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OrganizationalBehavior1.1|FlatWorldEducation

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TableofContents
AbouttheAuthors
Acknowledgments
Dedications
Preface
OrganizationalBehavior
CollegeTextbookRevolution:TheCaseofFlatWorldKnowledge
UnderstandingOrganizationalBehavior
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UnderstandingYourLearningStyle
UnderstandingHowOBResearchIsDone
TrendsandChanges
MaintainingCoreValues:TheCaseofNau
Conclusion
Exercises
ManagingDemographicandCulturalDiversity
DoingGoodasaCoreBusinessStrategy:TheCaseofGoodwillIndustries
DemographicDiversity
CulturalDiversity
TheRoleofEthicsandNationalCulture
ManagingDiversityforSuccess:TheCaseofIBM
Conclusion
Exercises
UnderstandingPeopleatWork:IndividualDifferencesandPerception
AdviceforHiringSuccessfulEmployees:TheCaseofGuyKawasaki
TheInteractionistPerspective:TheRoleofFit
IndividualDifferences:ValuesandPersonality
Perception
TheRoleofEthicsandNationalCulture
UsingSciencetoMatchCandidatestoJobs:TheCaseofKronos
Conclusion
Exercises
IndividualAttitudesandBehaviors
PeopleComeFirst:TheCaseofSAS
WorkAttitudes
WorkBehaviors
TheRoleofEthicsandNationalCulture
ReboundingfromDefeat:TheCaseofJeffreyKatzenberg
Conclusion
Exercises
TheoriesofMotivation
AMotivatingPlacetoWork:TheCaseofZappos
NeedBasedTheoriesofMotivation
ProcessBasedTheories
TheRoleofEthicsandNationalCulture
MotivationinAction:TheCaseofTraderJoes
Conclusion
Exercises
DesigningaMotivatingWorkEnvironment
MotivatingSteelWorkersWorks:TheCaseofNucor
MotivatingEmployeesThroughJobDesign
MotivatingEmployeesThroughGoalSetting
MotivatingEmployeesThroughPerformanceAppraisals
MotivatingEmployeesThroughPerformanceIncentives
TheRoleofEthicsandNationalCulture
MotivationKeyforSuccess:TheCaseofXerox
Conclusion
Exercises
ManagingStressandEmotions
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FacingForeclosure:TheCaseofCamdenPropertyTrust
WhatIsStress?
AvoidingandManagingStress
WhatAreEmotions?
EmotionsatWork
TheRoleofEthicsandNationalCulture
GettingEmotional:TheCaseofAmericanExpress
Conclusion
Exercises
Communication
YouveGotMailandYoureFired!TheCaseofRadioShack
UnderstandingCommunication
CommunicationBarriers
DifferentTypesofCommunicationandChannels
TheRoleofEthicsandNationalCulture
EmployeeSatisfactionTranslatestoSuccess:TheCaseofEdwardJones
Conclusion
Exercises
ManagingGroupsandTeams
TeamworkTakestotheSky:TheCaseofGeneralElectric
GroupDynamics
UnderstandingTeamDesignCharacteristics
ManagementofTeams
BarrierstoEffectiveTeams
TheRoleofEthicsandNationalCulture
GreenTeamsatWork:TheCaseofNewSeasonsMarket
Conclusion
Exercises
ConflictandNegotiations
NegotiationFailure:TheCaseofthePointCast
UnderstandingConflict
CausesandOutcomesofConflict
ConflictManagement
Negotiations
TheRoleofEthicsandNationalCulture
AvoidingConflictatWorldCom:TheCaseofBernardEbbers
Conclusion
Exercises
MakingDecisions
DecisionMakingCulture:TheCaseofGoogle
UnderstandingDecisionMaking
FaultyDecisionMaking
DecisionMakinginGroups
TheRoleofEthicsandNationalCulture
EmpoweredDecisionMaking:TheCaseofIngarSkaug
Conclusion
Exercises
LeadingPeopleWithinOrganizations
TakingonthePepsiChallenge:TheCaseofIndraNooyi
WhoIsaLeader?TraitApproachestoLeadership
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WhatDoLeadersDo?BehavioralApproachestoLeadership
WhatIstheRoleoftheContext?ContingencyApproachestoLeadership
WhatsNew?ContemporaryApproachestoLeadership
TheRoleofEthicsandNationalCulture
LeadershipDevelopment:TheCaseofStarbucks
Conclusion
Exercises
PowerandPolitics
FocusonPower:TheCaseofSteveJobs
TheBasicsofPower
ThePowertoInfluence
OrganizationalPolitics
UnderstandingSocialNetworks
TheRoleofEthicsandNationalCulture
GettingConnected:TheCaseofSocialNetworking
Conclusion
Exercises
OrganizationalStructureandChange
OrganizationalStructure:TheCaseofToyota
OrganizationalStructure
OrganizationalChange
TheRoleofEthicsandNationalCulture
ChangingforGood:TheCaseofHannaAnderssonCorporation
Conclusion
Exercises
OrganizationalCulture
BuildingaCustomerServiceCulture:TheCaseofNordstrom
UnderstandingOrganizationalCulture
CharacteristicsofOrganizationalCulture
CreatingandMaintainingOrganizationalCulture
CreatingCultureChange
TheRoleofEthicsandNationalCulture
ClashoftheCultures:TheCaseofNewellRubbermaid
Conclusion
Exercises
Tryournewreader?Clickhere

OrganizationalBehavior,v.1.1
byTalyaBauerandBerrinErdogan

14.1OrganizationalStructure:TheCaseofToyota
Figure14.1

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Source:PhotographcourtesyofToyotaMotorSales,USA,Inc.
ToyotaMotorCorporation(TYO:7203)hasoftenbeenreferredtoasthegoldstandardoftheautomotive
industry.Inthefirstquarterof2007,Toyota(NYSE:TM)overtookGeneralMotorsCorporationinsales
forthefirsttimeasthetopautomotivemanufacturerintheworld.Toyotareachedsuccessinpartbecause
ofitsexceptionalreputationforqualityandcustomercare.Despitetheglobalrecessionandthetough
economictimesthatAmericanautocompaniessuchasGeneralMotorsandChryslerfacedin2009,
Toyotaenjoyedprofitsof$16.7billionandsalesgrowthof6%thatyear.However,late2009andearly
2010witnessedToyotasrecallof8millionvehiclesduetounintendedacceleration.Howcouldthis
happentoacompanyknownforqualityandstructuredtosolveproblemsassoonastheyarise?To
examinethisfurther,onehastounderstandabouttheToyotaProductionSystem(TPS).
TPSisbuiltontheprinciplesofjustintimeproduction.Inotherwords,rawmaterialsandsuppliesare
deliveredtotheassemblylineexactlyatthetimetheyaretobeused.Thissystemhaslittleroomfor
slackresources,emphasizestheimportanceofefficiencyonthepartofemployees,andminimizeswasted
resources.TPSgivespowertotheemployeesonthefrontlines.Assemblylineworkersareempowered
topullacordandstopthemanufacturinglinewhentheyseeaproblem.
However,duringthe1990s,Toyotabegantoexperiencerapidgrowthandexpansion.Withthissuccess,
theorganizationbecamemoredefensiveandprotectiveofinformation.Expansionstrainedresources
acrosstheorganizationandslowedresponsetime.ToyotasCEO,AkioToyoda,thegrandsonofits
founder,hasconceded,Quitefrankly,Ifearthepaceatwhichwehavegrownmayhavebeentoo
quick.
VehiclerecallsarenotnewtoToyotaafterdefectswerefoundinthecompanysLexusmodelin1989,
Toyotacreatedteamstosolvetheissuesquickly,andinsomecasesthecompanywenttocustomers
homestocollectthecars.Thequestiononmanypeoplesmindsis,howcouldacompanywhosesuccess
wasbuiltonitsreputationforqualityhavehadsuchfailures?Whatisallthemorepuzzlingisthatbrake
problemsinvehiclesbecameapparentin2009,butonlyafterbeingconfrontedbyUnitedStates
transportationsecretaryRayLaHooddidToyotabeginissuingrecallsintheUnitedStates.Andduring
theearlymonthsofthecrisis,Toyotastopleaderswereallbutmissingfrompublicsight.
TheorganizationalstructureofToyotamaygiveussomeinsightintothehandlingofthiscrisisandideas
forthemosteffectivewayforToyotatomoveforward.Aconflictsuchasthishastheabilitytoparalyze
productivitybutifdealtwithconstructivelyandeffectively,canpresentopportunitiesforlearningand
improvement.CompaniessuchasToyotathathavearigidcorporatecultureandahierarchyofseniority
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areatriskofreactingtoexternalthreatsslowly.Itisnotuncommonthatindividualsfeelreluctanttopass
badnewsupthechainwithinafamilycompanysuchasToyota.Toyotasboardofdirectorsiscomposed
of29Japanesemen,allofwhomareToyotainsiders.Asaresultofitscentralizedpowerstructure,
authorityisnotgenerallydelegatedwithinthecompanyallU.S.executivesareassignedaJapaneseboss
tomentorthem,andnoToyotaexecutiveintheUnitedStatesisauthorizedtoissuearecall.Most
informationflowisoneway,backtoJapanwheredecisionsaremade.
WillToyotaturnitsrecallintoanopportunityforincreasedparticipationforitsinternational
manufacturers?Willdecentralizationandincreasedtransparencyoccur?Onlytimewilltell.
CasewrittenbyBerrinErdogan,CarleneReynolds,andTalyaBauertoaccompanyBauer,T.,&
Erdogan,B.(2009).Organizationalbehavior(1sted.).NewYork:FlatWorldKnowledge.Basedon
informationfromAcceleratingintotrouble.(2010,February11).Economist.RetrievedMarch8,2010,
fromhttp://www.economist.com/opinion/displaystory.cfm?story_id=15498249Dickson,D.(2010,
February10).Toyotasbumpsbeganwithraceforgrowth.WashingtonTimes,p.1Maynard,M.,
Tabuchi,H.,Bradsher,K.,&Parris,M.(2010,February7).Toyotahasapatternofslowresponseon
safetyissues.NewYorkTimes,p.1Simon,B.(2010,February24).LaHoodvoicesconcernsover
Toyotaculture.FinancialTimes.RetrievedMarch10,2010,fromhttp://www.ft.com/cms/s/0/11708d7c
20d711dfb92000144feab49a.htmlWerhane,P.,&Moriarty,B.(2009).Moralimaginationand
managementdecisionmaking.BusinessRoundtableInstituteforCorporateEthics.RetrievedApril30,
2010,fromhttp://www.corporateethics.org/pdf/moral_imagination.pdfAtlman,A.(2010,February24).
CongressputsToyota(andToyoda)inthehotseat.Time.RetrievedMarch11,2010,from
http://www.time.com/time/nation/article/0,8599,1967654,00.html.

DiscussionQuestions
1. DoyouthinkToyotasorganizationalstructureandnormsareexplicitlyformalizedinrules,ordo
thenormsseemtobemoreinherentinthecultureoftheorganization?
2. WhataretheprosandconsofToyotasstructure?
3. Whatelementsofbusinesswouldyousuggestremainthesameandwhatelementsmightneed
revising?
4. WhatarethemostimportantelementsofToyotasorganizationalstructure?
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