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Human Resource Management Case Study 3

Volvo implemented various job enrichment strategies like job rotation, enlargement, and employee work groups to address increasing turnover and absenteeism in the late 1960s. These strategies increased productivity, decreased turnover, and improved job satisfaction. However, Volvo struggled in the competitive 1990s auto market, closing its Uddevalla and Kalmar plants. The case study examines Volvo's job enrichment efforts and emphasizes the importance of careful planning, implementation, and aligning HR initiatives with business objectives.

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263 views3 pages

Human Resource Management Case Study 3

Volvo implemented various job enrichment strategies like job rotation, enlargement, and employee work groups to address increasing turnover and absenteeism in the late 1960s. These strategies increased productivity, decreased turnover, and improved job satisfaction. However, Volvo struggled in the competitive 1990s auto market, closing its Uddevalla and Kalmar plants. The case study examines Volvo's job enrichment efforts and emphasizes the importance of careful planning, implementation, and aligning HR initiatives with business objectives.

Uploaded by

TessieBC
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Volvo’s HR Practices – Focus on Job Enrichment

Case Study 3

Abstract
The HR practices of the Swedish automaker Volvo AB are discussed in this case study. The
case study focuses on how these practices were applied and how they affected turnover,
productivity, and employee satisfaction. The company had implemented job enrichment ideas
like job rotation, job enlargement, and employee work groups in its manufacturing facilities, all
while being guided by the "Volvo Way." The case also examines Volvo's struggles in the fiercely
competitive 1990s automotive market and the closure of its Uddevalla and Kalmar auto plants.

Introduction
This case study examines the HR procedures at Volvo AB, a significant Swedish automaker
renowned for its employee-welcoming policies. The company had purposefully implemented job
enrichment ideas like job rotation, job enlargement, and employee work groups in its
manufacturing facilities. When faced with the problem of increasing employee turnover and
absenteeism in the late 1960s and early 1970s, the company implemented these ideas and saw
success. Volvo's initiatives to alter the way that work is designed can teach the academic and
business communities a lot. The case study examines Volvo’s challenges due to the fierce
competition of the 1990s and the closing of its Uddevalla and Kalmar auto plants.

Analysis
The process of increasing an employee's level of responsibility and autonomy in their position is
known as "job enrichment," and it is heavily stressed in the case study on Volvo's HR practices.
To improve job enrichment, Volvo implemented several strategies, including job rotation, skill
variety, and participative management.
The case study focuses on several advantages of job enrichment at Volvo. These include
increased productivity, decreased turnover, and higher levels of job satisfaction and employee
motivation. The case study also emphasizes the significance of creating a culture of trust and
cooperation between management and employees to make job enrichment initiatives
successful.
However, the case study also makes clear that job enrichment is not a panacea and may not be
appropriate for all jobs or employees. To ensure the effectiveness and sustainability of job
enrichment strategies, it also emphasizes the necessity of careful planning and implementation.

Recommendation and Action Plan


Based on the case study's analysis, the following suggestions and action plans can be made:
 Review the job enrichment plan: Volvo needs to check that its plan still satisfies the
changing demands and expectations of its workforce. The company can conduct an
extensive investigation to identify the areas that need improvement in terms of job
enrichment and develop new plans to meet the needs of the staff.
 Employee engagement: Management can raise employee engagement by regularly
conducting surveys and focus groups to better understand employees' issues and
concerns. This can simplify identifying potential improvement areas and ensure that the
employees feel heard and valued.
 Performance management: The company can implement a fair and inclusive system for
gauging and rewarding employee performance. They might be inspired to work harder
and forge stronger ties with the company as a result.
 Managers can receive the skills and knowledge they need to successfully lead teams by
investing in programs that foster leadership development. As a result, employee
engagement and communication may rise along with productivity.
 Work-life balance: Volvo may think about implementing policies that help employees
balance their personal and professional lives, like flexible work schedules, remote work,
and paid time off. As a result, there may be a reduction in stress and burnout among
employees, which would be beneficial for their general well-being.
 Employee recognition: Management can promote a culture of appreciation and
recognition by putting in place an employee recognition program. This includes prizes,
bonuses, and other forms of appreciation that highlight employees' achievements and
contributions.
Action Plan:
• Carry out a thorough investigation to identify the areas in which job enrichment needs to
be improved.
• Construct novel strategies to address employee needs.
• Establish a transparent and equitable system for performance management.
• Make investments in leadership development programs to equip managers with the skills
and knowledge they require.
• Put in place measures to assist workers in juggling their personal and professional lives.
• Establish a program for employee appreciation.
By putting these suggestions into action, Volvo can enhance its HR practices and create a more
motivated, engaged, and productive workforce.

The case study's overall message emphasizes how important sound HR procedures are to
reaching organizational objectives. By implementing new HR initiatives and aligning them with
business objectives, Volvo was able to address its HR-related problems and create a more
engaged, motivated, and skilled workforce. The company must keep evaluating the
effectiveness of these initiatives and coordinating them with the overall business strategy if it
wants to maintain these results.
References

Job Enrichment: A Comprehensive Guide


https://www.personio.com/hr-lexicon/job-enrichment/

Volvo’s HR Practices-Focus on Job Enrichment


https://www.icmrindia.org/casestudies

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