c planning, production / manufacturing, and Sales are the major units that provide support to Toyota’s headquarters and therefore are considered critical to TMC’s Operations:
Hien defines: A multidivisional structure is appropriate if products are different and are sold in many markets. Division are self-contained, each with their own support functions and control. Because products differ, centralized support functions at the top is not feasible. The multidivisional structure has or corporate headquarters, organized functionally and responsible for overseeing division managers. Staff members facilitate integration to share information quickly among divisions. (Hien, 2010)
Definitely, Toyota is experiencing problems or organizational dysfunctions in certain levels of coordination and communication in the corporate particularly when there is confusion in authority whether to centralize and decentralize from corporate to the divisional level. A clear manifestation on this is the undetected defect in the design of accelerator pedals, among others, which brought about the worldwide Recall Campaign.
Another is TMC’s too much formalities and rigidness or strictness in the corporate norms, rules and policies of the company which is pointed by some to become a probable cause for generating organizational dysfunctions.
“So, a degree of "toughness" may be called for at times, especially in the dirty business of manufacturing something like a car. The process of several thousand people working together to assemble tens of thousands of parts that converge once per minute to comprise an automobile is tough work, demanding legitimate discipline. Still, there were instances at the old Toyota when many observers would understandably cry foul. And I imagine vestiges of that Toyota can still be found lurking around, especially at the end of a bad day. But these are also dimensions of the company that decades ago some leaders recognized as needing change ” (Shook,