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Organizational culture
› Toyota Motor Corporation is a Japanese multinational
automotive manufacturer headquartered in Toyota, Aichi,
Japan. It is the sixth largest company in the world by
revenue and Toyota is the largest automotive
manufacturer and world first automobile manufacturer to
produce more than 10 million vehicles per year. It is the
largest listed company In Japan by market capitalization.
The company was founded by Kiichiro Toyota in 1937
Industry: Automobile
Founded: 28 august,1937
Founder: Kiichiro Toyota
Headquarters: Toyota city, Japan
Area Served: World Wide
Products:
 Automobiles
 Luxury vehicles
 Commercial vehicles
 Engines
› Organizational culture is a system of shared assumptions,
values, and beliefs, which governs how people behave in
organizations. These shared values have a strong
influence on the people in the organization and dictate
how they dress, act, and perform their jobs. Every
organization develops and maintains a unique culture,
which provides guidelines and boundaries for the
behavior of the members of the organization.
› Innovation (risk orientation)
› Attention (precision orientation)
› Emphasis on Outcome (achievement orientation)
› Emphasis on People (Fairness Orientation)
› Teamwork (collaboration orientation)
› Aggressiveness (competitive orientation)
› Stability (rule orientation)
› Toyota Motor Corporation’s organizational culture defines the
responses of employees to challenges the company faces in
the market. As a global leader in the automobile industry,
Toyota uses its organizational culture to maximize human
resource capabilities in innovation. The company also
benefits from its organizational culture in terms of support for
problem solving. The different features or characteristics of
Toyota’s organizational culture indicate a careful approach in
facilitating organizational learning. The firm undergoes
considerable change once in a while, as reflected in the
change in its organizational structure in 2013. Toyota’s
organizational culture highlights the importance of
developing an appropriate culture to support global business
success.
› Following its reorganization implemented in 2013, Toyota’s
organizational culture underwent corresponding change. Prior to
2013, its organizational culture emphasized a sense of hierarchy and
secrecy, which translated to employees’ perception that all decisions
must come from the headquarters in Japan. However, after 2013,
the characteristics of Toyota’s organizational culture are as follows,
arranged according to significance:
Team Work
Continuous Improvement Through Learning
Quality
Secrecy
› Toyota uses teams in most of its business areas. One of
the company’s principles is that the synergy of teamwork
leads to greater capabilities and success. This part of the
organizational culture emphasizes the involvement of
employees in their respective teams. To ensure that
teamwork is properly integrated in the organizational
culture, every Toyota employee goes through a
teambuilding training program.
› Toyota’s organizational culture facilitates the development
of the firm as a learning organization. A learning
organization utilizes information gained through the
activities of individual workers to develop policies and
programs for better results. Toyota’s organizational culture
highlights learning as a way of developing solutions to
problems. In this way, the company is able to continuously
improve processes and output with the support of its
organizational culture.
› Quality is at the heart of Toyota’s organizational culture.
The success of the company is typically attributed to its
ability to provide high quality automobiles. To effectively
integrate quality in its organizational culture, the firm uses
Principle #5 of The Toyota Way, which says, “build a
culture of stopping to fix problems, to get quality right the
first time.” The Toyota Way is a set of principles that
defines the business approaches used in the company.
› Toyota’s organizational culture has a considerable degree
of secrecy. However, the level of secrecy has declined in
recent years following the reorganization of the company
in 2013. Before 2013, information about problems
encountered in the workplace must go through the firm’s
headquarters in Toyota City, Japan. However, following the
reorganization, the company’s organizational culture now
does not emphasize secrecy as much. For example,
problems encountered in US plants are now disseminated,
analyzed, and solved within the North American business
unit of Toyota.
› The characteristics of Toyota’s organizational culture
enable the company to continue growing. Innovation is
based on continuous improvement through learning.
Quality improvement and problem solving are achieved
through the activities of work teams. However, the secrecy
feature of Toyota’s organizational culture presents possible
drawbacks because it reduces organizational flexibility in
rapid problem solving.
 http://panmore.com/toyota-organizational-culture-characteristics-analysis
 https://iedunote.com/organizational-culture
 https://en.wikipedia.org/wiki/Toyota
 Naranjo-Valencia, J. C., Jimenez-Jimenez, D., & Sanz-Valle, R. (2011). Innovation or
imitation? The role of organizational culture. Management Decision, 49(1), 55-72.
 Shim, W. S., & Steers, R. M. (2012). Symmetric and asymmetric leadership cultures:
A comparative study of leadership and organizational culture at Hyundai and
Toyota. Journal of World Business, 47(4), 581-591.
 Toyota Motor Corporation (2015). Guiding Principles at Toyota.
 Toyota Motor Corporation (2015). Toyota Way 2001.

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Toyota's organizational culture

  • 2.
  • 3. › Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in Toyota, Aichi, Japan. It is the sixth largest company in the world by revenue and Toyota is the largest automotive manufacturer and world first automobile manufacturer to produce more than 10 million vehicles per year. It is the largest listed company In Japan by market capitalization. The company was founded by Kiichiro Toyota in 1937
  • 4. Industry: Automobile Founded: 28 august,1937 Founder: Kiichiro Toyota Headquarters: Toyota city, Japan Area Served: World Wide Products:  Automobiles  Luxury vehicles  Commercial vehicles  Engines
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  • 6. › Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs. Every organization develops and maintains a unique culture, which provides guidelines and boundaries for the behavior of the members of the organization.
  • 7. › Innovation (risk orientation) › Attention (precision orientation) › Emphasis on Outcome (achievement orientation) › Emphasis on People (Fairness Orientation) › Teamwork (collaboration orientation) › Aggressiveness (competitive orientation) › Stability (rule orientation)
  • 8. › Toyota Motor Corporation’s organizational culture defines the responses of employees to challenges the company faces in the market. As a global leader in the automobile industry, Toyota uses its organizational culture to maximize human resource capabilities in innovation. The company also benefits from its organizational culture in terms of support for problem solving. The different features or characteristics of Toyota’s organizational culture indicate a careful approach in facilitating organizational learning. The firm undergoes considerable change once in a while, as reflected in the change in its organizational structure in 2013. Toyota’s organizational culture highlights the importance of developing an appropriate culture to support global business success.
  • 9. › Following its reorganization implemented in 2013, Toyota’s organizational culture underwent corresponding change. Prior to 2013, its organizational culture emphasized a sense of hierarchy and secrecy, which translated to employees’ perception that all decisions must come from the headquarters in Japan. However, after 2013, the characteristics of Toyota’s organizational culture are as follows, arranged according to significance: Team Work Continuous Improvement Through Learning Quality Secrecy
  • 10. › Toyota uses teams in most of its business areas. One of the company’s principles is that the synergy of teamwork leads to greater capabilities and success. This part of the organizational culture emphasizes the involvement of employees in their respective teams. To ensure that teamwork is properly integrated in the organizational culture, every Toyota employee goes through a teambuilding training program.
  • 11. › Toyota’s organizational culture facilitates the development of the firm as a learning organization. A learning organization utilizes information gained through the activities of individual workers to develop policies and programs for better results. Toyota’s organizational culture highlights learning as a way of developing solutions to problems. In this way, the company is able to continuously improve processes and output with the support of its organizational culture.
  • 12. › Quality is at the heart of Toyota’s organizational culture. The success of the company is typically attributed to its ability to provide high quality automobiles. To effectively integrate quality in its organizational culture, the firm uses Principle #5 of The Toyota Way, which says, “build a culture of stopping to fix problems, to get quality right the first time.” The Toyota Way is a set of principles that defines the business approaches used in the company.
  • 13. › Toyota’s organizational culture has a considerable degree of secrecy. However, the level of secrecy has declined in recent years following the reorganization of the company in 2013. Before 2013, information about problems encountered in the workplace must go through the firm’s headquarters in Toyota City, Japan. However, following the reorganization, the company’s organizational culture now does not emphasize secrecy as much. For example, problems encountered in US plants are now disseminated, analyzed, and solved within the North American business unit of Toyota.
  • 14. › The characteristics of Toyota’s organizational culture enable the company to continue growing. Innovation is based on continuous improvement through learning. Quality improvement and problem solving are achieved through the activities of work teams. However, the secrecy feature of Toyota’s organizational culture presents possible drawbacks because it reduces organizational flexibility in rapid problem solving.
  • 15.  http://panmore.com/toyota-organizational-culture-characteristics-analysis  https://iedunote.com/organizational-culture  https://en.wikipedia.org/wiki/Toyota  Naranjo-Valencia, J. C., Jimenez-Jimenez, D., & Sanz-Valle, R. (2011). Innovation or imitation? The role of organizational culture. Management Decision, 49(1), 55-72.  Shim, W. S., & Steers, R. M. (2012). Symmetric and asymmetric leadership cultures: A comparative study of leadership and organizational culture at Hyundai and Toyota. Journal of World Business, 47(4), 581-591.  Toyota Motor Corporation (2015). Guiding Principles at Toyota.  Toyota Motor Corporation (2015). Toyota Way 2001.