Culture in Toyota Corporation - Case Study Example

Name Lecturer Task Date Introduction Organizational culture has been highlighted as a crucial aspect in modern day organizations and has therefore turned out to be a major subject of focus amongst management scholars. It has become a major subject of study for decades and has received attention from various disciplines such as anthropology, sociology, history and philosophy (Mobley et al., 2005). This concept became a subject of focus in anthropology before being adapted by other disciplines such as the organizational context (Chang & Lin, 2007). The aspect of culture in the context of an organization has been studied extensively. Past research studies have substantiated the fact that there is a strong correlation between organizational performance and culture (Mobley et al., 2005; Schein, 2010). Notably, the culture of one organization differs from those of other organizations. Even for organizations whose operations are within the same line or industry have different cultures (Gillis & IABC, 2011: 30). Despite the fact that culture vary from one organization to another, scholars have had a common perception that it comprises of some common artifacts or symbols of expression (Detert, et al., 2000: 851). The culture of an organization can present itself as visible symbolizations such as languages, stories, dress codes, slogans, behaviors, legends, rituals, heroes and ceremonies (Mobley et al, 2005: 12; Detert, et al., 2000: 851). It is worth noting that underlying these expressive symbols are the beliefs, values and shared assumptions of workers that define the culture of an organization (Mobley et al, 2005). Therefore, by changing any of these artifacts, one need not to expect cultural change. This essay will critically discuss the cultural expression in the context of Toyota corporation. This discussion will involve the highlight of some of the common cultural artifacts which express the culture of this organization and how these symbolic expressions have affected its performance. Definition of Organizational Culture The term culture has been defined differently by many academicians from all disciplines. Schein (2010) has given a general definition and he defines culture as “a pattern of shared assumptions learned by a group as it solved its problems of external adaptation and internal integration, which has worked well enough to be considered valid and, therefore to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” (p. 18). Similarly, Mobley et al. (2005) have defined culture as a set of beliefs, values, thinking and behavioral norms partaken by members of a certain society (p. 12). These definitions are more general and some scholars have tried to define culture in organizational context. For example, Florentina and Georgiana have defined culture as “ both written and unwritten set of rules, concepts, ways of thinking that spiritually diverse an institution from another and that is reflected in every interaction with its external and internal environment” (Florentina & Georgiana, 2012: 371). In almost the same way, Stahl & Grigsby (1997) defined organizational culture as a set of values and meanings which members of an organization share. Other scholars who have tried defining organizational culture include Glisson (2000) and Glisson and James (2002). Notably, in all these definitions, the concept of shared values and norms is a major building block. Therefore, organizational culture is generally shared values of each organization and these values vary from one organization to another. In fact it can be taken as a model of basic assumptions contrived by a certain group that shape the thinking, emotions and perception of all members in that group (Williams et al., 2010). How Culture is Expressed in Organizations There are certain elements through which many organizations express their cultures. As earlier mentioned, each organization has its own unique culture. Culture manifests itself in many ways and they are the basis of these variations. It is generally manifested through what people do, say and act. A description of a society can be given through the analysis of what they say (verbal), what they do (physical) and how they act when confronted by a given situation (behavioral). “The verbal, behavioral and physical “artifacts” used by certain group of individuals in the management of certain situations are the main expressions of that group’s culture” (Dyer, 1982: 4). It is crucial to note that most of these elements are observable. The different forms of verbal artifacts include; language, tales and myths. Rituals, ceremonies and behavioral practices are the common representations of behavioral artifacts. Physical artifacts are represented by the set of technologies used in the organization. Similarly, cultural values and assumptions are manifested in these artifacts. Besides this, there are many other scholars who have given their views on how culture is expressed in many setups. According to Daft (2009), dressing style, day to day actions, type of control systems, power structures used by an organization, symbols, stories and ceremonies shared by organizational members are the common visible elements of culture. Culture of any organization is expressed through these elements. Similarly, Florentina & Georgiana (2012) have given their set of elements of culture to include; symbols, rituals and ceremonies, rules guiding behavior, legislative acts and staff roles, stories and myths of the organization. They do agree with Daft’s idea that most of these elements of culture are intangible. Martin (1992: 3) also gave a set of manifestations of culture. They include all those elements in which members come into contact with within every organization. According to him, such elements include “dress norms, tales of what is going on in the organization, formal rules and procedures, informal behavior codes, rituals, pay systems, undertakings, jargon and jokes” (Martin, 1992: 3). Culture in Toyota Corporation Toyota corporation is currently the world leader in the manufacture and sale of motor vehicles. The company has a number of assembly plants all over the world. Quite unique to all these assembly plants is the nature of culture displayed. Some unique elements which depicts the culture of this company are teamwork, communication, work schedule, democratic leadership, conflict resolution and motivation. These elements describe the culture of Toyota Corporation. All activities in the company are guided by the philosophy of teamwork (Toyota, 2014). This philosophy works across all levels of governance. The objective of this is to create mutual trust and respect amongst the employees (Toyota, 2014).Flat hierarchy is also a common thing in all Toyota plants. In this organizational structure, 67% of employees are line workers, 14% of them are team leaders, 4% fall in the bracket of group leaders and 14% are administrators (Howard, 1998). These divisions into groups and teams is a bid to enhance flexibility and good communication (Toyota, 2014). Notably, all these groups ranging from administration to line workers are treated equally. Those workers falling into the group of administrators do not receive any extra benefits (Howard, 1998). In addition to this, workers in all the groups work independently with minimum interference from the management. In case of a mistake in the course of work, an employee is not subjected to punitive measures. Instead, the team managers take the task of advising the employee and mistake be taken as a learning experience. This democratic leadership of independence has aided in building up its innovative culture and motivates the employees to work. Open two way communication is also a common aspect of all Toyota plants (Howard, 1998). Workers are expected to share their ideas and give their views through forums organized at all levels. Employees are expected to solve their problems within their groups and if the problems are complex, they channel them to the management (Howard, 1998). Problem solving at all levels is done with the help of an elected 'mediator' who communicates the teams' views. The management team is always available to foresee the activities of the team and solve their problems. Importantly, decisions are made upon an agreement struck by both parties. The work schedule of Toyota corporation also signifies its unique culture. Workers begin their task at Toyota corporation at 6:30 am in some plants and 7:00 am for others and ends at 3:45 pm from Monday to Friday (TMMC, 2014; Howard, 1998). The start and end times vary from one plant to another depending on the business condition (TMMC, 2014). Workers are expected to rotate in all the tasks in the mornings and afternoons while repeating the same tasks in approximately every sixty seconds. There is a tight schedule exhibited by constant work of two and quarter hours with no breathing space in between. An interview with some of the employees working at Kentucky plant done by Besser (1996) revealed the stressful working environment in all the offices. One worker interviewed summed up the entire work environment at Toyota Corporation and openly said that one is expected to kill oneself for the company and in return be paid well. Impacts of Culture on an Organization Many scholars such as Deter et al. (2000) and Shahzad (2012) have argued that culture is key driver to organizational performance. As a result, many organizations has greatly benefited from it. However, this has not always been the case for some organizations. Some of the organizations have failed because of the culture adopted. Therefore, culture can either make or break an organization. Mentioned earlier, many scholars argue that organizational culture has positive effects on organizational performance. Several research studies have proven this proposition. A research study conducted by Denison (1990) using 34 firms in America indicated a direct relationship between culture and performance. This is in agreement with what other scholars have argued. A common conclusion for most of the scholars is that organizational culture is the key driver to sustained competitive advantage (Shahzad 2012: 980). A few scholars such as Rousseau (1990) disagree with this and they argue that there is no correlation between organizational performance and culture. According to them, the link between culture and performance still remains unclear owing to the fact that some studies indicate a direct correlation while others do not. Cultural artifacts used bolsters the feeling of being part of the organization. In the context of Toyota Corporation, employees have been made to make their decisions thus making them feel as part and parcel of the entire organization. When an employee is asked how his or her place of work is, there is a likelihood that he or she will give organizational culture (Lunenburg, 2011). Such descriptions include the general feeling of the treatment given in the workplace, the work atmosphere and success stories. Madu (2012) posits that a well established culture can become a strong leadership tool which can be used by a manager to communicate the values and beliefs to employees. It is quite evident that activities in Toyota Corporation are managed by employees themselves. Employees solve their problems at their respective levels. According to Shahzad (2012: 981), organizational culture functions as social glue that helps in bringing together employees and make them have that feeling of being part of an organization. By having a unique culture, the employees share some important values such as hard work and commitment crucial for the success of this organization. This is in line with Shahzad’s (2012) argument that performance of any organization is dependent on how the employees share the values of culture of their organization. When there is a high degree of sharing, the organizational performance will also increase significantly. Other scholars do agree with the idea of organizational culture bringing in sustained competitive advantage (Shahzad, 2012: 980). Despite having positive outcomes, culture also has some setbacks to organizations. One of the most evident setback of culture to an organization is rigidity to change. Occasionally, changes were necessary in some departments and it proved difficult for employees to change from the old way of doing things. According to Phillips & Gully (2011: 485), culture is an impediment to change and it can be compared to glue that holds everything together within the organization. More often, Toyota Corporation has recalled some of its auto owing to defects. This can be attributed to its culture of making employees schedule being tight with no break for thinking. At the same time, it becomes a challenge to introduce reparative measure owing to the repetitive nature of tasks. Conclusion In conclusion, despite having negative effects, cultural expressions have positive effects which outweighed the negative ones. It was quite evident that the success story behind Toyota Corporation being the world leader in the manufacture and sale of motor vehicles is as a result of its culture. Every year, Toyota Corporation comes up with new models of auto that stems from freedom of expression of ideas with minimum interference from leadership. Team and cooperation is also responsible for the success of this company. The culture of team work and cooperation can be reflected by many elements or artifacts used by an organization. It is important to note that culture is more than internal affairs of an organization but rather it can be experienced by those outside it (G.E, 2012). By recognizing the importance of corporate social responsibility, the company reflects ethicality which is one of its core values. Lundberg (2008) argues that managing an organization is dependent on the manager’s realization that it is a component of national culture and it does not exist in a vacuum. Choosing the right activities for expressing culture is therefore crucial. Culture is a way of inspiring employees to feel they are part of the organization. References Besser, T. L. (1996). Transplanting the Toyota Culture to the Camry Plant in Kentucky. SUNY Press. Chang, S. E. & Lin, C. (2007). Exploring Organizational Culture for Information Security Management. Industrial Management & Data, 107(3): 438-458. Daft, R. L. (2009). Organization Theory and Design ed 10. New York: Cengage Learning. Denison, D. R. (1990). Corporate Culture and Organizational Effectiveness. New York: Wiley. Deter, J. R., Schroeder, R. G. & Mauriel, J. J. (2000). A Framework for Linking Culture and Improvement Initiatives in Organizations. Academy of Management Review, 25(4): 850- 863. Detert, J. R., Schroeder. R. G. & Mauriel, J. J. 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