TOYOTA KIRLOSKAR MOTOR INTRODUCTION OF THE COMPANY

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TOYOTA KIRLOSKAR MOTOR

INTRODUCTION OF THE COMPANY

Towards the end of the nineteenth century, Sakichi Toyoda invented Japan's first

power loom, revolutionizing the country's textile industry. January 1918 saw him create the

Toyoda Spinning and Weaving Company, and with the help of his son, Kiichiro Toyoda,

Sakichi fulfilled his lifelong dream of building an automatic loom in 1924. The establishment

of Toyoda Automatic Loom Works followed in 1926. Kiichiro was also an innovator, and

visits he made to Europe and the USA in the 1920s introduced him to the automotive

industry. With the £100,000 that Sakichi Toyoda received for selling the patent rights of his

automatic loom, Kiichiro laid the foundations of Toyota Motor Corporation, which was

established in 1937. One of the greatest legacies left by Kiichiro Toyoda, apart from TMC

itself, is the Toyota Production System. Kiichiro's "just- in-time" philosophy - producing only

precise quantities of already ordered items with the absolute minimum of waste - was a key

factor in the system's development. Progressively, the Toyota Production System began to be

adopted by the automotive industry across the world.

Rising from the ashes of industrial upheaval in post-war Japan, Toyota has become the

largest vehicle manufacturer in Japan with over 40% market share. Toyota began to make

inroads into foreign markets in the late 1950s. The first Crown models arrived in the USA in

1957, and by 1965, with models such as the Corolla, Toyota began to build its reputation and

sales to rival those of domestic producers. The first Toyota imported into Europe was via

Denmark in 1963. Toyota has continued to grow in Europe's sophisticated and complex

market, and in 2000 the company delivered its ten millionth cars to a customer in Germany.

In fact, growth is currently one of the main words in Toyota's European vocabulary, and the

company plans to reach annual sales of 800,000 in Europe by 2005. Toyota is number one for

customer satisfaction in the majority of European countries and has built an excellent

reputation across Europe for reliability and customer service. This enviable reputation, along

with the support of a network of more than 25 distributors and 3,500 sales outlets, are

important factors in supporting Toyota's European sales growth in the coming years.

Starting with the bicycle business Laxman Rao created fodder cutter machine. During

1910 first Industrial Township was made by Kirloskar group. Today Kirloskar group is

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India‟s largest engineering and construction conglomerate. The Kirloskar group is made up of

8 major group companies which export to over 70 countries. The Indian promoter Kirloskar

group is a century old industrial legacy having a strong presence in various segments of

engineering industry. The Kirloskar group is engaged in manufacturing of transformers,

electric motors, diesel engine, compressors, and machine tools. The group is mainly

concentrated its manufacturing facilities in and around Karnataka and Maharashtra. It is still

spurred by the simple yet profound ethic born with Laxman Kirloskar that where there is will

there are many ways.

Toyota Kirloskar Motor Private Limited is a joint venture of between Toyota

Motor Corporation and Kirloskar Group for the manufacturing and selling cars in India. It is

currently the 4th

largest car maker in India after Maruti Suzuki, Mahindra, Tata.

The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its

mission statement aims to play a major role in the development of the automotive Industry

and the creation of employment opportunities, not only through its dealer network, but also

through ancillary industries with a business philosophy of “Putting Customer First”.

Toyota Kirloskar Motor’s current plant in the outskirts of Bangalore at Bidadi,

Karnataka is around 432 acres and has a capacity of 90000 vehicles per annum. Its second

manufacturing plant has a capacity of 12000 vehicles per annum. Both plants have a

combined capacity of 210000 vehicles per annum.

http://en.wikipedia.org/wiki/Bangalore

http://en.wikipedia.org/wiki/Bidadi

http://en.wikipedia.org/wiki/Karnataka

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LITERATURE REVIEW

Japanese culture, as understood by most, is collectivist in nature where a lot of importance is

given on “face” value. Japanese culture is not just driven by collectivism, but also by

communitarism; capitalistic profits are interpreted as an element to welfare of society.

Members of the society work in unison and synchrony and rely on one another to do their

jobs. People‟s behaviour is determined by one rule – institution; group of custom, habits,

mannerism. The organisational structure and economy of the country is an outcome of the

cultural affinity of the people. Commonly shared views, norms, values have their source in

culture, history and system accepted by the society in large. Japanese are influenced by

Confucian philosophy of life which emphasises on loyalty, education, hard work and inter

personal relationship.

With the advent of globalisation and interdependence of businesses Japanese organisations

cannot remain isolated. Globalisation no more is considered as Americanisation. Japanese

businesses emphasises on long term goals and build relationships with its partners and

stakeholders that can last a life time.

The organisation culture that prevails in Japanese business environment tends to be

hierarchical in nature with chain of command that is concentrate on the top. The national

culture, organisational culture, organisational value, leadership style and human resource

practises are interrelated with each other. Japanese organisation culture stresses on loyalty,

harmony and hard work, self-sacrifice and consensual decision making. Japanese

organisation is also characterised by life time employment and seniority based promotion

which is considered to be an outcome of Japanese national culture.

Japanese culture is evident even in the products and services they deliver. They promote not

only their business but also their culture as a product.

The acceptance of different cultures in a global business environment is a by-product of

globalisation.

There is a silent revolution going on in the business world; cosmopolitanism. Here, a person

considers himself/herself as a citizen of the world. They are no national boundaries and they

are no political affinity towards any single entity. Excellence, efficiency and

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conscientiousness are factors that will determine an organisation success not just locally but

also on a global scale.

With the establishment of Japanese organisations abroad, India in this case, a lot of cultural

entanglement is the order of the day. Difference in work culture, leadership style,

organisation structure and work ethics are evident as a result of differences in their core

beliefs.

Japanese organisations need to adapt and adopt as per the working condition prevailing

around them. Their management practices need not necessarily be applicable from Indian

context. A lot of changes, adjustments and moderation will be required in order to develop a

working system that will meet the organisational objectives while keeping in mind the

expectations place by the employees. Conflicts of any kind need to be dealt with outmost

sensitivity and discretion which will enable the management and its employees to resolve

issues effectively.

For instance, Toyota learnt the importance of culture in a hard way. During the 2010 gas

pedal recall, the Toyota Motor Corporation suffered a Public Relations (PR) crisis which was

mainly due to miscommunication and misunderstand of culture between PR practitioners,

where American‟s believe in transparency if any crisis situation happens but Japanese culture

is believes in working silently to resolve the problem before going to the media. This

indicated that the executives were not having cultural awareness and made them understand

that “Communication across Cultures” are very necessary for successful business.

This sets a precedent wherein cultural sensitivity becomes imperative in order to ensure a

conducive working environment. Globalisation is no more just a process it is a necessity

which needs to be addressed if one wishes to remain competitive in the global market and

cultural sensitivity plays a pivotal role in ensuring that globalisation is a success.

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RESEARCH OBJECTIVES

1. To study the effect of Japanese work culture on decision making and management

control in TKM.

2. To study the effect of Japanese leadership style on management practices of Toyota

Kirloskar Motor.

3. To study the effect of CCC and negotiation on the decision making process of Toyota

Kirloskar Motor.

RESEARCH QUESTIONS

1. What are the factors in Japanese work culture that affects leadership style in Toyota

Kirloskar Motor?

2. What is the relationship that prevails between all factors at Toyota Kirloskar Motor?

3. How are Japanese management practices put in line with Indian work culture in

Toyota Kirloskar Motor?

HYPOTHESIS

Ho1: Work environment can affect leadership style in Toyota Kirloskar Motor.

H11: Work environment can not affect leadership style in Toyota Kirloskar Motor.

H02: Work environment can affect the Communication and Negotiations in Toyota Kirloskar

Motor.

H12: Work environment can not affect the Communication and Negotiations in Toyota

Kirloskar Motor.

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RESEARCH METHODLOGY

SOURCES OF DATA

The data needed for this study has been collected from two sources. They are:

a) PRIMARY DATA

Primary data are those, which are collected for a specific purpose directly from the field of

enquiry and are original in nature. The primary data includes the details of the Organization

culture, work ethics, values, decision making and leadership style.

DATA COLLECTION

The number of employees in this study is 15. The information is gathered from the employees

individually.

RESEARCH INSTRUMENT

Research instrument means the instrument employed in research for gathering the data.

In this study the primary data is collected through

1. In-Depth Interview

2. Questionnaire

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DATA ANALYSIS

Questionnaire

8. Management makes all the decisions in the organization

Strongly Agree Agree Neutral Disagree Strongly

Disagree

0 8 2 5 0

Inference: most of the employees rated that management makes most of the decisions in the

organisation. This makes the organization more bureaucratic in nature. Though ideas are

appreciated by management, final decisions are bound to be what top management feels.

9. Management respects everybody’s views in the organization


Disagree

4 1 5 4 1

0

1

2

3

4

5

6

7

8

9

StronglyAgree

Agree Neutral Disagree StronglyDisagree

Series1

8

Inference: 33% of the employees responded that management respects everybody‟s views in

the organisation. From the graph, we could see the responses are highly distributed on both

sides.

10. I am satisfied with my personal space in the organization


Disagree

2 2 3 6 2

27%

6%

33%

27%

7%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

0 1 2 3 4 5 6 7

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Series1

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Inference: Most of the employees feel that they don‟t have personal space in the

organisation. Though the organization provides the employees with different facilities, there

is always a difference of culture inside organization where Indian employees‟ think Indian,

but management think Japanese.

11. I am satisfied with the Work/Life balance in the organization


Disagree

5 6 4 0 0

Inference: Most of the employees are satisfied with the work-life balance provided by the

organisation. Organization on a whole might not provide the employee with the personal

space they want. But the management always are concerned about the employees and their

work-life balance.

0

1

2

3

4

5

6

7

StronglyAgree


Series1

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12. Management encourages entrepreneurial behaviour within the organization


Disagree

2 3 4 6 0

Inference: employees disagree that management encourages entrepreneurial behaviour

within the organisation. Toyota is a manufacturing company. So the organization on a whole

does not encourage employees to have more of entrepreneurial mid set.

13. I am satisfied with the cross cultural training


Disagree

7 5 3 0 0

13%

20%

27%

40%

0%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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Inference: Employees are happy about the cross cultural training in the organisation. Since

the organization deals with multi-culture, it is more concerned about the employees following

the parent nation culture, which is more prevalent.

14. I am satisfied with the language training


Disagree

7 4 4 1 0

0 2 4 6 8

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Series1

0

1

2

3

4

5

6

7

8

StronglyAgree


Series1

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Inference: Most of the employees are satisfied with the language training. Just like cross

cultural training, Language training is also considered to be one of the most important

training.

15. I want to have a long term association with my organization.


Disagree

9 4 2 0 0

Inference: Most of the employees want to have a long term association with the organisation.

The employees never want to leave the organization because of what the Japanese work

culture is. Long Term Employment Guaranteed.

16. The organization recognizes my special occasions (Birthdays, Anniversaries, etc.,)


Disagree

10 4 1 0 0

60%

27%

13%

0% 0%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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Inference: Most of the employees are happy that their special occasions are being recognised

by the organisation. Its yet another culture in Japanese work to make the employees feel at

home by celebrating their special occasions, and it is followed here.

17. The organization recognizes my contribution


Disagree

0 4 4 7 0

0 2 4 6 8

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Series1

67%

27%

6%

0% 0%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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Inference: Employees sense that they are not recognised for their contribution. Since the

decision making inside organization comes from top management, there is a sense of disagree

in the lower level management employees‟ contributions go un-identified most of the time.

18. Individual works are preferred to group works


Disagree

4 8 3 0 0

Inference: employees sense that organisation values individual work to group work.

Japanese work culture is more or less individualistic in nature. So organization prefers

employees to work individually.

19. My Department Head is easily approachable


Disagree

1 2 4 6 2

27%

53%

20%

0% 0%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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Inference: 40% of the employees feel that department head is not easily approachable in

terms of any idea discussion or problem solving. The grievance procedure in this organization

should go through immediate supervisors.

20. I have access available to all information relevant to my job


Disagree

1 4 9 1 0

7%

13%

27% 40%

13%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

0

2

4

6

8

10

StronglyAgree


Series1

16

Inference: Employees responded neutrally for the access of information to the job.

Organization is more concerned about the work to be done. So the employees are provided

with all possible information regarding their work.

21. I am always involved in the decision making process


Disagree

0 3 0 4 8

Inference: 53% of the employees said that they are not involved in the decision making

process. Organization believes in taking decision at top level. So, most of the time employees

at middle level or lower level management are not involved in decision making.

22. We have a diverse workforce


Disagree

1 10 4 0 0

0%

20%

0%

27%

53%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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Inference: Most of the employees agree that the organization has a diverse workforce.

Employees in organization are from different background and from different parts of country.

So cultural diversity is more common inside organization.

23. Promotion opportunities are yearly basis.


Disagree

0 2 3 7 3

Inference: Employees are not content with the promotional opportunities. Japanese are

known for providing seniority based career progression rather than merit-based.

0 2 4 6 8 10 12

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Series1

0%

13%

20%

47%

20%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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24. I am satisfied with the work culture of the organization


Disagree

0 4 9 2 0

Inference: Most of the employees are neutral towards the work culture. On the whole,

Toyota as an organization prides you a neutral experience in terms of work culture, work-life

balance and other factors.

25. I would recommend my organization to my friends or relatives


Disagree

0 10 2 3 0

0

2

4

6

8

10

StronglyAgree


Series1

0%

67%

13%

20%

0%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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Inference: Most of the employees would like to recommend the company to their near ones.

Though the organization has few flaws regarding employee consideration during decision

making, they are known for long-term employment, good compensation structure, good

benefits and much more. So the employees always feel happy to recommend the organization

to others.

INTERVIEW

1. Please describe the work culture of Toyota India.

Employee 1: Work culture here is predominantly based on group effort. Lot of

emphasis is given on ensuring that everyone within the organisation works for the

organisations growth.

Employee 2: Here, execution of work is done by employees at the base of the

pyramid while major decisions are taken by the ones of the top. It is very hierarchical

in nature.

Employee 3: I am happy with how work culture is set here. Our jobs are defined and

structured. There is a system in place for anything and everything one might

encounter in the process.

Employee 4 (Japanese): Indian work culture is a good mix of western and eastern

practices. It is very accommodating and perceptive in nature. Hard work comes

naturally to the employees while employing innovation and creativity.

Employee 5 (Japanese): In my opinion, the employees in the company are very eager

and intelligent. They are quick learners and consistent. It‟s a pleasure to work with

them. We have a very warm and accommodating work environment.

2. How do you see Japanese work culture fitting in context with the Indian work culture?

Employee 1: It is difficult to adjust to a new work culture overnight. But, I am

positive we can fit the two form of work culture effectively.

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Employee 2: Japanese are very disciplined people. In comparison, Indians are

relatively slack. It‟s hard to cope up with their strict rules and regulations. But, I see

only benefit in adapting to the new work culture.

Employee 3: Japanese are the most efficient and disciplined people I have ever come

across. While it is very hard to adopt to their stringent and rigid rules, it has many

benefits which transcends beyond work life. They follow a code of ethics which is

clearly defined and coded.

Employee 4 (Japanese): I have been facing difficulty in adjusting to the work culture

of Indian workmen and employees. Although, I don‟t see why we cannot fit our

culture into theirs‟. It‟s a matter of give and take. Take the positives aspects they hold

and merge it with ours.

Employee 5 (Japanese): Both work cultures tend to be collectivist and hierarchical in

nature. We just need to adjust the way we perceive things according to Indian context.

It will take some time. But, it will make a good fit with a little effort and adjustments.

3. Do you feel that the management style affects your working style?

Employee 1: Japanese management is centralised in nature. So, it does affect one

working style very clearly.

Employee 2: Japanese management is all about group dynamics. It regulates every

individuals work style in order to be in sync with the bigger objectives. Hence, they

do affect ones working style.

Employee 3: They do affect the working style. Although, they have begun to make

changes to that and allow more room for employees to make their own decisions.

They do still keep a close watch over our activities.

Employee 4(Japanese): We do try to allow employees to be free to do what they like.

But, their actions need to be in sync with our core values and beliefs. As a result, we

do monitor employees closely.

Employee 5 (Japanese): Japanese management is based on close supervision and

control. Although, we have been making changes to such practices now with advent

of globalization. We are trying to give employees more freedom and developing

systems to give scope for experiments and tolerance to failure.

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4. Is there a free flow of information of information that prevails throughout the

organisation?

Employee 1: Not really. Information is top to bottom.

Employee 2: No. We usually take the instructions from the supervisors and are

expected to follow them as per the guidelines. There is no room for exchange of

information.

Employee 3: Only miniscule. With changing dynamics of business environment, the

management has given more scope to allow flow of information across all verticals

Employee 4 (Japanese): Yes. We like to know how employees feel about the

management‟s role in the organisation. That helps us to ensure that we are on the right

track and keep our employees happy.

Employee 5 (Japanese): Not as per the standards expected. Japanese management do

not like to take criticism. As a result, they prefer only to push the information down

the line. Although, the management has recognised the need for a better and flexible

flow of information that will help understand the problems faced by the organisation

and its employees.

5. What changes would you recommend to the management?

Employee 1: I am happy with the way things are at the moment. So, I don‟t have any

recommendation atleast for the moment.

Employee 2: I would like for the management to give more flexibility to the

employees and allow them to explore different avenues of the job where they can use

their expertise and skill to add value to the organisation.

Employee 3: The management needs to be more tolerant towards failure and allow

employees to pitch in with their skills and abilities which can help identifying

ventures and practices that can prove beneficial for the organisation

Employee 4 (Japanese): The managements need to adapt according to the changing

trends of the business environment while keeping their goal in focus. It can‟t remain

bound to age old practices which can become obsolete over time.

Employee 5 (Japanese): The management needs to focus on controlling the work

environment to an extent where their objectives are met and kept in line. While

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maintaining control over the various elements of an organisation is prudent. It should

not become totalitarian in nature. This would hurt the organisations interest.

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REFERENCES

Bhaduij, B (October – December 1991). Work Culture: An exposition in the Indian

Context., Vol 16, No 4.

Jakanis, A (November 2009) Culture of Japanese organization organization and basic

determinants of institutional economy. In Journal of Intercultural Management, pp.

90 – 104.

Matanle, P. (2006) Beyond lifetime employment: Re-fabricating Japan‟s employment

culture, In P. Matanle and W. Lunsing (eds) Perspectives on work, employment and

society in Japan, Basingstoke, UK: PalgraveMacmillan: 58-78.

Basu, D. & Miroshnik, V. (2003) National Culture, Organizational Culture and

Corporate Performances of Japanese Multinational Companies: A structural equation

modelling approach. Keiei to Keizai, Vol.83 No.3.

Alexis, H. Negotiation with the Japanese from a westerner point of view. Institut De

Gestion De Rennes.

Liker, P (2003). Toyota Way. Pg 35 – 41.

Nichols, A. Toyota‟s Cultural Crisis.

Goldstein – Gidoni, O. (2005) The Production and Consumption of „Japanese

Culture‟ in the Global Cultural Market. Journal of Consumer Culture, Sage Publi

cations.

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APPENDIX:

QUESTIONNAIRE

This research is conducted purely for the study purpose and I assure you that the

information given by you will not be shared for any other purpose or revealed to

anybody.

1. Name:

2. Gender:

3. Age:

4. Designation:

5. Experience:

6. Tenure:

7. Nationality:

8. Management makes all the decisions in the organization

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree 5. Strongly Disagree

9. Management respects everybody‟s views in the organization


10. I am satisfied with my personal space in the organization


11. I am satisfied with the Work/Life balance in the organization


12. Management encourages entrepreneurial behaviour within the organization


13. I am satisfied with the cross cultural training


14. I am satisfied with the language training


15. I want to have a long term association with my organization.


16. The organization recognizes my special occasions (Birthdays, Anniversaries, etc.,)


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17. The organization recognizes my contribution in the organization


18. Individual works are preferred to group works


19. My supervisor is easily approachable


20. I have access available to all information relevant to my job


21. I am always involved in the decision making process


22. We have a diverse workforce


23. Promotion opportunities are yearly basis.


24. I am satisfied with my work culture of the organization


25. I would recommend my organization to my friends or relatives


Suggestions:

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INTERVIEW

1. Please describe the work culture of Toyota India.

2. How do you see Japanese work culture fitting in context with the Indian work culture?

3. Do you feel that the management style affects your working style?

4. What changes would you recommend to the management?

5. Is there a free flow of information of information that prevails throughout the

organisation?

TOYOTA KIRLOSKAR MOTOR INTRODUCTION OF THE COMPANY

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