A Detailed Report on Management and Operations at Toyota Corporation

This report provides a detailed analysis of management and operations at Toyota Motor Corporation. It explores the roles and responsibilities of managers and leaders, differentiating between their functions and impacts on organizational goals. The report delves into Toyota's organizational structure, leadership styles (including situational and system approaches), and the impact of managers and leaders on employee motivation and organizational performance. It also examines key operational functions such as product design, quality management, supply chain management, job design, and inventory control. Furthermore, the report discusses the strengths and weaknesses of different leadership and management approaches, offering recommendations for future improvements, focusing on decision-making, technological advancements, and employee training. This comprehensive overview highlights how Toyota achieves operational efficiency and maintains a competitive edge in the automotive industry, emphasizing the importance of effective leadership and management practices.

Management & Operations

INTRODUCTION
Management and operations are the core of any business. They aim at implementing
strategic plans and policies at the workplace to enhance productivity and efficiency in the
organization. They focus at creating a positive environment and motivate employees to work
towards achieving organizational goals and objective. Management and operations aim at taking
an educated risk by implementing new technology and innovation in the organization to maintain
a competitive edge and increase profitability (Akalin, Huang and Willems, 2016).
Toyota Motor Corporation is a leading multinational automotive manufacturing company
founded in 1937 by Kiichiro Toyoda in Japan. Automobiles, luxury vehicles, commercial
vehicles and engines are the main products offered by Toyota.
This report highlights roles and responsibilities of managers and leaders and their
application to the different organizational situation according to theories and concepts. It also
includes the key operational function of managers and leaders to increase operational efficiency.
Furthermore, it highlights the impact of the external environment factors which affect decision
making capability of managers and leaders. This report also covers management and leadership
approach which increases operational efficiency and productivity of organization and
recommendations for future improvement.
TASK 1
P1 Roles and the difference between managers and leaders.
Introduction to Toyota and its management structure.
Toyota Motor Corporation is a multinational company which was founded in year 1937 by
Kiichiro Toyoda in Japan which deals in automotive manufacturing. Toyota is the world's second
largest automotive manufacturer. It's corporate structure consists of more than 3,50,000
employees worldwide. Since 2012, Toyota has also been ranking first in the world as the largest
auto mobile manufacturer to produce more than 10 million cars per year worldwide.
Toyota's headquarter is a four storeyed building situated at the Toyota city, Aichi. It is the
world's market leader in sales of hybrid vehicles running with the help of electricity where the
firm has tremendous growth in market of hydrogen fuel-cell. Thus, Toyota is the largest
company to promote mass adoption of hybrid vehicles across the globe.

Organisational Structure of Toyota
Divisional structure is a segregation of units in an organizational structure for effective working
of the Toyota which helps in increase decision making and higher productivity.
LEADER
The leader is a person who leads or commands the group and inspires people to achieve
organizational goal in a systematic manner. Leader motivates employees to increase their
productivity by building confidence and by bringing innovative and creative ideas which
commits them to achieve desired task effectively.
MANAGER
The manager is a person who control or guides employees of the organization to achieve
particular goal of the company. He is an expert who is responsible for running the organisation
and perform managerial functions like organising, directing and controlling. (Alvesson and
Kärreman, 2016).
DIFFERENCE BETWEEN LEADER AND MANGER
MANAGER LEADER
ROLES In Toyota Manager plans and
budget
Manager generally directs and
Leader creates vision and
strategy
Leader generally allow room
for other and change
Illustration 1: Divisional structure
Source: (Divisional Organizational
Structure, 2017)

control the team him or her process
FUNCTION  The manager of Toyota
maintains the team
 Manager of firm focuses
on system structure as it
supports systematic
management in
organisation with regard
to directing and
controlling.
 The leader develops
the team
 The individual is
responsible for
guiding and
influencing
workforce to
coordinate and work
together to attain
business objectives
CHARACTERISTICS  Time management- The
manager of Toyota
generally manages the
time in the best possible
ways
 Honesty – manager is
most honest person in
terms of work they do
 Confidence – managers
are the confident
individual of firm which
direct employees’
activities
 Confidence – leader
are generally
confidence in what
they do
 Innovation – leader
is the most
innovative person
and creates the best
ideas (Hitt, Xu and
Carnes, 2016).
 Leader creates
culture integrity
 Positive mind set –
Leader are very
positive person

P2 Analysis of different roles of management and leadership in application to different
organizational situation, supported by theories and concepts
In case of conflict: There are various conflicts in the organization like inter-
organizational conflict, individual conflict, interpersonal conflict, line-staff conflict, role conflict,
which hampers productivity at workplace and also causes stress and dissatisfaction which leads
to higher absenteeism and turnover. Management aims at resolving conflicts in the organization
by identifying and anticipating conflicts and finding necessary solution to the problem. They
focus on maintaining relationship where employees address their conflict whereas a leader step
in to solve the necessary problem by finding optimum solution which helps resolve issues in the
organization and increases operational efficiency and productivity. Situational approach:
Conflicts arises when there is miscommunication or disagreement between employees in terms
of values and interest. This approach focuses on applying those leadership styles according to the
situation and train employees to develop positive attitude among teammates to increase
efficiency (Küpers, 2016).
In case of employee turnover: Management and leaders take effective measures to
reduce employee turnover rate so that company can perform more effectively and efficiently.
Management and leaders aim at creating a culture which is transparent and open to
communication which increases employee commitment towards organization. Management also
aims at proper and effective training to employees which helps build their skill. Leaders aim at
recognizing and motivating them which helps retain prospective employees in the organization.
System approach: Management and leaders aims at creating an environment where employees
can work at all level of organization effectively and efficiently to increase productivity and
profitability of the organization. Toyota aims at using strategies and tools which enhances their
skills and help achieve organizational objective and retain prospective employees in the
organization.

P3. Strength and weaknesses of different approaches to leadership and management.
Different Approaches to Leadership and Management
Approaches Strengths Weaknesses
System leadership – It is an
undisputed leadership style
which states that each part of
organization is interrelated and
work as a whole to achieve
organizational objective.
1) It is adaptive in nature and
allows leaders to create
conditions where people at all
levels can work productively
according to their potential.
2) This approach provides a
platform where different
departments in organization
interrelate in same unified
direction for better interaction
to achieve desired goal.
1) It is not a practical approach
which leads to delay in the
decisions making process.
2) It is not always applicable to
the smaller organisations
because this theory does not
provide uniformity and is very
dynamic in nature. This theory
is best suitable for large
organization to deal with
complexity.
Situational leadership – It is a
flexible approach to
leadership. This approach aims
at adapting style of leadership
according to a particular
situation.
1) It is practical and easy to
implement with right
leadership style according to
the situational need.
2) It has been in the market
since a very long time so
therefore, it is being used a lot
to train leaders in an
organisation.
1) A small number of related
research studies are conducted
to justify assumptions due to
which questions are raised on
its theoretical basis.
2) It is not clear that how the
model matches with the style
of the leader in context with
the prescription of the model.
Contingency Approach – It
deals with different types of
leaderships ideas, as effectivity
in leadership comes when the
style of leader matches the
situation.
1) It is the best type of
leadership which emphasizes
the importance of a leader's
styles and demands.
2) It provides data on
leadership styles that are
useful in developing leadership
1) Inadequate amount of
literature is a problem in this
theory because of
impracticality to this approach.
2) It is basically complex, so
there are problems at the time
of testing the precepts of the

profiles for human resource
planning in an organisation.
theory.
IMPACT OF MANAGER AND LEADER ON TOYOTA
The role of the manager and leader in Toyota is the most significant in terms of impact on the
organisational performance. Manager and leader of Toyota have most direct influence on
employees. They carry a great set of responsibility for aligning the performance of their
department and its staff to accomplish organisational goals and also manager and leader shape
the organisation culture. Leader of Toyota innovates and creates the new idea give opportunity to
the employee to become the best among all. Leader and manager of Toyota provide a clear
vision and mission to the Toyota and motivate the employee to work accordingly, so employees
of Toyota are highly motivated Leader and manager build and support a strong and well
executed performance management culture is one of the key areas in which the manager can
impact on the business result (Chiarini and Vagnoni, 2015).
Manager and the leader engage the employee through positive management in which
manager and leader both appreciate the employee they knew very well that each member is
different and know how best to deal with each employee and also, they focus on employees'
strength. In Toyota there is friendly environment and employees are working without conflict
the flow of communication in Toyota is good by the help of leader and the manager both
communicate the policies and the plan to the people and also encourage the employees for
contributing and discussing new ideas so employees feel positive and motivated. As manager and
the leader work hand to hand a good manager it requires leadership skills and effective manager
depend upon managerial skills. By all there Toyota accomplishing its goals very fast day by day.
For example, leader takes decision of technological advancement at workplace and accordingly
gives training to staff members.
RECOMMENDATION FOR FUTURE IMPROVEMENT
For the future recommendation for Toyota leader and manager are that to make more high
quality of decision for that goals can be accomplish by the employees and employees feel more
motivated. And also change in the technology, in Toyota a proper training session must be

provided so that employee work in the more confidence and employee learn technology
advancement very fast and also leader and manager must have a long term vision so that
employees are motivated in Toyota.
TASK 2
P4 Create value through the key operational approaches to operations management -
key operations of the Toyota
Product Design – The product and its design are key factor for Toyota. Products that meet the
need of customers and its designs has created the success path for Toyota because it always
attracts people. Toyota invests in R&D to know about the customers' demand and tries to fulfil
them through provide advance features in products (Marshall, Coleman and Reason, 2017).
Quality Management – Toyota uses Toyota Production System (TPS), in which quality is an
important factor. Quality management of Toyota has been successful as Toyota always provide
its customers quality products.
Supply Chain Management – Toyota uses Lean Manufacturing for the supply chain
management, in which resources are being uses effectively to reduce wastage materials. Also,
Toyota uses automation systems to control the wastage materials.
Job Design – Job design is a crucial factor of operational management which includes jobs and
responsibilities creation according to the requirement of Toyota. Also, Toyota conduct its own
training programs.
Inventory Control – Inventory control ensures the availability of inventory so that production
department of Toyota do not face any issues regarding inventories. Toyota minimizes inventory
levels through just-in-time inventory management which focus on efficiency of products, cut the
costs and reduce the wastages (Yilmaz, Tanriverdi and Durak, 2016).
operational functions and identify the roles and responsibilities of managers in the key
operational functions
Product design is a process of making or creating the products which is required to meet the
demands and needs of the customers. Managers of Toyota have to analysis the market and keep
him updates with the technologies being used in automotive industry in which Toyota works.
Quality management is a concept in which the quality of products or services are taken care of.

Managers of Toyota have to prepare the budgets for the Total Quality Management and also
prepare and maintain the standard quality of the products.
Supply chain management is the management of products through its supplier to the end user of
the product. Managers of Toyota have to prepare the strategies for the supply of the products to
the end users of the products.
Job Design is a framework in which HR manager focuses on creating a relationship between the
duties, roles and responsibilities of the employees and his work to achieve the organizational
goals(Peterlin, Pearse and Dimovski, 2015). Managers of Toyota need to create coordination
between every operational departments so that Toyota can achieves its goals and objectives.
Inventory control involves the assessment of raw materials, finished goods, tools, fittings, spares
etc. It ensures the availability of inventory in organization. Managers of Toyota need to special
take care of flow of shares in and out of the Toyota.
Key approaches
TOTAL QUALITY MANAGEMENT – Total Quality Management helps the Toyota to identify
the needs of customers which leads them to produce the qualitative products which satisfy those
needs. Like this Total Quality Management create the value for Toyota by identifying the needs
of end users.
SIX SIGMA – By applying six sigma methodologies and tools, it improves the quality of
products and eliminates the defects which exists in the products. Like this Six Sigma increases
the customer satisfaction, customer loyalty and provide them high quality product at lower cost
which helps the creation of values for the Toyota (Saucedo-Martínez et.al., 2018).
LEAN MANUFACTURING SYSTEM – By implementing Lean Manufacturing, Toyota reduces
its wastages and its cost of transport, inventory, motion, waiting, over-processing,
overproduction, and defects, which lead them to produce the qualitatively products at lower cost
and this is what customer wants which create the value for the Toyota.
P5 Importance and value of operations management
Operational management helps in managing day to day activities of Toyota which
enhances productivity of the organization and also helps in effective decision making. Operation
managements helps to attain desirable use of resources in cost efficient manner and increased
profitability by performing functions like planning, organizing, directing controlling in efficient
manner.

Toyota focuses on fundamentals and uses modern technology and tools to increase productivity
and profitability of organization and improves quality of production. It uses total production
system by optimally utilize resources in most cost efficient manner(Solomon, Costea, and Nija,
2016). Toyota focuses on its key factor which is product designing and invest themselves in
research and development which attract large customers from all over the world. Toyota focuses
on lean manufacturing for supply which reduces wastage and increases productivity.
Recommendations for future improvement:
 Toyota should aim at taking educated risk and try new things and adapt to constant
change which helps them maintain competitive edge and achieve desired goal and
objective.
 Toyota should aims to focus on using fuel efficient and eco-friendly tools to improve
operational efficiency and aims at targeting large customers to increase sales.
 Continuous improvement models and strategies should be implemented to maximize
results and to improve performance of the company.
P6 Evaluation of the impact of external business environment factors that affect decision making
by leaders and managers
Factors which are outside the control of organization is known as external environment factors.
Toyota is the leading player and there are various external factors such as political, social,
economical, technological, environmental and legal which influence the working of organization
and impact decision making of managers. Analysing and interpreting external factors help
managers in shaping the future of organization by making strategic decisions to reduce
competition and threat to the organization(Shin et.al., 2015).
Economic factors which influence decision making of managers and leaders are inflation rate,
interest rate, exchange rate, economic growth rate, disposable income of consumers,
unemployment rate and market trends. At the time of recession Toyota faces downturn in sales as
customer buying capacity goes down. Managers and leaders focus on making strategic decision
to control such economic downturn so that company can improve its productivity and
profitability and accomplish goal and objectives of the organization.
Technological factors such as innovation, automation, research and development, information
technology, social media platforms and digital network has great influence on automobile

industry like Toyota. Rising use of modern technology trend, e-commerce benefits company to
shape organization effectively and increasing sales. It helps managers and leaders to make
effective decisions which increases sales and modify their products by making more fuel
efficient and eco-friendly cars.
Corporate culture means that different employees in the organization have varied values, beliefs,
viewpoints which affect relationship between employer and employee and leads to slower
productivity. There is varied perception and longitudinal barrier in the organization. Managers
and leaders need to make the rules and regulations according to the values and beliefs of
employees this will support them in retaining employees.
Corporate Social Responsibility- Government has implemented the rules that every organization
has to contribute 2% of profit in CSR activities for decision making of managers and leader will
be affected because of this policy.
Appropriate management and leadership approaches to improve operational
efficiencies to successfully meet business objectives of Toyota.
Management of Toyota focuses on achieving long term goal of the organization by
maintaining healthy organizational structure which increases efficiency of the organization.
Management aims at reducing waste and optimally utilizes resources by reducing cost and
increasing productivity by taking educated risk and adjusting to constant change(Slack and
Brandon-Jones, 2018).
Quantitative management approach : This management approach focuses on solving complex
business problems by studying quantitate data and using quantitative techniques like financials
and inventory valuation, statistics, to increases efficiency in decision making.
Leadership helps employees to perform effectively and efficiently to deliver higher performance
at workplace through motivation and strong relation between employer and employee. Toyota
uses various leadership approach to enhance operational efficiency and to meet business
objectives.
Situational approach: It is a leadership style which is used by organization to meet the changes
according to the particular situation. It is a top down approach and a two way communication
process helps employee to work in a particular direction to achieve desired goal. This approach

motivates employees to perform tasks which are delegated by leaders to monitor and review the
process.
System leadership: Toyota enables the leaders in the organization to create environment where
employees can work productively at all levels of organization it increases operational efficiency
and achieve goals and objectives of the organization. They continuously develop strategies, tools
and policies to strengthen organizational structure and increase productivity of workers.
Contingency approach: It is the best type of leadership which states that the efficiency of
organization depends on the chosen leadership style according to the particular situation. It also
states that there is no best style of leadership.
CONCLUSION
From the above study it has been summarized that management and leaders are the key
asset to organization to guide them to achieve desired goal and objective of the organization. The
main objective of management is to strive employees to make them work towards achieving
organizational goals to increase productivity and profitability of the company. It also concludes
that implementation of various management approaches at workplace enhances quality and
reduce wastage by optimally utilizing resources in the most cost efficient manner. This study
also highlights the importance of leaders in the organization by implementing various leadership
styles according to the situation which increases operational efficiency and help achieve
objectives of the company. Effective leadership in the organization helps set clear vision and
motivate employees to perform better at workplace by executing right strategy and leadership
style.