Leadership and Management: Toyota's Operational Strategies Report

This report provides a comprehensive analysis of leadership and management practices within Toyota, a prominent automotive company. It begins by defining the roles and characteristics of both leaders and managers, highlighting their distinct responsibilities and approaches. The report then explores the application of these roles within various organizational situations, such as conflict resolution and rapid change management, examining how Toyota adapts its strategies to different challenges. Furthermore, it delves into the various leadership and management approaches employed by Toyota, including behavioral, situational, contingency, and systems management, evaluating their strengths and weaknesses. The report concludes with a discussion on the importance of effective management and operations for organizational success, recommending that Toyota's leaders continue to conduct thorough market and workplace analyses to inform their strategic decisions. The assignment covers topics such as leadership styles, conflict management, organizational structure, and operational efficiency within the context of a real-world business environment, providing a valuable case study for understanding leadership and management principles.

Management
and Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different roles and characteristics of a leader and a manager..........................................3
TASK 2............................................................................................................................................6
P2.Different roles of management and leadership according to different organisational
situations.................................................................................................................................6
P3. Different approaches to leadership and management to draw conclusions.....................7
TASK 3............................................................................................................................................9
P4.Explanation of the key operational approaches to operations management and their value. 9
P5 Importance and values of operation management...........................................................12
TASK 4..........................................................................................................................................15
P6.Evaluate business environment factors that affect decision-making of leaders and
managers...............................................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Management is referred to art or techniques in order to get things done from other in
appropriate and effective manner. By this manager and leader of an organisation can coordinate
and organised work in effective and appropriate manner. Operations refers to activities and
functions which is conducted in an organisation in order to attain goal and objective in
appropriate manner (Balasubramaniam and et. al., 2016). Both operations and management are
essential for an organization in order to conduct functions and activities in effective
ways.Organisation taken in this assignment is Toyota which is established in year 1937 by
Kiichiro Toyoda. They are conducting their business operation and functions in Automotive
industry and its headquarters is in Toyota city, Aichi, Japan. Topics covered in this report are
various roles of managers and leaders, characteristic of both leader and manger, functions of
manager and role of leader. Along with this it covers different operational functions of an
organisation and relationship among management and leadership in respect to various theories
and models.
TASK 1
P1. Different roles and characteristics of a leader and a manager
Toyota is one of the famous companies in automotive sector which headquarter is in
Japan and establish in 1937. There are variety of product and services ranges which is offer by
respective company. Products offer by this company are auto mobiles, luxury vehicles, engines,
commercial vehicles and so on and services are banking, financial and leasing. Toyota serve their
products and services at worldwide level such as Australia, Bangladesh, Europe, India, Japan,
Philippines and many more. This organisation serves their products with various divisions like
Toyota, Ranz, Lexus, TRD, Scion, Gazoo, Racing and many more. Management of Toyota
conduct research on regular basis and develop products and services with advance technology.
Management structure is referring to series or structure in which an organisation conduct
their work and operations in order to achieve goal and objective in effective manner. It can be of
two type that is flat structure and hierarchy structure (Christopher, 2016). Management structure
which is adopted by Toyota company is hierarchy structure. In which work is conduct through
various levels and it is considered as a pyramid structure. In this manager or supervisor make
strategies and guide their staff that how they conduct their work in appropriate and effective

manner. In Toyota Strategies and plans are developed by manager who work at headquarter and
other locations employees follow guidelines in order to accomplish work and achieve objectives.
Manager: - Manager is a person who take in charge and manger their employees and
staff so that they perform their work in effective and appropriate manner in order to achieve goal
and objective (Cordray and et. al.,2015).
Role of manager: -
 Role of a manager is making strategies and plans according to situation which company
is facing in current time.
 Manager of an organisation plan training and development sessions for employees who
required. So that they enhance their knowledge and conduct work in appropriate ways
within time.
Characteristic of manager: -
 Manager of a company thinks about day to day activities which help them in making
strategies and plans in appropriate manner.
Illustration 1: Toyota Company Hierarchy
(Source: Toyota Company Hierarchy, 2018)

 It is major characteristic of a manager that they have ability to deal with employees’ issue
in order to promote effective employee relation at workplace.
Leader
It refers to an individual which help their employees or staff in achieving goal and
objectives in appropriate manner (Evangelopoulos and et. al., 2016). It basically provides
directions and guidelines to employees that who they can perform well and effectively.
Role of leader: -
 It is role of a leader to motivate and encourage their staff or team, so that they work
effectively and efficiently.
 Major role of a leader is to make task interesting which encourage employees and also
guide staff so that they provide their full potential.
Characteristic of leader: -
 It is characteristic of a leader to see broad picture and identify more opportunities for an
organisation.
 Leader of a company have ability or characteristic to communicate with all level of staff
in appropriate and effective manner.
Difference: -
Leadership Management
In leadership supervisor motivate and inspire
their employees in effective and appropriate
manner.
Whereas management of an organisation direct
and monitor staff so that they work in proper
and effective manner in order to accomplish
work.
In leadership there is production of changes
and movements.
The responsible function of leadership is based
on directing employees to work together for
common goals regardless of individual
differences.
In management manager produce order and
consistency.
The major functions of management are
focused on controlling, planning, organising,
and directing employees’ activities with aim of
achieving business goals and objectives.
For improving and updating business operations and functions there are various
leadership and management approaches which help a company in conducting work in

appropriate and effective manner (Christopher, 2016). Toyota use behavioural and situational
approaches of management and leadership in order to conduct their operational functions in
effective and appropriate manner.
Behavioural Approach:
This approach is basically focus on behaviour and ability of an employees who is
working in an organisation. Every person has different style and skills of conducting work. So,
when manager of respective company allocate work to staff, they will consider their skills and
ability. By this employee feels motivated and conduct their work or task in appropriate manner
which help them as well as organisation in attaining goal and objective in effective manner. By
this manager of respective company can made strategies and rules which help them in
conducting operations and functions in appropriate manner. Through this satisfaction to
individual employees is served to manage motivation and to attain goal and objectives in
appropriate and effective manner.
Situational Approach:
It refers to method in which manager of a company make strategies and plans according
to situation and circumstances that company is currently facing. This will help an organisation in
conduction work or task in appropriate and effective manner. Manger and leader of Toyota able
to make strategies and plans according to current situation which they are facing. In this focus of
leader, is on seeking employee advise on how to manage changing business situation which
supports innovation and employees’ interest in business activities which aim in boosting
operational efficiency.
TASK 2
P2.Different roles of management and leadership according to different organisational situations
In an organisation manager and leader react differently in different situations and
condition. They also make strategies and plans according to situation so that employees perform
in effective and appropriate manner (Grahn, Johansson and McKelvey, 2014). Manager and
leader of Toyota plays different role according to situation, which is mentioned below: -
Conflict Situation- This situation is occurred in respective company when someone do
discrimination on basis of gender, colour, religions, values, salary, positions, cast and many
more. To resolve this situation manger and leader plays different roles, so that staff conduct their

work in effective manner. For dealing with this situation contingency is used by respective company
manager as it supports systemic management of employees and work as per business ethics. Role of
Toyota manager in order to resolve conflict is that they develop rules and regulations related to
discrimination at a workplace. They also discuss issues and problems with staff and then make
decisions. However, role of leader in resolving conflict in Toyota is that they discuss issues with
employees and try to find out root cause of conflict. Then motivate and encourage employees to
resolve issues of conflict, so that they work effectively. In this leader implies use of system
leadership theory as it helps in giving unbiased conflict resolution advice on the basis of work.
Rapid Changing Situation- It refers to change in situation or condition on continuous
basis at respective organisation, which affect there working and operations (Haimes, 2015). So,
manager and leader of Toyota update their strategies and plans accordingly. Manager of
respective company can use situation approaches for dealing with rapid change in situation. In
this company role of manager in changing situation is that they develop and plan strategies
according to situation and then train employees accordingly in order in attain goal and objective
in appropriate ways. To manage this type of situation manager of Toyota implies use of system
management approach which set appropriate framework for managing organisational changes.
Role of leader in this managing dynamic business situation is to imply use of situational
leadership which supports rapid changes as per business environment. In this focus of leader of
Toyota is on encouraging staff so that they accomplish work or task in effective manner which
help in achieving objective of Toyota.
P3. Different approaches to leadership and management to draw conclusions
For conducting operations and function in effective and proper ways an organisation
adopts various type of approaches and theories which provide them a guidelines or outlines.
These leadership and management approaches have some advantage and disadvantage, so before
adopting any method conduct analysis. Some major approaches which is use by Toyota company
in order to conduct work in effective manner is given below: -

Figure 2: Situational leadership
(Source: SITUATIONAL LEADERSHIP MODEL, 2019)
Situational leadership: It is a leadership style in which leader and manager of respective
company develop strategies and plans according to them by concerning situation and
conductions (He, Li and Chai, 2014). This will help Toyota staff to work in proper ways in any
situation and attain goal and objective.
Strength: Through this approaches employee of Toyota feels motivated because their employer
guide and train them according to situation which help them in conducting work in proper ways.
Along with this, there is enhancement in productivity of employees of respective company as
well as Toyota because employees conduct their work in appropriate manner.
Weakness: This strategy is time consuming and sometime manager and leader face confusion in
according to situations.
Contingency leadership: It is a leadership style in which manager and leader of Toyota
match their leadership style with right situation or condition (Hugos, 2018). By this manger and
leader able to adopt appropriate theory for any issues and condition.
Strength: Contingency theory is a flexible which can be adopt by manager and leader of Toyota
in any situation and issues.

Weakness: In this approach theoretical base is missing so manager and leader has to think
through all alternatives which is possible which is time taking.
System management: It refers to theory which help manager in managing interrelations
in attaining goals of business environment in systematic ways (Jacobs, Chase and Lummus,
2014).
Strength:This approach will help manager of company in achieving goal and objective in
effective manner. Along with this, by using system approach manager are able to focus on
various dimensions of organisation and management.
Weakness: Sometime making decision through system approach is time taking.
From above discussed point it can be concluded that effective management and operation
leads to successful organisation. Manager and leader of respective firm plays important role in
managing operations and functions. Manager and leader apply various theories and methods in
order to conduct work in appropriate and effective ways. They also decide proper structure of
working which help in smooth functioning of company. So, it can be recommended to manger
and leader of Toyota that they must conduct proper research and analysis of market as well as
workplace before decide approaches. So that they can decide appropriate and effective strategies
for nay issues and strategies.
TASK 3
P4.Explanation of the key operational approaches to operations management and their value
There are various type of approaches and techniques which an organisation uses to
conduct their work and operations in appropriate manner. Major approaches which is selected by
manager and leader of Toyota to conduct their work are six sigma and lean principles. Whose
explanation is given below in context of respective company.

Figure 3: Six Sigma
(Source: Hugos, 2018)
Six Sigma: - It valuable for manager and leader of Toyota because by it they identify
issues and problems within an organisation. Through this they able to make plans and strategies
accordingly and resolves issues which promotes systematic production and functional layout
(Pundi and et. al., 2015). This can be conduct by doing five steps that are define, measure,
analyse, improve and control. At the stage of define Toyota manager and leader identify issues
and problems which they are facing currently. In next stage (measure) they measure all issues
and problems which they identify at first stage then they conduct analysis which is third step.
At this manager and leader issues and identify which is done at priority basis and make
strategies accordingly. In improvement stage analysis their strategies and plans and identify is
there is requirement of improvement or not. At last stage Toyota company manger and leader
implement strategy and control and maintain work or operations accordingly. The approach is
valuable for the business because it helps in identifying loopholes at initial stages which reduce
the risk of waste and aid managing sustainability in supply chain management.

Figure 4: Aspects of lean
(Source: Grahn, Johansson and McKelvey, 2014)
Lean Principles: - By this manger and leader of Toyota company able to identify need
and demand of their target customers. By this they also able to reduce wastage from their
production or manufacturing process. This will help manger and leader of respective company in
developing strategies and plans in appropriate and effective manner (Punyateera and et. al.,
2014). This is done by adopting five stages which is specify value, map the value, establish flow,
implement pull and work to perfections. At first stage (specify value) manager of Toyota conduct
analysis and identify need and demand of customers and then at map the value stage they
identify demand of customers which help them in enhancing their profitability. At third stage
which is establish flow strategies and information regarding new product or plan is
communicated among staff. In fourth and fifth stage which is implement pull and work to
perfections manager of Toyota implement new strategy or launch new products and identify it
seems beneficial for them or not. The approach is valuable for Toyota because it helps in

reducing wastage from process and also able to conduct work in particular time in appropriate
resource and funds. This can be done by research and development department of company.
Total Quality Management: It is a process in which manager and leader of an
organisation to ensure quality of every things which is conducted at there workplace. It include
various process such as production process, supply chain, quality of products, identify need and
demand of customers and many more. By company able to maintain high standard of products
and services in effective manner. Manger and leaders of respective company develop strategies
and plans according to total quality management method so that they conduct work and produce
products in effective manner.
Just in Time: It refers to the process in which company reduce time of production as
well as they communicate with suppliers and customers in effective manner as well as timely.
Manager of respective company develop strategies and process which improve their productivity
with in time duration.
KAIZEN: It is a Japanese word which means innovation in a business in order to attain
goal in effective and appropriate manner. In this it is responsibilities of respective company
manger to develop innovative process and strategies by which they able to attain goal. Along
with this manager of respective company develop products with innovation and creativity which
help them in attracting customers in effective and efficient manner.
P5 Importance and values of operation management
Toyota is famous Japanese automotive manufacturing company which is establish in
1937 by Kiichiro Toyoda. It is a public type company whose headquarter is in Aichi, Japan.
They serve their products and services at worldwide level (Marchington and et. al., 2016). Major
products which is offer by Toyota are luxury cars, commercial vehicles, engines, auto mobiles
and many others. Along with this they also offer several services like banking, financing and
leasing. Respective company serve their products through certain divisions like Toyota, TRD,
Gazoo Racing, Scion, Ranz, Lexus and many other.
Key operation refers to those activities which is conduct by an organisation in order to
fulfil need and demand of customers in effective manner. For this company design products and
services with high quality and with high technology. In respect of Toyota their key operations are
making product and services with high quality and advance technology which help them in
gaining competitive advancement. Along with this there are certain other key operation such as

control and maintain distribution system, management of inventory, quality management and
many others. These all key operation help respective company in achieving goal and objectives
in appropriate and effective manner.
Objective of Toyota:- The major objective of Toyota is to full utilization of their capabilities
and resources in order to achieve 100 % quality output.
In an organisation there are various key operations and functions which they have to
conduct in appropriate manner in order to achieve goal and objectives. Manager of Toyota plays
their effective role and responsibilities in order to conduct operational functions
(Narayanaswami, Raghunath and Rosu, 2016). Some major operational function at respective
company and role and responsibilities of manger which help them in attaining their objective
accordingly are given below: -
Development of products and services:
This refers to activities of designing automotive according to requirement, need and
demand of customers which help Toyota in satisfying their customers and fulfil their demand.
This operational function is basically conduct by research and development.
Roles and Responsibilities of Managers:
 Manager of respective company conduct market analysis and evaluation on regular basis
by which they able to know new technology and customers demand and need.
 By this manager of Toyota also able to ensure availability status of resources at their
workplace. In this role of managing person is to ensure optimum utilisation of resource
for managing waste.
Network System:
This refer to activity or operational function which help Toyota company in reaching and
attracting their customers in appropriate and effective manner and this will be done by effective
network system. This activity is related to distribution and serve products and services to
customers and ensure that their target audiences will reach to products easily and timely (Penn
and Pennix, 2017).
Roles and Responsibilities of managers:
 In respective company it is responsibility of manager to identify sustainability in logistics
and to manage lean and systemic flow of goods and services.

 They also ensure that products and services must be available at right time at right
location and in right condition. In this focus of firm in maintain quality of supply chain in
order to attain operational efficiency.
 They must develop appropriate and effective relation with with there suppliers networks
so that respective company reach to customers in effective and appropriate manner.
Scheduling:It refers to the activity in which manager prepare schedules and plans to conduct
work in effective manner and reach to customers at time. By this company able to fulfil need and
demand of customers in appropriate manner. Along with this when manager scheduled every
things in proper manner, employees accomplish there work in effective and efficient manner.
Roles and Responsibilities of managers:
 It is role and responsibility of manger to prepare scheduled plans in effective and
appropriate manner. So that employees able to work in effective manner.
 When manger schedule whole things in proper manner they able to conduct every thing
in effective manner and at effective time.
Process Management: It refers to the activities related to process which is conducted in an
organization in order to produce goods and services in effective and appropriate manner. For
this manger of Toyota develop appropriate management process which help them in attaining of
goal and objectives in effective manner.
Roles and Responsibilities of managers:
 It is role and responsibilities of a manger that they develop appropriate process of
production which ends at distribution, so that they attain goal and objectives in effective
and appropriate manner.
Capacity Management: It refers to internal capacity of an organisation to adapting changes and
conduct work in effective manner. Manger of Toyota develop and maintain effective activities
which help them in enhancing capacity of employees in effective and appropriate manner.
Roles and Responsibilities of managers:
 It is responsibility of manager of respective company to do develop appropriate activities
which enhance capacity of management. For this they must motivate employees,
encourage them, develop steps in effective manner and many more.

TASK 4
P6.Evaluate business environment factors that affect decision-making of leaders and managers
In an organisation decision of a leader and manager get influence by various internal and
external factors. Along with this these factors affect business operations and functions of Toyota.
Some of major external factors which affect respective company decision making process is
given below: -
Impact of CSR: - It is related to activities which is done by a company in order to do
social welfare. When manger and leader of respective company conduct CSR activities, they able
to gain more good will and customer loyalty. Focus of manager of Toyota is on implying to CSR
practices like 'Always Better Cars' and 'Enriching Lives of Communities', etc. Further, leaders of
firm ensure safe working condition of employee. CSR activities of respective company affect
decision making of there manger this is so because manger has to develop new CSR activities so
that they attract more audiences. They also change decision accordingly to need of society and
issues face by society.
Business Ethics: - It refers to the ethics, principles or norms which is develop in an
organisation and it will lead to smooth functioning of operation and functions. So, manager and
leader of Toyota develop and maintain appropriate business ethics by which employees will clear
about their work and responsibilities. Business ethics of TOYOTA re focus on managing
innovation on shared goals and objectives of business regales of individual differences. When
there is change occur in business ethics decision making of respective company manger get
influenced because manger has to develop or change there rules and policy accordingly. That
help them in attaining goal and accomplishment of work in effective and appropriate manner.
Corporate value:- It is also know as company value and core value. It refers to
fundamental belief on which an organisation's business and their behaviour is based. So it is
responsibility of respective company manager to develop as well as maintain proper corporate
value so that employees can feel motivated and satisfied. Along with this when their will be
change take place in corporate value it will directly impact on decision making because Toyota
manager need to develop rules, regulations and policies accordingly.
Corporate culture:- It is define as several factors which are shares such as attitude,
standards, values and beliefs which characteristic staffs of a firm as well as it will also define
their nature. It is necessary for Toyota manager to create and maintain proper corporate culture

because it will decide attitude, belief, values etc. of company and its employees. In addition to
this if their any change occur in respective factor it will impact on decision making procedure.
This is so because manager need to develop plan of action accordingly.
Sustainability:- It is also define as green business, it refers to business activities which
negatively impact on global or environment at minimal level. By adopting this factor manager of
Toyota can gain more and more goodwill as well as it will also attract more customers or society.
So it is responsibility of their manager to take proper decision so that they can make effective
products or vehicles which will not impact negatively on the environment.
Stakeholder expectation:- Stakeholder are consider as essential portion of a firm
because they have personal interest in organisation functions and operation. It is necessary for
respective company manger to consider their stakeholder and their expectation in decision
making process because it will help them in developing proper strategies which leads to
attainment of goal as well as objective properly.
Technological factors: - It related to situation and condition which occur due to regular
change in technology. If there is any update or change occur in technology respective company
manger decision making get affected because they have to make decision and strategies
accordingly (Balasubramaniam and et. al., 2016). By this they able to attract more and more
customers and also able to retain old one. For adopting technological factors in effective manner
manager and leader of respective company conduct market analysis and evaluation. By this they
also able to know current need and demand of customers. Such as if any new strategy is come in
market and then its responsibility of manger to manage technological innovation in auto mobiles
regales of incurring cost. Along with this it also makes operation and functions of company
effective and easy. Change in technology affect decision-making of a manger because they have
to develop strategies, plans, process and regulations according to new adopted technology. By
this they able to adopt change in effective and appropriate manner in order to attain goal and
objective in proper way.
Economic factors: - This is a factor which is related to economic conduction of country,
company and customers. Economic condition includes various factors such as inflations,
unemployment rate, interest rate, taxation rate and so on. Decision of manager and leader at
Toyota get affected when there is any change occur in economic condition because they have to
develop policies, strategies and product according to current situation of country, company and

customers. Such as if there is any change occur in economy of company, then manager and
leader of company design and develop strategies and plans accordingly so that employees didn't
feel demotivated. When there is change occur in economical factor of country or company,
decision making of manager and leader get affected this is so because manger has to develop
plans and strategies according to economic condition of company as well as country. If they don't
do so they may face reduction in customers loyalty, customers bases and profitability.
Form the above-mentioned point it can be concluded that an organisation has various key
operation which they conduct to gain competitive advantage and be successful in marketplace.
Such as developing product, distribution and control system, research and development and
many other (Cordray and et. al.,2015). For conducting key operations and function in effective
manner manager and leader of a company use different type of approaches.
There are internal and external factors which affect decision making of a manager and
leader. An organisation can improve their working and succession status by using various
methods and approaches like situational etc. (Evangelopoulos and et. al., 2016). According to
this it can be recommended to Toyota manager and leader can conduct market analysis on
regular basis so that they able to identify new technology and customers need and demand.
Through this they able to design strategies and plans in more effective and appropriate manner.
CONCLUSION
From above mentioned topics it can be evaluate and conclude that they manager and
leader of a company plays various roles in order to make successful their organisation. For which
they use various approaches and method that help them in making strategies and plans in more
effective and appropriate manner. They also develop strategies and plans for conducting key
operations and functions of an organisation in effective and appropriate manner. But sometime
decision of manager and leader get affected due to external factors.

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