¶ … Toyota culture that culminated in the safety issues and decline of the Toyota company although this is controversial;. Some say that the Toyota culture with its emphasis on family inheritance engendered decline, whilst others say that it was the reign of t he non-family members that culminated in the decline. Still others insist that there was no decline at all and that that Toyota still shows profit. Either way, there seems to be unanimous agreement that internal corruption which includes protekzia of family members ruling the organization and promotion and employment acquisition working on connection rather than merit works to destruction of organization and should be eradicated for th e-company's good.
Mr. Toyoda's in-house detractors say the president has created an informal team of loyalists, making it tough for managers trying to communicate through the formal channels. One non-family manager says the current executive structure operates like a "shadow management team," doubling up information and management. (p.5)
Other complaints include the fact that leaders, such as Mr. Toyota, were slow in addressing the press regarding the controversies and that they kept them hidden and underground for as long as possible, refraining from addressing them. This can be detrimental to the company's general strategy since it needs to maintain its shareholders...
Failures such as these reveal weaknesses and can make the public distrustful of the company as a whole.
Returning to the Toyota culture, non-Toyodians ran the company from 1950 to 1967, but the feud really began in the mid-1990s, when the family relinquished control of the chief executive's office for the first time since Eiji Toyoda, the cousin of the founder, became president in 1967. When the present Akio's uncle, Tatsuro, stepped down from a stroke, the company was doing very badly barely able to compete in the trade friction with the U.S., the weak Japanese economics, and the Japanese currency that was playing havoc with exports.
It was only when the non-Toyodians took the helm beginning with Mr. Okuda in 1995 and ending with Mr. Watanabe in 2009. that Toyota gained the strong reputation that it has today.
It was the non-Toyodians who devised the "2005 vision" as well as the "global master plans" and "global profit management plans' that would be used to realize this vision during the intermittent 10 years. It was they, to, who implemented revolutionary innovations that gave th e-company a place in hsiotry and raised it to unprecedented highs. In the 15 year non-family reign, Toyota not only displaced GM as the world's biggest auto maker but also made profits that…
