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Organizatio

nal

TOYOTAS TEAM
CULTURE

The Think Tank Presents - Toyota's Team Culture

Behavior
Presented by
Group One - Team
10

THE

THINKTANK NEWS
COLOMBO EXCLUSIVES

FEBRUARY EDITION

TOYOTA
TIMELINE

200
8
199
7
193
7

Toyota
Motor
Co., Ltd.
establish
ed

Prius, the
world's
first massproduced
hybrid car

201
3

Toyota
surpasses
GM as the
top-selling
carmaker

201
4

Sales of
9.98 million
units (2.4%
growth)
makes
Toyota the
#1
automaker

Theyre Going
for It: Toyota
to sell 10.32
million units
making them
the first
automaker
ever to
surpass 10
million global
sales!

Each person
fulfilling his or her
duties to the
utmost can
generate great
power when
gathered together

How Toyota sees Team


Culture
Deemphasizes individualism in favor of
collectivism
Hiring the Toyota Man
Team based Work Structure
Team = Organizations Power Centre

- Kiichiro Toyoda
The Think Tank Presents - Toyota's Team Culture

Theoretical Perspective.
Organization Culture
A system of shared
meaning held by
members that
distinguishes the
organization from

Team Orientation

Team

A group whose
The degree to which

individual efforts result

work activities are

in performance that is

organized around

greater than the sum

teams rather than

of the individual

individuals

inputs

other organizations
The Think Tank Presents - Toyota's Team Culture

(Robbins & Judge, 2013,


p.512,513 )

Has Team Culture Ushered Toyota to its


Success
?
Case Perspective
The Toyota Way

Team Culture and Toyota


Success
Respect for people in
recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans

Continuous
Improvement

Respect for People

Challen
ge

Genchi
Kaizen

Genbuts
u

Respect

Teamwo
rk

Toyota define team work as Working together at all level of the


enterprises from board room to the shop floor, actively promoting
individual initiative within the group, so that all team members are
given the opportunity to do and be their best.
The Think Tank Presents - Toyota's Team Culture

Characteristics of Toyota Team Culture


Case Perspective
Team Culture and Toyota
Success
Respect for people in
recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans

Factory work
arranged around
work teams

5- 10 members in each team


At every level of functions sales,
marketing, finance, engineering

Training provided
through work teams

work teams are free to hire new


members

Emphasize on
efficiency and cost
reduction

incorporate with Toyota management


concepts
just-in-time production
automation with human touch
flexibility and creativity

Workers act as problem reduce inventory, identify hidden


solvers
problem and fix them
reduce performance gap in the
production process
Toyota has no trade
The Think Tank Presents - Toyota's Team Culture
unions

Has Team Culture Ushered Toyota to its


Success
?
Toyota and its achievements
Case Perspective
Team Culture and Toyota
Success

Top selling automaker


9.98 M units sold in year 2013
2.4 % gain over year 2012

Respect for people in


recessionary times

Target set in year 2014

DCH to Adapt Toyota


Culture
The Toyota Way & SriLankans

predicted to increase sales to 10.32 M


first automaker ever to surpass 10 M sales
Reasons behind the success of Toyota
Toyota way combined with Team culture paved the way to
won the sales race and to remain more profitable than
GM -- Akio Toyoda
The Think Tank Presents - Toyota's Team Culture

CAMARADERIENO LAYOFF POLICY IN TIME OF RECESSION


Case Perspective
Team Culture and Toyota
Success
Respect for people in
recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans

Drastic drop in GDP


Reduced Purchasing
Power
Downfall of
Investment
Large Scale
Retrenchment
Global
Economic
Recession :
2007 2010

Production
reduced by 17.5%
Revenue loss of
21.9%
Impact to Toyota
in
2009

FIRST-EVER QUARTERLY LOSS!!!


The Think Tank Presents - Toyota's Team Culture

TOYOTA'S MANAGERS TOOK A 10 % PAY


CUT!!
Creating a Climate of
Case Perspective

Team Culture and Toyota


Success
Respect for people in
recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans

Trust

Team Effectiveness

Accepting the Loss as ONE TEAM


Sacrifice individual needs for the benefit of
the team

Job security in uncertain times


Loyalty & Commitment = Motivation &
Performance

The Think Tank Presents - Toyota's Team Culture

Employee Satisfaction
Case Perspective
Team Culture and Toyota
Success
Respect for people in
recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans
FY2010 Results of Employee Satisfaction Survey, adapted from Toyota Relations with Employees (2014)

The Think Tank Presents - Toyota's Team Culture

10

POSSIBLE RISKS
Case Perspective
Team Culture and Toyota
Success
Respect for people in
recessionary times

Failur
e of
nolayo
ff
polic
y in
2012

Hit to
the
profitabil
ity from
nolayoff
policies
in 2010

Hit to
Toyota
s
Goodwi
ll

DCH to Adapt Toyota


Culture
The Toyota Way & SriLankans

The Think Tank Presents - Toyota's Team Culture

11

Dog Eat Dog Culture & Auto-Dealership


(DCH)
DCH
Case Perspective
KIA

KIA

Team Culture and Toyota


Success

TOYOTA

TOYOTA

BMW

BMW

Respect for people in


recessionary times

HONDA

HONDA

DCH to Adapt Toyota


Culture
The Toyota Way & SriLankans

Car Companies Sell Cars


To the Dealer with a
Good margin and Price

Custom
er

Car Dealer Sell Cars


To the Customer for the agreed price and in
addition they prioritize on the High Quality
Service they offer

Figure.4 - DCH BUSINESS MODEL adapted from information found on the DCH
Corporate Website, http://www.dchauto.com/

The Think Tank Presents - Toyota's Team Culture

12

Eastern vs. Western & Toyota vs. DCH


Case Perspective

DCH

Team Culture and Toyota


Success
Respect for people in
recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans

Toyot
a
Groom in
Relationship

Individualistic

Religion
Oriented

Logical

Believe
Harmony
More
Free from
co
ntrollability
constraints
with
environment
TEAM CULT
URE

The Think Tank Presents - Toyota's Team Culture

13

THE GAP for Adaptation - DCH


Case Perspective
Team Culture and Toyota
Success

Individual
Sources

Habit
Economic
factors
Fear of the
unknown

Respect for people in


recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans

Organizatio
nal Sources

The Think Tank Presents - Toyota's Team Culture

Structural
inertia
Group inertia
Threat to
expertise
14

DCH Toyota Bridge


Case Perspective
Team Culture and Toyota
Success
Respect for people in
recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans

Developing a culture of team


building
Practice of Team building
Activity Planning
Celebrate your staff

The Think Tank Presents - Toyota's Team Culture

15

Japanese Management & Toyota Way


Continuo
us
improve
ment

Case Perspective
Team Culture and Toyota
Success
Respect for people in
recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans

Collectivis
m

Toyota Way
values
traditional
Japanese
management
practices

Trust and
respect
for people

Lean
manufa
cturing
Flexibilit
y and
long
term
thinking
The Think Tank Presents - Toyota's Team Culture

16

Are we Sri-Lankans ready to accept Toyota?


Case Perspective
Team Culture and Toyota
Success
Respect for people in
recessionary times
DCH to Adapt Toyota
Culture
The Toyota Way & SriLankans

* Collectivism
- Legacy of social and legal
frame work support favor
this
- strong sense of group and
family loyalty
* Cultural orientation
supported by shared
values
* Social accountability
over quick achievement
of
* Higher prospects by
individuals
The Think
Tank Presents - Toyota's Team Culture

* High power distance


and respect for authority
* Accepting the status
quo and resistance to
change
* Dependence
* Lack of self-confidence
* Work is for livelihood
* Kinship and Respect for
Authority

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would
like to
hear
from
YOU!
The Think Tank Presents - Toyota's Team Culture

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