Specifics of Teamwork in Toyota - Case Study Example

Teamwork in Toyota Hamzeh Khalil Of Houston Downtown Contents Contents 2 Introduction 3 Company Profile 3 Theoretical Framework 4 Practices of Toyota to promote teamwork 6 Conclusion 9 References 11 Introduction Teamwork has been identified as one of the most crucial aspects that determine the success of a project. Efficient teamwork is composed of multiple facets such as member contribution, communication, mutual support, coordination, effort and cohesion. The growing importance of teamwork in the academic literature can be attributed to the effective organizational performance that results from it. The purpose of this paper is to discuss the ways in which management of Toyota uses collaborative work to inculcate it in the management of the employees. This paper will provide a theoretical framework for teamwork in organizations to understand the importance of it in the present organizational scenario. The case of Toyota will be discussed by studying the organizational culture and the way in which it integrates teamwork to achieve success. The research is based on secondary data available about the company. Company Profile Toyota Motor Corporation is a Japanese company headquartered in Aichi, Japan. The company was founded on August 28, 1937 and by 2012 it had a capital value of 397.05 billion yen. Toyota operates in countries of North America and Australia apart from the Asian countries. The market share of the company is 45.5% in Japan, 12.2% in North America and 13.4% market share in Asia excluding Japan (Toyota, 2012). The company is famous for its automobile business and is the largest automobile company in terms of manufacturing. The automotive business of the company is involved in designing, sales and manufacturing of vehicles. The company also provides financial services to its clients. The organizational structure of Toyota is based on two main pillars: namely improvement of the organization and respect for the people (Toyota, 2012). The company has established a good reputation for itself by producing high quality vehicles at affordable prices. The research and development department of the company constantly thrives on supporting the innovative practices of the company. Theoretical Framework Teamwork can be described as a cooperative process that makes individual members achieve extraordinary results. According to the research conducted by Fisher, Hunter, &Macrosson (1997) teamwork has been described as process where individuals work in a collaborative manner to achieve common organizational goals by sharing knowledge and expertise. These aspects are the pillars of successful teamwork that enhances the productivity and efficiency of organizations. Team members have the ability to improve the skills, knowledge and abilities through interaction with one another. According to the research conducted by Cohen & Bailey (1999 cited in Chen, Donahue &Klimoski, 2004) it has been found that if organizations place a greater emphasis on formation of efficient teams then there are visible results obtained in terms of improvement of employee performance, problem-solving attitude and productivity. Good teams working in organizations enhance the probability of retaining talent by providing greater participation among members and effective problem-solving approach. Researchers have used number of relevant theories that can help an organization to improve its performance by concentrating on team work. For instance, motivational theories state that individuals in a team feel more motivated and tend to work harder to achieve organizational goals (McCallin, 2001). On the other hand, theories of strategic human resource management states that if an organization incorporates aspects of teamwork in the strategic planning process then visible changes are observed in the job satisfaction, motivation and commitment of employees resulting in behavioural changes. Such behavioural changes form the basis of improvement of organizational performance (McCallin, 2001). Theory of self-leadership states that individual discretion and participatory decision-making acts as factors of motivation leading to higher level of commitment for employees (McCallin, 2001). The research conducted by Ichniowski&Shaw (1999) had summarized the reasons for which teamwork has a positive correlation with better performance. He had pointed out that teamwork stimulates employees to work harder making them exert pressure on other team mates to improve performance of the team as a whole. Secondly, employees working in a team have the ability to convert hard work into smart work. Self-managing teams have the capability of solving problems at a real time basis without the help of functional experts. Finally, teamwork also brings positive organizational changes and makes it more responsive in solving the problems of the employees. Similar activities are grouped together so that employees can act in a chronological manner bringing smoothness to the production process. The research of Delarue, et al. (2008) teamwork can improve attitude, behaviour and operational efficiency of employees generating financial gains for the organization. Synthesis of existing literature points to a few of the common attributes that have been identified by researchers as integral elements for success of teams. They are commitment to success, interdependence among the members, interpersonal skills, transparent communication and feedback provided to team members, suitable composition of the team and commitment to leadership and accountability (Tarricone& Luca, 2002). Successful teams have a strong motivation to work in a coordinated manner because of the shared values and beliefs among the team members. The aspect of group cohesion is strengthened by working in a team together and employees are able to integrate the organizational goals with their personal goals (Tarricone& Luca, 2002). Success of teams also depends on the extent to which members interact with one another during their work. Employees often get the zeal to perform work in a team which they could not have done as individuals. Members of the team must have the openness to interact with one another as communication generates trust. Constructive criticism has been found to be a crucial aspect of team building as members can express their feelings and receive feedback about their performance (Scardamalia&Bereiter, 2003). This acts as a process of learning for the employees. Designating roles for each member of the team and describing their roles reduces conflicts between teams and enhances efficiency. Practices of Toyota to promote teamwork Toyota has ingrained teamwork as an important factor in its strategic human resource management system. The company has understood that in order to foster both personal and professional growth of employees it had to focus on effective teamwork. The team management aspect of Toyota can be considered as an overall part of its “Toyota Production System” (Liker, 2004). Total production system of Toyota has a heavy influence on the overall strategic planning and embraces common set of knowledge, procedures and values. Toyota divides its employees into teams and deploys responsibilities to each of the teams. The management then monitors the performance of team members. The Kanban system of production adopted by Toyota is an efficient one and the workflow is organized in such a manner that team members can complete their work without any type of hindrance. The team building effort of Toyota is focused on creating“Lean Teams” (Liker, 2004). Lean teams in Toyota effectively manage the horizontal flow of work by taking decisions on a real time basis. The lean team employees act as management units that frames their own-decisions and work as social units. The rationale behind formation of the lean teams is that they provide opportunities of growth and self-realization for employees. Development of employees and their personal growth is crucial for organizational success. In order to facilitate the growth of employees, Toyota works constantly to improve mutual trust between organization and management. The team building effort of Toyota can be described in the following steps: Designing teams around process: Toyota has designed teams around the process of production. Every team is responsible for conducting a particular process of work and strives to improve that continuously. In the case of Toyota, they know the type of customers they are facing and are well aware of the supplier’s expectations as well. Each team in Toyota is responsible for the work that they are given and each member is responsible for the success of the team as a whole (Toyota, 2011). Building a team around the work process is a part of the strategic planning of Toyota. Clarifying functions of teams: Toyota management ensures that each team is created for a particular purpose so that the work assigned to them is made best suitable for them. The teams in Toyota can be divided into three broad groups: problem solving-teams, management teams and networking teams. Problem-solving teams in Toyota have the responsibility to locate any type problem that is being faced by the company. These teams do not have any other functions relating to implementation of plans. The problem-solving teams are responsible for proposing solutions to the problem (Liker, 2004). Management teams on the other hand have the work of formulating strategies at a management level and oversee the performance of all the other teams. Finally, the networking teams have the function of learning, supporting and sharing common skills with employees. Learning from constructive criticism: The Toyota team members have a transparent method of communication between them by conducting face-to-face meetings. For instance there are meetings between the HR managers of the company with the team members of manufacturing process to understand their problems and provide solutions to them. The face-to-face meetings are considered very important for Toyota because they act as platforms for constructive criticism of the individuals and teams and enhance the motivation of the employees (Toyota, 2011). The meetings acts as platforms for efficient learning and feedback for the employees and is highly valued in Toyota organizational culture. Involving team members in the decision making process: One of the best parts of the team building efforts of Toyota is to ensure that team members are involved in the decision-making process to ensure that they can be motivated in their work. The involvement of the team members in the decision making process is a sign of equality and morality for them. Motivated employees have a better chance to perform more effectively as has been pointed out by researchers (Liker, 2004). Team members can contribute by providing deep insights about the problems faced in their respective teams which make the process of proposing solutions more focused and effective. Creating trust among team members: The Toyota Production System ensures that the teams are built on the basis of trust and respect for one another. Individual creativity of team members is respected and the members of the team respect each other. Toyota believes that a team can only prosper based on the creativity of its individual members. Team members are treated in a fair manner which becomes an important factor for creating trust for each other. Trust among team members fosters the team spirit and each individual is guided by shared belief and principles (Toyota, 2011). The factors of individual creativity and respect reinforce one another and the power of team performance is enhanced. Team members are passionate about creating best possible products for the customers and creative inputs from individual members fulfil this purpose. The impact of training in team building: Toyota has made a conscious effort to make training programs as a part of the team building process. Unexpected situations can often come up in the workplace and having resourceful team members is one of the easiest ways to solve the problem (Liker, 2004). Big strength of Toyota lies in the flexibility of team members. The human resource management system of Toyota puts an incredible effort to select team members and carefully nurture their talent through proper training and development programs. Structured training of the team members has been successful in creating a multi-skilled workforce that is competent to solve complex problems in a timely manner (Toyota, 2011). There is no need to consult senior management for problems faced during regular work. Team members are highly committed to the organizational goals and works hard to accomplish them (Toyota, 2011). Conclusion Toyota can definitely be considered as one of the best companies that have created a successful team building strategy in order to enhance organizational success. The teams are constructed around particular processes in the company which makes their existence substantial. Team members are treated in an equal manner and useful insights are obtained from them during the decision-making process of the company. Toyota production system is centred on building of trust between employees and respecting their individual creativity. Training and development of team members have made them skilful and they have the potential to manage difficult situations without the supervision from their senior management. Feedback to employees is provided through constructive criticism which in turn develops their learning process. It can therefore be concluded that, success of Toyota as a major automobile manufacturer is largely due to the team work in the organization. References Chen, G., Donahue, L. M.&Klimoski, R. J. (2004). Training undergraduates to work in organizational teams. Academy of Management Learning & Education, 3(1), 27-40. Delarue, A., Van Hootegem, G., Procter, S.&Burridge, M. (2008). Teamworking and organizational performance: A review of survey‐based research. International Journal of Management Reviews, 10(2), 127-148. Fisher, S. G. Hunter, T. A.&Macrosson, W. K. (1997). Team or group? Managers’ perceptions of the differences. Journal of Managerial Psychology, 12(4), 232-242. Ichniowski, C.& Shaw, K. (1999). The effects of human resource management systems on economic performance: An international comparison of US and Japanese plants. Management science, 45(5), 704-721. Liker, J. K. (2004). The Toyota way. Retrieved from http://vedpuriswar.org/Book_Review/The%20Toyota%20Way.pdf. 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