Unit : Essentials of Management

Assignment title : Management of Toyota

Spring – Winter

Introduction
One of the biggest automakers in the world is Toyota Motor Corporation, a
worldwide company with its headquarters in Japan. Since its founding in
1937, Toyota has developed into a recognized global brand with operations
in a number of nations, including the US, Europe, and Asia. Toyota is
renowned for its cutting-edge and effective production techniques, including
the Toyota Production System, which has established a standard for other
businesses. Toyota is dedicated to being a good corporate citizen and has
put in place a number of efforts to lessen its impact on the environment and
promote sustainability.

Task – 1
(a) Five Fayol’s Principles of Management
1. Unity of command
2. Discipline
3. Unity of direction
4. Order
5. Equity

Unity of command: According to this theory, in order to reduce confusion

and conflict, a worker should only take commands from one management.
Toyota places a strong emphasis on teamwork and collaboration, but it also
understands the value of having distinct lines of authority. Every employee in
the organization has a distinct job function and answers to a certain
management. For instance, in the manufacturing system used by Toyota,
each employee is in charge of a particular task and receives orders and
direction from a team leader.
Discipline: According to Fayol, discipline is crucial to the success of any
organization. Toyota places a strong emphasis on discipline through its
commitment to SOP adherence and continual development. Employees are
expected to follow standardized work methods and look for ways to
continually improve them, for instance, in Toyota's production system. Toyota
has become one of the most prolific and efficient automakers in the world as
a result of its emphasis on discipline.
Unity of direction: Every employee should be working towards the same
aims and objectives, according to the unity of direction idea. Toyota places a
strong emphasis on the value of coordinating personal ambitions with
overarching business goals. The company's goal and values are outlined in
 Toyota's "Global Vision" statement, for instance, which aids in directing
decision-making at all levels of the organization.
Order: The importance of structure and the effective utilization of resources
are emphasized by this principle. Cleanliness and orderliness in the
workplace are highly valued by Toyota. In order to increase workplace safety,
effectiveness, and productivity, the organization, for instance, emphasizes
the value of cleaning and organizing the space. This is done using the "5S"
methodology.
Equity: This guiding principle highlights the significance of treating staff
members fairly and with respect. Toyota places a high priority on
empowering and engaging its workforce. For instance, the company's
"Kaizen" strategy motivates staff to consistently look for methods to enhance
their work processes and take part in decision-making. Toyota also places a
lot of attention on training and development to ensure that workers are able
to realize their full potential.

References

1. Tichy, N. M., & Bennis, W. G. (2007). Toyota: How a global corporation is

turning risk into innovation. Harvard Business Review, 85(12), 68-78.
2. Liker, J. K., & Convis, G. L. (2012). The Toyota way to lean leadership:
achieving and sustaining excellence through leadership development.
McGraw-Hill Education.

Task – 1
(b) Workplace Challenge: Quality control has been one of
Toyota's workplace challenges in the past. Toyota was forced to recall
millions of vehicles in 2010 owing to problems with the accelerator
pedals and floor mats that might become stuck under the pedals and
cause unexpected acceleration (New York Times, 2010). The firm
incurred a large financial loss as a result of this problem, which also
tarnished Toyota's image for quality and safety.

Mintzberg's managerial roles offer a structure for comprehending the

various roles that managers take on inside an organisation. The
decisional role and the interpersonal role are two roles that could help
Toyota overcome its quality control problem.
Two Mintzberg roles are
1. Interpersonal Role
2. Decisional Role
 Interpersonal Role: This position requires communication with
individuals inside and outside the company. In the instance of Toyota,
the usage of the interpersonal role can entail establishing connections
with vendors, clients, and staff members to learn more about potential
quality problems. Toyota may better understand the needs and
expectations of its customers and suppliers by fostering good
relationships with both groups. This helps enhance quality control.
Similar to this, Toyota can develop a culture of quality and safety that
helps to avoid problems in the first place by forging strong bonds with
its personnel.

Decisional Role: Making decisions that have an impact on the

organization is the responsibility of this function. In the case of Toyota,
the usage of the decisional role can entail making strategic choices
regarding quality control, such as investing in new technology or
putting in place new procedures to stop quality problems from
developing. For instance, Toyota implemented new quality control
procedures and made investments in new safety technology after the
floor mat and accelerator pedal recalls to enhance the safety of its
vehicles (Toyota, 2011).

References:
 New York Times. (2010). Toyota's Recall Woes: Timeline of Events. Retrieved
from https://www.nytimes.com/interactive/2010/02/05/us/20100205-toyota-recall-
timeline.html
 Toyota. (2011). Annual Report 2011. Retrieved from
https://global.toyota/en/ir/library/annual/2011/pdf/ar2011_en.pdf

Task – 2
(a) Determine the issue or opportunity: Prior to making any decisions, it is
critical to clearly define the issue or opportunity. To fully comprehend the
problem, this entails compiling all pertinent data and performing a thorough
analysis on it.

Once the issue or opportunity has been recognized, it is critical to take into
account all viable choices. This entails strategizing and investigating several
options, weighing the advantages and disadvantages of each choice, and
taking into account any possible outcomes from each choice.
Utilize decision-making models: A variety of decision-making models can be
utilized to assist in the creation of sound decisions. These include the
bounded rationality, the rational decision-making paradigm, and intuitive
decision-making. Each model has its own advantages and disadvantages, so
the best model should be picked depending on the circumstances.

Collect pertinent information: Accurate decision-making requires the use of

pertinent information. To make sure all elements are taken into account, this
entails gathering and analyzing data from a variety of sources, including
internal and external data.

Assess potential hazards: It's critical to assess potential risks and

uncertainties while making decisions. In order to do this, possible risks must
be identified and methods must be developed to reduce them.

Think about the ethical ramifications: Prioritising the ethical ramifications of

each choice is crucial. This entails assessing how the choice can affect
various groups of people, such as clients, staff members, and the
neighborhood.

References:
a. Robbins, S. P., Coulter, M., & DeCenzo, D. A. (2017).
Fundamentals of management. Pearson Education Limited.
b. Harvard Business Review. (2021). Decision Making. Retrieved
from https://hbr.org/topic/decision-making
c. Investopedia. (2021). Decision Tree. Retrieved from
https://www.investopedia.com/terms/d/decision-tree.asp

(b)
Toyota Motor Corporation has as one of its strategic goals to become a
pioneer in the design and manufacture of green vehicles. This goal is
consistent with the organization's mission to support a sustainable society by
creating cutting-edge responses to environmental problems.

Toyota employs a variety of programmes that are developed and carried out
at various organizational levels to accomplish this goal. These plans consist
of:
Corporate-level plan: This is a long-term strategy that lays out the
organization's overarching objectives. The highest management of Toyota
creates the corporate-level strategy, which is concentrated on attaining the
company's strategic goals. The corporate-level plan for environmentally
friendly automobiles would involve dedicating funds and resources for the
creation and development of such vehicles.

Business-Level Plan : A business-level strategy describes how the

organization's business units will accomplish the corporate-level goals. To
realize the goal of environmentally friendly vehicles, Toyota's business-level
plan would entail specifying the precise goods and technology that will be
produced. The middle management created this strategy, which is
compatible with the corporate-level plan.

Functional-level plan: This plan describes how the various organizational

functional areas will support the business-level plan. For instance, the
production division would create a strategy to put the necessary
manufacturing procedures for the eco-friendly vehicles into practice. The
marketing division would establish a strategy to promote these automobiles
and increase demand. These plans, which are aligned with the business-
level plan, are created by the lower levels of management.

Functional-level plan: This plan describes how the various organizational

functional areas will contribute to the business-level strategy. For instance,
the production division would create a strategy to implement the
manufacturing procedures necessary for the ecologically friendly vehicles. A
strategy to raise awareness and demand for these vehicles would be
developed by the marketing division. These plans are created by lower-level
management and are coordinated with the business-level plan.

In conclusion, Toyota is able to successfully accomplish its strategic goal of

becoming a pioneer in the research and manufacturing of environmentally
friendly vehicles thanks to the usage of several types of plans. Plans are
developed and put into action at various organizational levels to make sure
that everyone is pursuing the same objective.

Task – 3
(a)
By using the Job Characteristics Theory, a manager at Toyota can foster a
productive workplace that results in employee job satisfaction. According to
this idea, job satisfaction is influenced by five fundamental job
characteristics: skill variety, task identity, task relevance, autonomy, and
feedback. Managers may boost employee motivation and happiness by
including these features in the employment they create.
To put this theory into practice, a Toyota manager could:
Increased Skill range: Give staff members the chance to learn new talents
or put a range of skills to work by rotating them between various professions
or duties.
Increase Task Identity: By clearly defining job responsibilities and
objectives, you may help employees understand how their work fits into
Toyota's overall objectives.
Increase Task Significance: Emphasize the value of employees' labor by
outlining how it contributes to Toyota's success.
Increase Autonomy : Give staff the freedom to decide for themselves and
accept responsibility for their work to increase autonomy.
Increase Feedback: Inform staff about their performance on a frequent
basis, providing both encouraging words and helpful criticism.
A manager at Toyota can establish a work environment that encourages job
satisfaction and motivation among employees by putting these methods into
practice.

Reference:
Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of
work: Test of a theory. Organizational behavior and human performance,
16(2), 250-279.

(b)
A manager at Toyota Motor Corporation can use the Tuckman's model of
group development to help with team development. The stages of group
growth that teams go through on their way to becoming a highly effective
team are described by the Tuckman's model. Four steps make up the model:
forming, storming, norming, and performing.

The manager can lead the team through each stage of implementing this
concept. The team is still in the developing phase, getting to know one
another and the task at hand. The manager can help with introductions,
promote open dialogue, and make sure that everyone in the team is aware of
their individual duties and responsibilities.
Conflicts may occur as team members establish their roles within the group
during the storming phase. By encouraging open communication, fostering
trust, and making sure that all team members feel heard and appreciated, the
manager can aid in the management of these issues.
The team members start to work out their differences and establish areas of
agreement during the norming stage. This can be strengthened by the
manager by promoting teamwork, establishing specific objectives, and
creating a sense of common purpose.
The team is extremely productive and achieves its goals with ease while it is
in the performance stage. By granting the team autonomy, offering helpful
criticism, and promoting continual learning and development, the manager
can promote this stage.
The manager at Toyota can use the Tuckman's model to assist their team in
becoming a highly effective unit, which can enhance their overall
performance and output.

Reference:
Tuckman, B. W. (1965). Developmental sequence in small groups.
Psychological Bulletin, 63(6), 384-399.

Task – 4
(a)
Given what Warren Bennis said, it's critical to recognise the differences
between managerial and leadership qualities. A manager is often in charge
of upholding the status quo, putting rules and procedures into effect, and
making sure that the organization's daily operations go without a hitch. A
leader, on the other hand, is concentrated on enacting change, encouraging
and inspiring their team, and working towards the accomplishment of long-
term goals and objectives.

There are a number of characteristics that set leaders apart from managers.
Among these qualities are:

Vision : A leader has the ability to understand the big picture and convey a
vision to their team that inspires and encourages them to work together to
achieve a common objective.
Creativity : Innovative and capable of thinking outside the box to provide
fresh concepts and solutions to issues, leaders are frequently creative.
Emotional intelligence : Understanding and controlling their own emotions
as well as those of others is a skill that leaders possess. They use this skill to
forge enduring bonds with their team.
Courage : Leaders are prepared to take chances and make challenging
choices, even in the face of difficulty.
Adaptability : Leaders may shift with the times and aren't hesitant to make
adjustments when they're called for.

Any organization, including Toyota, recognizes the value of effective

leadership since it may have a big impact on how well the company does.
Strong leadership may promote a culture of innovation and creativity and
inspire and motivate team members to strive towards the company's goals
and objectives. Additionally, good relationships with stakeholders, such as
clients, shareholders, and staff, can be developed through successful
leadership, and this can contribute to the organization's long-term success.

In general, leaders are more concerned with bringing about change and
attaining long-term success than managers are with upholding the status
quo. Leaders can stand out from managers by exhibiting qualities like vision,
creativity, emotional intelligence, courage, and adaptability. This will also aid
in developing an effective organizational culture.

(b)
At Toyota Motor Corporation, managers have access to a variety of sources
of power via which they can shape the actions of their subordinates and
accomplish organizational objectives. Referent power and expert power are
two types of power that managers at Toyota frequently deploy.

Referent power refers to a manager's capacity to shape their subordinates'

behavior based on personal traits like charisma, personality, and reputation.
Those Toyota managers who are well-liked and respected by their staff
frequently exercise this kind of influence. For instance, a boss who is viewed
by their employees as a mentor and role model will have a lot of referent
influence over them. Because it produces a great work atmosphere and
encourages employee motivation and loyalty, this may be advantageous to
Toyota.
The capacity of a management to shape their staff members' behaviour
based on their knowledge, abilities, and experience is known as "expert
power." Toyota managers with in-depth technical or functional knowledge
frequently exercise this kind of authority. A manager who is well-versed in
lean manufacturing techniques, for instance, will have a great deal of
influence over their staff. Because it enables the effective use of production
procedures and the enhancement of product quality, this could be
advantageous to Toyota.
In conclusion, managers at Toyota Motor Corporation frequently draw upon
referent power and expert power as sources of influence. These sources of
energy may be advantageous to Toyota since they may result in a productive
workplace, staff motivation, and effective production process implementation.
Conclusion
Toyota is a large, internationally active automaker with locations both
domestically and abroad. The business has taken part in a merger or
takeover in some capacity. It is a public limited company (PLC). Toyota must
oversee a sizable workforce and answer to senior managers, including a
board of directors and shareholders. The business doesn't have a monopoly
and engages in competitive business.
In Task 1, we discussed how Toyota applies five of Fayol's principles of
management, including division of work, unity of command, unity of direction,
subordination of individual interests, and centralization.
In Task 2, we identified a workplace challenge at Toyota and explored how
the use of Mintzberg's managerial roles of decisional and interpersonal roles
can aid in its resolution.
In Task 3, we discussed how a manager can create the right environment at
work which can lead to job satisfaction for staff members using the Job
Characteristics Model.
In Task 4, we explained the traits leaders can display to distinguish
themselves from managers, such as vision, charisma, and inspiration, and
the importance of effective leadership to Toyota.
Overall, Toyota's success can be ascribed to its sound management
procedures and excellent leadership, which have aided the business in
overcoming obstacles and preserving its place in a cutthroat industry. Toyota
has been successful in establishing a productive work environment that
promotes job satisfaction and team building by putting numerous
management styles and theories to use.