Problem Recognition - Toyota - Assignment Example

? XXXX XXXX Toyota Case Study 19/10/11 Toyota Case Study 0 Problem Recognition One model for understanding the problems faced by Toyota is to consider the “open systems model” as a perspective to viewing the organisation. Nadler and Tushman (1980) present the concept stating that one way of viewing an organisation is to consider that organisations are made of structures and other hard elements referred to as “hard systems” (Senior and Fleming, 2006, Schein, 2004) however, Nadler and Tushman in their article present the open systems model of an organisation as one in which the emphasis is placed upon the way in which an organisation interacts with the relevant factors within the external environment, as well as considering the traditional internal interactions within an organisation. This may be seen as one of the key models for Toyota to consider in recognising the need for change, here the case study points to an organisation which is relatively closed, the company losing touch with its customer base and management team focusing upon internal interactions and change initiatives. Adoption of the open systems model for viewing an organisation may allow the company to concentrate to a greater extent upon the needs of its customers, rather than focusing upon internally hard systems issues. 2.0 Recommendations for Change Having analysed the case study and conducted the relevant situational analysis, it would appear that Toyota suffers from a number of major issues. The single two biggest issues which the company may be seen as facing are poor internal communications and a disconnect between the company and its customers in the market. Such issues have lead to poor product quality in recent years and the failure to develop new products which have a clear demand in some local markets. In considering how Toyota is to overcome these problems, the report recommends a program of radical hard systems restructuring. Here Toyota should consider adopting a regionally based business model and move away from the current centralised model operated from Japan. The benefits of implementing such a change initiative would be that Toyota would be closer to its customers both geographically and from a communications perspective (Griffin and Pustay 2009). This would allow the company to develop products which are suited to localised needs, rather than developing a set of international products which are designed to appeal to a global market. In addition, Toyota would also be able to detect any problems within a local market in a much shorter space of time, than where communications as at present have to filter back to the head office in Japan. As such, the recommendation of this report is that Toyota should set up one head office function in each key national market, each to be run as a separate strategic business unit. In making the changes, the researcher recommends that Lewin’s (1957) three stage model of change should be used. Here the model advocates three stages, namely “unfreeze” “move” and “Freeze.” In short, the unfreeze stage represents a preparatory stage in which members of the organisation are encouraged to both see the need for change and then move towards the planning required at the implementation stage. The move stage represents the actual implementation stage of a change initiative, finally the freeze stage represents a consolidation stage in which managers ensure changes to processes and practises are embedded in the organisation and old ways of working are not slipped back into. While Lewin’s (1957) three stages of change is a widely accepted model, it is not the only model which Toyota may consider. Another similar model is that of Kotter’s (1996) eight stage model for creating change which includes: Establishing a sense of urgency Creating a guiding coalition Developing a vision and strategy Communicating the change vision Empowering employees for broad based action Generating short term wins Consolidating gains Anchoring new approaches While, the model is different to that of Lewin’s (1957) model, one can clearly see that each of the stages addresses an issue that falls into one of the broad categories of preparation for change, implementation of change or consolidation of change. Having considered the research presented by Kotter (1996) it is also evident that like Lewin, the author is of the opinion that the failure of many change initiatives are often related to poor management in the preparation and consolidation stages of the change initiative. Having considered the case study, it would seem to be evident that Toyota at the moment is still stuck at the establishing a sense of urgency stage, with even senior members of the organisation needing to be convinced of the need for change. In implementing a regional change program at Toyota, one may see that the most critical element of the three stage model may be the need to create a desire or inertia for change in the first instance. Having read the case study, it would appear that there is a significant element within Toyota who simply do not believe that there is any need to make changes in the first place. Much of this over confidence and resistance to change may be seen as the product of the company’s previous successes. 3.0 Evaluation of Theory In researching this paper, the paper has made use of a number of theoretical concepts and models including the open systems model, Lewin’s (1957) three stage model of change and Kotter’s (1996) eight stages of change model. Here it may be considered that the open systems model provides an effective way of diagnosing an organisations key problems by looking at external rather than internal factors. Lewin’s (1957) three stage model has also been a significantly important tool in considering the current case, the model highlights the need, not only to implement change but to generate sufficient interest in change in the first instance. This may be seen as significantly appropriate in the case of Toyota, a company which as seemingly to date denied the need to make any changes, based upon previous successes. Bibliography Grant, R, M. 2008. Contemporary strategy analysis. 6th ed. Oxford: Blackwell Publishing. Griffin, R, W, Pustay, M. 2009. International business. 6th ed. Basingstoke: Pearson Education. Kotter, J, P. 1996. Leading change. Boston: Harvard Business Press. Lewin, K. 1957. Field theory in social science. Chicago: University of Chicago press. Nadler, D, A, Tushman, M, L. 1980. A model for diagnosing organisational behaviour. Organisational Dynamics. Autumn. 1980. Porter, M, E. 2004. Competitive advantage. Export edition. United States: Free Press. Schein, E, H. 2004. Organisational culture and leadership. 3rd ed. San Fransisco: Jossey Bass. Senior, B, Fleming, J. 2006. Organizational Change. 3rd ed. Harlow: FT Prentice Hall. Read More