Toyota Organizational Culture

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Different and many definitions about “organizational culture” have been given since managers started to use this term at late of 80s , when it became widely known.
The term of organizational culture is defined as the whole of ideas, company mission, values, expectations, goals and behavioral theories or spiritual parameters shared by a group of people or members of the organization.
According to Edgar Schein (2006) “organizational culture is a structure of common assumptions that are distributed among all members of the group to solve internal and external problems of an organization and to share their knowledge with new members.”
But why the culture is important for a company?
As culture is not the only factor determining the success
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Looking at the profile of Toyota we observe that Toyota culture is a reflection of Japanese culture. Toyota gives very importance to: continuous improvement and learning, respect for people and mutual trust, teamwork and long-term orientation (Elsey and Fujiwara 2000). These principles help the company's strategic growth, to get into international markets and to produce high-quality and low-cost vehicles.
Planning the new structural changes Toyota wants to review the organizational culture and to create a company built around product-based organizations, rather than function-based organizations in order to serve the basic principles of the company “making even better cars” and “developing a talented
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- Better customer service.
Toyota Motor Corporation starting from April 16 of 2016, has unveiled a new management structure with which it aims to create a product-based rather than function-based organization in order to streamline work processes on a company-wide basis. TMC is confident that significant value can be added through this new management structure, in which nine product- and region-based business units will compete with and learn from one another, while operating alongside TMC’s Head Office. When a large organization such as TMC produces products for different markets, this structure works because each department is an autonomous group. For that purpose TMC will create seven product- based in -house companies and will be responsible for short- to mid-term product strategy and development. That will give a lot of control over operations and will not dependent on another, separate functional area to get things done. Also TMC’s existing region-based business units, Toyota Nº 1 and Nº 2, will serve to check and balance the operations of the new product-based in-house
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