Toyota Operations: Leaders, Managers, and Management Theories Report

This report provides an in-depth analysis of leadership and management practices within Toyota, a prominent Japanese car manufacturer. The study begins by defining the roles of leaders and managers, highlighting their differences and responsibilities in achieving organizational goals. It then explores how these roles are applied in various situational contexts, such as technological changes, labor turnover, and conflict resolution. The report further examines different leadership theories and models, including situational, system, and contingency approaches, providing insights into their application within Toyota's operations. It emphasizes the significance of operations management for achieving business objectives and discusses the factors within the business environment that impact operational management and decision-making processes. The report concludes with a summary of the key findings and their implications for Toyota's overall performance.

Management and Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Definition of leader and manager.........................................................................................1
LO 2.................................................................................................................................................2
P2 The role of a leader and the function of the manager apply in different situation context....2
P3 Different theories and models of approach including situational leadership, system
leadership and contingency.........................................................................................................3
LO3 .................................................................................................................................................5
P4 Approaches to operations management and the role played by leaders and managers in it. .5
P5 The importance and value of operations management for the achievement of business
objectives.....................................................................................................................................7
LO 4.................................................................................................................................................8
P6 The factors within business environment impacting operational management and decision
making by leaders and managers................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Management can be defined as the administration of an organization that helps the firm in
making strategy and coordinating the efforts of its employees. It assists firm in achieving
objectives. Operation is one of the major functions in an organization along with supply chains,
marketing, finance and human resources (Chiu, Balkundi and Weinberg, 2017). The operations
function requires management of both the strategic and day-to-day production of goods and
services. Present study will lay emphasis on Toyota. It is a multinational, Japanese car
manufacturing company. Firm has been established in Japan. Current CEO Akio Toyoda
is the main brain behind all the decission in the company as every senior authority is directly
report to the CEO in the Toyota. Toyota Present study will lay emphasis on role of leaders and
managers. It will also provide the role of leaders and managers in different situational context.
Study will highlight the importance of operations management in organization.
LO 1
P1 Definition of leader and manager
Introduction :
The below section explains the meaning of leader and a manager and how the role of a
leader and a manager differ from each other.
Leader: Powell and Butterfield, (2015) stated A leader is a person in organisation who lead a
group of people towards the achievement of a goal and a person who convinces other people to
follow his ideas and inspires confidence in other people by motivating them which moves them
to take better action. It is a art which motivates the team of people to work on towards
achievement of goal. Leader use leadership skills which makes the team of people to follow his
or her direction (Bosworth, 2016).
Manager: (Bosworth, 2016) stated A manager is a person who is responsible for managing the
work of organization. An employee who is in change of all the activity of the organisation which
are undertaken by individual and group of individual in the organisation to achieve the goal of
the business efficiently. Manager controls the department of organisation and helps in decision
making or guide the people who work for them. And has a complete responsibility of managing
the staff of company. On the basis of planning , organising , staffing , coordination and
controlling the manager manages his work to achieve the objectives and goals of organisation
(Powell and Butterfield, 2015)

Differentiate between the leader and manager
Basis for comparison Leader Manager
Focus It focuses on leading people to
work in better ways.
It manages the work according
to the department.
Guidance Guides people of Toyota
company for the growth of
individual
Manager gives instruction
what to do for the growth of
Toyota company as whole.
Decision making Leaders allow team to take
their own decision for the
Toyota company growth.
Manager takes decision on the
behalf of people for the growth
of company.
Honesty Leader maintain honesty with
their team of Toyota company
(Gjerde, 2018).
Manager maintain honesty
with his task which he
provides to the staff.
Relationship Leader make relationship with
the team.
Manager makes relationship
with seniors and subordinates.
Dedication Leader dedicate their work
towards the future of Toyota
company.
Manager gives complete
dedication on getting the
current job done (Dumitru,
Motoi and Budica, 2015).
LO 2
P2 The role of a leader and the function of the manager apply in different situation context
Technology changes
When the sudden change in technology occurs in Toyota company .
The leaders of the team first learns the new change and than take a step for their team and guide
them about the new technology. And motivates the workers about how the technology can give
them better results. Leaders try to excite the workers to learn new thing so that they can give
their best performance in the world of technology to achieve the goal of individual and
organisation goal .leader of Toyota company provide them proper training and make them learn

new software which can develop the team spirit of company (Parisio, Rikos and Glielmo, 2016).
Role of leader in Toyota is to create positive environment so that people do not resist to
technological changes. Whereas manager has to give them training, they play the role of
trainer .This helps the company in managing technological changes' situation effectively.
When the sudden change in technology occurrences the manager of the Toyota company first
make decision on the basis of technology .which means first the manger find out those workers
who are already more focused on technology and the manager give less focus on those who
actually know very less about the technology. Toyota manager discuss changes only with leaders
and subordinates so that they can take decision in his behalf and how to make them learn new
technology (Zare and et.al., 2016).
Labour turnover:
The leaders of the Toyota company provide rewards to their employees and worked for
their hard work which they have given to their company and they find effective idea which can
tell them that they are appreciated and make them to stay with company longer. Leaders invest
their more time and create good communication so that the environment of organisation becomes
friendly where the workers easily express their view and problem with their leaders without any
hesitation .leaders try to make respectful environment for the employee and give opportunity to
do more education. Training and promotion on the basis of their hard work (Jarvis and et.al.,
2019).
Manger of the Toyota company provide compensation and benefit packages such as
bonus ,compensation , health facilities and accommodation which attract the employees to work
with them for a longer period of time and flexibility at work place. And the manager make sure
that the employ must have proper work space ,comfortable chairs, reliable internet and
computers. Function of manger is to motivate employees so that they feel happy and retain in
Toyota for longer duration. Function of manager in Toyota is to give training to staff so that they
understand their job role and continue working in organisation for longer duration.
Conflict:
Conflicts which normally occurred because of the miscommunication between the two or
more person through face to face , non verbal dialogues. In this situation the leader make sure
that the members must solve their issues on their own through which the conflict helps the team
to develop their communication skills .If any serious matter occurs the team leader try to listen

their issues and give suggestion about how they can cure their problems and make sure that their
issues never reach to higher level which can create negative environment. leaders make sure that
the environment of Toyota company always be peaceful (Yi, Shen and Lei, 2019).
The manager of the Toyota company try to talk with both the participants privately in room
individually and discuss about the issues so that their issues do not disturbed the whole
environment of company. According to the situation and issues the manager make fair decision
for both participants. And if the situation out of controls than the manager of company discussed
this issue with seniors for the results (Albrecht and Dasigi, 2016). Function of manager in Toyota
in conflict situation is to negotiate with employees so that their issue can be resolved timely.
Another function of manager of Toyota is to conduct informal meetings with staff so that their
needs can be identified and can be addressed timely. This helps in resolving conflict situation
quickly.
Characteristics of leader and manager
Leader must have positive behaviour towards the work, this behaviour seen by other
employees and they also follow the same thing which create positive atmosphere in Toyota.
Manger has characteristics of motivation, individual encourage others so that they perform well
and retain in business for longer duration.
P3 Different theories and models of approach including situational leadership, system leadership
and contingency.
Situational leadership:
Its not always easy to be leader .The leadership of toyota company is executed in different ways.
(1) Telling (Directing)
In this situation , the leaders of the Toyota company deals with the employee that are not
unmotivated .And sometimes the new employees of Toyota company not able to manage the
task independently which creates threat for the employees and demotivate their confidence. But
good support of leaders can solve the problems of employees and the employees get lot of
direction when its come to the task which they need to complete. The leaders are the one who
makes the final decision and compliments the worker of Toyota company about the progress they
are making to achieve their target goal of company (Balasubramaniam and et.al., 2016).
(2) Selling(Coaching)

At this situation there are employees who have not reached full maturity because of lack
of knowledge and skills and this make employees feel insecure. By giving undivided attention
and by listening to the employees and giving proper training can dissolve the employees
problems which they are facing during job task. The leader provide task to the employee and
motivate them and convince them that they are able to do that task (Thaler, Priest and Fuchs,
2016).
(3) Participating(supporting)
In this situation sometimes the employee feel insecure because of the given task they feel like
that they are not capable of doing this work and create doubt in their mind. To take away this
insecurity Its is important for the leaders of Toyota company to support their team. If the leader
give them opportunity in decision making than the employees able to do work
independently .The leaders of Toyota company try to remind their team member for the task
which they did in past to increase their confidence level. And through the good conversation and
communication they can find someone can talk to (Chiu, Balkundi and Weinberg, 2017).
(4) Delegation
At this situation the employees of Toyota company carried out their task independently and have
increased level of task maturity which results they need less support and motivation and through
this the employees starts to share their progress of their hard work .Because of the independence
decision making they become motivated and the result the leader does not need to consult with
the employees .And the pressure of leader to guide workers becomes less (Bosworth, 2016) .
System leadership:
System leadership is the type of leadership theory that explains that leaders have to pay
attention on qualities of persons in order to deal with diverse people effectively. Leaders has to
work in organisation and also have to act as changing agents. They find innovative ideas to raise
performance of company to great extent. System leadership emphases on factors that impact on
working of staff members (Jarvis and et.al., 2019). Leaders always create healthy workplace
atmosphere that supports in raising adaptability with the changing elements. System leadership
always emphases on tactics that are helpful in meeting with needs of individuals and organisation
as well. This concentrates on taking uniform decisions so that people become loyal towards the
brand. On other hand system leadership sometimes ignores the inter dependency element which

creates issue in getting desired results. But system leadership framework supports in boosting
morale of workers and they become positive and raise their production capabilities.
Theories of leadership
Trait Theory
This theory believes that to excel in leadership, people are already born or made with
special qualities of leadership. This theory focus on the evaluation of physical, mental and social
characteristics in order to know the mutual characteristics that are present in leaders.
Transactional Theory
The transactional theory builds a relationship between a leader and its followers which
helps in generating mutual benefit. The leader appropriately rewards or punish its subornidates to
seek the best out of it. It is a leadership practice that help in improving the compliance of
organisation to improve employee's performance by the means of rewards or punishments. This
will help the management of Toyota to keep their employees motivated for a short term.
Contingency leadership theory
11 Fielder's contingency Model
This model is start by the understanding a leader's behaviour of the Toyota company. They
conduct test known as LPC (Least Preferred co-workers) It is used to enhance leadership style.
Leaders of Toyota company to conduct test helps to get idea of a person with whom they would
not want to work. After the test the leader circle the number of choice which describe the quality
of a person who can be the most difficult to be around in work environment of Toyota company
(Thaler, Priest and Fuchs, 2016).
Besides this, different leadership approaches are carried out and applied by the
management of Toyota. Some important leadership approaches which are carried out within firm
are:
Democratic leadership: The democratic leadership which is followed within organisation
includes the involvement of employees in the decision and policy making. It supports the rise in
employee's loyalty towards the organisation and improves their performance.
Transactional leadership: It is a leadership practice that help in improving the compliance of
organisation to improve employee's performance by the means of rewards or punishments. This
will help the management of Toyota to keep their employees motivated for a short term.

LO3
P4 Approaches to operations management and the role played by leaders and managers in it
Introduction
The below content focus on the key approaches of operations management and the role
played by leaders and managers in implementation of these approaches in Toyota. It further
explains the importance and value of operations management in achievement of business
objective.
Meaning of operation management
Operation Management is concerned with the administration and monitoring of business
practices to establish the maximum level of efficiency in the organisation. It is the process of
converting input into output as effectively and efficiently as possible and aim to generate a
higher level of profit to Toyota. It is concerned with planning, organising and supervision of
production and manufacturing process. It aims to balance costs by generating greater revenue
leading to higher profit. It designs and controls the process of production and ensures optimum
utilisation of resources (Chiu, Balkundi and Weinberg, 2017).
Importance of operation management
 It increases the overall productivity of Toyota: Operation management helps the business
in increasing the efficieny level of the employee and manager which eventually result in
increase of the productivity of Toyota.
 It prevents duplication of efforts: Operation mangement helps the business to oversee the
all the activity by phase to phase which helps the business to prevent dupplication of
work.
 It improves customer satisfaction: Operation management always tries to improve the
quality of the product produce by the organisation which helps the firm to satisfy
customer need as quality of product plays a vital role.
Approaches to operations management
Operation strategy decision (Long range) : It is the method of defining and selecting
Toyota's strategy from different course of alternatives and making decisions for the allocation of
resources in order to pursue the strategy. The operation strategy decision implies a long range

of period. The leader communicates the strategic map to its members and gives direction to
conquer it. The manager employs and trains workforce to action the strategy map.
Tactical Strategy (Medium range): It is concerned with emphasizing the present
operations of various parts of Toyota. It is a strategy implemented for a period extending about
more than one year and it employs medium range of period. The leader discusses the issue with
members to develop new source of ideas and the manager puts these ideas in right place in right
time.
Operation planning and controlling strategy (Short range):It is the approach of linking
strategic strategy to tactical strategy and expresses milestones, benchmarks and conditions of
success for Toyota. It defines where we are now, where we want to be, how to get there and how
to measure our progress. The leader communicates the milestones to the subordinates and guides
them while a manger develops a set of skills and competencies in the employees so that they can
cater to the process improvement requirements (Bosworth, 2016).
Six Sigma : It is a continuous improvement methodology Toyota uses for eliminating
defects in process, product or service. It is a statistical and data based approach which identifies
the variation of data set gathered in the process. There are 5 basic phases of six sigma that
involves defining, measuring, analysing, improving and controlling the existing process and
redesigning a better one. The implementation of six sigma in Toyota reduces waste and increases
its profit & shareholders wealth. The leader instructs its fellow team members to work as per the
plan and manager evaluates and monitors the performance of employees.
Total Quality Management (TQM) : TQM is an approach to long term success and
stability through customer satisfaction. It is concerned with improving the quality of products of
Toyota through a continuous improvement process. TQM accounts for all quality measures taken
on all the levels of production. Toyota balances its cost by reduction of errors and stew and
increasing the profit by adding higher value to its customers. The leader directs its subordinates
to focus on the improvement of quality of processes and manager manages the resources required
to cater the total quality management (Powell and Butterfield, 2015).
The organisation will help in improving the Top Down planning process that includes strategic
planning on top followed by tactical planning and operational planning on bottom.
Transformation Process Approach :It is concerned with a group of activities which
consists of one or more inputs and transforms and add value to it and generate output as per

customers. The transformation process approach uses customer feedback as the primary base of
improvement. The transformation process helps Toyota in reducing complexity and increasing
customer value. The leader guides its team to consider on customer feedback while production
process and manager trains its member to strive for a transformation process which is effective
(Thaler, Priest and Fuchs, 2016).
Just in time : It is an inventory management strategy where raw materials are ordered and
received only when they are required in production process. It reduces storing cost and inventory
carrying cost in Toyota.
Role of leaders and managers
Role of leaders: The leaders will look after the assessment plans and see through its effective
implementation which assists in improving the operational capacity of Toyota.
Role of managers: the managers will look after the evaluation of the risks and opportunities of
various operational approaches and develop an action plan to be implemented accordingly.
P5 The importance and value of operations management for the achievement of business
objectives
The operation management is an important approach that will help in improving the quality of
operations which are carried out to achieve the business objectives. It has following significance
for Toyota:
 Operating management also helps Toyota to optimum utilisation of the resources and to
reduce the wastage of the resources which help Toyota to reduce the cost of the final
product and results in increased profit.
 Toyota is the one of the leading producer of the cars in UK due to proper organisational
management as it handle maintenance, operation and design of the productive system
which produce good.
 Operation management is beneficial in managing daily activities properly and planning
the future task in efficient manner. Toyota has qualified personnel to operate the business
activities which is going on a business and make contribution toward making the product
customer friendly operation management plays a crucial role in an organisation as
product are produced as per the need of the customer so that they - can be sold at rapid
rate.

 Toyota faces a good competition from ford, BMW and other car manufacturing company
a good operational management system helps the Toyota to reduce the cost of the product
which helps Toyota to have a good market share in the current market (Dumitru, Motoi
and Budica, 2015).
 As technology changes very rapidly in the market Toyota operating management helps
them to cope up with the changing technology by beforehand planning of a future
situation of the market as a result Toyota’s product Corolla hybrid and various hybrid are
one of the leading selling product of the previous year.
 Operating management includes the process of supervising which help Toyota to increase
the efficiency level of employee which help Toyota in the competitive edge in the rapidly
changing market (Parisio, Rikos and Glielmo, 2016).
 Operational management facilitates the work of employees, which increase employee
retention in Toyota.
 Operational Management eliminates the duplication of efforts due to a systematic
inherited procedure which raises work efficiency.
LO 4
P6 The factors within business environment impacting operational management and decision
making by leaders and managers
Introduction : This part covers the factors that impact the operational management and decision
making that will affect the decision making of the organisation by leaders and managers. It will
help the management to effectively handle this factors for a good growth of Toyota.
The factors impacting operational management and decision making :
Employees/ Human Resources : Employees are the assets of the Toyota. Skilled and
competent employees adds value to there process of operation management in Toyota and
balance cost to the process whereas unskilled employees may generate errors and increase the
cost of production. An efficient leader enrols an efficient process of decision making. A skilled
manger will prove more viable to contribute in decision making process (Zare and et.al., 2016).
Capital : An inadequate capital structure may hinder the operational management process
of Toyota. An adequate apportionment of funds into operations will smooth the work flows.
Availability of funds will facilitate managers to improve the decision making process.