As a result, public perception of the company is that it is irresponsible and unprepared.
In late January, Toyota recalled over five million cars due to issues with the floor mat and the gas pedal. People have been seriously injured in accidents involving the faulty vehicle parts, but Toyota’s crisis communication has been ineffective and inefficient. As a result, public perception of the company is that it is irresponsible and unprepared.
The National Highway Traffic Safety Association (NHTSA) is the government agency responsible for regulating crash tests, safety research and public campaigns. In 2009 the NHTSA oversaw 608 recalls of faulty vehicles, but the NHTSA is not equipped to address the volume of companies for whom they are responsible, so the NHTSA relies heavily on manufacturers to police themselves.
The Toyota crisis reflects poorly both on the company and on the NHTSA. The frontline managers at the agency were unable to fill positions and enforce strong regulation policies because they lacked the resources to do so. Leaders missed the opportunity to streamline operations and instead enabled one of the world’s largest car manufacturers to create millions of faulty vehicles.
Companies can better understand who has the skills and abilities to excel in a frontline management position.
Strong frontline management is essential if a company is to be effective in its operations. Unfortunately the majority of managers are promoted because of their efforts in lower positions, not because of their aptitude for management. Promoting star performers into management roles is not in the best interest of companies who want to continue to excel and produce. When companies assess potential management candidates, those companies can better understand who has the skills and abilities to excel in a frontline management position.
Had the NHTSA been fortunate enough to have an effective line of management, its lack of resources would not have impacted its ability to take control of a difficult situation. Properly placed management is necessary for optimal productivity and performance in any organization. Assessments enable companies to select and train employees that are most likely to become successful leaders and continually benefit the company.
For related content please read “Toyota: Sorry Seems to Be the Easiest Word”, “Monday Leader Tip: What Type of Leader Are You?”, “Toyota’s Digital Disaster”, and “Toyota’s Troubles Add Notch to List of Disputes.”
