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Analysis Of Change Effort At Toyota Electric motor Corporation Management Essay

Over days gone by several generations change management has become one of the mainly discussed topics across different companies on the marketplace. The need for change management has grow to be a crucial activity for professionals and market leaders of not only the big global businesses but also small and medium sized enterprises. Research suggests that the change management is fundamental issue that needs to be considered specially when it involves introducing and adjusting new strategies and policies that will influence the business's future perspectives and trends. It is essential area of the long-term competitive success method (Pettigrew and Whipp, 1991).

Although many research conclusions imply change management can be defined in several ways with regards to the industry and the company, there is a common ground which the perceptions of the functions of the professionals are build on. It really is argued that individuals are the main individuals of change and creativity in the competitive environment of the business world. Because of this, human resources departments play a major role in choosing the right people for the right position and teach and develop their workers to become goal and future oriented. Findings claim that in order for a company to have a successful change management implementation, human resources professionals have to be able to deal with both change and change within an individual company (Urlich, 1997).

According to Urlich (1997) "transformation requires fundamental ethnical change in a firmHR managers taking care of transformation become both ethnic guardians and ethnic catalysts". Since nowadays many companies operate on a global level, the main concern in managing transformation is to lead the business through version and popularity of new culture without influencing the old values and principles.

On the other hands change is usually related to bringing out a certain degree of newness to the company, starting from employing new employees up to presenting new strategies and reshaping the entire corporate culture, quest, and vision of the company. More accurately change can be considered to be interrelated with transformation. It is defined as "the capability of a business to improve the design and execution of initiatives and reduce cycle time in all organizational activities" (Urlich, 1997). For a big change to be enacted and efficiently accepted within a company, it is argued that change must happen at three different levels 1) organizational, 2) team and 3) person. If the new strategies and initiatives are accepted at every one of the three levels, the implementation of change is prosperous (Hirtz, 2008).

In order to have a successful change management implementation across the various levels of techniques within an individual company, research studies emphasize on the importance of having change agents. Corresponding to some historical data on recruiting, the main drivers for change in just a company were regarded as the human reference managers (Urlich, 1997). Being a global company inflicted with differences among the team members, individuals, and the overall organizational structure, the role of the change managers have changed over the years. It is stated that nowadays the professionals and the market leaders in any way levels within an individual company are obliged to assert the necessity for change and its productive implementation. They will be the key to successful knowledge of cultural, social, politics, and legal distinctions and the key drivers of inspiration to the company all together (Hartley et al. , 1997).

In today's business community companies are trying to achieve a top degree of change management execution. In order to do so, a significant factor that has to be taken into account is enough time size and planning. Matching to Caudwell (2004), an effective change management should be carefully planned and it will contain an identified start and an finishing that provides desirable outcomes. However, research shows that through the "change" implementation, managers often forget to go back and appearance at the results that they reach the very start of the process, which is the reason why many companies didn't transform and change according to their initial plans. For this reason, findings imply that the change management has to be perceived not as a one-time implementation project, but as an on-going, long-term and future oriented strategy (Caudwell, 2004).

Lewin's Push Field Evaluation Model

More than fifty years back Kurt Lewin, using his experience in public psychology and human tendencies, developed the widely known force field research model in order to make clear how changes can happen within a single company. The push field evaluation model, or also known as the "3-step model" was mainly developed to help change professionals identify the so called "driving" (or exterior) and "restraining" (or internal-individual and group behavior) forces that may effect the change within a single company (Burns, 2004a). For an effective and effective change to occur, Lewin proposed that we now have three stages that every company and the individuals and categories being part of this environment is going through. Graphical depiction of the model is shown in Amount 1.

Figure 1

Note: Table is extracted from http://rapidbi. com/management/kurt-lewin-three-step-change-theory/

The first stage is the so-called "unfreezing" stage where the current situation should be carefully examined by producing disequilibrium between the driving a vehicle and the restraining forces. By figuring out the "field"- term discussing the current specific attitudes and beliefs within a group - change real estate agents will be ready to move ahead, from the so-called "status quo" position, into the next stage called the "move" or "change" level (Burnes, 2004a). At this time change managers are required to create a plan that will initiate the need for change amongst their employees. The change realtors are expected to influence their workers and initiate approval and adaptation to the new functions, by strongly concentrating on determination and support. Finally, the 3rd and the last level is the so called "refreezing" stage where the role of the change managers is to successfully put into action the change strategy (in conditions of norms, routines, plans, and culture) and ensure that these newly accepted changes aren't at the mercy of deterioration (Burnes, 2004b)

Even though Lewin's model is one of the very most widely used contributors to understanding the change management in a company, there are some critics that contain been developed over the past fifty years. Research shows that the implication of the model is useful in identifying the need, the sort, and the resources needed to apply a certain degree of change within the company. It implies that the change occurs only at the days when the need for change is identified and that, after the individual's values and behaviour are inspired and the sociable conflict is resolved, the change is accepted as a confident influence (Greener and Hughes, 2006). Studies propose that the model is dependant on simplistic assumptions that the firms operate as "static" and "mechanistic" environments and that the change would follow a clear design (Burnes, 2004a).

Victor and Franckeiss (2002) suggest that in the current highly globalized and highly competitive business community, inspired by the variations in civilizations, economies, and politics, change management is a occurrence occurring constantly and is also planned, revised and updated on a regular basis. It is considered to be a "must-do" factor of these day-to-day activities, and their future expansion and expansion ideas (Victor and Franckeiss, 2002).

Analysis of change initiative at Toyota

Toyota Motor Company is a multinational organization with its headquarters found in Toyota city and Tokyo- Japan and it is the world's leading automaker. Since its establishment in 1937, the company has successfully managed to expand globally joining the US market in 1957, Asia, Middle East, and China in 1962, and Europe and Africa in 1987. Today Toyota has its abroad bases in 27 countries and locations, as well as 52 development bases and 8 international offices. Toyota utilizes roughly 320, 808 employees in their directly associated companies around the globe not keeping track of the substantial number of indirectly employed dealers and suppliers. One of the primary differentiation strategies of the company is that they managed to keep the same organizational culture and strategy throughout the years with their existence. The business has their own "Guiding Concepts at Toyota" and the "Five Main Concepts of Toyoda" that contain been successfully put in place atlanta divorce attorneys Toyota subsidiary, stock, and even amongst their traders and suppliers. The main purpose of their rules is to keep their stakeholders determined and prompt to change anytime (Toyota, 2010). More detailed information on the Toyota principles can be found in Body 2.

Figure 2

"Guiding Guidelines at Toyota"

Honor the words and nature of the law of every country and undertake open up and fair corporate and business activities to be a good commercial citizen of the world.

Respect the culture and customs of every nation and donate to economic and sociable development through corporate and business activities in the communities.

Dedicate ourselves to providing clean and safe products and enhancing the quality of life almost everywhere through all our activities.

Create and develop advanced systems and provide outstanding products and services that match the needs of customers worldwide.

Foster a corporate culture that increases individual imagination and teamwork value, while honoring common trust and esteem between labor and management.

Pursue development in harmony with the global community through innovative management.

Work with business companions in research and creation to accomplish stable, long-term expansion and common benefits, while keeping ourselves open to new partnerships.

"Five Main Ideas of Toyoda"

Always be faithful to your tasks,

thereby adding to the Company and to the entire good.

Always be studious and creative, trying to stay prior to the times

Always be practical and steer clear of frivolousness.

Always make an effort to build a homelike atmosphere at work that is warm and friendly.

Always have esteem for God, and be sure you be grateful at all times.

Note: Table is taken from the official website of Toyota Engine Corporation.

Since the delivery of Toyota, the company's philosophy has been based on successfully "contributing to the society", meaning identifying the local cultural and social dissimilarities and creating products that will gratify the needs and would like of the local customers all around the world. Through the entire years the company has managed to match its corporate principle of delivering "glocal products" by creating a business model that is principally a mixture of localization for his or her global market segments (Toyota, 2010).

Although keeping their particular commercial culture and principles, and putting into action the same business strategies and concepts to do business all over the world, they have managed to identify and bring innovativeness to the international marketplaces. The key behind this success is in the regiocentric management orientation. The company has effectively managed to spot the variations and similarities in the home and variety countries and develop local view that allowed them to bring changes into their company, starting with the development of few global labels of their products with localization content, and producing special training and support programs that will support the cultural distinctions and will allow their new employees to combine with the business easier (Toyota, 2010).

Toyota is one of the worlds well known companies not only because of their successful business plan that has been put in place at home and abroad, but also for their innovative change that made their management strategy stay the same over the years. By expanding the Toyota Development System or TPS which is the "method of managing people involved in work that emphasizes frequent speedy problem resolving and work redesign", the business has set the global model for successful performance and production (Thompson et al, 2003). The model was actually developed in the 1970's and it was mainly used to facilitate production and increase the speed. Over the last several ages the model was extensively accepted by many companies working in different establishments. The real reason for the adoption of the model lies in the attempts of Toyota to bring frequent change through experimenting and applying new concepts to the already existing processes (Spear, 2004).

But what is the primary drive behind successfully applying the TPS strategy? Relating to Parks (2002) Toyota has been the only company that has managed to apply the procedure without facing major failures. He boasts that for adding such innovative procedure, the whole organizational culture and management should experience the necessary changes. At Toyota the changes always start with their stakeholders. All of the ideas and possible solutions to the prevailing problems are made from their workers from all around the globe. The alternatives are mentioned and are executed within their experimental processes after which the final assessment is performed. After the decision is manufactured, extensive "cross-functional" training programs are inducted to be able to "have beneficial multifunctional staff" who will understand the processes and the implementation of the new strategies. In order to get the desired results, strong change management is necessary that will provide guidance and can bring about disciplined and effective execution of the change strategies (Parks, 2002).

Having a solid management that helps bring about "open up and fair corporate and business activities" involving all of the company's employees, presenting diversity programs that support the different ethnic backgrounds, and carrying out a clear group of guidelines ("The Code of Execute") enacted by considerable on-site training activities, is the key factor for success of Toyota's change management functions and strategies (Toyota, 2010).

Conclusion

Although the value of having an efficient change management has been launched more than five decades ago, it appears that in today's business world its value and implementation has a greater influence and application among the companies operating in various market sectors. Globalization and internationalization got significantly influenced the firms to adopt the change management strategies. Working on different markets surrounding the world requires conformity with the neighborhood civilizations, economies, and politics that happen to be the key factors for success of a global company. The main issue is to manage to generate synergies between your "home" business strategy and commercial culture and the "host"- local cultures and procedures. Although it might seem just like a logical transformation that must be done, without utilizing strong change management procedures that'll be based on the distinctions and similarities of the market segments and the folks, administering change can change out to be one of the most difficult processes.

Following the example of Toyota, to be able to have successful change management teams and change strategies that might be accepted within a company, professionals should stress out the value of most of their employees. By becoming part of the situation resolving and decision making processes, managers would get the possibility to understand the ethnical backgrounds of their workers and eliminate the factors that might influence their patterns. Alternatively the employees would feel involved and encouraged and the execution of the possible changes would bring about positive outcomes. This is the reason why through the years Toyota has were able to keep carefully the same organizational culture and strategy, yet always having the ability to bring innovativeness and set in place benchmark for other companies on the marketplace to follow.

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