Toyota Organizational Culture

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TOYOTA ORGANIZATIONAL CULTURE Toyota represents one of the top automobile manufacturers offices in North America to work for. Toyota boasts that their, "integrity, passion, and innovation extend beyond vehicle manufacturing." 7 This bold statement is backed by a strong policies and procedures that they have been put in place. The Toyota Corporation forward thinking. For Toyota to foresee the growth that is to occur ahead, they must begin by looking at their past. Toyota has established itself as a top competitor in the North American and Global automotive market place by practicing the formula that started it all back in 1957. Hiring people not as employees but as individuals has set bar for corporate achievement. Understanding that people possess different strengths and abilities have benefited the individual through exploiting as many possible talents in one area, thus creating greater opportunity for growth within the corporation. Toyota's diversified employment approach births the new ideas and future concepts that keep emerging on the frontier of the automotive industry, thereby maintaining Canadian and Global industry leadership. One of Toyota's top ten official business strategies is to recruit the best and brightest, thereby creating new opportunities for partnerships. These key strategies give the perception to the consumer and employee that Toyota holds a "reputation for excellence" 8 on all levels of operation. Toyota believes in being ethical in the business sense as well as the social sense. Ethics begin at the core of the company and work their way out. Top management believes in diversification and through that diversification representing many faces at Toyota i.e. minorities. No stereotypical assumptions or prejudices are apparent at Toyota, just the selection of talented individuals who posses leadership and innovation. Socially, Toyota portrays as positive corporate image. Toyota quotes, "We also believe in helping people improve the quality of life in their communities. We work with organizations, schools, universities, and other businesses to support programs that help make our world a better place." 9 These ideals are practiced across the country and internationally.

Transcript of Toyota Organizational Culture

Page 1: Toyota Organizational Culture

TOYOTA ORGANIZATIONAL CULTURE 

Toyota represents one of the top automobile manufacturers offices in North America to work for. Toyota boasts that their, "integrity, passion, and innovation extend beyond vehicle manufacturing."7This bold statement is backed by a strong policies and procedures that they have been put in place.

The Toyota Corporation forward thinking. For Toyota to foresee the growth that is to occur ahead, they must begin by looking at their past. Toyota has established itself as a top competitor in the North American and Global automotive market place by practicing the formula that started it all back in 1957. Hiring people not as employees but as individuals has set bar for corporate achievement. Understanding that people possess different strengths and abilities have benefited the individual through exploiting as many possible talents in one area, thus creating greater opportunity for growth within the corporation.

Toyota's diversified employment approach births the new ideas and future concepts that keep emerging on the frontier of the automotive industry, thereby maintaining Canadian and Global industry leadership. One of Toyota's top ten official business strategies is to recruit the best and brightest, thereby creating new opportunities for partnerships. These key strategies give the perception to the consumer and employee that Toyota holds a "reputation for excellence"8 on all levels of operation.

Toyota believes in being ethical in the business sense as well as the social sense. Ethics begin at the core of the company and work their way out. Top management believes in diversification and through that diversification representing many faces at Toyota i.e. minorities. No stereotypical assumptions or prejudices are apparent at Toyota, just the selection of talented individuals who posses leadership and innovation.

Socially, Toyota portrays as positive corporate image. Toyota quotes, "We also believe in helping people improve the quality of life in their communities. We work with organizations, schools, universities, and other businesses to support programs that help make our world a better place."9These ideals are practiced across the country and internationally.

A Large Family

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We consider ourselves as part of a big family. We should strengthen this feeling further by providing leadership which will generate enthusiasm at all levels and bring us still closer. Basic Trust in PeopleWe have basic trust in people. We strongly believe that in general people are good. So we should foster a spirit of co-operation between individuals and groups with trust and understanding whether it is a colleague or a dealer or a vendor. Each Employee Likes to ContributeWe believe that, given a chance, each person is capable of contributing and would like to contribute to the growth of the organization. A sense of self discipline is to be inculcated which makes an individual do what is expected of him. The climate in which these objectives shall be pursued will be openness that will encourage the exercise of initiative, enterprise and creativity. Pride in Company and ProductsWe must develop a sense of belonging to the company and take pride in the company’s products and services. People at all levels should derive satisfaction and a sense of accomplishment from their involvement and participation in the work. We must attempt to combine the accountability, flexibility and freedom which are characteristics of a family with the strength of a large organization. Information in Behavior and CommunicationThough relationships should be built on the basis of mutual respect, there need not be a formal approach to one’s behavior and communication. There should be a sense of camaraderie and friendship rather than a sense of awe when dealing with one’s superior or colleague. Communication channels should be open at all levels and hierarchical barriers should not come in the way of this informality. Promotions From Within – Training and Career PlanningOpportunities should be provided within the organization for advancement. For this, individual initiative, ability and accomplishment have to be encouraged. All employees should be offered appropriate opportunities to improve their skills and capabilities and prepare themselves for more responsible jobs. The company will make known to every one in the organization such career paths as are open within the various functions and by moving him from one function to another, together with the experience or qualification appropriate to each successive level. We should aim for the fulfillment of employees’ potential within the framework of available opportunities, by the use of structured succession planning, career planning and analysis of performance and training needs. Healthy Working EnvironmentQuality of a working life should be maintained through a physical environment which is healthy, safe comfortable and pleasant. Also a useful range of employee service atmosphere should be promoted as it would enhance self respect. Top Management to Set ExampleTop Management and Senior Managers are expected to set an example for what they expect from their subordinates. It is an established fact that if we want our subordinates to behave in a particular way, we should do so ourselves in the first place. Top Management – Fair and FirmEach employee should feel assured that if he is wronged he has access to the Top Management and that a genuine grievance will be redressed. Also that the Management will not yield to a wrong action under pressure; but if the management happens to err, they have the strength to accept the fault and correct their mistakes. No compromise on honesty and integrity can be made. Top Management – Visible and AccessibleThe organization structure has been clearly defined and is visible. People, therefore, can understand their own roles as also the interaction with those with whom they have staff, line or service relationship. Values of Top Management Becomes Values of All EmployeesValues of Top Management should be known to all employees and it is hoped that the employees will also imbibe and follow similar values.

Organization Culture

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In line with its belief that 'People make the difference', TCL focuses in nurturing

employee potential through involvement, empowerment and continuous learning. The

organization structure, which lays emphasis on delegation, has helped develop the

company's culture. The structure allows immense scope for continuous improvement;

managers do not need to worry about day-to-day operations, and can thus better focus

on breakthrough improvements. The delegation of responsibility to lower levels has

also helped in developing a culture of initiative and risk taking. The organizational

culture can be best described as one of empowerment, delegation and total employee

empowerment (and hence, employee involvement). The company culture is such that

individual as well as teams are recognized for their achievements. Teams are

recognized on a quarterly basis based on their performance and some key measures.

 

Teams are also recognized for 'Best Kaizens'. Individual growth is related to one's

performance in the team. Thus, team members can not shirk their responsibility. In

addition, social loafing is not possible due to peer pressure. Another interesting aspect

is that workers are known as associates and not workers.

This simple step helps inculcate a sense of belonging and loyalty towards the company.

Team play is an important characteristic of the culture and the organization strives

hard to maintain and promote it. The team play is defined as the ability to submerge

individual needs to the needs of the group, building on the strengths and

complimenting the weaknesses of other Team Members to ensure group's objectives

are met. Every Team Member identifies himself/herself with the Team and feels proud

to be part of the Team. There are a number of inter Team contests, Team Building

exercises, constant interaction and counseling by Team Developer, Celebration for

every small success. A Team can be in different stages of Team Play. Five levels of

evolution have been defined and a Team's level can be ascertained by observation in a

particular period of time.