Table of Contents
Introduction. 2
Theoretical Framework. 2
Toyota’s Best practices and its Impacts. 3
Motivational Theory implementation. 4
Team development 4
Leadership style. 5
Conflict Management at Toyota. 5
Toyota’s Strengths. 6
Conclusion. 7
References
Introduction of Organizational
Behavior of Toyota
The organization is a group who are aiming to reach a
common aim. Organisational behaviour is the study of the behaviour of these
people. In this study, extensive tolls are utilised for analysis purposes.
While analysing the organisational behaviour, the focus is both on individual behaviour
and group behaviour. The understanding and modifying human behaviours in an organisation
have become a science and control over it is essential for becoming
successful. When there is a good grasp
on Organisational Behaviour, then human Behaviour can be improved and utilised functionally,
and this will also improve the total organisational climate positively.
Understanding of organisational Behaviour tends to promote the process of
knowing human behaviour and how changes in this behaviour affect the goals,
values, roles and interests of different organisational members during their
working for the organisation over time. Organisational behaviour aims at
achieving employee satisfaction. (Iwao, 2017)
In this study, we will analyse the organisational Behaviour
of Toyota and the best practices that made them successful today. Toyota motors
set foot in the industry in 1937 as a separate entity from Toyoda automobiles. Since then it has evolved
into the motor giant that it is today. This giant motor company faced only one
strike in the 1950s, but Toyota coped up with that situation by developing a
perfect employee and management system. The details of Toyota’s best practices
and decisions and organisational behaviour are stated below. (Monden, 2019)
Theoretical Framework of Organizational
Behavior of Toyota
Toyota has always been an analytical company as the
cultural value shifted Toyota focused on managing these changes and started
giving more importance to creativity and learning from it. Toyota motor has
shown through history, their ability to think according to the times. Toyota
was always able to foresee the growth in the future, and this has enabled them
to become the top competitor in motors in North America. Toyota has always kept
a close eye on the activities and performance of their employees after the
strike in 1950 Toyota implemented the motivational theory quite subtly as they
started separating the factors that were a reason for satisfaction for their
employees from the factors that were causing dissatisfaction of their
employees. This gave a significant boost to Toyota’s business both locally and
in the overseas. Toyota knew that individual cooperation in the organisation is
vital for the organisational growth, so they focused on developing efficient
teams and task were given to teams rather than individuals, this increased the
output performance and also boosted creativity. As far as the leadership style
is considered, Toyota uses a democratic leadership style in its leading
operations. Nowt just the leaders but the employees are also involved in
decision making. Toyota has always excellently managed the conflict that arises
and prevented it from becoming toxic, and only healthy conflict is promoted. In
the upcoming study, Toyota’s best practises will also be reviewed.
Toyota’s Best practices and its Impacts
Toyota’s strategy has always been to focus on steady
and long-term growth by developing the business activities that have a closer
impact on the society, the global economy and global environment. Toyota
believes that this sort of approach will benefit both Toyota and its consumers.
Toyota has focused on sharing these benefits of its development with everyone,
including the consumers, employees, stakeholders and trading partners. Toyota
aims to further its growth to reinforce its roots and the organisation as a
whole. Since its formation in 1937, Toyota has improved the society and living
standards of the people by providing quality automobiles. Toyota in the modern
world is one of the top three motor manufacturers globally with stable sales
and growth models. Toyota’s primary philosophy is to grow in harmony with the
peoples that work for Toyota and the people that Toyota works for. People all
around the globe have developed diverse needs when it comes to automobiles some
are focusing on environment preservation while others are looking for safety
and comfort. Finally, some people look further than value-added services.
Toyota mentioned its primary practices that improve their growth as:
·
Investing in technological growth for
environmental safety and intercommunication.
·
Increasing the pace of globalisation.
·
Bringing cost-effective products in the
market to improve the standard and increase the competition.
·
While focusing on growth, Toyota wants to
enhance its expansion globally.
Toyota back in 1957, started implementing a newer
formula for organisational management and behaviour. They started hiring
applicants as individuals and not employees and emphasising that every
individual possesses different strengths and talents. Then Toyota exploited,
and they boosted the talents of as many individuals as it could in the areas of
their specialities, this created exponential growth opportunities in the organisation.
When individuals in an organisation grow then the organisation itself grows
marginally. Toyota boasts its moral values of integrity, desire and creativity
across the globe (Soliman, 2016). This statement is backed
up by their strong policies and practices. Toyota’s distinct and diffused
employment approach gives rise to innovation and new ideas with which Toyota
can stay at the top of the motor industry. Another best Toyota hiring practises
to hire the best and the most talented employees they could find, and they are
always keen on forming a new partnership which could benefit the society and
the organisation. This kind of behaviour gives the employees and the consumers
the impression that Toyota prefers excellence at all levels of operations. (Jim &
Shinde, 2015)
Motivational Theory implementation
Toyota successfully implemented the two-factor
motivation theory to increase its employee productivity. Toyota separated the
factors that motivated their employees in the work environment from the factors
that demotivated them and devised policies to act on them accordingly. Toyota
started by increasing workplace environment quality. Toyota kept their standards
up to par with the global standards and made the work environment productive of
its employees. This improved the morale of the employees, and they were left
with no complaints regarding their work environment. Toyota also removed the
dissatisfaction of their employees by providing them with appropriate salaries,
job guarantees, diffusing power of authority and respecting everyone. To
motivate the employees to perform their best Toyota created rewards for
achievements, giving individuals the appropriate amount of responsibility and
training the employees for improvement. All these changes resulted in a long-term
positive effect on organisational behaviour. Because these improvements brought
in more significant investors and motivated employees. Toyota can create and
actualize new advancements, extricate values, deal with the expenses of
structure, method of cooperation, and deliberate observational portrayal its
supply chain and suppliers. All things considered, the supply arranges faces
confinements because of size and logical data in regards to the production
network of the organization. Toyota inventory network incorporates immediate
and circuitous providers. Toyota needs to focus on supply chain and suppliers
with a specific end goal to enhance the proficiency of the organization and to
enhance the yield of the organization. Supply chain organize and can
incorporates various particular firms, measure data, restrictions with respect
to the relevant data blinkered perspective of interests and supply systems.
Team development of Organizational
Behavior of Toyota
Toyota’s
dealing in big projects required teams to do tasks and give output. Even on the
executive level teamwork was vital as, without proper teamwork development, the
company would have disintegrated. Toyota, like another successful business,
implemented the five stages of team development. They started by forming a team
and then nurtured this team to reach the current pinnacle of success and
entered the performing stage. Because the Toyota management was acting as a team,
they become associated with norms and behaviours of each other’s, and this
reduced the conflicts. Team development on the employee level resulted in significant
achievements and innovations. As it is discussed earlier that Toyota focuses on
hiring the best talents. Thus, the team development practices gave a chance to
those talents to come together and achieve higher goals and create innovative
projects. These norms are only useful in growing and managing the employee’s
behaviour when they are accepted and appreciated by the team members. So, Toyota
knew that no matter how good a policy is if it is not accepted by its employees,
it is useless; therefore, they involved their employees in the decision-making
process. (Ledbetter, 2018) Toyota car
organization needs to apply the technique of providers as Toyota isn't giving
basic rewards yet gives security and guarantees long haul association with the
nearby providers and sellers. The organization can take control of the
providers. The supply chain management or inventory network of Toyota needs to
enhance provider preferred standpoint and requirements to dispatch open doors
for making tremendous benefits (White & Bock, 2011).
Leadership style of Organizational
Behavior of Toyota
Toyota leadership has
always been a democratic one. Which means that the employees and lower
management were always invited to weigh in the decisions of the upper
management. This style of leadership encouraged the Toyota employees in making
responsible decisions. The main advantage of this leadership style was that
everyone at Toyota was encouraged to take part in the decisions. The advantages
of this leadership style provided for Toyota are many. No matter how capable a leader
is sometimes there are complex problems which a single person cannot solve, and
Democratic style helped Toyota in such situation. It gives the employees a
sense of closeness and acceptance. This leadership style benefited Toyota as
anyone could practise this methodology and could easily succeed. This also
helped to increase the knowledge of Toyota’s employees and created a trust bond
between the executives and the employees. (Trenkner, 2016). Toyota supply chain
process or organization has cooperative attitude in a market; at that point
there will be the expansion in deals. As concentrated on the issue of offers it
could be foreseen that Toyota confronted the quantitative issues, which is
related with the subjective issues as a result of offers diminishes.
Conflict Management at Toyota
of Organizational Behavior of Toyota
Survival of the fittest and the success of a motor
giant both need conflict. This is true both in the wild and in the business
world. The conflict did not prove just a good thing for Toyota, but it acted as
the critical ingredient for Toyota’s success. This effective conflict
management gave rise to Toyota’s production line, which was so cost-effective
that it alone was able to make Toyota one of the worlds top motor manufacturer.
The Toyota leadership has always been in the family, and there has always been
a conflict between Toyota and Toyota. However, this conflict was managed in the
right way, and it led to many benefits for the company. It resulted in reduced
costs because positive competition enhanced the decision-making process. It
also increased productivity because of a more cohesive workforce. It also encouraged
the top performers to keep performing at their peak and new performers to
compete with them for those positions, and the organisation was benefiting from
this hugely. Effective management of conflict reduced aggressiveness and
negativity in the workplace while improving performance at the individual and
organisational level. (Takeuchi, 2009)
Toyota’s Strengths of Organizational
Behavior of Toyota
Toyota CEO once said that making things is about
making people (Sosnovskikh, 2016). Some of the best
practise that helped Toyota reach their current position include:
·
Independence of Employees: The employees
at Toyota are given freedom in undertaking their tasks while maintaining
minimal supervision. This enables the employees to be innovative and to work
without any influences. Making mistakes is considered a learning process and no
harsh action is taken by the supervisors.
·
Communication: is also fluent in the Toyota
work environment. Communicating between the employees and the supervisors lead
to the motivation of the employees. The management of Toyota arranges
communication forums between the employees of all the levels and try their best
to sort out all the issues.
·
Teamwork: Teamwork is another essential component of Toyota’s
organisational behaviour. Toyota is involved in highly technical operations,
and innovation is essential in making the process convenient and cost-effective.
Toyota achieves this through promoting teamwork. Employees are divided into
teams based on their roles and are then set to work without any influence.
·
Motivation: Workforce is one of the most crucial
resources of any organisation and keeping it in good shape means keeping it
motivated. Motivation is high in Toyota, as the employees are involved in
communication and decision making.
·
Other excellent practices that promote
growth by promoting organisational behaviour at Toyota include:
v Informing
the employees of what their duties are and what is expected from them by
assigning them a leader.
v Engaging
the employees in giving opinions about making changes.
v Empowering
the employees to improve and make modifications where improvement is needed.
v Making
employees understand that stability and steadiness are more critical than sudden
growth sprints.
v Educating
the employees on the importance of culture.
Conclusion of Organizational
Behavior of Toyota
Toyota is one of the top automobile manufacturers in North
America. They have strong moral values, and they use modern business practises
to ensure their growth. Their focus has been on cost-effectiveness and growth.
Toyota uses a varied employment method that provides them with new talents,
therefore, ensuring future ideas and innovation. Toyota believes in upholding
ethics, both in business and society. Toyota prioritises the motivation of
their employees and their wellbeing by providing excellent work environments.
They promote communication among the employees at all levels. Toyota supply
chain process need to focus on the past deals information can likewise
comprehend the response of the clients towards once again display. Also, the
accomplished administration and store network can choose the issue by taking
choice as indicated by their own particular involvement in the market to
appraise the stock for creation. The employees are allowed to work with
negligible influence. The leaders maintain a democratic environment providing
all to cite an opinion and improve the decision making of the organisation. Team
development and teamwork are promoted at all levels. Healthy conflict is also a
strong suit of the company. For their success, the company must carry on these
practices and keep evolving with the time.
References
of Organizational Behavior of Toyota
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