Leadership and Management: An Analysis of Toyota Plc's Strategies

This report offers an in-depth analysis of leadership and management practices at Toyota Plc, a leading Japanese automobile manufacturer. It examines the roles of managers and leaders, highlighting their distinct responsibilities in driving organizational efficiency and product quality. The report explores various management theories and leadership styles, including transactional and transformational leadership, within the context of Toyota's operations. It delves into the company's participative leadership style, organizational culture, and the application of theories like classical and contingency theory to address challenges such as rising manufacturing costs. The analysis covers key aspects like planning, organizing, staffing, and controlling, as well as the impact of these strategies on Toyota's performance and competitiveness in the automotive market. The report also highlights the importance of the Toyota Way and its impact on human resources and work design. The report explores the strengths and weaknesses of Toyota's strategies and offers a comprehensive understanding of the company's approach to leadership and management.

Leadership and Management
Word count 2941
Executive summary
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The report was written in the context of the role of managers and leaders in the organization, which enables
the company in lead to greater efficiency and developing high-quality products. The research on Toyota Plc, a
Japanese automobile manufacturer, is included in the report. The report discussed the functions of managers
as well as the role of leaders in those functions in order to get employees' work done efficiently. The
significance of management theories and leadership styles has indeed been explained in the context of Toyota
Plc's operations management.
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Table of content
Introduction of management, manger and leader Pg 4
Difference between leader and manager Pg 4
Management process and functions Pg 5
Leadership style of Toyota Pg 5-6
Organisation culture of Toyota Pg 6
Management theories of Toyota Pg 7
Situational and systematic leadership Pg 8
Strategy of Toyota and it strengths and weakness Pg 8
Analysis of situational and systematic leadership Pg 9
Conclusion Pg 10
References Pg 11
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INTRODUCTION
Management is the process of working through others by utilizing some fundamental activities such as
planning, coordinating, directing, organizing, and controlling to achieve the set objectives and goals. It is the
basis for every organization. An organization cannot function for long if its systems are not properly managed.
(Rob Jones,2019, pg1-8)
Manager: Managers are the individuals in an organisation in order to make the work of the organization in the
direction of the firm's predetermined goals and objectives. Managers are responsible for developing and
implementing relevant strategies and policies, as well as planning the operations of employees to ensure that
employees perform their various duties in relation to the aims. (Ionescu &Dragomiroiu, 2014).
Leaders: Leaders are the ones who motivate employees to work toward the company objectives. Leadership
plays a vital role in motivating employees thru their leadership and communication skills, and they carry the
company's objectives with them. They compel employees to work in order to achieve the goals. The primary
goal of leaders is to influence and encourages employees to perform better, which increases the organization's
productivity and efficiency(Rob Jones,2019, pg132-138)
 Transactional leadership: Aids the Toyota's organization in achieving its current goals more efficiently.
 Transformational leadership: That describes how leaders influence teams or Toyota’s organization by
fostering interaction, modelling a vision, and encouraging employees to succeed. (Rob Jones,2019,
pg132-138)
Characteristic of leaders Skill of leaders
Motivator Innovative problem solving
Good communication Trustworthiness
Good decision maker Creative thinking (Rob Jones,2019, pg132-138)
Toyota Plc is a Japanese corporation that operates in the automobile industry, manufacturing, assembling,
designing, and selling passenger cars in countries such as Japan, Europe, Asia, and North America. The
company's management is so effective that the strategies developed by organization result in an increase in
productivity. Managers' responsibilities are effectively differentiated from leadership' roles in the company.
Toyota Plc's managers create the standards for execution of the work of the staff, and the company's leaders,
with their effective interpersonal communication skills, get the work done from the employees while keeping the
standard set by the managers in view. The differentiated role and responsibilities of the company's managers
and leaders result in business growth because tasks are categorized and performed more effectively
(Reynolds& Warfield, 2010).
Differences among leaders and managers
Managers in the organization set objectives in accordance with the company mission, and leaders' task is to
further communicate clearly to employees and encourage them in such a way that the company mission
becomes successful for the future and they follow the instructions provided by the leaders.(Rob Jones,2019,
pg132-138)
The roles and functions are being used along with the theories and concept so as the better understand the
importance in the organisation of Toyota.
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The following are the management process & functions of managers and the roles of leaders in the
organization:
 Directing: Managers direct the tasks that must be completed by Toyota Plc employees and staff, but
leaders create a team and direct how the work should be completed. (Enescu,2010).
 Planning: An important function of Toyota Plc managers is to plan and assigned the company's
objectives in order to increase revenue and car sales. Toyota Plc's strategies for achieving the
company's goals include KAIZEN, which contributes to continual improvement in the manufacturing
process in order to improve product efficiency. The role of leaders in Toyota Plc is to clearly
communicate the roles assigned by managers and to focus employees' efforts on achieving these
mission and targets. (Enescu,2010).
 Staffing: It is the responsibility of managers and leaders to get much more out of the workers hired by
the company. Toyota Plc hires employees and assigns them jobs based on their skills and abilities. The
leaders continue to motivate the staff, assign work based on abilities, and communicate with them to
resolve any complaints while also trying to evaluate their performance. (Enescu,2010).
 Coordinating: Toyota Plc's managers integrate the organization's functions in order to achieve better
results. The duties of various departments, like the production and finance divisions, also help the
company grow by producing high-quality cars at competitive prices. The role of leaders in the function
of coordinating activities is to implement a new system for developing coordination in activities through
communication and good leadership skills. (Enescu,2010).
 Organizing: Toyota Plc managers effectively organize as well as utilize the organization's resource to
achieve the organization's goals. Leaders' roles are to efficiently allocate resources and encourage
employees to work so that available resources are used to their full potential. (Enescu,2010).
 Controlling: The strategies developed by managers and implemented by leaders in Toyota Plc are
controlled and monitored by the company's managers, who also confirm the outcomes of the
employees' performance against the standards established by the managers and mentor the
employees in a way (Enescu,2010).
Leadership style of Toyota
Participative leadership style of Toyota's management encourages their employees to participate in decision-
making so that they can improve their performance level within the organization. When the organization is also
aware of their employees' needs and expectations, participatory leadership can help. As a result, an
individual's way of thinking becomes more innovative, and the working quality of Toyota employees improves.
When employees receive guidance from experts, management can help to reduce the cost of supervision.
Furthermore, the participative style is thought to be effective for working at Toyota. Under this leadership style,
quick decisions are not possible for Toyota.(Piotrowski,2010)
Its rival Ford's leadership style is autocratic. On the other hand, Ford's leaders uses an autocratic leadership
style in which every decision is made at the top level with little input from its group members. Ford
management employs this style for those who prefer close supervision to ensure that employees receive
proper operational direction. In this case, the entity also employs task assignment to help motivate their
employees in order for them to meet their goals. But ford’s workers in the organization may dislike this style.
(Piotrowski,2010)
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Toyota leaders have a differentiated approach and philosophy that is consistent with the Toyota Way. The two-
dimensional leadership matrix depicts what differentiates Toyota leadership from other businesses' leadership.
On the one hand, leaders can either rule through top-down directives or use a bottom-up involving style to
develop people so they can think for themselves and make sound decisions. We've seen time and again that
Toyota executives are enthusiastic about involving people who do value-added work in process improvement.
(Piotrowski,2010)
Organization culture of Toyota
The gathering of values, expectations, and behaviours that guide and instruct the actions of all team members
is known as organizational culture. Consider it a collection of characteristics that define your company.
Toyota's company culture is designed to enhance human resource capacity in innovation. The firm also
advantage from its organizational culture in terms of problem-solving support. Toyota's organizational culture
has various features or characteristics that imply a careful approach to facilitating organizational learning. The
automotive industry undergoes significant change on a regular basis, as evidenced by the change in
organizational structure in 2013. .(panmore institute,2021)
Toyota's organizational culture strongly supports the firm's efforts to innovate and improve continuously.
Understanding this corporate culture is helpful to identify principles and beliefs that make a significant
contribution to the company's business and brand strength against competitors such as Tesla, Ford, and
General Motors.(panmore institute,2021)
Toyota uses Person culture is an unusual culture It is not found in many organizations, yet many people
espouse some of its values. The individual is the focal point in this culture; if there is a framework or an
organization, it exists solely to serve and assist the individuals within it, to further their own interests, with no
overarching goal.
However, so after 2013, the following characteristics of Toyota's organizational culture were identified, in
following order:
 Teamwork
 Quality
 Secrecy
 continuous improvement through learning.(panmore institute,2021)
Toyota's organizational culture characteristics enable the firm to continue growing. Continual improvement
through teaching is the basis of innovation. Work teams' activities result in quality improvement and solving
problems. Thru strong culture Toyota’s Employee’s know how top management wants them to respond to any
situation.However, Toyota's corporate culture's secrecy has potential disadvantages because it reduces agility
in rapid problem solving.(panmore institute,2021)
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There are different management functions as well as various leadership traits and styles that aid in the proper
functioning of management functions. Toyota Plc is facing a situation in which the prices of fuel, materials, and
equipment are increasing rapidly, and in such a situation, the effective implementation of management
functions and the abilities of leaders to plan and implement such strategies that can manage the cost of
manufacture to raise the company's sales and revenue is critical.( Lin, H. & McDonough, 2011)
There are many management theories that, when combined with leadership skills, help a business expand its
operations. Toyota Plc's operational management department focuses on management theories and
combining leaders' efforts to reduce manufacturing costs.
 Toyota Plc uses contemporary management theory to explain the existing situation of rising purchase
and production costs. Managers can devise strategies such as selecting suppliers who can supply raw
materials at a lower expense. (McCann, 2011).
 Toyota Plc applies classical theory of management, involving managers developing policies to raise
productivity. The managers in Toyota Plc develop the KAIZEN strategy, whereby the efforts of staff and
management are continuous to improve the production activities, and where the participative type of
leadership style could be implemented so that the input of the both managers and workers in the
decision regarding reduction of costs and production improvement. (McCann, 2011).
 Toyota Plc leaders use their trait to encourage workers to adopt innovative tech in order to lower
production costs and eliminate employee resistance to change by creating a trusting environment with
effective communication. Management by objectives is a theory which focuses just on collective efforts
of managers and employees to achieve goals. Managers collaborate with employees to establish
performance standards, and leaders delegate duties to staff members so that they are motivated to do
their best. (McCann, 2011).
 Contingency theory focuses on changing strategies in response to changes in situations. Leaders play
an important role in influencing workers to make changes in their operations in attempt to reach the
market's challenges. Toyota Plc managers deemed the reasons for the increased manufacturing costs
and tried to apply the concept to implement some changes in the operational activities to bring down
the high prices of an equipment and materials provided by the suppliers, and they adjusted the
company's policies in the production and operation departments. (McCann, 2011).
 Human Resources and Work Design For this decision area of operations management, the company
hires The Toyota Way and TPS. The Toyota Way emphasizes respect for all people, and this is
reflected in HR programs and policies. Toyota also has TPS-based training programs to ensure lean
manufacturing practices.
 Toyota Plc implements behavioural management theory, and managers comply to policies that take
into account employees' skills and abilities, and leaders employ a transformational leadership style, in
which leaders communicate with employees and policies are effectively defined to them (McCann,
2011).
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Leaders in organisation help in motivating the employees by analysing their neat and decides on the other and
leaders evaluate the changes being a rice and external environment and taking decision so as to make Toyota
benefit from the changes leadership styles are in different type these types are been choose by Toyota show
the leadership can be maintained effectively in the workplace the style are being explain below:
Situational leadership is a type of leadership in which the leaders' strategic plan are determined by the
workers' abilities and skills. This type of leadership ability is extremely effective for completing any operational
activity within a specific time frame. However, companies such as Toyota Plc face challenges in implementing
this strategy due to the increasing fuel prices, increased production costs, and so on.
(Amanchukwu,et.al.,2015)
Systems leadership refers to the ability of a leader to control the activity of workers by interacting with them.
It aids in connecting employees to the process of achieving business objectives. Toyota Plc is implementing
this strategy to meet the requirements of KAIZEN, which will allow them to manufacture automobiles at a lower
cost. (Amanchukwu,et.al.,2015)
Leaders and managers actively participate in business decision-making and ensure the consequences of those
decisions. They motivate employees in such a way that they feel valued in the organization.
(Amanchukwu,et.al.,2015)
MBO is a method by which management and subordinates collaborate to identify goals, set objectives, and
devise plans to achieve these aims.
 Thru MBO Toyota Plc could Improve the communication between managers and subordinates. MBO
often emphasizes the areas in which employees require significant training.
 But however Toyota Plc though MBO its more on short-term goals(Amanchukwu,et.al.,2015)
Each approved as its different objective and result this depends on the situation they are being applied to it
each approach as its strength and weakness as they help in getting results in the work environment. This
strength and weakness are being explain below:
 Toyota Plc also engages a behavioural strategy in which managers have direct influence over
employee skills and productivity. Leaders, on the other hand, convey company policies to employees in
order to keep pace with the strategic strategy. Assigning the right person in the right position is crucial
for this strategic plan. (Otley.D,2016)
 Toyota Plc uses a contingency strategy in the event of a variety of unpredictable events. For any
unavoidable diversified situation, the firm's policies must be changed, and the leaders must ensure the
new plan's implementation. They accomplish this by communicating with and influencing the
employees. Toyota Plc was forced to implement a strategic plan to reduce production costs due to the
rise in fuel prices and manufacturing costs.(Otley.D,2016)
Strength of contingency strategy Weakness of contingency strategy
Open mind activity for Toyota plc Delay in obtaining results for Toyota plc
Effective market research for Toyota plc Slow growth of changes for Toyota plc
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Innovation approach for Toyota plc High cost in research for Toyota plc (Otley, D,
2016)
Toyota Plc can benefit from situational leadership as the company deals with issues such as rising fuel and
manufacturing costs. However, different leadership strategies are required in various situations. Situational
leadership can be very efficient in dealing with this type of problem. As previously stated, leaders serve as a
go-between in the organization. Managers communicate with leaders and inform them of corporate policy and
then leaders communicate with employees. Employees oversees the strategic plan's implementation.
Managers, leaders, and workers from three parties are all involved in the process. Following these steps is
referred to as KAIZEN. It is concerned with production and production costs. The entire procedure can be
described as a systematic leadership approach.
If an unpreventable situation occurs that affects the firm's production and sales, the company employs the
Chaos leadership approach. The chaos theory focuses on market changes and how leaders and managers
respond to those changes in order to make the company operate in that path.(Amanchukwu,et.al.,2015)
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Conclusion
The assignment already has explained the functions of managers and the role of leaders in running a
business effective manner, as well as their importance in achieving organizational goals. Some leadership
theories and leadership styles are used by operational managers in various situations. Some factors in the
business environment can have a rapid impact on operational activity and also have an impact on the
community. Overall, the assignment demonstrated various management and leadership strategies employed
by Toyota Plc in diverse situations.
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Reference
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Economics and Finance, vol. 16, pp. 293-298.
McCann, J.T. 2011, "Product or customer centered organizations and leadership styles", Journal of
Multidisciplinary Research, vol. 3, no. 1, pp. 65.
Enescu, M. & Enescu, M. 2010, "MANAGEMENT FUNCTIONS AND PERFORMANCE
MANAGEMENT", Anale.Seria,tiine Economice. Timioara, , no5I, pp. 141-146
Reynolds, J.G. & Warfield, W.H. 2010, "Discerning the differences between managers and leaders", Education
Digest, vol. 75, no. 7, pp. 61.
Otley, D. 2016, "The contingency theory of management accounting and control: 1980–2014", Management
Accounting Research, vol. 31, pp. 45-62.
Lin, H. & McDonough, E.F. 2011, "Investigating the Role of Leadership and Organizational Culture in Fostering
Innovation Ambidexterity", IEEE Transactions on Engineering Management, vol. 58, no. 3, pp. 497-509.
Rob Jones,(2019),Business student book 2 , 1stedition, UK, Pearson education limited, 80strand London wc2r
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Rob Jones,(2019),Business student book 1 , 1stedition, UK, Pearson education limited, 80strand London wc2r
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Panmore institute,2021.[Online]Toyota’s company culture, Available from http://panmore.com/toyota-
organizational-culture-characteristics-analysis [Accessed on may,10,2021]
Amanchukwu,R.N.,Stanley,G.J and Lobule,N.P,2015.A review of leadership theories principles and styles and
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