Toyota Case Study

Topics: Organizational culture, Organizational studies, Organization Pages: 8 (2241 words) Published: May 6, 2013
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. The company’s motor department grew sharply after WorldWar 2. The company’s special culture and quality system made company become the world biggest motor manufacture company. At the end of 2008, Toyota had sold 1 million cars in the world wide. The company is 37th world largest economy in the world. The company’s business is operated all over the world, there are 53 overseas manufacturing companies in 27 countries and regions and there are 71,116 contracted employees working for Toyota in the worldwide; the products of Toyota are sold in more than 170 countries and regions. Toyota is a typical global company.

Organizational Structure

Hatch & Cunliffe(2006 P296) describe that there are two basic organizational designs, simple organizational designs and functional organizational designs.

With the organizational theory development, people explored more details on the functional organizational design. Therefore, the thought of multidivisional forms is appeared. (Hatch & Cunliffe 2006 P299) The multidivisional means the separate functional department work for a headquarter person. The organizations have many divisions of departments, so, size of company can become bigger and more competitive.

Otherwise, there are some others types of designs are followed by multidivisional forms. The matrix designs, it is a flexible and responsive design. (Hatch & Cunliffe 2006 P301) The manager should control two sides in the matrix organization, the functional side and project side. In the functional side, managers focus on how to keep the different departments working on the right track and maintain their performance and standards. Turn to the project side, managers should understand the different project has special plan, deadline and budget; managers should ensure these factors can be finished by each project team.

When organization decided to explore worldwide, then the design of organization can be called global matrix. Hatch & Cunliffe (2006 P304-305) argue that the global matrix is base on the global organizations, the global organization only has one headquarter located in one country in which organization be established. The management is controlled by a team that managers come from the mother country and the top level managers will spend their most time on living in the oversea than in their mother country.

Just like the matrix design, the management team in global matrix should confront two sides of design as well: the different geographic regions and different product group. In the geographic region side, the management team focuses on how to make region organization effective and develop organizational knowledge and culture. In the side of products, the management team should think about how organization makes their product to be sold in different region, the team should also think about different factors to ensure product can be acceptable in different regions. Toyota is the global matrix organization, headquarter of company is located in Japan, top management team are all Japanese, Toyota controlled everything in the routine, company push its Toyota Production System to all the sub-companies and suppliers.(Mehri 2006 P24-27)

The organization design can be used to connect...

References: Jaffee, D. 2001, Organization Theory: Tension and Change Mc Graw-Hill Companies,Inc.
Robbins, S.P. Barnwell, N. 2002, Organization Theory: concepts and cases Pearson Education Australia Pty Ltd
Hatch, M.J. Cunliffe, A.L. 2006, Organization Theory: Modern, symbolic, and Postmodern Perspectives, OXFORD University Press
Mehri, D. 2006, The Darker Side of Lean: An Insider’s Perspective on the Realities of the Toyota Production System, Academy of Management Perspectives, Vol. 20 No.2, ISSN 1558-9080, P 21-42
Dyer, J. and Hatch, N. 2004. Using supplier networks to learn faster , MIT Sloan Management Review 45 (3), ISSN 1532-9194, P. 57-64.
Spear, S. and Bowen, H. K. 1999. ‘Decoding the DNA of the Toyota Production System’ Harvard Business Review 77 (5), P. 97-112.
Jiang WEI
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