Essay on Toyota Motor Sales
1. Evaluate TMS’s system of measuring, evaluating, and rewarding the performances of the regional general managers. Be sure to identify the key issues related to managerial authority and financial responsibility.
TMS’s system of measuring, evaluating, and rewarding the performances of the regional general managers was, as they called it, “tiered”. They started the rewards at the top, the general managers, and allowed them to allocate the rewards throughout their salesmen based on sales, and when the sales occurred. With TMS being the largest seller of import cars and trucks in the United States (with sales over one million), they were evaluated based on the number of promotional vehicles they could sell in …show more content…
Suggested solutions for the required change to occur would be for TMC to allow the GM’s more autonomy. This would allow them to embrace their successes with their failures. It would teach them to run their companies in a profitable manner and manage all the different departments. TMC also needs to remove the life-time guarantee employment for their workers. During economic downturns this would cut into their profits. An employee should be accountable for their actions; if they aren’t producing at the same level as everyone else they should either retrain them or fire them. Finally, TMC has to allow the GM’s to make their own decisions without interfering, unless it will cost them a great amount of money.
Key Components of an Implementation Plan
The key component for the implementation of the company being able to change and become more decentralized is by TMC giving the GM’s more discretion and independence in running their divisions. This will allow them to get a better handle on running all their departments (human resources, marketing, finance, port-of-entry operations).
The main implementation problems that could occur is the resistance to change from the GM’s. No one likes sudden change and the GM’s