Toyota Culture Case Study

In these now days become important for any organization to find a system that facilitate & confirm it successes, in different area of its activities; like production system, management system & communication system. One of the foundations for organization operation is a structure in which allocate & divide activities & responsibilities, inherent with a culture that form the organization underlying norms, objectives & philosophy. In the case study of Toyota structure experienced since August 2009 Toyota had faced huge crisis, a lot of defects come out as result of it placed Toyota Corporation in embarrassing situation. According to what we learned in T205B concept four, we have improved our critical analysing skills to assess Toyota

Before clarifying the topic lets have discussion about the concept of organizational culture. Generally culture refer to the combination that consider knowledge, art, ethical, laws, traditions & all other ingredients and habits acquired by person as a member of a particular community Where represent concepts and meanings dominant or prevailing in the organization and shared values. It’s not hard to recognize the difference in culture types from one to another culture, thus, Handy created schemes known as Hany’s typology culture, this schemes provide four type of culture found in organizational culture :-

Role cultures: most of exist in bureaucratic, where they conduct their relationship in a professional & unemotional manner, & appreciate steadiness & safeness.

Power cultures: predominantly exist in organizations controlled by a powerful person or group centric. Found in familial companies or corporations that are growing in fast way where central person or group gives order & others

The company guaranteed that it was one of the root causes of tragic and fatal accidents and therefore a recall of affected vehicles was called by the company. Along with this, a different design defect was also highlighted regarding to the installation of the ‘brake override system’. To assert the trustworthiness of the company, the installation of this system was encouraged. Vehicle recalls were not new to the company, especially after some defects were found within the Lexus model of the company in year 1989. To solve the issues in the quickest manner possible, teams were created by the company and in some particular cases cars were also collected by the company from customers’ homes. The main issue related to defects that encountered was the brake problems in vehicles that became quite prominent in year 2009, which led to issue of recalls in the United States. The top leaders of the company were missing from public sight during the early months of the crisis. It can be analysed that a huge role was played by the company’s climate, culture and structure in its failure to react to the defect problem. External threats were responded slowly by the company due to the hierarchy of seniority and corporate culture maintained within the organisation. Bad news was not passed by the individuals. Authority was not generally delegated within the