Organisational Structure and Change ( MANAGEMENT Subject ) Essay

Organisational Structure and Change ( MANAGEMENT Subject ) - Essay Example It is logical to think about the relevance of the Toyota way into industries outside the manufacturing sphere as well – Services organizations like Banks and Software companies have tried and assimilated the ‘factory’ model of Toyota as well as the ‘Lean’ manufacturing principles. What follows here, is a critical analysis of the pro’s and con’s of adopting the Toyota operative model into the service industry, particularly banks. The Toyota experience spells a success story and a story of survival with sheer grit, persistence and tenacity amidst periods of fluctuating fortunes across the decades. Likewise, fabled banks have their own stories of how they have (and have not) survived to this day. If one were to explore the validity of Toyota’s fundamental principles and their applicability to the Banking industry, the following aspects seem pertinent: a) Governance and Ethics are the pillars of Toyota – needless to assert, these have been the sustainers and destroyers of Banks today, especially in the context of the economic turmoil of the past few months. Banks that were seemingly invincible just a year ago have bitten the dust and sunk without a trace. Hence, Toyota, in stark contrast, demonstrates what strong governance and ethics can do for a company’s survival. b) Back from the brink and flourishing thereafter – Toyota almost collapsed during the Korean War and was saved only because of an order of trucks that came from the US army in 1950 – Toyota has ‘never’ forgotten this bitter lesson and the company thrives to this day on what it proudly calls the value system of ‘presumptions of imperfection’ – others would term it as healthy paranoia.. In direct contrast, Banks have in recent times turned adventurous, invested recklessly, served bad credits, and quite simply, collapsed – Bringing in