Fault Lines in the Vaunted Toyota Way Essay

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FAULT LINES IN THE VAUNTED TOYOTA WAY 1. Describe Toyota’s culture from the perspective of espoused and enacted values. The company Toyota is trying to manage the culture at the interior of the organization by 14 principles (espoused values) that they have defined as “The Toyota Way”. What is happening with this culture is that those 14 principles aren´t being followed in a 100% by workers, the reason is because the company is globalizing, expanding, going abroad and building factories in different countries, so they are hiring a lot of workers with cultural differences and headquarters are losing control on these factories located on the new countries, and workers there are not focused on following those principles, these are the enacted values, the workers really aren´t behaving as they should if they were following the espoused values (in this case the 14 principles). 2. Using the perspective of the functions of organizational culture explain the impact of “The Toyota Way”. Organizational culture has four basic functions. The first one is to provide sense of identity to workers in order to increase their commitment to the organization, which is what Toyota is trying to do with “The Toyota Way”, for example their 10th principle says “Develop exceptional people and teams who follow your company’s philosophy”. The second one is to provide a way for workers to interpret the meaning of organizational events, for example the production line is designed to always have “The Toyota Way” present “The Toyota Production System (TPS), which puts The Toyota Way into practice”. The third one is to reinforce the values of the organization, that’s why The Toyota Way is the defining element of Toyota’s corporate culture. The fourth one is to serve as a control mechanism for shaping behavior, this is why they defined their culture in 14 principles, and they are

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