Toyota Manufacturing - Organisational Structure

Team leader and group leaders have three basic responsibilities. 2008).Tuesday. Toyota follows the matrix organization structure. Organization Structure of Toyota Each firm establishes an organization structure that identifies the responsibilities for employee¶s and relationship among them. 2011). The group leaders play a crucial role in the development of the Toyota structure (Liker & Hoseus. Organizational structure is based on span of control. In the Toyota structure. groups etc. This paper discusses about the organization structure of Toyota organization. The Toyota organization structure is designed to support teamwork. It helps to clearly understand the purpose and objectives of the organization by everyone. Comparisons of other Organization Structures . Their philosophy is to separate responsibility to the lower level. These are supporting of operations. Matrix structure divides authorities of functions and product structures. The Toyota has few layers of the span of control of leader at the bottom of organization. 2009). The goal of the Toyota is setting up the ideal organization structure. 2011 Organization Structure of Toyota Organization structure is a way in which the members of an organization work together with the coordination and in cooperative manner to achieve the organization¶s goals. This helps for decision making and smooth flow of information for achieved the objectives. August 2. Toyota divided the jobs and responsibilities according to the functions. Leaders play a key role in the success of the company. It represents the hierarchy of an organization (Abramowicz. promotional of the system and leading change. Toyota followed the power of coordinated team structures (Toyota. organizational height and use of line versus staff position. department. divisions.

organization given authorities and responsibilities on top management. Divisions must be well managed otherwise they are not success. R.K. and organizational structure in management consulting. and technology. W. Germany: Springer. This system works effectively in the small companies. It provides the authorities and responsibilities of the lower level also. Toyota follows the matrix organization structure. Task. M. Divisional organization structure: In this structure a team focuses on a single product or services. USA: Productivity Press.. S. in this structure members of different groups working together to develop a new product line (Graubner. (2006). J. There is no coordination between two divisions. Business Information Systems: 12th International Conference..toyotauk. Graubner. (2004). & Nielsen. Morgan. USA: McGraw-Hill Professional. Lower level is not participated in the organization decisions. There is no middle management. In this structure. employee s also participated of organization decisions and given their suggestions also.Traditional Organization Structure: In the traditional organization structure. 2011 from http://recruitment.Organisational Structure. The Toyota product development system: integrating people. (2005). New Approaches to Organization Design: Theory and Practice of Adaptive Enterprises.K. Liker. Toyota (2011). J. References: Abramowicz.M.G.M. Retrieved July 29. (2009). USA: Springer. USA: McGraw-Hill Professional. F.K. Principles of Marketing. Toyota follow the matrix structure. & Meier.). Philippine: Rex Bookstore. J. & Liker. (2009). The Toyota way fieldbook: a practical guide for implementing Toyota's 4Ps. D. (2008). Toyota culture: the heart and soul of the Toyota way.jsp Young.D. Liker. (2008). (2006). Hiebing. A. USA: McGraw Hill Professional. firm size. Hiebing. M. So that one division will separate to another division. Bollingtoft. & Hoseus. R. J. & Cooper. Inc. . D. Toyota Manufacturing UK . The one-day marketing plan: organizing and completing a plan that works (3rd ed. Germany: DUV.C. 2006). & Pagoso. Håkonsson.W. J. C.

the project team may get dissolved. and may not at all be suited for companies supplying standard products that satisfy well-defined and stable customer needs. who will jointly ensure the progress of the project. Strengths of a matrix structure: The cross functional teams of a matrix structure reduce the functional barriers between departments. The functional head may be more interested in developing the most exiting products or technologies. and workers from different functional areas may get reassigned to other projects and tasks. each worker has two superiors.What is a Matrix Structure? Companies wanting to respond more quickly to changes in the business environment could feasibly try to implement a matrix structure. and increase the integration of functions. and each functional worker usually works under the supervision of a project manager. and it may require great resources to get information distributed efficiently between team members. Instead. Each functional worker usually reports to the functional heads. A matrix structure is most feasible for companies operating in fast paced and dynamic environments. the worker is controlled by the membership of a certain project. and may provide an opportunity for team members to learn from each other . The matrix structure is an organizational design that groups employees by both function and product. Weaknesses of a Matrix Structure: A matrix structure lacks the effectiveness of bureaucracy. Matrix structures open up for communication. and the structure of the matrix is differentiated into whatever functions are needed to accomplish certain goals. When work is accomplished. This way. The matrix structure makes it possible to assign specialized resources to projects when needed. whereas the project manager may be more concerned with keeping deadlines and controlling product costs. The great focus on integration between functional areas requires a great amount of lateral communication. . and will potentially not work if the organization does not need to react swiftly to changes The flat hierarchy may be the cause of conflict. which might help the company to achieve a higher degree of readiness and market adaptation. The organizational structure is very flat. may increase the ability to react to new customer demands.thus distributing valuable knowledge laterally within the organization. and different stakeholders may pursue entirely different goals. and may potentially decrease lead-times of new products. if implemented effectively. The matrix structure. but do not normally work directly under their supervision.

be organizations operating in high-tech industries such as computing or telecommunication.As said before. . dynamism and uncertainty.g. This could e. the use of a matrix structure seems more feasible for organizations operating in business environments characterized by change. drawing employees from different functional disciplines for assignment to a team without removing them from their respective positions. matrix organization Definition An organizational structure that facilitates the horizontal flow of skills and information. It is used mainly in the management of large projects or product development processes.

a matrix organization necessitates new support mechanisms. Developed at the US National Aeronautics & Space Administration (NASA) in association with its suppliers. Read more: http://www.businessdictionary. this structure gets its name from its resemblance to a table (matrix) where every element is included in a row as well as a column. In addition to a multiple command and control structure. and behavior patterns.html#ixzz1nsUPncVr .com/definition/matrix-organization. They also continue to report on their overall performance to the head of their department whose authority flows downwards (vertically) within his or her department.Employees in a matrix organization report on day-to-day performance to the project or product manager whose authority flows sideways (horizontally) across departmental boundaries. organizational culture.

Sign up to vote on this title
UsefulNot useful