This particular study has two parts. The first part is all about the company Ford and how scientific management theories have change their process of working and has helped them in gaining competitive advantage in the market. It also reflects how taylorism has not become totally obsolete. It still plays a vital role.
The second part is about the role of power of organisational culture for big companies like Toyota in order to remain successful. The management follows participative leadership style in order to give importance to every employees working in the company. This study also shows how it is important for a MNC like Toyota to give values to culture of all the companies where it operates.
The clip is all about the rise of the famous automobile organisation Ford Automobile company Ford through management theory Taylorism. The process that Ford used in that era might be obsolete now due to technological advancement but still today every big company’s implements strategies which would be cost effective and less time consuming. So it can be said that the concept is still there in countries like Australia, USA and Europe (Huhtala, et al 2013).
When the company was initially formed the company used to follow methods which were extremely costly and time consuming. The assembling process of the car was very lengthy and costly as well. The worker had to bring the car in particular place and then the entire assembling was done which took more than 12 hour time. And most importantly after such a hectic schedule and process the workers used to get extremely tired as a result of which the target production was not met. All of these factors made the company extremely worried and they were unable to sell cars at an affordable price as the operations cost became higher. This is the reason why Ford hired Fredrick Winslow Tailor so that he can provide some help by applying his unique management concept (Anitha and Begum, 2016).
After gaining proper knowledge of the situation Ford understood the reason behind the time consumption. The first thing he told Ford is to divide his workforce as per their capabilities. He asked him to give work to the workers as per their comfort level. According to this concept Assembly line was introduced. In 1908 this assembly line concept was implemented for the first time .Different workstations were made and every work stations had workers with their specified task as per their competency. The cars were pulled wit rope by the works from one station to another and assembling was done in a processed manner. This reduced huge time. The production was also increased. Ford also saw that some of the small task was taking larger time than the big ones. So he changed the entire tooling method and brought some new machinery to save those extra times. All this process reduced the car preparation time hugely. After this innovative process in the production model T which was the most popular car took only 93 minutes for preparation. This gave the company new lights and the company became immensely successful (Witzel and Warner, 2015)
One of the most important mottos of taylorism was employee motivation. This is why Ford created all sort of extra benefits for their employee like extra pay, incentives so that they can never be demotivated and work for the goal of the company. This is still followed in most of the big MNCs of Australia and US. In every call centres where employees have t meet a particular monthly target; this concept of taylorism is still followed. Whenever any employees over shoots their target they get extra benefits from the company like a holiday trip or a lunch coupon at restaurants as rewards. Moreover they get incentives apart from their fixed salaries for their extra efforts ( Denison et al.2014)
So it is observed that it might happen that process and techniques have changed but still the major concepts of taylorism is still followed and accepted in certain business.
Toyota is one of the world’s biggest cars manufacturing company of today. The production system of the company is extremely good as the management has ensured that proper employees are there in proper places. As Toyota has been operating in various companies so it has made sure that it properly accepts the culture of the company where it is operating. This is a clever strategy to satisfy the employees working in various branches of Toyota. Toyota being a Japanese brand has always followed American culture in its operations.
The organisation has always believed in innovation and the culture has always supported participative leadership style so that every employee can put their viewpoint. The 7 key points of their culture are
Innovation and risk taker: In today’s world technology is changing everyday and so as people’s taste and perception. Every company is trying to introduce new technology in order to gain more customers. Toyota also firmly believes in innovation. So they never back up in taking some risk like designing new cars (Arifin, 2014).
Individual Initiatives: As discussed earlier the company follows participative leadership style which allows employees from every level that is from senior management level to junior executive level to put forward their view point when some crucial decision is taken.
People Oriented: The company policies are completely employee oriented. They take all the possible steps to keep their employees satisfied.
Team work: Team work is extremely necessary for every organisation to sustain the work pressure. In a dynamic environment team work I necessity and Toyota’s culture fully supports this.
Aggressive: To stay in the competition a company has to be aggressive in its approach. Toyota does the same.
Communitarians: Communitarians is all about spreading a wider knowledge. Toyota follows it as they promote innovation.
From the above two videos it can be concluded that innovation is the boon to success for every organisations in the world. Taylorism might have got obsolete when it comes to technique still its main concepts are widely accepted and appreciated by every organisation in the world. The concept of employee motivation was there 100 years ago and it is still there. Organisational culture plays a vital role for success of any company in the world. The organisational culture of Toyota has helped the company to achieve huge market share in the worldwide car manufacturing market. Their giving importance to employees of every culture is a textbook to follow for other companies.
Anitha, J. and Begum, F.N., 2016. Role of Organisational Culture and Employee Commitment in Employee Retention. ASBM Journal of Management, 9(1), p.17.
Arifin, H.M., 2014. The influence of competence, motivation, and organisational culture to high school teacher job satisfaction and performance. International Education Studies, 8(1), p.38.
Denison, D., Nieminen, L. and Kotrba, L., 2014. Diagnosing organizational cultures: A conceptual and empirical review of culture effectiveness surveys. European Journal of Work and Organizational Psychology, 23(1), pp.145-161.
Huhtala, M., Feldt, T., Hyvönen, K. and Mauno, S., 2013. Ethical organisational culture as a context for managers’ personal work goals. Journal of Business Ethics, 114(2), pp.265-282.
Witzel, M. and Warner, M., 2015. Taylorism revisited: Culture, management theory and paradigm-shift. Journal of General Management, 40(3), pp.55-69.
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