Volvo hr practices
-
Upload
himanshi-sahlot -
Category
Documents
-
view
3.013 -
download
18
description
Transcript of Volvo hr practices
Focus On Job Enrichment
VOLVO’S HR PRACTICES
Presented by
E-18 Sneha Thanneru E-08 Arzoo Bista E-48
Himanshi Sahlot
E-58 Purnima Vidyarthi E-28 Parag Saxena E-38
Meenesh Pachauri
Introduction to VOLVO
Origin of VOLVO group 1927
Headquarter : Gothenburg, Sweden
Industry: Commercial Vehicles
Product: Heavy Equipments (trucks, buses, construction equipments)
The Beginning 1924 : Founded by Gaustaf
Larson and Assar Gabrielsson
1927: 1st car- OU4 & in 1929:1st profits
1934 : 1st bus- B1 & in 1946 1st diesel bus- B-56
1948: Major tractor manufacturer Separate division created in
1968
Global Entry 1939-1945 : Supply to the military 1955 : Exports to the USA New production facilities:
1963 : Canada 1965 : Belgium 1973 : USA 1980 : Bus and truck assembly
plant in Brazil 1981 : Acquisition of White Motor
corporation 1986 : Volvo GM Heavy Truck
corporation 1989 :Christer Zatteberg- new MD and
CEO 1st loss since 1929
New Era 1992 :Soren Gyll took over
“Volvo 95”programme “Volvo Strategic Development”
(1993)
1994 : JV in China to manufacture buses
1999 : Volvo Car Cooperation (VCC) sold to Ford Motor Company ($ 6.45 billion)
2001 : Acquisition of Renault trucks 2003 : Net sales- SEK 174.768 billion
: Operating income: SEK 2.837 billion
The HR problem In 1973 employees were
41,000 in company owned plants
10,000 through dealer network
15,000 through VOLVO’s sub contractors
Major labor unrest(strikes & other disputes) across Sweden in early 1970s Absenteeism and employee
turnover, VOLVO had to maintain 14%
of work force as reserve causing increased HR costs
The HR problem
Education
• Sweden’s per capita expenditure on education made its citizen more educated so accident prone factory environment was no longer an attractive proposition
Challenges
• Attracting and retaining talented workforce
• Immigrant labors Increased diversity at workplace affected work culture leading to disrupted communication system
HR solutions
Job enrichment programmes were initiated to train leaders and employees to improve working conditions
New recruits had 130 hours induction programme for familiarizing them with working conditions
Leadership training for group leaders were organized to focus on communication skills & worker welfare
Cont..
VOLVO Changed its organization structure in 1972
Head quarters staff employees were reduced from 1800 to 100
More responsibilities to staff & operations were decentralized
Each key product line(cars, buses etc.) was made an independent
division & geographical markets were made profit centers having
operational autonomy
Job Enrichment Experiments
JOB ROTATION
MANAGEMENT-EMPLOYEE COUNCILS
SMALL WORK GROUPS
CHANGE IMPLEMENTATION
EMPLOYEE ORIENTED FACILITIES
Job Rotation
Involved shifting of employees from one
job to another
Workers were made
to go for jobs
completely different from the previous jobs
Made workers
well versed
with other jobs in the organizatio
n
Small Work Groups
• Teams of three to nine people were created who divided the work among them
• Group members took turns to become team spokesperson
• Promote sense of belongingness among workers
Management Employee Council
Enhance employee participation
Enabled local work councils to handle issues
Enabled workers in developing plans for welfare of employees
Change Implementation
Involved two work areas- work design and work environment
Work design – the way they worked at the shop floor was taken into consideration and
improvised
Work environment- the manufacturing equipments were
always kept clean
End of Social-Technical Approach?Lack of demand in the 1990’s forced the company to stop the progress of its job enrichment initiatives.
Operations at the Kalmar and Uddevalla plants were suspended which ,however, reopened in 1993.
Volvo’s productivity was far behind Japanese and US plants.
Experts felt that there was a mismatch between the amount of money spent on training and the results.
End of Social-Technical Approach?
After a decade, with severe global recession in the automobile industry, Volvo
realized it had to change with time.
Volvo’s car unit sold to Ford in 1999.
The company had to revert to the assembly line production system.
New HR initiatives
The match projec
tFull rulle
Dialog
The Match Project
Introduced in 1983
Training extensively
Discipline
Clarity in communication
Employee participation
Full Rulle
Stress on delegation of work
Grooming new team
leaders
Importance of
contribution
Common leadershi
p philosoph
y
Dialog Programme
Interaction between
work groups & managers
Easy problem
resolution
Better communicat
ion
Thank You