Toyota, led by bureaucratic management has not stifled innovation. In fact, rigidity of leadership functions has led to the management by objectives (MBO) style of leadership decision-making. MBO, while criticized for rigidly, works. Look at Chrysler under the leadership of Lee Iacocca, who led the way in the automotive industry during challenging times. Toyota has relied on the expertise-based structure that has led them to achieve amazing success. Leaders must learn to adapt to the local awareness and authentic leadership necessary to meet the needs of customers worldwide. Our practice of training executives has led to applying management theories that work and abandoning those that do not. Management fads come and go but we feel that authentic leadership remains the heart of the Toyota way and this must manifest itself worldwide to help the organization, as a whole, reap the success. In this opinion article, we will look at Toyota's organizational design and leadership model and examine its advantages and disadvantages.
About Rutgers Business Review
Australian Institute of Management, Australia
Mostafa Sayyadi is an international management consultant. He works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders.
Michael J. Provitera
Barry University, USA
Michael J. Provitera is a senior faculty professor of Management and Leadership, in the Andreas School of Business at Barry University, Miami, Florida, USA. He is the author of Level Up Leadership: Engaging Leaders for Success, published by Business Expert Press.
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