Volvo's HRM - Essay Example

Human Resources (HR Volvo's HRM Despite the initial progressive success of the Volvo’s Uddevalla plant, its sudden premature closure does not illustrate clearly the effectiveness and efficiency of soft model in human resource management (Ellega?Rd, Engstro?M & Nilsson, 1999). But from its previous performance under adoption of the model it can be inferred that it efficient for a manufacturing company. The reasons given for closure of the company are not true. The first argument was; there were three plants in Sweden; Kalmar, Torslada and Uddevala and all of them were perceived to be equally of the same measure production efficiency. Secondly, the cost of production in Uddevalla was high compared to the Torslada costs of production. Both reasons for the premature closure of the plant were not correct according to level at which Uddevalla was operating and the rate at which it was assembling cars (Branch & Smith, 1996). During its period of operation Uddevalla plant; attained an excellent efficiency in production in flexibility, quality and productivity, succeeded in attaining professional dignity identity and better conditions of work for its employees, the technical equipment were readily available and in good state a factor which enhanced high competence of workers, the employees were of diverse ages encompassing both sex, the employees always were motivated to give the plant their best and there was a minimum rate of absenteeism reported and always there were trainings of new approaches which were applied in the assembling work, new holistic and organic explanations of handling materials and practical tactics in various places of work were implemented (Gunasekaran, 2001). The success showed that the soft model had a remarkable future not only to the Uddevalla plant but also to Volvo Company if it were not its unexpected termination. Nonetheless, at the time of closure Uddevala was facing some challenges in implementing some of its assembly and production policies and strategies. It had realized fully its complete concept. For instance, it had achieved a close relation with its consumers who would have remarkably minimized costs and resulted to creation of qualitative new relationships to its market. But this could have resulted to its abrupt closure (Gunasekaran, 2001). Any industry requires time for it to demonstrate its ability and create good relations between the management, employees and its market. Uddevalla had a bright future with its soft model of human resource management (Branch & Smith, 1996). According to what was exhibited in Volvo’s Uddevala plant, the soft model of human resource management greatly motivates the employees and psyches them up to work better and demonstrate high prowess ability in executing the duties, roles and responsibilities in the plant. The Human resources management recognized everybody who is related to Uddevala ranging for the side of management, production and consumption of their products and services (Torbjorn, Netland, & Arild Aspelund, 2013). All the involved stakeholders were highly regarded by the plant and cherished as integral people in its development. The recognition attracted more people to the plant who invested in it a factor which enabled it to prosper and attain and go beyond the level of production of other plants such as the plant of Torslada (Gunasekaran, 2001). The management of the plant enhanced work ethics, responsibility and commitment of the employees who provided quality services in production of cars (Ellega?Rd, Engstro?M & Nilsson, 1999). New assembling and productions techniques were introduced which were accompanied by thorough and frequent trainings on the new approaches and due to the fact that the plant employed highly qualified people, they easily understood and effectively implemented the new changes in production (Hunter, Mabon, 1995). Therefore, with this model new changes would not impact production efficiency and effectiveness (Denys, European Centre for the Development of Vocational Training & And, O 1994). This is the reason why there was uniform rate of production and sometimes the rate of production increased even with introduction of new approaches. The employees of Uddevalla plant were flexible, dynamic and ever prepared and ready to learn new tactics which improved the effectiveness of work. The employees were rewarded and provided with incentives (Ellega?Rd, Engstro?M & Nilsson, 1999). The plant invested in its workers who were taken to be assets and not liabilities. Indeed the way employees work greatly influence production level and profits. The soft model of human resource management is feasible in developing and making a manufacturing plant grow (Denys, European Centre for the Development of Vocational Training & And, O 1994). The description given by the management for closure of Uddevalla plant is false. Probably, the plant was closed due to the economy of Volvo Company and the economy of Sweden. At the time of its closure, 1993, the economy of Volvo and Sweden was very unstable. Together with Kalmar, Uddevalla was closed so that Volvo can centralize its production in the bigger already established plant of Torslada. At this time, it had made low sales of cars and it wanted to reduce car production during that time and preserve the plants (Hunter, 1995). References Branch, J, & Smith, B 1996, 'Project-Based Management Development: "The Volvo Story."', Journal Of European Industrial Training, 16, 1, pp. 3-9. Denys, J, European Centre for the Development of Vocational Training, B, & And, O 1994, 'Training in the Motor Vehicle Repair and Sales Sector in Belgium. Report for the FORCE Programme. First Edition. Ellega?Rd, K., Engstro?M, T., & Nilsson, L. (1999). Reforming industrial work: principles and realities in the planning of Volvo's car assembly plant in Uddevalla. Stockholm, Arbetsmiljo?fonden, the Swedish Work Environment Fund. Gratton, L. (1999). Strategic human resource management: corporate rhetoric and human reality. Oxford, Oxford University Press. Gunasekaran, A. (2001). Agile manufacturing the 21st century competitive strategy. Oxford, Elsevier. Havlovic, S. J., & Jain, H. C. (2002). Human resource management reading and exercises. Don Mills, Ont, Pearson Education Canada Ho, H. (2006). Human resource management: one dimensional versus two-dimensional HRM, and the reconstruction of the soft and hard dichotomy through the lens af theories of man. Odense, Syddansk Universitet. Hunter, Mabon. (1995). Human resource management in Sweden. Employee Relations. 17, 57-83. Lottridge, D 2004, 'Work at the Uddevalla Volvo Plant from the Perspective of the Demand-Control Model', Bulletin Of Science, Technology & Society, 24, 5, pp. 435-440. Organisation for Economic Cooperation and Development, Pn 2006, 'New Technology and Human Resource Development in the Automobile Industry. Sandberg, A. (1995). Enriching production: perspectives on Volvo's Uddevalla plant as an alternative to lean production. Aldershot, Hants, England, Avebury. Torbjorn H. Netland, & Arild Aspelund. (2013). Company-specific production systems and competitive advantage: A resource-based view on the Volvo production system. International Journal of Operations & Production Management. 33, 1511-1531. Read More