Toyota's Management & Operations: Leadership, Theories, and Approaches

This report examines the management and operational strategies of Toyota, a leading Japanese car manufacturer. It explores the distinct roles and characteristics of leaders and managers, emphasizing their functions in different situational contexts. The report delves into various leadership theories and models, including contingency, system, and situational leadership, assessing their strengths and weaknesses. Key approaches to operations management, such as total quality management, are discussed to highlight their importance in maximizing efficiency and productivity. Furthermore, the report analyzes factors within the business environment that impact operational management, offering insights into how Toyota adapts to challenges and opportunities. Overall, the report provides a comprehensive overview of Toyota's management and operational practices, offering valuable insights into its success.

Management &
Operation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different roles and characteristics of a leader and a manager................................................1
TASK 2............................................................................................................................................2
P2 Role of a leader & the function of a manager apply in different situational contexts...........2
P3 Theories and models of approach...........................................................................................4
TASK 3............................................................................................................................................5
P4 Explain the key approaches to operations management.........................................................5
P 5 Importance and value of operations management.................................................................6
TASK 4............................................................................................................................................7
P6 Factors within the business environment that impact upon operational management...........7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In the growth and success of business management & operation plays an important role.
It is helpful to maximize the efficiency and effectiveness as a result corporation can achieve its
objectives. In this present report chosen company is Toyota which is a Japanese car
manufacturing organisation. In this report there are following topics are covered such as: role of
leadership and management,leadership theories and approaches, key operational functions and
responsibility of manager. Apart from this it also discuss about the influence of external business
environment factors that affect decision making by leaders & manager and suggestions for future
improvement.
TASK 1
P1 Different roles and characteristics of a leader and a manager
Manager: It is the person who manage and control the management of organisation and
its working in order to achieve the goals of company.
Leader: it is the person who motivates and leads the group of persons to fulfil the
objectives and targets of organisation.
Role of manager:
 The manager of Toyota makes future plans and strategies for the growth of company.
 The role of manager is to ensure that operation and management functions are performed
as per the desire of organisation (Shepherd and Patzelt, 2013).
Characteristic of manager :
 Imaginative thinking which is helpful to make policies and take important decisions.
 It manage and control the business operations of Toyota.
Role of leader :
 To encourage the employees to perform as per the need of corporation so that it can
achieve its goals.
 To resolve the issues of team mates so that efficiency & productivity can be maintained.
Characteristic of leader :

 It has an ability to lead the group members so that they can work according to the need of
company (Tayur and Magazine, 2012).
 To motivates the persons while they suffered from a complex situation or problem.
Difference among leader and manager
Basis Manager Leader
Definition Manager manage and control
the management of
organisation.
Leader motivates and leads
the group of persons
Focuses To control the management
activities of Toyota.
It focuses to lead team
members so that they can work
as per the need of organisation
Role To manage operational
activities of Toyota which is
helpful to accomplish the
targets of corporation.
To motivate the staffs so that
they feel confident and
perform according to the desire
of Toyota.
TASK 2
P2 Role of a leader & the function of a manager apply in different situational contexts
Both managers and leaders plays an important role for the success of company. They
prepare future plans and policies for the growth of Toyota so that it can achieve its objectives.
Manager control & manage the operational activities and workforce which make affirmative
impact on organisation to accomplish its targets. Leader of company plays the role to encourage
the team mates so that they can work as per the need which make positive impact on corporation
to achieve its goals. So both of them contribute their maximum efforts to fulfil the targets of
company (Yeoman and et. al., 2012). Mainly, company face issues related with less productivity
and efficiency within their profits due to less coordination among workers, lack of
communication, workers skills and so many more at workplace. Key functions of managers are
as under-
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 Planning: It is one of the important function of manager in which they manager plan to
reducing communication gap among workers. As because of transportation strike, Toyota
faced the problem of insufficient raw material. In this situation managers perform
function of planning by formulating different plans which can help the organisation to
respond the challenge appropriately. Management role is to create a plan that will
improve the efficiency of the employee. Managers are accountable for evaluating and
controlling the performance of staff and adopting corrective action. Developing rigid
policies and procedures against staff who are unable to fulfill set objectives is a manager's
role. At the same time they also perform the evaluating function as they are responsible
for the evaluation of the ways in which business problems could be dealt properly. In this
case, leader guide the team members and encourage them to perform better as per the
need so that targets can be fulfilled and important order can be completed (Penn and
Pennix, 2017).
 Delegating: Less productivity is also a specified situation for company as As the Toyota
company has a problem of productivity that can be maximized by applying systematic
approach and manager of Toyota can set a specific quality standard while manufacturing
the cars so that more superior products can be produce. In order to deal with this type of
issue managers perform delegating function of organising so that it can be assured that
the required resources for enhanced productivity are arranged and organised in systematic
manner. Along with this, they perform staffing function by recruiting skilled workforce to
enhance productivity and respond such types of problems. In such case leader can
provide specific instructions to the group members that they have to maintain the quality,
which is set by the manager of organisation (Zhou and Ji, 2015).
 Evaluating: This type of manager function is also effective in which manager evaluate
the overall performance of workers at workplace. High employee turnover, inappropriate
working conditions are the situations which are tackled under situational leadership style.
Managers analyse the workforce planning engagement and the flow of employees.
Leaders are suggested to hold the ratios for better staff engagement. In Toyota, manager
takes the decision that all staffs have to work 2 hours extra so that work can be completed
as per the desire. In such type of situation managers perform the function of directing by
providing supervision to the employees when they have to work for additional working
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hours. In this case role of leader is to motivates the employees to work extra so that they
can perform as per the desire and which provide help the organisation to accomplish its
goals.
Role of leader are as under-
Effective team building- There is requirement of team with the help of Toyota can
perform operations and achieve targets. Employees in Toyota have good skills and know;ledge,
so it is responsibility of leader to make team which accomplish targets.
Proper communication with team mates- Communication is one of the major activity
which has to be performed in better and effective manner because they are aware about their
roles and responsibilities. But at the same time, communication have to be ineffective manner.
For instance: if roles and responsibilities are communicated, then it is essential that it is must be
communicated to specific personnel. This makes achieving organisational targets.
Taking feedbacks- Feedback is the way through which quality of services offered to
consumers can be take. While working in team it is essential for leader of Toyota to take
feedback from teammates with the help of which corrective actions can be taken to improve
performance.
P3 Theories and models of approach
Leadership & management plays an important role for the growth of company and they put
their maximum efforts so that organisation can achieve its objectives. With the help of various
concepts and theories Toyota can achieve its goals (Rasula and Stemberg er, 2012).
Contingency leadership
This leadership style mainly focuses upon the context of leadership that particularly
impact upon situational problems. Transportation strike of employees in Toyota was major issue,
which was generated due to lack of proper communication. Leaders and managers countered this
gap by communicating in this situational context. In this case leader guide the team members and
encourage them to perform better as per the need so that targets can be fulfilled and important
order can be completed. This approach is helpful for the leader and manager to take effective
decisions as per the need of contingency which arises in the company. Effective communication
among workers help in improving productivity level by which Toyota attain higher growth at
market place.
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Weakness of contingent approach: For the leader and manager it’s not easy to make
policies and strategies according to the need of contingency. So that effective decisions cannot
be taken for the benefit of Toyota (O'Brien and et. al., 2014).
System leadership
This is a leadership style of leading people beyond the limits and challenges. The
capability of influencing staff members of organisation is considered under system leadership.
Management can use this theory so that productivity can be maximised. For an example,
manager of Toyota can set a specific quality standard while manufacturing the cars so that more
superior products can be produce. In such case leader can provide specific instructions to the
group members that they have to maintain the quality which is set by the manager of
organisation. Targets can be accomplishing as per the specific systems set by the management,
which is helpful to maximize the efficiency and productivity. So that goals can be fulfil as per
the desire (Molina-Azorín and et. al., 2015).
Weakness of systemic approach: As because of complex procedures and systems
employees cannot perform according to the need of organisation as a result Toyota cannot
achieve its objectives
Situational theory
This leadership mainly focusing upon providing adequate sources when it is requiring.
For an example, if there is a situation appear in the company that it has to manufacture 380 cars
in 3 weeks so that an important order can be completed. In such manager takes the decision that
all staffs have to work 2 hours extra so that work can be completed as per the desire. In this case
role of leader is to motivates the employees to work extra so that they can perform as per the
desire and which provide help the organisation to accomplish its goals. This specific approach is
helpful for the managers and leaders to find desired solutions of problems which provide help to
take important decisions as per the demand of situations. So that organisation can achieve its
targets as per its plan (McGeorge and Zou, 2012).
Weakness of situational approach : Due to the dynamic environment a situation can be
occur any time which can not be predicted by the manager and leaders effectively. So that
appropriate decisions can not be taken as per the requirement of situation. As a result relevant
solutions can be analysed and which can affect the productivity of Toyota.
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System theory is best for the Toyota because if a standard system has been introduced by
the management than all workers will follow it and perform as per the requirement in order to
achieve the objectives of company (Guang Shi and et. al., 2012).
TASK 3
P4 Explain the key approaches to operations management
To maximize the efficiency and productivity key operational approaches can be used by
the management of Toyota so that it can achieve its predetermined targets.
Total quality management: According to this approach for an organisation it is
necessary to maintain the quality so that more number of consumers can attract towards the
company. Manager of Toyota can set the specific quality standards and give instructions to the
workers to maintain the desired quality while production process so that products can be superior
which generates value for the corporation. TQM is helpful to contribute the operations because
quality can be enhanced which shows that operation management is effective and provide help to
achieve the goals of organisation (Grote, 2012).
Lean manufacturing: This specific approach states that organisation should focusses to
eliminate the wastage which is helpful to minimize the unnecessary expenses. Manager of
Toyota can organised the training program for the employees so that knowledge and skills can be
enhanced as a result efficiency can be maximize. So that workers can work effectively which is
helpful to minimise the wastage. It makes the operations more productive which help to
minimize the wastage as a result quality products can be produce (Dutta and et. al., 2013).
Six sigma : This approach has focuses to minimize the defects as a result quality of
products can be maximize and unnecessary cost can be eliminate in production process. This
approach can be use by the manager of Toyota which is helpful to reduce defects and errors
while manufacturing process. It support the operations by minimising the errors from the
production process.
P 5 Importance and value of operations management
Operation management is important because it is is help to manage the business
operations in order to achieve the goals of Toyota. It provide value by improving the
management and leadership as a result all employees will perform as per the requirement of
organisation.
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Objective: Main objective of Toyota is to improve profitability level by 10% by
delivering them best quality vehicles and services.
To improve efficiency of manufacturing process by 5% by using optimum utilization of
resources within the production activity.
For attaining these objectives managers can use various approaches which are as follows:
Total Quality Management: It is an approach or principle which is used by large
business entities such as Toyota to make sure that each and every staff member is committed to
maintain high standard of work to maintain or improve product quality to increase organisational
profitability by 10%. It is mainly concerned with modification in quality through continuous
betterment of internal practices which will be beneficial for the organisation to achieve its
objective of increasing satisfaction of clients. With the help of it goal of Toyota can be attained
by increasing participation of employees in improvement activities of products, services and
culture of organisation.
Manager and leaders put their maximum contribution and make strategy & plans for
increasing profitability level. By using the approaches of operation, management quality can be
enhanced and defects can be eliminate as a result profits can increase. By using TQM, approach
management will able to manufacture quality products as per the demand of consumers.
Operation management plays an important role for the growth of company. As a result it can
accomplish its quality goals and targets. By analysing external factors leaders and manager can
take effective decisions which is helpful in the growth of organisation (Huuskonen and
Holleman, 2014).
Helps in providing customized products: It is the management of different business
activities which take place within a company and share in making customized products. Main
objective of Toyota is to enhance satisfaction level of clients and when customised products will
be provided to them then it can help to meet their expectations and attain the objective by
satisfying them (Lee, 2011).
Improve the management and coordination: Operation management is beneficial to
improve the management in the Toyota which is helpful to improves the coordination among the
members. Objective of the company can be achieved when management and coordination within
the production activities will be improved because when all the activities are managed properly
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then it can help to manufacture good quality products as staff members can get appropriate
supervision from their superiors.
Lean production: It is one of the important approach of management as it focus on cut down
wastage along with ensuring about products quality. One of the main aim of using this approach
is to cut unnecessary cost by making entire activities of production of responsive and efficient to
meet customers needs. In this context, Toyota focus on their manufacturing activities to cut down
the unnecessary cost and at the same time also improve the product quality. This will directly
contribute in increasing its profitability level by improving entire activities of manufacturing
process.
Improves overall productivity: To maximize the productivity operation management is
very beneficial. The ratio of input to output is termed as productivity. As if Toyota focuses on
using the available resources in the best possible way to achieve goals, then overall productivity
can be maximizing. Improved productivity will be beneficial for attainment of business
objectives because it can help to deliver good quality products to clients which will result in
higher satisfaction level.
Reduction of waste: Waste reduction is very important for organisation as waste of raw
material will leads to affect profits of organisation. Reduction of waste is very important factor
for organisation as it will help in managing unnecessary cost to company. Operational
management leads to improve in overall production by eliminate unnecessary cost. When waste
will be reduced then it will help to save monetary resources which could be used by organisation
to manufacture good quality products. It will help to enhance satisfaction level of customers
which is the main objective of organisation.
TASK 4
P6 Factors within the business environment that impact upon operational management
Business environment play a significant role in organisation as it put greater impact on
the company and its activities as well. Thus, it is important for company to effectively analysis
the business environment and its impact on the company. This will improve overall performance
of the company. It also help in decision making process of the Toyota in most effective manner.
 Corporate culture: It is essential for the organisation to instruct the employees to follow
the culture. The role of manager and leader is to encourage the workers so that they can
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follow the culture of Toyota and perform its role according to it. For example, employees
within the organisation are not able to work according to it as they think that the values
that are set by managers are worthless then they have to make changes in their decisions.
 Ethics & Values: These are the beliefs which are essential to be maintain in order to
achieve the goals of Toyota. The role of manager and leader is to motivate the workers so
that they perform their duties as per the ethics and values (Al Shobaki and Naser, 2017).
Ethics and values may leave impact upon decision making because managers have to
comply with them for organisational development. According to ethics an organisation is
required to deliver best services but at the same time main goal of a company is to
generate profits. When mangers analyse that enterprise is not able to generate higher
profits they compromise with ethics and form new decisions for betterment of
organisation.
 Corporate social responsibility: It is considered as an effective approach of business
that contribute in sustainable development by giving providing societal and economic
benefits to all the stakeholders. In this regards, Toyota should manufacture their products
as per consumers needs and wants by using proper resources. This will contribute in
attaining higher efficiency within the operational activities. In this, leader and manager
ensure about production process to reduce pollution level within the manufacturing
process. It is related to betterment of local society that contribute in improving living
standard of people.
 Values and culture: It is related to the principle or standard of individual behaviour at
working area. This factor also put their impact on overall activities of company and its
workers as well in both positive and negative way. In organizational context, Toyota
operate their business international level in which the recruit employees from diverse
background and also have their own beliefs and way to perform the job activities. Thus, it
is important to provide healthy and positive working environment that doesn't offend
employees culture and values and society as well. As it also define important role in
operation management and at the time of production process as well. If operation
manager fail in considering employee culture and value then they does not fulfilling the
set target of productivity and efficiency level.
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CONCLUSION
As from the above report, it has been concluded that for the success of business operation
and management is very helpful and it provide support to the company to achieve its objectives.
There are distinct roles which are performed by the manager and leaders so that organisation can
accomplish its targets. Different theories and approaches of leadership are helpful to encourage
the workers to perform better. Manager is responsible to analyse the external factors so that
business activities does not get affected. Recommendations are helpful to take make an effective
action plan for the growth of corporation.
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