Issues are incidents that are beyond the organization's control. It may have some effect on the organization, and the company must manage the concerns in a timely manner. The organization's challenges will naturally have an impact on its vision, mission, and values, as well as its clients and shareholders. It also impacts the organization's management, finances, and organizational structure.
Issue management is a crucial responsibility for every firm. It is the most important component of the strategic management objectives. An organization's issue management covers three key functions. The issue managers must first gather and monitor all relevant information, analyze and classify the issues involved, and then take the necessary steps to prevent the issue from recurring. The outcomes must be examined at a later time. (Hogan & Rettie, 2002).
The issue management approach will aid the company in appropriately identifying and documenting issues. The detected issues are adequately documented, and the consequences of each issue are established individually. The concerns are then prioritized and their respective statuses are reported. All issues are being reviewed, solutions are being identified, and the next steps are being taken swiftly. Using the issue management method, actions can be allocated to staff members so that the detected issues can be resolved in a timely manner by performing the necessary steps.
The most prevalent examples of issue management involve a lack of cash, strict deadlines, and inadequate resources. Regardless of the conditions, the issue management method assists management in obtaining consent and taking prompt action to resolve the problem. (Issue management process, 2003).
Following the identification of an issue, it is classified and ranked. The problems could be external or internal to the organization. These isses are recognized by the issue management personnel and reported to management in a timely manner in order to mitigate their impact. The organization's issue management team collects and evaluates new information and ensures that all relevant data is accessible for formulating solutions and taking remedial action.
The issue manager oversees the issue management and serves as a liaison between the lower level and higher level workers. Principal responsibilities of the issue manager include gathering information from outside the organization and providing a summary to management. Additionally, it collects information from the organization's employees and shareholders. The issue manager advises the employees on how to capture the conveyance of vital information and collaborates with the staff to process the data before forwarding it to the management team.
In addition, it provides a monthly problem assessment to the management committee and analyzes the issue logs and reports. It also collaborates with the employees of information technology to manage and distribute information in a timely manner. There are various phases within the issue development procedure. If the public is dissatisfied with the organization's performance, the problem will occur when the public's expectations differ from the organization's actual performance. This consists of the new concerns.
Toyota Motor Corporation is the fourth largest vehicle manufacturer in the world and the largest in Japan. It was a late entrant into the automobile manufacturing industry. Prior to its entry into the market, General Motors and Ford were both well-established manufacturers in the automobile industry. Sakichi Toyoda founded the Toyoto Corporation, and his son Kiichiro managed the company in subsequent years.
The first item produced by the father was an automatic loom, which his son copyrighted in England while studying automobiles there. In 1933, the Toyoda Automatic Loom Works, Ltd., which was then known as the Toyoda Automatic Loom Works, added an automobile division. The company's iconic emblem was designed in 1936, and Toyota Motor Co Ltd was founded in 1937. In 1938, the corporation introduced the globally renowned and widely imitated just in time system.
Toyota began operations in the United States in 1956 and has never retreated from any of its markets since then. In 1982, Toyota Motor Co. Ltd. and Toyota Motor Sales Co. In 2002, the business also participated in Formula 1 (F1) racing. (2008). History of Toyota.
In its early beginnings as well as during its growth, it encountered a number of challenges relating to finances, human resources, and intense competition from rivals. It had a negative influence on the organization's sales and profitability. Due to regulatory concerns, severe rivalry, a change in the value of the Japanese yen and other currencies with which Tokyo did business, and a rise in research and development costs, Toyota's earnings decreased. During its establishment phase, the corporation made substantial investments in technology and manpower.
It has taken several steps to enhance its manufacturing, production, and people resources. This has caused an initial stage of crisis. Due to globalization, it faced intense competition from Ford and General Motors, among others. The company's efforts to enhance its production were hampered by the globalization-induced shortage of manpower. In the process of enhancing the product's quality, the price rose dramatically. In order to increase quality and reduce costs while simultaneously increasing the organization's efficiency, both employees and management were subjected to unprecedented levels of pressure.
All of these issues have been identified, and efforts have been made to mitigate them. In order to improve the board's decision-making process, the number of board members in the present management was lowered as a first step in this initiative. By lowering the number of board members, the interchange of ideas between board members is facilitated, resulting in better decision making. In addition, the corporation created a new position for a managing officer to manage the middle-level and lower-level managers and assist them in managing the day-to-day operations, thereby relieving the excess burden on them.
The management also selects locals to serve as senior executives so that they are familiar with the pulse of the area and the tastes and preferences of the locals. This helps the firm expand its business in each sector and achieve more profits. Additionally, they encourage foreign employers to manage. The Japanese behemoth must face internal hurdles in 2004 (Mighty Toyota's Growing Pains)
It has implemented new rules and procedures in manufacturing, product development, human resource management, and other areas. In order to resolve the crisis scenario caused by the intense competition on the market, Toyota's management decided to build automobiles based on local tastes, and the business began manufacturing vehicles based on the desires of consumers in certain regions. This has brought them immense success. Toyota was successful in achieving the top spot in the vehicle business. In comparison to its competitors, Toyota's technology was more advanced, and it received high awards for customer service.
Product development is an extremely capital-intensive undertaking for Toyota Manufacturing. However, Toyota endeavored to introduce new automobile models in a timely manner, taking into account regional preferences and requirements. Their products were standardized under their brand name. It is the Toyota brand name that has brought them enormous commerce. It has devised a Lean product development strategy to combat the astronomical expenses associated with product manufacture. In addition, a product planning division employing a matrix structure and multiple functional specialists was established.
Toyota's Matrix structure combines the characteristics of divisional and functional organizations. This contributed to the success of the Toyoto's production strategy. They were also faced with regional hazards as a result of changes in laws and regulations and other government initiatives. This also harmed the Toyoto's operations' profitability. In turn, these restrictions regarding car safety, fuel economy, and emissions have affected the price of vehicles. Toyota has implemented an environmental risk management method as part of its environmental management system. Toyoto developed such a management system in order to address difficulties relating to negative environmental repercussions. Additionally, a system for incident management was designed to reduce risks and other events.
Due of variations in foreign exchange rates and local interest rates, Toyoto encountered numerous financial difficulties. To manage the financial challenges caused by the fluctuation of interest rates, the Toyota manufacturing corporation began issuing derivative products. (Enterprise risk management at Toyota, 2008).
References
Enterprise risk management at Toyota (2008). Web site of the ICMR Center for Management Research
Toyota's rich past (2008). The Toyota Motor Company. Web.
Hogan, Mike., & Rettie, Claire (2002). Issue management. Web.
Issue management process. (2003). (2003). Method123: Facilitating the Success of Managers. Web.
Growing troubles for Toyota: The Japanese behemoth must tackle internal obstacles. (2004). Web Executive Officer.
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