Importance Of Managers, Management And Organisation For Toyota And How Company Size And Strategy Affect Organisational Structure

Meaning of managers, management, and organization for Toyota

Task 1

Briefly explain: manager, management and organisation. Assess the significance of managers in achieving organisational success for a company of your own choice.

Task 2

Analyse how size and strategy of a company can affect its organisational structure? Support your answer with relevant examples.

Task 3

Scenario:

Tesco has said it will close 43 unprofitable stores across the UK, The firm is also shelving plans to open a further 49 new "very large" stores. Additionally, Tesco is closing its staff pension scheme, will make cuts of £250m and reduce overheads by 30%.

Shares in Tesco rose by more than 13% on Thursday, as investors welcomed the company's announcements. It comes after two years of troubles at Tesco, which has suffered falling sales, in another development, credit rating agency Moody's downgraded Tesco's rating by one notch to Ba1, equivalent to "junk" status. (BBC, 2015)

1. Discuss Tesco’s current mission, vision and corporate strategy.
   
   
2. Suggest and explain the process that can help Tesco to formulate its corporate strategy for the year 2015.
   
   
3. What do you understand by the term “organisational culture”? Can Tesco improve its performance by changing its culture? Discuss.

As per Peter Drucker managers play an important role in uplifting the quality of production activities. The tasks performed by the managers have to be related to the objectives, organizing, motivating employees, communication the task performances, measuring the performances, and developing people. Managers analyse the challenges that are involved in the business performance and communicate the issue with the management. Toyota is a leading car management companies in the world. The company is involved in the production of hybrid and improved technology cars that functions efficiently. Goals of the company is to offer the best services to the clients, and the steps intended to be followed for achieving the same is interacted with the managers. The objectives are achieved by the company with the help of the managers (Andrews, 2012).

Management for Toyota is an important factor. Toyota consistently works towards manufacturing high quality cars, with fewer defects. The management has introduced improved methods for manufacturing, as this helps in reducing the man hours, less wastage, and better space for implementing research and development process. The management of the company has adopted and implemented strategies that eliminate the wastages and makes the best use of the resources. It also introduced new technology and encouraging the staffs to be the quality check and control inspector (Beyer  & Haug, 2014).

The organizational activities of Toyota are quite simple and effective. Structure of the organization has been designed with an intention of executing different tasks, in the best possible manner. In this process the wastages involved with the production activities and the process that needs to be followed for executing the tasks has been designed and communicated with the members. Objective of the organization is to improve the quality of the performance, and provide better work opportunities to the members. This has been done by analysing the objectives of the company and drafting plans to execute the same (Chen C and Huang, 2007).

a. Importance of managers in achieving the goals of the company

There are different departments that functions together in Toyota. Some of the impotent departments are –

• Human resource management
  
  
• Sales department
  
  
• Marketing
  
  
• Purchase department
  
  
• Research and development (Clemmer, 2003).

These departments work in different tangents, and the works has been assigned to the departments by the top management. The tasks are assigned to the lower level employees by the managers who are entrusted with the tasks to execute the works. In this process, the managers are also expected to handle the below mentioned challenges –

• Analyse the seriousness of the internal differences that exists between the members
  
  
• Solve problem between the management and the staffs
  
  
• Handle the staff issues
  
  
• Analyse the performance of the tasks
  
  
• Improve the quality of the performance by introducing better steps for production (Germain, 2007)

Importance of managers in achieving the goals of the company

Organization is formed with an intention of collectively achieving the tasks or the objectives of the company. Such an achievement is not possible by an individual or few people. Structure of the organization is associated with the business competency level, talent, leadership factors, functional relationships, arrangements to execute the tasks, and others. It includes hierarchical levels through which the tasks and responsibilities are shared between different members from various departments. Structure is termed to be the internal patterning and differentiation process that determines the relationships that is required for execution of the tasks at the workplace (Herath, 2007).

If the size of the business is small then the organizational structure is flat. It means the tasks are easily distributed and executed by the management. This is also possible due to limited number of people working with the company. The tasks are equally and properly distributed between the members working with the company. In case of larger sized business like Wal-Mart, Tesco, and Toyota the companies follow vertical level for execution of the tasks. It includes different layers or management process. Through such layers the execution of the tasks becomes easy and effective. Such a structure is possible for handing complex and challenging work pressure that exist with the larger sized business houses (Gazi and Zyphur, 2009).       

The size of the company impacts the work specialization factor that is used for used for sub-dividing the tasks to different departments and staffs. Jobs are broken down into smaller tasks. It is done to enable the specialised staffs to handle the works in the best possible manner. This is not required for companies that has smaller sized business functions. The jobs are assigned to the selected members and the expected quality is interacted with the employees. Structure in the small organization mainly consists of –

• Managers
  
  
• Employees
  
  
• Accountants and others (Liao, 2011)

However with larger companies like Wal-Mart and Tesco, there are –

1. Managers
   
   
2. Quality check
   
   
3. HRM
   
   
4. Team leaders and others

The size of the company affects the departments that are present within the company. In other words, bigger the size of the company higher is the number of departments within the company. Through departments, the challenging tasks are assigned to the managers. The managers need to execute the task along with the team members. Workforce has been assigned the tasks in the best possible manner and the requirements for execution of the task is communicated with the members. Small business houses, usually has less departments. This is because; there is less number of staffs to handle the challenging or simple tasks that exists at the workplace (Nahm,2003).

The size and structure also affects the formalization factor. Through this method, the degree of the tasks that exists within the company has identified. This is done to understand the distribution of tasks that has to be assigned to the members. Also, through the formalization method, the company follows the rules and regulations that are followed by the management. The rules are determined by the federal authroities (Penguim, 2003).

Tesco is one of the popular brands that render quality services to the clients in and around the UK. The company believes in rendering quality and reliable services to the clients. This has been one of the reasons that contributed towards the successful business operational activities. The vision and mission of the company is to achieve long term success factors. This has been done by improving the sales and analysing the factors that causes losses to the management. The business strategies and business practices play a key role in the implementation of the process. At present, Tesco has some units that have not been performing well. This has incurred loss to the company and affected the goodwill of the management. The organizational strategy of the company is to provide the best possible services through which the clients can be retained with the company. For this, the quality of the services that has been proposed to be rendered to the clients has to be improved.  

Size and structure of the company can affect the organization structure

The vision of the company has been mentioned below –

• Improve the performance and acquire larger share in the market
  
  
• Adopt modern technology through which the business opportunities can be adopted and implemented by the company
  
  
• Implement innovative ideas and plans that would contribute towards the business growth.

Business strategies are prepared after analysing the aims and objectives of the company. The tasks are executed through the departmental based strategies. However, the management intends to reduce the operational expenses by closing the unprofitable units. By setting up units, the company proposes to reach out to new markets and acquire better customer rankings (Vroom, 2006). 

Corporate strategy is quite an important factor that would contribute towards the successful business operational activities for the company. Tesco is one of the leading brand companies that have been rendering different type of services to the clients across the world. The present strategy to improve the business performance has been mentioned below-

• Improved marketing strategies

Due to increase in the competition, it has become imperative for the company to adopt and introduce effective marketing strategies. Through this method, it is possible for the management to reach out to maximum number of clients from various segments of the market. Online and off-line marketing strategies has to be improved, as this will increase the product visibility for the company. Strategies for marketing needs to be effective and feasible, as this will help the company to accomplish the tasks (Wolf, 2002).

• Conduct SWOT analysis

Through this method, the company analyse the strengths and weakness of the services that has been rendered to the clients.

Strengths of the company is -

1. Brand image
   
   
2. Reasonable price
   
   
3. Quality products

Weakness

1. Tackle the needs of the clients
   
   
2. Handling the supply chain management system

Opportunities

1. Improved technology
   
   
2. Qualified and experienced staffs

Threats

1. Competition
   
   
2. Rival products and price.

• Conduct PEST analysis
  
  

Through this process, the below mentioned factors are handled –

a. Political - Political factors affect the demand and supply of the products and services that is being rendered by the company. In order to open new branches, the company has to analyse the rules and regulations that has been imposed by the federal authorities. Such rules needs to be followed as this would enable the company to carry out the business performance without interruption.

b. Economic - Economic factors affect the demand and supply of the products and services that is being rendered by the company. Price and quality of the products are affected by an increase or decrease in the earning margins of the customers.

c. Social - Time is a constraint when it comes to shopping products for regular use. Thus, the company can increase the number of food and non-food items that would serve the purpose of the clients. The company can also provide verities of products to the clients, as this would help in reaching to maximum number of clients.

d. Technological - This includes introducing better methods for analysing the products or the inventory with the company. For this technology needs to be introduce that would help in handling the supply chain management system and carry out the production activities without causing any delays to the work performance. Better technology will enable the company to improve the quality of production and services that is being proposed to be rendered to the clients (Zheng, Yang, and Mclean, 2010).

Organizational culture plays a key role in the development and improvement of the business performance. Tesco has large number of employees who work together. The staffs belong to different cultural backgrounds. It is essential to develop and implement an effective internal work culture through which the performance of the company can be improved. Organizational culture is a process through which the values and cultural beliefs of the company has been shared with the staffs, clients, and stakeholders. The values of the company have a major impact on the performance of the management. Tesco believes in rendering better services to the clients at a reasonable price. Through this method, the staffs are encouraged to work towards the goal achievement that has been followed by the company.

The present system needs to be analysed, as this would help in improving the performance for the company. Values are defined and implemented, as this would help in increasing the production process that is being followed by the company. The values have to be developed, as this will help the company to reach out to maximum number of clients from various parts of the country. In this process, the staffs are encouraged to work towards the goal achievement for the company. Thus, the management can improve the internal work structure that would enable the staffs to work better for goal achievement (Vroom, 2006).

References

Andrews D, 2012. “Is There an Organizational Structure for Our Reengineering Business Operation?” Enterprise Reengineering, 2012. https://www.efenselink.mil/c3ibpr/prcd 5280.html

Beyer D  & Haug R, 2014. Organizational Culture: Diagnosing a Customer Contact Company.

Chen C and Huang J, 2007. “How Organizational Climate and Structure Affect Knowledge Management, The Social Interaction Perspective,” International Journal of Information Management, Vol. 27, No. 2, 2007, pp. 104- 118. doi:10.1016/j.ijinfomgt.2006.11.001

Clemmer J, 2003. “Organization Structure Limits or Liberates High performance,” 2003. https://www.clemmer.net/excerpts/ph_orglimits.html

Germain R, 2007. “Supply Change Variability, Organizational Structure and Performance: The Moderating Effect of Demand Unpredictability,” Journal of operations management, Vol. 26, No. 5, 2008, pp. 557-570. doi:10.1016/j.jom.2007.10.002

Herath S, 2007. A Framework for Management Control Research,” Journal of Management Development, Vol. 26, No. 9, 2007, pp. 895-915. doi:10.1108/02621710710819366

Gazi I and Zyphur M, 2009. Rituals in organizations: A review and expansion of current theory. Group Organization Management. (34), 1140139.

Liao C, 2011. “How Knowledge Management Mediates the Relation between Environment and Organizational Structure,” Journal of Business Research, Vol. 64, No. 7, 2011, pp. 728-736. doi:10.1016/j.jbusres.2010.08.001.

Nahm Y, 2003. “The Impact of Organizational Structure on Time-Based Manufacturing and Plant Performance,” Journal of Operations Management, Vol. 21, No. 3, 2003, pp. 281-306. doi:10.1016/S0272-6963(02)00107-9.

Penguin D, 2003. “Fundamentals of Organizational Structure,” 2003. https://www.up.univ-mrs.fr/~wlag/ea/gmba/orgthe/topic2. html

Vroom G, 2006. “Organizational Design and the Intensity of Rivalry,” Management Science, Vol. 52, No. 11, 2006, pp. 1689-1702. doi:10.1287/mnsc.1060.0586

Wolf D, 2002. “Execution and Structure,” 2002. https://www.dewarsloan.com/workin%20papers-execution %20and20%structure.html

Zheng W, Yang B, and Mclean G, 2010. “Linking Organizational Culture, Strategy and Organizational Effectiveness; Mediating Role of Knowledge Management,” Journal of Business research, Vol. 63, No. 7, 2010, pp. 763- 771. doi:10.1016/j.jbusres.2009.06.005