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A CASE STUDY PRESENTATION

OnVolvo’s HR practice: Focus on Job Enrichment

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INTRODUCTION•Volvo was founded on July 25, 1924, Gaustaf Larson (Larson), an engineer and Assar Gabrielsson (Gabrielsson), an economist, met over a meal and agreed to build a car suited for Sweden's roads and climatic conditions. •By the time World War II broke out in 1939, Volvo had established itself as a profitable automobile manufacturer with a broad product range.•Volvo provides transportation related products and services with focus on quality, safety and environmental care. Founded more than 80 years ago, a solid position and reputation worldwide has been built up over the decades. The brand is shared between Volvo Group and Volvo Cars “we welcome you to explore our worlds!” 

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Cont.• Volvo has approx.72,000 employees,production in 25 countries &

operates on more than 185 markets.

• In 1946, Volvo introduced its first diesel bus, the B-56, which became immensely popular as a city bus as well as a tourist coach. By 1948, Volvo emerged as a major tractor manufacturer.

• In 1949, Volvo rolled out its 100,000th vehicle from its assembly lines. In 1955, the company began exporting to the US.

• In 1963, Volvo commenced car production in Canada, becoming the first European automobile manufacturer to set up such facilities in North America. Its manufacturing facility in Belgium became operational in 1965. Volvo created a separate truck division in 1968.

• The 1970s witnessed a significant change in Volvo's operations, under the leadership of Gyllenhammar. In 1972, the Volvo Technical Centre (VTC) was established, which had R&D facilities, including a safety centre and an Emission Laboratory...

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VISION

"To create an environment that will give satisfaction to the employees in their daily tasks is a matter for society as a whole. Due to the advanced economic and social structure of Swedish society, we have encountered earlier than more countries new problems in the organization of jobs and the working environment. We do not look upon these problems as a threat. Our familiarity with this type of question could well lead to an improvement in competitive ability.

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MISSION

“ By creating value for our customers, we create value for our shareholders. We use our expertise to create transport-related products and services of superior quality, safety and environmental care for demanding customers in selected segments. We work with energy, passion and respect for the individual."

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PAST ISSUES FACED BY THE COMPANY

• Increased employee turn over & absenteeism

• Industrial adaptability to people’s requirements was challenging

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KEY SOLUTIONS

• Implementation of job enrichment concepts such as job rotation, job enlargement.

• Similar practices were established in 1980’s in new plants

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KEY RESULTS

• Positive results were obtained following introduction & implementation of new concepts

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PRESENT ISSUES•Lack of human centric approach

•Production efficiency was affected

•Large investments in development of new plants involved risks

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CHALLENGES FACED

•Closing of manufacturing facility at Uddwalla, Sweden within five years of its launch

•Shutdown of car assembly plant at Kalmar

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KEY SOLUTIONS•Changes in organization structure facilitated implementation of job enrichment

•Mangement decisions were taken at manufacturing units .These included following:1.Job rotation2.Employee work groups3.Job enlargement4.Management employee councils

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ADVANTAGES PROVIDED BY THE SOLUTION

Volvo’s efforts in bringing changes in work design offered valuable lessons and contributed significantly to development of human centric production systems.