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Case study on Organizational Behavior of Toyota

Category: Organizational Behavior Paper Type: Case Study Writing Reference: APA Words: 2550

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

Iwao. (2017). Revisiting the existing notion of continuous improvement (Kaizen): literature review and field research of Toyota from a perspective of innovation. Evolutionary and Institutional Economics Review, 14(1), 29-59.

Jim, & Shinde. (2015). Crisis management at Toyota. Advances in Management, 8(2), 16.

Ledbetter. (2018). The Toyota template: The plan for just-in-time and culture change beyond lean tools. Taylor & Francis.

Monden. (2019). oyota management system: Linking the seven key functional areas. Routledge.

Soliman. (2016). Hoshin Kanri: How Toyota Creates a Culture of Continuous Improvement to Achieve Lean Goals. CreateSpace.

Sosnovskikh. (2016). Toyota Motor Corporation: Organizational Culture. Philosophy Study, 6(7), 442-454.

Takeuchi. (2009). he contradictions that drive Toyota s success. Strategic direction.

Trenkner. (2016). Implementation of lean leadership. Management, 20(2), 129-142.

White, S. A., & Bock, C. (2011). BPMN 2.0 Handbook Second Edition: Methods, Concepts, Case Studies and Standards in Business Process Management Notation. Future Strategies Inc.

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