Ikea and Human Resource Practices in China

Topics: IKEA, Human resource management, Ingvar Kamprad, China, Culture of China, Chinese calendar / Pages: 15 (3709 words) / Published: Sep 11th, 2012
Contents 1 Introduction 2 1.1 History 2 1.2 Vision 2 1.3 Business idea 2 1.4 The human resource idea 2 1.5 Limitations 2 2 Empirics 3 2.1 IKEA’s presence in the global market 3 2.2 IKEA going global 4 2.3 Managing foreign establishments 5 2.4 IKEA in China 6 2.4.1 Duplication system 6 2.4.2 Training 6 2.4.3 Vacant positions 6 2.4.4 Social Responsibilities 7 2.4.5 Staffing 8 3 Analysis & Discussion 10 4 Conclusions 13 5 References 14 5.1 Articles 14 5.2 Internet 14 5.3 Company material 14

1 Introduction
1.1 History
IKEA was founded in Sweden in 1962 by Ingvar Kamprad at the low age of 17. The letters in IKEA is an acronym of Ingvar Kamprad, Elmtaryd (the old spelling of the farm where he grew up) and Agunnaryd (the village’s name). Starting with selling pens, matches and other products, Ingvar eventually started selling and later manufacturing furniture. The concept has basically always been the same – large volumes at low purchase price. Products with high demand sold at low prices. Not only do IKEA handle large volumes of goods. With businesses in 26 nations worldwide IKEA is represented in four continents, employing as much as 123 000 people (Ikea.com, a). This makes human resource management a fundamental part of daily processes. Domestic human resource management is a task itself. The international undertaking of HR management is another.
1.2 Vision
To create a better everyday life for the many people (Ikea.com, b).
1.3 Business idea
We shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them (Ikea.com, b).
1.4 The human resource idea
To give down-to-earth, straight-forward people the possibility to grow, both as individuals and in their professional roles, so that together we are strongly committed to creating a better everyday life for ourselves and our customers (Ikea.com, b).
1.5 Limitations
IKEA’s presence in



References: Jonsson, A. (2008). A transnational perspective on knowledge sharing: lessons learned from IKEA’s entry into Russia, China and Japan Karcz, K., Liu R. & Adamska J. (2006). How to survive as an expatriate in China? – A case study based on three companies: IKEA, NCR and Texol. [Electronic version]. School of Management and Economics, Växjö University. Von Krogh, G. & Cusumano, M.A. (2001). Three Strategies for Managing Fast Growth. [Electronic version]. Mit Sloan Management Review. ISSN 1532-9194, Vol. 42, Nº 2, 2001 , p. 53-61. Wei, L-Q. (2007). IKEA in China: Facing Dilemmas in an Emerging Economy. [Electronic version]. Asian Case Research Journal, Vol. 11, Issue 1, 1–21 (2007).

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