Toyota's Leadership and Management: Operations and Strategies Report

This report provides a comprehensive analysis of Toyota Motor Corporation's leadership and management practices. It begins with an introduction to the company's organizational structure, detailing its global, geographic, and product-based divisions. The report then differentiates between the roles of managers and leaders, examining their responsibilities and influence within the organization, including entrepreneurial, figurehead, and vision-setting roles. It explores how managers and leaders adapt to rapid and slow environmental changes, highlighting the application of autocratic and democratic leadership styles. Furthermore, the report analyzes the strengths and weaknesses of classic and contingency leadership approaches, assessing their suitability for Toyota's operational needs. Key operational functions are defined, with the identification of roles and responsibilities, operational approaches, and the impact of external business environment factors. Finally, the report discusses strategies for improving operational efficiencies to meet business objectives and offers conclusions and recommendations based on the analysis.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
1.Introduction to the organisation and its management structure...............................................3
2.Definition and roles of both managers and leaders and difference between management and
leadership....................................................................................................................................4
3. Roles of management and leadership in application to different organisational situations,...6
4.Strengths and weaknesses of different approaches to leadership and management ...............6
5.Conclusions on how managers and leaders have made an impact on the organisation and
recommendations........................................................................................................................7
Task 2...............................................................................................................................................8
1. key operations of the chosen organisation..............................................................................8
2.Defining key operational functions along with identification of roles and responsibilities of
managers in them........................................................................................................................8
3.key operational approaches to operations management and their value. ................................9
4. Impact of external business environment factors on decision of manager and leaders........10
5.How operational efficiencies can be improved to successfully meet business objectives.....11
6.Conclusions and recommendations. .....................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation management is the area of administration which is concerned with the
production processes. It comprises with designing and controlling the entire process and creating
new design for organisation's operations that focusses on producing goods and services as well.
Organisation undertaken under this report is Toyota Motor Corporation which is an multinational
automotive situated in Japan. This report will differentiate between the role of leaders and
function of manager by applying a range of theories. It will also highlight how managers and
leaders will improve their efficiency which is done in order to achieve overall business objective.
The later part of the report deals with various environmental factors that have impacted the
organisation's performance (Åström and et. al., 2017).
TASK1
1.Introduction to the organisation and its management structure
Under this report the business undertaken is Toyota Motor Corporation which is an
multinational automotive and it is situated in Japan. It employees around 364,445 number of
employees across globe. They deal in different automotive segments such as assembling and
selling cars, trucks and other vehicle parts and accessories. Apart from this, the financial services
segment involves offering facilities such as lease financing to dealers and customers.
Management structure of an business represents how organisation manges it's management
hierarchy. It involves arranging line of authority and different distribution of different rights and
duties. The Toyota management structure is developed on its business operations which are
being carried by them in different parts of the globe. The business follows the hierarchical
structure which assist them in accomplishing their objectives. The business structure of Toyota
can be studied below-

(Toyota Company Hierarchy 2018).
 Global hierarchy- As the business headquarter is situated in Japan. They are responsible
for making final decisions on different matters and on major issues as well. Japan office
can have a final verdict in case if the individual units are not communicating in an
effective manner with each other. In the present business scenario which is highly
dynamic in nature, Toyota's structure has emphasised on maximising the power of
decision making of regional and business unit heads (Chan and et. al., 2018).
 Geographic division- The business have eight divisions across the globe situated in
Latin America, Caribbean, Asia, Oceania, China, Europe, Middle east, Japan, North
America and East Asia. All of the divisions or regional heads are required to report to
headquarter of the company which helps the business to create products and services
efficiently and effective in business operations.
 Product- Based Division- The business have four different division such as Lexus
international, Toyota No.1 which operates in North America, Europe and Japan, Toyota
no. 2 it operates in all the other regions and unit centre. The Unit centre handles operation
related with transmission engine and other related processes.
2.Definition and roles of both managers and leaders and difference between management and
leadership.
Leader: They are the individuals who impacts group of people for attaining organisational
goals. They are one who have superior or dominant position within specific field and they have
the power to influence decisions of others.
Illustration 1: Toyota Company Hierarchy 2018.

1. Manager: They are individuals who are responsible for certain tasks and subsets
within an organisation. They are the person to whom employees needs to answer.
Both managers and leaders plays an crucial role in the overall functioning of the business.
Managers are in charge of carrying different activities in the organisation. Managers focus on
controlling and administrating a group of members. On the other hand leaders are responsible for
leading and commanding a group of individuals in the business towards achieving the already set
goal and objective of organisation. Both are responsible for handling certain roles in the
business which can be discussed below-
Role of manager
Entrepreneurial role: In this type of role, manager is responsible to create and control
changes within the businesses. They tent to solve problems of the employees and foster
innovative ideas that are focussed on fulfilment of overall organisational goals.
Figurehead role: It includes conducting different ceremonies in the business such as
conducting welcoming session of the guest and signing legal documents. As the managers are
representing the entire company in front of the outsiders and also in front of official guest they
are responsible to create a strong image of the business in front of them.
Role of leader : Role of leaders can be discussed below-
Setting a link between organisational and individual goals- In order to integrate the
goals of employee and organisation leader will use their traits. They will try to coordinate the
efforts of employees and organisation in same direction.
Creating vision- It comprises of defining the goals and also defining the path by which
they are going to achieve the already defined goals and objectives.
Difference between leader and manager-
BASIS LEADER MANAGER
Meaning. They are individuals who
create strong impact on their
followers.
It involves setting and
coordinating different activities
in an efficient and effective
manner.
Emphasis. Leaders focus on inspiring They tent to focus on

individuals. managing different activities of
individuals.
Perspective. Leadership requires good
foresight.
Management comparatively
have short range of perspective

3. Roles of management and leadership in application to different organisational situations,
The present business environment is highly dynamic which needs regular alternations and
modification. In order to deals with such situation leaders and manager have to perform certain
roles that can be expressed below-
Rapid changes: In the economy where the environment is highly dynamic and the
government stability is also not there, then the business will require to make fast and rapid
change in the organisation in order to effectively attain it's goals and objectives. In theses
contingent situations, the leader will be following autocratic leadership style which involves
leaders taking the decisions on their own without taking suggestions or advices from the sub
ordinates. As the changes in the environment is taking place rapidly it leaves the business with a
very little time to react and requires quick decision. In such contingent situations, manager will
be taking responsibility of altering and modifying the policies and plans of the organisation so
that they can handle the situations effectively and adopt the changes in the business. For
instance, if there is modification in trade policies than it is the duty of mangers to identify theses
and to provide adequate training to the workforce so that they can tackle these changes and the
leaders will be motivating individual the staff members to work in according with them (Reim,
Parida and Sjödin, 2016).
Slow changes: When the environment and government of the country is stable then the
Toyota will adopt changes after analysing the business environment. In this environment the
leader will adopt democratic leadership styles which takes the view of co-worker into
consideration while taking decision. When the economy is in stable situation managers will use
democratic leadership style which will help to take the suggestion of their employees into
consideration. It will help them to gain innovative ideas and they will assists them to take better
decisions in the business. If the economy is table the business will be able to analyse the market
thoroughly and will be able to produce new product in order to gain more attention of customers.
At the same time, manager will also do thorough research regarding the needs and requirements
of the customer and then develop the new plans and program by taking them in to consideration.
Further more, the manager will closely work to analyse that the established mission and vision is
clearly clarified to the employees and they are working in accordance with it.
There are various problems that can be face through respectrive firm while opearting its business
at market area. That are mentioned below:

Conflict management: This is the general issues that can be faced through whole kinds of firm.
This type of situation arises within respective company due to different conception and ideas.
There may be another reasons which leads disputes into organisation which impact attainment of
objective. Herein, leaders need to adapt situational leadership theory for resolving problems. It
concentrates upon root cause of the problems and provide effective solution by analysing the
situations properly.
Lack of resources: TOYOTA manager should examine the requirements an demands of
marketplace and consequently manufacturing should be performed. Without needs, in more
products are produced then firm have to face resource issues. Hence, for overcoming with such
circumstances, they required to used contingency theory so that they can understand the
upcoming assumption for effective results.
4.Strengths and weaknesses of different approaches to leadership and management
In order to facilitates smooth functioning the business uses different approaches to
leadership and management that can be elaborated below-
Classic Approach of management- This approach focusses on managing in classical
methods of management. It is the oldest from of school and it originated in 90's. It comprises of
increasing the effectiveness of both business and employees which is based on management
practices. Under this the importance is given to economical and physical needs of employees and
it has not given importance to social and need for job satisfaction. It involves administrative,
bureaucratic and scientific management. The strength and weakness of the approach can be
explained in the below points-
STRENGTH WEAKNESSES
 It is an Hierarchical structure which
divides that structure in three different
management level.
 By dividing the task it facilitates ease.
Which will enhance the efficiency of
Toyota organisation.
 It involves motivating employees
through monetary incentives.
 The structure of the theory is tough and
rigid.
 In order to achieve higher level of
productivity and efficiency. It involves
creativity expenses and as the business
is providing due importance to social
needs they will not be able to influence
people on larger extent.

Therefore, by evaluating the classical management approach it has been summarised that
in present business scenario, the concept will not work effectively in the organisation because it
focuses only on financial needs of the employees. But employees also have emotions and
sentiments, they also want social respect and values which are not undertaken by this approach
and organisational goals cannot be accomplished effectively and efficiently in this.
Contingency leadership approach- These approach believes that the effectiveness of
leadership can be increased by applying leaders behaviour into different situations which
emphasis on changing the management style as per the needs of different situation. Different
strength and weakness of the approach can be elaborated below (Bott and Luna, Seven Networks
Inc, 2017).-
STRENGTH WEAKNESSES
 This will help the manager of Toyota to
actively handle different situation by
adopting different styles.
 It will enhance the flexibility level
which will help to improve the
efficiency of business.
 It is difficult to act as per different
situation.
 This approach is reactive not proactive.
It is difficult as the situation tent to
differ from time to time.
Therefore, Contingency leadership approach is very effective and suitable for the
company because it enhances flexibility and leader prepares the employees in advance only so
that they do not resist to accept changes. This type of leadership style is also advantageous for
the company because business environment is very dynamic and leaders have the efficiency to
cope up with the changing atmosphere.
Situational leadership theory
This style of leadership suggest that leadership style all depends on present situation and
which type of leadership and strategies to use rely on task. Situational theory of leadership
works on assumption that most effective style of leadership changes from situation to situation.

This theory concentrate upon impact of situation that arises in company. Through this style,
respective firm leaders can mange the situation that raise in enterprise for good performance.
Strengths Weaknesses
This is easy to learn and intuitively sensible This has only few related research studies
conducted to justify assumption.
It is frequently used for training in organization It is difficult in matching leadership style with
work competency
It provide flexibility to leaders It fails to evaluate demographic characteristics
influencing the leader.
Systematic leadership
Systematic approach of leadership consider manager first and foremost as a part of
complex system. It begins with clear aim that organisation as a system to enable appropriate
leadership.
Strengths Weaknesses
This leadership style deals with complexity It does not specify tools and techniques for
practising.
It takes holistic view It is quite difficult to apply in practical
problems.
It properly utilises feedback. This may not be applicable for smaller
organisation
From the above theories situational leadership style is better for the respective company
as this is helpful to deal with various situation and identify effectual solution.
Situational leadership has been adopted by Toyota Motor Corporation, the reason behind
this is that style of leadership varies with respect to situation prevailing within organisation. This
denotes that the working structure is adaptable to current working conditions. An example can
be taken to understand this concept like, a conflict has occurred within Toyota Motor

Corporation then depending upon the intensity of conflict management and leader will take a
decision.
5.Conclusions on how managers and leaders have made an impact on the organisation and
recommendations.
Manager and leader play an key role in the Toyota Corporation. They are responsible for
playing different roles in the organisation such as manager plays the role as figurehead and
entrepreneurial. On the other hand the leaders are responsible for integrating the goals of
individuals and organisation in a way that the goals and objective of the organisation can be
achieved. Business used different approaches in order to attract and motivate individuals in the
organisation and manager and leaders assist the business in their effective implementation in the
organisation. In order to increase the efficiency in the work, operations managers are required to
focus on increasing the communication system. So that the information flow can be maintained
without any error. They also need to focus on increasing the employee engagement so that their
suggestion and ideas can be taken in consideration which will help the business to take better
decision in future (Khan, and Brissenden, Altera Corp, 2017)
Task 2
1. key operations of the chosen organisation.
Toyota is automotive organisation which is operating in different parts of the globe. It
offers their product and services to customer all across the globe. The key operations of the
business involves activities such as supply chain management, process and capacity, Quality
management, job design, inventory management and designing good and services. Managers are
responsible to take different action in order to ensure all theses operations facilitates in the
organisation in an efficient and effective manner.
2.Defining key operational functions along with identification of roles and responsibilities of
managers in them.
The Toyota corporation have different operation's that take place in the business on daily
basis and managers are obligated to perform their role in the same. Different operational
functions of the business can be expressed below-
 Designing of goods and services : As Toyota allows the use of technology while
developing different product and services. Managers are responsible to identify the

market trend in technology that are being used by their competitors which can enable
them in their business processes in order to produce goods and services which comprises
of latest technology.
 Inventory Management: As the organisation is involves in producing cars and other
vehicles and for producing this Toyota need to ensure that they are equipped with
adequate amount of resources such as raw material. It is the responsibility of management
team to guarantee that business have the adequate amount of resource to continue
production processes without any difficulty (Leeuwenburgh and et. al., 2014). In this
manager will closely work to identify that operations are going as per the plans and keeps
regular check so that if any deviation arises in any area like technical obsolete or low
skilled labour then manager will take quick decision on repairment of equipment and
training to the employees.
 Supply chain management- The organisation uses automatic systems in order to
establish real time adjustment in the supply chain. The manager needs to take decision
after analysing the current situation and their actions should be focusses on enabling a
cost effective methods in order to ensure the smooth flow of production.
 Scheduling- In order to ensure that all the different task in the business is being handled
on a appropriate time. The business prepare schedule such as resource scheduling which
is done in order to maintain the operating cost of the business. Manager needs to pay
attention while scheduling different task so that they can be tackled in given time period
and also to eliminate confusion about different job responsibility.
 Job design and human resource: The organisation focuses on respecting every
individuals associated with the same. It is integrated in the business human resource
programme and policies as well. The manager ensure that adequate amount of human
resource is available to the organisation and also ensure tat the current workforce are
treated in fair manner which involves providing solution to their issues on timely basis. It
will them them to work more efficiently in the business.
 Quality Management: To ensure that quality is being maintained in different processes
of the business, so Toyota Corporation will use production system of the organisation. It
is the duty of manager to ensure that quality is being ensured in different department such
a production department because production department is responsible fro producing and