Toyota is the company founded by Kiicho Toyoda in 1937 as a spinoff from his father’s company Toyota Industries to create automobiles.
Toyota is an open system because management system is different from agents and it has been the principal role in Toyota from 1950s when management emphasized the development of the production. This manifested itself as a push implementation rather than pull through team work. Specifically, it is through manufacturing Toyota leaders who put a lot of training efforts since they lead the daily work areas which directly affect quality, cost, productivity, safety and team environment.
Using the matrix structure, Toyota Company would organize functions within the multinational design common in global companies such as Procter, Gamble, Toyota and Unilever. The structure would be seen as a complex form of the matrix as it maintains products, functions and geographical areas. Toyota details approach to quality on related matters would be another measure for improving product quality (Liker 2004).
Decentralization or centralization in Toyota case is experienced when the top managements are unable to make decision to lower level employees. Also managers’ face challenges as one management and it is hard to balance the two extremes in a work place (Kreitner 2008). Decentralization has seen tremendous growth in government policies shifting authority and responsibility from the top management to lower management. Along the centralized-decentralized continuum that yields the test for organization that Toyota found has enough decentralization for creativity. Decentralization has no clear leader, no hierarchy and is an open system whereas centralization has command and control with rules.
Toyota’s best known secret weapon is its brilliant and unorthodox system of manufacturing pioneered during the mid-twentieth century. The Toyota Production System has enabled the manufacture of high quality, reliable cars at lower production cost. Toyota‘s management practices binds together employees, dealers and suppliers as well as its communication infrastructure that enable the organization to function well.
Toyota is one of the best and an old company that is well known in manufacturing high quality vehicles of different types including cars and trucks. The company has professional staffs always put to the pursuit of excellence in customer service as the top priority.
Kreitner, R. (2008). Management. New York: Cengage Learning.
Liker, K. (2004). The Toyota Way: 14 Management Principles from the World’s Greatest
Manufacturer. India: McGraw- Hill Professional.
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