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Toyota Essay

708 words - 3 pages

Toyota Organizational Structure
In Toyota, the importance decisions have to come from Toyota Motor Corporation in Japan. From Chart-1 we can see that TMC has a three-tier executive system with executive vice president, chief officer (senior managing director) and managing officers responsible for group of affair(2) It's a design that put key decision making in the hands of executive in Japan and ultimately impaired its ability to prevent the now-burgeoning safety problems before they reached the crisis state(3)
We can explain Toyota Organization as follow;
1) Centralization is a degree to which decision makings take place at upper levels of the organization. In Toyota, the executives at ...view middle of the document...

5) Matrix Organization crosses a traditional function structure with a product structure. In Toyota, each employee has to report to not only the functional manager that they are working with, they have to report to the chief engineer who represent the interest of the customer too.

6) Boundaryless Organization is an organization whose design is not defined by, or limited to, boundaries imposed by a predefined structure. Toyota managed to create strategic alliances that eliminate some boundaries that exist between the typical manufacturers and suppliers. The level of cooperation Toyota has with its suppliers blur the lines between organization and move them one step closer to becoming a boundaryless organization.(3)(4)

From the studying of Toyota Organization Structure we can see that Toyota has facing the crisis because of its centralized power structure, authority is not generally delegate within company; all U.S. executives are assigned a Japanese boss to mentor them, and no Toyota executive in the United State is authorized to issue a recall. Most information flow is one-way, back to Japan where decision made.(6)

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On 9 March 2011, TMC announces that it will modify its management structures and implement executive, organizational and personal...

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