Organization Concepts and Change Principles In order to operate efficiently and systematically, an organization needs to adopt a distinct structure. Such structures record an organizations aims, values, character, and beliefs. It reflects the core beliefs, vision, and mission of an organization. The structure of an organization provides the base for decision-making and operating procedures. A suitable and effective organization structure takes into account the relevant mission statement of an organization (Liker & Michael 11). Toyota Motor Corporation Organizational Structure Toyota Motor Corporation is a multinational automotive company with its headquarters in Japan.
It is majorly dedicated in creating and manufacturing automobiles. The organization structure of Toyota makes it the standard leader in the automotive industry. Toyota Motor Corporation adopts a matrix model structure. In 2007, the corporation managed to beat General Motors Corporation by recording the biggest sale in the world (Liker & Michael 69). Toyota has continuously enjoyed high profits in the face of the global economic crisis. The company’s ability of problem solving and a quality maintenance standard is in its organizational structure. In its earlier years, Toyotas’ structure of organization was the hierarchy of seniority.
Despite the fact that the company is multinational, their board of directors at that time comprised of Japanese men who were insiders. All the U. S executives had no authority to issue recalls and were assigned Japanese bosses to report to. This mode of operation makes it difficult to pass negative information up the chain. The recall of 8 million vehicles because of unintended acceleration in 2009 caused them great shame. This mode of rigid corporate culture where all power is centralized put them at risk because reaction to external threats was slow (Liker & Michael 32).
This was the turning point for Toyota in changing their bureaucratic structure of operations. In 2011, changes towards a new corporate structure were made. The company adopted a functional post bureaucratic mode of operation (Liker & Michael 69). Executives in the United States and North America no longer report to Japanese bosses who now have no say whatsoever regarding decisions of product development in the United States. The positive results have already started showing as the timing and designs of products have improved.
The partial change of the board of members and the appointment of an outside board of members has promoted sales of the Toyota automobiles in America. The differentiation strategy makes it a unique company. The company focuses on the unique attributes of its employees before hiring and places them in their appropriate segments (Liker & Michael 69). Merits and demerits of decentralization of companies Decentralized companies that involve their employees in making certain problem solving decisions are preferred more than centralized companies are. This is because giving employees such authority results in a sense of ownership and empowerment.
In addition, decision-making is always faster and fairness prevails among employees. Most job seekers do not prefer centralized companies where decisions are made at higher levels because of the mental and physical responsibility demanded. Centralized companies are more efficient in their operations as compared to the decentralized companies. This is because the communication lines are defined with manager providing direction to the subordinate staff. This coordination results in departmental loyalty because every employee’s work is clear and the subordinate employees know whom to report to for directives.
Furthermore, centralized organizations have a clear promotional pathway. This motivates employees to work harder with the hope of a promotion in the future. The execution of policies is fast, coordinated and decisive. The managers’ control in centralized companies is relatively low and there are few tiers between employees. The hybrid matrix organizational model structure adopted by Toyota in its operation is very flexible as it adapts to various economic conditions (Liker & Michael 104). Force Field Analysis of Toyota Corporation A force field analysis is a framework of looking at factors that accelerates and hinders a proposed change.
Kurt Lewin created this concept in 1975. He argues that in order to experience change, it is important to identify the driving forces, fully utilize them, and limit the restraining forces. It is one of the most widely used models in understanding change in management. It is most successful where beliefs and attitudes of individuals are influenced at a time where they see the need for such change. Constant revision and update of this model is vital in today’s world due to the cultural, political, and economic diversity (Liker & Michael 117). Driving Forces (need for change) Restraining Forces (resistance to change) 1.
Improved production speed 2. Global competition 3. Changes in demography 4. Innovations and technology 5. Government policies 1. Management conflict 2. Attitude of stakeholders Throughout their existence, Toyota has managed to maintain their cultured organization structure. Their principle of motivating stakeholders has contributed to their success. The unfreezing stage, which is the first stage, involves thorough analysis of current attitudes and beliefs of individuals and groups. The managers come up with plans that will influence change among their employees.
These plans are implemented and strategies set to ensure that the policies are successful. Toyota Corporation recognizes and reacts to changes in the external environment that are bound to affect them. Such changes include and are not limited to environment and demography and global market share. The environmental implications have led to creation of advanced automobiles that are environmental friendly. The technological advance in providing outstanding products that befits the needs of customers is key to Toyotas’ success. The overall success of the company is largely contributed by a culture of teamwork, innovativeness, and trust between employers and employees.
Their management strategy promotes openness and fairness. All employees are dedicated in their work and involved in the company’s activities including their programs that support multicultural diversity. Toyota’s Code of Conduct and management activities organized by the management is the root cause for their success in change management (Liker & Michael 121). Toyota is one of the many companies to introduce, implement, and embrace an effective change management model of operation. The multinational status of Toyota requires that it comply with the diverse cultural and political demands of different nations.
These management changes vary from country to country because of the difference in market policies. The importance of these management policies cannot be overemphasized to employees in order to attain effective change. Toyota managers are part of the problem solving and decision making units in their respective countries thereby motivating the implementation of such policies. Because of this, Toyota has managed to enhance innovativeness while maintaining the same strategy for decades (Liker & Michael 136). Works Cited Liker, Jeffrey K, and Michael Hoseus.
Toyota Culture: The Heart and Soul of the Toyota Way. New York: McGraw-Hill, 2008. Print.