Toyota's Leadership and Management Strategies: An In-depth Report

This report provides a detailed analysis of Toyota's leadership and management practices. It begins with an introduction to operations management and an overview of Toyota as a global automotive company. The report then delves into Toyota's organizational structure, highlighting its global hierarchy, geographic decisions, and commodity-based decisions. It explores the roles and characteristics of leaders and managers, differentiating between their responsibilities and qualities. The report further examines situational, system, and contingency leadership approaches, discussing their strengths and weaknesses and their impact on decision-making and planning within Toyota. It also covers staff turnover, conflict resolution, and the importance of timely service delivery. The report includes a situational analysis and an analysis of the contingency theory, including strengths and weaknesses. Overall, the report offers insights into how Toyota's leadership and management strategies contribute to its operational success.

Management and
operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1............................................................................................................................................3
M1...........................................................................................................................................5
TASK 2............................................................................................................................................6
P2............................................................................................................................................6
P3............................................................................................................................................7
M2 ..........................................................................................................................................8
D1...........................................................................................................................................9
TASK 3..........................................................................................................................................10
P4..........................................................................................................................................10
P5..........................................................................................................................................11
M3.........................................................................................................................................13
TASK 4..........................................................................................................................................13
P6..........................................................................................................................................13
M4.........................................................................................................................................15
D2.........................................................................................................................................15
CONCLUSION..............................................................................................................................16
........................................................................................................................................................17

INTRODUCTION
Operation management defines as a method which is concern for designing, creating and
make direction processes to makes necessary improvements for attaining profits. It is concerned
for managing inputs through transformation processes to deliver inputs (services and products).
Toyota motors is international business firm in Japan. It's HQ is in Aichin at Japan. It provides
auto mobiles, commercial, luxury vehicles and engines. This report includes role and
characteristics of leader and manager in different situational contexts (Slack and Brandon-Jones,
2018). Apart from this, it also includes situational, system leadership and contingency approach.
Approaches of operation management, their importance and impact on operational management
has also been mentioned in the report.
TASK 1
P1
Toyota is a Japanese organisation which is largest company by revenue and market
capitalization. It make sales in motor hybrid vehicles which boost aggregate market development
in motor hybrid vehicles across the world. It has employed its organisational structure for
supporting strategic directions and business goals (Galindo and Batta, 2013).
Management structure of Toyota-
It's management structure is based on various operations throughout the worldwide. The
Toyota firm is to keep a powerful existence that makes some utility to its organization structure
which will maximise efficiency and increase capacity for utilization. Features of Toyota
organization structure are as follows-
Toyota had a strong centred worldwide organization which make powerful structure. Its
H.Q is in Japan to develop various determination policies that help individuals to communicate
with other companies. It has many characteristics which are as follows-
 Global hierarchy: In this hierarchy various international companies make single union is
called global hierarchy, Toyota make different organisation needs in which it will gain
decision making ability of territorial and enterprise portion heads that help employees to
expand their business all over the world (Hillier and Price, 2013).
 Geographic decisions: It is a process which make different environmental and societal
issues to interpret earth physical and processes is called geographic decisions. Toyota

make various organizational structure which have eight territorial divisions all over the
nation. This help to analyse their business to expand in geographic areas.
 Commodity based decisions: Toyota help to make various decisions on the basis of
products and help to compensate all problems and procedures in an organisation
Leader
Leader is a individual which commands and leads a group or organisation. Leader
influences group of people for achieving a specific goal (Crevier and et.al ,2012).
Role of Leader:
1. Leader creates a clear vision for its followers. Within Toyota, leader is responsible for
influencing followers or employees so that they can understand and accept future state of
organisation.
2. Toyota leaders motivates its employees and try to find out wants and requirements of
employees and appreciate them when they perform out of box.
Characteristics of leader:
1. Leaders of Toyota is honest in which they will establish a strong relationship with their
peers.
2. They have an ability to inspire others in which Toyota leaders have a vision to motivate
their subordinates by doing good work.
Manager
Manager is a individual who manages all organization activities and on the basis of it
make various planning. Within Toyota, managers can control different departments and give
guidance to people who work under them.
Role of a Manager:
1. Manager of Toyota performs Interpersonal role which includes figurehead act as leader
(provides direction to subordinates), acts as liaison.
2. Informational role is performed by manager of Toyota. They collect information from
other organisations .(Benzarti and Sahin' 2013).
Characteristics of managers:
1. Managers of Toyota has strong communication skills by which they can communicate
with employees

2. Managers of Toyota should be confident in abilities, skills, experience and in decisions so
that they have an ability to perform their duties.
Difference between leaders and mangers-
Basis Leaders Mangers
Meaning A leader is a person who
influences his followers to
achieve a specified goal in an
organisation.
A manager is a person who can
plan, organize, coordinate and
control all activities of
organisation
Characteristics Leader has qualities like
motivator, morale developer
and influencer.
Manager has qualities like time
management, delegating
authority, managing activities
and many more.
Difference between management and leadership
Management Leadership
 It is a process in which organisation
need to manage and coordinate things
in an effective way.
 It create scheme, plan of action and
methods to trust operation smoothly.
 It is an ability of an individual to
determiner, cause and alter others to
change in effective and success of an
organisation.
 It will look on problems and invent new
and imaginative solutions on it.
M1
Role of a leader- In any organisation a leader have a clear vision which can set all the
objectives for attaining the common goals or objectives. While applying situational leadership
the leaders of Toyota establish a perfect environment so that all the employees can work
properly. They have to set the target by which all the employees have to do the task in proper
time.
 They have to set the clear vision and mission for the organisation

 Leaders have a good communication skills while assigning or preparing the task for the
employees
Function of manager- The main function of all the managers of Toyota develop a
perfect work workforce planning so that they plan and mobilise various resources. Managers of
Toyota apply classical theory in which they have to satisfy all the physical ans social needs of
the employees in order to design a proper strategic plan. Managers have to certain objective while assigning the task to all the employees-
employees They have to perform all the duties specifically in making the organisation goals and
objectives.
TASK 2
P2
In any organisation role of leaders and managers is very important to make substantial
growth. Leaders and managers have different role and function in situation of organisation.
Staff turnover- It is a process in which number of worker who leave an organization and
will be arranged by new worker. This will help employees to make different profit margins in
order to organise all activities of firm. (Heaslip, 2013).
Resolution of conflicts- Within organisation conflicts can arise at any moment due to
miscommunication, beliefs, working environment, cultural difference and many more. Leader
and manager of Toyota have different role and functions to perform in this situation Management
of Toyota can set targets for each employee as per their designation, skills they acquire and their
responsibilities.
Planning- It helps to plan various resources in an organisation in which leaders and
managers will help Toyota to accomplish these objectives via proper planning. Manager and
leader needs to follow their vision so that success can be derived. When Toyota need plan to
launch a new product so leaders provide ideas and suggestions and on the other hand, managers
deliver to their subordinates and assign work (McArthur, 2015).
Timely delivery services- Leader and manager work in coordination to ensure effective
working of organisation. Role of leader within Toyota is to motivate employees so that
requirements of customers can be fulfilled. In this, trait theory of leadership help in measure

personality as well as performance of their employees. For this, leaders and managers easily
analyse their staff members abilities, interest and personality as per this they are distribute work
among them. They are divide skilled and qualified employees and give them rank according to
their performance level. In this, mangers are assign work to those staff member who are
complete task in given time period on the basis of capabilities.
P3
Situational leadership-This theory has been formulated and make a deliberate study by
Kenneth Blanchard and Paul heresy. It refers to when managers and leaders of Toyota essentially
modify their styles that suited for all followers in organization.
Strengths: -
 It easy to understand, practical and puts emphasis on leader’s flexibility. It creates a comfortable environment for workers in which workers perform comfortable
job duties.
Weaknesses-
1. It make an impact on long needs as compare to short needs in which situational managers
can fall into trap where they evaluate or respond to an immediate circumstance all the
time.
2. It can be ineffective in task oriented environments in which managers find themselves in
a position where task must be completed in specific way.
System leadership- It is a term that leaders will work on different levels to make profit
margins for an structure. This enables an employees to work on their own they have to make
plans with different levels of employees in organisation.
Strengths-
 Leaders can provide different roles and responsibilities to their employees which help in
increasing productivity in Toyota. It focuses on multiple dimensions of management that help managers and leaders to make
various decisions (Bichou and et.al, 2013).
Weaknesses-
1. It do not make contingencies or variety of styles for various operations in Toyota.
2. It may not be applicable for smaller organisations to make various laws and regulations
in which mangers and leaders find various decisions.

Contingency theory- It is a theory that is based on management effectiveness that is
contingent or dependent that based upon on interplay between different applications of
management.
Strengths-
1. Flexibility in structure of task. Different structural levels are required within different
types of task.
2. Leaders of Toyota considers all possible factors which can affect specific situation.
Weaknesses-
1. There is no definite solution to problem and apart from this it is costly and needs lot of
time.
2. All factors cannot be considered to reach to a definite conclusion due to lack of ability,
money or time and analysis of complete information is time consuming
These leadership theory has major influence upon such factors as -
Decision making – Decision making is a process which is used to manage different
components and make various decisions on commercial enterprise state. In Toyota leaders and
manager play an important role within an organisation because they are responsible for all
business operations and functions. They are develop effective decision which help them in
gaining required profitability and income.
Planning – It is a process which is use to make different planning to achieve a desired
goal and make different results of Toyota. If company manager plan in advance so they can
easily forecast future issues and requirement of resources. They can able to plan strategies and
policies according to the situations of an organisation (Radnor and et. al , 2015).
M2
Situational analysis- This is a theory in which leaders make different styles or the
behaviour of the employees so that they can attain the proper objectives.
Strengths-
 The leaders and managers of Toyota do the task in proper time
 In Toyota leaders have to make a good environment so that employees can able to make
the decisions
Weaknesses-
 The employees of Toyota not able to make long term needs for attaining the objectives

 They do not have the clear work force planning
Contingency theory- It is a theory that explains the management effectiveness of all the
employees.
Contingency - The theory had made the focuses on the task which has given to all the
leaders of Toyota. The leaders have to assigned the task to all the employees so that they can do
that on the proper time. This help to make different strategic decisions in which all the leaders
have to give the punishments or the rewards according to the working criteria of the employees
in the organisation.
Strengths-
 All the employees of Toyota do the task in a flexible manner
 They gave the rewards or the compensation when the employees do the extra work in the
organisation
Weaknesses-
 The task which is assigned to all the managers have to bears some cost which can occur
some loss
 Their is indefinite planning and the leaders of Toyota do not satisfy all the needs of the
employees.
D1
Situational leadership- In this theory all the managers and leaders have to set the clear
vision for organising various policies and procedures. In Toyota the employees have to do the
best task which is assigned to them so that they can receive the positive feedback from the
managers. They plan, manipulate and mobilise various resources so that managers and leaders
can make effective decisions.
System leadership- In this theory all the managers and leaders have to adopt different
styles or the behaviour that help them to achieve the common goals and objectives. While doing
any work in the organisation, all the employees have to make a proper work force plan so that
they do the task in the proper time. This help an organisation to establish different planning and
mobilise various resources.

TASK 3
P4
Key operational method is a process where goal of management is to maximise
efficiency while producing goods and services that satisfy full needs of employees in Toyota.
Lean production:
Lean production manufacturing is an methodology that focus on improve quality of
production of goods and services by minimizing wastage at highest level simultaneously increase
production of goods and services. The main role of manager in lean production is to ensure about
product quality, reliability and efficiency in better manner. They required to work on reducing
wastage of material while producing different type of goods (Rose and et. al, 2013).
Total quality management:
It is the duty of manager to work as a facilitator at workplace and it is responsibility of
manager to give education to employees while adopt TQM in organisation. They have
responsible for select right individuals so that they can give their major contribution as line
managers and can take charge of project in case of Toyota. In case of Toyota Leaders play
crucial role by taking sponsorship and set the culture in which employee morale and their
contribution should be foster. For maintaining TQM, the main role of manager is to upgrade and
improve the processes and system which ensure to develop high quality based goods.
Six sigma:
It is a disciplined, data driven approach which used to eliminate various methods from
manufacturing to transactional and from product to services. This will help HR managers who is
responsible in Toyota to implement various strategies that focus on process improvement and
variations may occurred due to application of Six sigma improvement projects. The manager
play an important role in building successful strategies and policies which assist an organisation
in gaining higher profitability and income.
Toyota help make analyses various programs in order to make proper training and
development, feedback and analyse some competitors. Time efficiency of leaders and managers
is very important to analyse some opportunities and threats in an organisation (Minas and et.al ,
2013). This will make some recommendations in order Toyota can make planning, executing and
control all ways.There are following improvements that make Toyota to be successful-

 Transmit clear goals and make proper evaluate of employees-Employees in Toyota
share different ideas and views which make them to work in a proper way, deliver
excepted results and make new innovations to an organization. Toyota target particular
employees who make new vision and make proper evaluation. Share information and numbers- It will help employees to inform to all leaders about
problems and variations in an economy. Toyota leaders will make a strong approach in
order to share ideas and views in an organisation that improves transparency between
employee and employer.(Radnor and et.al , 2015). Encourage open communication- Toyota can examine skilfulness which encourage all
employees of Toyota to express their ideas and views to make long term objectives in an
organization. Leaders of Toyota make employees to communicate in good way, be an
open minded person and make different plans and objectives. Culture-Leaders and managers will build different culture in order to make some fruitful
behaviour of all employees which will help in decision making and make better training
and development.
P5.
Operation management is an important factor to manage proceedings of firm and helps in
design and operation of processes in business to produce goods and services. There are some
important approaches that helps in enhance level of production and increase their efficiency.
Planning-
It is a process which develop various needs that used to accomplish goal in an
organisation. Human resource planning in Toyota make different planning resources between
HRM and strategic decisions in an organization.
Controlling-
It is a process which is used to control various activities in an organization starting from
planning till development. Market and company makes various approaches used to screened
inner composition of Toyota. Toyota make different activities which is use to plan, measure,
development and provide value added to all stakeholders in an organization (Swink and et.al.,
2017).
Executing-

Toyota help to execute following ways that help in making various policies in order to
make different plans and procedures in an organisation. They work in small companies or make
effective training and development for an HR employees in large organizations. Those
employees who work in large organization may have to give proper training and development to
all employees and travel other companies for meetings and make proposals.
Organizing is a process which is used to control all activities in an organization and
utilise them effectively. Toyota organise, plan, design and coordinate various activities which
help employees to work in proper manner. (Swink and et.al, 2017).
Importance and value of operation management in achieving business objectives-
 Operation management show an crucial role for smoothly run a business concern
operations and functions in order to gain profit and income.
 With the help of operation management, Toyota can make improvement in their overall
productivity process and it gives a measure of efficiency to the company manager as well
as employees. For this, they can easily reach with desired goals and objectives.
Value for operation management in achieving objective-
Value for operation management in Toyota help in making effective decision which are
related to human, business environment, ethics, morality and development of community. This
will help managers and leaders to make value added approaches which assist in reaching with
main objectives for making profit.
Leadership approaches-
Transformational- It is a leadership approach in which leaders identify changes and
make vision while working in a team to accomplish desired goals and objectives. Toyota leaders
make effective members to work in team which develop vision and face some challenges in an
organisation. It will make individuals and mangers to determine needs and goals of an
organisation.
Charismatic- In this approach leaders have calm and distributive behaviour while
making various decisions and develop vision for an organization. Toyota leaders have clear
vision and ability to engage more employees in an organization. They will develop different
leadership styles depending on personality and actions of them. It help in Toyota to analyse all
needs and goals of an organisation.