Cultural Diversity Strategy of Toyota Motor Corporation
Introduction
Multinational corporations, massive organizations and medium to large size companies confront multiple issues that hinder their progress and growth worldwide. Sometimes, these issues may have potential to boost the company progress in the vicinity of global market. One such top ranking aspect that most of global companies face is cultural diversity. The employees from different cultural backgrounds need immense attention of policy makers to formulate such a comprehensive strategies to boost their potential instead of becoming a problem for the company. In this context, the cultural diversity and inclusion may become a blessing in disguise and companies transform such issues into assets for better progression (Koohang et al., 2023, p.735-765). For compiling a comprehensive report on cultural diversity strategy, Toyota Motor Corporation is selected as a prestigious and concerned company. This company has marvellous history of decades to flourish its business around the globe in several capacities and huge list of products. However, this report will explore the overview of Toyota Motor Corporation, its organizational introduction, comprehensive analysis of diversity management level, evolution of cultural diversity in alliance with the designing of organizational strategies.
Company Overview: Toyota Motor Corporation
Toyota Motor Corporation established decades ago in 1937 with headquarter in Tokyo, Japan is an automotive manufacturing multinational company. Based on its wide range services and products, it has become globally renowned and leading icon in automotive sectors. With huge experience, the company is committed to innovation and sustainable development by focusing on hybrid and electric vehicles in alliance with the traditional vehicles. In this way, the company is pioneer in hybrid technology with primary focus on eco-friendly transportation. Technological advancement, sustainable environment, greener transportation facilities and reduced carbon emissions are the core objectives of Toyota. For achieving these goals, Toyota mainly prefers research and development of automotive innovations. Hence, the company invests huge resources in emerging technologies for the incorporation of latest technologies in automotive industry (Toma and Naruo, 2017, p.566-580).
Organizational Introduction
Toyota Motor Corporation is a massive company with enlarged and diversified organizational set up. Having branches in all regions and big countries in theworld, Toyota has evolved a complex and comprehensive organogram with numerous departments and divisions. Each unit is responsible for specific functions and ultimately adds to the growth and progress of the company. Hence, it operates in numerous sectors within the range of automotive industry including passengers, baggage, commercial and luxury vehicles. The product portfolio is inclined to diversity like cars, SUVs, trucks and modern electric and hybrid vehicles. Popular car models like Toyota Camry, Corolla, Prius, while truck models may range from Toyota Tacoma to Toyota Tundra. Meanwhile, other than multiple sectors, Toyota also handles broad based customer range including corporate industrial units, fleet buyers in alliance with individual customers (Toma & Naruo, 2017, p.566-580). The company tries its best to meet the needs and preferences of tribal to city in alliance with rural cultures.
Additionally, other than vehicle manufacturing, numerous range services are also the trademark of Toyota. These services may include after-sale practices, repair-maintenance options, spare parts auctions, customer satisfaction and service centres etc. Similarly, it provides professional support and guidance in the form of dealerships around the globe in alliance with financial services including lease option on particular terms and conditions. Further, the customer range of Toyota may include business and organizational requirement to individual needs. Multiple purposes like logistics, corporate and transportations aspects can also be efficiently entertained by the company. In addition, the durably, enhanced quality, incorporation of modern technology and ensuring sustainably are the core characteristics if Toyota.
Level of Diversity Management Development Analysis
For Toyota Motor Corporation, the level of diversity management development needs a comprehensive analysis revolving around policies, practices and overall initiatives that company takes from time to time (Jones & Sopiars, 2018). Based on available information about Toyota, it can be estimated that company is inclined with great commitment to cultural diversity. It actively promotes cultural diversity and inclusion among the workforce for countering global completion (Toyota Motor Corporation, 2022). In this context, the company focuses on significance of diverse perspectives to drive innovative environment by utilising all the available resources. Toyota has initiated various programs within the organization to substitute diversity among workforce on priority basis. In addition, a dispute settlement cell is established to settle all the issues among employees. The significance of this centre lies in the fact that it provokes training and awareness among workforce of different backgrounds instead of punishment philosophy. Hence, it indicates that a high levelled diversity management development exists in the organization to meet the challenges.
Stage of Diversity Management Development for Toyota:
Toyota Motor Corporation can be classified as the company which is currently on “Cultivating Diversity and Inclusion” stage. This stage is characterised as the integration of inclusion and diversity amalgamation in policies, activities and culture of the company. At this stage company has taken multiple steps to promote these features among employees. From recruitment strategies to training schedules, Toyota have enacted grouping and networking polices to implement diversity and inclusion. Additionally, the production drives, manufacturing procedures and business strategies are aligned with diversity in this organization. The decision-making authorities are well aware of their global customers’ needs with diversified cultural backgrounds. So, they consider a wide range inclusion among several quarters of organization. Meanwhile, the evaluation and monitoring of diversity initiatives ensure top management’s devotion to embrace diversity.
Organisation’s characteristics and motivation to incorporate diversity practices:
Toyota has shown a strong commitment to entertain diverse cultural practices concerning diverse workforce. The primary motivation behind such emphasis revolves around the target fulfilling desires of the company which attributes to different key factors. These factors may encompass inventions, new horizons in the automotive field, capturing vast market share by satisfying the customer slots, and promoting impactful corporate cultures (Toyota Motor Corporation, 2022). Meanwhile, several characteristics in alliance with the motivational dimensions are decisive to incorporate diversity practices and inclusions. These characteristics revolve around the strategies devised to accomplish recruitment procedures, intensive training programs along with employees’ networking systems. All these characteristics contribute towards a highly positive environment in the company even having huge cultural differences in its foundations. In addition, these characteristics leave lasting impacts necessary for behavioural changes and also required for company’s efficient functioning.
Evaluation of Cultural Diversity
Current Organizational Approaches to Cultural Diversity and Inclusion:
Toyota Motor Corporation is deliberately inclined to multiple approaches concerning cultural diversity and inclusion. The said organization strives for the diverse workforce as it knows the value of an inclusive environment for the development and growth of the company. Multiple cultures and various cultural backgrounds of the employees ensure a variety of experiences in the company which ultimately leads to unique growth perspectives. Meanwhile, one such approach is training program where Toyota implements massive diversity. Through these programs, company ensures to educate its workforce to adopt inclusive behaviours by spreading awareness and illuminating cultural differences. In this way, the company promotes an inclusive environment among employees with the help of various tools and specified knowledge about diversification (Toyota Motor Corporation, 2022).
Similarly, another approach adopted by the company is to formulate affinity networks or ERGs (employee resource groups). These aim to get employees come together with different backgrounds and support each other even having different cultures. In this way, diversified culture may contribute to initiate a supportive environment in the company. Other than trainings and group formation, Toyota also accepts diversity during recruitment campaigns and talent hunt programs. From the employees’ recruitment drives, the company establishes a strong foundation of cultural diversity and allow massive majority to join the organization with different backgrounds.
Business Challenges:
However, cultural diversity can significantly impact businesses in various ways. Two key business challenges where cultural diversity plays a crucial role are global expansion and effective communication. Any company when expands in new region, area or market, usually confronted with such cultural values, customs, norms, traditions and practices. These confrontations leave lasting impressions on customer preferences, demands, behaviours and business practices. So, failure to understand these differences and their timely adoption hinder the success rate of company in new market trends. For example, product localization, market trends and customer relationships revolve around the particular business etiquettes of specific regions. Hofstede’s Cultural Dimensions Theory identifies power distance, collective wisdom application and uncertainty avoidance to shape individual behaviours. The application of this theory may assess cultural differences and help in devising strategies to counter bad impacts of cultural diversity during global expansion. So, companies become direly bounded to embrace and formulate policies to effectively counter and succeed in global expansion (Hofstede, 2001).
Furthermore, cultural diversity poses massive challenges in communication context within an organization. In this way, language proficiency, non-verbal gestures, lingual styles and specific communication signs influence the smooth running of company’s working when employees of different cultures come together. In such situations, misinterpretation and misunderstanding may lead to chaotic circumstances by ceasing teamwork and collaboration. So, companies need to ensure cross-cultural training to employees and clear the communication channels for promoting cultural sensitivity among employees (Gudykunst & Kim, 2003). Correspondingly, the Intercultural Communication Competence (ICC) model emphasises to develop some skill based strategy to counter intercultural communication barriers. For this purpose, the model provides guidelines for organizations to enhance cross cultural communication abilities by designing various training programs.
Organisational Strategies
Strategies for Diversity and Inclusion at Toyota Motor Corporation:
Several strategies can be planned to ensure and enhance value through diversity and inclusion in the Toyota Company. The foremost significant strategy is improving cultural competency among employees through the training modules. These would be concrete source for comprehensive understanding of various traditions, customs, cultures and styles of communication. In this context, not only the employees of the company but also the customers with diversified background can be entertained in effective manner (Kalev, et al., 2006, p.589-617). Similarly, another strategy may revolve around the mentoring and sponsorship program for the employees to gain in-service opportunities. Mentoring may allow the company authorities to pair those employees having cultural differences which ultimately help to mitigate differences. In addition, it will enhance inclusivity within the vicinity of Toyota Company.
Additionally, another strategy that may prove fruitful is increasing diversification among the top leadership and decision making authorities. In this way, the representation of different cultural backgrounds at higher levels in the organization may pave the way towards several benefits. These may include broad range insights, impactful decision making, and novel innovative ideas (Catalyst, 2021).
Transforming Challenges into Opportunities:
In diverse cultural settings, global expansion and effective communication may be labelled as the primary challenges with lasting impacts. However, Toyota can transform these challenges into fruitful opportunities which ultimately add value to the organization. Firstly, the company can pull cultural diversity to obtain favours from global market. The incorporations of diversity can fetch customers from multiple cultures resonating around the products. In addition, it may increase the customer satisfaction level which expands the market share for the company at global level (Moran, et al., 2014, p. 1278-1294). Correspondingly, diversity may accelerate creativity and ponder innovations within the company. Sharing of unique ideas, experiences and opinions of culturally diverse workforce would result in new products. As a consequence, the growth and development of the company will touch the sky (Hülsheger, et al., 2009, p.1128-1145). Similarly, overcoming communication barriers in Toyota may lead to informed and updated decision making. The company in this way utilise the collective wisdom to ensure successful outcomes in the presence of diversified culture. In other words, by addressing the challenges effectively and turning them into opportunities, Toyota can strengthen its internal operations concerning cultural inclusion.
Consideration of Multiple Perspectives:
The proposal of strategies for inclusion and diversity at Toyota needs to consider various perspectives including top leadership, culture of the organization, teams and staff members, etc. Concerning leadership perspective, it is pertinent to mention that leaders are key stakeholders to shape cultural diversity. Leaders are responsible for setting tone from top to bottom for diversity, promotion of inclusive mentality, and ensuring accountability (Hunt et al., 2018). Similarly, organizational culture perspective cultivates new values in the organization. These may revolve around promotion of opportunities, enhancing collaboration, and mutual respect among workforce members. For achieving these benefits, comprehensive trainings, updated policies and rewarding environment are helpful (Schein, 2010).
Moreover, cultural diversity among team members leads to creativity, enhances problem solving ability and develops numerous ethical norms. For team members, it provides a broad platform where knowledge sharing through dialogue increases the efficiency and performance of team. It is also pertinent to mention that experiences of staff members play key role to develop diversity and inclusion strategies. Vast opportunities, employee’s feedback, and group focused surveys may be results which ultimately ease the decision making processes.
Addressing Cultural Differences:
For consideration of devised strategies several proposals may be helpful to mitigate the bad impacts of cultural differences. Various training programs at leadership and employees levels can be effective to understand multiple cultures. These training programs may equip the participants with required skills and communication options to intermingle with different cultures (Gudykunst & Kim, 2003). Similarly, ERGs (Employee Resource Groups) elaborate diversity by providing experience sharing platforms. Such grouping lessens the cultural gaps and creates a balanced team of employees within the organization. Above all of these, the most impactful accommodation is the development of inclusive policies. The policies and practices thereupon should be flexible according to different cultures including cultural holidays, respecting values, beliefs, customs and traditions of others for better working environment (Moran et al., 2014). However, the incorporation of these suggestions may enable the Toyota to devise an environment more efficient and working-oriented. These suggestions enable employees to work in collaboration and mutual respect for organizational development and also satisfy their respective authentic selves.
Motivating Toyota to adopt more Cultural Diversity:
Certain strategic options can be suggested and implemented to motivate Toyota Motor Corporation for accepting cultural diversity. The first one is emphasizing the positive glimpses of cultural diversity till bottom-line of the company which enhance organizational performance. Research demonstrates that inclusive environment amplify business potential of large companies by enhancing innovation and matching needs of the stakeholders, i.e., customers. So, Toyota must take steps for cultural diversity initiatives. Similarly, another motivation is the alignment of diversity with vision and values of Toyota. Achieving company’s strategic objectives direly needs cultural diversity as its customers range from multiple ethnic, cultural and religious backgrounds. So, continuous improvement needs the top leadership to devise an inclusive environment which will ultimately lead to customer centric policies (Schein, 2010).
Moreover, another motivation is the demonstration and showcasing success stories. Sharing of examples of multiple organizations may provoke Toyota’s interest to embrace cultural diversity. Automotive industry, IT industry, and media industry are well known examples where inclusive environment have played vital role in development. Several companies have earned high levelled achievements, customer loyalty, massive market share and employees’ satisfaction as well. Such stories serve the motivational and inspiration source for Toyota to adopt evidence based polices revolving around cultural diversity (Bresman et al., 2016, p. 343-366).
Justification through various Theories, Models, & Concepts:
In the context of motivation, several theories and models can be demonstrated for adoption of cultural diversity. For example, Social Identify Theory implies that individuals from different backgrounds drive and absorb their self-belonging and importance from social group. In addition, Inclusive Leadership Theory proposes that leadership in organizations earn employees’ contribution and empowerment if they embrace diversity (Nishii & Mayer, 2009, p. 1412-1426). Similarly, Resource-Based View Theory implies the strategic importance of organizational resources. Wide range experiences, skill sets, knowledge-oriented and diversified environment enable the leadership to manage resources successfully. So, Toyota has the brilliant option to adopt cultural diversity which may result in overall increased global market share.
Conclusion
Form above discussion, it can be concluded that Toyota Motor Corporation is an iconic organization in the corporate sector around the globe. Considering its massiveness, the report examines diversity management development at Toyota in alliance with its current stage from divert perspectives. For better performance Toyota is committed to foster diversity and inclusion as an asset by adopting various approaches. In this context, global expansion and communication barriers are significant challenges which direly need the decision makers to design multipurpose strategies. Several proposed strategies in this repent highlight the business benefits of diversity to motivate Toyota to embrace diversity and convert challenges into opportunities. However, various theories and models like Social Identity Theory and Inclusive Leadership Theory help the top leadership to take essence from the experts to align the things in a better way. The need of the hour is to take deep consideration of proposed strategies in this report for positivity and progression.
References
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