Introduction
Autoliv is an Australian manufacturing company that manufactures safety occupant restraint systems such as seat belts, airbags and child restraints for car manufacturers like Ford, Holden, Toyota and South Korea. Autoliv’s workforce is highly diverse. The company achieved success because it was able to integrate its human resource policies and practices with the organization’s ultimate goals and objectives. In order to do this, the company has restructured its human resource management policies and practices.
Question 2:
Schuler and Jackson’s Contingency Framework
Schuler and Jackson (1987) were among the researchers who promoted the contingency approach to human resources management. According to these researchers, a firm can be effective if its HR practices and strategy are aligned with other aspects and strategies of the firm.
Another argument that favors the fit perspective was presented by Baird and Meshoulam (1988). They argued that HR must be closely integrated into the planning process of the firm. In addition, they also advocated the idea that a firm can achieve success if it is able to develop HR policies and practices that compliment and support other HR policies and practices and other elements of the organization’s strategic plan. The contingency perspective according to Radcliffe (2005) assumes that business performance will be improved when there is consistency or fit between the business strategy and HR policies.
SHRM at Autoliv
The first step that the company took was making its HRM department a strategic partner in the business process. The company took a strategic human resource management perspective. Strategic human resource management (SHRM) is a philosophy of people management based on the belief that human resources are uniquely important to sustain the success of a business. SHRM can be defined as the process of linking the human resource functions with the strategic objectives of the organization in order to improve performance (Ahmed et al, 2006). Strategic human resource management involves the linking of HRM with the strategic goals and objectives of the organization in order to achieve a progressive business performance and achieve an organizational structure that promotes innovation and flexibility (Buyens and de Vos 1991). Strategic HRM according to Burke and Cooper (2004) has emerged as a major approach to improving the competitive advantage of the firm. The goals and objectives of HRM are aligned with the strategic objectives and plans of the organization.
Autoliv aligned HR practices with organizational strategies. Autoliv developed HR strategies and policies that support the organization’s strategy.
1. Performance Management
The company applies an integrated performance management model where in the company identifies its objectives and then measure the performance indicators. The company’s objectives are sustainable growth, customer focus, employer of choice, world class manufacturing, and social responsibility. The company developed a performance management system wherein these objectives are linked to HRM objectives and outcomes. The company uses benchmarking in its performance management. HR at Autoliv benchmarks practices across industries and globally to give the company a clearer insight on how it compares to others as a means of performance improvement.
2. Work Design
Autoliv also sought to initiate changes in the area of work. This was done by changing the way work is done in the company. The company designs its work by focusing on quality, flexibility, and the customers.
3. Staffing
Recruitment and selection are important HRM practices. Recruitment is an HR practice where the company attracts job applicants while selection is the process of identifying the most qualified job candidates. The company designed its staffing process in order to ensure that it attracts qualified applicants, has mechanisms to identify the best candidates to fill its jobs and has the appropriate strategies in place to motivate employees to perform and to satisfy and retain them.
4. Education, Training and Development
Training is the HR practice wherein employees are equipped with the knowledge, skills and abilities that they need to perform their current responsibilities. Development is the process by which employees are trained to fulfill future responsibilities. The company pays significant attention to human resource development (HRD). Human resources development according to Sims (2002) coordinates the organization’s efforts to provide training and development experiences for its employees. The company invests large amount of money, time and effort in developing the skills of its employee. Autoliv ensures that its education, training and development strategies are in alignment with the organizational goals and strategies.
5. Career Development
Autoliv initiates and makes sure that career development opportunities are available to everyone in the organization. The management partners with the employees and the HR department in making sure that career development takes place.
6. Reward and Recognition
Managing rewards in a way that it aids in the reinforcement of the behaviors, attitudes, and work ethics that the company seeks to promote is very essential to the success of Autoliv
7. Equal Opportunity and Work-Life Balance
Autoliv is committed to diversity and is considered as an employer of choice. The company has introduced diversity policies and is active in promoting equal opportunities for everyone. As part of the company’s commitment to its female employees, Autoliv developed a work-life balance strategy that benefits its female staff.
Question 3:
The change initiative at Autoliv aimed at making the organization more flexible and achieving high quality in manufacturing. The company also aimed to become more consumer-focused.
The change initiative from the design process to the implementation was headed by the CEO and the top management. The CEO is the one responsible for identifying the goals and objectives of the company. The CEO creates a vision and communicates this vision to the people of the organization. The leadership style taken by the CEO at Autoliv can be considered as transformational leadership. The focus of transformational leadership are the people and their relationships. Transformational leadership aims to transform feelings, attitudes and beliefs. Transformational leadership occurs when one or more persons engage with other sin such a away that leaders and followers raise one another to higher levels of motivation and morality. Transformational leadership leads to the transformation of the leader, the followers and the social system in which they function. The changes that took place in Autoliv are developmental in nature, wherein the organization sought to achieve more. As change take place in the organization the leader according to Williams (1998) must have the ability to create and sustain excellence. He must posses proactivity and a capacity for anticipatory thinking, envisioning and action. They must recognize the importance of innovation and must have the skill to tap into all available sources of creativity. Lastly, leaders must integrate competence and the ability to co-ordinate the constituent parts and strengths of an organization into cohesive and effective production and delivery.
Leading Change
The organizational leader (CEO) is the one that leads change. The CEO creates a vision and communicates this vision to the people in the organization. In leading change, the leader takes different role. Chartier (1985) identifies the different roles that leaders must fulfill in facilitating change.
1. The Leader as Catalyzer – The CEO and management of Autoliv challenged the status quo and wanted to change how things are done in the organization. The leader was the one who envisioned the goals for the organization.
2. The Leader as Process Helper – The CEO as the change leader, was the one who is in-charge with the problem solving and innovation processes of the organization.
3. The Leader as Solution Giver – The CEO created solutions and effectively communicated them to the employees.
4. The Leader as Resource Linker – The CEO was able to bring the organization’s resources together.
5. The Leader as Stabilizer – The CEO was able to build interdependence and cohesiveness on all sides of the organizational change.
In order to ensure the success of the change initiative, the management did the following:
1. Built a Climate for Change
Successful change in the new economy will result from a climate that welcomes, initiates, and manages change. In such a climate, risk is accepted as a natural part of doing business. A premium must be placed on innovation and creativity. Employees have to be encouraged to try new and different approaches to the job and other work processes (Sims 2002).
2. Communicated the Changes to Everyone in the Organization
Effective communication is important in managing change. Effective communication is a key tool for managers seeking to drive successful change. Organizations that can communicate effectively about change increase the odds that changes they undertake will be successful, and that the environmental changes they encounter will be understood. Organizations that mismanage communication about change or simply ignore the need for it when change is necessary, help guarantee their own struggles and failure to change (Axley 1996, p. 194; Kotter 1995). Organizational change needs commitment from both the employee and management. Managing change is not a simple task. The management needs to make sure, above anything, that the employees understand the reasons for change. The employees must realize the importance of change and how they can contribute to the success of organizational change. Below are some strategies that can help the organization to be successful in its change efforts.
References
Baird, L and Meshoulam, I 1988, ‘Managing Two Fits of Strategic Human Resource Management’, Academy of Management Review, vol. 13, pp. 116-128.
Burke, R and Cooper, C (Eds) 2004, Reinventing Human Resources Management: Challenges and New Directions, Routledge, New York.
Buyens, D and De Vos, A 1999, The Added Value of the HR Department. In C Brewster and H Harris (Eds), International HRM: Contemporary Issues in Europe (pp.31-47), Routledge, New York.
Chartier M R 1985, Functional Roles for Facilitating Organizational Change. In L D Goldstein and J W Pfeiffer (Eds), The 1975 Annual Handbook for Group Facilitators, San Diego CA University Associates.
Schuler, R S and Jackson, S E 1987, ‘Linking Competitive Strategies with Human Resource Management Practices’, Academy of Management Executive, vol. 1, no. 3. pp. 207-219.
Sims, R 2002, Organizational Success through Effective Human Resources Management, Quorum Books, Westport CT.
Radcliffe, D 2005, ‘Critique of Human Resources Theory’, Otago Management Graduate Review, vol. 3, pp. 51-67.
Williams, M R 1998, Mastering Leadership: Key Techniques for Managing and Leading a Winning Team, Thorogood, London.
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