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. It represents the hierarchy of an organization (Abramowicz, 2009). This paper discusses about the organization structure of Toyota organization.
Organization Structure of Toyota
Each firm establishes an organization structure that identifies the responsibilities for employee’s and relationship among them. Organizational structure is based on span of control, organizational height and use of line versus staff position. Toyota follows the matrix organization structure. The Toyota organization structure is designed to support teamwork. Toyota followed the power of coordinated team structures (Toyota, 2011). The goal of the Toyota is setting up the ideal organization structure. It helps to clearly understand the purpose and objectives of the organization by everyone. Toyota divided the jobs and responsibilities according to the functions, divisions, department, groups etc.
Matrix structure divides authorities of functions and product structures. In the Toyota structure, Leaders play a key role in the success of the company. The Toyota has few layers of the span of control of leader at the bottom of organization. Their philosophy is to separate responsibility to the lower level. This helps for decision making and smooth flow of information for achieved the objectives. Team leader and group leaders have three basic responsibilities. These are supporting of operations, promotional of the system and leading change. The group leaders play a crucial role in the development of the Toyota structure (Liker & Hoseus, 2008).
Traditional Organization Structure: In the traditional organization structure, organization given authorities and responsibilities on top management. There is no middle management. This system works effectively in the small companies. Toyota follows the matrix organization structure. It provides the authorities and responsibilities of the lower level also. In this structure, employee’s also participated of organization decisions and given their suggestions also.
Divisional organization structure: In this structure a team focuses on a single product or services. So that one division will separate to another division. There is no coordination between two divisions. Divisions must be well managed otherwise they are not success. Lower level is not participated in the organization decisions. Toyota follow the matrix structure, in this structure members of different groups working together to develop a new product line (Graubner, 2006).
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