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MGMT625 - Change Management Assignment No. 1 Solution Fall 2018 Due Date: December 06, 2018
Change Management (MGMT625)
Assignment No. 1
Toyota Motor Corporation is a Japanese multinational automotive manufacturer
established in 1937. By 2017, it became the world’s second largest automobile
manufacturing organization, and the first company to produce more than one million
vehicles in a year. In 2018 it became the sixth largest company by revenue in the world and
the market leader in sales of hybrid electrical vehicles. But the journey of this success is not
smooth. The organization has to go through a number of organizational changes to keep
pace with the dynamic environment. Soon after its establishment, the World War II had
been started in which Japan has to face the defeat which dramatically affect its industry. As
a result of World War II, the Japanese automotive industry was near to destruction. On the
other hand the industry of the winning side – automobile manufacturers like General
Motors and Fords, were its strong competitors and had the competitive edge. Meanwhile
Japanese industry was facing scarcity of financial and human resources. In such situations
there was a need of some major steps to compete its western rivals. By understanding the
situation, an engineer in Toyota named Taiichi Ohno presented an idea to implement just‐
in‐time approach for manufacturing of automobiles. Instead of manufacturing and storing a
large amount of vehicles and heavy equipment, the idea was to receive supplies when they
require and manufacture a vehicle on receiving order from its distribution network. This
approach can bring efficient use of financial resources, time and space. The vehicles were
only produced when they needed and no storage space was required. But the
implementation of this approach did not happened overnight. According to the company
officials, the Toyota Productions System has evolved through many years of trial and error
to improve efficiency based on just‐in‐time concept. The company describes just‐in‐time
approach as “making only what is needed, when it is needed and in the amount needed”.
After the implementation of the approach, it became the integral part of the company
production system. Now the Toyota Motors is fulfilling its customers’ demand efficiently by
linking all productions activities to real market demand.
Q. 1. Lewin proposed three staged model of a change management process.
On the basis of above mentioned information, you are required to identify each stage. (6
Q. 2. Schein’s Typology presented three kinds of organizational changes.
1. Natural Evolutionary
2. Planned & Managed Change
3. Unplanned Revolutionary Change
On the basis of above mentioned information, you are required to identify the
organizational change that took place in Toyota Corporation and provide a logical
statement to support your identified organizational change. (4 Marks)
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