Katerina Dlouha

2006-04-19T17:39:00.000-07:00

Introduction:
Autoliv Inc, a Swedish multinational organization
World’s number one producer of car safety equipment such as airbags, seat belts, anti-whiplash systems, safety electronics, rollover-protection systems, steering wheels (with airbags) and child seats

Autoliv Australia Proprietary Limited, situated in Melbourne since 1988
Supplier for the major car manufacturers in Australia – Ford, Holden, Toyota and Mitsubishi and also exports to Korea and other South East Asia

The need for change
In the late 1980s and early 1990s, the company faced many operating problems
Its continued survival was under the threat
Need for change in organizational structure
Change process began in 1997
New Chief Executive Officer and his executive team
Change the work practices of the traditional engineering and manufacturing business
Value of its human capital

Culture
To achieve the objectives by establishing a company culture reinforced by strong corporate values and ethics – through the practice of a shared-values approach such as trust, openness, integrity, teamwork, equity and fairness, equal opportunity, participation, consultation, communication and accountability
value based leadership approach – its obvious in the communication and consultative decision-making processes (face-to-face briefings with employees, continuous improvement teams and a hands-on approach to management.
Example: consultative committee has been implemented with 3 management representatives and 14 employees; the committee deals with issues as assisting in implementing the Enterprise Agreement, production improvements, changes to work schedules and conditions, equal opportunity and the introduction of major changes in organization, production, program and technology

Aligning HR practices to organizational strategies
Underpin the recognition of the need to develop employee, managerial and leadership talent and develop organizational capability for change through organizational learning
HR function has a strategic role to achieve organization’s goals for change

Performance management
Specific job competencies have been clearly defined and every employee is informed of the skills required to do a job or to be promoted into a job
HR benchmarks all training initiatives with a minimum of two days per employee per year (Australian standard)

Work design
Work design must have a strategic focus with the attention to quality, flexibility and customer focus
Autolive came up with arranging the production cells into customer groups (Ford, Toyota etc) with the customer’s name prominently displayed for all to see
Recruitment, development, performance management and review, promotion and succession planning are key HR practices
Understanding the business down to role competency level is seen as critical at the company for recruitment and selection, and ensuring that people are developed and placed into jobs that match their talents

Staffing the organization
Ensure that the organization attracts qualified applicants who fill best their job
Recruiting permanent employees is priority
They employs casual workers to cater for fluctuation in customer demand, position arise preference is given to casual employees

Education, training and development
The key level for the success in the organization has been the development and implementation of an integrated training and development strategy
Company redesigned its training and career policies and programs to facilitate the movements of its staff, including women, to move into management (to develop and promote women up through the organization as supervisors and to management levels)
Cooperation with TAFE programs, traineeships, on-the-job training, and internal workshops, to scholarships and study assistance

Career development and succession planning
The training and development initiatives are integrated with the provision of structure career pathways – production operators are encouraged to complete a Certificate II in Manufacturing (TAFE + relevant expert staff)
Corporate training program, study leave, a mentoring program, developmental projects/responsibilities, and overseas appointments

Reward and recognition
Rewards – remuneration and benefits – are the major determinant of the quality of people
Career paths are directly linked to remuneration
Non-financial benefits to attract, retain and motivate its workforce

Equal opportunity and work life balance
‘Employer of choice’ for women
recognized the diversity of needs of its employees for various rewards and benefits that suit their particular personal circumstances
Flexible hours, early finish on Fridays, rostered day off once a month
Support working mothers – employees with 1-3 years of continuous service – 10 weeks paid maternity leave, employees 3 or more years – 14 weeks plus return to their previous or another mutually agreed position
Availability of part-time work when returning from maternity leave or serious illness
Leave without pay for up to 6 weeks for emergencies
Option to purchase two weeks extra annual leave by taking the 52/50 pay-rate option
Option to save and purchase a years paid leave by working for 4 years on 80% of normal pay
Long service leave flexible options

Results
The number of women in management roles has increased by 15% in 4 years in executive management has increased by 10% and women in engineering has increased by 20%
Staff turnover level below 0.5%
Reduction in absenteeism with figures for 2003 below 4%
No time lost due to industrial disputes
High level of employee satisfaction
Increase in sales
Wide community recognition for innovative and progressive practices

Autoliv’s awards include:
Employer of Choice for Women 2001-2005
Organization of the Year for the Advancement of Women 2003
Outstanding Achievement for EEO Practice 2003
Society of Automotive Engineers Australasia – Advancement of Women into Engineering and Manufacturing Management 2003
Inducted into the Victorian Manufacturing Hall of Fame, June 2002. This recognizes the recipients as creators of world-class Victorian made products

Conclusion
As part of its strategy for success over the past seven years, Autoliv has adopted a strategic orientation to managing people
Autoliv achieve its business growth objectives and creating an organizational culture
A flexible and change ready organization, with a strategic orientation to its people management underpinned by stron values of high trust and high performance, knowledge management, innovation and creativity, are well positioned to meet the challenges head on.

Action research model

Problem Identification
Atoliv decreses the profits
Increasing problem with absenteeism and fluctuation
Operating problems
Atoliv’s continued survival was under the threat

Consultation with Behavioral Scientist
New CEO Robert Franklin and his executive team
Close cooperation of new management with HR Department and new HR Director Cheryl Woollard

Data Gathering
The HR Specialist started with observation, proceeded to a semi structured interview and concluded with a questionnaire

Feedback to Key Client
Feedback helps to determine the strengths and weakness of the organization
The Results:
more than half of the employees we women from non-English speaking background
the organizational structure was incomplete – production cells
poor job description
missing training scheduler
50% employees were casuals
no career development
absence of reward or benefit system

Joint Diagnosis
Is there willingness and energy to change things?
Most companies have drawers full of reports by consultants, each loaded with diagnoses and recommendations which are either not understood or not accepted

Joint Action Planning
The Autoliv’s CEO supported the planned change and kept close cooperation with the HR Director

Action
Culture
To achieve the objectives by establishing a company culture reinforced by strong corporate values and ethics – using the practice of a shared-values approach such as trust, openness, integrity, teamwork, equity and fairness, equal opportunity, participation, consultation, communication and accountability
value based leadership approach – its obvious in the communication and consultative decision-making processes (face-to-face briefings with employees, continuous improvement teams and a hands-on approach to management.
Example: consultative committee has been implemented with 3 management representatives and 14 employees; the committee deals with issues as assisting in implementing the Enterprise Agreement, production improvements, changes to work schedules and conditions, equal opportunity and the introduction of major changes in organization, production, program and technology

Aligning HR practices to organizational strategies
Underpin the recognition of the need to develop employee, managerial and leadership talent and develop organizational capability for change through organizational learning
HR function has a strategic role to achieve organization’s goals for change

Performance management
Specific job competencies have been clearly defined and every employee is informed of the skills required to do a job or to be promoted into a job
HR benchmarks all training initiatives with a minimum of two days per employee per year (Australian standard)

1. Support for working mothers
Support working mothers – employees with 1-3 years of continuous service – 10 weeks paid maternity leave, employees 3 or more years – 14 weeks plus return to their previous or another mutually agreed position
Availability of part-time work when returning from maternity leave or serious illness
Provided a lactation room and facilities

2. Work design
Work design must have a strategic focus with the attention to quality, flexibility and customer focus
Autolive came up with arranging the production cells into customer groups (Ford, Toyota etc) with the customer’s name prominently displayed for all to see
Understanding the business down to role competency level is seen as critical at the company for recruitment and selection, and ensuring that people are developed and placed into jobs that match their talents

3. Staffing the organization
Autolive ensured that the organization attracts qualified applicants who fill best their job
Recruiting permanent employees is priority
To employ casual workers to cater for fluctuation in customer demand, position arise preference is given to casual employees

4. Education, training and development
The key level for the success in the organization has been the development and implementation of an integrated training and development strategy
Company redesigned its training and career policies and programs to facilitate the movements of its staff
Cooperation with TAFE programs, traineeships, on-the-job training, and internal workshops, to scholarships and study assistance

5. Career development and succession planning
The training and development initiatives are integrated with the provision of structure career pathways – production operators are encouraged to complete a Certificate II in Manufacturing (TAFE + relevant expert staff)
Corporate training program, study leave, a mentoring program, developmental projects/responsibilities, and overseas appointments

6. Reward and recognition
Rewards – remuneration and benefits – are the major determinant of the quality of people
Career paths are directly linked to remuneration
Non-financial benefits to attract, retain and motivate its workforce

7. Equal opportunity and work life balance
Recognized the diversity of needs of its employees for various rewards and benefits that suit their particular personal circumstances
Flexible hours
Early finish on Fridays
Rostered day off (RDO) once a month
Paternity leave of one week for employees with 12 months or more continuous service
As a step towards retirement or returning from serious illness, an employee has the option of part-time work subject to consultation and agreement with the company
Leave without pay for up to 6 weeks for emergencies
Option to purchase two weeks extra annual leave by taking the 52/50 pay-rate option
Option to save and purchase a years paid leave by working for 4 years on 80% of normal pay
Access to an Employee Assistance Program to assist with personal problems
A prayer room to meet the religious practice need of its Muslims employees
Same working practices for all employees including management

Data Gathering After Action
Results
The number of women in management roles has increased by 15% in 4 years in executive management has increased by 10% and women in engineering has increased by 20%
Staff turnover level below 0.5%
Reduction in absenteeism with figures for 2003 below 4%
No time lost due to industrial disputes
High level of employee satisfaction
Increase in sales
Wide community recognition for innovative and progressive practices

Autoliv’s awards include:
Employer of Choice for Women 2001-2005
Organization of the Year for the Advancement of Women 2003
Outstanding Achievement for EEO Practice 2003
Society of Automotive Engineers Australasia – Advancement of Women into Engineering and Manufacturing Management 2003
Inducted into the Victorian Manufacturing Hall of Fame, June 2002. This recognizes the recipients as creators of world-class Victorian made products

Conclusion
As part of its strategy for success over the past seven years, Autoliv has adopted a strategic orientation to managing people
Autoliv achieve its business growth objectives and creating an organizational culture
A flexible and change ready organization, with a strategic orientation to its people management underpinned by stron values of high trust and high performance, knowledge management, innovation and creativity, are well positioned to meet the challenges head on.

Atoliv Australia

2006-04-19T17:27:00.000-07:00

Tanya Assaf

Applying Lewin’s change model

Lewin’s change model suggests; that modifying those forces that maintain status quo, produces less tension and resistance than increasing forces for change, and consequently is a more effective strategy for change.
The Lewin model is concerned with stabilising behaviour through periods of change.

Three steps are taken:

1-Unfreezing step
Involves reducing those forces that maintain the organisations behaviour at its present level.

Autoliv changed its behaviour by changing the work practices of traditional engineering and manufacturing business to a state- of-the-art business that recognises the diversity and value of its human capital.
[They] removed their traditional working practices where they heavily concentrated on manufacturing activities and changed organisational culture and structure.

2-Moving step
This step shifts behaviour of the organisation, department or individual to a new level. Involves development of new behaviours, values and attitudes in the organisation.

Autoliv moved towards recognising and valuing its human capital. [It] shifted to focus on shared values and on integrated human resource management strategies.
On the organisational level [it] shifted towards a company culture reinforced by strong corporate values and ethics.
On the departmental level it values teamwork
On the individual level it encouraged participation, equal opportunity, open communication and accountability.

3-Refreezing step

Autoliv refreezed its new changes in culture and structure and reinforced them in their ‘values’ statement. Where they state:
Our values are
Life
Customers
Employees: we are dedicated to the development of people’s skills, knowledge and potential.
Ethics
Culture: we are founded on global thinking and local actions.

Refreezing of the new organisational culture, behaviour, policies and structures, is also reinforced in their implemented leadership styles.
Value based leadership approach, encourages open and frank communication exchange, consultative decision-making processes such as, face to face briefings with employees, the use of continuous improvement teams and a hands-on approach to management.

Involvement leadership practices involving everyone in the company’s future, ensuring the growth and developing the potential of all its employees.

Autoliv’s reward strategy is also influenced by its changes in culture and structure,
its comparable with industry standards
career paths are directly linked to remuneration

games

Katerina Dlouha

Atoliv Australia