Classical Management V Human Relations

IKEA is an internationally known home-furnishing retailer, with over 300 stores in 40 countries, that specializes in products

The second component of the chain of command is responsibility. The manager assigns different jobs to his subordinates and it is

In order to get things done in an organization, management has the authority to give orders to the employees. Of course with this authority comes responsibility.

IKEA is an international company which designs house products and sells them in the form of ready to assemble furniture. It is one of the world’s largest furniture companies. It is founded by17 years old Ingvar Kamprad in Sweden in 1943. The most important fact about the company is the attention to control the cost of the products, which allows them to lower the prices. Even today they are continuing to expand in the world by looking forward to new product developments. The number of stores of IKEA in the United States is 14 at the moment and they aim to have 50 stores by 2013.

The IKEA brand was founded by Ingvar Kamprad in Sweden 1943. The household furniture giant has been named the worlds largest furniture retailer since 2008, and its ready to assemble furniture and low prices has seen stores set up all over the globe as well as the UK. The IKEA company is a private business so its shares aren’t sold and traded to and with the public. Its business concept aims to target a wide market at low prices and officially states “We aim to 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, United Kingdom, 2015). IKEA UK has 18 stores and is growing rapidly with plans to open more stores and stores on the high street for small goods.

Centralization refers to “the degree to which decision making is concentrated at a single point in an organization.” In organizations that are highly rigid and centralized, only higher-level managers are given substantial decision-making power, while lower-level employees are left to simply execute these decisions. Decentralization, on the other hand, empowers lower level employees, giving front-line employees and their immediate managers much more decision-making power. There are numerous types of organizations, all varying in levels of centralization. However, structures that particularly emphasize flexibility include the virtual organization and the boundaryless organization, both of which are more

Structure and hierarchy come from how work and the work processes are coordinated together and relating how tasks and coordination of these tasks is to be obtained. When determining the authority in the structure of an organization, there are two major options, centralized and decentralized. A centralized organizational setup is where the authority to make important decisions is retained by managers at the top of the created hierarchy whereas a decentralized organizational setup is where the authority to make important decisions about organizational resources and to initiate new projects is delegated to managers at all levels in the hierarchy. Each choice is made based upon the main goal/task of the organization and what would better fit the organization. Whether work/the

IKEA is the world’s largest retailer of home furnishings. It strives to provide simple, functional, modern, and useful products at affordable prices to as many people as possible in as many places regardless of their geographical location. IKEA concept is implemented from the start of idea, implemented into the design, manufacture, logistics, sales and final assembly of each product. IKEA was developed by Ingvar Kamprad from southern Sweden, where people are known for surviving and making the most from limited resources.

Ikea offers a wide range of home furniture and accessories, from bedroom furniture to kitchen appliances. It also has a wide variety of style which it represents in all of the various showrooms within the store. It’s able to produce low price products that are high in quality.

Ikea, originating from Sweden was started out by Ingvar Kamprad by first selling daily used items and home accessories in the 1940s, over the years it has now evolved to being an established home furnishing company that “designs and retails its own ready-to-assemble furniture, appliances and home accessories”.

IKEA is a worldwide expanded company. They enlarge their showrooms to North America, Europe, Australia and Asia. Customers can check out IKEA’s product in the show rooms and also by checking out IKEA’s websites to get their selected products to be home delivered. This is an effective way of selling their products as customers who are busy with their own work can purchase their preferred products online whenever they want to. Thus, this is an advantage for both customers and IKEA’s company as their sales doesn’t stop at the showroom itself.

Ikea is a multinational group of companies operating on a global scale in the furniture industry, offering a wide range of ready to assemble (Do It Yourself) furniture, appliances, and accessories worldwide. The company is well known and recognized for its modern designs, functionality of their products, quality services, and their eco-friendliness. Within the competitive market, Ikea aims at being better than its competitors in the market, and offers the best standards of services to its customers, as well as a wider range of products for low prices.

The Industrial Revolution brought about the classical perspective in management from which the emphases on the productivity and efficiency was developed based on the entire efficiency of employees in organizations. The focus was not based on the attributes of human or their behaviour but in differences between them (Anon., 2009)in the workforces. Human fault and performance where not taken into consideration, so the classical approach was regularly criticized for overlooking the requests and needs of workers in the workplace. But the classical approach was heavily inspired by processes of developmental operations.

Ingvar Kamprad Elmtaryd Agunnaryd is the abbreviation of IKEA. The name of IKEA is established from the founder’s name, Ingvar Kamprad (I.K.) plus the first letter of Elmtaryd (E) and Agunnaryd (A), which is the native field and town where he grew up. IKEA is founded in 1943. It is a worldwide company with 127,000 employees that operates 53 stores in 43 countries. IKEA is an international household goods company that designs and betrays ready-to-assemble furniture. For example, couches and desks, implements and household accessories. Ingvar Kamprad is hoisted on ‘Elmtaryd’, a field near the small town of Agunnaryd. Ingvar has an aim even as he just a young child. His aim is develop own business.

Founded on this and Kamprads own views Ikea has grown exponentially and sits as a world leader in management. Scandinavian management were equality, communication, cooperation, trust and consensual decision making are vital elements in the concept. Managers are focused on their employees and feel that they need to satisfy them in order to motivate them. This motivation has proven to lead to better productivity and performance of the organization. Swedish managers are indeed focused on human resources and are practicing Scandinavian management. Scandinavian management is necessary on the Swedish market as it increases the chances for having a productive company with satisfied employees and customers.