Why Toyota went for a bureaucratic structure?

• Toyota conducts its business in 170 countries across the world and employs 3,48,877 people
over the globe as its direct employees.
• In order to manage such a large workforce spread across the globe, Toyota had to adopt a
bureaucratic structure which is characterised by the following features:
1. Wide Span of control.
In order to manage such a large workforce (apart from the suppliers, distributors etc.), the span of
control had to be wide as a result of which bureaucratic structure became essential.
2.Top-down chain of command.
As Toyota motor corporation’s employees were spread around the globe, A hierarchical(top-down)
chain of command was necessary to align the employees to the common goal of the organisation.
3.Departmentalization.
As Toyota has sourced various components needed to make a car(each car needed 30k individual
parts) and also needed different departments with specialisation to manufacture its core
components. Even for the components that were being sourced from suppliers, Toyota motor corp.
needed an administrative department, accounts department etc. In this regard, the bureaucratic
structure fitted the bill.
Why Toyota went for a bureaucratic structure?
4. Centralization of decision making.
All business unit heads report to the firm’s global headquarters in Japan so as to maintain strict adherence to
the process and protocols of Toyota even though they may be serving regional locations.

5.Work specialization
• As Toyota Motors Corporation was tasked with making innovative advances like making much more fuel
efficient cars and with better features at an affordable price, it had to go for a bureaucratic structure as it
needed people who were experts in their own field.
• For example: A person who has a bachelor’s degree in aeronautical science would be able to design cars
with better aerodynamic features (which helps in in overcoming the friction of air) which will lead to
increase in fuel efficiency.