Toyota's Operational Management: Leaders, Managers, and Approaches

This report provides a comprehensive analysis of leadership and operational management within Toyota, a leading multinational automotive manufacturer. It delves into the roles and characteristics of leaders and managers, exploring how they apply in various situations, including team building and project management. The report examines different leadership styles, such as situational, system, and contingency approaches, evaluating their effectiveness within Toyota's operational context. Key approaches to operations management, including Six Sigma, are discussed, along with the impact of the business environment on decision-making. The report highlights the importance of operations management in achieving business objectives, emphasizing the interplay between leaders, managers, and operational strategies in driving Toyota's success. It covers the application of leadership theories and models, such as Adair's model and transformational theory, to enhance organizational performance and efficiency. The report concludes by summarizing the findings and providing insights into Toyota's management practices.

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Management and
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Roles and characteristics of leaders and managers................................................................4
TASK 2............................................................................................................................................6
P2. How are roles of leaders and managers applicable in various situations..............................6
P3 Different approaches used in operational management..........................................................7
TASK 3............................................................................................................................................8
P4 Key approaches to operations management and role played by managers and leaders ........8
P5. Importance of operations management in achieving business objectives.............................9
P6. Impact of business environment on operational management and decision-making..........10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Operations management include activities that are related to assessment of functions linked
with manufacturing of products and services in a company (Boyd and Dougherty, 2016). It is a
formative procedure in which raw materials turn into finished products. This process is also
concern towards maintaining effective quality of products and services by making systematic
balance in between cost and revenue. Present report has been conducted on Toyota which is a
multinational vehicle manufacturing Japanese company. Organisation headquartered in Tokyo
city Japan. In this report discussion has been made on roles and responsibilities of leaders and
managers along with their characteristics. Theories and models that are applicable to
management are also covered in this project. In addition with this numerous forms of leadership
approach has been discussed in this report.
TASK 1
P1. Roles and characteristics of leaders and managers
Toyota is one of the leading multinational companies with having excellent management
structure as they follow hierarchical form of management structure in which power and authority
drives from top to bottom. Leaders and managers place a key essential role within organisation
and they have separate set of roles and responsibilities in order to ensure overall profitability and
growth of company:
Leader:
A leader is a person who engages in the functions of guiding and motivating workforce in
order to accomplish organisational goals in a best effective way. In context with Toyota leaders
acts a one of the key essential element as they encourage individuals with high confidence and
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positivity in their attitude (Han, 2017). It helps them to accomplish targets in timely manner
along with fulfilling company overall objectives.
Characteristics of leaders in Toyota
 In Toyota leaders play the roles and responsibilities in an honest and committed manner
with the help of this they are able to effectively encourage and influence employees as to
consider same approach.
 Within Toyota leaders accomplish the targets with a charismatic’s personality which is
the main reason for them to become an ideal for subordinates.
Adair's Model for leaders role
As per according to John Adair there are mainly three key theories with the help of which
leaders cab effectively able to formulate well effective working environment that generate
desirable profitability. In this formative action include, Achieve the task, Build and maintain the
team and develop the individual. By undertaking these key approaches leaders within Toyota can
effectively able to achieve their common task while building teamwork. In addition with this, As
per according to Adair there are eight functions which is required by leader to consider that
include, defining the task, planning, briefing, controlling, evaluating, motivating, organising and
setting an example.
Managers:
They are the most important authority as they hold great responsibility towards assigning
and evaluating needs relating to resources and other related in an organisation. In the
management structure of Toyota managers pass their instructions from top management along
with this they ensure that operations effectively conducted in organisation.
Roles of managers in Toyota
Controlling:
Prima facie roles of manager in Toyota is related to controlling the task as per according
to the performance of an individuals.
Planning and directing:
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In Toyota managers hold the responsibility to formulate communication in best effective
paln and direct lower staff. This will help them to provide proper support towards fulfillment of
company goals and objectives.
Characteristics of managers in Toyota
 In Toyota managers are emotionally stable and creative this will help them to overcome
their frustration and anger in order to manage subordinates in best effective way.
 Managers in Toyota effectively priorities work to each and every individual as per
according to the background and educational qualification. This will help company to
increase the quality of their work along with completion of targets in a proper effective
time.
Similarities between managers and leaders of Toyota
 Managers and leaders both within Toyota have different set of responsibility but have
same set of goals which is to increase organizational profitability and productivity.
 Both leaders and managers in organization effectively conduct their roles in order to
increase confidence among employees and stimulate their growth performance. Along
with this both managers and leaders provide formative and effective support to their
workforce in order to achieve goals in a timely manner.
In Toyota, leaders and managers effectively take advantage of different types of Management
and leadership theories in order to effectively accomplish their roles and responsibilities in a best
possible way.
Transformational Theory of leadership
With the help of this theories leaders can effectively able to effectively able to ensure
behaviour of the workforce and influence them in a formative way with the help of
transformational theory leaders can able to make sure that objectives and targets fulfilled in
effective way along with along with timely surety.
Classical theory of Management
According to this theory manager of organisations are required to consider increasing
profitability of organisation. To accomplish this manager within Toyota put their focus on
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effectively accomplishing the goals related to personal and Organisation need identification.
This will help them to increase their effectiveness. T his can be done by managers with the help
of effective decision making as to ensure high and profitability of business organisation.
TASK 2
P2. How are roles of leaders and managers applicable in various situations.
Toyota is one of the largest and leading multinational organisations and operates their
activities around the globe (Yun, 2018). In order to effectively accomplishing company actual
targets managers within company undertake different types of activities that are related to
assigning work to subordinates as per according to their skills and formative planning related to
important project. In order to effectively accomplish these predetermined targets. It is essential
for managers to modify their strategies as per according to Technologies and business
environment. In this regard leaders can effectively support their team ask to adopt new
technologies and improve their skills towards effective achievement of goals .Mentioned below
there are some certain situation in relation to Toyota:
Team building
Team is a set of different types and background of individuals those who are having same
expertise and skills. In context with Toyota managers take advantage of autocratic form of style
in which they guide individual towards working in a team. Managers within Toyota sometime
face issue related to direct team members towards effective performance in order to compete
with external business environment in addition with this managers also encountered with team
building issue. While in Toyota leaders found themselves with issue related to building trust of
the subordinates with the help of which they can create positive and healthy working
environment. For this, manager and leaders take advantage of Management by objective strategic
model as to improve organisation performance. In this they define objectives that are mainly
agreed by both employees an management. With the help of these practices both leaders and
managers can able to accomplish company targets in best effective way. Team building process
lead Toyota towards encouraging their employees to challenge Innovation and new ideas has to
increase their as well as organisational productivity.
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Project management
In order to accomplish business objectives accomplishment of project execution is one of
the essential elements. In order to accomplish project in best effective way it is essential for an
organisation to take advantage of numerous business strategies. In relation with Toyota, it is
essential for them to undertake and considered resources in best effective way. Along with this
managers within company assign work to individuals as per according to their capabilities and
knowledge. While leaders faces issues related to monitor performance of each and every
individual in a team and provide proper training as per according to their need to increase their
knowledge and skills. For this, managers and leaders both take advantage of situational
leadership approach with the help of which they manage project as per according to situation.
With the help of this, they can able to guide and manage resources as per situation in order to
gain best advantages form them.
P3 Different approaches used in operational management
Situational leadership style :
This leaderships style was introduced by Kenneth Blanchard and with his collogue Paul
Hershey. In this work is done according the situation of company. In situational leadership style
manger have the authority whether to implement the leadership style or not. In the context of
Toyota, manager of this company must implement the situational leadership style because it
provide flexibility to employees to work according there capabilities.
System leadership style:
This leadership style work on the hierarchy process where each is done as per the
guidelines provided by organisation. Dr Ian MacDonald, invented this leadership style. In the
case of Toyota, manger have the responsibility to apply system leadership style because it
provide efficiency in production process. This theory is not much effective for Toyota as it
include high complexity as in this informations is required to manage that make it complex.
Weakness that has been hold by this leadership approach is flexibility.
Contingency leadership style:
This style is useful for developing strategies and managing human resources in an
organisation. This kind of leadership style was given by Fielder and it is also known as Fielder
contingency theory. For Toyota, it is crucial to mange human resource for maximisation of profit
and this style will help to achieve their target. Contingency leadership style offer information
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that are related with leadership style which proves to be effective to develop plan that also acts as
strength. While, in this it is difficult to test as in this there is no use of any methodology.
As per the above mentioned discussion, it has been evaluated that situational leadership
style will prove to be effective for Toyota. As with the help of this they can effectively able to
accomplish there work according to situation. In addition with this, with the help of this
leadership approach leaders can effectively able to recognize need for flexibility along with
creating comfortable environment for workers.
TASK 3
P4 Key approaches to operations management and role played by managers and leaders
The operations management is defined as the process of operating functions in converting
raw materials into finished products. The management theory emphasises on maximising
elimination of waste material and doing optimum utilisation of resources. The min objective of
this process is to increase functionality and efficiency of operations in Toyota. The operations
management helps in maintaining a proper balance between cost of the company and revenue
generated by the company. There are basically two types of operational functions in Toyota that
are listed below-
Production- This function of Toyota is involved in managing raw material and
converting this into finished goods. This is an important function of a manufacturing company.
Transportation: One of the main function of a manufacturing company is transportation.
It is important for leaders and managers of Toyota to effectively manage and manufacture
vehicles and auto mobiles.
Promotion: It is a operational activity which infuses any or all sorts of marketing and
communicational tools that are responsible for informing or persuading target. It is a set of
activities which help in providing information regarding products offered by a brand to its target
customers.
Approaches to operations management: Approaches operations management refers to
guidelines or controlling tools and techniques that ensure effective planning regarding
manufacturing, storing and selling goods and services to customers.
The different approaches used for operation management are given below-
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Six Sigma: This is an approach by which waste material is eliminated in any product. Six
Sigma helps in enhancing the the productivity and motivation level of employees within the
organisation. This helps the company in achieving organisational goals and objectives in
specified time frame. This operations management approach is used in Toyota for the evaluation
and analysation of employees and eliminating defects in product. Six sigma approach is further
classified into two types, namely, DMAIC and DMADV. It is a sub division of six sigma which
is known as data driven approach and this helps in improving the efficiency of business
operations. It stands for define, measure, analyse, improve and control. On the other hand,
DMADV is another important concept of six sigma and this helps in evaluating customer
perspective of business. It further stands for define, measure, analyse, design and verify. This
approach helps Toyota for analysing the present performance of employees and making several
steps for increasing their standards.
Just in time approach: This approach helps in reducing delay in processing of finished
products from raw materials. The managers and leaders of Toyota can effectively handle
inventory management by his approach. This approach focuses on decreasing cost related to
inventory management.
Total Quality Management (TQM): This is an approach used by companies and this
helps in maintaining the quality of products and services. This helps managers and leaders of
Toyota to ensure that customers remain loyal towards brand and company for a long time. TQM
helps in enhancing organisational culture of Toyota and promoting excellence in operations of
the company.
P5. Importance of operations management in achieving business objectives
Operations management can be referred to as the process linked to production within the
premises of an organisation. This is a process that is a composite of activities such as planning,
monitoring, controlling, organising, coordinating etc. In relation to Toyota, operations manager
intends to ensure that offerings of high quality are produced and made available for customers.
Mentioned below there are some importance and value of operation management in context with
Toyota:
Optimum Utilization of resources: It can be said that operations management is an
effective technique through which company cab effectively able to utilize their resources. In this,
manager of Toyota ascertain innovative ways to use organisational resources, physical evidence,
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raw material, cost and manpower significantly while simultaneously enhancing the quality of
offerings. Leader of this entity encourages personnel by rendering them training sessions for
increasing their productivity and performance. In addition with this management within Toyota
also take advantage of innovative technology so to use resources of company in well effective
way.
Maximisation of Profit: Within a company, profit is regarded as an important element
which helps in achieving the desired goals and objectives. In context of Toyota, leader as well as
manager render focus upon this aspect to make sure that all the tasks of company are executed by
workforce in a timely manner. The main motive in this regard is to carry out activities and
processes which can enhance the profitability of entity. Further, leader within Toyota aim at
development of a positive working atmosphere to facilitate employees to perform more
productively.
Ability to increase Productivity: With increase in productivity organisation can lead
towards high turn over . This can be effectively accomplish by Toyota with the help of optimum
utilization of resources, budget control and capable manpower. In addition with this, Toyota
management take advantage of Six Sigma approach as to offer qualitative goods and services to
customers.
As per according to the above mentioned importance Toyota can effectively able to
increase their work efficiency along with effective control over their organisational resources.
This will lead towards generating high end revenue. Operation management holds effective
responsibility in Toyota as to manage and operate overall functions in well defined manner.
P6. Impact of business environment on operational management and decision-making
There are a number of factors, internal and external, that affect the decision making of a
leader and a manager in organisation. Some of these are internal factors while some others are
external factors.
Internal Factors
Internal factors are those elements of business environment that take place in the
premises of company. Some of the internal factors affecting operations management and
decision making procedures are:-
Shareholders: They are the personnel who have invested funds within the company with
an aim to earn profits. In relation to Toyota, manager devises the policies and plans for the entity.
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In case the decisions undertaken by leader and/or manager are effective, it helps in gaining the
attention of a larger quantum of investors for purchasing shares sold by entity.
Employees: They are regarded as a crucial asset for the entity without which the
organisation cannot function properly. With respect to Toyota, it can be seen that manager hires
skilled and competent employees while the leader provides training to them with a view to equip
them with required knowledge. This assists the enterprise in attaining organisational goals within
time.
Corporate culture: Culture is the composite of beliefs, values, practices and ideologies of
company. Within Toyota, manager and leader take decisions in a manner to come up with
initiatives to develop a positive atmosphere so that employees get motivated and enhance their
overall productivity.
Corporate value: This can be said to the guiding values or principles that are aimed at
maintaining an organised organisational conduct. With reference to Toyota, it is seen that
corporate values are present in the vision and mission statement of entity that are taken into
consideration by leader and manager while taking decisions.
Corporate Social Responsibility: These are the initiatives that are undertaken by an entity
to give contribution towards welfare of society and preservation of environment. The leader and
manager of Toyota also undertakes decisions to come up with strong CSR initiatives. A few
examples of these are lowering the carbon footprints and emphasizing upon the use of renewable
resources to gain maximum customer satisfaction through welfare of society.
Corporate Ethics: Ethics is referred to as the branch of philosophy that deals with
morally right and wrong conduct (Nayak, 2015). The leader and manager of Toyota undertake
effective decisions to develop its own set of ethical values and morals that ensure organisation's
ethical conduct at all times.
External Factors
These are those elements which do not pertain to the organisational premises. PEST
analysis is used to mention the influence of external factors upon Toyota, as follows:-
Political factors: The management team of Toyota devises policies and regulations only
after taking into account aspects such as political stability, corruption, bureaucracy, legal
framework etc.
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