Report on Toyota's Management and Operations: A Comprehensive Analysis

This report provides a detailed analysis of Toyota's management and operations, covering various aspects such as leadership roles, management structures, and operational approaches. The report begins with an introduction to Toyota, its management structures, and the roles of leaders and managers, differentiating between their duties and characteristics. It explores situational leadership and the application of management theories, including Fayol's principles. The report further examines the strengths and weaknesses of different leadership and management approaches, focusing on how administrators and leaders influence the company and offering recommendations for improvement. Key operational approaches, such as the informational model, total quality management, and continuous improvement, are discussed, along with their value to Toyota. The report also identifies factors influencing decision-making and concludes with recommendations for future improvements, providing a comprehensive overview of Toyota's management and operational strategies.

MANAGEMENT AND
OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO-1.................................................................................................................................................1
Introduction of organisation and its management structures..................................................1
P1. Defining the duties and features of leader as well as manager........................................2
LO2..................................................................................................................................................3
P2. Duty of a leader as well as activities of a manager implement in various situational
matters....................................................................................................................................3
P3 Application of management theories ................................................................................3
Strength and weakness of different approaches of leadership and management ..................3
Administrators as well as leaders created an influences on company as well as
recommendation for upcoming betterment............................................................................4
LO 3.................................................................................................................................................5
P4 Key operational approaches of operation management and their value............................5
P5. Important and value of operation management of Toyota...............................................6
Key operational functions and roles and responsibility of manager......................................7
LO 4.................................................................................................................................................8
P6 Influences of outside business surroundings factor that effects the decision making by
leaders and administrators......................................................................................................8
Ways to improve operational efficiency.................................................................................9
Conclusion and recommendation for the future improvement to be taken by the Toyota.....9
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Management and operation is an management of business activities for making high
degree of ratio with in company. It is taken up with all the activities of different functional unit
to work effectively for-profit maximization. It covers all the day to day processes within an
organisation. Chosen company is Toyota which is a Japanese multinational automotive
manufacturer. Toyota is manufacturing many products such as- luxury vehicles, commercial
vehicles, engines and auto mobiles. This report discusses about the roles and responsibilities of
manager and leader. The report also discusses about the duty of a leader as well as operation of a
manager applying in various situational matters by implanting various approaches as well as
models of approach. The report further discusses about how managers and leaders can improve
the efficiency within organisation to reach out the business objectives. The report further
identifies the factors that can impact on the business.
LO-1
Introduction of organisation and its management structures.
TOYOTA is a multinational Japanese car manufacturer. It has consisted 364,445
employees across the world. Company was founded by the Kiichiro Toyota in 1937. Toyota is
the second largest manufacturer as well as the first auto mobile to produce more than 10 million
vehicles every year. Company is market leader in sales of hybrid electrical market. Net income
of Toyota is more than ¥50,308,249 million. Toyota has divisional management structure.
Toyota has strong globalized hierarchy that is more like a spoke and wheel structure.
Global hierarchy- Toyota is maintaining its global hierarchy since recognition in 2013.
Toyota has increased its decisions making power for the regional heads and the managers of the
branches. Decision making process of Toyota has become less centralised. All the different
various managers of the different branches report to the firms headquarter in JAPAN.
Geographical division- Toyota has included eight regional divisions such as- north
America, east Asia, Japan, china, Asia, Africa, Latin America, Caribbean. All these are the
regional division. This management structure helps to improve the products and services
according to market segments.
Product based division- set of product-based division is another feature of Toyota. The
company has four types of division such as- luxes global, Toyota no. 1 in north America, Japan
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as well as euros and Toyota no.2 In remains locations. There are unit centres that has
responsibility of transmissions and engine and other operations (Alefari, Salonitis and Xu, 2017).
P1. Defining the duties and features of leader as well as manager
Features and roles of a leader-
A leader is a person who have has skills to influence their subordinates to reach out the
specified goal. A leader gives the directions to their followers. They show a right path to follow
where they can contribute their efforts to reach out the organizational goals. Leaders has a
charismatic power to attract other people. Leaders are very comfortable to take the risk in every
situations. They focus on leading their people. They play a facilitative role in decision making
process. The leader of the Toyota company has a charismatic power to influence their
subordinates to perform effectively (Reina and et.al., 2018).
Characteristics and role of a manager
Manager is a person who is responsible for managing operations in the organizations.
Manager has the responsibility of planning, coordinating, directing and controlling. Manager has
responsibilities of employees of each department. Manager has power to take the decisions of
various functional units within organization. Manager of Toyota focuses on process and
procedure to run their business. Basic aim of a manger is to make the objectives of their
company and make different plans to achieve those objectives. Manager does not include in the
conflicts among employees. Managers mainly focuses on managing the work by using the
approaches like creating the strategies and policies. Manager plays a dictatorial and autocratic
role in the organization.
There are three important differences-
A leader focuses on innovations while manager organizes
A leader comes up with new ideas and kickstart to forward thinking process. A leader
always focuses on the horizon to develop new techniques and strategies to achieve the future
goals. A leader keeps immense knowledge of all the future trends. They show the clarity in their
purpose and visions. Manager is the person who only maintain the already established things and
process. It is very necessary for the manager to watch the bottom line while controlling the
employees and work flow in organization (Bligh, Kohles and Yan, 2018).
Manager push their employees while leader inspire trust
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A leader always try to push their employees to do work better. Leader know about their
follower that which employees is capable enough to perform effectively. A leaders set a tempo
for rest of the employees so they can work according specified time (Reid and Sanders, 2015).
On the other hand manager provide the work according to post of employees. They never think
about the capacities of an employee. So it will be very helpful for the manager of Toyota to
understand their employees so they can do their work more effectively.
A leader uses the conflicts as an asset while manager avoid the conflict
It is a big different between manager and leader. A leader always find the ways to solve
the conflicts among employees leader always involves in the discussion of employees to know
about their problems. Instead of this a manager avoid the conflicts among employees they never
try to involve in the personal discussions of employees.
LO2
P2. Duty of a leader as well as activities of a manager implement in various situational matters.
Implementing institutional theory in context of different situation-
Situational theories – According to this theory leader of the Toyota company will choose
the best action strategy according to the situation. This theory is practiced by the Paul heresy to
understand the organizational behaviour and working for the sub ordinates. This theory say that
there are different styles of leadership can be more appropriate for specific decisions for an
example- leader of a group in Toyota is one of the most knowledgeable and experienced person
in the organization. He can suggest the manager of Toyota company to over come from many
problems. Leader of the Toyota will make the strategy to influence their people in a specific
direction (Cassar and et.al., 2018).
P3 Application of management theories
Fayol has discovered six principles which includes different activities of as managers
such as – planning, organizing, direction, coordinating, controlling. These are the main roles of a
manager fayol has also developed 14 principles of management. For an example- Toyota is
facing the big problem of staff turnover due to their salary increments. So in this case manager of
Toyota need to make incremental plans for the employees to reduce the level of staff turnover
(Chiarini and Vagnoni, 2015.).
Strength and weakness of different approaches of leadership and management
Strength of situational leadership
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This leadership theory is used frequently used by the leaders within organization. Second
strategy of this approach is – this is very simple to realise, and it can well apply in different
situations. There are some leadership theories provide complex and complex and sophisticated
way to access the own leadership behaviour. It a straightforward approach that can be easily
used by the leaders the third strength of this theory is – it is closely akin to the strength of
practicality . There are many theories which are descriptive in nature but this theory is
prescriptive in nature. This theory helps to suggest the leaders that what he should do or do in
different situations. Fourth strength of this theory is – it emphasizes leaders flexibility. The
theory recognizes that employees act differently when they are doing different task.
For example: There is conflict arsing between two members while working in team at
the workplace. Therefore, leader identify the reason to conflicts and consulting with manager for
getting suggestion for solving the conflicts among the team members. This can aid to effective
team working in relation to completing the activities effectively within the firm. Also, managers
must communicate with both members and giving the solution about the conflicts at the
workplace.
Weakness
The first weakness off this theory is few researchers think that it is assumption based
theory. The second weakness of this is – ambitious conceptualization in the mode of employees
development stages. The author of this theory do not explain the theoretical changes in
composition of different development stages.
Strength and weakness of management theory
It helps to increase the production efficiency. It helps to improve the performance of
employees by selecting them according to their specialization of field.
Weakness - increase in performance will increase more work for the equal pay (Chiu, Balkundi
and Weinberg, 2017).
Administrators as well as leaders created an influences on company as well as recommendation
for upcoming betterment
Engaging employees through positive management it is a core responsibility of a
manager to engage their employees through positive management. A manager can make the
decisions in favour of employees as well as for organization. Manager set the objectives of
Toyota company and they determine that how to meet those objectives. A manger divides the
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work into the small tasks or activities so the employees can work more effectively and they
assign them to relevant employees of team. A manager clearly communicate and motivate to the
employees all these are the activities through which manager can made an impact on the
organization.
Recommendations
From above study it has been analyzed that administrators and leaders are the person who
responsible for the business activities. They need to work together to reach out the organization
objectives as well as for the welfare of the employees.
LO 3
P4 Key operational approaches of operation management and their value.
Toyota is using the informational model for their operations in creating and delivering
goods and services such as-car, engines. This model represent the three components of
operations input, transformation process and output. Operation department of the Toyota
including the systematic direction and control for the process which transforms resources (input)
into goods and services for the customers (output). Toyota has this model for the manufacturing
department.
Total quality management :
Focus on customers -Toyota is acquiring ghee customer satisfaction by improving the
quality of their products such as – car. Toyota must transferable themselves to foster a sense of
enjoyment a pleasure within every employees to enhance customers satisfaction.
Continuous improvement – the employees of Toyota motors company are very
competitive because they always try to learn something. Improvement and growth is their main
passion. This an important component of Toyota production system.
Total participation- it means employees engagement in activities to reach out the future
goals of the Toyota. It is a work force management strategy which is helpful to create
organizational culture by sharing the common goals and same missions.
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Approaches of Operation Management:
Total Quality Management: It is important concept to management of operation of the
business. It is determined administration theory to long term success through consumer
satisfaction. All staff members of firm includes in improving process, products and services as
well as culture in which they work in total quality management shared within the Toyota. There
are various principles such as consumer focused, procedure control, integrated system and
constant development.
Just In time: It is crucial theory to operation management follow by the Toyota. Also, it is
known as inventory management strategy whereby labour, material and goods which are re-filled
to arrive exactly when needed in production process.
P5. Important and value of operation management of Toyota
Toyota operation management covers all the 10 effective decisions with the efficient operation.
Toyota is using the different effective strategies for their operations, Toyota has become
an example for the successful operation management strategies at a global scale. There are many
reasons by which operation management is the very essential to very business in effective
manner.
Design of products and services- Toyota has addressed many strategic decisions by
using the strategy of technological advancement for providing the quality of services. Toyota is
investing capital behind research and development department for making their existing products
more effective (Popli and Rizvi, 2016).
Process design - Toyota is using the strategy of (TPS) to maximize the quality of their
services. Toyota is including the lean manufacturing that is also included in TPS strategy.
Company is also focusing on minimization of waste material for maximize the capital utilization.
Quality management- for this strategic area Toyota is using TPS production system.
Toyota has addressed this are of operation management through continuous improvement in their
products and services . Toyota has covers these problems with the use of management principles.
Location strategy- Toyota is using the global strategy, this strategy has included
different levels of approaches such as- local and regional levels. Toyota has address the strategic
decisions of areas by using the mixed set of strategies.
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Layout design and strategy – for this strategic decision area, Toyota is using the
strategy of lean manufacturing principle. Toyota is acquiring for maximum efficiency of work
flow. This strategy includes the decisions of dealers to meet the company's standard.
Job design and human resources- Toyota has made TPS strategies for this operational
area of management. Toyota respect all the employees across the world by conducting the
Human resource practices as well as procedures. Toyota has conducted many grooming activties
session on TPS to ensure about the lean manufacturing activity (Haddadian and Noroozian,
2017).
Supply chain management – Toyota has addressed the lean manufacturing strategy for
supply chain management. Toyota is using the automation system for real time adjustment to
accomplish their supply chain activities. Toyota is providing many benefits to their employees to
work more effectively to keep their supply chain strong.
Inventory management- for this strategical judgement of are a selected firm has adopted
the just in time inventory administration for purpose to decrease the size of inventory as well as
its comparable price. This strategy has involved in Toyota production system.
Scheduling -Toyota has addressed the lean manufacturing principle for this strategic
decision of area. Toyota is minimizing the operating cost for their operations. Cost minimization
is the responsibility of HR. They make the decision by identifying the market conditions.
Maintenance- Toyota is using the network of strategically located facilities to motivate
their global business. Toyota has global network of HR which supports the flexibility of
business. Toyota is producing optimal and stable productivity to integrate their business
resilience.
Key operational functions and roles and responsibility of manager.
Key function of operation management with the role of manager
Finance department- finance plays an important role in operation management. It is the
responsibility of manager to ensure that Toyota's finance has been utilized properly or not, for
the activities of other functions such as- production department, marketing department.
Operation management- this functional area is mainly concerned with planning,
organizing, directing, controlling, and other activities of an enterprise. It is a main responsibility
of manager of the Toyota company to control all the activities of different departments and make
some new strategies and plans, and set future objectives of the company to expand their business.
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It is a primary responsibility of a manager to supervise employees performance (Majidi and
et.al., 2017). Manager is responsible for day to day business operations.
Marketing – this functional department consist all the activities which can helps to
identify the needs and wants of the customers as well as their expected products and services.
Marketing function include many activities such as- promoting goods and services, pricing
strategy. Role of a marketing manager is find out the several marketing options for their
products. Nowadays manager of the Toyota company is using social media marketing because it
is one of the fastest growing sector.
Accounting department- employees of this department mangers with information needed
to make a decision about allocation of financial resources. This functional area is responsible to
provide the report of financial transactions such as- external and internal transaction. The
manager of Toyota is responsible for the preparation of financial statements to help business
entities both the sides (inside, outside). Accounting manager provides the report regarding –
budget allocation, cost and appraisals.
LO 4
P6 Influences of outside business surroundings factor that effects the decision making by leaders
and administrators.
Economic dimension- Inflation, interest rates and unemployment are Economic factors
for business. These elements can influences decision-making power of manager and leader.
Manger of Toyota company will set the selling prices of the motor cars according to the inflation
rate of currency of every country.
Technological factor- this factor is mostly helpful for the production department because
this factor helps to cover raw material into the products and services. So the managers of Toyota
should be aware about the technological services.
Socio- culture dimension- leader must be well studied about the social culture factors
such as- leader must understand the needs and demands of the customers in society (Heizer and
et.al., 2017).
Political and legal dimension- it refers to the government laws of business. It is very
important for an organization to establish a good relationship with the government by following
all the business laws and regulations.
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Global Concept- All company is virtually influenced through global concepts. Manager
of the Toyota company is following the global society concept to brought all the business
together. This concept will be helpful for every business to build a network of communication.
Ways to improve operational efficiency
There are 4 approaches to improve the operational efficiency-
Integrating work flow and reducing manual process- manager can improve the
efficiency of their operations to improve the internal and external customers services. Manager
of listed company will keep their business more transparent through providing the easy access to
real- time data.
Increasing efficiency by connecting business groups – manager of the company can
improve the productivity through communication. Manager will provide remote access and
enhanced reporting tool for the use of management.
Create effective business process to collaborate with other partners- it is a basic
responsibility of a manager to find out the sources that can help to meet the future goals of the
company. Toyota can improve their operational efficiency by collaborating with other local
companies of to the countries (Havermans and et.al., 2015.).
Conclusion and recommendation for the future improvement to be taken by the Toyota
Toyota should identify their strengths and weakness to expand their business in other
countries. Company can innovate in their motor cars by adding new valuable things it can be
helpful to attract more customers. Company should identify the global marketing opportunity
with the help of market segmentation strategy it will be helpful to attract more customers of
various big countries such as- India and china.
CONCLUSION
From the above study it has been concluded that management structure of Toyota is
transparent because of the effectiveness of manager and leaders. This report also concluded that
strength and weakness can affect the performance of the county in both the ways. Along with
this report also concluded the manager and leaders have made an impact on the organization. In
addition to this, the report also concludes influence of outside surrounding elements on decision
making factors of the organization. These factors explore in what ways managers and leaders
make their decision as per the external impacts observed in the organization. The roles and
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functions of the manger have been explored which concludes the decision making of both of the
leader and managers.
REFERENCES
Books and Journals
Alefari, M., Salonitis, K. and Xu, Y., 2017. The role of leadership in implementing lean
manufacturing.
Bligh, M. C., Kohles, J. C. and Yan, Q., 2018. Leading and learning to change: the role of
leadership style and mindset in error learning and organizational change. Journal of
Change Management. 18(2). pp.116-141.\
Cassar, V. and et.al., 2018. “The Times they are-A-Changin”: Reconstructing the New Role of
the Strategic Hr Manager. Management Sciences. Nauki o Zarządzaniu. 23(3). pp.3-11.
Chiarini, A. and Vagnoni, E., 2015. World-class manufacturing by Fiat. Comparison with Toyota
production system from a strategic management, management accounting, operations
management and performance measurement dimension. International Journal of
Production Research. 53(2). pp.590-606.
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