A CASE STUDY

PRESENTATION

On
Volvo’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
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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. 
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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
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competitive ability.
 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 rotation
2.Employee work groups
3.Job enlargement
4.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.

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