Toyota's Management and Leadership: Roles, Theories, and Impact

This report provides an in-depth analysis of Toyota's management and leadership practices. It begins with an introduction to the company, its organizational structure, and the roles of managers and leaders, highlighting the key differences between them. The report then delves into the application of management and leadership in various organizational situations, providing examples of decision-making in response to challenges such as supply chain disruptions and quality issues. Different leadership theories and models, including situational leadership, system leadership, contingency approach, and human relations theory, are examined to understand their impact on employee motivation and organizational goal achievement. The report concludes with a summary of the impact of managers and leaders on Toyota's success, along with recommendations for future improvements, emphasizing the importance of adapting to contingencies and fostering strong employee relationships to enhance overall operational efficiency and achieve strategic objectives. The report discusses key operational functions and approaches as well as factors within the business environment that impact operational management.

Management &
Operation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Give an introduction to the organisation you have chosen and its management structure......1
2. Definition and roles of both managers and leaders, highlighting the differences between
management and leadership.........................................................................................................1
3. Analysis of the different roles of management and leadership in application to different
organisational situations..............................................................................................................3
4 Theories and models of approach, including situational leadership, System leadership and
contingency..................................................................................................................................4
5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements.................................................................................6
TASK 2............................................................................................................................................6
1. Introduction..............................................................................................................................6
2. Key operational functions, identifying the roles and responsibilities of managers in the key
operational functions...................................................................................................................7
3. Key operational approaches to operations management and their value................................8
4. Factors within the business environment that impact upon operational management..........10
5. Management and leadership approaches to improve operational efficiency.........................12
6. Conclusion & Recommendation for future improvements....................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Management & Operation is the administration of business practice to create the highest
level of efficiency possible within a corporation. In the success of business, it plays a vital role as
a result business can grow. It is helpful to bring the efficiency and effectiveness, which can
maximize the productivity also. To better understand this concept, Toyota has been selected
which is a Japanese car manufacturing company. This report covers the various topics such as :
compare the different roles & characteristic of a leader and a manager, different types of
leadership theories and approaches, importance of operation management to achieve the
corporation goal. Apart from this, report also discuss about impact of environment factors upon
operation management.
TASK 1
1. Give an introduction to the organisation you have chosen and its management structure
Toyota is a Japanese car manufacturing organisation which is founded in 1937 and it is
headquarter is Toyota City. Aichi, Japan. It has 364445 employees in the financial year 2018 and
it is the world's market leader in sales of hybrid electric vehicles. Organisation follows the
vertical management structure in the company because it has more number of employees and in
this type of structure flow of information has given to the top to bottom level.
2. Definition and roles of both managers and leaders, highlighting the differences between
management and leadership
To run a business successfully manager and leader plays an important role and put their
maximum efforts so that Toyota can accomplish its targets effectively. Leader and manager plays
different roles and functions as per the need of organisation.
Manager: The individual who has power to control and manage the company and
workforce so that work can be accomplish in productive way.
Role of manager:
 Planning, organising, controlling are the roles, which are performed by the manager of
company so that targets can be fulfil in required manner.
 Manage the operational functions in Toyota as a result employees can work as per the
desire manner of corporation (Christopher, 2016).
Characteristic of manager:
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 Manager is an optimistic person, which encourage the workers to perform best so that
targets can be accomplish.
 They are confident and encourage the workers to perform better.
Leader: The person who motivate and leads the subordinates so that they can perform
their roles and duties as per the desire of organisation and achieve its targets on time.
Role of leader:
 The leader of Toyota support and guide the group persons as a result they know how they
have to perform so that goal of company can be fulfilled (Evangelopoulos and et. al.,
2016).
 To listen the problems of teammates and encourage them to perform in desire manner so
that targets can be achieve and business of corporation can expand.
Characteristic of leader:
 The leader of Toyota has ability to motivate the subordinates so that they perform
effectively and efficiently.
 It has positive attitude and focused approach towards the work so that objectives can be
achieve according to the plan.
Difference among roles and characteristic of leadership and management
Basis Leadership Management
Definition Leadership reflects the
capability of a leader to
encourage to group members
so that they put their maximum
efforts to accomplish the
objectives.
Management comprises of
planning, organising, directing
as a result employees are able
to perform as per the
requirements.
Role To motivate the workers to
perform according to the
desire of Toyota.
To manage the activities of
business so that staffs can
perform better. (Grahn and
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McKelvey, 2014).
Focus To lead the teammates of
company.
To effectively control the work
in organisation.
So leader and manager of Toyota always focuses to accomplish the targets of company
and they put their maximum contribution so that it can achieve its goals and objectives and
sustain in the market for a long time (Haimes, 2015).
3. Analysis of the different roles of management and leadership in application to different
organisational situations
There are different roles of management and leadership, which provide help the company
to take effective decisions in distinct situations. It provide help to achieve the goals and
objectives.
 Due to the transportation strike there is a situation arise that Toyota does not have enough
raw material to meet an urgent order. In that case management can take effective decision
that corporation can purchase raw material from the local suppliers so that immediate
order can be completed. In that, leadership plays an important role because leader
motivates the employees to perform effectively so that targets can be accomplished.
 There is a situation arise that consumers are not happy with the products of company
because for its quality. In that, management can take decision to set quality standards so
that superior quality products can be produce. In that case, leadership plays an important
role and leader of Toyota instruction the team mates to work effectively so that quality
can be enhanced and desire of clients can be satisfy.
 In Toyota, there is another situation has appeared that it have to manufacture 500 cars in
18 days to meet the requirement of an urgent order. In such case, management can take
effective decision that staffs have to work 2.5 hours extra so that target can be
accomplish. In such case leader plays an effective leadership role by motivating the
workers to work extra so that an urgent order can be placed. All employees will get
incentives for their additional efforts.
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4 Theories and models of approach, including situational leadership, System leadership and
contingency
To achieve the organisational goal it is essential that leader of company is following the
effective leadership style which can motivate the employees to perform as per the desired
manner. Therefore, that Toyota can achieve its targets on time. Leader plays a vital role to
encourage the workers so that work can be done effectively and productivity can be enhanced.
There are various theories and models, which can be use by the leader of corporation and these,
are as follows:
Contingency approach: In this type of method, leader takes the decision based on
contingent situation. For an example, Due to transportation strike there is a contingency arise that
is organisation does not have sufficient raw material for the production. In such case leader of
Toyota can buy raw material for the local supplier at higher rate so that urgent order can
completed effectively. For maintain the healthy relations with clients it is necessary to supply the
products as per their demand and helps to increase the loyalty of consumers towards the
company (Jacobs and Lummus, 2014).
Strength: Guide the leaders to react positively in the situations of sudden contingencies.
Weakness: if organisation is not able to meet requirements of customers than it will
result in various contingencies.
System leadership approach: In this particular approach leader, treat the organisation as
a system, which is related with manmade or natural elements. The primary dimension of this
approach is to provide an opportunity to understand, analyse and think about the corporation.
Leader has a capacity to transform various functions of organisation into a system. Company is a
set of distinct component, which includes employees, machinery, content, assets and resources.
Overall, it provide help to create positive environment, which ensures completion of all business
activities in effective manner. Therefore, this approach provide the help to the leader of Toyota
to use all essential resources so that efficiency and productivity can be enhanced and corporation
can achieve its objectives.
Strengths: Leaders have an ability to transform distinct functions of the company in to
systems. It guides to create positive work environment at work place.
Weaknesses: Sometimes workers may not agree with leaders and will not follow all their
commands at that time conflicts may take place.
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Situational leadership: As per this theory, leadership style has changed based on
situations that occurs at the work place. No one is able to predict that what will happen in future
and what type of circumstances will arise. Therefore, for a leader it is important to take the
decisions according to the situations and try to handle it effectively. As an example, there is a
situation arise in Toyota that it have to make 250 cars in two weeks so that an urgent order can
be completed. In this particular scenario leader can motivate their teammates to work 2 works
extra in a day so that within stipulated time period target can be accomplish. In return, staffs will
get bonus, which is more than regular bonus they get. Therefore, for the benefit of company
leader should be responsible to take effective decisions, which help the corporation to generate
more profits and satisfy the demands of consumers.
Strength: This approach help the leaders to find solutions for the difficult problems
easily and it also help to find appropriate solution for each of the challenges that are faced by an
organisation.
Weakness: When a problem suddenly take place than leaders may not able to take
appropriate decision.
Management theory: With the help of this theory purpose at inspiriting social relation
in the company. One such theory that pleased a cooperative situation is the human dealings
approach. It includes human relation theory.(Marchington and et. al., 2016).
Human relationship theory: According to this theory, organisation should emphasis to
maintain strong relationship with the employees. Management of Toyota should try to maintain
friendly and healthy relationship with staffs and support the workers by listening the problem of
them as a result efficiency can be maximize. Leader can use participative leadership style and
give chances to teammates to give suggestions in decision making so that effective decision can
be taken which help to achieve the organisational goal and objectives.
Strength: Provide help to maintain healthy and friendly relationship with workers, which
bring efficiency and productivity.
Weakness: Workers can get flexible if employers behave too much friendly as a result
they cannot work effectively.
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5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements
Conclusion: As a conclusion, it can be said that leader and manager plays an important
role in the organisation. They control and manage the company effectively so that corporation
can achieve its objectives and get success. With the help of leadership theories employees can
get motivated to perform better and help the company to accomplish its targets. Leader and
manger are very important for the growth and success of organisation because manger manage
and control the operational activities and leader motivates the teammates to perform its role as
per the desired manner. Therefore, that Toyota can achieve its objectives. Company should
follow contingency approach so that effective decisions can be taken in adverse situations. As a
result, targets can be fulfilled.
Recommendation for future improvements:
 To enhance the performance of employees training should be given so that they can work
better.
 Plans and policies should be formed in that manner which provide help to achieve the
objectives.
 Organisation can use leadership theories that motivate employees to perform effectively,
and fulfilled the desire of corporation.
TASK 2
1. Introduction
Introduction: There are various operations performed by Toyota such as car
manufacturing, engine design, quality management etc. It emphasis to manufacture quality
products as per the needs of consumers. Human resource management of company recruit
talented and skilful workers, which perform their roles and duties as per the requirement of
company as a result it, can achieve its objectives. There are various key operations of
organisation, which provide help to achieve the objectives. All of them are as follows:
Layout design and strategy: Layout design in Toyota's manufacturing plants highlights
the application of lean manufacturing principles. Products of company are designed as per the set
standards.
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Design of goods and services: Organisation addresses this strategic decision area of
operations management through technological advancement and quality. Toyota uses its R&D
investments to ensure advanced features in its products.
2. Key operational functions, identifying the roles and responsibilities of managers in the key
operational functions
There are various key operational functions, which are performed in the organisation
such as planning, organizing, directing and controlling.
Roles and responsibilities of manager in key operational functions
 Planning: It is the operation management function which involves deciding what is to be
done, when is to be done and how it is to be done. In context to operation management,
manager is responsible to make plans for the future growth of Toyota. Manager perform
the role of planner so that company can achieve its objectives.
 Organising: It is a systemic process, which is used in operation management for
structuring, integrating, coordinating task goals and activities to resources in order to
achieve specified targets. Manager is responsible to organize the human and non-human
resources, which is helpful to bring efficiency in operation management. It provide help
to the Toyota in order to bring efficiency in work so that productivity can be enhanced.
 Directing: It is operation management process in which manager guide, instruct and
oversee the performance of employees to accomplish objectives. The role of manager is
to direct and guide the all members of Toyota so that operations can be managed
effectively. As a result, workers can perform their duties as per the company's
requirement.
 Controlling: In operation management controlling means setting standards, measuring
actual performance and taking corrective action. In context to operation management,
manager is responsible to control the activities of business and monitor the performance
of staff member, which results in maximized efficiency and productivity.
Fayol's 5 functions
Planning- This function is associated with thinking in advance what it has achieved and
what it wants to achieve. It is a futuristic approach. Business is full of uncertainty it becomes
important to prepare the organisation in advance.
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Organising- It is a process of establishing relationship amongst people in the organisation
to avoid wastage of efforts and tasks. This helps to make functioning of organisation
systematic and efficient.
Commanding- This function ensures, instructing the employees about what is expected of
them by establishing effective communication in the organisation. Understanding them so
that they can be motivated and achieve goals of the organisation.
Coordinating- This function of management focuses on coordinating the activities and
employees. This helps to reduce conflicts and ensures smooth functioning of organisation.
Coordination within the organisation and outside the organisation.
Controlling- As the name suggests this function is used to control company's resources.
When company deviates from its plan, corrective measures are taken to avoid wastage. It
leads to improvement in the performance.
3. Key operational approaches to operations management and their value
Six sigma: According to this approach an organisation should focus to eliminate the
defects from the manufacturing process so that quality products can be produce at minimum cost.
This concept is use by the manager of Toyota and for that, training should be provided to all
workers so that defects can be minimize. The role of leader is to ensure that required and
essential training has to be given to its all group members so that they can manufacture the car in
effective manner and it provide help to reduce the errors in production process.
Total quality management: This particular approach has emphasis to produce the
quality products and deliver better services to the consumers. Quality standards can be set by the
manager of Toyota and instruction are given to all employees to maintain appropriate quality
while producing the products. Therefore, it provide help to better reputation of company in the
market, which brings the higher revenue to the corporation.
Just in time: This specific approach states that the primary motive of a corporation
should be reduce times within production system and responses times from suppliers and
consumers. Manager of Toyota use this model in the car manufacturing process so that
unnecessary time in production process can be minimise which leads to maximize the efficiency
as well as productivity. The role of leader is to motivate the teammates to follow this approach
and perform their role effectively. As a result, organisation can achieve its targets as per the
stipulated period, which leads the profitability also.
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McGregor's theory X
McGregor's theory X insists on using authoritarian form of management to motivate
employees. This theory is used to change negative attitude of employees towards their work. It
ensures that employees complete their job properly and on time.
Theory Y on the other hand insists on making managers to be more supportive to
workers. The employees here already have positive attitude towards their work, they like doing
their job and take new task as challenges.
Lean production: This specific approach states that wastage can be eliminate from the
manufacturing process as a result unnecessary expenses can be reduce. Manager of Toyota can
arrange the training programme for their employees so that they get to know how to produce
quality products by minimizing the wastage. Leader can control and monitor the activities of
their group persons so that they can perform its roles and duties effectively and wastage can be
reduce which leads to more revenue (Penn and Pennix, 2017).
So Toyota use these various approaches in its organisation so that quality products can be
produce at minimum cost and consumer will be satisfy.
Value of operation management:
Operational management: It known as one of the compelling organization of business
rehearses that would be utilized to make the most elevated amount of effectiveness conceivable
inside Toyota. It is worry with changing over all the crude material and work into great and
administrations as proficiently as conceivable to expand the productivity of an association.
Operational administrator: It is considered as that specific person which in control and
execution of largely routine capacity and exercises of an association.
Inventory management : By using just in time approach inventory can be effectively
manage in Toyota as a result unnecessary warehouse cost can be minimize. It provide help to
maximize the revenue and it is an importance of operation management, which is beneficial for
the company.
Satisfy the needs of consumers: With the help of operation management desire of
consumers can be satisfy because it focuses to provide quality products at reasonable price. It can
satisfy the demand of persons and more number of consumers will connect with Toyota as a
result its profits can be enhanced.
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Reduce wastage of resources: By using lean manufacturing and six sigma quality can
be improve and wastage can be reduce as a result efficiency and productivity can be enhanced. It
provide help to Toyota to expand its share in the market so that higher profits can be generated.
Support to corporation strategy: Operational strategies can be made effectively with
the help of operation management and it support to the planning, organising and controlling. It
provide support to the workers to work as per the desired manner so that organisational goal and
objectives of Toyota can be accomplish. As a result, company can get success that leads the
sustainable growth (Pundi and et. al., 2015).
4. Factors within the business environment that impact upon operational management
The business of an organisation can be affected through the environmental factors
because environmental activities are uncertain in nature, which can occur at any time. With the
help of PESTEL analysis Toyota can analyse its strength and weakness, which can minimize the
negative impact of such factors (PESTEL analysis. 2018). There are various environmental
factors, which can affect the business of company, and these are as follows:-
EXTERNAL FACTORS
Political factors: According to this, for a company it is essential to analyse the impact of
political factor so that its business can be protected from the negative affect of it. It includes tax
policy, environmental law, political stability and government policy. Business of company can
be affected in the absence of political stability in the country. Therefore, it is necessary for the
manager and leader of Toyota to make appropriate plan and strategies as per the political
condition of nation. As a result, business of corporation is not influenced.
Economic factor: The business of a company can be affected by this factor and it
includes inflation, interest rate, economic growth etc. In case of Toyota, manager and leader can
continuously keep its eyes on interest rate so that it can acquire funds at lower rate from the
market and it provide help the organisation to maximize its revenue. So that it can expand its
business and sustain for a long run in the market. If manger and leader does not analyse the
economic factor effectively than its decision for future growth can be affected.
Social factor: To satisfy the needs of consumers is essential for an organisation so that it
can earn more profits. It includes age distribution, population growth, career attitudes etc.
Manager of Toyota can emphasis to make its products as per the needs of consumers so that they
can be satisfy. As an example, consumers demand that they need four air bags in car so it is the
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