Toyota: Management Structure, Leadership, and Operational Strategies

This report provides a comprehensive analysis of leadership and management practices within Toyota. It begins with an introduction to the company's organizational structure, highlighting its hierarchical framework and its impact on operational efficiency. The report then defines the roles of managers and leaders, differentiating between their responsibilities and characteristics, and explores the impact of their decisions in various organizational situations, such as conflict resolution and adapting to changing market conditions. The report evaluates different leadership approaches, including situational, contingency, and system leadership, assessing their strengths and weaknesses within the context of Toyota's operations. Furthermore, it examines how managers and leaders have influenced the company's performance, offering recommendations for future improvements, particularly in employee training and digital integration. Finally, the report delves into Toyota's key operational functions, defining the roles and responsibilities of managers in these areas, and evaluating the impact of external business environment factors on decision-making. The report concludes with recommendations for enhancing operational efficiencies and successfully meeting business objectives through effective management and leadership strategies.

Management and
Operations

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.Introduction to the organisation you have chosen and its management structure...............3
2.Definition and roles of both managers and leaders and differences between management and
leadership................................................................................................................................4
3.Analysis of different roles of management and leadership in application to different
organisational situations, supported by theories and concepts...............................................6
4.Evaluation of the strengths and weaknesses of different approaches to leadership and
management to draw conclusions that support theories of leadership...................................6
5.How managers and leaders have made an impact on the organisation and recommendations
for future improvements.........................................................................................................8
TASK 2............................................................................................................................................8
1.Introduction to the key operations of the chosen organisation............................................8
2.Define each of the key operational functions, identifying the roles and responsibilities of
managers in the key operational functions.............................................................................9
3.Explanation of the key operational approaches to operations management and their value9
4.An evaluation of the impact of external business environment factors that affect decision-
making by leaders and managers..........................................................................................10
5.How operational efficiencies can be improved to successfully meet business objectives
using appropriate management and leadership approaches..................................................11
6.Conclusions and supported recommendations for future improvements to be taken by the
organisation..........................................................................................................................11
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12

 INTRODUCTION
An operation can be described as the work or task which is conducted in an organisation
and it also involves various kinds of practical applications so that goals and objectives of the
company can be achieved in an effective manner. Whereas, management is all about organising
and coordinating activities which are conducted in the organisation. Therefore, it is said that, iyt
is very important for an organisation to manage their operations so that they are able to achieve
their goals and objectives (Balasubramaniam and et. al., 2016).. The organisation which will be
considered in this report is Toyota; which was found by Kiichiro Toyoda in 1937. It’s
headquarter is in Toyota city, Aichi, Japan. The topics that will be covered in this assignment are
difference in role of leader and manager, function of manager, role of leader and role of leader
and manager in operational function in an organisation. Along with this, relationship between
leadership and management in context of different theories and models will also be covered.
TASK 1
1.Introduction to the organisation you have chosen and its management structure
Toyota is an automotive company which was launched in year 1937, in Aichi, Japan. The
company offers various kinds of products in the market like auto mobiles, luxury vehicles,
commercial vehicles, engines and many others. They supply their products and services all
around the world. The various kinds of services that are offered by this company are banking,
financing and leasing. There are more than 369124 employees working for the company. There
are various kinds of divisions of Toyota Company such as Toyota, Lexus, Ranz, TRD, Scion,
Gazoo Racing and many others. The places where they supply their products and services at
worldwide marketplace are like Australia, Bangladesh, Europe, India, Indonesia, Japan and many
others. Toyota is considered as world’s leading auto-mobile company which are providing their
services as per the needs and demands of the customers and are also making their vehicles
equipped with latest technologies. The design of their products is also very attractive
(Christopher, 2016)..
The management structure which is being followed in this company is Hierarchy structure.
This is because in this structure, the work is being conducted at various levels and it also has a
shape like of pyramid and thus it helps the management in performing their operations in
effective and efficient manner. Also, in this kind of structure, the supervisors will direct their

subordinated about the work which is being done by them in the company and make sure that the
activities are being conducted in a proper manner. Along with this respective company enhance
decision making authority and power of regional heads and business unit managers.
Figure 1: Management structure
(Source:Toyota management structure, 2018)
2.Definition and roles of both managers and leaders and differences between management and
leadership
Meaning of Manager:
A manager holds a very special place inside the organisation. They are the ones who are
having responsibilities of about various kinds of important tasks that are happening inside the
company. They also act as a guide to the employees who are working inside the company. Also,
these employees have to report their work to the managers on a daily basis (Cordray and et.
al.2015). Therefore, there are various kinds of roles which are being played by a manager in
Toyota or any other organisation. Some of them are mentioned below:
Role of manager-
1. Motivate Employees – This is one of the major role which is being played by the
managers inside the company. They need tto motivate the employees so that they work in
the company with full dedication and help in achieving the desired goals.

2. Make rules – This is also one of the important role of managers. They make plans and
policies for the employees of the company and it is necessary for the employees to follow
them. This helps in conducting the operations without any restrictions.
Characteristics of manager:-
 Manager encourages the employees of the company and helps them in getting rewards and
recognitions.
 They also try to make the environment of company effective by implementing various kinds
of rules and regulations.
Meaning of Leader:
Manager is the person who guides and directs the employees of the organisation to
complete their work in most effective manner. They take the whole responsibilities of the project
and make sure that the work is completed on time (Evangelopoulos and et. al., 2016). The roles
and characteristics of leaders in Toyota is described below:
Role of leader-
 Develop Positive environment – The role of a leader is to develop a positive environment
at the workplace so that the employees always have a feeling of motivation and they
continue doing their work in an effective manner.
 Developing strategies – This is also an important role of the leader as they have to be
innovative and make various kinds of strategies through which the activities are
conducted in most effective manner.
Characteristics of leader:-
 The leader should be honest towards their work so that they fulfil their responsibility in
an effective manner.
 They should have the ability to delegate the tasks to their employees so that all the
activities are completed on time.
Difference between leadership and management:-
Management Leadership
In Toyota, the management makes sure that the
employees are conducting their work in a
proper manner or not.
In Toyota, the leadership style of leaders is to
motivate and encourage the employees to
complete their activities in effective ways.

Management of company aim on believing in
conducting activities and things appropriate.
Leadership of respective company focus on
conducting right activities.
3.Analysis of different roles of management and leadership in application to different
organisational situations, supported by theories and concepts
There are so many situations that come in the company in which the mangers and leaders have to
act differently and handle it. In Toyota as well, there are at times when leaders and managers
have to take some decisions for the betterment of the organisation. Some of them are mentioned
below:-
 Conflict Situation – This is one of the most common situations which often comes in an
organisation. The reason for a conflict can be anything like discrimination between
employees, salary related issues, religion discrimination etc. So, at this time the role of
leader is to identify the reason of conflict and then discuss it with the employees
regarding the same. They will try to solve the situation after knowing the root cause of it.
The function of manager here is making effective rules and policies so that this situation
is not arise again inside the company (Grahn, Johansson and McKelvey, 2014).
 Fast changing situation – This is a kind of situation which comes inside the company
when there is some kind of changes has happened inside the company or in the market
outside like inflation, deflation, change in trends etc. In this situation, the role of leader is
to encourage and motivate the employees to adapt that situation and tries to work at their
best possible way (Haimes, 2015). This will help the company in handling the situation in
a better manner. Whereas, the function of manager here is that they will create new
strategies and plans for the company so that they effectively handle the situation which is
present in front of them.
4.Evaluation of the strengths and weaknesses of different approaches to leadership and
management to draw conclusions that support theories of leadership
There are various kinds of leadership styles and approaches which can be applies inside the
company so as to conduct their operations in effective and efficient manner. Some of them are
mentioned below:

Situational leadership: This model is developed by Paul Hersey and Ken Blanchard. This style
of leadership is mostly adopted by managers of Toyota Company because with the help of this
leadership style, the managers can make their strategies and plans as per the situation present in
front of them (He, Li and Chai, 2014).
Advantage-
 Through this, the managers are able to connect with their staff in more proper manner and
it helps in betterment of their production activities as well.
 With this, the managers and leaders have the right to plan their strategies as per the
situation.
Disadvantage-
 It is a time taking leadership style and thus sometimes the managers face difficulties in
framing their strategies according to the situation.
Contingency leadership: In this type of leadership theory, the leader tries to match their
leadership style with the particular situation and the issues as well. Through this, they are able to
conduct their work in more effective manner. This theory is considered very effective because it
normally fits in every situation.
Advantage –
 This theory can be used in each and every situation by the leaders and managers of
Toyota.
 Because of this style, there is enhancement of group performance and working style of
employees inside the company.
Disadvantage-
 It is difficult to implement practically.
System leadership: This is a kind of leadership style in which an organisation can effectively
develop some kind of situation inside the company where the employees of the company feels
motivated and thus give their full dedication to their work (Hugos, 2018).
Advantage-
 By applying this style, the company is able to work effectively even in complex
situations.
 It motivates employees of the company and thus they work in an efficient manner.
Disadvantage-

 If manager and leader of respective company use this approach they not able to
differentiated between various systems.
5.How managers and leaders have made an impact on the organisation and recommendations for
future improvements
Both managers and leaders have a very crucial role in the every company as they conduct
various kinds of activities which helps the company in achieving their goals and objectives in an
effective manner. They also motivate, develop and push the employees of the organisation to
give their best to the organisation and achieve desired results as well (Jacobs, Chase and
Lummus, 2014). The managers are having the responsibilities make various kinds of rules and
policies for the betterment of the organisation and they need to implement it as well so that the
organisation works in a disciplinary manner. Leaders are also required to make sure that the
employees follow these kinds of policies and rules and works with motivation so that they are
able to generate good results for the company. For recommendations, it can be said that the
employees of the company needs to be well trained so that they can adopt the new development
which happens inside the organisation more effectively and also the company needs to become
more digital while doing their activities so that they can attract more and more customers for
their products.
TASK 2
1.Introduction to the key operations of the chosen organisation
It is known everywhere that Toyota is a very big brand in the automotive industry. Itt was
founded by Kiichiro Toyoda in 1937. They are providing their products and services at the
markets worldwide and are ruling those markets as well. Toyota products and services are
manufacturing various products like auto mobiles, luxury vehicles, commercial vehicles and
engines. Apart from this, they are also providing their services related to banking, finance etc.
Along with this, they are manufacturing and selling machines associated with the textiles
industry and equipments of handing machines as well (Marchington and et. al., 2016). In order to
conduct their operations in an effective manner, the company also applies six sigma model and
lean principles as well. With the help of this, they analyse the market properly and also motivate
the employees to work more effectively. It will eventually help in developing the profits of the

company in the longer run. The key operations of respective company are manufacturing vehicle
with advance technology which is in new trends.
2.Define each of the key operational functions, identifying the roles and responsibilities of
managers in the key operational functions
There are various kinds of functions which are conducted inside an organisation through
which an organisation is able to achieve its goals in a proper manner. The key functions followed
in Toyota are as follows :
 Planning – It is referred as a process in which plans are required to be prepared so as to
achieve the goals and objectives of the company. Here, the manager of Toyota needs to
evaluate the needs of the organisation and then they develop their plans accordingly.
These kinds of plans are helpful in improving the situation of the company
(Narayanaswami, Raghunath and Rosu, 2016).
 Organising - In the function, the plans which is prepared by the managers are organised
in an appropriate manner. Here, the resources are organised by the managers so that the
plan is implemented in an effective manner. It is necessary for the managers to make sure
that the resources are allocated on time so that the plans are implemented in a proper
manner.
 Controlling– This is also a very important function which is implemented by the
managers inside the organisation. In this, the role of manager is to control and evaluate
the production process and also they need to control the standard quality with actual
quality and know the changes wherever required. In Toyota, managers also follows this
operational function in order to implement their plans appropriately.
3.Explanation of the key operational approaches to operations management and their value
The key approaches in operational management are as follows:
SIX-SIGMA – It is a kind of approach which is statistical based and it also helps in
improving the organisation on continue basis (Penn and Pennix, 2017). By using this approach,
Toyota can identify the issues and problems of the organisation and thus they can make plans
and policies accordingly. Here, manager of the company needs to conduct six stages which are
define, measure, analyse, improve and control. This approach is considered very much valuable
for the company as because of it, they can identify the issues which are being circulated inside
the organisation and thus improvements can be suggested at correct time.

LEAN PRINCIPLES - This approach is being used by the companies so as to identify
the needs and demands of the customers. This approach was originally created by Toyota only in
order to eliminate the waste and inadequacy in its industrialized operations (Pundi and et. al.,
2015). Through this, the managers of company are able to make their products and services as
per the needs and demands of customers. There are 5 stages of lean principles that is specify
value, map the value stream, establish flow, implement pull and work to perfection. This
approach is very much important for the company as through this they are able to eliminate
wastes inside the organisation and helps in conducting work in an appropriate manner.
4.An evaluation of the impact of external business environment factors that affect decision-
making by leaders and managers
Decision making of a leader and manager get affected by various factors. It may be internal
or external. These factors affect a decision making as well as business operations and functions
(Punyateera and et. al., 2014). Major external factors which influence decision-making of leader
and manager at Toyota company is mentioned below:-
Sociological Factors – It can be described as the factors which are having its connection
with the society and its dimensions includes values, customs, demographics etc. so, if any kind
of change is taken place in these factors then the managers have to take the decisions as per the
situation. Through this, business will be conducted in an effective manner. This factor also
influences decision making of a manger and leader. Such as if trends get change then manager of
this company design product and services accordingly.
Economic factors – The dimensions covered in this factor are like inflations, deflations,
interest rates, unemployment rates etc. So, when there is any kind of change in the economic
condition of the country then it is the duty and responsibility of the managers and leaders to
handle the company and take decisions accordingly. This factor impacts the decision making of
leaders and managers a lot.
5.How operational efficiencies can be improved to successfully meet business objectives using
appropriate management and leadership approaches
In order to improve the effectiveness of the operations, an organisation can apply various
kinds of approaches through which they can conduct the business in an appropriate manner.
These are mentioned below:-

Behavioural Approach - This approach is based on the behaviours and capability of
workforce or staff who will carry out work and task within a work place. Like, if the managers of
the company make their strategies as per the behaviour and skill of employees then it becomes
duty of the employees to complete their work in more proper manner and help the company in
achieving their goals and objectives in a proper manner.
Situational approach – Here, manager of Toyota plan their strategies according to
situation and circumstances which help them in dealing with situation in appropriate manner.
Therefore, the managers of company frame their strategies as per the situation present inside the
company.
6.Conclusions and supported recommendations for future improvements to be taken by the
organisation
By breaking down above circumstance, it can be concluded that there are different task and
functions which are led in a company so as to accomplish objective and goals. For this,
organization utilizes different kinds of methodologies and techniques so that they work their
work in appropriate way. The functions and operations of a business get influence by different
outside variables, for example, social, technological and numerous others. Suggestions which
can be given to Toyota are that they can utilize digital technologies in their production and
distribution process. After doing this, they will be able to attract large no. of customers as well.
Alongside this production process is very simple to be applied but is very effective (Cordray and
et. al.2015E). They can likewise plan their products and services as per the necessity of
customhouses. To improve their services, they can associate with their clients’ through digital
media like Facebook, twitter, Instagram and numerous others.
CONCLUSION
From above report it can be concluded that both leaders and managers play an important
role in the organisation. With their efforts it becomes easy to take various decisions as their
contribution in the operation management is very crucial. With their efforts the productivity and
profitability can be raised. It is given in the study that how through applying different approaches
engagement of cited company deals with various situations. User can also enhance their
knowledge about what are the effects of internal factors on the total business as every enterprise
operates in a dynamic environment and need to respond to changes as and when demanded.

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