Answer to Question 1
Under the leadership of Fujio Cho and Katsuaki Watanabe, Toyota's chairman and vice chairman, respectively, Toyota began to adjust its core operating principles. The firm shifted from a focus on high-quality and lean production to technology and innovation but the leaders failed to modify the organizational culture. Toyota's leadership also allowed fundamental changes in human resource practices that may have also contributed to the problems. When the overarching goal is quality, performance is evaluated and rewards are distributed for producing high-quality products. But when growth becomes the goal, performance evaluations and rewards will also shift. So, under the previous system people were encouraged to correct quality problems. But under the new system correcting quality problems may detract from growth and hence actually (and presumably inadvertently) be discouraged.
Answer to Question 2
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