Will Volvo’s perks give Ford sticker shock

Essay by ASamir August 2014

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Case Study #2

Will Volvo's perks give Ford sticker shock?

Problem Definition:

Ford Motor Company's purchase of Volvo in 1999 is likely to change the life of Volvo employees. And the employees aren't too excited about giving up the status quo.

Justification of the problem Definition:

Volvo's employees enjoy a wealth of benefits available to them for $1.50 a day, although employees at US Ford Plants usually have a free-of-charge fitness center, the facilities are nothing like the health club at Volvo.

Volvo employees are worried. Will they lose their health club? Will Ford's goal to turn Volvo into a "Volume car" change the way they work? That could mean a three-shift, round-the-clock production schedule, just like in the US. Volvo employees currently work only two shifts. Will Volvo employees' job security be threatened? Will the quality of their work life change? Workers are concerned. They now works less than 30 hours a week but gets paid as if he worked 40 hours on the day shift.

The shorter hours allow them to spend lots of time with their families.

The company's CEO only says, "I respect the Swedish heritage." But he adds, "nothing is safe in this world; there are no guarantees."

List of alternatives course of actions:

Keeps the benefits to Volvo's employees as it is but work in increasing productivity and efficiency of their work.

Keep the benefits but make it in a specific periods only and scheduling the benefits during the month (i.e : twice a week)

Use the benefits as a motivation tool for the workers to increase their productivity (i.e : who is achieving his KPIs for the Month , or the employee of the Month will be use these benefits free for 3 Month.

Renting these Services to outsourcing company which will decrease...