Management and Organization

1.
In terms of human resource management, Volvo's new production mode includes the following management elements.
Orientation: Volvo has come up with a new manufacturing system in which teams of five to 12 people assemble cars, with a group of employees responsible for each individual's unique tasks. This allows each employee's work to fit them, rather than the same employee doing highly repetitive tasks repeatedly. Doing so can effectively improve work efficiency and reduce staff turnover (Amin & Akbar, 2013).
Training: Volvo makes it possible for both old and new employees who want to learn new skills to take government-funded courses during the working day and gain valuable professional qualifications. Providing free learning opportunities for employees can not only make employees feel the benefits of the Company but also improve their professional ability (Naqvi & Khan, 2013). At the same time, it also enhances the work efficiency of employees. Okumu, Kiflemariam, and Mang’unyi (2018) conducted a study on the effects of employee training on employee performance, and according to their findings, knowledge transfer has a significant relationship with employee performance. Therefore, training employees significantly improves their performance.
Performance management: Volvo divides its employees into teams of five to 12 people, responsible for assembling the entire car and dividing tasks within them. This allows employees to adjust the content of their work as they wish to be paid in line with their expectations. Volvo has set a financial incentive for each car the team produces each day, and everyone in the team will receive an equal financial incentive. This helps create a positive competitive environment among employees and prevent vicious competition within the Company with transparent compensation. For example, Apple Inc. does not like large teams. Instead, the Company prefers smaller teams to ensure that everyone becomes accountable for their actions (Podolny & Hansen, 2020). And an equal financial reward for each member of the group would align the group with the goal of efficiently producing a given number of cars.
Compensation and benefits: Employees will receive FIKA benefits and can meet daily to have coffee and discuss ideas with colleagues. Every Friday the Company holds a big FIKA party where everyone prepares food. And Volvo will offer older workers the chance to work in specialized senior units. Workers who want to learn new skills can also take free courses during the working day. Such benefits enhance employee satisfaction and job commitment (Darma & Supriyanto, 2017).
Career development: Since each team member will be responsible for vehicle production, more skills will be developed to adapt to smaller, self-managed team tasks. For older employees, who may not be able to learn new skills effectively to adapt to the Company's restructuring, Volvo will provide them with specialized positions rather than letting them leave.
Followings are positive sides.
Improve the efficiency of employees: Team cooperation and FIKA culture can enhance the relationship between employees, improve the tacit understanding among employees, and avoid vicious competition. The team responsible for vehi...