Management of Organization: A Case Study on the Human Resource Management of IKEA
This report discusses the innovative Human Resource Management (HRM) practices adopted by IKEA and describes its work culture. The report begins with a statement of the problem. Both the business and research problems are included in this report. The report further looks into research design and methodology.
1.1 Statement of the Problem
IKEA had shown itself to be the world’s largest furniture manufacturers and retailer with operations in 32 countries. IKEA adopted a positive approach toward HRM. However, there are several problems on IKEA’s HRM practices.
The following research problems are:
1. IKEA has a standardized human resource (HR) policy which applies to all employees without taking into account local differences in management and culture 2. Top managers tend to believe that IKEA’s way of managing people has universal appeal 3. The Swedish management is relatively hard to understand for non-Swedes; hence some features of IKEA’s corporate culture are weird and jeopardize the efficiency of foreign subsidiaries
1.2 Research Objectives
Given the statement of problems presented above, the objectives of this research are summarized as follow: 1 To understand the HRM practices and work culture of a major furniture manufacturer and retailer 2 To appreciate the importance of positive HRM practices in employee retention 3 To understand the need for employee development and to study the practices adopted by a major multinational company toward this end 4 To analyze the effect of culture on employee morale and the relationship between culture and innovation
2. LITERATURE REVIEW
IKEA’s HR philosophy subscribed to the belief that employees were more productive and committed when the company took care of them and their needs. However, although the company had a positive HR philosophy and offered...