The paper “ Key Force for Organisational Change at Autoliv Australia ” is an actual variant of case study on the business. Forces for organizational change can be conceptualized at three tiers. The first tier is the macro-economic factors that impact the operations of the firm and thus, need to re-align and leverage on the opportunities while limiting extreme negative factors. This constitutes one of the external factors that a business has no control over. Cadle, Paul & Turner (2010, p. 3) observes that these fall under the banner known as Political, Economic, Social, Technological, Legal and Environmental forces (PESTLE).
Kristal and Bontis (2007, p. 943) indicate that the ability to comprehend such factors by management or strategist empowers them to contextualize implications and consequences for the organization and thus, the ability to develop propositions of how to respond by pinpoint attention areas. The second level is the industry dynamics which equally constitute external factors, but which a business organization can strategically influence. The dynamics are best contextualised under Porter’ s Model of the five competitive forces. These include the threat of new entrants; rivalry among existing competitors; the threat of substitute products/ services; bargaining power of suppliers; bargaining power of buyers (Goymer, 2004, p. 209). The final one is the internal dynamics such as the need to leverage on strength & opportunities while limiting threats & weaknesses so as to address any performance lapses that might not address customer needs in terms of value creation can necessitate organizational change (Kotter, 1995, p. 60-61).
However, the concerns for change internally are organizational problems. This should be based on the need to ensure purposes, structure, rewards, helpful mechanisms, relationships, and leadership (Weisbord 1976).
As such, this might include, but not limited to organizational behavior, organizational processes, firm’ s operations, human resource strategies, and quality management. For the case of Autoliv, the first pressure which was an internal one was the need to re-align their human resource needs and practices with the business processes & operations so as to ensure that human resource acts as a strategic partner and agent for change. This saw the organization move from a mere traditional engineering & manufacturing business to a state-of-art business that takes cognizance of human capital diversity and values in the organization.
This has seen the firm have a positive reputation amongst prospective and existing employees as it is ranked 817 out of 1000 BRW index. For instance, the firm has been able to address issues of diversity where they currently have an employee from 57 different nationalities who speak 50 different languages with 75% being women. This has allowed the firm to exhibit strong annual growth at an average of 20%. The second perspective is premised on the aspirations to aligning operations according to the organizational culture of the parent company that is anchored on strong corporate values and ethics.
In this regard, the hallmark of all engagement is embedded in the shared value approach and sound value-based leadership approach. For instance, under sound value-based leadership, they seek to ensure the growth and development of prospective employees; acquire and leverage information technology; ensure delivery of high-value customer service and continuous improvement so as to ensure high-quality products. Under a shared value paradigm, the principal premise is to ensure participation, consultation & communication.
For instance, the three aspirations are exhibited during decision-making processes that are normally consultative; empowerment of employees to engage in a hands-on approach and face-to-face employee briefings.