Strategic Change and Innovation at Toyota Motor Company: A Report

This report provides a comprehensive analysis of change management strategies within Toyota Motor Company. It explores the critical role of leadership styles, such as the shift from autocratic to democratic or participative approaches, in fostering employee involvement, motivation, and loyalty. The report examines the impact of organizational culture, specifically the need to transition from a task-oriented culture to one that values employee input and creates a flexible work environment. It also highlights the importance of technological advancements, emphasizing the need for Toyota to adopt new technologies and train employees to minimize resistance and maximize operational efficiency. Furthermore, the report underscores the significance of effective communication, motivation, and the ability to manage resistance to change to ensure the successful implementation of strategic initiatives and maintain a competitive advantage in the automotive industry. The analysis concludes by emphasizing the interconnectedness of leadership, innovation, and culture as key factors in driving positive change and achieving organizational goals, ultimately enabling Toyota to adapt to market demands and retain skilled employees.

Debates in Strategic Management

Contents
Introduction......................................................................................................................................2
Main body........................................................................................................................................2
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
Change management is considered as systematic process that is adopted by firm to
manage changes in the organization in order to accomplish business goal. With the rapid
changing market conditions, it has become essential for the firms that to make effective
alteration in entity so that innovation can be implemented in order to raise performance of
corporation (Armstrong, 2016). Present study is based on Toyota motor company, entity provide
high quality automobile products to its consumers in order to enhance their satisfaction level.
Current report will discuss factors of management within organization that emphases on
innovation and change.
Main body
In the modern era technological upgradation, high competition create issue for the
management of the business that to run their business in smooth manner. Staff members like to
work in such environment there they get more development opportunities and growth (Serrat,
2017). In such condition it is essential for the management that to make necessary changes in the
business so that it can retain its skilled employees in workplace and can sustain in the market for
longer duration. Change management support firms in gaining competitive advantage and
performing well in market.
Toyota is working in automobile industry where cited firm is facing high competition.
Audi, BMW etc. are biggest competitor of the firm that creates pressure on business that to make
some changes in operations so that it can gain competitive advantage. Management of the firm
always concern about its employees (O’Connor, 2018). It believes that workers are assets of the
firm. If they are not satisfied then company may not be able to perform well in the market. Staff
turn over is the serious management issue that is faced by Toyota motor corporation. There are
many people those who are leaving their job and moving towards other competitor. It is because
of poor workplace environment. Management of the cited firm do not involve employees in
decision making process. Staff members of Toyota has to work in strict environment and have to
work under pressure. That is why they feel dissatisfied and they think to leave their job soon.
Recently company is implementing autocratic leadership style where all decision is made by
higher authorities. Though company gives reward to the workers but strict environment create
difficulty for them to retain in firm for longer duration. In order to resolve this issue cited firm is

required to emphasis on change and innovation. Toyota s required to adopt democratic or
participative leadership style (Burke, 2017). It is the type of leadership in which management
involves employees in decision making process so that people like the workplace and perform
their duties. Democratic leadership believes that if workers are getting involved in decision
making process then it will raise their confidence and they will be loyal towards the firm. In such
condition they will share their innovative ideas with the management that will support in brining
positive changes in business. This is the way through which overall performance of Toyota can
be improved (Drucker, 2018).
Changes in leadership assist Toyota in raising confidence of employees and making them
feel valued in the firm. By this way they put their hard efforts in order to meet with
organizational goal. Changes in leadership helps in resolving conflict situation because it will
help in enhancing communication between managers and employees thus, confusion can get
minimized. It is the way that help the firm in brining positive changes in the organization
(Rasiah, 2017).
Culture is considered as believes, values of the company. Each firm has its own culture
and it runs its business on the bases of this cultural aspect. Culture plays significant role in
business unit, it assists in improving workplace environment and retaining staff members in
organization for longer duration (Felin, Lakhani and Tushman, 2014). Toyota has task culture,
where employees are given responsibilities and they have to complete their given task. If culture
of the entity is not good then it may create difficulty for management to retain staff members in
organization for longer duration. Currently Toyota do not give power to employees to take their
decisions. They have to follow instruction of higher authorities. Company does not provide them
flexible environment that is why people think to leave their job. They feel frustrated because they
have to work in tough environment. Culture is essential management factor helps in brining
positive changes in business unit. Toyota is required to improve its culture (De Stefano, Montes-
Sancho and Busch, 2016). It has to treat its staff members well. By creating flexible environment
by developing personal culture company can grow well. It cited firm is implementing personal
culture where it develops personal relationship with employees. Then management will be able
to identify their needs and will be able to fulfill their requirements. It will assist the entity in
brining positive changes in culture and company can grow well.

Brining change in firm is very difficult. Whenever company plans to make changes in its
leadership or culture then people resist these changes. In such condition it becomes difficult to
manage changes in the firm (Key Factors of Change Readiness for the Success of Management
Innovation in Manufacturing Industry, 2015). It may create conflicts and firm may fail to
perform well in market. Modification leads confusion in the mind of employees and they feel
dishearten. In such condition they do not perform their work effectively. In such situation it is
essential for the management that to motivate people and brining innovative ideas that can help
in raising confidence of staff members and they perform well in the workplace. Management has
to identify needs of workers and have to encourage them by giving rewards and recognition. In
such condition people will feel motivated and they will share their innovative ideas with higher
authorities. Motivational aspect supports managers in identifying issues in current practices so
that managers can make effective strategies in order to resolve these issues (Armstrong, 2016). It
is very important to manage changes effectively because entity fail to manage these
modifications well then it affect overall performance of business unit and can affect its brand
image as well.
Technologies get up gradated and it becomes essential for the higher authorities to
implement latest technologies in workplace. Competitors implements these technologies that
create pressure on the firm because it fails to improve operational efficiency. In such condition it
becomes essential for Toyota as well that to change their technologies and implement new
machines and techniques so that operational errors can be resolved and entity can provide quality
products to consumers (Serrat, 2017). But these changes are not accepted by people. Employees
do not have knowledge about new technique thus, they feel afraid to use it thus, they resist these
changes. But if entity fails to implement these upgraded techniques then it may get failed to gain
competitive advantage and may get fail to provide satisfactory products to consumers.
Technological changes can help the firm in raising operational efficiency and can support in
minimizing wastage. This assists in improving revenues of firm and sustaining in the market for
longer duration (Burke, 2017). Technological changes are the important concern of management.
But it is also essential to make people understand importance of these modification and benefit
for them, So that they accept modification and contribute well in success of the business unit.
Upgradation of technologies bring innovation in business and assist in raising its quality of
products. By this way company can be able to offer high quality products to consumers.

It is responsibility of managers that to conduct a personal meeting and share their vision
with workers (Key Factors of Change Readiness for the Success of Management Innovation in
Manufacturing Industry, 2015). They have to make people understand benefit of these changes
for firm and for them as well. Managers have to give training to people so that they can raise
their skill and can use these advance technologies in workplace effectively. This reduces human
errors and support in improving quality of work. Technological factor is considered as one of the
most important management factor that laying emphases on innovation and bring positive
changes in the corporation. Use of these technologies assist in reducing manufacturing time in
Toyota and company becomes able to utilize its resources well (O’Connor, 2018).
Leadership, innovation, culture are the success factors that brings innovation in business
and support in making positive changes in the firm. Participative leadership assist in involving
people in decision making process, giving them appropriate training and developing relationship
with employees. By this way people will feel comfortable and they will like workplace
environment. This supports in retaining skilled labor in workplace for longer duration and
brining innovative ideas (Felin, Lakhani and Tushman, 2014). Leadership is the major success
factor that focus on brining innovation and making positive changes in the firm so that entity can
meet with its organizational goal. Change management is essential for the firm, that supports
entity in sustaining ion the market for longer duration and conducting operations as per the
market requirements. If entity get failed to brining changes and innovation in firm then kit may
get failed to sustain in market for longer duration (Drucker, 2018).
Toyota always conduct market research and emphases on current trends. Accordingly
cited firm make change sin business unit so that it can fulfill needs of consumers and can gain
their attention as well. Extensive motivation is the part of leadership. If leaders are paying
attention on encouraging people and making them loyal towards the brand (O’Connor, 2018).
Then it assists in retaining skilled labor in workplace for longer duration and making them
positive towards the brand. These satisfied employees put their hard efforts and deal with
consumers well so that overall goal of organization can be accomplished. Toyota is facing high
competition in such condition if it fails to satisfied its consumers then it may create difficulty for
the firm to sustain in the market for longer duration.

Capacity to bring changes and brining innovative ideas in the firm is highly depended
upon culture of the entity. Innovation is highly depended upon values, commitment, support and
knowledge provided by management to its workers (Armstrong, 2016). Toyota has skilled
employees those who have innovative ideas that can enhance business performance. But if
culture of the firm is not good then they do not share their innovative ideas with management.
Social environment of the firm, corporate culture is highly interrelated. If Toyota enhances
involvement of employees, guide then well and motivate them to share their views then it can
develop confidence of employees and they can share their innovative ideas with higher
authorities. This will help in brining positive changes in business unit. If entity provides
openness to their employees and enhances communication with employees then it will help in
improving culture of the firm. People those who get openness and freedom in the organization
they give respect to their managers and follow their instructions (Key Factors of Change
Readiness for the Success of Management Innovation in Manufacturing Industry, 2015). By this
way positive changes can be implemented in internal and external business environment of
organization.
Conclusion
From the above report it can be concluded that innovation and change are the essential;
part and factors that lead towards success. Employees can not be motivated and can not be accept
changes until management offer then positive environment. Entity implements new technologies
in the firm so that operational efficiency of business can be improved. But people may resist
changes thus, it is very important for the management that to understand needs of people and
encourage them in such manner so that they accept changes and work in the new environment.
Motivation, leadership, culture are essential factors of management that laying emphasis on
changes and innovation. By this way entity can retain skilled people in workplace and can
encourage them to perform well. By this way entity becomes able to gain competitive advantage
and sustain in the market for longer duration.

References
Books and Journals
Armstrong, L., 2016. Barriers to innovation and change in higher education. URL: https://www.
tiaainstitute. org/public/pdf/barriers-to-innovation-and-change-in-higher-education. pdf
(дата обращения: 22.03. 2016).
Burke, W.W., 2017. Organization change: Theory and practice. Sage Publications.
De Stefano, M.C., Montes-Sancho, M.J. and Busch, T., 2016. A natural resource-based view of
climate change: Innovation challenges in the automobile industry. Journal of cleaner
production. 139. pp.1436-1448.
Drucker, P., 2018. The daily drucker. Routledge
Felin, T., Lakhani, K.R. and Tushman, M., 2014. Special issue of Strategic
Organization:“Organizing crowds and innovation”. Strategic Organization. 1. pp.2.
O’Connor, G.C., 2018. 6. Institutionalizing an innovation function: moving beyond the
champion. Handbook of Research on New Product Development. pp.100.
Rasiah, R., 2017. The role of institutions and linkages in learning and innovation. Institutions
and Economies. pp.165-172
Serrat, O., 2017. Harnessing creativity and innovation in the workplace. In Knowledge
Solutions (pp. 903-910). Springer, Singapore.
Online
Key Factors of Change Readiness for the Success of Management Innovation in Manufacturing
Industry. 2015. [Online]. Available through <
http://www.sersc.org/journals/IJUNESST/vol8_no10/18.pdf>