Toyota Financial Services Case Analysis - Essay Example

Toyota Financial Services Case Study Institution: Date: Table of Contents Table of Contents 2 Background 3 Toyota Financial Services 3 Ethical Issues and Values 4 Outcomes 5 1.Stronger Human Resource Management Team 6 2.Communication Process 7 3.Leadership Growth 7 Recommendations 8 Conclusion 12 Reference 13 Background ` Organizations can establish a management strategy and implementation procedure that goes well beyond the usual approach of employing training as the main or only methodology. There is need to grow a talent mind-set; a direction in which the talent of the organization mainly its people is identified as an important part of the advantage of the organization’s competition. However, orientation is not adequate. Institutions should also have domestic schemes that appreciate and support usage of improvement and other skill management procedures to exploit results, and they must hold those in leadership liable for implementing these processes (Berke, 2007). This calls for evaluating performance correctly and differentially investing in the growth of skill. In this situation, development has solid foundation since it is acknowledged for what it should be: a means to exploit performance and hence results. Toyota Financial Services The time frame that Toyota Financial Services (TFS) started an additional process of creating a leadership policy that mirrors both a direction toward performance and a solid foundation for enhancement is approximately five years ago. The strategic proposal began when the chief executive officer (CEO), George Borst, and the institution’s department of human resource (HR) recognized that TFS desired to adjust the way talent was being handled and developed. These are the people involved in the plan. TFS also identified that in order to accomplish this, many things needed to take place. When TFS started its plan, it was already beyond goals and growing into fresh markets (Venzin, 2009). However, the CEO intended to form an institution in which heads exploited their results by building up and growing the skills of their people. Borst realized that this was a lasting investment that would eventually support TFS’s organizational competence (Berke, 2007). He also realized that important cultural and infrastructure modifications would be required to strengthen long-lasting change. The outcome was that the CEO aligned with HR; giving that sector the chance and challenge to assist run TFS in this fresh direction- becoming an organization of higher performance. For TFS, an organization of higher performance is one that acknowledges performance, growth of people, result’s accountability, and great leadership- and that is constantly ready for amendment (Abilla, 2010). Ethical Issues and Values Ethical issues affect every organization; it can be positively or negatively. A number of features of TFS’s ethics include; a high value for people and association. Focus on humanizing the significance of life and sustaining the communities. When it comes to matters of integrity, there should be zero tolerance. The ethics of TFS has facilitated it to accomplish several achievements over the years. However, at times the institution lived out its custom values variably. For instance, respect for people and association is a solid ethic, since it is a constant progress. The values of TFS were occasionally perceived as conflicting. Therefore, strong performance was occasionally considered about standard or even poor performance. This made associates to question their hard work when excellent performance was not acknowledged. People become motivated when their effort is appreciated. So, associates felt a sense of power. Issues like duration of term had become major drivers for advancement of career. Altering the way administration and associates thought about TFS’s significance of performance needed a subtle balance- respecting the parts of TFS’s customs that would serve as the basis for amendment while redefining other features. In the real meaning, what TFS wanted to do was construct a culture in which heads could hold partners and managers responsible for performance, and align rewards and results accordingly (Berke, 2007). The ethical problems are credible because TFS wanted to produce steady managers who appreciate the growth of people, provide standard and straightforward feedback to partners to assist them exploit their performance (Berke, 2007). These adjustments may appear simple. But they basically affect all aspects of the work experience, including the expectations of leadership, choices of hiring, performance supervision, payment, management of talent, planning of succession, and development of associate. They need much more than basically rolling out fresh HR tools or programs of training. Outcomes In this case, there are good points found as part of leadership. To start with, the CEO wanted his higher-ranking management team to realize and buy into the reality that his prospect of them would change. Generally, the idea was to make senior managers to change how leaders are chosen, developed, and appreciated. The center was on skills of leadership rather than practical skills. The leading managers needed to maintain and lead these amendments via their day to day actions and resolutions. HR identified that it would as well require to partner in a different way with the business to show HR itself added significance. HR renamed its own performance prospects and competence and how it held itself responsible for performance (Berke, 2007). The adjustments included; obtaining and developing stronger logical, planned, and consultative potentials, redesigning HR consulting panels, and locating them physically with the business partners of the department, constructing an organizational growth panel to instill stronger organizational plan and development abilities, and improving the employment function to respond more efficiently to the need for fresh talent. 1. Stronger Human Resource Management Team Creating a powerful human resource management team was an extensive and occasionally painful process. However, it brought about a cooperative team that could associate with company leaders to channel through the modifications to come. At the start, HR only presented the idea of becoming an organization of higher performance. Leading managers agreed with the idea and wanted to back it up. But, since there were no particular performance plans or infrastructure alterations, the leading managers did not actually comprehend the features of what was being needed, what they would require to do in a different way or how it would alter the way they made decisions of leadership (Berke, 2007). TFS did the exceptional and filled a number of executive leadership vacancies with external candidates. This was of great help because fresh skills, knowledge, and initiatives were introduced into the company. This indicated that the alterations touched each level of the institution, and conveyed a patent meaning that in the future, getting forward at TFS would be more about the skills of leadership and knowledge needed to move TFS ahead and less concerning who was following in line. 2. Communication Process An ongoing process of communication was developed to keep partners informed on Maximizing Associate Performance (MAP) activities and to make sure that MAP remains at the head of managers’ thoughts. In order to achieve a good communication process in the company; The CEO played an important role, implementing verbal and written channel to strengthen his support by passing the message that MAP is a top concern. Regarding education, attempts have centered on improving the coaching abilities of managers. Tools have been built up to enhance levels of knowledge and lead administrators through the cycle of MAP and incorporate it into their day to day routines. On leadership, efforts have centered on integrating measures into assessment to make sure that administrators are efficiently adopting MAP (Berke, 2007). 3. Leadership Growth As a result of the effort of TFS, performance supervision and leadership growth planning are now an essential part of the company’s yearly planning calendar. Measurement and responsibility schemes continue to be constructed, the system of reward is being changed, and the development policy is extending downward into the institution as the process of succession develops. Reviews of talent are being utilized to recognize those who portray abilities of leadership as well as those with great potential to do so. A number of people at TFS are getting used to management of performance and MAP with no trouble than others. In keeping with the culture of Toyota, the team of HR will employ the kaizen philosophy to make sure that the process of performance management is realizing what is was supposed to do (Berke, 2007). Cooperation was highly implemented in order to achieve positive results in the company. People live according to Maslow in a ladder of needs, going from needs of physiology through security, social, respect to self actualization (Motivation Theory and Leadership, 2006). As every need is fulfilled, an individual progresses up a level. Hence basic needs can motivate people, but also by the strength and dignified cause. A number of leaders would think that it is essential to implement pain or threat to bring about motivation, while others believe that this only inspires the dullest and most inactive people. Minor changes brings almost insignificant changes in administration motivation but can cause steady positive alteration. When self-actualization is attained, a person feels he or she has accomplished his mission. This is because they feel they have accomplished their mission. This is indicated in the TFS when the CEO wanted to attain the self-actualization state of the company by setting goals that they worked hard toward. Recommendations In this case, the leadership style that was not presented is authoritarian type of leadership. This type of leadership is utilized when leaders instruct their workers what they require to be done and how they require it accomplished, without seeking the opinion of their followers (Motivation Theory and Leadership, 2006). This style is often used as a vehicle for shouting, using humiliating language, and leading by intimidations and abusing their authority. This type of leadership is not used in this case since the CEO consulted his HR team for to see how the company could move forward. This indicates that the CEO employed a participative type of leadership whereby the leader and one or more employees are involved in the process of decision making, agreeing on what to do and how to handle it. Although, the head maintains the authority of the final decision making, and this approach is not an indication of weakness, somewhat it indicates a strong point that employees will value. For every organization, there should be some improvements to be made in order to sustain the organization. These changes include enhancing leadership skills among others. The leader should always make every effort to set the example of the efficient leader. Because no one is perfect, a leader should discuss with his team regarding beating targets, solving problems and by some means becoming a magnet for ability from other areas. To improve leadership, the leader should be a persistent developer of talent. A leader should encourage the growth of others via coaching, advice, a provision of progressively more difficult challenges and encourage others to take risks in search of improvement (Petty, 2010). All these are strong tools at the disposal of an effective leader. A leader should support his team to branch out into the institution. The better a leader who develops talent and the more achievement the leader has at spreading his previous team members into responsibilities around the institution, through this, the leader is able to see his best practices of leadership popping up in the whole organization. Since no strategy can be implemented without the correct talent in place, the leader should ensure that strategy discussed eventually include discussions of talent. Immediately there is broader understanding, employees should be encouraged to employ in activities that boost discussions and result to actions. Leaders should hold their managers responsible for establishing that they get it and are living it in the action of their jobs. Motivating employees through appreciating their work by rewarding them is an essential factor of good leadership practice. When all these actions are considered, leadership in an organization ultimately improves (Petty, 2010). Motivation is an important factor in leadership. When employees achieve something, they have accomplished something. Therefore, the leader’s recognition is approval for that achievement. It is considered that a lot of managers do not give sufficient credit since they do not receive enough. Effective way of congratulating employees is by using trophies or plaques. Coaching the employees on a one-on-one basis make them feel appreciated because when their employer sets some time for them, indicates that he or she cares (Worman, 2010). There are some recommendations to be made to the scientific and academic communities of researchers and scholars that might promote such a practice in the future. To start with, what is interesting about this case is that is indicates how TFS was like before leadership development and how it progressed later. It indicates the growth of TFS. Scientific and academic communities of researchers and scholars should not sugar-coat or try to make something appear better than reality; they should just illustrate the facts (Abilla, 2010). It is not very easy to implement strategies, this call for hard work and active participation of all members. For TFS, it was too soon to determine whether its strategy of leadership would be successful. Victory greatly depends on how well the ideas are continuously embraced and owned by the organizational leaders (Berke and Fike, 2007). Presently, TFS is in the course of rooting MAP to make sure that it is incorporated into the institution and is maintained over time. At TFS, this program, MAP was based on the principle that a performance-based company needs to have a realistic and reliable evaluation and measurement scheme so associates can be correctly differentiated and held responsible. A lot of institutions face an initial dip in performance when employing an initiative of change; even though managers may comprehend the reasons for the alteration and what is required of them, they are usually unsure about how to execute the fresh behaviors. The leadership effort at TFS started gradually and developed incrementally, using the approach of lessons-learned (Hass and Horst, 2007). The center was on creating understanding and building a change in mind-set. This case is worth our knowing about today. This is because we get to know how TFS started a progressive course of establishing a strategy of leadership that mirrors both a direction toward performance and a solid foundation for growth. The co-operation between the CEO and the company’s department of human resource to realize that the organization needed to transform the way talent was being handled and developed, led to a noticeable change of leadership. Although the change was not very fast, the implementation was continuing and the people had to adapt to the new change. Studying this case would most directly benefit a number of people. Firstly, the leaders of organizations would benefit a lot from studying this case. From the case, leaders are supposed to implement different talents from their employees so that they are given the right roles based on their capabilities. When people are given the right roles, the workforce and productivity of work is enhanced. From the case, leaders need to involve other members of the organization when making decisions because through this, the employees would feel motivated. Leaders who are responsible have a vision, as is seen in the case. Vision is fundamental to good leadership. Vision gives direction and where there is no direction; there is not much reason for planning (Ward, 2011). A good leader also shares his vision, as is indicated in the case when the CEO of TFS shared his idea with the HR team. Sharing leadership ideas assists in the growth of vision because a leader will strengthen his own belief in his vision and support his determination to make his vision of leadership become reality. Through this, people will begin to view you as someone who is going places. The employees would also benefit from studying this case because they will be able to emulate their leader since their leader is leading by example (Wilson, 2011). Employees at the TFS complied with their leader in order to achieve their set objectives. When employees work well with their leaders, the running of the company becomes smooth and most of the goals are accomplished. Employees feel appreciated when their leaders involve them in decision making process as in seen in the TFS Company when Borst involved his human resource staff in the process of decision making regarding the change of leadership. Conclusion In conclusion, it would be important if leaders can gain knowledge of everything they are required to know before they need to discover it. That is hardly ever the case since most of the leaders learn on the work. Occasionally leaders do not even recognize what they have learned until long once the time has passed (Borst, 2008). For TFS, when the CEO and the human resource department started to handle a major plan that would considerably change Toyota Financial Service; concurrently, the Borst was being exposed to fresh ideas of leadership. The CEO needed these fresh ideas, along with fresh skills and capabilities, to lead his team to achieve a set goal. Despite every effort, there were challenges that TFS faced but they tackled every challenge positively. Victory greatly depends on how well the ideas are constantly embraced and owned by the organizational leaders. Leaders must involve their employees in decision making so that they can implement a number of fresh strategies like nurturing talents so that fresh skills can be discovered in the organization. Reference Abilla, P. (2010). Effortless Customer Experience. Retrieved December 8, 2011, from http://www.shmula.com/effortless-customer-experience/5085/. Berke, D. and Fike, J. (2007). Creating a Foundation for Leadership Development. Case Study/ Toyota Financial Services, Vol. 27 (4) pg. 16-18. Borst, G. (2008).Toyota Tackle an Audacious Goal. Retrieved December 8, 2011, from http://gmj.gallup.com/content/104074/toyota-tackles-audacious-goal.aspx. Hass, K. and Horst, R. V. (2007). From Analyst to Leader: Elevating the Role of the Business Analyst. London: Management Concepts. Motivation Theory and Leadership. (2006). Retrieved December 8, 2011, from http://www.money-zine.com/Career-Development/Leadership-Skill/Motivation-Theory- and-Leadership/ Petty, A. (2010). 5 Actions to Improve Leadership Development in Your Firm. Retrieved December 8, 2011, from http://artpetty.com/2010/06/15/5-actions-to-improve-leadership- development-in-your-firm/ Venzin, M. (2009). Building an International Financial Services Firm. Oxford: Oxford University Press. Ward, S. (2011). 5 Keys to Business Leadership for Small Business. Retrieved December 8, 2011, from http://sbinfocanada.about.com/od/smallbusinesslearning/a/leadership1.htm Wilson, G. (2011). Managing to the New Regulatory Reality. New York: John Wiley & Sons. Worman, D. (2010). 20 ways to motivate your employees without raising their pay. Retrieved December 8, 2011, from http://www.biztrain.com/motivation/stories/20ways.htm Read More