Table of contents
1 IKEA’s background:
2 The uses of human resource in IKEA
2.1 Strategic Human resource management
2.2 Recruitment and selection
2.3 Value driven
2.4 Assemble your future
2.5 Training and development:
2.6 Compensation and benefits:
2.7 Career and succession
3 Issues faced by IKEA:
3.1 First issue
3.2 Second issue
3.3 Third issue
The evolution of management made a lot of change in the perception of labor, first employees where just considered as labors, a way for an organization to achieve their objectives, and many manager didn’t gave them any attention, and thought that they will have everything by giving them money. But with the evolution of management, managers considered their visions and knew that their employees can be a tool that helps the company to achieve their goals. From here started the thinking of considering humans as a resource for a company. From that all the theories were based on humans, how they motivate them, improve them, helping them to fill comfortable in the company, training them, giving them more responsibilities and of course reward them. The next step was the creation on the companies a department of human resource capital, and this department has the objective of mashing company’s goals with the human resources of the company needs (employee’s needs). This department tasks are in general related to people, and we can compress them as manpower planning, recruitment and selection, retention, training and development, compensation and benefits which come under rewards and succession planning. In this assignment I chose IKEA as a company to illustrate the activities of the human resource department. Choosing IKEA was for their reputation in term on effectiveness in the application of the HR principles, and their reputation for being a company that people want to work for. Also to discuss some of the issues that they faced in the past or are facing in the moment, and comparing them with the companies that are doing well in term of HR management.
1 IKEA’s background:
IKEA was founded in 1943, by Ingvar Kamprad (when he was just 17years old), the company is named as an acronym comprising the initials of the founder’s name (Ingvar Kamprad), his parent’s farm name (Elmtaryd) and his city’s name. His business started with selling pens and many other small products, after that Ingvar started to selling and later manufacturing furniture. (Jobeer Dahman, 2011) With 332 home furnishing superstores in 41 countries, IKEA is known as the largest furniture retailer in the world; their products are famous for their stylish and modern architectural design, and for their low prices comparing to their competitors. IKEA is recognised for its Scandinavian style, the majority of their products are flat pack, ready to be assembled by the consumer. IKEA carries a range of 9500 products, and all of them are available in all IKEA stores and consumer can also order them by internet. Although IKEA is originally a Swedish company (created by Swedish, and produces and sells Swedish style home furniture), the actual owner is a Dutch company, and this is known as Inter IKEA Systems BV. So far, the majority of the stores around the world are managed by IKEA group. (Companies, 2008) We can mention also that IKEA stores include restaurants and cafes serving Swedish food, a small shop selling Swedish groceries. The IKEA’s vision is “to create a better everyday life for many people”. IKEA wants to sell a wide range of furniture and accessories, and this at low prices that many people will be able to buy their products. (IKEA, n.d.) IKEA has a good reputation in terms of human resources management, working environment and advantages for employees or taking care of them. It was classified in the “100 best companies to work for” list by FORTUNE for three consecutive years, which means that specialist...
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