In 2010 Toyota had a recall of their vehicles due to safety issues. In 2005 Toyota recalled their cars due to frontal airbags issues; in 2006, there was a recall for airbags; in 2009, for the acceleration pedal, and the list goes on. It's understandable vehicles will have problems that can lead to memories addressing them as soon as possible. In these instances, management could play a massive role in managing their issues. Unfortunately, Toyota's control fell short of this, and it almost led to Toyota's downfall.
One problem Toyota encountered was its change in management. Even though the company was based in Japan, it had a manufacturing plant, the sales division was in the United States (US), and the liaison between these divisions was an American named James E. Press. Mr. Press made Toyota's NY headquarters in charge of operations across the US. He was responsible for addressing any issues that came about. Upon Mr. Press's departure in 2007, communications between departments and what was returning to Japan broke down. As a result, the quality of the work and the products declined, causing many breakdowns. Had the executive management team planned accordingly for Mr. Press's departure, the breakdowns may have been avoided or less than reported. With no American in charge in the US to be the go-between for Japan & the US, the study was inevitable. The head of Toyota, Akio Toyoda, was the grandson of the company's founder; however, it was clear he did not take the company strategy seriously. When a crisis arose, he was reportedly at a conference in Switzerland instead of being hands-on and addressing the issues. Addressing the problems arising did not seem to be the company's priority.
Perception and Organizational Culture
As a result, the employee's faith in the company was not strong. The employees did not feel valued and safe. Because the company was engaging in unethical practices, employees felt pressured to do as they were told. 60% of employees do as they are told without question; this was the case with Toyota. How can one function if there are no gatekeepers to ensure we are living up to our standards? When Toyota recalled th...