Toyota Motor Corporation Knowledge Management Plan Management Essay

In present, most of the direction professionals and faculty members have distinguished cognition as a important beginning of competitory advantage. Potentially, it is a significant resource to a house as it includes cherished, unusual, alone and non-commutable characteristics and an inexplicit facet. Importance of cognition is increasing twenty-four hours by twenty-four hours in the society and due to this a displacement is happening in persons believing sing concern inventions. These inventions can be proficient, procedure or merchandise invention and strategic or operational.

Inventions due to knowledge-based organisations are happening all over the universe and similar is the state of affairs with Toyota Motor Corporation that is discussed in this study. In this study, bing cognition direction patterns of Toyota Motor Corporation is discussed along with the intercessions that it can utilize to better its present KM patterns and schemes. In this study, intercession proposed for Toyota is the usage of KM as a direction tool.

As good, here, elements that are indispensable for effectual KM scheme are besides given so that the company can develop a new and much more effectual KM scheme to cover with its bing KM defects. The study provides wholly inclusive information about Toyota ‘s yesteryear cognition direction schemes and some new effectual schemes that it can used to do effectual usage of cognition and its related facets.



The field of cognition direction has developed in concern to the direction of the informations, information and cognition within an organisation and every bit good as using it to derive competitory advantage ( Armistead 1999, p. 143 ) . Knowledge direction fundamentally comprises of processs and tools to expeditiously capture and portion informations. As good, it is besides related to the possible usage of cognition of persons within a house. From last several old ages at that place have been serious treatments on the significance of cognition direction ( KM ) in our society ( Hicks, Dattero & A ; Galup 2006, p. 19 ) .

About all research workers, bookmans and direction scientific discipline professionals agree that significant transmutation had occurred and direction of cognition had become important. The inordinate concern operations failures, due to the traditional manners of operations have intensified the significance of cognition and its direction ( MaErtensson 2000, p. 204 ) . In the increasing competitory state of affairs, KM and associated scheme constructs had become indispensable and important constituents for present organisations to last and keep their place in the long tally ( Armistead 1999, p. 143 ) .

Due to the significance and advantages of KM, it has become critical for executives and directors to cover with KM and related schemes. Nowadays, it is considered as a stipulation for achieving higher productiveness and flexibleness in both the private and the public sector houses due to its important advantages ( MaErtensson 2000, p. 204 ) . Toyota Motor Corporation besides makes usage of cognition direction for pull offing its different concern operations and procedures. With this the company has become able in assemblage, forming, sharing and analysing its cognition in respect to resources, paperss, and people accomplishments.

Here, in this paper the current function of KM in Toyota will be analyzed along with the specific recommendations in the signifier of new intercessions will be presented to the company. This will heighten company ‘s ability to pull off all its resources in a manner through which, it can heighten its cognition organisation and sharing ( Wiig1997, p. 7 ) .

Existing Knowledge Management Plan of Toyota Motor Corporation

Toyota Motor Corporation has attained huge growing from the clip of its induction and with this the company have besides confronted several problems related to enlargement and its direction. In get downing the company usage to develop and bring forth autos merely in Japan and export in some abroad states but with increasing demand and globalisation it started runing in several different foreign markets. With this addition in its operations base, the company confronted problems related to direction of its resources. For deciding this problem the company made usage of cognition direction as it become cognizant with its significance and demand ( Ichijo & A ; Kohlbacher 2006 ) .

The company operations started turning significantly and in this concern it besides made usage of several advanced attacks like thin production, entire quality direction etc. All these attacks assisted the company in achieving a important topographic point in emerging markets. In add-on to these attacks, the company besides understood the significance of cognition and its usage for company and its employee ‘s direction ( Armistead 1999, p. 143 ) . The company understood that pull offing cognition among its organisation is indispensable and for this it adopted several knowledge direction attacks like development of cognition sharing webs and usage of tactic cognition ( Pena 2002, P. 470 ) .

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Knowledge Management

The company direction is cognizant with the fact that the creative activity of cognition is non merely an collection of information but it is a typical human procedure that can non be decreased or replicated easy. The company direction attempts to change informations into information that can be used a cognition for all by aggregation, forming, sum uping, analysing, synthesising and doing concluding determination ( Alwis & A ; Hartmann 2008, p. 134 ) . Management of Toyota is besides cognizant that effectual direction of cognition is indispensable that includes cognition creative activity, sharing, security, and forsaking ( Wang & A ; Ahmed 2005, p. 327 ) . All this relies on enabling context that can be developed with the aid of important cognition enablers that are as follows:

Introducing a cognition vision

Managing conversations

Displacing cognition reformists

Establishing appropriate context

Globalizing local cognition ( Ichijo & A ; Kohlbacher 2006 ) .

All these cognition enablers are introduced by Toyota that evidences its cognition direction patterns. Although Toyota Motor Corporation has adopted a important attack towards knowledge direction and cognition sharing but still it is non able to efficaciously pull off cognition among all its resources ( Towill 2010, p. 335 ) . Nowadays, the company is runing in different foreign markets but still it is non able to better its production efficiency and quality and it is all because of deficiency of cognition direction and cognition sharing ( Bailey & A ; Clarke 2000, p. 236 ) .

The company direction has still non gone through the cardinal issues of cognition sharing or organisational acquisition that are cardinal drivers behind a house ‘s important attainments. For achieving assured success in twenty-first century it is indispensable that its leaders develop rational capital with the aid of cognition creative activity and sharing on an international footing. The company had to work hard in the way of cognition sharing as its chief issues are related to knowledge sharing. If company adopts effectual attacks and webs it can easy decide its issues related to knowledge sharing that in bend will render it with competitory advantage ( Pena 2002, P. 470 ) .

For successful executing and operations, it is indispensable that the Toyota Motor Corporation significantly improves its cognition direction issues. Without this, it would non be possible for the company to pull off its prima place in the long tally every bit now knowledge has become important for running a concern successfully ( Randeree 2006, p. 145 ) . The company had effectual cognition direction program but it is missing at some facets that if improved can present it with significant advantages of cognition direction and concern operations direction ( Jost 2010 ) .

Knowledge Management Interventions for Toyota Motor Corporation

Toyota Motor Corporation that is the Japan ‘s largest company and the universe ‘s 2nd taking car company is known as the universe ‘s paramount cognition company ( Jost 2010 ) . Till now, the company has three times, won the Global Most Admired Knowledge Enterprises ( MAKE ) Survey 4. Equally good as, it is besides a five-time victor of the MAKE Japan Survey. This award is given for the alone patterns in the field of Knowledge Management. These awards were given on the footing of steps like knowledge-based civilization and merchandises, cognition sharing and cooperation and organisational acquisition ( Bateman n.d. ) .

All these facets were managed efficaciously but still the company demand to take excess attempts as it is missing in some facets of cognition direction. The most significant facet that needs to be improved is sharing cognition and it can be done merely if knowledge direction is used as a direction tool. The most significant KM intercession that can be used by Toyota Motor Corporation is the usage of KM as a direction tool ( Jost 2010 ) . By doing usage of cognition direction as a direction tool, the company can efficaciously better all its bing defects of KM in respect to its concern operations.

In add-on to this by understanding the construct of rational capital besides the company can better its KM patterns. The company direction needs to understand that KM is a critical portion of the broad construct rational capital because KM itself is about the direction of the rational capital. Intellectual capital can be understood with the aid of two footings scheme and measuring ( MaErtensson 2000, p. 205 ) . Scheme pertains to the formation and use of cognition and every bit good on the association between cognition and value creative activity ( Rao 2005 ) .

Other facets of rational capital that is measurement dressed ores on the development of new information systems that are adept to mensurate non-financial informations along with traditional fiscal informations ( MaErtensson 2000, p. 206 ) . The abstract bases of rational capital that can be used by Toyota can be understood in this figure.

The company direction should seek to do efforts for researching the creative activity and usage of cognition in a manner through which it can be leveraged into value as given in the figure. By pull offing rational capital the company can significantly heighten its bing cognition direction patterns and better the defects in KM. This will besides help the company in doing usage of KM as a direction tool that is indispensable for doing it effectual in all facets of a concern ( MaErtensson 2000, p. 206 ) .

Knowledge Management as a Management Tool:

Normally, KM is depicted as a direction tool but it is made up of two facets in which first is KM as an informational handling tool or operational tool and 2nd is as a strategically focussed direction tool. By pull offing KM as operational and strategically focused direction tool, Toyota can easy increase cognition sharing and organisational acquisition among its concern procedures ( MaErtensson 2000, p. 209 ) . If company and its direction manage both the facets of KM, it can significantly achieve all indispensable benefits of KM for its concern and its assured growing.

Knowledge Management as an Information Handling Tool

In the field of cognition direction, cognition is normally considered as an information managing problem. It fundamentally includes the formation, organisation and use of cognition ( Morey, Maybury & A ; Thuraisingham 2002 ) . Toyota Motor Corporation besides need to utilize KM as an information managing tool that can be done by pull offing different but associated phases. In the first phase, the company should get information and in the 2nd phase the gathered information should be entered into storage system and so necessitate to be structured rationally ( MaErtensson 2000, p. 209 ) .

KM is all about the attainment and repositing of employees ‘ cognition and doing this information available to others so that they can besides utilize it. This can be done by doing usage of several advanced engineerings like Internet and databases. In this manner, the company can transform tactic cognition to explicit cognition that can be used by everyone for increasing their efficiency and productiveness ( Rao 2005 ) . By hive awaying information in several company databases the company demand to originate 3rd phase that is related to do stored information accessible to maximum employees of the house ( MaErtensson 2000, p. 209 ) .

Knowledge Management Stages

This 3rd phase is related to the maximal bringing and usage of information. In the last phase, the company direction can significantly use information. This procedure of information use can be commenced by employees sharing cognition and socializing with each other. Equally good as information can besides be utilised or shared through digital and in linear form.

Knowledge Management as a Strategic Management Tool:

The following significant facet of KM that needs to be managed by Toyota is KM as a strategic direction tool. It is said by direction professionals that effectual cognition direction begins with a scheme. In concern to a KM scheme, cognition is distinguished as a most valuable and less used resource ( MaErtensson 2000, p. 210 ) . For bettering cognition sharing and bing cognition direction patterns, it is indispensable that the company better its bing KM scheme as it plays a significant function in successful cognition direction.

For making an effectual KM scheme, the company demand to develop systems that significantly capture and reassign internal cognition into alone patterns. The company direction demand to see all of its purposes, aims and awaited consequences in respect to KM as it varies for organisation ( Rao 2005 ) . Sometime, KM can be worked out as a manner to heighten public presentation, productiveness, coaction and fight and sometimes it may be used for bettering effectual attainment, sharing and use of information within the company ( MaErtensson 2000, p. 210 ) .

In add-on to this it can besides be used as a technique for enhanced determination devising, a tool to capture alone patterns, a manner to go an advanced house etc. The intent of using and utilizing KM should be clear as in this manner merely the company can efficaciously pull off its KM patterns and scheme. By working on all these things, the company can develop an effectual KM scheme ( Reimer & A ; Karagiannis 2006 ) .

Recommended Schemes for Implementing Proposed Interventions

For implementing proposed intercessions, the Toyota Motor Corporation needs to see following elements and schemes:

Interrogative Questions and Appraisals:

First significant component that should be included by Toyota at the clip of making and implementing its KM scheme is interrogative inquiries and appraisals. The company direction should tie in its KM scheme with what it wants to achieve every bit good as with it purpose and aims. This can be done with the aid of question and appraisals of different facets like what company want to achieve and in which aspect it wants betterment ( MaErtensson 2000, p. 211 ) . How its KM scheme will render it towards benefits and increase in employees ‘ public presentation etc. By placing the replies of all these inquiries, the company can develop an effectual KM scheme.

Effective Communication:

In most of the companies ‘ attempt to implement KM scheme, a important job that has occurred is about uneffective communicating. For successful execution, effectual communicating is indispensable and similar is the instance with Toyota ( Hlupic 2003 ) . For its successful KM scheme execution, the company should develop an effectual communicating program that should be flexible adequate to follow alterations in communicating form at the clip of critical concern determinations. Well developed communicating program will besides assist the company in increasing its cognition sharing and going a learning organisation ( Morey, Maybury & A ; Thuraisingham 2002 ) .

Top Management Support:

For successful execution of KM scheme, it is indispensable that the company direction have important support from its top direction. The company direction should seek to convert top direction for advancing processs that will shore up up larning and sharing. Top direction should be convinced in a manner that it helps in setting-up fund cognition webs and promotes farther betterments ( Reimer & A ; Karagiannis 2006 ) . If, Toyota become able to have full support from its top direction it will well go able in developing and implementing a successful KM scheme ( MaErtensson 2000, p. 211 ) .

Significance of Peoples and Culture:

The following significant component in concern to the development and execution of an effectual KM scheme is people and civilization. Successful executing of KM is significantly associated with a house ‘s people and civilization. The direction of Toyota besides needs to develop an effectual association between its KM scheme execution & A ; its people and civilization. By concentrating on its employees and their important function, the company can hold a typical KM scheme execution ( MaErtensson 2000, p. 211 ) .

The company that concentrates on its people and civilization are much more able to achieve its ends in comparing to the house that concentrates more on engineering. This should besides be understood by Toyota and so merely it will go proficient in the booming execution of its KM scheme ( Jasimuddin 2008, p. 59 ) . By understanding that the people and civilization plays a cardinal function in the creative activity of booming cognition based house the company direction can easy decide all its people and cultural related issues. These issues are critical to be handled in a timely mode as otherwise it may direct company towards several disadvantages ( Morey, Maybury & A ; Thuraisingham 2002 ) .

Adoption of Creativity:

The following significant component that should be considered by Toyota for bettering its bing KM patterns is the inclusion of creativeness as it is vitally linked with scheme. By set uping a nexus between scheme and creativeness, the company will go able in keeping its place in the long tally ( Hlupic 2003 ) . By tie ining KM and creativeness, the company direction can achieve concern creativeness so it is indispensable to see creativeness at the clip of developing a KM scheme.

Creation of Learning Networks:

One more critical component of KM is the creative activity of larning webs so that employees can larn from each other and maximise their cognition. By making larning webs, Toyota can besides decide its bing problems of cognition sharing and going a learning organisation ( MaErtensson 2000, p. 212 ) . In present employees of the company are non so focused but by attesting them KM benefits, they can be encouraged for the development of larning webs.

Significance of Sharing Knowledge:

Another of import component that needs to be included by Toyota at the clip of developing and implementing its KM scheme is sharing cognition. The company scheme is missing in concern to this component and should work hard for bettering it and including it in its KM scheme. Nowadays, it is seen that employees does non prefer to portion their cognition with other due to increasing competition ( MaErtensson 2000, p. 211 ) . Management of the company should seek to construct a positive environment in which everyone like to portion cognition with others so that they can increase their cognition ( Liebowitz 1999 ) .

In this concern, the company direction should seek to portion bing cognition with its new and present employees through groups ‘ treatments and regular seminars. They should seek to develop an unfastened and flexible environment in which everyone has strength to increase its bing cognition base. By following these attacks employees ‘ wont of sharing cognition can be intensified in a important manner.

Appropriate Incentives to Employees:

The following critical component in respect to KM scheme is the creative activity of appropriate inducements for employees to portion and implement cognition. In present, Toyota ‘s wages system does non back up its sharing knowledge civilization so by doing alterations in it, the company can better its problems related to sharing cognition. The company direction should seek to develop a wages system that encourages its employees to utilize their expertness and understand the importance of KM ( MaErtensson 2000, p. 212 ) . All facets related to employees and their cognition sharing should be involved in company wages system as it may come from any degree of organisational construction ( Despres & A ; Chauvel 1999, p. 112 ) .

Effective Evaluation System:

The last significant component that is critical to see is the employment of effectual rating system for measuring the attempts made in the way of doing usage of KM. The creative activity of system can run from informal to formal system. Toyota should besides develop effectual rating system so that all its cognition patterns and schemes can be evaluated in a timely mode and present effectual usage of KM ( Reimer & A ; Karagiannis 2006 ) .

By following all these elements, the company can develop an effectual KM scheme that in bend will help Toyota in sharing cognition and making a learning organisation. KM as a direction tool will direct Toyota towards the development of successful KM scheme and execution ( Liebowitz 1999 ) .


With the aid of above treatment, it becomes apparent that the Toyota Motor Corporation needs to better its bing KM patterns and schemes. For this, the company should follow suggested intercessions that are related to utilize KM as a direction tool. By doing usage of KM as a direction tool the company will go able in deciding its troubles related to operation and scheme ( Reimer & A ; Karagiannis 2006 ) . KM as a direction tool will function the company with an ability to manage its information handling issues and going strategically focussed ( Quality Counts 2008 ) .

In this manner, it can be said that Toyota should follow the above discussed intercessions and should seek to develop a new and effectual KM scheme. For the development of effectual KM scheme the company should see all the above discussed elements as it will render it with specific and typical attack to KM and its use. By following recommended schemes the company can develop a new and more effectual KM scheme that will assist it in deciding all bing KM related issues like cognition sharing and going a learning organisation ( Liebowitz 1999 ) . The proposed intercessions will direct Toyota Motor Corporation towards the development of effectual and typical KM scheme.

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