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Volvo Plant's Smooth Path to 1,000

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To Michelle Mclaughlin From Ankur Sonecha Date 28th May 2004 Reference Volvo Plant's Smooth Path to 1,000 Introduction On The 8th of March, Ms Mclaughlin asked me to write a report to the Managing Director of Dickens and Sons on how Volvo had tackled similar problems, which they are facing at the moment. I will be summating this report on Friday the 28th of May 2004 before 1600 hours. In this report I will be addressing the problems and how Volvo had tackled those problems with the help of Motivational theories. The report will also include some motivational techniques, which will help to make the jobs more interesting and I have divided the report into four different sections, which are as follows: Section A In this section I will be talking about the reason why Volvo had made the change the working practices at Kalmar and what was its aspiration behind the changes? Section B In this section I will be talking about the changes made at Kalmar plantation and if they were successful or not, and if they were than, why was it so? Section C In this section I will be writing my conclusion and recommendations and the reason why I would suggest Dickens and Son weather to change their working practices or not. Section D In this section I will be writing where I got the information from and which book helped me to accomplish this report. I will use Harward referencing too: Section A There are number of reason why Volvo had to modify the working practices although some of the fundamental issues which I ...read more.


Section B There are number changes I have identified, which has help Volvo to be successful and some of the changes are as follows: Introduction of team working and other benefits i.e. changing room etc This is one of they key ways which has help the organisation to resolve its problems, especially through the help of the Human relation Theory by Elton Mayo, which stated that "Working in groups can increase productivity as well job satisfaction" and Theory X and Y by McGregor, which stated that " there are two different type of people, those who hate to work and need supervision are classified as Theory X and those who love work and don't need supervision are classified as Theory Y". Since Volvo adopted these theories, the staff left more valued and as we can see from the report provided by Michelle stated, "Today Kalmar, ...than the others." which meant that they are recognised and also everyone in the team will receive the same amount of reward as stated in the report "Everyone from ... pay packet", which meant that all the staff felt like an asset to the organisation and equally treated. The teams also felt recognised because each team had its own facilities in their area and the competition between the teams increased in order to manufacture fewer faulty as well as the quality control on the car increase, where by less time was spent checking every single part of the car. Herzberg two-factor theory, Motivational-Hygiene factor theory was also applied at Kalmar plantation too, the theory stated, "There are hygiene factors such as job security, interpersonal relation, ...read more.


Based on my report Dickens and Sons should also adopt Volvo approach and put it into practices especially job rotation and job enrichment, this will help staff to get more interested in their job and more valued, recognised and feel as part of the teams. Recommendation I will recommend Dickson and Sons to adopt the system for various reason and they are as follows: * For a start it will improve the communication between all different levels of management and also communication will much more efficiently and much more easily as well as frequently. * Working in teams or groups will also improve staff performance; increase productivity and also the relation between the colleagues. Working in teams will also help to improve the communication between different management levels. * Autocratic management style also plays a major part in the developing the Kalmar plantation because it has given a chance to the staff to have a say, it also help Volvo to find out what the staff think about and what training is required by the staff. * Change in the job description also helped the organisation to use the staff employed more efficient and make the tasks more interesting by the help of the motivation techniques. It also help to keep the cost at the minimum levels. Section D Winfield, P (2000), Core Management for HR Students & Practitioners, Financail Times, Oxford. Beardwell, I & Holden, L, Human resource Management a Contemporary approach, Longman Group Ltd, Essex. Mullins, L, Management and organisational behaviour, Financial Times, Essex. Hollinshead, G & Leat, M, Human resource Management, Pitman Publisher, London Marchington, M & Wilkinson, A, People Management and Development, Cipd, London Appendix 1 ?? ?? ?? ?? Ankur Sonecha 1 ...read more.

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