Analysis of Toyota's Change Management: White Water Metaphor Approach

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This report examines Toyota's approach to leading and managing change, focusing on the 'white water metaphor' which describes continuous and unpredictable change. It analyzes how Toyota, a leader in the automotive industry, has adapted to rapid shifts in the market, particularly with the rise of electric vehicles and green technology. The report delves into the transition from a 'calm waters' to a 'white water' environment, considering both business strategy and external factors impacting the company, such as technological advancements, environmental concerns, and evolving consumer preferences. It explores the application of change management theories, including organizational development, technological innovation, and structural adjustments, and their implications for human resources and strategic approaches. The analysis includes an examination of Toyota's shift towards smart mobility, environmental technology, and safety features, highlighting how the company has embraced change to maintain its competitive edge in a dynamic global market. The report also provides a comparison between calm water and white water metaphors and how Toyota successfully uses the white water metaphor by introducing new technologies like green technology and electric vehicles.
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Leading and Managing Change
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Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
1. White water metaphor’ is apparent in Toyota .............................................................................3
2. shift from calm waters to white waters took place, considering both business strategy and also
external factors impacting on the business......................................................................................6
3. Relevant theory to change and implications of change on human resource and strategic
approaches.......................................................................................................................................8
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
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INTRODUCTION
leading and managing change in organisation is not a common task, mostly it plays by
managers for change the environment of the organisation. Changes influence both downward and
upward. It might be possible that changes in organisation will affect positively or negatively on the
organisation. This report about Toyota company which is changing rapidly with hybrid changes.
Toyota is a public company with automotive industry. It is market leader of electric vehicles which
follows green technology. It was founded in 1937 in Japan. This report will include theory of
white-water metaphor and how it considers in Toyota organisation for changes. In white water
metaphor changes are unpredictable and continuous and in calm water metaphor change occurs
periodically.
MAIN BODY
1. White water metaphor’ is apparent in Toyota
White water metaphor refers to continuous changes in the organisation and changes are
unpredictable. Managing change is continuous process and change is normal process. It also called
rapid metaphor. In it manager has to guide their employees and make changes in the organisation.
Changes which is uncertain and in dynamic environment. An organisation don't know about these
changes that hoe and when it becomes. It requires constant course correction(Palmer, Dunfordand
Akin, 2016).
In white water metaphor no one knows about the changes that when it will come rapidly. It
is just like a boat which survive in the water with fast running water. Changes perform by fast
growing industry and it effects by any external source and macro environment. Sources like
economical, political, legal, technological, environmental. Any organisation can affected by these
all sources and these changes defined as white water metaphor. There is lack of environmental
stability and predicability so managers have to change continuously in other organisation for
security and safety(Hillson and Murray-Webster, 2017).
Types of change agent-
Managers who are internal entrepreneur always ready to make changes and take
responsibilities of that change.
Other one is insiders who are not managers but they are specialist in change because of lots
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of experience.
Outsiders who are non related to the organisation but they are expert in implementation of
changes.
Change have three categories and they are following-
Change in technology- An organisation create Technological changes with an invention or
innovation. Applying the new idea or concept for the product development. Adopt new methods or
operating methods which replace the old methods and ideas. Toyota can change the computerisation
and old techniques which used by people for machine making(Mintzberg,2018).
Organisational development- For development of the organisation it has to change the
interpersonal skills and quality of work relationship between employees. Toyota can use this
changes to development of organisation.
Change in Structure- An organisation can change its structure components and design for change
in mind set of the people and employees.
Change in people- In white water metaphor an organisation changes rapidly and up to date. So
changes may be connect with people through their relation, interpersonal skills, attitude, their
behaviour. People have also changes in their perception and expectations on the workplace.
Managerial actions to change-
Increase communication between employees for see the change.
Managers can educate the people through discussion, training, conferences etc.
Built trust and credibility between employees and managers.
If people wants to communicate their ideas and thoughts then allow them to participate in
the task.
Managers can provide support to the employees with making good relation to them for their
comfort zone.
Let's take an example of white water metaphor with case of jio. It came in the market with the best
strategies and opportunities when no one knows about that changes because it was unpredictable
changes. Both people and the many other competitors did not know about this thing that it
happened, they all were in shock how to face market with this competitor because it came through
high planning. From the changes in market with is, every company go through their strategy and it
creates effects on the other companies in term of profitability.
On the other side Toyota organisation which also has also used white water metaphor by
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launching electric cars to follow green technology. Green technology refers to create the products
with non toxic cleaning products with use of new techniques and materials.
Changes in Toyota with white water metaphor-
Smart mobility society- It is a new thing which introduced by Toyota(Turner, 2014). From this
technology people, cars and community creates a new society. In it people can connects with the
cars anywhere.
Environmental technology- Toyota launched eco- driving facility with hybrid cars, electric cars
and fuel cell technology. From this their cars create Eco- environment and reduce in CO2. They
introduced these vehicles with rapid changes.
Safety technology- Toyota uses safety technology for making the vehicles and this company
inspired by many other high companies like BMW. Toyota underhand their safety majors and put it
in their own vehicles for safety and security of the people.
Automated driving- Toyota introduced automated driving in 1990. It is very helpful for people
because they need support when they drive vehicles so in the automated driving facility people are
frank with the cars and go with safety. With using some sensors the car drives automatically.
Partner robot- Toyota aims to remove gape between human and robot so they focus on robot
facilities in there car models. This technology develops for auto mobile manufacturing. People want
to free from work so this technology helps them to be free.
How Toyota go green
It has to recognise the effects of any activity to the environment(Brown Wilson, 2015). For
rapid changes Toyota had to follow rules and regulations. It did what they have to follow in the
legal requirements without legal changes. They approached to the market with satisfaction level of
their consumers(Winston, 2016). They follow respond of their customer for friendly environment.
They also meet with the demand of their community, suppliers and customers. Understand about the
environment and social responsibilities they move towards the green environment with their hybrid
and electric vehicles to safe the environment. It is future approach for the organisation.
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2. shift from calm waters to white waters took place, considering both business strategy and also
external factors impacting on the business.
Calm water metaphor- In this strategy it is said that a large ship crossing a calm sea. In the context
of organisation the managers and the employees know about the change, they also know that where
they are going and where they will go to apply the strategy. They understand their plan because they
have done that particular task many times and they understand the profits and non profits,
problems. It also does as occasionally change due to planning.
Strategy for cam water metaphor- In the calm water metaphor the key factors considers as pricing
strategy, time consistent, risk tolerant, diversification. The organisation who applying the calm
water, they compete for pricing market that what is the price of other products in the market
regarding substitute goods. They follow pricing as well as time consistent. This kind of
organisations are concentrate on the productivity level and time consuming to making that product.
Because they have to deliver that products on time.
White water metaphor- It describes as continuous changes in the organisation and changes are
rapid, that's why it is also called rapid metaphor. In this an organisation and its employees don't
know about that change, when and where it will. They have not any idea about that particular
change. Toyota which also describes itself with rapid change in the environment with eco driving.
Toyota made electric cars which are useful for people and also not affect environment through
dangerous smoke.
Strategy of white water metaphor- For applying the strategy of white water metaphor it has to
understand that what technologies are running in the market and which are least used. To survive in
the competition it has to follow new technologies which will like by people. Understand about the
competitors and their technologies so that it seems to be survive in the market place. Adopt business
opportunities which helps to survive and make place in competitive advantage.
Need of shifting from calm water to white water metaphor
A business shift from calm water metaphor to white water metaphor strategy because
applying calm water metaphor in the business makes only profit, it is not working for the company
who want competitive advantage for their organisation. In calm water metaphor no organisation can
look towards the new strategies and they are in their comfort zone just because they don't want to
put their new ideas to achieve competitive advantage(Winston, 2016). The organisations which
want to do something new or extra they shift their business from calm water metaphor to white
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water metaphor. In white water metaphor business apply the strategies with new idea and new
technology form which it will make place in the competitive market and achieve a new goal. In
context of Toyota no one can know about their strategy except the person of that organisation. They
applied white water metaphor for their development. They applied this in car making process and
follow the other big car making companies which uses the best quality products for car making.
Toyota took green technology in the market with hybrid vehicle. It is the only company which
grown up with rapid changes in its product. They introduced electric vehicles which is eco friendly
and not harmful for the environment. The electric vehicles which runs through battery charging and
not spread harmful smoke.
Successfully changes also planned(Winston, 2016). It is pre planned process of the organisation.
When no one have any idea about that big change, the organisation which already applied white
water metaphor strategy, that will catch the opportunity. It is the best strategy for the organisation
which want to develop itself in the competitive environment. This started having with risk factories
because they also don't know that the product will continue in the market or not. But in actuality
before applying that strategy, organisation already searched about the market demand and they
know what people wanted from them.
External factors impacting on business- External or macro factors which make impact on the
business of Toyota with considering all the factors, which are following-
Political - From shifting from calm water to white-water, many rules which have to follow to the
organisation. Understand the rules and regulations of the government and know about their policies
that what things make them affected. Toyota shifted itself from cal to white water so they had faced
many regulations for it. Free trade agreement and support of government.
Social- With shifting strategy of Toyota it impacted better on their society because the product they
launched in the market is the best quality product. It affects social factor due to pricing strategy and
affordable price. People create their interest in hybrid and electric cars. This thing made customer
satisfied.
Technological- Toyota is an automotive manufacturing company which already exist with
technology. Impact on Toyota regarding this shifting is that in their products they provide
cybercrime facility. They also increased e-commerce and build itself with mobile technology.
Environmental factor- Toyota has opportunity to build itself with sustainability and increase in
electric cars with full efficiency. Their hybrid and electric crass are already environment friendly
and it makes impact on the fuel companies due to decreasing in oil efficiency cars. Opportunity of
Climate change(Winston, 2016).
Economic impact- Economic factors affecting the business of Toyota due to their change from
calm water to white water metaphor. It impacted on the economic growth of the country and also in
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their money because Yen weaker than US dollar. Rapid growth of developing countries make
impact on the economy of UK due to low level performance of Toyota in contribution in economy.
Legal factors- Legal impacts through rules and responsibilities and many of the other laws
regarding the organisation. It impacts through different laws like employment law, labour law etc. It
improves intellectual property law, consumer law, environment law. Government working for
improving that all laws so. So Toyota affected by these all things.
3. Relevant theory to change and implications of change on human resource and strategic
approaches
Kurt Lewin’s Change theory
This theory involve with three steps of change. It helps to manager in decision making
process that how and when an idea can apply. This theory provides guidance to handle customers
and when to deal with them. Change will only work when people go through it and put their
deficiency in it.
Unfreeze- In this stage it is summarised that people are ready for change. People know about their
work which they did in their daily routine and it makes regular habit of them. It describes the habit
of people that they continuing in the task which is not useful more, due to their daily routine habit.
Before implementation of that change it has to clear on initial stage. All of things like organisational
change, way of thinking, people and process or work carefully examined to learn how to go through
competitive advantage.
Changing- In this stage people come over from unfreeze and start to move with change. This stage
come after implementing the change. It is not easy for people to stay with change because they feel
all new. Many people struggle with that change and feel dissatisfy. The more people feel comfort
with that change, more easy to survive for them. It is the stage where people have to work for the
competitive advantage(Miner, 2015). It is time to change the mind according to the change and get
over from old steps to do something new.
Refreezing- In the step of refreezing once people feel comfort with the new structure and change
then it is easy for the organisation to become standard. Once the structure has found the way to
improve then it also covers in the habit of people. This step gives an opportunity to people to do
something well for the organisation with new change. This thing helpful for the organisation as well
as people. Lewin found this step is important because of new developing things which follows new
ideas and process.
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Implications of change for the Human Resource Department
If an organisation changes itself than it makes impact upon the employees and human
resource management. Change according structure, people, work process, job portal etc. Through
the changes in the organisation it impacts on the human resource. It is their responsibility that how
to they handle the employees regarding the changes. Employee who are struggling with the change,
how to convince them for new work, this all is responsibility of the human resource team. Without
efficiency of human resource nothing can be achieve in the organisation because they are the only
person who can give clarity to people regarding the work and incentives, salary. Because incentives
is the most popular thing which help to motivate the employees. It is the main functions of human
resource recruitment, planning, reward, appraisal etc(Miner, 2015).
Changes only do for catch the importunity of competitive advantage and main role of human
resource in it is- giving training to the employees for their best performance, recruit the new
employees who are capable to run the technology.
Strategic approaches to human resource management- Strategic approaches describes as a
concept in which human resource team applies idea to manage the resources and organisation. It
considers impact of outside factors on the organisation, impact of competition on the labour market,
problems in the decision making. Human resource team responsible for overall development of the
organisation.
Successful and stable organisation- It is the first approach in which normal communication
includes. Communication of low level to high level. Planners set the goal on the bases of past
performance of the organisation. Human resource management has to focus on goal of organisation
and on the basis of it they also have to trained the employees regarding their skills. Skill
development plays main role in the development of organisation. When there is change in
organisation than it is their responsibility to comfort employees according to change.
Organisation with portfolio diversification- In this approach it basically describes five forces of
porter. Effects of external and internal environment on the organisation. Core effects which happens
with the changes and their impact on the organisation. Human resource team has to understand that
factors and try to solve this(Miner, 2015).
Organisations in fast moving ecosystem- In this approach the employees focuses on external
factors and they make their capability with using that external sources. They use the external
information for their development. human resource team can develop them in the organization and
help them by motivation.
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CONCLUSION
From the above study it has been summarised that white-water and calm water they both
were different approaches and nowadays organisations switch from calm water to white water just
because to gain competitive advantage. Above study on Toyota organisation which was the best
example for rapid changes. It used white water metaphor for competitive advantage and Toyota
gained it. They used electric vehicle and hybrid vehicle for eco system. Change in organisation also
made effect on the human resource management. Described about the need of change from calm
water to white water, their causes and consequences. Strategic approaches to human resource
management and from training and development they could help the employees.
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REFERENCES
Books and journals
Brown Wilson, C., 2015. Implementing person centred aged care: the role of the nurse in leading
and managing change. In 3rd NUS-NUH International Nursing Conference/20th Joint
Singapore-Malaysia Nursing Conference: CS-A-09.
Turner, J.R., 2014. Handbook of project-based management(Vol. 92). New York, NY: McGraw-
hill.
Palmer, I., Dunford, R. and Akin, G., 2016. Managing organizational change. McGraw-Hill
Education.
O'Neil, E., 2018. Leading—Not Managing—Through a New World Order. Generations.42(1).
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude. Routledge.
Mintzberg, H., 2018. Managing the Myths of Health care. In The Myths of Health Care (pp. 3-11).
Springer, Cham.
De Vries, H. and Van der Poll, H.M., 2016. The influence of Lean thinking on organisational
structure and behaviour in the discrete manufacturing industry. Journal of Contemporary
Management.13(1). pp.55-89.
Winston, C.N., 2016. An existential-humanistic-positive theory of human motivation. The
Humanistic Psychologist.44(2). p.142.
Palvia, P., Jacks, T. and Brown, W.S., 2015. Critical Issues in EHR Implementation: Provider and
Vendor Perspectives. CAIS.36.p.36.
Miner, J.B., 2015. Organizational behavior 1: Essential theories of motivation and leadership.
Routledge.
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