Analysis of Leadership and Management in Toyota: A Comparative Study

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Management and Operations

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1 (LO1 & LO2).......................................................................................................................2
P1 Define and compare the different roles and characteristics of a leader and a manager.........2
M1 Analyse and differentiate between the role of a leader and function of a manager by
effectively applying a range of theories and concepts.................................................................4
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts........................................................................................................5
P3 Apply different theories and models of approach, including situational leadership, System
leadership and contingency..........................................................................................................7
M2 Assess the strengths and weaknesses of different approaches to situations within the work
environment.................................................................................................................................9
Task 2 (LO3 & LO4).....................................................................................................................10
P4 Explain the key approaches to operations management and the role that leaders and
managers play with reference to the chosen organisation.........................................................10
M3 Evaluate how leaders and managers can improve efficiencies of operational management
to successfully meet business objectives...................................................................................12
P5 Explain the importance and value of operations management in achieving Business
objectives with reference to the chosen organisation................................................................13
P6 Assess the factors within the business environment that impact upon operational
management and decision-making by Leaders and managers with reference to the chosen
organisation................................................................................................................................14
M4 Analyse how these different factors affect the business environment and wider community
...................................................................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

Introduction
Coordination, Planning, and organising resources are some of the significant function performed
in effective operation management which are the distended by leaders and managers in an
organisation. The management operation consists of various concepts, theories and applications
that are required for enhancing the organisational success and growth. The present task,
discusses about various role and responsibilities and differentiation and similarities between a
leader and a manager working in an organisation like Toyota.
In the next task, report will focus on importance of operational management along with various
approaches used by the leaders and manager in the organization for achieving the business aims
and objectives. At last, the report will discuss about various factors that impacts the operational
management along with the process of deciosn making.
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Task 1 (LO1 & LO2)
P1 Define and compare the different roles and characteristics of a leader and a manager.
Toyota is a multinational automotive manufacturer of Japan. It has been found that the
organisation the success of the Toyota is dependent on its 364,445 workers operating globally.
The employers of the organisation are effective in maintaining it to be the 2nd largest automotive
manufacturer internationally (Toyota, 2019). Success of Toyota is reliant on its unique
operations management system that emphasizes mainly in JIT or Just in Time inventory
management along with continuous improvement (Brown, 2016.) These management strategies
have efficiently boosted overall production and sales. Toyota has decentralized structure that
motivates and encourages employee for team work and effective participation. The Lean
manufacturing philosophy Toyota focuses mainly waste minimization for cost minimization. The
objective of this task is to understand insight of operation management techniques of Toyota for
improving efficiency. The functionalities of the leaders and managers support the overall
productivity and growth of the organization.
Leaders and managers
Toyota being a manufacturing organisation need to focus on raising the standards and level of
productivity of the car and vehicle and that can be achieved by motivating the employees by
offering them higher benefit both in professional and personal level (Alsaid et al 2017). In large
international firms, employees come across various risks and challenges due to policies, changes
and environment. Thus, it is the responsibility of the organisation to motivate them for
minimising turn over and motivating them. A leader thus plays a significant role in the
organisation, i.e. to provide motivation and encourages associates and team members for
enhancing the overall productivity to attaining the pre-determined aims and objective of the
organisation through the available resources. A manager is appointed for supporting and
managing the organisational system and structure through his administrative skills.
Similarities between leaders and managers
Managers as well as leaders of Toyota both are devoted and enthusiastic towards their job role.
This ultimately helps in achieving all the objectives and goals of the organisation. They are
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skilled and well experienced in decision making and expertise in handling different situations.
Leaders and managers are responsible effective resources handling and managing the
productivity (Antonakis, and Day, 2017. ).
Figure 1: Interrelation between leadership and management
In consideration to Toyota, the leadership and management skills are different from with other in
terms of traits, role and responsibilities and authorities.
Traits: Managers of the Toyota is responsible for identifying and communicating the
organisational vision to employees. Accordingly they suggest strategies to achieve the goals and
vision (Bolden, 2016). A leader mainly focuses on optimal resources and motivation for attaining
the pre determined targets and goals.
Roles and Responsibilities: Manager’s responsibility is to control and maintain organisational
functions. Leader’s on other hand motivates and influences all the employees for fulfilling and
conducting tasks that has been consigned by managers of different department.
Power and Authority: Leaders has limited authority and power in comparison to manager, they
do not sets policies, mission, and strategies in the organization. Manager however has powers to
define targets and strategies for enhancing productivity.
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M1 Analyse and differentiate between the role of a leader and function of a manager by
effectively applying a range of theories and concepts.
According to Mintzberg there are basically ten manager’s roles at a workplace which is classified
further into three main categories. The manager must have various skills like transformational,
interpersonal, and decisional skills to implement for achieving and defining the goals and
strategies for effective functionality (Monden, 2018. ). As per Henry Fayol, there are basic five
basic functions of a manager including organising, planning, controlling, commanding and
coordinating.
On the other hand, the leader must focus on managing the allocated team and then compel
workforce to achieve the determined goals and objectives. Leaders of the organisations are
responsible for managing the available resources and for proper strategy execution with the
defined plan for meeting the business aims.
For effective functionality in the organisation, Toyota applied both traditional and modern theory
of scientific management. It states that managers are mainly aligned to operations and support
overall growth and expansion of business. The leader’s roles are to motivate the workforce for
driving them for proper task execution.
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P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts.
Management and leadership skills in an organisation, plays significant role for solving
challenges various and problems for achieving overall growth and success of the organisational
business. Guidance and directions offered by the leaders and managers supports the organisation
to achieve proper planning and strategies for proper management of operations (Marshall, et al
2017). Currently, Toyota is facing demoralizing challenges with respect to rise in cost of
equipment, raw material, and fuel etc. that ultimately raises the overall production cost.
Thus, for mitigating this risk and minimising the overall impact upon the business processes
proper leadership and management models must be implemented by the leaders and manager of
the organisation. In the recent years the automotive industry is facing high risk of competitions,
thus Toyota need to be very competitive for gaining competitive advantage for fulfilling the
customer expectation and standing steady even among the market rivals. This issue in the Toyota
is resulting in lowering the efficiency along with revenue generation and economic stability by
encouraging the work force through motivation of leaders and managers.
Situation 1: To increase the sale rate and revenue generation in the organization even in
increasing cost of raw material.
Leaders’s role: In such situation, leader needs to motivate the workforce for adopting innovative
tool and methods for compensating the product cost through by new marketing tactics. Proper
communication is effective in encouraging the employees to adapt changes.
Manager’s Functions: Managers need to develop and introduce new plans and strategies for
selecting the best supplier of raw material in minimise price through negotiation.
Situation 2: The targets are set by the higher authorities Toyota for solving various issues.
Leaders’s role: Leaders are responsible for delegating duties among the employees considering
their knowledge and skills to attain the set targets. Accordingly they are motivated by using
Transformational leadership for offering their support.
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Manager’s Functions: Managers of the organisation can management by objective theory, in
this kind of situation where they can combine their efforts with that of employees to obtain the
decided business target. Managers direct the leaders to implement certain paths for work
completion and resource utilisation with a aim to generate high revenue.
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P3 Apply different theories and models of approach, including situational leadership, System
leadership and contingency.
Leaders in an organisation like Toyota play a very important role in context to deal with various
challenges through the implementation of effective style of leadership. Even the managers need
to display leadership skills for mitigating issues in critical situation. Some of the leadership
theories that are and can be applied in Toyota are stated:
Contingency Theory: This theory of leadership was stated by Fiedler, and is considered best
suited in an organisation for handling critical situation. According to this theory, there is no
particular solution for solving different problems in an organisation (Fiedler, 2015). Thus, the
leader need to identify and deal with problems accordingly based on their skills and calibre.
Presently, the cost of raw materials, fuel and equipments is increasing that is different issues
therefore different plans and strategies are required for resolving the issues. The managers allow
the leaders to practice theories for motivating employees to minimise the pressure that is created
among the due to high prices of the required resources that will provide motivation for enhancing
working skills.
Figure 2: Contingency Theory
System Leadership Theory: This theory is very effective in specifying plans and ideas to
resolving a particular problem. In this technique, the research is conducted for identifying
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various factors that subsist outside the organisational business for solving them. In this theory,
certain structure, ideas, system and purpose is created for dealing issues and crisis that is present
either inside or outside organisation (Gillet, and Vandenberghe, 2014). For instance, the leaders
need to interact with the employees for communicating the news of rising price of raw material
for supporting the situation through effective planning by implementing KAIZEN theory.
Situational Leadership Theory: The overall functionality of the organization is impacted by
different circumstances and situations. And managing and controlling is under responsibility of
leaders and mangers. This theory is effective to commerce with a single solution even for
different solutions. According to this theory, there are basically two styles that can be
implemented by the leaders i.e. task attitude and relationship attitude for motivating the
teammates to achieving the aims and objective.
Therefore, in Toyota the leadership styles plays an important role in the organisation for
attaining success, the employees mainly listens and tends to work according to a dominating
personality i.e. a leaders or manger who are responsible for tackling critical situations without
impacting the overall functionality and business processes.
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M2 Assess the strengths and weaknesses of different approaches to situations within the work
environment.
Different situation prevail in a large organisation like Toyota, hence for tackling the situation the
leaders and managers can opt to implement different style of leadership. For example, the
managers of Toyota can implement management by objective style if the decision to be taken is
for attaining market advantage in small timeframe, in such situation there is no time for
consulting employees for their opinions (Nanda, 2016). In this style the workforce are obliged to
follow the deciosn hence taken due to the situational demand. The main advantage of this style is
reduction in wastage of time with centralised decision making, however the employees have least
involvement in the decision reducing their morale and motivation.
Moreover, the organisation also supports implementation of classical as well as contemporary
management theory. In case of classical management theories, resources are treated as potential
source it supports delivery of high quality services and performance. But, the employees are
treated poorly with less employee relations. Contemporary management theory on other hand
focuses on attainment of contemporary scopes and benefits by managing and arranging the
available resources according to capabilities for achieving the contemporary goals only. The
managers and leaders are benefitted for achieving short term goals but high dynamic team is
required for work completion.
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Task 2 (LO3 & LO4)
Introduction
P4 Explain the key approaches to operations management and the role that leaders and managers
play with reference to the chosen organisation.
Operation management is planning, supervising and organising of various task and resources
with a motive for enhancing the overall efficiency in terms of manufacturing, production,
together with other business services. For an organisation like Toyota, there is a need to efficient
operation manager having skills related to managing problems through strategies, proper
inventory management and framing policies of operation management. The operation
management activities of an organisation are mainly for achieving competitive advantages and
boosting brand image. In an organisation like Toyota, operation management is practises for
offerings better services considering the target customers along with production process handling
in optimal resources, time and cost (Madan, and Jain, 2016). Some of the management operation
approaches in consideration with Toyota is stated below:
Capacity Management: This approach is effective in the organisation for maintaining and
organising the produced vehicles and accessory according to the present market demands without
effecting the overall functioning of the organisational business. With proper capacity
management manages and maintaining resources in judicial manner considering the future
market demands. The manager of Toyota with the help of this approach will be focusing on
selection of the best resources, while leaders will be responsible for identify product quantity
with minimum work pressures.
Inventory Management: In this approach main focus is given upon arranging proper invitatory
places for managing the produced stock. This approach includes various factors that supports in,
managing order and storage. The workers in Toyota are asked to produce the secured products
that are effective in completing future requirements and customer needs. Managers are
responsible for maintains and controlling the inventory for effective storage and supply and the
employees are guided by the leaders for manufacturing the products as per estimations.
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