When carrying out strategy review of organization behavior and strategic performance, there are many things that one is to put into perspective. Simons (2010) suggests that among others, there is need to examine core values and determine whether an organization puts shareholders, employees or customers first. This paper answers this question in the case of Toyota, the global automotive manufacturing company. The precipitate organizational behavior following the choice and its effect on strategic performance and employee retention is also discussed.
It is evident that Toyota puts customers first. They state expressly in their core values that customers are their number one priority and as such they are always finding ways of serving them better (Jeffrey & David, 2016). They have set up global contact offices and distribution centers to ensure that they remain in close proximity to their customers. They also value their employees and insist on “respecting people” but there is no contest on customers as the first priority.
There are several behaviors that have emerged from putting customers first. In their own statement, Toyota presents the Toyota Production System (TPS) and the Toyota Service Concept (TSC) (Jeffrey & David, 2016). TPS ensures that customers receive quality products while TSC ensures customer satisfaction in a structured way underwritten in 12 core values. These include among others standardization, accreditation, eliminating waste and responsiveness.
The above choice has had positive effects on strategic performance and employee retention. TPS ensures that the company releases competitive, high quality products for their customers while making work easier for employees. Through continuous improvement, they not only maintain competitiveness in the auto manufacturing industry but also develop their employees to the extent that they achieve their professional goals and personal satisfaction. In the end, Toyota’s strategy of putting customers first addresses both sustainable strategic performance and employee retention.
Jeffrey, K. L., & David, M. (2016). Toyota Way. McGraw-Hill
Simons, R. (2010). Stress-test your strategy: The 7 questions to ask. Harvard Business Review, 88(11), 93-100.
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