Toyota's Management and Operations: Leadership and Strategic Analysis

This report provides a detailed analysis of Toyota's management and operations. It begins with an introduction to Toyota's organizational structure and the roles of leaders and managers, differentiating between leadership and management and examining their application in various organizational situations, like high employee turnover and conflict management. The report explores different leadership theories, including situational leadership, management by objectives, participative leadership, and contingency theory. It then delves into Toyota's key operations, operational functions, and operational approaches, assessing the impact of external factors on decision-making and evaluating the effectiveness of operations in meeting business objectives. Strengths and weaknesses of the leadership approaches are discussed. The report concludes with recommendations for future development within Toyota's management framework, offering a comprehensive overview of the company's leadership and operational strategies.

MANAGEMENT &
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Introduction of Toyota and its management structure............................................................1
2. Definition and roles of leaders and managers.........................................................................3
3. Roles of Leaders and managers in application to different organizational situations.............4
4. Strengths and weaknesses of approaches................................................................................6
5. Leaders and managers impact on Toyota ...............................................................................8
TASK 2............................................................................................................................................8
1. Key operations of Toyota........................................................................................................8
2. Operational functions of organization and roles of managers in it.........................................9
3. Operational approaches to operations management................................................................9
4. Impact of external factors on decision-making by managers and leaders...............................9
5. Effectiveness of operational to meet business objectives.....................................................11
6. Conclusion and recommendations for future development..................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Management and operations is specialization and branch within filed of business, both
are its important part. It involves execution and planning of systems and strategies to make
corporation or businesses work properly. The present report is based on Toyota company that
produce Japaneses car for their customers (Uhl and Gollenia, 2016) . This study describe
introduction of the organization and its management structure. It explains role of both leaders
and managers and also discuss difference between leadership and management. This report
clarify roles of leadership and management in application to different situations in firm.
Moreover, it also explains weaknesses and strength of different approaches to both leadership
and management and justify leaders and managers impact on organization. It discussed key
operations of company and define each operational functions. Furthermore, this unit explain
operational approaches to operations management and also evaluate impact of external business
environment factors on decision making function of leaders and mangers. It will clarify
operational efficiencies in context of improvement in successful business and also include
recommendations and conclusions for future development.
TASK 1
1. Introduction of Toyota and its management structure
Toyota motor corporation is a Japanese international automotive manufacture
organization established in Aichi, Japan. They discover range of Toyota cars such as Etios Liva,
Platinum Etios, Yaris, Innova crysta, Prius, Land Cruiser etc. they manufacture the best cars that
tacking all kinds of roads including ice up and snows in Himalayas. It is the world's second
biggest automotive manufacturer that produce more than 10 million vehicles per year which it
has done in 2012 and also when they reported production of its 200 millionth vehicle. In their
management structure consisted of 364,445 workers worldwide and it becomes sixth largest
organization in world by its revenue. Behind American general motors Toyota was the world's
third biggest motor vehicle production that produced more vehicles than Ford and even more
than General Motors. Company includes no cost maintenance plan and 24 hours roadside
assistance with buy or lease of every new Toyota (Ravindran, 2016).
Toyota vision is to expand their business in the whole world and become world's leading
brand in Automotive sector. Leaders must encourage employees towards achieving business
goals and objectives that increase probability more than the another.
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Toyota management structure-
Organization management structure is based on different business operation of the firm
around the world. As one of world's leading automobile productions, Toyota worker its structure
to helps business strategic direction and goals. In their management structure General Manager is
the one who controls or manage the whole business functions and activities effectively.
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Illustration 1: Toyota Management Structure
(Source: Toyota’s Organizational Structure, 2018)

Under their management two managers work at different floors such as Assistant GM
operate office work and second AGM handle shop floor (Hazen and et.al., 2018). First manger
manage all the employees and their performances as well as productivity of products and second
Assistant General Manager controls shop floor activities, under their control system team leaders
and team members both support in controlling and managing each functions effectively that
increase profitability more than others.
Role and functions of leader and manager-
Leader role is to motivate workers and all the staff members and give supports to them
for accomplishing their tasks on given deadlines. Leader encourage team and help to achieve
desired business objectives and goals. Manager function is to make effective policies and
strategies for developing business more than the others. They give incentives and appraise
employees for their hard work performance and also monitor their performance as well.
2. Definition and roles of leaders and managers
Definition of leaders
A person who influences team or group of many people's towards achievement of
business objectives and goals. Leaders by its meaning one who goes leads and first by example,
so that provide are motivation to follow them (Zhu and Jiang, 2015). They are able to exercise
high level of influence or control over all the staff members. It convinces other individual to
follow rules and motivate others for give efforts for business success and growth. Moves workers
to action is the quality of a good leader who inspires each person.
Definition of managers
Manager is a person who controls and manager each functions and activities of business
in order to gain defined goals and objectives (Holweg and et.al., 2018). They make it priority to
meet with each people within their group or team to discover strengths and find out the best ways
to work on weaknesses. An individual who take charge of certain units of tasks or some subset of
firm are known as manager.
Roles of managers-
Staffing- Manager hire or recruit new candidates in Toyota for running their business
functions effective and smoothly. They select new applicants who have good qualification and
skills that help to achieve organization objectives.
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Monitor expenses and budgets: The main role of manager in firm is to monitor or
control expenses and budgets (Noe and et.al., 2014). They have to identify production process
and implement new techniques or methods that increase productivity more than another.
Planning and setting goals: Making plans and strategies is one of their major role that
support to gain desired goals that increase Toyota profitability and raise financial budgets.
Role of leaders-
Motivate and inspire: Leaders inspire, guide and influence others to participate in
common effort. Toyota leader make effective communication and plan motivation methods to
facilities action by its teams.
Visionary: Leader role is to create vision and provide to its workers and motivate people
to follow it because they all are often driven by their own ambitions. They build connection
between its people and work group functions that result become ultimate success of Toyota.
Coach: In organization leaders is responsible of mentoring and coaching workers, it
includes selection of right employee for correct work. Getting all employees adjust to work
culture and developing and training them to optimum levels of performance.
Building effective team: Leaders build an effectual team or group of people that provide
its efforts for increasing profit and help to gain competitive advantages.
Difference between management and leadership-
Management Leadership
1. This function work as discipline of
managing activities in the best possible
ways.
2. Management is a function that purpose
is to raise business at higher position
more than another.
3. Monitors and direct others in
organization.
4. Develops and creates culture of change.
5. It is quality of influencing individual,
so that business goals and objectives
are attained enthusiastically and
willingly.
6. Leadership focuses on vision and
employees performance.
7. Motivate and inspire workers.
8. Focus on tasks and guide others for
minimize risks as failure.
3. Roles of Leaders and managers in application to different organizational situations
Situation 1- High employee turn over
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Situational Theory of Leadership-
This theory is based on condition at hand and which type of strategies and leadership are
best suited to task. Accordant to this theory most effectual leaders are those that are capable to
adopt their style to situation and face at cues such as nature of group, type of projects and other
elements that contribute to getting job done. Telling, participating, selling and delegating are four
primary leadership styles.
In Toyota organization leader role is to motivate workers and inspire them for achieving
business objectives and goals. High employee turn over is one of the major issue or situation that
impact on growth of firm and also effects other people that decrease its productivity and
probability. At that moment leaders play an essential role by following Situational leadership
theory in which they have to take their decision after understanding the situations and know its
reasons that help to make effective judgment. It is one of the best style that resolve issues and
increase interest level of work for employees.
Management by objectives-
Illustration 2: Management By Objectives
(Source: Management By Objectives, 2017)
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MBO is a management model that purpose is to improve performance of firm by clearly
define objectives that are agreed to by both employees and management (Zijm and et.al., 2019).
Manager also play important role in resoling problems and take good decision at different
situations in firm such as high employee turn over. By following this concept they work
effectively and make better decisions that solve issue in Toyota. They make the best plans or
strategies for reducing employees turn over and increase interest of workers that maximize profit
margin more and more.
Situation 2- Conflict management
In the organization conflict management is one of the biggest situation or issues that has
to be solved earlier. In his condition leaders and managers both play their good role and support
for solving issues in Toyota.
Participative leadership theory-
This theory is known as democratic leadership style is one of four participative decision
making styles where workers are invited by employers to take part in organizational decision-
making process. Toyota leader adapt this concept in their working style and performance
accordant to it which help to solve Conflict management problem in firm. Before taking any
judgments they have to take suggestion of its staff members and consider it that build good
connection between both of them effectively.
Elton Mayo's Human Relations Theory-
The aim of this theory is to improve productivity among dissatisfied workers and increase
market sales and profit margins. It led to recognized the value of social and psychological factors
in creative productive companies for example, Toyota. Manager of company follow this concept
and make effective ways that solve situations and retain employees with them for longer.
Contingency theory-
Manager use adopt contingency theory of management that allows them to take their
decision in accordant to organization situation for example, high employees turn over. They
identify conditions at workplace and find out the best ways that help to mange performance of
workers and make some changes for getting better results.
System leadership theory-
System leadership theory adopt by leaders of Toyota in which they take actions and
decision accordant to situation in organization for example, conflict management. Leader guides
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each of them about work systematically and accomplish tasks on time that resolve work conflict
in workplace.
4. Strengths and weaknesses of approaches
Situational Theory of Leadership-
Strength-
Situational theory of leadership is very effective concept which is based on getting new
thoughts and ideas that has been using by Toyota leader for resolving issues at workplace. It is
one of the best management style personalized for each workers and improve communication in
effective way.
Weakness-
It makes confusion in each operational levels that reflect has been show in behavioral
incompatibility on part of supervisor.
Management by objectives
Strength-
MBO result oriented procedures and focuses on controlling and setting goals, if
encourage managers to do elaborate planning. Within adopting this theory manager of Toyota
know what employees expected of them and what they have to do for enhancing them as longer
as possible.
Weakness-
Management by objective concept only work if it's had complete support of higher
managements of firm.
Participative leadership theory
Strength-
Toyota Leader adopt this style in their work that help to feel team members engaged in
process of decision-making. It supports to enhance them that improve quality of work at higher
level.
Weakness-
According to this theory leader perform and act like PLT in which they listen thoughts or
each person that consume too much time. It takes longer time that impact on other performance
and develop issues at workplace.
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Elton Mayo's Human Relations Theory
Strength-
It improves work action brought enormous increases in productivity and enable
employees to paid by results and to take benefits of incentive payments.
Weakness-
It satisfied one employee at one time that will not satisfied other one's. Some persons do
not interested in this concept.
Conclusion that support leadership theories-
Leadership theories usually define leaders based on their style and characteristic that help
to improve employees work and increase their level of interest. For example, situational
leadership theory support and motivate work environment that help maximize productivity and
profitability of organization more than other. On the other side participative leadership concept
helps leaders for managing all the employees working styles. By adapting this theory they will
understand staff thoughts and ideas or needs that make them comfortable or satisfied at
workplaces.
5. Leaders and managers impact on Toyota
Manager control or manage Toyota business functions and activities that run each system
effectively. They make good plans and strategies for increasing business productivity and
probability more than another. All these efforts raise position of firm higher that achieve desire
goals and objectives. On other hand if manager do not identify current needs and requirement of
operation and make plans that directly impact on company performance and profit margin.
Leaders decisions also effects both positive and negative sides on firm as well as workers
working style. Leader motivate staff members and guide them for their work that help to
accomplish all the given tasks. But if they do not provide work to employees accordant their
qualification and skills it impacts on business growth and success very much.
Recommendations for future improvements-
Improvement is one of the best way to that improve current and future performance of
organization. Before making any decision manager has to identify needs of customers and
requirement in business structure that make good decisions. Identifying demands and
requirement of employees manager create plans or policies including all the positive ways that
retain workers with Toyota for longer. Within involving this activity they build strong team or
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units that help in future development. Leaders is also essential for future improvement because
they build group of people who have all the required skills and knowledge that is needed in
business growth and success. Thus, to increase productivity and probability leaders give tasks to
its workers and others according to their ability and skills that help to accomplished it without
any risk of failure.
TASK 2
1. Key operations of Toyota
Marketing: It is huge term that collectively depict functions of marketing Toyota,
include process, employees and technology that enables it to operate efficiently and to scale with
consistency. This is one of the main operations of organization that help to introduce it products
or services in front of customers.
Human resource department: HRM section hire or recruit qualified candidates in firm
for increasing productivity more than others. They also resolve issues of all the workers and try
to make them comfortable at workplace.
Manufacturing: Production is the major operation of Toyota that build their image in
marketplace. Manufacturing department produce good cars or vehicles according to customers
needs and focusing on their comfort zone.
2. Operational functions of organization and roles of managers in it
HRM: In this function manager play their important role in recruiting or hiring new
applicants in Toyota. They oversee the whole process of selection and recruitment that increase
productivity. The main responsibility of manager is to hire qualified candidates which have all
the skills and required knowledge. Human resource is operational function in which manager
role is to recruit talented people in company to gain benefits.
Marketing: Within this section marketing manager make good and better plans or
strategies for promoting Toyota vehicles in market. By taking finer decision they line with firm
objectives and goals. Manager responsibility is to oversee adverting and promotion procedures
and business products or services.
Manufacturing: Managers role is to ensure that whole production process run efficiently
and reliably. Their responsibility is to organize and plan productions schedules and monitor
overall procedure.
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Importance and value of operations management-
Its is very important for Toyota to manage their employees and business daily activities
that help to achieve desired goals and make them able to work effectively that increase
productivity more than others. Operations management is essential to develop and improve
overall functions of firm like probability and productivity. The main purpose of this is to create
high level of efficiency possible within company. It helps to manage process of manufacturing
products and services that raise the position of organization in better way. When manager
managed each operation effectively they can be able to achieve organizational desired goal and
gain profit more than before. With the help of organized management company can gain
business objective.
3. Operational approaches to operations management
Six Sigma- It is quality system that improve customers experience, builds better leaders
and lower costs. It is measured based approach for process development and improvement, it is
type of methodology which purpose is to improve business procedures and maximize consumers
satisfaction. This is disciplined, data driven and statistical based approach. Manager of Toyota
adapt this system in their working style that continuously develop or improve productivity and
increase profit margin. Define, analyze, improve, control and measure are the five steps of this
approach.
TQM approach- This is structured approach to all over organizational management, it
focuses on procedure of improve quality of Toyota outputs, including services and products,
through perpetual improvement of internal functions. By adopting this process in their work
manager make plans systematically and implement in firm that develop each functions
effectively and provide better services to customers as according to its expectations and needs.
Lean production- lean production is process of improvement methodology using by
Toyota to deliver products better and faster in way. This approach help to manage manufacturing
operation of company effectively without dealing with wastage. It ensures that assets are
working on right activities and effective manner that increase profitability and productivity more
than others.
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