Running head: Assignment 1: Leadership Styles of NHTSA and Toyota Recalls
Leadership Styles of National Highway Traffic Safety Administration and Toyota Recalls
By Michele L. Ennis, MS February 2010
Abstract The purpose of this research is to apply theoretical approaches of leadership styles and skills to the recent events of National Highway Traffic Safety Administration (NHTSA) and the Toyota automobile recall. Following a thorough examination of the issues involved in both events, the application of Blake and Mouton (1964) theory to the leadership styles will be separately applied to the NHTSA and Toyota cases in order to
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Toyota and Lexus customers who had experienced the vehicle problems (some resulting in fatal vehicle accidents) petitioned the NHTSA on multiple occasions to conduct analyses of automobiles. Some petitions were denied by NHTSA. Others opened small investigations that alleged “safety-related defect does not exist” by both Toyota and NHTSA. In 2006 the agency claimed that they “examined over 1172 owner complaints in a population of 7 million vehicles and could find no trend” that lead to defects in selected automobiles (safteyreaserch.net, 2010, p. 3). NHTSA continued to close complaints and deny customer petitions without further investigation beyond Toyota’s inconsistent responses to NHTSA’s investigations and the vehicle fixes that were communicated through the mass media (safteyresearch.net, 2010). Toyota continued to respond to NHTSA’s investigations with no evidence of defect or communicated a solution to each vehicle problem as separate and isolated issues. Meanwhile, NHTSA continued to conclude that, “a defect trend has not been identified at this time and further use of agency resources does not appear warranted” (safetyreasearch.net, 2010, p.3). In 2004 NHTSA stated that “the agency will take further action if warranted by the
In his analysis of companies that are able to achieve greatness, James Collins identifies the role of a “Level 5” leader as instrumental in the transformation. Collins identifies this type of leader as an individual “who blends extreme personal humility with intense professional will” (21). While they are willful and fearless, these leaders are also modest and humble. The leader is less interested in personal glorification and is more interested in the performance of the company. They are intensely driven towards building a successful company that is capable of continuing its success in their absence. In his analysis of companies, he identified that all good companies that became great had Level 5 leaders at the help when they transformed. The leaders are interested in building up their successors such that the company continues on a successful path. This is in contrast with leaders who are interested in the short-term success of a company during their tenure. Level 5 leaders are not concerned “with their own reputation for personal greatness” (Collins 26). Rather, they are willing to share credit for their success with colleagues and successors. Under egocentric leaders, Collins noted that companies would achieve particularly strong growth but they would fall apart immediately after the leader’s exit. However, Level 5 leaders seek to obtain consistent results by finding the best people and creating a
These are all types of situations where I MUST take an autocratic style of leadership or it could result in being very damaging for all parties concerned including the business.
Casse, P. (2014c). The new drivers of leadership. Training Journal, p. 27. Retrieved from academicguides.walden.edu/library
Toyota has hit the headlines over the years over the defects in several of their models which has sent it on a public relations and safety campaigns relating to its vehicles. Notably is the Toyota safety campaign in North America for certain models of Toyota as well as Lexus brands concerning the floor mat entrapment of accelerator pedals, later on it extended to other models in November 2009.
It is important that Toyota improve their communication and process of evaluating their parts because if they don’t they risk losing customers and market shares. An improved process would also give them reassures that this issue does not arise again. According to Porter (1996) “Delivering greater value allows a company to charge a higher average unit price; greater efficiency result in lower average unit cost” (p.62). Toyota needs to focus more on quality than quantity. After quality is critiqued then they can continue to grow at a lower rate. If Toyota gives their North American companies power to make decisions than it would be a huge improvement to the companies and less risk of safety issues.
One of the main errors leading to this situation was the fact that ChassisCo didn’t follow on the Toyota principle of giving the bad news up front. Toyota stated with every supplier that they expected a swift alert in case any risks were to arise, in order to tackle root causes and diminish the problems right away. On the same line, Toyota knew that the manufacturing process for the
Research on leadership is a subject that has been approached in many different ways. Theories on leadership can be classified according to the type of variable that is emphasized the most. Three types of variables relevant to these theories include (1) characteristics of leaders, (2) characteristics of followers, and (3) characteristics of the situation (Yuri, G., 2010). In the textbook Leadership in Organizations, Yuri, G. classifies these theories into the following five approaches: (1) the trait approach, (2) the behavior approach, (3) the power-influence approach, (4) the situational approach, and (5) the integrative approach. This paper briefly discusses the situational approach of studying leadership.
The topic of leadership evokes curiosity about our leaders and their approaches in decision making, leadership styles and the effectiveness of their leadership. At time leaders are critiqued for their actions or views on different business affairs. In today’s working environment leaders set the tone, vision, and goals of any organization. Leadership has a huge impact on the culture of an organization and how people communicate within the organization (Northouse, 2009). The actions of leaders should inspire and positively impact their followers. The approach of leaders in handling adversities highlights many features of their character.
As if this weren’t enough, quality problems mounted week after week. Only months later in February 2010, the NHTSA revealed that it had received claims citing another life threatening defect in the break system for the Toyota Prius. More than 400 thousand Prius recalls resulted. In April of 2010, customers reported handling issues in the Lexus brand which resulted in another recall of 9,400 Lexus cars and a “Don’t Buy: Safety Risk” rating from Consumer Reports. Also in April, the company voluntarily recalled Siennas to address a problem with corrosion on a spare tire cable. Later that month, Toyota voluntarily recalled 2003 Sequoia SUVs to improve the stability controls. 2010 Tacomas were also recalled for defective front drive shafts. Once the quality icon, Toyota had hit a really low point; so low that credit
There is no consensus that has been reached regarding this controversy, but many theories are centered on it. Chronologically, popular leadership theories include the great man theory, trait theory, behavioral theories, role theory, participative leadership, situational leadership, contingency theories, transactional leadership, and transformational leadership. Each of these theories presents a unique perspective of what comprises leadership. The main focus of this research paper is, however, the trait theory (Bass & Stogdill, 1990).
Due to Toyota’s financial greed and unethical practice, vehicles were wrongly equipped with faulty brakes, sticking pedals and poor quality door looks, which caused death of many Toyota customers and hundreds of dollars in damages. When a company like Toyota acts in an ethically questionable manner, it causes the company to lose customers and develop a negative reputation. Customer tend to lose faith in the company and have to look for better service
In the year 2000, the Transportation Recall Enhancement Accountability and Documentation (TREAD) Act was passed, putting pressure on the National Highway Traffic Safety Administration (NHTSA) to gather data from parts manufacturers to identify "potential safety related defects." In 2001, an internal GM report identifies a problem between the ignition switch and the vehicle's anti-theft system. While the company had the opportunity to disclose this information to the public, they instead opted for a quiet re-design
Over the years, scholars and management theorists have cultivated several leadership styles that they have encouraged people to apply and try to implement. However, most of these theories have shown various short comings. Typically, none of these styles has proven to work best in diverse situations. In the late 1960’s, the Situational Leadership Model was developed. In this paper, I will discuss the details about the situational leadership model. In detail, the paper begins with a defined introduction of what the situational leadership model is about and an interpretation of its origination. An outline of the model will follow after which a discussion about the benefits and drawbacks of this model will shortly follow.
The purpose of this report is to examine if the reasoning behind well-known car manufacturer, Toyota’s loss of revenue and leading market position is alone as a result of extensive product recalls following a fatal crash of a Lexus ES 350 on August 28th 2009. The journal article, “Toyota Crisis: Management Issue?” (Yuanyuan Feng 2010) provides an outline of the key factors that triggered the 2009 Toyota crisis, and explores whether the fall in the company’s returns by 19% were caused purely as a result of the recall and safety concerns, or something much deeper.
One potential threat for Volkswagen is that Toyota may respond strategically by also cutting its prices. However, given Toyota’s quality problems over the past year, they will not be able to lower prices, as this possibly would create the perception of lower quality.. First and foremost, Toyota needs to ensure it handles its quality problems to its customers’ satisfaction. The auto maker needs to ensure the public perception is that Toyota is being upfront, honest, and responsible in dealing with recalls and the