Case Study Toyota Spray Diagram

*  People Shape the Culture. Personalities and experiences of employees create the culture of an organization. For example, if most of the people in an organization are very outgoing, the culture is likely to be open and sociable. If many artifacts depicting the company’s history and values are in evidence throughout the company, people value their history and culture. If doors are open, and few closed door meetings are held, the culture is unguarded. If negativity about supervision and the company is widespread and complained about by employees, a culture of negativity, that is difficult to overcome, will take hold.

Toyota was thought to be the best quality car in the 1970s and 1980s but, due to Japanese competition, American car manufactures soon began to close the rankings gap. At the top of their game in 2010, Toyota had to stop manufacturing and order a large recall of automobiles. While leadership was probably considered great at the height of Toyota’s success, changes were obviously needed during the recall period and management needed to be as adaptable to those changing conditions. The only thing regarded as permanent in a market economy is change

The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,

Toyota grew at a record speed and could not keep up with the speed in which it was growing. They are a centralized company and Japan only made the decisions. This prevented the company to keep up with the safety problems. The process that Toyota external suppliers follow when improving product and making sure the product is functioning properly before shipping to Toyota needs to be improved before they release the product from their warehouse to be sent to Toyota. This problem began when the company started to rapidly grow. Toyota’s lack of communication led to the faulty gas pedal recall.

Organisational Culture is defined as what the employees perceive and how this perception creates a pattern of beliefs, values and, expectations. Organisational culture differs from organizational climate. Climate refers to more temporary attitudes, feelings and perceptions of individuals (Schneider, 1990). Culture on the other hand is an enduring, slow to change, core characteristic of organisations which is an implicit often indiscernible aspects of organisations, climate refers to more overt, observable attributes of organisations.. Organisational culture is “the way things are” in the organisation rather that people’s transitory attitudes about them

Leadership as stated by Northhouse (2010), “is a process where an individual influences a group of people to achieve a common purpose.” A leader is responsible for coordination and integration of resources through planning, organizing, coordinating, directing, and controlling to accomplish specific institutional goals and objectives (Huber, 2006). A leader’s action is influenced towards manipulating the environment, group, and achieving the institutional goals and their role is to ensure the institutional effectiveness and efficiency. Organizational culture however, is the shared values, beliefs, assumptions, and behavioral expectations that lead to decision-making (Christensen, 2006). According to Schneider (1975) as cited by Holloway (2012), Organizational climate is the formal and informal shared perceptions of organizational policies, procedures, and practices. Atkinson and Frechette (2009) further defines organizational climate as “set of measurable properties of the work environment, based on the collective perceptions of the people who work in the environment and demonstrated to influence their motivation and behavior”. Climate in CDSDP organization creates a collective unique identity, perception of the staffs that generates how task (things are done) and how to get the task done within the organization as influenced by the clear communication seen from the leaders to staffs.

Compare any two organizations and you will find there is always be cultural differences. A company’s culture “serves as a control mechanism that guides and shapes the attitudes and behavior of employees,

The organizational culture can encourage or discourage effectiveness, depending on the nature of the values, beliefs, and norms” (Ivancevich, Konopaske, & Matteson, 2011). Organizational culture can be very friendly, very task oriented, competitive or driven to be highly productive or it can be disorganized and unproductive. The culture is based on the history of the company and the atmosphere that is created and nurtured over time. This culture guides the language the employees use their loyalty and many more areas. Organizational culture is an important social characteristic that influences organizations, group, and individual behavior with in a company (Hartnell, Ou, & Kinicki, 2011). The Culture of an organization affects the way people behave, how they address customers, the atmosphere, perception, values, and beliefs. Employee’s performance and effectiveness can also be determined by an organization’s culture. Every organization has its own culture based on shared expectations, values and attitudes and its influence on individuals and groups (Ivancevich et al., 2011). People inside of an organization have a big effect on the culture because of their values, beliefs, and ideology. Companies try to hire people who have the same values as the company so that they will fit into the organization. People stay with organizations that have a

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

It has conducted a numerous number of vehicle recalls over the last few years, which affected its brand image and its financial performance. For instance, during 2009 and 2010, more than 9 million Toyota and Lexus vehicles were recalled due to the wrong floor mats installed that were interfering with the gas pedal, and the firm suspended production and sales. In 2011, 111,000 vehicles from Toyota and Lexus were again recalled due to the damage to the element of the substrate shutdown of hybrid system. And later in the year, Toyota announced to recall 181,000 vehicles due to the non ordinary noise and oil leakage, which have resulted from the bolts that were loosely attached. (MacKenzie, 2015) Beside these recalls, there have been lawsuits for vehicle failure. Toyota has a lower return on equity (13.9%) and return on asset (4.9%) than other auto companies such as Honda and Nissan. If you compare Toyota and Honda, you can tell that asset turnover ratio for Nissan is 81%, while Toyota only has 60%. (Basu, 2015) This shows that Honda is using its asset more efficiently to make profits. Lower return on equity and asset shows that Toyota is not generating much returns for its shareholders compared to other companies and inefficient use of shareholders’

Study in organizational culture began in the early 1980s. Organizational culture is “work group culture” and involves organization’s personality. Organizational culture includes shared philosophies, ideologies, beliefs, feelings, assumptions, expectations, attitudes, norms and values (Fred Lunenburg, Allan Ornstein, 2012, p. 55). Most organizational cultures include observed behavioral regularities, norms, dominant values, philosophy, rules, and feelings. Organizational cultures includes certain input such as the energy imported by organizations from the environment in the form of information, people, and materials (Fred Lunenburg, Allan Ornstein, 2012, p. 55). This input energy must guide organizational behavior toward shared goals and process. Organizations produce an output because of the input into the

Also they focus on maintenance department of operations where customer can cal staff to leave a complaints where staff must hire and listen carefully to every point by the customers so they should answer clearly and patient to service them and solve their problem. We mention that Toyota is a learning culture so Toyota gives it is employee training in how to communicate with customers and help

The ENVIRONMENT in which the organisation operates. Internally, this is often conveyed by its physical layout which can, foe example, reflect warm friendliness or cold efficiency.

Toyota is a key player in global automotive market. Its structure constitutes if various production plants in different locations and a very strong branding which helps it capture a major market share. Like other enterprises, Toyota has several strengths and weakness which makes it what it is now. Toyota heavily invests in Research and development which helps it come up reputable product line which is spread out throughout the world because of its strengthening global distribution network however its recent product recalling, loose grip in key geographic areas and wrong allocation of resources shows that even a strong brand like Toyota has its weaknesses.

It has been created also a gap between Image and Vision. After the crisis Toyota's relationship with its main stakeholders (suppliers, national and international customers, employees, dealers and investors) was not so strong as before, because it was loosing its reputation. The investors and the suppliers were complaining because recalling million of vehicles, and the customers were disappointed because they were not receiving what they expected.