Toyota: Analyzing Change Management, Leadership, and Strategy Report

This report provides a comprehensive analysis of change management within Toyota, examining the impact of change on the organization's strategy and operations. It delves into both internal and external drivers of change, evaluating their influence on leadership approaches. The report also explores measures taken to minimize the negative impacts of change on organizational behavior, identifies barriers to change, and assesses the influence of leadership decision-making. Furthermore, it applies different leadership approaches to dealing with change within Toyota, offering a detailed understanding of how the company navigates and adapts to evolving market dynamics and technological advancements. The report utilizes comparative analysis with other automotive companies such as Volkswagen and Ford to highlight key strategies and outcomes.

UNDERSTATING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Impact of change on an organisation’s strategy and operations........................................3
P2 Internal and external drivers of change.............................................................................5
P3 Measures taken to minimise negative impacts of change on organisational behaviour....8
P4 Different barriers for change and their influence on leadership decision-making..........10
P5 Apply different
leadership approaches
to dealing with change
..............................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Understanding and leading change indicates the organisation change as every business
requires the change in order to survive but every organisation must understands their prioritize
set of change and provides the sufficient resources, set define accountability, continuous
improvement and effective ways to plan the goals and objectives of an organisation (Baghersad,
and et.al., 2016). Here, in this report Toyota will be chosen for understanding this topic. Toyota
is an auto mobile company, its headquarter is in Toyota city, Aichi, founded in 28 August 1937.
The founder of Toyota is Khiichiro Toyoda (Colmer, 2015). Toyota company deals in
automotive sector which includes auto mobiles, luxury vehicles, commercial vehicles, engines.
Currently they have 3,69,124 employees. In this report we will study about the impact of change
in an organisation's strategy and its operations and the internal and external drivers that affect the
leadership ways. Also, this report will lay emphasis on study of measures taken to minimize the
negative impact of change and will also include different barriers to change and the influence of
leadership in decision making and different leadership approaches will be discussed for dealing
in organisational change.
MAIN BODY
P1 Impact of change on an organisation’s strategy and operations
For assessing impact of change in an organisation's strategy and operations, the table will be
formulated for comparison between Toyota, Volkswagen and Ford (Giavarina, 2015). Let's
discuss this below:
BASIS TOYOTA VOLKSWAGEN FORD
Change in
technology
relating to
organisation
al operations
Change in material
technology
Toyota makes strategic
changes by using
different manufacturing
materials like plastics,
rubber and glass (Hamm,
Doğurga, and Scott,
Safety feature
The company
Volkswagen has many
changes in regarding to
development of
technology such as, Blind
spot monitor, driver
assistance, and rear
Feature of Safety
The technological
advancement is done
through enabling of
safety features in their
auto mobiles. Features
such as airbags to prevent
from accidents, tracks on
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2016). They use non
metals for manufacturing
instead of metals they
used earlier because to
safeguard resources
which are limited and to
protect global
environment.
Change in technology
regarding safety
To safeguard people from
accidents, Toyota
undertakes various tests
to mitigate risk, damage
or loss of life. They prefer
tests with dummy doll,
seatbelt, airbag, and crash
test car.
traffic alert (Hay, 2017).
These technological
advancement features
enable users a peaceful
life and builds trust in the
Volkswagen.
Efficient fuel reduction
The impact on
technological
advancement in Ford, is
related to implicate
advanced fuel efficiency
to safeguard
environment. The
company uses fuel saving
technologies to prevent
limited resources and
make efforts to make
pollution free
environment.
weather conditions, anti
lock braking system, etc.
These features are enabled
through artificial
intelligence and update
other software of Ford.
Presented technologies
for reduction in CO2
The Volkswagen is
advancing zero emission
and hybrid models. The
technology here used by
Volkswagen is for
reducing fuel
consumption and
emission of CO2 included
dual speed clutch
gearbox.
Change in
inventory
management
Just in time method in
Toyota
Toyota now follows just
in time strategy for
management of
inventory. As now they
are following this strategy
which helps them to
develop efficient working
in workforce and
effective management
Management of finished
parts
Volkswagen was facing
some mismanagement in
their organisation.
Therefore, they are now
following strategy to
manage finish parts and
assemble them in line
which runs continuously
for 5 days and 24 hours.
Just in time
manufacturing methods
The company Ford's
inventory management.
They prefer continuous
monitoring to adjust
inventory and cost
minimised. The company
focuses to make inventory
based decisions. Also,
ford use different
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among inventory. This helps company to
manage inventory and tu
build qualitative
automotive parts.
inventory management
practises in various
markets of Auto mobile.
Labour cost
and
Availability
Efficient use of labour
Toyota manages their
labour very efficiently,
As now they provide
proper training and
development to labours.
Also, company offers
them technological
advancement techniques
to them. This way
company is managing
change for their inventory
by providing them
efficient training and
development (Hord,
2016). This enhances
opportunities for labours
working in Toyota.
Hence, the company
easily manages cost and
availability of labour.
Improper management of
labour
The company was facing
failure in not
accomplishing
productivity goals
(Stevens, and Dixon,
2017). After research
they found they are
lacking in training to
their labour. For this they
started providing proper
training to labour force of
Volkswagen regarding
their task. Thus, for past
years the Volkswagen are
attaining their
productivity goals on
time and in efficient
manner. But cost of
labour maintenance as
beard by company affects
their profitability.
Increasing labour cost
Ford has good and
efficient labour with
them. Therefore, the
company able to attain
profitability and
productivity goals on
time. But their labour cost
is increasing day by day.
As the company is not
able to hire labours
because of unavailability
in this sector (Seinfeld,
and Pandis, 2016).
P2 Internal and external drivers of change
There are various key drivers of change in an organisation. This will be categorised below as
internal forces and external forces for Toyota (Hord, 2016).
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Internal forces
These drivers include plans, organisational strategies, stakeholders, new equipments, Employees,
workforce etc (Hughes, 2015). These will be disused below as to measure that affects leaders,
team and individual behaviours.
 Workforce
Toyota's workforce is very efficient as they provide proper training and development to the
company. The workforce of Toyota is well updated with all new techniques and technologies for
their concern (Stevens, and Dixon, 2017). Also, management personnel of Toyota conducts on
the job training programme to existing and new joining. They follow participative or democratic
leadership style in their organisation where workforce contributes their suggestions and ideas
with the company (Knights, Grant, and Young, eds., 2018.). Leaders value their suggestions and
provoke them to give further contribution, this why workforce of Toyota affects leadership. The
workforce includes labours, employees and management personnel as a whole. Therefore, this
workforce of the company work as a team to accomplish their target to be achieved. The
workforce of Toyota trust each other and work with coordination. By this individual and team
behaviour of Toyota remains balanced and their workforce are satisfied working with the
company.
 New equipment
New equipment is useful for mainly labour class of Toyota to provide them ease in their task
completion. Equipments are useful in managing tasks of Toyota and saves time as well. Such
equipments are, Toyota Material Handling International (TMHI), new machineries for
assembling automotive parts. Therefore, leaders of Toyota provides proper guidance and training
for labours to use these equipments. This indicates that leaders of Toyota are very aware about
functioning and operations of the company. By proper training, individuals and team work in
Toyota becomes time and cost efficient. Also, persons knowledge and skills are getting
developed by using these equipments.
 Organisational strategy
Toyota follows various organisational strategy such as technological advancement, inventory
management, cost leadership, product differentiation, etc. These strategies are controlled and
regulated by management personnel of the company. They take proper care of their set target and
ways to achieve them. They follow tactics regarding leadership in Toyota. Also, the company
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able to achieve organisational goals in time by their employees efforts. Employees of Toyota
works in team and follow orders of their team leaders in order to attain individual and
organisational growth. Leaders maintain a good relationship with employees and also handles
their grievances. Thus, the individual and teams of Toyota remains motivated and able to satisfy
their individual needs.
 Attitude of employees
Employees of Toyota are very efficient at their working because of the proper training and
development programme conducts at the organisation. This way they able to develop their
personal skills and knowledge within the company. Leaders of Toyota accomplish their required
tasks with the help of employees as they give them respect and value their suggestions.
Therefore, leadership in Toyota motivates employees to work for the company. On the other
hand, Toyota's team and individual behaviour is very positive towards the company. As these
people able to satisfy their needs. Also, they feel belongingness and want to retain with the
Toyota. Attitude of employees towards Toyota is participative as they are free to share their ideas
and suggestions with management personnel.
External forces
This forces are influences from outside and can impact functioning of an organisation. Various
external factors are technological changes, customers, government etc that can affect business to
achieve organisational goals. Here, some external forces will be discussed and individual and
team behaviour will also be analysed. Also, effect leadership by these drivers will be discussed.
 Customers
The company avails after sales services and consult customers regarding their needs. Customers
needs are always taken seriously by Toyota. Leaders manages work according to satisfy needs of
customers only. Also, customers feedback are taken into consideration for development of
Toyota (Shrivastava, and Persson, 2018). Leaders of Toyota always concern for needs of
customers and make decisions regarding them only. Leaders make themselves aware about trend
updates for automotive industry and make changes in their manufacturing according to it.
Individuals work hard to attain goals of Toyota, including sales and marketing too. They work in
teams and promote their newly launched products to final consumers to increase their company's
sales. Whole department of marketing and sales are concerned to satisfy customers and provides
services to them like repair, replacement of automotive parts etc. Therefore, the team and
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individual behaviour towards customers is submissive (Stevens, and Dixon, 2017). They care for
their needs and try to accomplish it effectively.
 Technology
Leaders of Toyota need to be aware of all the new technologies prevailing in the market like
technologies regarding safety, fuel reduction, changes in material technology, etc. The Toyota's
leaders make themselves aware because the company is facing competition and to gain customer
attraction they need to stay aware all the technological advancement. Also, individuals and teams
in Toyota provided training for these updated technologies, which improves their skills and work
performance of employees working in the company.
P3 Measures taken to minimise negative impacts of change on organisational behaviour.
Change is the part of every organisation, and refusal to accept the change is a natural process
when employees were asked to have the change. Change is always unacceptable by the
employees and it is uncomfortable as it requires another way of working and doing the work.
Most of the organisation focus on the change management and make their employees to
understand that change is good for their growth. Size of the organisation does not matter the
resistance to change in today's business environment.
 Take time and to watch and listen
If the changes appears as a vague, and effects many organisations than the management team of
the Toyota needs to listen their employees, the restructuring in process might be the major or just
modify. Change can unsettle the employees of the organisation and also impact the work.
Employees become negative specially at the time when it effects their comfort zone or stable
routines. So it is advisable for management of Toyota to take out the time to watch them,
understands and listen their hurdles coming from the change.
 Leadership strategies
By making the leadership strategies Toyota rank and file the employees, many employees were
ready by encouraging them by the upper management about their strategic direction in the
company. As they are often overlooked in the organisation development by using the strategies.
In fact the leadership team make the little effort to change than also employees shows negative
effects (Seinfeld, and Pandis, 2016).
 Demonstrate their genuine concerns
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Toyota tries to make realise to their employees that they can not attain their goal if they will not
perform at their best (Shrivastava, and Persson, 2018). At the time of stress and
challenges ,employees seeks that management will give some solution. At the time of changes
the management and employees should have open communication with transparency and
honesty. Management of Toyota has to communicate with them regularly and make them sure
that they genuinely understand their concern and allows them to talk freely about what is making
them trouble.
 Trainings and Seminar
Trainings and seminars make the employees to learn new skills and techniques of work. Provides
them the opportunity to prepare for change and become more skilled and experienced. Training
and seminars help them in transition and ease their work and them to grasping the new changes
easily.As Toyota has sufficient resources to organise the training and held the seminars to learn
the new challenges is to be faced because of the change. They have to provide the training in
every change so that the employees can learn and ask the queries in session.
 Management fixes things
After hearing the concern and gather the input, fix the that the management can. After listening
to the employees try to discover an easy solution and eliminates the communication gap and
misunderstanding. This will give the positive impact on employees. Management don't need to
do any promises if it is beyond their scope. At the time of changes management of Toyota tries
to make the things easy as much as they can. They don't need to promise for the things which
management of Toyota cannot deliver or now any promises is to be done.
 Be positive and look for opportunity
At the time of change in organisational behaviour is remained positive, encourage the
employees, by taking the initiative to make the work flow easy, and the efforts of the employees
to be appreciated Toyota has to be keep the things positive, move forward and focus on the
things that management can be done. So the employees of Toyota can come up with creative
solutions in this changing organisational behaviour.
 Work in Small Doses
Never overload the employees with lot of changes at once, it will be difficult for them to absorb
all in one time and it will be turned out as resistant. So the leaders of the Toyota has to be taken
it as consideration and give the small chunks which will become easy to grasp and make them to
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learn things easily. If the change in work is being given in small doses it will help them to retain
it more (Stevens, and Dixon, 2017).
P4 Different barriers for change and their influence on leadership decision-making
There are many barriers for change in an organisation such as Toyota has been analysed. These
barriers influence decision making of the leaders of the company (Stevens, and Dixon, 2017).
Here some barriers will be discussed :
Barriers for change in an organisation are
 Limited Understanding of change and its Impact
At the time of change occurred employees do not have much understanding of the change and
the impact of that change so at that time management should be very clear on the change and
make them understand why this change is done, and tell the employees what they have to do in
this change (Schneider, Kock, and Schultz, 2015). The management of Toyota will give the two
way communication channels and make them communicate with honestly and appreciate them
for their work.
 Target for change
Give them the careful thought that specific people will more affected by the change and the
change communication are best delivered by the top-level management. As the management of
Toyota they should take out all the possible ways to help the employees and make them
comfortable with the change with the leadership techniques (Waldron, and et.al., 2016).
 Negative employee Attitudes
At the time of change in the organisation, even they provide healthy environment for work than
also make the employees' attitude negative. In this phase the effective leaders knows that how to
shift negative employee attitude in a positive one and also inspires the team with a solution,
Managers should have the attitude to eliminate the toxic behaviour and makes a positive
workplace. As negative attitude of employees slows down the productivity and efficiency of
employees. The leaders of Toyota should prevent the negativity spreading in the employees and
take the join accountability for the outcome by this initiative employees feel valued and tend to
engage more in their work rather to have negativity in mind (Tatum, 2015).
 Failure to involve employees in change process
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Change will always be difficult for the employees specially at the time when they were
comfortable with the previous working environment, Due to this reason they don't want
themselves to change (Varty, O'Neill, and Hambley, 2017). For making them convince changing
the leaders of Toyota need to explain the reasons of change and major initiative they have to
taken by is to become the path between the management and employees. provide the incentives
to the employees for the change of work so it increases the employees' participation at the same
their responsibilities is to be delegated and provides them the support who is facing the difficulty
and provides extra training (Knights, Grant, and Young, eds., 2018.).
 Poor or inefficient communication
At the time when the organisation culture is change and the leaders also communicates in
improper way limits the ability of employees to work in optimum level. Employees always
desires to work in a place where they were comfortable and have a full right to ask for their
queries and doubts (Schneider, Kock, and Schultz, 2015). So the leaders of the Toyota need to
have proper communication with the co-workers and understand their needs and challenges as
they are facing due to the change.
 Lack of management support for the change
At the time of change the managers and the leaders have to make major improvements in the
area of change, as change is unavoidable so we have to make out the ways that make the
workflow easy for the employees, and if the leaders cannot manage the change, the entire
company has to suffer. Management of the Toyota needs to focus on all aspects of the change in
organisation, as the leaders must have the successful agenda of all procedural methods, and align
the work in a simplifier way. In most of the organisation systematic management who
communicates to employees and support change. As the leaders of Toyota can create h highly
and effective change atmosphere and make the employees productive.
P5 Apply different
leadership approaches
to dealing with change
There are different approaches for leadership are there which are actually dealing with the
change, here these approaches will be discussed :
Situational leadership approach
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It is a leadership style which is adaptive. This leadership is mainly focuses on development of
people and work groups, also establish and bring the best employees forward and use leadership
style across all units of an organisation. It is a flexible approach where leaders can move from
one leadership style to another for satisfying changing needs of organisation like Toyota. Toyota
sets various leadership style and the best fit leadership style will be chosen by organisation. In
this approach leader and Employees of Toyota are guided by management, this creates
effectiveness in Toyota (Zangerle, and et.al., 2016). Due to flexibility by this approach in Toyota
reflects best results towards organisational growth as well as individual growth. The flexibility
offers organisation such as Toyota to adapt according to situation and make appropriate changes
in the company for growth and goal achievement. This is the best approach to maintain any
change whether by internal factors or by external factors. These are properly managed by the
Toyota and company is attaining success and growth.
System leadership approach
System approach is an old concept in field of leadership. This approach mainly focuses on
holistic entity. This approach is specifically for problem solving and to attain objectives. Also,
this approach is useful in making coordination between all business units. But this approach is
focuses towards achievement of goal. In this approach leaders is more rigid and tends to follow
activities that will be helpful in organisational goal achievement. It is used to evaluate elements
of market which affects profitability of business organisations (Knights, Grant, and Young, eds.,
2018). The change in the organisation following this approach is the least concern about it. This
concept is not applicable in Toyota because of their inflexibility.
Contingency approach leadership
This approach of leadership follows various contingencies in subordinate, group or task
variables. The effectiveness of leadership is changing on demands which are imposed by
situation occur in business. The leaders formulate their strategies or approaches according to the
situation they are facing in the organisation. Toyota can follow this approach of leadership as this
is efficient and effective approach for establishing change in the organisation. Companies
following this approach is more flexible and ready to adapt any change in the organisation for the
situation they faced (Stevens, and Dixon, 2017).
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CONCLUSION
The report was all about managing and leading change in Toyota. The report was started
with a comparison between Toyota, Ford and Volkswagen where organisational operations were
discussed. Then comes internal and external drivers of change that affects Toyota's leaders, team
and individual behaviour. After that some measures were discussed above in the report for
minimising the negative impact of change in the company Toyota. Also, different barriers for
change were discussed in the report and also their influence on decision-making leadership. At
last, different leadership approaches were discussed to deal with change in Toyota were
explained.
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