Management and operation are major aspects of business organisation. Coordination between management and operations of business organisation ensure the success of organisation.
Efficiency and effectiveness of operations in an business organisation is purely depends on action and strategies of management. This report exhibits role of managers and leaders in the organization which assists in enhancement of efficiency and effectiveness of various operations and task within the entity. This report describes in the context of Toyota Plc, a Japanese company dealing in the auto-mobile sector, differences between management and leadership, key operational functions, key operational approaches, impact of external business environment factors and strengths and weaknesses of different
1. Overview and management structure of company:
Toyota Motor Corporation is Japanese company and by volume it is world’s largest auto maker. Toyota is mainly engaged in manufacturing and sell of vehicles and motor parts in various countries. Presently company is operating its business globally with approx 53 overseas manufacturing companies in 28 countries and regions selling vehicle in approx more than 170 countries and regions.
Toyota has large range of activities related with manufacturing and sell of vehicle, to manage all these different segments divided as per activities company follows divisional management structure. Toyota also has a centralized global chain and headquarters of company in Japan is responsible for all the major decisions. Generally divisions are not allowed to
communicate with each other and significant communications are routed through headquarters which creates a systematic centralised control over the all divisions and segments.
2. Definition and roles of both managers and leaders, highlighting the differences between management and leadership:
Managers: Managers are individuals who are responsible for supervising, controlling and managing other staff or individual projects in an business organisation. Managers are the persons in an organization who design and manage the work of an organization in the direction of the pre-determined goals and objective of the company. In order to accomplish a particular task and objectives efficiently, Managers farms strategies and policies and to manage the workings of staff and employees, a systematic schedule is prepared by managers in Toyota. Following are the major role of managers, as follows:
- In Toyota, managers plays a significant role in determination of objectives and goals of the company while considering recent market trends, scenario and competitive advantages & disadvantages.
- Managers acts a chain of communication of policies and direction between employees and top management.
- Managers develops new approaches, ideas and initiates new process for enhancement of performance of business organisation.
- Managers promotes the employee friendly environment in order to increase capabilities of employees in Toyota.
Leaders: Leaders are individual who develops a long term visions and motivate others in business organisation to achieve them while building a team spirit. The main objective of leaders in Toyota is to lead and encourages employees in order to enhance efficiency and productivity of their performance. Following are the significant roles of leaders, as follows:
- Leaders have a vital role in motivating individuals in organisation to accomplish goals and objectives determined by organisation.
- Leaders gives directions in order to communicate and influence individuals in organisation to do activities and tasks according to specific policies of organisation.
- In Toyota Leaders solve out the issues or problems of individuals and obtain feedback of customers to address them.
Difference between management and leadership:
Leadership refers to competence of leader to inspire individuals in organisation in order to enhance their performance, capabilities and efforts to achieve objectives.
Management refers to set of activities relating to planning, coordinating, managing and directing of business in order to achieve particular objectives.
In leadership main role of leader is to encourage and motivate individuals in organisation to achieve desired goals and objectives.
In Management process primary role of managers is to organise activities in way to enhance performance of organisation.
Main focus is towards motivating individuals.
Main focus is towards making coordination among different activities in Toyota.
Therefore individuals engaged in leadership and management of Toyota should continuously try to achieve objectives and goals of company and put their maximum efforts towards this so that a sustainability in growth and performance can be achieved.
3. Analysis of the different roles of management and leadership in application to different organisational situations
Different roles of management and leadership are helpful of organisation to face different organisational situations that creates difficulties in day to day business of organisation. Following points will helps to analyse different roles of management and leadership in application to different organisational situations in the context of Toyota, as follows:
- In case of strike of labours in Toyota, a situation of monetary loss due to delayed service to clients or to lost production time. In this situation management can organise supply of vehicles and spare parts in a systematic way to avoid any monetary loss and leader will motivates and encourage labours to break strike or provides a way to solve out issues of labours.
- One major situation may arise in company is decreasing sales of a particular product or quality concerns about a particular product. In this situation management can conduct survey and analysis to identify main reason for decreasing sales or poor quality and organise activities or develop strategy to short out these issues, on other hand leaders by collecting feedback of customers and workers, provides helps to management and ensure them to solve out these identified issues.
- In Toyota one significant situation appeared that efficiency of production is below the standards. In this situation management by creating scheduled task and activities or by defining responsibilities of individual in organisation can increase the efficiency of production and leaders by initiating different appraisal programs can increase the efficiency of production in Toyota.
4. Strengths and weaknesses of different approaches to leadership and management:
Following are the different approaches to leadership and management along with their strengths and weaknesses, as follows:
This theory of leadership refers that manager or leader within an organisation should adjust their style of management and leadership to achieve the development level of the followers he is trying to influence. In this context, in Toyota sometimes managers and leaders modifies their styles to maintain sustainability. This is an adaptive style of leadership.
- This approach develops a employee friendly environment that enhances capabilities and efficiency of performance of employees in Toyota.
- Change in style of leadership and management ensures efficient communication with employee in order to manage activities in Toyota while marinating satisfaction level of employees.
- Too much focus is on employee comfort level which some times creates barriers to achieve short term objectives of organisation.
- In practical life it is difficult to define how to achieve the development level by changing style and which style is appropriate accordingly.
This approach emphasises on creation of environment in which individual at all level can accomplish their task effectively in different situations.
- This approach assists in accomplishment of goals of employees as well as entity's goals.
- It provides consistency in decision making in a systematic way that no individual get preferential treatment in organisation.
- Segregation of duties and responsibilities are difficult which is unfavourable for productivity.
- This approach is very time consuming and not suitable for small organisation.
This theory requires that leaders or managers should change their leadership and management style according to contingent events or happening within the organisation. This approach is also followed in Toyota to short out some major issues which arises due to certain events.
- This approach emphasises on volatile nature of business organisation. In Toyota managers develops a structure to get solutions to a particular problem rather than adopting a rigid strategy.
- This approach is very adaptive because it allows organizations to remain flexible and covert or modify their policies and strategies according to the changes.
- This is very complex and costly approach in practical life and do not provides any specific solution for particular problem.
- This theory fails to explain which is more favourable situation for leader to change their style.
5. Conclusions on how managers and leaders have made an impact on the organisation and recommendations for future improvements:
Conclusion : From above discussion it has been concluded that Management and Leadership is vital aspect of an organisation and, leaders and managers always tries to attain objectives of organisation whether long term or short term in accordance with their roles in organisation. With the help of different approaches of leadership and management are able to face different organisational problems. But consideration of strengths and weaknesses of different approaches is necessary to apply these approaches efficiently.
Recommendation for future improvements:
- Activities should be arranged in efficient manner to enhance the performance while considering employees capabilities.
- Management and leadership style should be changed with change in circumstances and environment of organisation.
- Innovative process and effective policies should be framed to encounter exceptional circumstances.
1. key operations of Toyota company
Introduction: - In the Toyota company, there are various operation perform by the organisation such as manufacturing car and designing engines. This company have huge brand name in the car manufacturing market. These operations done by according to customer needs because Toyota introduce it's product after heavy research on consumer's demand. Company recruit highly skilled people for the satisfaction of their product users. Employees know their role and responsibility very well in the organisation and they also perform good. Because of the dedication, company able to meet their objectives and goals.
Key operational functions: - Toyota company perform these operational functions such as planning, organising, directing and controlling. These function will help the organisation to meet their standards. Manager of the company make strategies to perform well in the organisation and achieve it's goals.
2. Explain each key operations and identify the role and responsibility of managers
- Planning:- Planning is the base of any operations because without this nothing will happen in efficient way. Managers of the organisation prepare plan for achieving goals and objective. In the Toyota company, manager have responsibility to make strategies which is used for the production and future growth.
- Organising:- In the company, manager will ensure that the organisational performance meet with company's objective and goals. Manager will control the all activities related to the manufacturing so the production is not disturb by any factor. It also responsible for the employees and check that they work in effective way. These actions will improve the productivity of Toyota and efficiency of workers.
- Directing:- Manager plays a big role in the Toyota company to direct or lead employees. It provide guidance to the employee regarding their work. If any issues create in the organisation than manger will instruct them and try to resolve the problem. So guidance of manager is very important and responsible work in the Toyota.
- Controlling:- In the organisation, manager have full responsibility to control or check the all activities related to the production. Manage the employees performance which helps in the organisation to enhance productivity. Toyota company's managers control all the actions and activities related manufacturing or workers.
3. Key operational approaches and values
In the Toyota company some approaches follow by the managers for the production of car which enhance the productivity and efficiency as well. Just in time, total quality management, lean production and six sigma these are the approaches follow by the company.
- Just in time:- Just in time is the method which is used for the identification of inventory requirement at the time of production. In this approach organisation order the material when there is a requirement of production. Toyota follow this approach in the organisation that is reduce the storage cost of material. This method used by the mangers to reduce the expenses which is done by company on warehouse. Toyota's manager will easily forecast the demand of material on the basis of past production level. This approach is beneficial for the auto manufacturing company that why Toyota follow this approach.
- Lean production:- This approach focus on cost cutting which means try to reduce the wastage of material during car manufacturing process. It applicable on every level of production from manufacturing to distribution. It's main aim to reduce the cost of each unit by avoiding wastage of material. Toyota company's manager introduce the program for their employees. Which guide them how to produce quality product with the low wastage of material. Manager can control the all activities which is done by employees and monitor their role and responsibility. By following lean production approach leader ensure that the wastage of inventory will be low and produce quality products for the customers.
- Total quality management (TQM):- This approach specially focus on quality of product and the continuously improvement of quality and provide better services to the costumers. TQM set up for the separate organisation or a group of standards for the International Organisation Standardization (IOS) of the series of IOS 9000. Manager of Toyota company set the standard for the quality and it is maintain by the every employee of the organisation. This approach can increase the market value of the firm which helps in generating more revenue.
- Six sigma:- This approach eliminate the defect from manufacturing process which can lead the quality product at a minimum cost. Manager of the Toyota company use this method to reduce manufacturing cost and they provide proper training to their employees. Which is very helpful for the organisation and leader will ensure that, the training is provided to the all workers.
4. Impact of external factors on decision making process of manager and leader
External factors effect the manager's decision making process. For this, Toyota company using PESTEL analysis to know how they effect the organisation. In this situation, how manager and leader will take decision. Because of this analysis company can find out their strength and weakness.
- Political factor:- Political stability will effect the Toyota company and manager build strategies for using this impact in a positive way. Free trade is the opportunity for the company so manager can take decision of market penetration. Government also provide the support for making eco-friendly products.
- Economic factor:- Toyota company have good opportunity to export their products because it has weaker currency in comparison to US. The continuous growth of U.S economy is best place for the market expansion and promote their products in the developing country. Manager will consider these points and take decision according to it.
- Social factor: - This company have capacity as well as ability to satisfy the consumers through introducing new hybrid and electric cars. Toyota need to fill the gap of wealth because electric vehicle need enough amount of investment which directly effect the cost. So there is a chances of less demand because of it's price. Manager need to analyse these things and build there plan according to social factors.
- Technical factor:- This factors impact a lot because Toyota have technological business. Company have opportunity to introduce e-commerce and enhance the trend of mobile technology. Mobile app increase the customers engagement and loyalty towards their products. This factor increase the chances of cybercrime which is thread for the Toyota. So manger and leader will review all the positive and negative aspect of this factor and take decision.
- Environmental factor:- PESTEL analysis show their concern regarding environmental factor because it also effect the Toyota company. Company have opportunity to introduce eco friendly products with higher efficiency of fuel. Manager and leader of the organisation review these opportunities and make strategies.
- Legal factor:- Legal factor is the biggest factor which influence the organisation because it includes the environmental and consumer laws. Also protect the intellectual property right because government working for the protection of this. Toyota have capacity to build eco friendly products which satisfy the condition of environmental law. Leader of the company analyse these factors and take positive decision on the basis of current scenario.
5. Management and leadership approaches
Toyota company's manger follow the various management and leadership approach which increase the performance and productivity of the organisation. It includes administrative and trait leadership approach.
- Administrative approach of management: - It is an important approach for the Toyota company because it deals with formal organisational structure. There is certain fundamental principle which help them to achieve business objectives. Company focuses on important functions such as planning, organising,coordinating and controlling.
- Trait leadership approach: - According to this approach, company hire those human resources who are highly skilled and have effective leadership style. Toyota company need to find these type of people because organisation can't provide ant training to make better leader for the company. That's why, this approach will be very effective for the business.
6. Conclusion and recommendations for the future improvement
PESTEL analysis is the best for the Toyota company to identify the opportunities as well as thread for the organisation. It provide proper information regarding which factor effect the company most and in what manner such as positive and negative. Key operational functional help the Toyota's manager to improve their productivity, efficiency and effectiveness. Also help them to achieve business objectives and goals.
Recommendation for the future improvement: -
- Manager and leader of the Toyota company need to analyse that, how environmental and political factor effect the company in the positive way.
- Company need to hire human resources those have leadership traits because it increase the productivity as well as efficiency of the organisation.
- If Toyota company follow the Total quality of management approach than they produce high quality products without any wastage.
- Follow just in time approach which reduce the cost of storage and help them to reduce wastage of material.
From the discussion done in this report, it has been concluded that management and operation are interrelated and, managers and leaders are key personnel who controls all activities concerned with management and operation. Understanding of difference between roles of managers and leaders is necessary in order to avoid any difficulties in defining objectives of organisation. Consideration of various approaches of leadership and management are required to apply different style of leadership and management that assists in accomplishment of goals within scheduled period.
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