Leadership and Management: Toyota's Operational Strategies

This report provides a comprehensive analysis of leadership and management practices within Toyota, a leading global automobile manufacturer. It begins by differentiating between the roles and characteristics of leaders and managers, emphasizing their respective contributions to organizational success. The report then explores how leadership and management functions apply in various situational contexts within Toyota, highlighting the importance of adapting strategies to different challenges. Furthermore, it delves into the different leadership theories and models employed by Toyota, such as situational theory and systems leadership, and assesses their impact on operational efficiency. The report also examines key approaches to operations management, the significance and value of these approaches, and the internal and external factors that influence Toyota's operational management. The conclusion summarizes the key findings and underscores the importance of effective leadership and management in driving Toyota's continued success in the competitive automotive industry.

MANAGEMENT AND
OPERATIONS

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) The different roles and characteristics of a leader and a manager........................................1
P2 The role of a leader and the function of a manger apply in different situational context.......3
P3 Different theories and models of approach related to leadership in Toyota...........................5
TASK 2............................................................................................................................................6
P4 The key approaches to operations management and the role that leaders and managers play
.....................................................................................................................................................6
P5 Significance and value of operations management................................................................8
P6 Factors with in businesses that affects operational management...........................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Management is a very important part of any business. It is almost impossible for any
company to survive without effective management in the market. There are various kinds of
management style that a manager or a leader can follow in order to manage or lead a firm. A
company consist of different operations and processes, and proper management of those is the
key for success of any firm. A manager has to make sure that business operations as well as
processes are proper and it is helping in generating high profits and productivity for the firm.
Toyota is the biggest automobile manufacturer of the world and is recognised all over the world
because of its products and service delivery (Schniederjans, Cao and Triche, 2013). The
company is having expertise in some of the areas of efficient management like Lean
management, manufacturing etc. The company is also having some efficient operations around
the world which allows it to lead the automobile industry. Toyota is a brand around the world
and the most selling car of the company is Toyota corolla, it is estimated that around 5 million
inits are sold by Toyota in a particular year.
TASK 1
P1) The different roles and characteristics of a leader and a manager.
It is quite obvious that a business can not run by itself, it should have some efficient people who
run it. These efficient people shall be on the post in an organisation that they will be able to
contribute in the growth as well as success of the organisation like, manager, leader etc.Manages
the leaders place at different role in the organisation based on their capabilities as well and
abilities that they possess. As said by Peter Ducker that leadership is doing right things and
Management is doing things right basically a leader has to do right things and has to take
decisions which will be beneficial for the firm going forward and the role of manager is to make
sure that the decisions that are taken by the Later are perfectly implemented within the
organisation and make sure that implementation take place within the time that has been allotted
for the task (Bartlett and Beamish, 2018). Toyota is a multinational company and is having a
diverse operations around the world it is growing day by day and therefore it is essential that
business operations of the company are managed alert and led by capable individuals it is
therefore quite essential to hire people who would have this capability is the role of manager and
a leader is quite different and are described as follows:
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Role of Manager:
Risk controller: There are some issues in an organisation which are uncertain in nature and may
arise at any time and therefore it is the responsibility of manager to make sure that these issues
are managed effectively and efficiently so that it will not harm organisation and its resources
adversely. Toyota continuously way back up plans so that if such issue arises then company can
handle them in an effective manner the Company spend a lot of money on research and Double
up meant to stay one step ahead of its competitors.
Goals oriented: Toyota company make sure that the managers that are being hired in the
company do Have capabilities to manage certain complex issues within the firm which will help
company to grow as well as prosper in the future. The main role of the manager is to set goals for
the company and make sure that those goals are achieved in an efficient manner (Hillier, 2012).
The manager should make sure that every department of the company is working towards
achievement of the goal that are being said by him.
Direct: This can be considered as one of the most important function of a manager, he is
responsible for directing people as to what are their jobs and how they should accomplish them
in an affective manner. If a manager will not be able to direct people, then there will be certain
complications which will not good for company and it stakeholders.
Role of Leader
Representative of company: A leader can be considered as the representative of the company
towards the third party and outsiders. He is the one who handle most of the external events of the
company like seminars discussion conferences etc. it is thus quite important that the leader of
company do have a vision and goals, managers of the company should implement those goals
and objectives of the leader in an effective as well as efficient manner.
Decision Making: The leader is responsible for taking important decisions for the company so
that it can grow and prosper going forward. He is also responsible to form teams within the
company and those teams should be led by later which will make sure that effective outcomes
are derived from those teams. He is also responsible for making sure that the decisions that are
being taken are implemented (Feng and et.al., 2014).
Motivation: The leader has to continuously motivate his team so that they can enhance the
productivity of the company and at the same time contributes in their personal and professional
career goals, if the individuals who are working within the company are not motivated to work
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for the company then certainly it will have a negative impact on the performance of the firm. It is
this quite crucial that leader shall have a proper framework to motivate its individual and
employees.
Leader and manager Comparison
Comparison Manager Leader
Decision making He is responsible for all the
decisions that are taken at the
workplace.
He only facilitates the manager in
some of the decisions.
Approach They are responsible for
managing the firm.
They have to take necessary
decisions for the firm and show
direction for future growth.
They are more focused to words
short-term goals and objectives.
They are responsible for framing
long-term goal and tactics of the
company.
Control They have control over some of the
operations of the company.
They have control over the whole
company and maybe in some
cases, the ultimate owner of the
company.
P2 The role of a leader and the function of a manger apply in different situational context.
Leaders and managers have different role in the organisation. Leader plays the role of
leading leading the company in affective manner. On the other hand, manager is responsible for
making the decisions are reality. But, it is a sensual that both the individuals should work in
tandem with chief organisational growth and success. Toyota is a huge company and its having
manufactured facilities all over the world. The company is growing at a steady pace only because
of the officiant managers that are there in the company as well as effective decision-making of its
leaders (Hajmohammad and et.al., 2013). The manager directs its implies and subordinates to
achieve certain goals within the timeframe allotted. Both managers and leaders have to work
collectively to make sure that organisation walks on the growth and success bath for this they
will put all their skills and talent along with necessary hard work.Some rolls of a leader and a
manager in Toyota is described as follows:
Decision making process: It can be considered as one of the most important part of business.
Under this, The manager will be taking short-term decisions for the purpose of achievement of
daily goals and targets. On the other hand, leader will be responsible for taking long-term
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decisions that will have a lasting impact on organisation and its operation. Leaders usually does
not take part in date today decision making of the company, however if there are certain situation
which needs guidance of leaders and the owners of company then it becomes responsibility of
the leader to lead firm in those situations and take them back on the path of growth and success.
In Toyota the decisions are taken by the manager and leader collectively and make sure that the
best possible outcome is achieved through those decisions (Rosemann and vom Brocke, 2015). It
is also necessary that the decision making process Within Toyota is not cumbersome and it is
easy enough to make an impact on the organisation.
 Authority Delegation: The managers under Toyota believe in participative management
therefore, delegates there authority to subordinates and act as a facilitator so that
necessary guidance can be given to them for the purpose of taking decisions and
performing tasks in an effective manner. Under Toyota, the company make sure that
there is no power centre within an organisation and decisions are taken collectively so
that the best possible outcome can be achieved in an effective manner. For this purpose
the top management of the company continuously assess the various power centres and
authorities.
 Employee Engagements: Both managers and leaders under Toyota believes believes in
making sure that there is proper coordination as well less corporation among employees
and they are completely engaged with most of the business activities of the company. It is
their responsibility to make sure that there is proper employee engagement within
organisation
Training and development: it is one of the most important aspect of managerial and leadership
decision-making. Under this, it is the responsibility of managers and leaders both their
employees as well as individuals among the company are properly trained and are developing by
the time. If the skills of employs will be nourished through proper training and development then
this will contribute to enhance the productivity as well as profitability of the company (Hitt, Xu
and Carnes, 2016). Training is also given to employees within company for managing customers
and dealing with them in an appropriate manner. The skills and talent of employs will help
company to gain higher productivity as well as growth.
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P3 Different theories and models of approach related to leadership in Toyota
Most of the companies on a global level, or applying various models and theories within
the working for the purpose of achieving excellence in their operations. Toyota also makes sure
that various approaches which are essential for applied in an affective manner within the
company with the help of proper leadership and managerial decision-making. Higher authorities
within the organisation assigning duties and responsibilities to leaders so that task can be
completed within the time frame that is allotted. Some of the theories which can be adopted by
the management of the company are as follows:
Situational Theory:
It can be considered as the most effective leadership style. It consist of various leadership
styles Which are being applied in different situations. This theory states that everything that
happens in the workplace is based on the situation and therefore most of the decisions are taken
on the basis of the situation that occurs. It can be considered as one of the most important and
effective theory which can be used by the management of Toyota for the purpose of growth and
development of the company (Lanzarone, Matta and Sahin, 2012). It is necessary to provide
effort to innovate and to make an introduction of employs with the working environment. The
leaders shall be able to move from one area to another in a manner so that eye can be kept on
organisational performance as well as the necessary outcome derived by employs the
organisation, under this theory, the leaders are also responsible for resolving certain issues which
might impact the overall performance of the company.
System leadership theory:
This theory can be considered as the problem-solving theory of organisation. It considers
certain issues which arises in an organisation on a daily basis.It is the major responsibility of the
leaders of organisation to make sure that issues are resolved in an affective manner and does not
hamper the growth and productivity of organisation.It is also known as radical approach because
it helps organisation in development as well as growth. this theory helps organisation introducing
complexity and enhancing overall performance so that higher profits as well as productivity can
be achieved. In this, the manager has to follow certain principles in order to control some internal
as well as external factors which prevails within and outside the organisation.
Trait leadership theory:
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Basically this theory explains that a leader is born to be a leader and it is the trait which is
in the personality of a person and it cannot be made with effort or anything else it is something
which is achieved by birth. Therefore this theory completely relies on the leader and says that
effective judgements are taken by the leader in various situations and individuals within
organisations should follow him with at most discipline. According to this theory, litre is are
born leader and though he can be a manager but the manager cannot be a leader because of the
fact that there should be some characteristics that only a leader can possess and not a manager.
Classical management theory:
This theory talks about finding the best solution for the purpose of Management the operations of
the business. This is a scientific theory and it says that certain issues needs to be resolved in the
traditional manner and should not be manipulated. This theory is used mostly within the
organisations which are running from a lot of time and has gained success by using this kind of
theory (Crevier, Cordeau and Savard, G., 2012). it is essential from the point of view of
Management that the theory is rightly implemented so that the best possible result and outcome
can be obtained.
Contingency Leadership theory:
It is the behavioural concept that touches within an organisation and it relies upon
thoughts views and opinions of all the people working within the company. The ultimate aim of
the story is to make sure that in certain contingencies, proper leadership from right kind of leader
to lead the organisation and take the company forward is there, contingencies could be anything
with regards to external internal factors (Pudar. and et.al., 2014).
TASK 2
P4 The key approaches to operations management and the role that leaders and managers play
Operation management can be referred to as the administration of various functional
activities which are been organised by the company. Management is most efficient in nature
which makes the whole organisation work in an appropriate manner. is famous for its efficiency
services that are delivered to its customers as well as buyers (Hristov And et.al., 2013). In Toyota
the leaders as well as managers play a different role and are equally important for the growth as
well as development of the organisation. Some of these roles described as follows:
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 Planning: It can be regarded as the most fundamental process which is performed by
manager at the workplace it is essential that right kind of planning is done before
implementing any decision or launching any new business. Before setting up any new
business, a perfect planning shall be there which would help company as well as the
business to actively move forward with the help of right kind of plan becomes easier for a
manager implement where is the decisions in an affective as well as efficient manner.
Managing: just planning is not enough it is necessary that right kind of managing skills are
possessed by a manager so that teams as well as individuals can be managed effectively in the
best possible outcome can be achieved through proper management of both (Benzarti, Sahin and
Dallery., 2013). Managing is an art it requires a lot of effort as well as skills and abilities. They
provide guidance to employs for the purpose of completion of their work and Tasks, in the most
effective way. It is also the role of manager for the whole business is managed effectively Toyota
have various managers around the world in their responsibilities are also quite big, as they have
to manage various customers, buyers and at the same time report to management regarding the
performance of business, so all the stops requires patience and management skills which can
only be possessed by a manager (Singhal and Singhal, 2012).
 Total quality management: it is one of the major elements of our firm. In today’s modern
Era and generation, people are more interested in the quality of goods and services
provided rather than the prices that are being set by the company. Toyota believes in
providing goods and services which are high in quality and are way better than its
competitors.Therefore the company believes in total quality management of its good as
well services. It becomes the ultimate responsibility of managers and leaders to make
sure that the level of quality of of various goods and services provided by the company is
not mediocre and are competitive.
Just in time: it is the method used by the managers for the purpose of efficiently managing the
inventory level of the company. Under this, the order is for raw materials are placed just before
its consumption. By doing this, the company will be able to save the cost of the stages and
ultimately will contribute to higher profits. Toyota uses this method to purchase goods from its
suppliers just before they are being purchased by the buyer within the stores of the company
(Gao and You, 2015). This ensures that there is no wastage of good and they are being sold as
and when they come in the store.
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 Lean Management: it can be regarded as one of the technical approach to function a
company or a business, basically it supports the continuous development concept. It helps
in evolving the present services, goods , product as well as processes that would be
needed to make an increment with the time. Toyota uses this Process for effectively
managing its business operations.
 Six Sigma: It is the strategy to reduce the faults in the manufacturing or delivery of
various goods and services. The ultimate aim of this strategy is to make sure that while
performing business activities there is no on minimal error.
P5 Significance and value of operations management
It is quite obvious that the significance of operation management is quite huge within the
field of business. The operations of the business is not managed properly, it is unlikely that the
venture will turn out to be profitable as well less productive for its stakeholders Toyota believes
in managing in its operations and effective manner through talented leaders as well as managers
(Littlefield and et.al., 2016). There will be a proper operation management within an
organisation then it will have various benefits for the company. Some of the benefits of effective
operational management are described as follows:
Minimisation on wastage
Toyota is the well-known brand In retail sector it is having operations around the world.
Therefore, it becomes very crucial that these operations of the company are managed efficiently.
If these are being managed efficiently, then wastage that occurs will get reduced quite an extent
and hence will contribute to higher profitability. Through active operation management the
various resources of the organisation can be managed efficiently. It also helps in cutting down
the cost of providing services or manufacturing goods.
Consumer satisfaction
With efficient operations management the company is able to service its customer if
actively this results in their satisfaction which is very necessary for any company to grow and
prosper going forward. If the company can achieve consumer satisfaction this would mean that
the consumer will be loyal for the company, and this would be a great advantage in a competitive
Era (Kern, Moser, Hartmann. and Moder, 2012). Toyota make sure that necessary needs as well
as demands of its customers and consumers the mat so that they will be able to gain their
satisfaction and loyalty, which will help company to grow.
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Profit maximisation
The operations of business are managed efficiently it would result in reduction of cost as well as
reduction in unnecessary expenses and wastage this would result in various benefits to the
company the primary one of them will be higher profitability. Hence it is quite clear that good
operation management would result in higher profitability for Toyota in the future.
Goodwill Increase
A good operation management will also ensure that the good will of the company will
increase going forward. This is because consumers will be able to served in an effective manner
and this will create a positive image of the company in their mind and hence an increased
goodwill (McArthur, 2015).
P6 Factors with in businesses that affects operational management
The business and choices making procedure of Toyota is affected by two kinds of
situations which is required for association to examine for dealing with their exercises and after
effects of connected procedures.
Internal Factors
These elements are frequently arranged within association, for example, Toyota and influences
the basic leadership procedure of organization and in addition its activities. These comprise of:
Customers
Purchaser of Toyota assumes vital part in the accomplishments and achievement of the
organization. Fulfilled purchaser of Toyota has took organization so far toward the achievement
and interesting acknowledgment of association. The venture have its clients universally which
are generally are exclusive class of individuals
Representatives
Specialist execute as quality of association. Imaginative, separated and potential worker is key of
accomplishment of Toyota organization for which association perform different exercises, for
example, preparing and advancement, annuity and remuneration which helps in expanding their
execution and holding them with the brand.
Society
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This is real obligation of an administrator to perform all the more morally and in advancement of
society. Toyota have give further developed and digitized innovation to the general public which
have provided food progressive changes in the whole market of media transmission.
Suppliers
Providers are the suppliers of crude material and real individuals who can either build the cost of
generation or abatement it. Supervisor and pioneers of Toyota ought to keep up the association
with their providers for the less expensive crude assets. Their duty is to give great quality
standard of crude material at least cost (Ashutosh,, and et.al., 2016).
External Factors
Legal Factors
These are various rules as well as regulations that prevail in the country in which it
operates. The rules may be in favour of Toyota or against it based on the country in which it is
operating. These are formed by political parties of the country based on what is suitable for the
society and has to be abided by the company at any cost.
Political factor
The operations of Toyota are affected by the political policies that are prevailing in the
country and hence it is quite essential that managers within the company incorporate political
factors as well for the purpose of managing the operations and framing strategies.
Technological Factors
It is the most important factor within Toyota that affects its business as well as
operations. The kind of technology that a company chooses for the purpose of manufacturing of
its automobiles will have a direct impact on overall sales and profitability and market position.
Thus it is quite essential that right kind of technology is followed by the company for the
purpose of its projects (Davidson, and et.al., 2013).
CONCLUSION
Does from the above discussion it can be said that management of the operations of the business
is a very crucial part of the organisation. It is essential that this operations are being managed
with all seriousness by the managers and the leaders of the enterprise. If the operations are not
being managed properly and are continuously taken for granted by the managers then the
profitability and productivity the company can see a decline and thus it will affect all the
stakeholders of an enterprise. It is of Paramount importance that capable individuals are hired as
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managers as well as leaders will take the company forward and bring the best out of the teams as
well as all separate individuals that works within the company.
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