1. VOLVO - Job Design

2. Learning Objectives Identifying the approaches of Volvo
Describing the reason Volvo changing
Describing main concern regarding Volvo changing
Describe how environmental uncertainty influence the process of change

3. Background Volvo is the Swedish motor vehicle
Volvo is one leader in innovations motor vehicle manufacturer since 1970
Volvo commitment to work humanization in manufactured
There are 2 complementary explanations for Volvo actions :
Gylennhammar identifying the need to reduce labor turnover, because boring & monotonous job
Karlsson, said Volvo was one Sweden largest and successful company, their actions and practices were always in the public eye

4. Phases of Change
Volvo adoption of job design began over 29 years ago, now they reached a stage where a group work become the standard approach to work design, assembly line working
The Phases are related to investment projects in 1970s,1980s,1990s :
Kalmar
Torslanda
Udenvalla
Gent and Born

5. Phase one – Kalmar
Open 1974, it is second largest final assembly plant
At Kalmar there is :
No assembly line
Workers operate in teams
Each team having its own dedicated area of the factory
This arrangement allowed Kalmar to operate 2 alternatives to moving assembly line :
Straight line assembly
Dock assembly

6. Phase Two – Torslanda
Built in 1976, at the central assembly plant
Torslanda management experimented with the use of large, autonomous work groups to assemble an entire car using a dock assembly approach
Phase Three – Uddevalla
This was the first all new car assembly plant built by Volvo in Sweden since Kalmar

7. The design of the plant was the result of a modernization pact between the plant’s management and the metal worker’s union.
Unfortunately, the plant was opened at a time when car demand is falling
Phase Four – Gent and Born
By the late 1980s, Volvo approach to Job Design was widely accepted and practised throughout the company.

8. The Outcome
The key factors which appear to have influenced Volvo to adopt this job design :
For economic and business reasons
Full employment and lack of wage flexibility precludes more traditional measures for dealing with absenteeism and labor turnover
The parallel move by Volvo to adopt a strategy of decentralizing control to plant level
Whilst change taken place, both management and workers have found of capturing the knowledge gained other plants and lessons learnt to future projects