Recall Issue of Toyota

Question: Explain about the Toyota Motor Corporation? Answer: Recall Issue of Toyota Toyota Motor Corporation was associated to three alienated while related recalls, which initiated during late 2009 and early 2010. The company was accustomed to the recalls under the assistance of United States National Highway Traffic Safety Administration (NHTSA), which clearly filed the report that Toyota cars possess unintended acceleration facilities (Gokhale Tremblay, 2013). The first recall, which was published on 2nd November 2009, it was filed that Toyota automobiles posed an incorrect driving floor mat, which interacted with the foot pedal resulting in pedal entrapment (Gokhale Tremblay, 2013). The second recall, which was published on 21 January 2010, it was stated that some of the serious crashes of the automobiles were not due to defective floor mat incursion (Wu Dai 2012). The RD department stated that it was due to the mechanical sticking of the accelerator pedal, which caused unintentional acceleration (the incident is known as Sticking Accelerator Pedal Case of Toyota). The third recall was published on 8 February 2011 by the NHTSA associated to NASA. The report was filed against Toyota, clearly stating the fact that the issue of Toyota were completely mechanical and not electrical. As per the report of Toyota Drive-by-Wire System and Electronic Throttle Control System (ETCS) driven by Michael Barr, it was inferred that Toyota did not follow the best practices for the real life critical software, and the flip resulting due to the cosmic ways caused the unintended acceleration (Fan et al., 2013). 1. Recommendations for Toyota Recall Issues Effective monetarization of the vehicles would be the primary recommendation for Toyota. The company should target in changing the floor mats along with the sticky accelerator pedals in the vehicles. The CEO should undergo for settlement with the Justice Department along with the National Highway Traffic Safety Administration regarding the issues, in order to promote public safety concern. Apart from the renovation of floor mats and pedals, the organisation should also seek for developing the engine software glitches. This would help in rectifying the uncontrollable acceleration issue from the vehicles. The management head of Toyota should target in consolidating the wings of the organisation under one roof. This would include the marketing, sales, engineering and manufacturing unit of Toyota. The consolidation of these departments under a single unit would definitely promote interdepartmental communication. It can be assumed that promoting interdepartmental communication based on Enterprise Resource Management Protocol would definitely target in executing better quality products for an organisation. Hence, the crisis of Toyota would be retarded to a significant level if this were followed efficiently. 2. Assumptions with Toyota Recall Issues From this entire scenario, it can be assumed that Toyota learnt numerous lessons in order to rectify the system accordingly. As per the report filed by Automotive News, it was stated that the CEO (North America) Jim Lentz targeted in developing a much more transparent infrastructure of the company. Both the internal and external infrastructure would be completely transparent to one another in order to promote systemic functioning of the entire Toyota system (Tennert, 2014). Jim Lentz opined, You have to be able to listen to your customers, not just hear them, but listen to what they're telling youand be quick about it. In our case, it is all about transparency and speed and listening. The CEO assumed the fact that most of the products of their organisation were defective and thereby promoted for a recall plan in both US and global market. It was observed that nearly 13.8 million vehicles in the United States of America and 15.8 million vehicles from worldwide were scrutinized by the organisation (Tsang, 2013). Toyota was subjected to a total recall of 16 million vehicles from all across the world, which posed various issues, most commonly the unintended acceleration issue. 3. Limitations of Toyota Recall Issues One of the biggest limitation for the recall issue was the budget. Scrutinizing millions of vehicles and thereby processing them is a matter of huge investment for the organisation. Secondly, there were many parameters upraised for Toyota, which developed constraint for the steady growth of the organisation (Choi Chung 2012). The primary system constraint restricted the growth of the company to a significant level. The limitation of theHuman Resource department was always a serious issue for Toyota, which systematically eroded the continuous improvement capabilities of the company. Moreover, it affected the quality and reliability factor of the products to a significant level. Among the limitations of the recall issues of Toyota, the major issues that are involved in the mainly related with ethics, leadership and the organizational culture of Toyota. The issues are discussed in the following. Several employees often divert the employees from the objectives and the ethics of the company. It is the challenge for the company to maintain the employees in order to bind them to stick them to stay loyal and bound to the company ethics. The next issue that the company faces is that of leadership. The problem that crops up is that many employees in the Toyota Company often performs dome act that cannot be directly attributable to leadership. Hence, it can be said that the Company must indulge to employ employees that can serve as leaders to guide the employees in the right path The next issue that is involved in the Toyota Company is the organizational culture. There happen many cases where the cultures of employees are at stake. It means many other employees make the fun of the culture of any other employee, who is of any minority culture. Hence, there lies the challenge for the Toyota Company to protect the culture of every employee. Conclusion Thus, it can be concluded that Toyota need to pay effective attention on these parameters in order to avoid any possibility of relapses. The company should be subjected to systemic administration and monetarization by the management in order to deliver quality products in the market. Moreover, the company need to focus on the HRM department, especially on the employees in order to promote sales revenue and profitability for the organisation in a systematic and logical manner. References Choi, J., Chung, W. (2012). Analysis of the Interactive Relationship Between Apology and Product Involvement in Crisis Communication: Study on the Toyota Recall Crisis.Journal of Business and Technical Communication, 1050651912458923. Fan, D., Geddes, D., Flory, F. (2013). The Toyota recall crisis: Media impact on Toyota's corporate brand reputation.Corporate Reputation Review,16(2), 99-117. Gokhale, J., Tremblay, V. J. (2013). Toyotas accelerator pedal recall and stockholder wealth.Department of Economics, Oregon State University. Tennert, F. (2014). An attributional analysis of corporate reporting in crisis situations: The 2010 Toyota recall.Journal of Communication Management,18(4), 422-435. Tsang, E. W. (2013). Case study methodology: causal explanation, contextualization, and theorizing.Journal of international management,19(2), 195-202. Wu, J. L., Dai, Q. (2012, May). The Impact of Product-Harm Crisis on Purchase Intention: Moderating Effects of Consumer Ethnocentrism-An Example of Toyota Recall. InProceedings of the 2012 3rd International Conference on E-Business and E-Government-Volume 03(pp. 1053-1056). IEEE Computer Society.