BH3000: International Human Resource Management
Word count: 3,214 words*
*(excluding a list of references and in text references)
Table of Contents:
1.1 IKEA Case Study: A brief overview4
2 Staffing orientation: Expat vs. Local manager4
2.1 Which style: Ethnocentric or Geocentric?6
2.2 Case Study IKEA: Staff orientation and HR practices 7
3 The International Manager…………………………………………………………..7
3.1 Case Study IKEA: myth of international managers uncovered9 4 Gender inequality: the barriers women face…………………………….....……….9
4.1 Gender inequality: implications for HRM11
7 Group Log18
In today’s world economy, we are becoming increasingly interdependent, and businesses are competing on a global level. The on-going process of globalisation has influenced company strategies and the way they do business. In order to retain a competitive advantage, multinational companies (MNCs) have to embrace globalisation by expanding to other countries. Human Resource (HR) managers face a great challenge as a result of this, in the recruitment and management of new personnel for the subsidiaries. Since the commencement of expatriate assignments, researchers have conducted many studies on different aspects related to the expatriation in MNCs. The view of international manager transformed from myth to daily routine practices. This essay will critically evaluate HR practices based on extensive secondary research. Furthermore, it will make some conclusions and recommendation to improve HR expatriate practices, to make this experience beneficial to both the organisation and individuals. At the end of each section, practical application of human recourse management (HRM) practices will be discussed in relation to the IKEA case study.
IKEA Case Study: A brief overview
According to IKEA’s Company History the story of IKEA began in 1943 in the small village of Agu nnaryd, Sweden, when Ingvar Kamprad, the founder, was just 17. Since then, the IKEA Group has grown into a global retail brand with 332 stores, 131,000 co-workers in 41 countries generating annual sales of more than 24.7 billion EURO. The IKEA Group itself encompasses all IKEA operations – the Swedwood industrial group, distribution and warehousing divisions and the companies that own stores in countries around the globe. Low prices and well-designed, functional home furnishings available to everyone are the cornerstone of the IKEA vision, business idea and concept. IKEA has been called the king of globalisation in relation to the many local rivals in the furniture industry (Capell et al., 2005; Hollensen, 2007), and has become a pioneer in leading the globalisation process to greater transparency and mutual awareness among economic, political, and social units in the world (Guillen, 2001). Swedish culture and management practices can be seen throughout the IKEA’s culture. IKEA operates in different countries and diverse cultures and is a prime example of an MNC which practices are based on six decades and history of dealing with expatriates and gender issues. This research will analyse the HR practices related to international staffing and managers in IKEA. Moreover taking IKEA as a case study, the research will unveil the myth regarding to international managers; show integration and promotion of gender norms; describe the expanded ethnocentric approach in response to globalization for international staffing.
IKEA Case Study: A brief overview
According to IKEA’s Company History the story of IKEA began in 1943 in the small village of Agu nnaryd, Sweden, when Ingvar Kamprad, the founder, was just 17. Since then, the IKEA Group has grown into a global retail brand with 332 stores, 131,000 co-workers in 41 countries generating annual sales of more than 24.7 billion EURO. The IKEA Group itself encompasses all IKEA operations – the Swedwood...