Toyota Case Study

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T Organizational structure and environment: case study Toyota is one of the biggest manufacturers in the world; it is a huge global company as well. Whit the world economy climate changing, Now Toyota is in the case of a sensitive period. There are some issues and challenges that company has to confront. This assignment is a case study of Toyota. The characteristic of Toyota’s structure and environment will be explored and discussed. Issues of Toyota will be connected with company’s structure and environment. The organization theory will be used to explore what issues and how did issues happen in the Toyota. The author will use some evidences and examples to support his arguments. Toyota was established by Sakichi Toyoda in 1937.…show more content…
There are several points in dimensions of organizational social structures: size, administrative, differentiation, integration, centralization, standardization, formalization, specialization. Connect these points with Toyota, differentiation, Specialization; formalization and centralization need to be analyzed. Differentiation, there are two factors of differentiation, vertical and horizontal. (Hatch & Cunliffe 2006 P106) Vertical means in the organization, there are many levels of hierarchy exist; different division of hierarchy has their own authority. Otherwise, horizontal means that different division of labor in the organization. There are several functional departments in the organization, each of these departments has a manager, the manager has authority to deal with any problem during the working and if employees have any problem then they should report to that manager. Toyota can be described a horizontal organization. Toyota believes that when people want to connect with each other then they must be standardized and direct, time is the most important factor. The company uses a card which is called kanban card. It is used to connect with each worker who working in the plant, when worker needs some parts for production, they use kanban card only when they need that parts. (Spear & Bowen 1999 P100-101) Centralization, Robbins & Barnwell (2002 P105-107) state that centralization means the decision is made

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