Toyota vs General Motors essay

Toyota Motor Corporation, abbreviated as TMC, is the world’s largest automobile manufacturer by sales and production with Headquarters in Japan. 317,734 people were employed by Toyota globally in 2010.

General Motors Company, abbreviated as GM, is the world’s second largest automaker after Toyota. It’s a multinational automaker based in Detroit, Michigan.

The old original General Motors Corporation was founded in 1908, it has experienced tough times recently and has collapsed under the weight of foreign competition, dwindling sales, and a global credit crisis that’s left it without enough cash to survive. It was reestablished in 2009. In 2010, 209,000 people were employed by GM. Almost for a century; GM was world’s largest car maker till 2008, when it was surpassed by Toyota. It not only led in automotive innovations, but helped define the new breed of massive, bureaucratic multinational corporations that shaped the post-war economy.  GM’s largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Russia.(“About GM”, n.d.)

The decision making

The accurate consideration of decision making is one of Toyota’s main principles.

Some of new Toyota’s employees never have faced this style of decision making before, so they had to learn the Toyota way of decision making.

Decision making in accordance with Toyota corporate culture dramatically differs from the other companies’ behavior. The quality of decision is important as the way you get to this decision (no matter that it’s a time consuming process).

Workers are aware that if the process was made correctly, the head managers will forgive them (even if the result of this decision wasn’t good). And on the opposite, an accidental decision that had a good result and wasn’t made properly in accordance with rules, will likely lead to the discontent of the head manager.

Toyota leaders pay attention to every detail and that is a widespread practice among companies from Japan.

The decision making according to Toyota rules consists of five elements:

• Finding out what is really going on;
• Understanding underlying causes;
• Considering alternative solutions;
• Building consensus with employees and partners;
• Using efficient communication means.(Liker and Hoseus, 2008)

In regards to decision making in General Motors, it’s usual for every big American corporation. Previously GM used to make decisions taking into account the results of executives’ meetings on strategy matters, and also market-research results and focus groups opinions. But recently GM management understood that the company has to renew the connection with the consumers. (Stoll and Terlep, 2009)

Both Toyota Motors and General Motors follow two trends towards the hours worked expectations and overtime expectations.

These are the lengthening of the working day and the pace of work intensification. Analysts confirm that the working time is intensified as never before, because the working day is divided and planned in the most productive way.

Career paths and teamwork expectations

According to Liker and Hoseus (2008), there are general three career paths in automotive companies (we do not take into account the managerial positions):

– The first career path is a production worker;

– The second career path is a skilled trade’s maintenance worker;

– And finally the third career pat is an engineer’s position.

Ethics in business

Toyota Motors has accepted “Toyota Code of Conduct” and it regulates management’s and workers’ behaviors. Both have to be highly ethical in accordance with the Code’s principles. (Toyota Code of Conduct, n.d.). General Motors has also formed its own Code of Conduct.

International corporations like Toyota and General Motors becoming multi-cultural institutions. It may present some challenges to employers, for example, harassment in the workplace has become an important issue at GM.

Diversity of the workforces

Both companies have worked for many years to understand and promote diversity in the workplace.

Essential part of Toyota corporate culture is diversity. According to the company’s leaders diverse workforce maintenance is a combination of two components of the Toyota Way – continuous improvement and respect for people.

In general, diversity includes many dimensions: age, family status, culture, language, physical abilities, religion, sexual orientation, union, non-union, military status, etc.

The wide selection of talents and background can be found among Toyota employees.

In GM leaders’ opinion multicultural workforce is a vital connection between the workplace and the marketplace. They insist that the diverse talents of GM employees provide better results in innovation process, help to develop best products and services.

According to the GM corporate site, the company’s vision on diversity is ”A winning culture of inclusion that naturally enables GM employees, suppliers, dealers and communities to fully contribute in the pursuit of total customer enthusiasm.” (“Diversity initiatives”, n.d.).

The creation of a proper work environment in which everyone can contribute in the best possible way actually depends on diversity. It’s also a permanent challenge to recognize and change old behaviors and opinions.