Organisational Behaviour at Toyota: Impact on Performance

This report provides an in-depth analysis of Toyota's organizational behaviour, focusing on how organizational politics, culture, and power dynamics affect individual and team performance. It examines the influence of culture, including role and person cultures, and the impact of different types of power such as reward and coercive power. The report also explores the positive and negative impacts of workplace politics on employee stress, productivity, and overall performance. Furthermore, it delves into content and process theories of motivation, specifically Maslow's Hierarchy of Needs and Vroom's Expectancy Theory, and their application within Toyota. The report also discusses effective and ineffective team characteristics. Finally, the report concludes with a summary of the concepts and philosophies of organizational behaviour in the context of a business situation.

Organisational
Behaviour
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Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of how an organisation’s politics, culture and power impact on individual and team
behaviour as well as performance...............................................................................................3
Content & process theories of motivation along that enable an organisation to attain objectives
.....................................................................................................................................................5
Effective and Ineffective teams...................................................................................................7
Concepts as well as philosophies of organisational behaviour in context of business situation
...................................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Organisational Behaviour define as the set of different activities which assist managers of a
business entity in order to understand the behaviour and attitude of staff members. It has been
identified that this will aid it enhancing the efficiency of performance of staff members which as
a result assist in attaining organizational goals and objectives. The current report is based on
Toyota, which is a Japanese multinational automotive manufacturer and its headquarters in
Toyota, Aichi, Japan. This is a largest automobile manufacturing company in Japan where the
number of employees is around 364,445 in number across the whole wide world. In this report
detailed information related to companies performance and productivity which gets influenced
by the power, politics and culture. In addition to this, explanation related to effective and
ineffective teams are also includes which consist of different theories. Furthermore, concept and
philosophies related to organizational behaviour are also included in the current report.
MAIN BODY
Analysis of how an organisation’s politics, culture and power impact on individual and team
behaviour as well as performance.
Organisational behaviour define as the study related to how individual act among the
organization. Major aim of the organisational behaviour is to understand the behaviour of
employees which have their direct influences on the profitability and performance of the
business entity. In the present context of Toyota, it has been analysed that organisational culture
have their direct influences in the overall performance of the company. Below mention are the
discussion about culture, power as well as politics within the business organisation are as
follows:
Culture: Combination of various types of assumptions, values and beliefs of the business
entity which have their influence over the attitude and behaviour of individual as well as on the
team members. In reference to Toyota, main emphasize of HR manager is to create a positive as
well as secure working business culture. It has been identified that different types of culture are
there which affect the performance of employees are going ti be discussed as follows: Role culture: This sort of culture says that every individual within the organization have
their clear roles which as a result aid them in order to perform their task in a well defined
manner. In reference to Toyota, human resources manager of the company assign all the
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task to the workers as per their skills and capabilities. This as a result help in
accomplishing pre defined goals and objectives.
 Person culture: If talking about person culture, it is said that this focuses on the
individual person within the business. In relation to Toyota, manager conducts training as
well as development session for their staff members on daily basis which assist in
improving the skills of the person related to their task.
Power: Power define as the capability of an individual which can easily affect other staff
members working within the organization. In relation to Toyota, it has been identified that
majority of power within the business entity is owned by higher authorities of the business
organisation. Different types of power within the workplace are going to be discussed as follows: Reward power: This type of power is usually adopted by Toyota manager in order to
influence the staff members interest by providing them monetary advantages for working
in an effective manner. In addition to this, with the help of providing monetary benefits
they will be able to perform their task in a well defined manner.
 Coercive power: This sort of power is adopted by the staff members in order to work
without their will for accomplishing goals and objectives of the company. In reference to
Toyota, higher authority avoid such kind of power as this might affect their business
functions in long run.
Positive and negative impact of power
Positive
In an organisation where power is kept with higher authorities enables the company to
achieve it's objectives more efficiently, as a proper code of conduct is followed therein. Each
department of workforce is well organised and also have sense of responsibility towards each
other.
Negative
In an organisation where power is kept with higher authorities leads to delaying in work
as work is to be passed with the various stages of centralisation. The company having
centralised authority may face difficulties such as frustration, delay in works and many more.
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Politics: Politics define as the interaction among individuals within the workplace which
consist of power and authority. It usually considered as a negative manner which creates adverse
influence over the performance of employees. In reference to Toyota, it is said that politics have
the influence to affect the performance as well as profitability of the company. Increases the stress level among staff members: Politics among the workplace of Toyota
develop negative impact on the behaviour and creates jealousy between the workers, this
as a result create stress level at the working environment. As a result, performance of
employees gets influenced due to excessive stress. Therefore, politics consider as a
negative impact on the performance of employees.
 Decline in productivity: Most effective adverse impact which is developed due to politics
is that productivity of staff members get affected in an adverse manner. In relation to
Toyota, employees of the company face negative impact due to politics arise at the
workplace. This affect the overall profitability and productivity in an adverse manner.
Reason behind this is employees feels distraction due to unnecessary conflicts, which do
not allow them to concentrate towards their task.
With the aid of above discussion, it has been said that all these factors highly affect the
performance of staff members in an adverse as well as positive manner. Managers if Toyota need
to develop positive working environment so that every individual feel satisfied and motivated
while working in the organization.
By the help of factors that is culture, politics and power, the company is able to impact
positively on the behaviour and performance of teams as well as individuals. In context to
culture, role culture is followed by Toyota as it assist in developing interest of employees
towards their work as they are assigned activities as per this skills, competencies and knowledge
level. The higher authorities of Toyota focuses on developing positive politics and ensure that
positive working environment is maintained at workplace. In relation to power, rewards power
assist company to motivate its staff members as they get rewards of their good performance. It is
determined that if employees is getting appreciation in front of all the employees then it develop
confidence and boost their morale which will lead to raise in performance as well as profitability
of company.
Positive and negative impact of politics
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Organizational politics is defined as competition of ideas and various method that helps
in making new decision and new strategies within any organization. The positive impact of
politics in organization helps in distribution of tasks, proper motivation and morale is
maintained, enhance efficiency and output, positive debate on works, increase in coordination,
confidentiality, and help in governing own behaviours. The negative impacts of politics in
organization usually create difficulty in distribution of task within team, also create impact
concentration, change in attitude of employee happens, loses interest towards works, due to this
stress level enhance and employee get demotivated and overall employee performance degrade
as per time.
Content & process theories of motivation along that enable an organisation to attain objectives
Motivation is defined as the process which guides, initiates and maintain goal oriented
behaviour. In addition to this, it is defined as the process that arouse an individual to achieve its
desired goals in a timely and effective manner. In context to an organisation, motivation is
basically an ability of a leader and manager to influence or encourage staff members to put their
full potential in order to meet with the targets in an effective manner. If it is taking about Toyota,
it uses various techniques in order to motivate staff members such as it provide both monetary
and non-monetary rewards such as promotion, appraisal, insurance, family holiday packages and
soon. The company give rewards to its employees in front of all the staff members which make
them feel valued and develop confidence level as well. Moreover, the company also allow staff
members to participate in the decision making process which motivate them and bring out
innovation at workplace. All such techniques help company to encourage its employees and
attain objectives within stipulated time period. The higher authorities of Toyota make use of
Maslow’s hierarchy need theory and Vrooms Expectancy theory as a content and process theory
respectively. This theories is given below in relation to Toyota:
Maslow's Hierarchy Theory: It is consider as one the most effective and appropriate
theory in order to motivate staff members in an effective manner. This theory assumes that need
of an individual is increase when the lower level is satisfied. It consist of five needs that is from
basic need to self actualization need, which are as follows:
Psychological need: It is also known as basic needs that is water, food clothes, shelter and
so on. This needs are important for a person to survive and performing properly. In relation to
Toyota, its higher authorities give salary to its employees that enable them to satisfy such
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requirements in a proper manner. In addition to this, it also decline the mental pressure of
employees due to which they are working in an effective manner.
Safety and security need: This need is arise after the fulfilment of basic needs and involves
job security, financial security and so on. With reference to Tesco, it ensure job safety of its
employees and also liable for the safety of its employees.
Social need: It involves needs such as family, friends, sense of belongingness and many
more. In relation to Toyota, its higher authorities conduct informal session in order to make
employee feel a friendly environment at workplace. In addition to this, it managers also interact
with staff members personally in order to gain knowledge about issues of its staff members.
Self-esteem need: This theory state the need to be respected in the society and self respect
as well. If it is talking about Toyota, its managers give appraisal to its employees on time period
that help in developing status in society in an effective manner.
Self actualization need: It is consider as the last need of Maslow’s theory that refers to
person’s potential, seeking personal growth. Self-fulfilment as well. In relation to Toyota, the
company provide training session to employees due to which they gain both personal and
professional growth.
Advantages and Disadvantages of Msalow’s theory:
Advantages: This theory assist business entity to analyse the needs of employees that is
fulfilled by them in a proper manner. This help company to enhance the efficiency and
performance level of company.
Disadvantages: It is analysed that all the individuals did not think in a same manner that
is for someone social needs is important whereas for others safety and security needs is
important. This develop confusion and sometimes dissatisfied employees prevailing within the
organisation.
Vroom expectancy theory: This theory was proposed by Victor room in 1964 and involve
three main factors that is Expectancy, Instrumentality and Valence as well. These are discuss
below in relation to respective organisation:
Valence: It is defined as the value that a person place on a specific activity in order to gain
the expected reward or outcome as well. For this, it is significant for the managers of Toyota to
instruct employees so that all the activities is carried out in a systematic and smooth manner.
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Instrumentality: It is the second level of outcome that is basically the extent to which first
level leads to the second level outcome. For instance, in order to get promotion it is important for
employees of Toyota to give superior performance that is first level outcome.
Expectancy: It is defined as the probability that a specific action will leads towards positive
and desired outcomes. In addition to this, it is related to the efforts that a person put in order to
gain first level outcome.
Advantages and Disadvantages of Vroom’s expectancy theory:
Advantages: This theory is based on self-interest person who want to attain maximum
satisfaction and decline dissatisfaction. Vroom’s theory focuses upon expectations & perception
that impact on performance of an individual positively.
Disadvantages: One of the main disadvantage of such theory is it does not explain various
levels of efforts that is performed by a person with full potential.
This motivational theories help company to encourage its staff members to work with full
zeal in order to achieve objectives and desired goals of company. In addition to this, it assist in
developing positive mind set of staff members that impact positively on the performance and
profitability of the organisation. Furthermore, such theories assist in retaining employees for
longer time period and enhance their revenue level in an appropriate manner. In this the main
focus of business organisation to motivate their workers towards the job roles by satisfying their
needs and wants at working area. Motivated employees are always give their best efforts for
accomplishment their targets in allotted period of time. This will directly contributes in retaining
workers for longer period of time that assist in reducing the employee turnover. Along with this,
when employees are enough motivated towards their job roles than they put their valuable efforts
for attainment of their set targets in an effective manner.
Effective and Ineffective teams
Team: a team can be defined as a group of individual or people for working together to
achieve a common objective. Under this group of people, teacher and every person perform
different roles and responsibility according to their skills and ability to achieve the goals of the
team.
Tuckman team development theory
This theory was developed by Bruce Tuckman in 1965 which is based on five stages of
team development. The stages are forming, storming, norming, performing and adjourning.
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These stages are based on a time period of a particular team formation to achieve the objective
and ending of the team. All the stages in relation to Toyota are mentioned below:
Forming stage: It is the first stage in the team development theory which is related to
forming a group where each and every member family rise themselves with each other as well as
their roles and responsibility.
Storming stage: Under this page there is beginning of a relationship between different
individuals where they start reaching at a point where they become aware about the
characteristics of different persons within the team.
Norming stage: Under the stage, each and every individual with the team started
appreciating and noticing the team members France as well as work together to form effective
team which can work in an effective manner by achieving the goals and objectives. At this stage
each and every member tries to reduce the conflict but covering the weakness of other members
and fulfilling their roles and responsibility within the team.
Performing stage: In this stage each member of the team has a confident and motivation
and their familiar enough each other so that they can perform under a particular supervision by
achieving the goals and objectives and using a resources in an appropriate manner.
Adjourning stage: it is a last stage and this process where the team will end because of
achievement of their objectives for fulfilment of their targets for which the team is formulated.
It can be evaluated the disappearing and implemented by Toyota to formulation of
effective team for different tasks performed under the supervision of leaders within the firm. Use
of this theory provides guidance to management staff for achieving their goals and objectives
relation to team development.
This theory has different advantage and disadvantage in relation to Toyota which are
discussed below:
Advantages:
 The major advantage of this model is that it helps in clarifying the specific stages of team
development which help in developing team in a stage process. In addition to this, one more advantage of using this system is that it help in decreasing
the primary and secondary tensions related to resolving conflicts within the team by
managing effective relationships.
Disadvantage
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 The major drawback of this theory is that it consists of five different stages which is
difficult to maintain by a single leader within a group. It is also difficult to pass
instructions and follow each and every instruction in an effective way because of
improper communication or communication barriers.
Belbin team roles model
This method was discovered by Meredith Belbin. Under this method define different kind
of team role behaviour which has to be performed by the individuals working within the team to
achieve the goals and objectives of the team in an effective manner. In relation to Toyota,
management staff of the organisation can also use these roles and responsibilities within the team
which are discussed below:
Resource investigator: In relation to this role, individual within the team has to use
inclusive nature to find ideas to bring back to the team.
Teamwork: In relation to this role, individual has a capacity to identify the work
requirements within the team and perform the work on behalf of team to achieve the objectives.
Coordinator: Under this role within the team and individual need to focus on the team
objective so that it can easily co-ordinate with the team members and delegate the work
appropriately.
Plant: Under this role of this model, individual needs to be highly creative and good at
solving different problems in unconventional ways to achieve the objectives of the team as well
as organisation.
Monitor evaluator: In context of this rule it provides a logical I and making impartial
judgement when it is required and wakes up on the team option of passionate way.
Specialist: Specialist role with the team bring depth knowledge of a key area within the
team which is related to the working environment of. The team as well as the area where the
team is working.
Implementer: under this role, individual required to be a planner as well as a worker who
can implement the strategies by managing the resources in an efficient way and according to the
requirement of team.
This model can also be used by Toyota to define the roles and responsibilities of the
members within the team in relation to achieving the goals and objectives and managing
resources accordingly.
This model also has various advantages and disadvantages which are discussed below:
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Advantages
 This model helps in identifying the roles and responsibilities of individual where The
organisation established cooperative, participating and diplomatic environment. This water is also helpful in reducing the conflicts by providing maturity confident and
identifies the talented employees who perform the roles and responsibilities in an
effective manner.
Disadvantage
 The major disadvantage of this model is that it is impossible to define the role of each
and every individual as well as find the person according to the requirement of the team
which can impact on the performance of model and implementation of the model on the
team.
Challenges in front of organisation while forming effective team
There are different challenges in front of organisation like Toyota while performing the
function related to formation of effective team within the form some of these challenges are
mentioned below:
Role uncertainty: It is a major challenges faced by the organisation while forming
effective team where the manager has to define the rules of each and every individual in the team
to perform in collaborative way for achieving the goals and objectives.
Lack of trust: Low level of trust also act as an barrier in formation of effective team
because manager as to make effective decisions while forming a team and due to lack of trust on
employees and their skills manager hinders to provide big responsibility to individuals within the
team.
Unclear goals: Lack of clarity within the goals is also factor which impact on the
functioning of a team as well as formation of effective team. This is because due to improper
functions within the organisation there is low level of clarity in goals impact on the formation of
effective team.
In the end it can be evaluated that Toyota is a global organisation where form can adopt
determine theory of team development to develop effective teams within the organisation and
achieve the goals and objectives in timely manner. This will minimise the operating cost of the
organisation as well as help in increasing productivity and profit. Both Tuckman and Belbin
model put its positive impact in team building in which, leader of company provide them clear
goals in which they employees perform their task and activities. With the help of Tuckman
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theory team members are tackles each and every task and the initial formation of the team they
can complete the entire task activities in an effective manner. By building a team, leader can
easily influence and encourage their workers to give their better contribution for attainment the
same. In addition to this, Belbin team roles also assist team members to adapt to changing goals
by determining the strength and also eliminate the weaknesses. This will assist in making team
able to more cohesive in changing working environment.
Concepts as well as philosophies of organisational behaviour in context of business situation
Path goal theory: It is defined as a leadership theory which specifies behaviour and style
of leader that fit in the working environment and performance to attain specific objectives. This
theory mainly focus on motivation and empowerment of staff members so that they are active,
productive, involve and efficient as well.
There are mainly four styles involved in the path goal theory, which are as follows:
Directive: It is defined as a situation where staff members have the knowledge about
what is expected from them and how to perform the task as well. This impact positively on the
behaviour and attitude of employees due to which activities is implemented in a proper manner.
Achievement: This is a situation where leaders set challenges and objectives for the
employees so that they give their best and performs at high level. This develop confidence in
employees to work with full potential in order to achieve objectives.
Participative: In this style, leaders ask staff members to give suggestion so that a mutual
decision is made. This make employees feel valued and important at workplace and boost their
morale as well.
Supportive: It is directed towards fulfilment of employees requirements as well as
preferences. It assist respective organisation to develop a string relationship with employees and
enhance their productivity of performing activities and operations as well.
Advantages and Disadvantages of path goal theory
Advantages: This theory is appropriate for the uncertain situation in relation to time
constraint. In addition to this, it is flexible and the ideas are easy to convey and follow as well.
Disadvantages: If the leaders is not influential then theory becomes a failure. Along with
this, path goal theory influence high dependence and reliability on the leaders.
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