netrashetty
Netra Shetty
Autoliv is a Swedish-American company with headquarters in Stockholm, Sweden, that in 1997 sprung from the merger of the Swedish company Autoliv AB and Morton Automotive Safety Products, Inc., a division of the American firm Morton International.
Autoliv develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has 80 facilities with more than 43,000 employees in 29 countries. In addition, the company has ten development and engineering centers in nine countries around the world, including 20 test tracks, more than any other automotive safety supplier. The company's shares are listed on the New York Stock Exchange and its Swedish Depository Receipts on the OMX Stockholm Stock Exchange.
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.
Autoliv develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has 80 facilities with more than 43,000 employees in 29 countries. In addition, the company has ten development and engineering centers in nine countries around the world, including 20 test tracks, more than any other automotive safety supplier. The company's shares are listed on the New York Stock Exchange and its Swedish Depository Receipts on the OMX Stockholm Stock Exchange.
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.