“What Really Happened at Toyota?” An article appearing in MIT Sloan Management Review, one of the main purposes of risk management is to catch problems early and eliminate them before they snowball into significant issues in the way that they have at Toyota. The series of recalls that followed demonstrated that it made little sense for the corporation to believe that it could maintain quality in the competitive world of automobiles, with high executive salaries, and lucrative bonuses for keeping costs down, without a quality control department” …show more content…
That can point to the continuous recalls and manufacturing defects. The issues can be blamed on the lack of company culture. Managers, supervisors and lower level employees were complaining about the lack of lower quality parts, but because of the bad company, culture upper-level management saw no reason to take the complaints serious. The company culture can be dangerous when upper-level management doesn’t listen to lower level supervisors and employees. This says that they don’t care. As a manager how could you not take into consideration the complaints and potential issues that may arrive from management that is closer to manufacturing side of the business? With the lower level managers being concerned with quality of manufacturing and safety instead of worrying about their cost cutting and labor bonuses implies the level of care. It says a lot about the culture for the Upper-level managers to not pay attention and take