particular task and
objectives efficiently, Managers frames strategies and policies and to manage the workings of
staff and employees, a systematic schedule is prepared by managers in Toyota. Following are the
major role of managers, as follows:
 In Toyota, managers play a significant role in determination of objectives and goals of
the company while considering recent market trends, scenario and competitive
advantages & disadvantages.
 Managers acts a chain of communication of policies and direction between employees
and top management.
 Managers develops new approaches, ideas and initiates new process for enhancement of
performance of business organisation.
 Managers promotes the employee friendly environment in order to increase capabilities
of employees in Toyota.
Leaders: Leaders are individual who develops a long term visions and motivate others in
business organisation to achieve them while building a team spirit. The main objective of leaders
in Toyota is to lead and encourages employees in order to enhance efficiency and productivity of
their performance. Following are the significant roles of leaders, as follows:
 Leaders have a vital role in motivating individuals in organisation to accomplish goals
and objectives determined by organisation.
 Leaders gives directions in order to communicate and influence individuals in
organisation to do activities and tasks according to specific policies of organisation.
 In Toyota Leaders solve out the issues or problems of individuals and obtain feedback of
customers to address them.
Difference between management and leadership:
Basis Leadership Management
Definition Leadership refers to
competence of leader to inspire
individuals in organisation in
order to enhance their
Management refers to set of
activities relating to planning,
coordinating, managing and
directing of business in order to

performance, capabilities and
efforts to achieve objectives.
achieve particular objectives.
Role In leadership main role of
leader is to encourage and
motivate individuals in
organisation to achieve desired
goals and objectives.
In Management process primary
role of managers is to organise
activities in way to enhance
performance of organisation.
Focus Main focus is towards
motivating individuals.
Main focus is towards making
coordination among different
activities in Toyota.
Therefore, individuals engaged in leadership and management of Toyota should
continuously try to achieve objectives and goals of company and put their maximum efforts
towards this so that a sustainability in growth and performance can be achieved.
3. Analysis of the different roles of management and leadership in application to different
organisational situations
Different roles of management and leadership are helpful of organisation to face different
organisational situations that creates difficulties in day to day business of organisation.
Following points will helps to analyse different roles of management and leadership in
application to different organisational situations in the context of Toyota, as follows:
 If Toyota company's workers are on strike, so it become a big problem for the
organisation. Because in this case business faces the many challenges such as wastage of
time, money and production. Management need to listen their employees point of view
and try to resolve it. Manager follow the problem solving theory of leadership.
Management set the proper meeting with the workers and listen the hole problem.
Manager of Toyota company motivate and encourage the employees to return to the
production level and leave the strike. Leaders will try to solve all problems and ensure
that this is not happen in the future.

 One major situation may arise in company is decreasing sales of a particular product or
quality concerns about a particular product. In this situation management can conduct
survey and analysis to identify main reason for decreasing sales or poor quality and
organise activities or develop strategy to short out these issues, on other hand leaders by
collecting feedback of customers and workers, provides helps to management and ensure
them to solve out these identified issues. Manager follow the motivation theory of
leadership which encourage the employee to perform better and meet the standard quality
of production.
 In the Toyota company one significant situation appeared that which is related to
efficiency of production is below the standards. In this situation management by creating
scheduled task and activities or by defining responsibilities of individual in organisation
can increase the efficiency of production and leaders by initiating different appraisal
programs can increase the efficiency of production in Toyota. Manager follow the
motivation theory to motivate their workers to meet the standard of production.
Key functions of managers are as follows: Manger in order to achieve the task build
team and uses the synergy of team to accomplish the common task.
Achieving the task: The task of company cannot be alone achieved by an individual.
Thus, whole team work together to fulfil the common objective. It is significant for company to
share the vision and goal of company so that internal staff don't get deviated. Therefore, Toyota
make sure they won't lack in group cohesiveness to ensure effective functioning of its different
department. For instance, if operations department fails in meeting the demand of people in that
case leader motivate their group and manager make decision like employment of more personnel.
Maintaining the team: The managerial responsibility of Toyota in term of team is to
specify the standard on the basis of performance, maintain the appropriate leadership style as
well as culture of company. Apart from this they help in resolving the group conflict by
maintaining cooperation and healthy working environment within the company.
Meeting the need of individual: It is very essential for the manager of Toyota to
understand the need of team member as individual like personal skill, capabilities and strength of
an individual. Accordingly, they assign responsibility to various individual. Moreover, on the
basis of performance it is very essential to praise the effort of an individual through monetary or
non monetary methods.

4. Strengths and weaknesses of different approaches to leadership and management:
Following are the different approaches to leadership and management along with their
strengths and weaknesses, as follows:
Scientific management theory
This theory state that manager and worker must cooperate with each other to increase the
productivity. Manager must motivate employee through rewards or fair wages. This methods
emphasize on enhancing the performance of workforce.
Strengths:
1.This method helps in improving economic efficiency by increasing labour productivity.
2. It include division and specialization of labour which eradicate delay, wastage and
body strain among workers.
Weaknesses:
1.This method involve huge cost by replacing old system with new scientific method of
management.
2.Small firm cannot adopt this method of management.
McGregor theory of X and Y:
Theory X and theory Y are two contrasting theory, it basically refer to two opposite
perception of manager regarding their employee. Under theory X manager assume that people
have no ambition due to which they don't like to take responsibility. Whereas, theory Y assume
that people like to work, they have ambition and remain self motivated to achieve the task.
Strength:
1. This differentiation is easier for manager to understand and on the basis of it managers
focuses on different method or ways to carry out the work from individual.
Weakness:
1.This approach is not favourable because it ignore the reality that if an individual in not
good in one task that does not mean they cannot perform any other task effectively.
System leadership
This approach emphasises on creation of environment in which individual at all level can
accomplish their task effectively in different situations.

Strengths:
1. This approach assists in accomplishment of goals of employees as well as entity's goals.
2. It provides consistency in decision making in a systematic way that no individual get
preferential treatment in organisation.
Weaknesses:
1. Segregation of duties and responsibilities are difficult which is unfavourable for
productivity.
This approach is very time consuming and not suitable for small organisation.
Contingency theory
This theory requires that leaders or managers should change their leadership and
management style according to contingent events or happening within the organisation. This
approach is also followed in Toyota to short out some major issues which arises due to certain
events.
Strengths:
1. This approach emphasises on volatile nature of business organisation. In Toyota
managers develops a structure to get solutions to a particular problem rather than
adopting a rigid strategy.
2. This approach is very adaptive because it allows organizations to remain flexible and
convert or modify their policies and strategies according to the changes.
Weaknesses:
1. This is very complex and costly approach in practical life and do not provides any
specific solution for particular problem.
2. This theory fails to explain which is more favourable situation for leader to change their
style.
5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements:
Conclusion : From above discussion it has been concluded that Management and Leadership is
vital aspect of an organisation and, leaders and managers always tries to attain objectives of
organisation whether long term or short term in accordance with their roles in organisation. With
the help of different approaches of leadership and management are able to face different

organisational problems. But consideration of strengths and weaknesses of different approaches
is necessary to apply these approaches efficiently.
Recommendation for future improvements:
 Activities should be arranged in efficient manner to enhance the performance while
considering employee’s capabilities.
 Management and leadership style should be changed with change in circumstances and
environment of organisation.
 Innovative process and effective policies should be framed to encounter exceptional
circumstances.
TASK 2
1. Key operations of Toyota company
Introduction: - In the Toyota company, there are various operation perform by the organisation
such as manufacturing car and designing engines. This company have huge brand name in the
car manufacturing market. These operations done by according to customer needs because
Toyota introduce it's product after heavy research on consumer's demand. Company recruit
highly skilled people for the satisfaction of their product users. Employees know their role and
responsibility very well in the organisation and they also perform good. Because of the
dedication, company able to meet their objectives and goals.
Key operational functions: - Toyota company perform these operational functions such as
planning, organising, directing and controlling. These function will help the organisation to meet
their standards. Manager of the company make strategies to perform well in the organisation and
achieve it's goals.
2. Explain each key operations and identify the role and responsibility of managers
 Planning: - Planning is the base of any operations because without this nothing will
happen in efficient way. Managers of the organisation prepare plan for achieving goals
and objective. In the Toyota company, manager have responsibility to make strategies
which is used for the production and future growth.
 Organising:- In the company, manager will ensure that the organisational performance
meet with company's objective and goals. Manager will control the all activities related to

the manufacturing so the production is not disturb by any factor. It also responsible for
the employees and check that they work in effective way. These actions will improve the
productivity of Toyota and efficiency of workers.
 Directing: - Manager plays a big role in the Toyota company to direct or lead employees.
It provide guidance to the employee regarding their work. If any issues create in the
organisation than manger will instruct them and try to resolve the problem. So guidance
of manager is very important and responsible work in the Toyota.
 Controlling: - In the organisation, manager have full responsibility to control or check
the all activities related to the production. Manage the employees performance which
helps in the organisation to enhance productivity. Toyota company's managers control all
the actions and activities related manufacturing or workers.
3. Key operational approaches and values
In the Toyota company some approaches follow by the managers for the production of
car which enhance the productivity and efficiency as well. Just in time, total quality
management, lean production and six sigma these are the approaches follow by the company.
 Just in time: - Just in time is the method which is used for the identification of inventory
requirement at the time of production. In this approach organisation order the material
when there is a requirement of production. Toyota follow this approach in the
organisation that is reduce the storage cost of material. This method used by the mangers
to reduce the expenses which is done by company on warehouse. Toyota's manager will
easily forecast the demand of material on the basis of past production level. This
approach is beneficial for the auto manufacturing company that why Toyota follow this
approach.
 Lean production: - This approach focus on cost cutting which means try to reduce the
wastage of material during car manufacturing process. It applicable on every level of
production from manufacturing to distribution. It's main aim to reduce the cost of each
unit by avoiding wastage of material. Toyota company's manager introduce the program
for their employees. Which guide them how to produce quality product with the low
wastage of material. Manager can control the all activities which is done by employees
and monitor their role and responsibility. By following lean production approach leader

ensure that the wastage of inventory will be low and produce quality products for the
customers.
 Total quality management (TQM): - This approach specially focus on quality of
product and the continuously improvement of quality and provide better services to the
costumers. TQM set up for the separate organisation or a group of standards for the
International Organisation Standardization (IOS) of the series of IOS 9000. Manager of
Toyota company set the standard for the quality and it is maintain by the every employee
of the organisation. This approach can increase the market value of the firm which helps
in generating more revenue.
 Six sigma: - This approach eliminate the defect from manufacturing process which can
lead the quality product at a minimum cost. Manager of the Toyota company use this
method to reduce manufacturing cost and they provide proper training to their employees.
Which is very helpful for the organisation and leader will ensure that, the training is
provided to the all workers.
4. Impact of external factors on decision making process of manager and leader
External factors effect the manager's decision making process. For this, Toyota company
using PESTEL analysis to know how they effect the organisation. In this situation, how manager
and leader will take decision. Because of this analysis company can find out their strength and
weakness.
 Corporate social responsibilities-This a business approach initiated by the companies
in order to make company's more conscious about the impacts it inflicts on the society
through it's working. CSR is a wide concept, it illustrates about how a managers and
leaders of company should go beyond making money and doing business. For example
doing charity, donation or producing healthy products for public. This helps in building a
good image in the market for the company.
 Corporate culture- It demonstrates the belief, values, behaviour that every corporate
sector generate. Employees part of business organisation are responsible for this. It helps
to change employee's way of working, his thinking as well as increasing the productivity
of employees. Toyota is known for it's friendly corporate culture it gives it's employees
chance to voice their views and opinions. The manager is able to find solutions to various
problems and overcoming it's limitations by ensuring healthy culture in the company.

 Corporate ethics- Ethics are the moral obligation or principles that guides an individuals
actions. Corporate ethics are business values that company should incorporate. For the
betterment of the society the managers should avoid any unethical and unfair practices
while doing business. There are things which are legal but it is not necessary that they are
ethical as well. This is something that managers should decides on it's own as to which
type of activities he wants to associate itself with and then take decisions accordingly.
 Political factor: - Political stability will effect the Toyota company and manager build
strategies for using this impact in a positive way. Free trade is the opportunity for the
company so manager can take decision of market penetration. Government also provide
the support for making eco-friendly products.
 Economic factor: - Toyota company have good opportunity to export their products
because it has weaker currency in comparison to US. The continuous growth of U.S
economy is best place for the market expansion and promote their products in the
developing country. Manager will consider these points and take decision according to it.
 Social factor: - This company have capacity as well as ability to satisfy the consumers
through introducing new hybrid and electric cars. Toyota need to fill the gap of wealth
because electric vehicle need enough amount of investment which directly effect the cost.
So there is a chances of less demand because of it's price. Manager need to analyse these
things and build there plan according to social factors.
 Technical factor: - This factors impact a lot because Toyota have technological
business. Company have opportunity to introduce e-commerce and enhance the trend of
mobile technology. Mobile app increase the customers engagement and loyalty towards
their products. This factor increase the chances of cybercrime which is thread for the
Toyota. So manger and leader will review all the positive and negative aspect of this
factor and take decision.
 Environmental factor: - PESTEL analysis show their concern regarding environmental
factor because it also effect the Toyota company. Company have opportunity to introduce
eco friendly products with higher efficiency of fuel. Manager and leader of the
organisation review these opportunities and make strategies.
 Legal factor: - Legal factor is the biggest factor which influence the organisation
because it includes the environmental and consumer laws. Also protect the intellectual

property right because government working for the protection of this. Toyota have
capacity to build eco friendly products which satisfy the condition of environmental law.
Leader of the company analyse these factors and take positive decision on the basis of
current scenario.
5. Management and leadership approaches
Operational management help the organisation to manage company's daily activities and
it also improve the Toyota companies productivity. Manager of the company make strategies
according to consumer's requirement which help them to improve their business sales. Manager
need to build those strategies which provide the efficiency as well as effectiveness to the
business. Which help the Toyota company to achieve their business targets and goals. By
motivating their employees they can achieve their business goals and objectives.
By using various leadership and management theory manager help the organisation to
enhance their performance in the business. To increase the operational efficiency manager need
to adopt some theories. For the effective work Toyota company follow the situational and
scientific theories of leadership are as follow:
Situational theory of leadership: In this leadership theory manager of the company build
strategies according to current market demand and the situation arise in the organisation.
Company make plans to face the issues which occurs in the organisation and it will sort by the
manager to by preparing strategies. Manager of the Toyota company take actions according to
the situation which provide the motivation to the employees to perform their duty in best manner.
Scientific theory of management: This scientific method identify the performance at the time
manufacturing product. In this theory manager change their working method to enhance the
performance of their employee. Manager of Toyota company use various tools for the analysis of
various party such as suppliers, customer, competitors and other factors too.
Leader and manager of the Toyota company follow these leadership and management to
increase their efficiency of the organisation as well as performance.
Fayol function of management
 Planning: Managers use to create effective plan for future conditions also create strategic
subjective and that help to achieve the future goals. Therefore, managers of Toyota are
required to evaluate future occurrence affecting the organization and shape the future

functional and strategic structure of the company in order to survive in competitive
world.
 Organizing: Managers use to organize the workforce and structure in an efficient manner
that help them to complete the allotted work on time. Managers of Toyota use to train and
recruit the right people for the job, and always secure a sufficiently skilled and educated
workforce.
 Commanding: It is an important as well as crucial for the management function. It
provide the clear command to the their employees so they have to work according to it.
They encourage the employee for the work.
 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 recommendations for the future improvement
PESTEL analysis is the best for the Toyota company to identify the opportunities as well
as thread for the organisation. It provide proper information regarding which factor effect the
company most and in what manner such as positive and negative. Key operational functional
help the Toyota's manager to improve their productivity, efficiency and effectiveness. Also help
them to achieve business objectives and goals.
Recommendation for the future improvement: -
 Manager and leader of the Toyota company need to analyse that, how environmental and
political factor effect the company in the positive way.
 Company need to hire human resources those have leadership traits because it increase
the productivity as well as efficiency of the organisation.
 If Toyota company follow the Total quality of management approach than they produce
high quality products without any wastage.

 Follow just in time approach which reduce the cost of storage and help them to reduce
wastage of material.
CONCLUSION
From the discussion done in this report, it has been concluded that management and
operation are interrelated and, managers and leaders are key personnel who controls all activities
concerned with management and operation. Understanding of difference between roles of
managers and leaders is necessary in order to avoid any difficulties in defining objectives of
organisation. Consideration of various approaches of leadership and management are required to
apply different style of leadership and management that assists in accomplishment of goals
within scheduled period.

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