Toyota's Management Theory

Management is the process in which, socially, a certain organization dictates and regulates its operations and the employee productive output. The managing ability of a manager is harshly influenced by his understanding of management theory and his application of it to successfully reach the company 's goals, be them short-term or long-term goals. The obligation of general administration is to lead the endeavor toward its target by making ideal utilization of accessible assets (wren.Daniel). To succeed with their mission, Managers must be great at planning, organizing, controlling and persuading their workers through motivation and rewards. Planning and decision making are very crucial to the company because the plan or decision dictates the

Competent people that are experts, Machinery, technological resources are then assigned to these jobs or activities in order to increase efficiency through performing well or providing the end product or service in minimal time according to plan (Saritha Pujari). Toyota 's management before the 1980 's emphasized efficiency by division of labor and stratification ( Satoshi Hino). This lead to the management practice in-effect turning into a bureaucracy. Bureaucracies tend to diminish creativity within the corporation and limit innovation by those at the lower end of the scale (Satoshi hino). Toyota, luckily, sought to reform the management in-order to survive in the age of creativity and by 1984 institutional reform proposals were put forth that advocates "organizational flattening" (satoshi hino) This would further enhance the corporate spirit and provide an environment where communication is done with ease and complete clarity. That in return leads to the controlling segment of the process to be done with utter

Later to the planning and organizing phase ,after all the standards have been set i.e. standards to achieve the goals of the company ( Time,cost,productivity, ..etc) this stage focuses on the results and whether or not they match the criteria set. That is usually done through measuring performance , comparing the actual performance against expected performance and finally taking corrective measures to either fix or enhance deviations in the work force(ARTHITA BANERJEE). Taichii Ohno created the Just-in-time production system for Toyota. That led to more efficiency in production as well as incorporating quality control techniques , statistical process control to aid in enhancing their on-demand production. Just-in-time production system reduces inventory build up, hence reducing costs(Amaska, 2002).Toyota in a sense minimized the controlling process on their production system by relying mostly on machinery which are easier to control and maintain. It still possess a human work force that works and oversees the production line functionality. And Humans, unlike machines, Have feelings and are bound by human forces such as motivation, loyalty and willingness to