A Comparison of Global Leadership Styles Steve Jobs vs. Akio Toyoda [pic] [pic] Course Title: Comparative Management Course Instructor: Miss Sarah Salahuddin Report Submitted By: Maha Hasan Maham Khalil Rehmani Nida Kamal Jibran Kayani Nosherwan Huma (BBA VII B Morn) Date of Submission: 3rd June 2010 Executive summary The first part of the report provides an introduction of the different theories and models of global leadership. A brief description of leadership styles is included to provide a glimpse of how leaders use these styles to influence and motivate others.
The theories are discussed to provide an overview of the kind of strategies that famous leaders and CEOs use to motivate employees and get the best out of them. The different models mentioned show how they innovate their products, develop new strategies and become market leaders. Part II of the report includes a detailed description of the lives of two leaders we have chosen to study, namely Steve Jobs, the American business tycoon and CEO of Apple Inc. and Akio Toyoda, the CEO of Toyota Motors.
A brief background analysis shows how both of them started their business, along with the factors that helped and hindered them in achieving their goals. The motivating factors that inspired them to persue their goals as well as the key leadership styles that they used to run their respective businesses are discussed. When it comes to vision, both of the leaders have in their own way outlined plans for the future which have been discussed in the report.
Next, a review of their accomplishments has been provided and their portrayal in the media has been outlined, which will provide readers with a picture of how these leaders are portrayed in the local media as well as in the international media. Finally, their advice to the future generation is included, and lastly, a brief analysis of how these leaders manage diversity in their respective businesses concludes the second part of the report.
The third part of the report comprises of a detailed analysis including comparing and contrasting elements of both the leaders’ lives, vision, way of operating and expanding the business and management styles. The strong contrast in their styles is an indication of not only their different upbringing and education but also of societal influences. It provides a glimpse of the difference that exists between the American and Japanese way of management, which in turn affects how the employees are treated, the products are evolved and a vision for the future developed.
Part l In the dynamic world today we need leadership to challenge the status quo, to create visions of the future, and inspire the organizational members to achieve the desired vision. Leadership as they say is to influence people around you so as to direct them towards a certain goal, whether it is informally or through a designated authority. Leaders in the global market need to be dynamic and manage changes, from a shift of territory, making strategic decisions, maintaining relations etc. to influencing people from a diverse background.
As said by R. Pascale : “Managing is helping to make happen what is supposed to happen anyway; Leadership is making happen what isn’t going to happen anyway”- (R. Pascale, Change management masterclass, Mike green) Different leaders follow different styles and possess various traits and characteristics also called the dimensions of leadership, yet all are able to lead most effectively in their own particular manner. For instance, Coercive leadership is a commanding form of leadership style that implies hat the followers may not think of ideas by themselves instead they may follow a set pattern, whereas Authoritative leadership is a form of a visionary style which is used when a vision needs to be articulated and moved forward based on respect and credibility. Affiliative leadership, by contrast, focuses on people rather than tasks, leading people through maintaining and promoting relationships. Finally Democratic leadership is a way of leading by engaging people and using their collective endeavor and collaborative techniques. Global leadership has various dimensions associated with it.
Envisioning, i. e. seeing through various paradigms and leading people accordingly is one important dimension of leadership. The empowering and team play ability is to let the subordinates or colleagues put in creative ideas, ways and solutions etc. Team Oriented leadership demonstrates effectively working towards a common goal among members of a work group or team. Another essential characteristic of leadership is absorptive capacity. Absorptive capacity capabilities enable the CEO to learn, synthesize new information and embrace new paradigms.
Future orientation as Rowe (2001) conceptualizes is the ability of strategic leaders to be futuristic by being independent of their organizations for a sense of who they are. A future orientation is also essential in anticipating and proactively predicting future competitive conditions and challenges. Charismatic/Value-Based leadership portrays the ability to inspire and motivate others to perform well based on deeply held values. Participatory leadership suggests the degree to which mangers involve others in making and implementing decisions in an organization. Risk-taking is a fundamental requirement for effective leadership at all levels.
It involves cost-benefits of strategic choices in the context of incomplete information.. Humane Oriented leadership encompasses a supportive and compassionate stance toward others. Autonomous leadership suggests an independent and individualistic leadership style. Self-Protective leadership is concerned with safeguarding the well-being and security of individual members and the group as a whole (Cherry, Kendra; Psychology Guide, 1992) Transformational leadership is defined as guidance that creates valuable and positive change in the followers with the end goal of developing followers into leaders.
With this style, the leader enhances the motivation, morale and performance of his/her followers through a variety of mechanisms such as connecting the follower’s sense of to the mission of the organization and being a role model for followers. Transactional leadership, on the other hand is a term used to classify a formally known group of leadership theories that observe the interactions between leaders and followers. A transactional leader focuses more on a series of “transactions” and clarifying a sense of duty with rewards and punishments to reach goals.
Situational Leadership states that there is no single “best” style of leadership; effective leadership is task-relevant and that the most successful leaders are those that adapt their leadership style to the situation and the individual or group they are attempting to lead/influence. Participative leadership is a style that involves all members of a team in identifying essential goals and developing procedures or strategies for reach those goals; it relies heavily on the leader functioning as a facilitator rather than simply issuing orders or making assignments.
Contingency theory is a class of behavioural theory that claims that there is no best way to organize a corporation or lead a company except to choose the course of action that takes into account the internal and external situation. When it comes to thinking patterns of managers or leaders, Theory X states the belief that employees are inherently lax in their attitude and need to be given a ‘push’ to work. Theory Y states the contrasting belief that employees are self motivated and the sense of accomplishment on getting the task done is the best reward they expect out of their jobs.
Whether a leader is able to strike a balance between getting the tasks done and accommodating the needs of people is best studied through a leadership grid . A leader’s style may be assessed through his/her concern for people or for the results. In this report we will study the styles with which these leaders are associated. Part ll Steve jobs From garage to grandeur Background (How Steve Jobs became a leader- the process) Steve Jobs is the CEO of Apple Computer, a leader in the field of personal computing, which he co-founded in 1976, and the Academy-Award-winning Animation Studio, Pixar which he co-founded in 1986.
His idea of what a personal computer should be led him to reform the consumer computer hardware and software industry. (Chandi, 2002) Steve Jobs was born on February 24, 1955 in the city of San Francisco. His biological mother was a graduate student and his father was a professor. After a week Steve was put to adoption. During his early schooling, Steve proved to be a problem child, often bored with school routine. Steve went to Crittenden middle school which was in a poor area and did not offer an up to mark education. After that he went to Cupertino Junior High, which offered him a promising future in terms of his study.
When he was in Homestead High school he became really interested in electronics and this interest later earned him a summer job at HP’s factory. He started his first entrepreneurial venture after becoming friends with another computer wiz kid named Stephen Wozniak. Steve went to expensive collage named Reed but later dropped out from there because of the lack of interest in the subjects he was taking. He returned to the bay area to start a job as a technician at Atari, Inc. (first video game company). From here the idea of having one’s own business thrilled him and he persuaded his friend to start their own company.
His friend Woz created a computer for his own use and showed its capabilities to others. While Wozniak only had the vision of a hobbyist, Jobs saw a business potential for Woz. Jobs convinced Woz to start their own company and Apple Computer was found on April 1st 1976. (Moisescot, 2000) His invention Apple 1 and Apple 11 proved to be a huge success. The company grew at a very fast pace and Steve became its manager. Later Steve managed to persuade John Scully, PepsiCo executive, to head the marketing function of Apple. Later on due to a tiff with the Apple board and John Scully, Steve had to resign from Apple.
He started a new venture related to hardware industry. He opened up a new company called neXT and the new machine was called next computer. He also incorporated Pixar, Inc, which produced animated movies such as Bugs Life, Finding Nemo etc. NeXT and Pixar were experiencing great success until Steve finally had to face the increasing pressure when his business started to go down. He had to make many compromises to make his business survive. In 1996, Steve came back to Apple and convinced Apple to buy NeXT for &400 million.
Later on he became company chairman and CEO. Things that hindered and helped Steve Jobs in becoming a leader Helping factors: • As far as the helping factors that made Steve what he is today are concerned, the first and foremost is his education and financial support provided by his parents. It all started right from the beginning when he was born. His biological parents put him to adoption on a condition that he would go to college no matter what. He received right kind of primary, middle and high school education. He went to an expensive college named Reeds.
Even though his parents were not that strong financially, they supported him in whatever way possible. • Another helping factor was his ability to choose the right kind of people at the right time. At college Steve became friends with Woz who played a helping hand in the incorporation and success of his company Apple. When he got fired from Apple he met the right kind people who gave him new ideas and opportunities. He hired talented employees for Apple and later on when he incorporated NeXT he hired the most efficient and professional people. He gave them high salaries and perfect compensation packages. Another factor that helped Steve to become a leader was the innovation and uniqueness brought by Apple to its customers. Its fast speed, new and impressive design and many other features helped it to develop a name in the industry. This also welcomed new and exciting opportunities for Steve. Hindering factors: • Even though his parents spent their entire saving for Steve’s education, yet it was not enough. When he dropped out of college he had to face the most difficult time of his life due to weak financial conditions. Moisescot (2000, p. 3) mentions in his article
Steve said : “I did not have a dorm room, so I slept on the floor in friend’s room, I returned coke bottles for the 5 cents deposits to buy food with, I walked with the 7 miles across town every Sunday night to get one good meal a week at the Hare Krishna temple. I loved it. ” • One factor that hindered him in becoming a leader was a part of his personality that made it very difficult for him to accept failure or rejection. When one of his major projects faced a market failure, he became really agitated and by many people was considered a reason for the failure of the project and its team.
He developed a personal grudge with one of his co workers, John Scully, the person he himself hired. This later became one of the reasons of his resignation from Apple. He said: “what can I say I hired the wrong guy. ” Things that motivated Steve Jobs to become a leader • First motivation was when Steve got his first job. He was really inspired and motivated by the founder of Atari, Inc Nolan. He became an inspiration for Steve Jobs. He was impressed by the fact that he was an iconoclastic man who started and made a lot of money by building pinball machines. The main motivation of Steve jobs is the passion, ardor and love for whatever work he does. He believes that unless a person is fully dedicated to his/her work it is not possible for him/her to get the most out of it by making the best use of his abilities and skills. And the reason behind this passion and love is because without it a rational person would give up at some point. Because when you are committing yourself to a longer objective or goal then you have to sustain it for a longer period of time as well. So if you don’t love it or have fun doing it you are going to give up.
And this is true because if you look at the people who ended up being successful in the eyes of society, loved what they did and persevered when it got really difficult and the ones who did not love it; quit. Moreover, during his early education He dropped out of a well renowned and expensive college called Reed just because he couldn’t find the interest and concern in the classes he used to take. Moisescot (2000, p. 6) wrote in his article Steve said: “I was lucky — I found what I loved to do early in life. Woz and I started Apple in my parents’ garage when I was 20.
We worked hard, and in 10 years Apple had grown from just the two of us in a garage into a $2 billion company with over 4000 employees. We had just released our finest creation — the Macintosh — a year earlier, and I had just turned 30. ” • When it comes to motivation; a desire to innovate and create new things has always inspired Steve during his entire career. He has his own original ideas and believes in brining culture into his products. One such example is his computer named Macintosh, which proved to be a great success. It came with a new and exciting design that was different than all other computers that were previously offered.
Steve says: “Proportionately faced fonts come from typed setting and beautiful books, that’s where one gets the idea. If it were not for the Mac, they (IBM) would never have that in their products. ” • One of the things that never let Steve give up was his motivation to go on and on and a belief that there always is a way. First he started his own company, named Apple with his friend. And then after resigning from Apple instead of losing hope and giving up he was very confident and enthusiastic and started yet another business of NeXT computers which again became a hit due to his constant efforts and hard work.
Another thing that really motivates him is his inspiration to reach the highest level by aiming at the perfect. Leadership style Steve jobs- Silicon Valley pioneer – author of unique leadership ideas When one thinks of Steve jobs and his leadership style, a quotation immediately comes in one’s mind: “Innovation distinguishes between a leader and a follower. ” Steve Jobs Steve Jobs is someone who drove Apple towards success. The leadership features within Steve’s character are based on perfection, excellence, precision and exactness.
He believes a leader can be distinguished from a follower based on his creativeness and his ability to make things exciting for his customers. With such a clear goal and mission in his mind we can say that Job’s leadership style is inclined more towards task rather than people. He has got such great love and passion for his work that sometimes it becomes hard for him to maintain a balance between goal and long term relationships. Even that might be the case one can not question the success and accomplishments he has achieved over the years.
His innovative products and unconventional business practices has earned him and his company a strong, in fact a leading market position. His achievements such as iPod, iTune, graphical user interface etc can not be neglected. Not just individually, he revolutionized the entire leadership culture of Apple, Inc, which is now based on brand fanaticism and deep-seated customer devotion. He transfigured the entire computer industry, and is now known as Silicon Valley pioneer. So Steve jobs has a transformational leadership style. When t comes to relationship building, during his entire career Steve had to face many difficult and contradictory situations. As explained earlier the way he dealt his conflict with John Scully became a reason for his departure from Apple. I personally believe that this happens not because he is not good at dealing with people but actually his passion for work sometimes overshadows his need for building long term relations with people. We can say it’s his ability to combine the ardor and fear of his employees together so that they are able to see the same vision he sees.
He understands and looks at people from a view point of identifying the capabilities in them and making them able to see those hidden strengths which they never identified in themselves. He is able to lead his people in the right direction and make them do things which they have never done before. No wonder why he is known for hiring ‘right kind of people for the right job’. One thing that proves Steve a transformational leader is his passion and his love for work so that every time he fails, he comes back with something better and more exciting.
This is exactly what he did when he got booted from the firm (Apple) and started his own new company from scratch, called neXT. This became a new aspiration for many people and soon became a competing company in the market. His return to Apple in 1996 proved to be another big and major turn for the company. He completely turned the company around and made it touch the highest level of profitability. Now Apple Company not only holds a sizable share in the electronic market but has successfully entered the music business with iPod Mp3 player, iTunes music store and iTunes digital music software.
Jobs personality as a leader can be proven by the fact that whatever step he takes, it translates into the entire company’s success. Moreover, he has got excellent decision making power. For example the moment he realized that college is not supplementing his future needs in any way, he dropped out of it after just one semester. Resigning from Apple and starting a whole new company was another major decision that he took. It is this decision making power and transformational leadership style that made him a pioneer and a perfect example of someone who ‘Thinks differently’.
According to an article by Carl Robinson, during his early stages at Apple Steve was on the lowest level of becoming a leader, rather he was more of a manager than a leader. When he returned to Apple, after a constant struggle, passion and hard work it was only then when he became a true leader and reached the highest level by “blending extreme personal humility with intense professional will. ” (Macmamus, 2008) From a start up company operating out of his garage, he built a company worth millions of dollars. Driven by innovation, excellence and brilliance, Apple was formed.
Unfortunately one day all was take away from him and Steve lost his company, Apple. Jobs never gave up and continued to score important successes while away from Apple. His return to Apple signaled a new beginning for the company and launched on an upward spiral of success. Businessweek online: “Job’s contribution towards apple? More than anyone else. He brought digital technology to the masses. As visionary he saw that computers could be much more than drab productivity tools. Instead, they could help unleash human creativity and sheer enjoyment. ” Vision Mission statement of apple Apple is committed to bringing the best personal computing experience to students, educators, creative professional and customers around the world through its innovative hardware, software and internet offerings. ” (Young and Simon, 2003) Vision of Steve jobs: “I’m looking for a fixer-upper with a solid foundation. Am willing to tear down walls, build bridges, and light fires. I have great experience, lots of energy, a bit of that “vision thing” and I’m not afraid to start from the beginning. ” (Young and Simon, 2003) If we look at the two vision statements we can easily point out the correlation between the two.
How one is supplementing the other. Job’s vision is to bring the best to his customers by putting all his efforts and hard work in his work. He does not believe in sticking to just one area rather he loves to explore and invent new things. This he does for two main reasons. 1. To make his customers happy 2. To differentiate Apple from all other competitors. Based on this vision, Jobs successfully introduced radical products in the market. Be it Apple, Pixar or NeXT, Jobs can pull it through by making use of his experience, energy and zeal.
At first Steve’s fame and recognition was limited to those who worked in Apple but this was never sufficient for Steve so he went on to climb ladders until he reached the peak. Now Steve is recognized by almost everyone because of his magnificent phenomenon called the iPod. In an interview with business week Jobs said: “Our vision is that we have just begun” With all the new technologies, innovative products and radical changes in the computer industry, many of them being brought by Apple, Jobs still thinks it is just the beginning. Today when the technological advancement is at its peak, it seems like Jobs still has much to offer.
Before Jobs’ innovative thinking no one ever dreamt of having a portable mp3 player or software like iTunes etc. Jobs revolutionized the computer and music industry before and he is ready to do it yet again. From the way I see it I believe that in the next decade Steve Jobs will play a major role in transforming the entire world into ‘e-world’ where world will appear standstill but in actual it will be moving with the fastest pace ever. Accomplishments In the late 1970s, Steve Jobs, along with Steve Wozniak, co-founded Apple Computers. One of his greatest accomplishments during his tenure in Apple was creating the Macintosh Computer.
Due to differences with the board of directors, he resigned from Apple. Spurred on by his entrepreneurial vision he founded neXT (a computer platform development company). In 1996, neXT was bought out by Apple whereupon Jobs returned to the company he co-founded. Since 1997, he has served as its CEO. In early 2009, he was forced to take a five-month leave of absence (to undergo liver transplant), after which he resumed his role as CEO of Apple. Jobs also has various accomplishments in the field of computer animation. In 1986, he acquired the computer graphics division of Pixar Animation Studios.
He acted as its CEO and majority shareholder until it was acquired by the Walt Disney Company in 2006. Currently, Jobs is a member of Walt Disney Company’s Board of Directors. Steve Jobs’ various accomplishments can be summed up by a brief overview of his various honors and awards: ? In 1985, Steve Jobs (along with Steve Wozniak) was awarded the National Medal of Technology by President Ronald Reagan. They were the first individuals to receive this honor. ? In 1987, Jobs received an Award for Public Service in the category of “Greatest Public Service by an Individual 35 Years or Under”. In 2007, Fortune Magazine named Steve Jobs was named as the most powerful person in business. ? In the same year, Steve Jobs was inducted into the California Hall of Fame. ? In 2009, Jobs was voted as the most admired entrepreneur among teenagers in a survey conducted by Junior Achievement. ? Later on in the same year, Fortune Magazine named Steve Jobs as CEO of the decade. His business acumen can be proved by the fact that he created a way to get consumers to pay for online music with Apple’s iPod and the iTunes online store which has a 70% market share.
His foresight also helped him gain success in the field of entertainment when Pixar made “Finding Nemo”, which became the biggest animated box-office hit ever. Apart from being remembered as the co-founder and CEO responsible for the success of Apple Computers, Steve Jobs will always be honored as a creative internet entrepreneur with a keen business sense and astonishing foresight. He can be looked on as a source of inspiration for generations of people wanting to make a mark in this world. As he said: “We’re here to put a dent in the universe. Otherwise why else even be here? ” Media Portrayal
Most of the media portrayal of Steve Jobs has been positive. Despite some criticism for his aggressive management style and ridicule due to his black-turtleneck-and-blue-jeans attire, his sharp business sense and extraordinary foresight have been acknowledged by the media. In the February 2010 issue of The Economist , Steve Jobs was portrayed as Jesus holding an iPad tablet. Here is an excerpt from the magazine’s cover story: ‘Jobs’ record suggests that when he blesses a market, it takes off. And tablet computing promises to transform not just one industry, but three—computing, telecoms and media. In addition to this, he has been prominently featured in three documentaries on the history of the personal computer industry, namely Triumph of the Nerds (1996), Nerds 2. 0. 1(1998) and Pirates of Silicon Valley (1999). Each of these represented quite an accurate portrayal of the important events of Job’s life. Time magazine has also covered Steve Jobs several times. In the book ‘The Presentation Secrets of Steve Jobs’, author Carmine Gallow explores the five elements in each presentation given by Jobs. His interviews have also been featured various times in prominent magazines such as Fortune and Rolling Stone.
On the other hand there have also been many parodies on Steve Job’s life in television series such as 30 Rock, The Simpsons etc. Mad Magazine and The Onion have also featured parodies on Steve Jobs. However, one can hardly say that these parodies have been able to tarnish Jobs’ image. Steve Jobs’ portrayal in the international media is no different from that in the local media. This is because his various accomplishments in the field of business and established repute as a creative entrepreneur. Advice In 2005, in the Commencement Address of Stanford University, Steve Jobs gave some very inspiring advice to the students assembled there.
He told them: ‘Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary. ’ Steve Jobs has, in various interviews and addresses, given valuable advice that can be used by anyone, including his own children as well as generations of people. He has often said, ‘Innovation distinguishes between a leader and a follower. He also says, ‘Be a yardstick of quality. Some people aren’t used to an environment where excellence is expected. ’ On achieving greatness in one’s chosen field, he says, ‘The only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. (Ririan, 2004) Diversity The headquarters of Apple Inc. are located in California, USA, but it has 284 retail stores in 10 countries (apart from an online store), and engineering operations in Paris and Tokyo. Hence, employees from diverse backgrounds have to be employed and managed.
So far 75,000 employees have been hired worldwide at Apple who, in 2008, gave Steve Jobs a 91% approval rating. This is because Jobs uses his natural interpersonal skills to deal with employees from diverse backgrounds. This philosophy of making people from different cultures comfortable is what has earned him a unanimous approval rating from his employees. Akio Toyoda (Inheritor of a Legacy) Roots Toyoda was born in Nagoya. The descendants of Sakichi Toyoda who established Toyoda Automatic Loom Works, have long dominated the upper management of Toyota Motors, which was incorporated in 1937.
Shoichiro Toyoda was born in Nagoya on February 17, 1925, the son of Kiichiro Toyoda, who would become the president of Toyota between 1941 and 1950 and in due course, Shoichiro Toyoda became president of the company between 1982 and 1992. His 52-year old son, Akio Toyoda, was the chief contender for the office of president when Katsuaki Watanabe relinquished that post to become Chairman; and the expectation was confirmed in 2009. Vision Akio Toyoda’s vision basically is to contribute to society.
Toyota’s original statement of purpose as a company in 1935, states that they must contribute to the development and welfare of each country they operate in by working together, regardless of individual position, in faithfully fulfilling their duties. In other words, they must manufacture high-quality vehicles for the benefit of society; Akio having the traditional personality has incorporated this value in his vision moving forward. Contributing to society according to Akio means two things. First, it means to manufacture automobiles that meet the needs of society and enrich people’s lives.
And second to take root in the communities they serve by creating jobs, earning profits and paying taxes, thereby enriching the local economies where Toyota operates. Akio’s vision as a company is that they must reaffirm and all share the mission of contributing to society through the manufacture of automobiles. And also must implement the principles Toyota has held, to firmly sail through times of trouble. His vision also includes taking out time for walking in their customers shoes, and then launch competitive products that address their needs.
He thinks expanding their reach in these markets will help increase their overall sales volume and profits, so basically he is determined to establish a proactive business plans in these areas. Management Style Akio Toyoda’s management style is based on ‘Genchi Genbutsu’ which means to ‘go and see’, this principle tells that you cannot truly understand how the process works until and unless you go and see it for yourself. Akio focuses on product-focused management according to him rather than asking, “How many cars will we sell? ” or, “How much money will we make by selling these cars? we need to ask ourselves, “What kind of cars will make people happy? ” as well as, “What pricing will attract them in each region? ” Then we must make those cars. The recently released third-generation Prius is a prime example of this spirit. Akio Toyoda focuses on the regional markets more because he believes that management style that closely watches consumers and markets, notices changes, and allows those best acquainted with a particular market to make prompt decisions. Akio also bases his management style on the famous 14 principles of Toyota, which are based on following 5 values: ?
Challenge ? Kaizen (improvement) ? Genchi Genbutsu (go and see) ? Respect ? Teamwork Motivation Akio Toyoda himself is an amateur racer. His motivation to build cars comes from the love of cars, he suits up for competitions like the 24-hour endurance contest in Nurburg, Germany because according to him racing has a lot to do with the development of cars, and he wants Toyota’s cars to be seen more than just device that is used by people to take them from one place to another. His motivation also comes from the fact that he is the randson of Kiichiro Toyoda who started this company in 1933 and who also had a passion for cars. Another motivation that we may attribute to him is that he inherited a legacy and now he must strive to propel the business forward which he inherited. Accomplishments Akio Toyoda is the president and CEO of Toyota Motor Corporation . He received his MBA from Babson College in the United States. He joined Toyota in 1984, became a board member in 2000 and achieved the post of the executive vice president in 2005, taking charge of Japanese sales and overseas operations.
In January 2009 he was announced as the forthcoming president of the company. On June 23, 2009 he was confirmed as the new president of the company, along with four new executive vice presidents and eight new board members. He received his MBA from Babson College in the United States. Previously Mr. Toyoda has been President of Hitachi Ltd and Honda Motor Co. since March 2009. Mr. Toyoda served as an Executive Vice President of Toyota Motor Corp. from January 21, 2005 to June 2009. He served as a Senior Managing Director and Chief Asia & China Operations Officer of Toyota Motor Corp. ince 2003 and served as its Division General Manager of Taiwan & China Offices. Also previously, he served as Vice President at New United Motor Manufacturing Inc. , a Fremont, California-based joint venture between Toyota and General Motors Corp. Mr. Toyoda served as Chairman and Director of Guangqi Toyota Engine Ltd. since April 1, 2004. He serves as a Vice Chairman of Gamagori Marine Development Co. , Ltd. He served as Director of Aisin AW Co. , Ltd. He has also served as an Auditor of Shiroki Corp. Media Portrayal Media portrays Akio Toyoda as both a positive and a negative impact for the company.
For instance, Tatsuya Mizuno, an analyst at Fitch Rating said: ‘Mr Toyoda is thought to be charismatic, because he is a member of the founding family. But we do not know yet what his management style will be. They need a drastic change of strategy’. Akio Toyoda has been facing media criticism since his start as a president and the recall issues. A local U. S media commented: ‘Akio Toyoda has strongly held views about the importance of quality and reliability in Toyota’s history, and the role of his family in the company’s success. But neither he nor his father has confronted the recall problem head on in public.
The younger Toyoda has even gotten the nickname “no-show Akio. “’ Also it is said that Toyota embraced and fostered silent problems (problems that were being avoided, neglected, going unnoticed or being intentionally silenced), and are now suffering the outcomes. Toyota’s President, Akio Toyoda has proclaimed repeatedly that the fix they are proceeding with has been tested and has assured customers, ‘this will fix any problems that could be associated with unintended acceleration. ’ Today, Toyota’s that have received the fix are still experiencing acceleration.
We are wondering, will Akio Toyoda be known for how he mishandled a disaster, and the crumbles that are yet to come. (Posts Tagged ‘Akio Toyoda’, Thursday, March 4th, 2010) Advice Akio Toyoda in response to the recent controvery of toyota’s car recalls and not fulfilling the leagl obligations related to car safety adviced its employees that: “ I recognize that we must do better—much better—in responding to safety issues. ” Through the continuing days of the controversies Akio also commented that; ‘There’s no change in the fact that we are in stormy waters. But now I feel that even in the storm, we can see a ray of sunlight in the distance. his advice to future generations is to keep going on inspite of difficulties and not to take media criticism personally. Coming from a collectivist culture he advises us to keep good working relationships with people inspite of differences in style and method. Diversity Toyota corporation is a mix of various cultures, ages, religions and beliefs. With more than 70 nationalities ,13 percent of their female and 87 percent male workforce along with encouragement to the employment of disabled, Toyota takes advantage by recognising and respecting both their similarities and differences.
In this way, Toyota aspires to continue to maintain a skilled and enthusiastic workforce which they hire from a diverse backgrounds, views and experiences. Toyota was named to be one of Diversity Inc. ‘s Top 50 Companies for Diversity, finishing 40th overall in the magazine’s ninth annual survey. After Akio became its official president, Toyota, for the third time has been recognized by Diversity Inc. It is said to demonstrate consistent strength in four areas: CEO Commitment, Human Capital, Corporate and Organizational Communications, and Supplier Diversity. According to Diversity Inc. the key factors in Toyota’s success were its 11 strong employee-resource groups, including religious and veterans groups; its strong mandatory diversity training and the metrics used to assess its success; and its efforts to help multicultural communities. (New York, NY). Toyota started a Diversity Project based on the concept expressed in Toyota’s Global Vision 2010 of “promoting the creation of environments featuring people from around the world with various abilities and values who are given the opportunity to experience self-realization as individuals. which is so far successful. Part III Comparison Analyzing the key elements in both the leaders’ styles, background, education, vision and way of running their respective businesses, we have prepared a list of comparing and contrasting factors which dominate their personalities and made them the leaders that they are today. Here is the crux of our study: Differences in leadership styles • Vision Akio Toyoda has a vision to serve the society by providing best products on one hand and benefiting societies on the other hand by creating a healthy symbiosis at large. hile Steve Jobs at Apple believes ; “Apple is committed to bringing the best personal computing experience to students, educators, creative professional and customers around the world through its innovative hardware, software and internet offerings” so it focuses more on its service rather than contributing to community on other levels. • Business Approach Steve jobs has a more task oriented approach rather than people oriented; his style is to demand perfection, excellence, precision and exactness from employees, while Akio Toyoda has an employ oriented approach of management. • Leadership Style
Jobs has a transformational leadership style. He brought radical changes in the Silicon Valley thus breaking into the already established digital fortresses while Toyoda seeks a proactive business relationship wherever he goes. • Managing Human Resource Jobs is known for hiring the ‘right kind of people for the right job’. His management style is effective but demanding. Overall one can say that he is an excellent manager who keeps things straight under his iron jaw. Toyoda’s style can be considered as less aggressive; he focuses more on building an amicable relationship with his employees. Market Expansion and Diversity Akio Toyoda focuses on the regional markets more because he believes in the management style that closely watches consumers and markets, notices changes, and allows those best acquainted with a particular market to make prompt decisions while Jobs strives to lead the pack and penetrate new markets. As previously mentioned, in the February 2010 issue of The Economist, Jobs’ ability to penetrate new markets successfully has earned him an unparalleled reputation in the business world. Adhering to Norms Toyoda’s management style can best be described as “go & see” while a revolutionary like Steve Jobs wants to see the world through his own lens. His innovative products and unconventional business practices has earned him and his company a strong, in fact a leading market position, therefore we can say that the former cuts his way out through market challenges while the latter refuses to be dictated by the market; rather he aspires to lead and influence it. • Traditionalist Vs. Innovator
Akio also bases his management style on the famous 14 principles of Toyota based on 5 values i. e. Challenge, Kaizen (improvement), Genchi Genbutsu (go and see), Respect and Teamwork, while Jobs has his unconventional dogma that “I’m looking for a fixer-upper with a solid foundation. Am willing to tear down walls, build bridges, and light fires. I have great experience, lots of energy, a bit of that “vision thing” and I’m not afraid to start from the beginning. ” Hence, we can say that Toyoda is a traditionalist while Jobs is an innovator. Education and Background Akio received a sound education as well as necessary training along with the company’s signature values as his beacons which, combined with his progressive approach, determines Toyotas laurels, while Jobs is an entirely self-made businessman who is fast, innovative and rejects conventionalities. • Proactiveness Jobs is a perfectionist. His uncompromising attitude might have caused him peer problems but eventually it led Apple to its hallmark.
He can be said to be a believer of the Theory X whereupon he considers it his responsibility to control and manage employees and get the best out of them Whereas, Toyoda has the habit of fostering problems silently which can have negative consequences on the company. This is a common trait in managers who follow Theory Y, as they expect employees to be self-responsible and manage problems themselves. • Managing Diversity Akio Toyoda has a very humane approach when it comes to dealing with employees. According to Diversity Inc. ey factors in Toyota’s success were its 11 strong employee-resource groups, including religious and veterans groups; its strong mandatory diversity training and the metrics used to assess its success; and its efforts to help multicultural communities (New York, NY). . Jobs solely focuses on entrepreneurial aspects by taking the lot under his organizational umbrella, and expecting all the employees to deliver their best on the job. • Acceptance of Failure Jobs is a self made business tycoon who has endured the ups and down of his career.
Hence, he has an uncompromising attitude and this aspect of his personality that made it very difficult for him to accept failure or rejection. In contrast, Toyoda, since he has inherited his position in the company, is more relaxed when it comes to major business decisions. His relaxed management style is in direct contrast to Jobs’ aggression and perfectionism. • Creativity and Innovation Where Steve Jobs can be seen as a creative visionary, Akio Toyoda follows only one tradition of building more and more profits for the company he is serving.
If we analyze the entire career of Toyoda we can say that somewhere, at some point, his commitment to run the business overpowers his creative powers and ability to innovate. Similarities in Style • Passion to Bring about a Change Both have ardent passion for their respective fields. Jobs has a flair for innovation and wants to revolutionalize the world of technology apart from business growth. Toyoda also has a vision to serve the society through the work that he does. • Optimism Both are absolute optimists.
Jobs has the habit of taking risks and treats his failures and bad experiences as learning opportunities. Akio, while admitting that his company is in ‘stormy waters’ still sees remains optimistic despite the media furor. • Diversity Both of them allow diversity to get variation in talents, markets and innovation. • Keen Business Sense Both have keen business acumen and adjust their sails according to the changing winds, thus confirming to Darwinian rule of ‘survival of the fittest’. • Inspiration for Future Generations
Both are leaders in their own right and may be looked upon as an inspiration for future generations. Observations and Predictions about Leadership in the Next Century Both leaders have distinct visions and predictions about the factors that will shape leadership in the next century. Toyoda, in line with the Toyota philosophy feels that in order to survive in the globalized era, one must not be hasty; instead one should take time to consider whether the steps being taken are benefiting the society or not.
To keep up with the innovations and ever-changing demands, it is necessary to help employees and inculcate in them the skills necessary to perform well. In contrast, Steve Jobs feels that surviving in the competitive global era requires immense passion, zeal and a willingness to take risks. Instead of settling for one thing, one should keep climbing ladders and find new and innovative ways for transforming the market place. There is no way to be on the top except to be the first.
Only then will one be able to become a leader in the truest sense of the word. Conclusion Keeping in mind the above view of the global era through these two leaders’ eyes it can be concluded that in order to become an effective manager and leader in the competitive environment it is important to follow a leadership style that not only suits the demands of the situation, but also enables one to build long-term relationships with the people who are also an important part of the picture, and whose importance should not be ignored.
In addition to this, one should try to develop a keen business sense, a thorough understanding of global markets and zeal to develop new and innovative products that are useful to consumers and beneficial to the society. Annexure Exhibit 1: [pic] Authority – Compliance Management or task management (9, 1) Leaders who fall in this category heavily emphasize results with minimum concern for people. They consider people merely as a means to achieve desired results. The leader is often characterized as controlling, overpowering, over driving and coercive.
Country club management (1, 9) Leaders falling in this category are those who are concerned more welfare and personal needs of people and lack the focus on task accomplishment. The leader is often characterized democratic but also is seen as ineffective in driving the people toward achievement of goals. Impoverished management (1, 1) Leaders in this category are generally those who arrived here merely by means of their position, and are simply viewed as going through the motions of being a leader. They are characterized as indifferent, non-committal, un-involved and withdrawn.
Middle of the road management (5, 5) Leaders in this category seem to achieve a “balance” between people relationships and results, but are basically compromisers in nature. They compromise on conviction to make some progress and as a result miss out on push for results and also on drive for creating a true team culture. Such leader is characterized as avoiding conflicts. Team management (9, 9) Leaders in this category consider people relation, commitment and empowerment as a means of achieving goals.
They are open to learning, view conflicts as opportunity for innovative thinking, clarify goals and set high expectation and provide learning opportunity for people in the course of completion of the task. Such leader is characterized as driving trust and learning in the teams. Exhibit 2: Cover page of the February 2010 issue of The Economist [pic] Exhibit 3: Family Tree of Akio Toyoda Exhibit 4: Toyota’s 14 Management Principles [pic] Principle 1 ? Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.
People need purpose to find motivation and establish goals. Principle 2 ? Create a continuous process flow to bring problems to the surface. Work processes are redesigned to eliminate waste (muda) through the process of continuous improvement — kaizen. The seven types of muda are: 1. Overproduction 2. Waiting (time on hand) 3. Unnecessary transport or conveyance 4. Overprocessing or incorrect processing 5. Excess inventory 6. Motion 7. Defects Principle 3 ? Use “pull” systems to avoid overproduction. A method where a process signals its predecessor that more material is needed.
The pull system produces only the required material after the subsequent operation signals a need for it. This process is necessary to reduce overproduction. Principle 4 ? Level out the workload (heijunka). (Work like the tortoise, not the hare). This helps achieve the goal of minimizing waste (muda), not overburdening people or the equipment (muri), and not creating uneven production levels (mura). Principle 5 ? Build a culture of stopping to fix problems, to get quality right the first time. Quality takes precedence (Jidoka). Any employee in the Toyota Production System has the authority to stop the process to signal a quality issue.
Principle 6 ? Standardized tasks and processes are the foundation for continuous improvement and employee empowerment. Although Toyota has a bureaucratic system, the way that it is implemented allows for continuous improvement (kaizen) from the people affected by that system. It empowers the employee to aid in the growth and improvement of the company. Principle 7 ? Use visual control so no problems are hidden. Included in this principle is the 5S Program – steps that are used to make all work spaces efficient and productive, help people share work stations, reduce time looking for needed tools and improve the work environment. Sort: Sort out unneeded items ? Straighten: Have a place for everything ? Shine: Keep the area clean ? Standardize: Create rules and standard operating procedures ? Sustain: Maintain the system and continue to improve it Principle 8 ? Use only reliable, thoroughly tested technology that serves your people and processes. Technology is pulled by manufacturing, not pushed to manufacturing. Principle 9 ? Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. Without constant attention, the principles will fade.
The principles have to be ingrained, it must be the way one thinks. Employees must be educated and trained: they have to maintain a learning organization. Principle 10 ? Develop exceptional people and teams who follow your company’s philosophy. Teams should consist of 4-5 people and numerous management tiers. Success is based on the team, not the individual. Principle 11 ? Respect your extended network of partners and suppliers by challenging them and helping them improve. Toyota treats suppliers much like they treat their employees, challenging them to do better and helping them to achieve it.
Toyota provides cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier. Principle 12 ? Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu). Toyota managers are expected to “go-and-see” operations. Without experiencing the situation firsthand, managers will not have an understanding of how it can be improved. Furthermore, managers use Tadashi Yamashima’s (President, Toyota Technical Center (TTC)) ten management principles as a guideline: 1. Always keep the final target in mind. 2.
Clearly assign tasks to yourself and others. 3. Think and speak on verified, proven information and data. 4. Take full advantage of the wisdom and experiences of others to send, gather or discuss information. 5. Share information with others in a timely fashion. 6. Always report, inform and consult in a timely manner. 7. Analyze and understand shortcomings in your capabilities in a measurable way. 8. Relentlessly strive to conduct kaizen activities. 9. Think “outside the box,” or beyond common sense and standard rules. 10. Always be mindful of protecting your safety and health.
Principle 13 ? Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi). The following are decision parameters: 1. Find what is really going on (go-and-see) to test 2. Determine the underlying cause 3. Consider a broad range of alternatives 4. Build consensus on the resolution 5. Use efficient communication tools Principle 14 ? Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen). The process of becoming a learning organization involves criticizing every aspect of what one does.
The general problem solving technique to determine the root cause of a problem includes: 1. Initial problem perception 2. Clarify the problem 3. Locate area/point of cause 4. Investigate root cause (5 whys) 5. Countermeasure 6. Evaluate 7. Standardize Exhibit 5: Toyota’s Diversity Project System for Helping Employees Accomplish both Child Rearing (or Nursing Care) and Work [pic] *A system similar to the child rearing system is used in the case of nursing care Trends in Ratio of Female Employees (Example of Administrative Positions) [pic] Trends in Toyota’s Disabled People Employment Ratio pic] References Moisescot, R; “Steve Jobs: The Long Biography”; All about Steve Jobs. com, pp. 16-22, 2000 Chandi, A; “Steve Jobs Biography”; Buzzle. com- Intelligent Life on the Web, 2002 Young, J. S and Simon, W. L; “Icon Steve Jobs: The Greatest Second Act in the History of Business”, Navta Association, Inc, John Wiley & sons, Inc, pp. 133-135, 2003 Macmanus, R; “Book Review: Insidie Steve’s Brain”, 2008 http://www. readwriteweb. com/archives/inside_steves_brain. php http://www. macobserver. com/tmo/article/Apple_Employees_Give_Steve_Jobs_a_91_Approval_Rating/ (Visited: 10/05/2010)
Gomstyn, Alice; Toda, Miki; ‘Akio Toyoda: From Passionate Racer to Embattled Toyota President’, Feb. 25, 2010. Graban, Mark; ‘Akio Toyoda’s Testimony to Congress’, February 24, 2010. http://money. cnn. com/2009/06/23/autos/akio_toyoda_toyota_new_president. fortune/index. htm? postversion=2009062605 http://en. wikipedia. org/wiki/Akio_Toyoda http://en. wikipedia. org/wiki/Akio_Toyoda Graph and diagram: http://www. toyota. co. jp/en/environmental_rep/03/jyugyoin04. html (Visited: 14/05/2010) http://psychology. about. com/od/leadership/p/leadtheories. htm http://psychology. bout. com/od/leadership/p/leadtheories. htm (Visited: 22/05/2010) ———————–  Exhibit 1: The Leadership Grid  In early 2009, he was forced to take a five-month leave of absence (to undergo liver transplant), after which he resumed his role as CEO of Apple.  Exhibit 2: Cover page of the February 2020 issue of The Economist  The above advice was given by Jobs after he was told by doctors that he was going to die from pancreatic cancer, and then told he would live again- hence the philosophical undertones.  Exhibit 3: The Family Tree of Akio Toyoda