Unit 4: Management and Operations - A Comprehensive Report on Toyota

This report provides a comprehensive analysis of Toyota's management and operations. It begins with an introduction to the company's history and management structure, highlighting the shift from a centralized to a divisional structure. The report defines the roles of managers and leaders, differentiating between management and leadership, and explores various leadership theories such as contingency and system leadership. It evaluates the strengths and weaknesses of different leadership approaches, concluding with recommendations for future improvements. The second part of the report focuses on Toyota's key operational functions, including product design, supply chain management, and the roles and responsibilities of managers within these functions. It also examines the impact of external business environment factors and proposes strategies to improve operational efficiencies, ultimately offering recommendations for enhancing Toyota's overall performance.

Unit 4 – Management &
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Introduction of the organisation and its management structure...............................................1
2. Definition and roles of both managers and leaders along with differences between
management and leadership.........................................................................................................2
3. Analysis of the different roles of management and leadership in application to different
organisational situations, supported by theories and concepts....................................................3
4. Evaluation of the strengths and weaknesses of different approaches to leadership and
management to draw conclusions that support theories of leadership.........................................4
5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements.................................................................................5
TASK 2............................................................................................................................................5
1. Introduction to the key operations of the chosen organisation................................................5
2. Define key operational functions, identifying the roles and responsibilities of managers in
the key operational functions.......................................................................................................6
3. Explanation of the key operational approaches to operations management............................7
4. An evaluation of the impact of external business environment factors that affect decision-
making by leaders and managers.................................................................................................7
5. Operational efficiencies can be improved to successfully meet business objectives using
appropriate management and leadership approaches...................................................................8
6. Conclusion and supported recommendations for future improvements in organisation.........9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management and operations is the business practice which is used for building highest
efficiency level for the production of products and services within an organisation (Adebanjo,
Laosirihongthong and Samaranayake, 2016). It is a core function to manage designing,
controlling, processing as well as redesigning business operations with the purpose of achieving
set outcomes effectively and efficiently. This present report includes discussion on Toyota. The
selected entity is automotive car manufacturer which performs its operations along with services
in multinational market. First task of present report includes introduction, management structure,
roles of managers along with leaders, different approaches to leadership and management which
support theories of leadership as well as recommendations for further improvements. Second
task includes key operations, roles and responsibilities of managers in operational functions, key
operational approaches to operations management and their value, impact of external business
environment factors which affects decision-making by leaders and managers, appropriate
management and leadership approaches along with future improvements to be taken by the
organisation.
TASK 1
1. Introduction of the organisation and its management structure
Toyota is the largest automotive manufacturer founded and established by Kiichiro
Toyoda in the year 1937 and its headquarters are located at Aichi, Japan. The company provides
numerous employment opportunities to employees (Choi, Cheng and Zhao, 2016). It gained
huge market share by selling hydrogen fuel cell as well as hybrid electric vehicle and became
market leader in Japan city. Managers of such firm focuses on operational activities related to
designing products, managing performance, maintaining quality, supply chain management,
inventory management, redesigning, capacity designing and so on.
Respective organisation has successfully adopted centralised management structure
(Toyota Company Hierarchy, 2018). In such management structure, all decisions are taken by
top level management. All decisions related to assigning tasks, managing people at workplace
and many more are taken by top managers at headquarters. Due to such structure, many issues
are faced such as slower decision making, stifle creativity, limited communication within internal
managers of business. Later, in 2013, Toyota shifted its management structure from centralised
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structure to divisional management structure to face significant changes. Using such structure,
efficiency is expanded, authorities are delegated, strengthen decision making ability, allowed
specialisation, enhances efficiency for performing day to day operations in effective manner.
Thus, the company has built a competitive image and has built 8 divisions where all divisional
heads reports to headquarters of the organisation. Using such structure, the effectiveness in
maintaining strong global presence, maximising efficiency along with capacity utilization of key
resources is achieved which acts as a major contributor in its success.
2. Definition and roles of both managers and leaders along with differences between
management and leadership
Managers: Managers are the individual or experts who are responsible for administrating
as well as controlling people at work. They perform activities such as planning work, organising
people, assigning tasks, provide directing, coordinate task with other departments and controlling
deviations by taking appropriate decisions with the aim of attaining organisational goals.
Role of managers: Role of managers at Toyota is to formulate strategies and
implementing them in appropriate manner for completion of work in required time period,
ensuring compliances, promoting business operations in global environment.
Leaders: Leaders are those people who has the ability to dominant positions for
motivating as well as influencing staff behaviour to perform operations with full efficiency
(Cook and Billig, 2017). They play important role in the firm to maintain cooperative
environment and resolving issues within team members.
Role of leaders: Role of leaders at Toyota is to integrate individual goals with
organisational goals. They perform role of shaping team effectiveness by maintaining healthy
work culture, motivating people, responding towards issues for the purpose of attaining high
standard of selected organisation.
Differences between management and leadership
Basis of difference Management Leadership
Meaning Management involves set of
principles and functions for
performing tasks of planning,
organising, staffing, directing,
Leadership is a process which
involves set of skills, abilities within
an individual to influence, motivate
behaviour of employees for
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coordinating and controlling
operational activities at work place.
enhancing efficiencies for the
purpose of attaining operational
goals.
Approach Management set objectives and
prepares plan for the betterment of
enterprise. They ensure proper
execution of plans and controlling
deviations.
Leadership sets direction for
prepared plans and communicates
them to subordinates. Leaders treats
workforce fairly, respectfully and
ethically.
Role Role of management at Toyota is to
set clear vision and exercise powers
over other, react to changes and
give directions to middle level
management.
Role of leadership at Toyota is to
execute good ideas, adopting
motivational techniques, developing
people by using power and utilises
key resources optimally.
3. Analysis of the different roles of management and leadership in application to different
organisational situations, supported by theories and concepts
Leaders and managers plays different roles as well as responsibilities pertaining to
situations arises within work place (Gillen, Jacquillat and Odoni, 2016). To deal with all
situations in effective manner both plays crucial functions supported by theories and concepts.
The description of such theories along with concept are the followings:
Contingency theory: This theory is based on the interplay between management
behaviours and particular circumstances. Using such theory, leaders finds best ways to deal with
different situations. Leaders of Toyota performs operations to gain better understanding among
internal staff members to apply suitable leadership style. For example, if issues are faced related
to meeting demands of clients. In such situation, efforts of internal staff workforce are
encouraged by team leaders and managers frame vital decisions related to strategies for building
organisational supplier relationships.
System leadership theory: This theory enables leaders to use sound principles for
creating conditions for personnel’s at all level to perform work with fuller potentiality for the
purpose of attaining productivity. For instance, if Toyota has to increase its market share in
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geographical locations. In such case, managers are responsible for setting product standards for
selling them to existing as well as potential clients. Leaders plays the role of motivating team
members in order to achieve set targets.
4. Evaluation of the strengths and weaknesses of different approaches to leadership and
management to draw conclusions that support theories of leadership.
Managers along with leaders of Toyota follows different approaches in order to overcome
from threats for the purpose of enhancing operational efficiency. Approaches includes their own
strengths and weaknesses as such it is the responsibility of managers to adopt appropriate
approach which helps business to perform operations smoothly.
Contingency approach: It is the best suited management style which helps in paying
attention on leadership styles along with situations as well. Being Toyota the global brand in auto
motive sector, cannot apply single approach in all situations. Strengths and weaknesses of
contingency theory are the followings:
Strengths: Instead of focussing whole business environment, contingency approach is
adopted to keep environment flexible with the purpose of understanding relevancy of distinct
approaches as well as predicting suitable approach in relevant circumstances (Goldschmidt and
Kumar, 2016).
Weaknesses: By using such approach, it does not mean that leaders are efficient to
handle various situations effectively. Different situations require different approaches to handle
them.
System leadership approach: Using such system, sound principles are used for
interrelating various operations of business to deal with specific business problems.
Strengths: This approach helps organisations to adapt various environment as well as
external changes with the help of focusing in multiple dimensions to achieve individual along
with overall goals of selected enterprise.
Weaknesses: Nature of interdependence of multiple dimensions may not be defined
properly which delays decision making and performing operations slowly.
Conclusion: As per the study it has been evaluated that Toyota should adopt situational
approaches to select best suited approach for the organisational members. By adopting suitable
leadership style, operations in different circumstances can be performed easily by management
and its staff members. Hence, adoption of contingency approach will be favourable for top level
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management of Toyota to focus on external business environment and understand the working of
different departments as per the situations.
5. Conclusions on how managers and leaders have made an impact on the organisation and
recommendations for future improvements
Leaders and managers impacts the working of firm by playing important role in
structuring organisational activities through motivating as well as influencing behaviour of
workforce to perform operations as per the stated standards (Harrison and Lock, 2017). In
addition, appropriate leadership approach should be adopted by considering situations pertaining
in the business and external environment. Managers plays function of making effective plans for
performing operational functions, resolving problems. Leaders performs roles of influencing,
directing, motivating, guiding and so on towards the attainment of organisational targets and
objectives.
Recommendations:
 Toyota should provide training and development programs, seminars, orientation
programmes, workshops and many more to its employees on timely basis for enhancing
skills along with knowledge to perform activities in changing circumstances.
 Toyota should launch new models by understanding market requirements and should
bring innovations to build a competitive image in the market against rivals.
 Toyota should disclose leadership and management approaches, situations and
operational strategies with its workforce. It will benefit to engage internal members and
keep them updated with operations and management.
TASK 2
1. Introduction to the key operations of the chosen organisation.
Toyota in the international market has built an image for providing quality products. It is
among the fastest growing organisations which has manufactured products more than 10 million
vehicles since 2012. Operational functions help Toyota mangers to perform tasks in appropriate
manner. Key operations of selected organisations are the followings:
Designing of products or services: Toyota designs unique and innovative products or
services in auto mobile industry with the help of technological advancements along with quality.
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The company invests huge amount on research and development activities for ensuring advanced
as well as updated features in their products by considering customers demand and requirements.
Supply chain management: Such operations helps in flow of finished products from
manufacturer to end customer. Toyota applies total production system and lean manufacturing to
manage supply chains to deliver products to clients on appropriate time period. The business
uses automation systems for real time adjustments in multiple activities of supply chain in order
to minimize bull whip effect in selected supply chain (Helmreich, Klinect and Wilhelm, 2017).
2. Define key operational functions, identifying the roles and responsibilities of managers in the
key operational functions
There are many key operations, activities and tasks are performed within selected
business in effective ways for successful achieving desired results. Toyota managers plays
essential functions, roles as well as responsibilities in order to conduct operational functions.
Some of the operational functions performed by respective firm along with roles, responsibilities
of managers are described below:
Improving products and services: It is an operational function which is used for designing as
well as improving organisational products or services according to the demands and
requirements of potential customers. It helps Toyota to increase the satisfaction level of
customers by fulfilling their demands.
Manager roles and responsibilities: Managers of selected business plays role of planning the
objectives and designing equipment as well as manufacturing process (Ravindran, 2016). They
are responsible for controlling activities, evaluating results, providing directions to perform
procedures, managing team members in order to improve efficiency to produced improved
products or services.
Control and distribution system: It is an another operational function which caters and
distribute company products to potential clients as per their demands. It is used in Toyota to
attract the target market and reach them using effectual tactics. The managers distribute vehicles
with the help of multiple suppliers to satisfy customers and build image in their eyes.
Manager roles and responsibilities: It is the responsibility of manager to control unwanted
activities and to properly control production process. They perform the role of following and
tracking distribution system effectively. They are responsible to deliver appropriate product on
time to various customers.
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3. Explanation of the key operational approaches to operations management
Operational approaches are the techniques adopted by firms to reach their objectives.
These approaches brings management knowledge in relation to management functions and
practices. Various types of approaches are adopted by managers to conduct operations in
effective manner. Key operational approaches used by Toyota managers for preforming their
activities are as follows:
Continuous improvement approach: It is an ongoing approach to improve products,
services along with procedures of entire business (Pheng and Meng, 2018). To manage changes
it is very important to adopt such approach. It helps in improving efficiency as well as
performance on continuous basis. Managers of Toyota applies this approach to continuously
motivate employees to work in team and generating new ideas for performing tasks. They also
provides training programmes to train workforce for continuous improvements.
Six sigma approach: Such approach is an continuous improvement model used for
eliminating variabilities as well as improving predictability of organisational managers. It is
adopted by Toyota managers to achieve predictable and stable results by clearly defining
measurable procedures to attain quality improvements. The approach involves initialising,
measuring, analysing, improving along with controlling situations at work place. At initialising
stage, plans are prepared and executive is done. At measuring step, actual results measured with
standards set. At analysis phase, deviations are analysed and appropriate actions are taken to
overcome from those deviations. At improving step, plan along with procedures are redesigned
to get improved products or services. Controlling phase includes preparation of monitoring plan
for measuring success to get desired results. Thus, it is very important responsibility of Toyota
managers to take appropriate decisions and adopt proper techniques to resolve issues as well as
improve performance functions effectively.
4. An evaluation of the impact of external business environment factors that affect decision-
making by leaders and managers
External business environment involves outside factors which impacts the operations of
any firm. With the help of PEST analysis managers and leaders of Toyota evaluates factors
which impacts of external business environment which affects decision making and growth of
selected entity. External business environment factors that affect decision-making by leaders and
managers are described below:
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Political factors: Toyota is affected by various political factors such as political
conditions, government impacts on automotive industry, trade agreements and many more (Ren,
and Huang, 2018). The managers while taking decisions have to carefully consider political
interference, rules and regulations in order to achieve growth.
Economic factors: Economic factors also impacts the working of leaders and managers
at great extent. Factors related to interest rates, taxation, labour costs, inflation rates impacts on
decision making but at the same time also provide various opportunities to grow the business in
international market.
Social factors: Decision making of Toyota leaders and managers is highly impacted by
additional ranges of factors such as population age, family history, education, social customs,
governance, economic status. For instance, increasing concern of society towards controlling
environmental pollution has lead to Toyota on focusing towards development of electric and
hybrid cars. Managers and leaders have to consider social factors at the time of taking critical
decisions for the betterment of business.
Technological factors: Technological investments are done by managers of Toyota in
order to provide innovative as well as advanced cars to customers. The company is known for
replacement mechanisms, innovative ideas. By investing in factor related to technological
advancements, improvement and automation chances of uncertainty as well as risky
circumstances have increased and management while taking innovative decisions considers all
these factors to achieve desired results.
5. Operational efficiencies can be improved to successfully meet business objectives using
appropriate management and leadership approaches
Operation management performs numerous roles in order to improve organisational
productivity, designing systems, quality management, scheduling, managing inventory for
manufacturing products and services (Slack and Brandon-Jones, 2018). To get successful results
controlling, redesigning and transforming production process for the purpose of creating
innovative designs is very important. To develop as well as updating business operations
different management and leadership approaches are followed to perform operational functions
smoothly and effectively. Managers and leaders of Toyota applies following theories :
Situational theory of leadership: using this approach, managers along with leaders set
objectives and strategies considering current as well as future conditions, situations of business.
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Selected entity managers are capable enough to set plans and accordingly frame strategies to
resolve pertaining issues. Leaders carefully understands the plans and provide guidance to
implement the strategies to the workforce by motivating or influencing them to achieve standard
results. Managers systematically records issues and selected actions to use them in future
relevant situations. Leaders motivates employees to give full potentiality for achieving
organisational objectives. They can improve operational efficiencies by setting plans and
strategies and motivating workforce to perform activities for successfully meeting business
objectives.
Scientific theory of management: Such theory analyses and synthesizes operational
activities with the objective of enhancing operational efficiencies, labour productivity and so on.
Using this theory of management, leaders as well as managers standardise methods of production
and operations to improve performances. It helps in distinguishing working of one company with
another business unit in the same industry. Toyota managers and leaders applies various
techniques to improve working conditions by analysing other factors related to suppliers as well
as rivals.
6. Conclusion and supported recommendations for future improvements in organisation
Toyota is expanding its product line in multinational market and to sustain its competitive
position firm has to modify its features of cars for attracting targeted consumers (Wensveen,
2018). Managers and leaders plays important roles to develop the brand image.
Recommendations:
 The company can modify its products and services according to the customer needs and
requirements for attracting potential customers and grow in competitive market.
 Managers should frame plans as well as strategies and leaders should guide employees to
manage the changing situations.
 Toyota should develop technological advancement plans to expand its market share by
launching cell vehicles, producing low cost products and adopt technological
advancement products for the purpose of gaining economies of scale.
 They can produce small delivery vehicles using prototype and adapting battery for the
purpose of distributing its commercial products and control systems.
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Thus, all recommendations assist Toyota to enhance its operational efficiencies to satisfy clients
and minimising cost to produce eco friendly car products to accomplish its objective of
sustaining in competitive environment.
CONCLUSION
As per the above discussion it can be concluded that managers and leaders both plays
important function, roles to achieve organisational objectives in efficient manner. The first task
includes introduction, management structure, roles of managers along with leaders, different
approaches to leadership and management such as contingency theory and system leadership
theory along with recommendations for further improvements. Second task includes key
operations, roles and responsibilities of managers in operational functions, key operational
approaches of Continuous improvement approach as well as Six sigma approach, impact of
external business environment factors which affects decision-making by leaders and managers.
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