Toyota Organizational Structure Essay
Organizational structure is a structure used to describe an order within an organization. It categorizes each job, their functions and where it reports to inside the organization. This structure is usually illustrated by using an organizational chart. And this structure it also establish how a certain organization operates within another company by gaining its goals to permit for their future growth. So basically by having a good organizational structure will lead the company to much better choices for its long period investment goals.
In this essay I will talk about how the organizational structure of Toyota and what impact it had in their success, also by considering the environment they currently operates.
Only small companies use one
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Was founded in 1937 by Sakichi Toyoda and his first vehicles he created was the G1 and the A1 passenger car in 1935, was all based on his ground breaking designs, where one of them was paid 1 million yen by a British concern. Sakichi used the money to found the company Toyota where at the same time was also supported by the Japanese government, mainly because of the various military functions. At the beginning business was reasonably unsuccessful after Eiji Toyoda that have been the president from 1967 to 1982 introduced the lean production method after he studied the Ford Rouge plant in 1950 in Detroit. After that the method known as lean production changed the name to Toyota Production System. Taiichi Ohno by using his new production method he successfully helped Sakichi Toyoda to improve is company and to expanded in the world, and he also opened the first Toyota-owned factory in America in 1988.
Toyota Production System (TPS) is built by the raw materials and supplies that are delivered at the exact time they have to be used to be assembled. The assembly line workers are allowed to stop the manufacturing when they see any type of problem because by using the TPS it gives a much more importance of the efficiency to the employees, so it gives to employees power to decide.
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