Human Resource Management Strategies Used By IKEA

Going by the success and good market reception from the public, the company invested further within the same line by establishing two more stores in 1979. At the time of its establishment, the company was headquartered in Marietta, Georgia. However, the headquarters were moved to Cobb County in Georgia. Since its inception, the company has been led by several CEOs who have guided that company to various phases of growth. After the retirement of Marcus and Blank in 2000, Nardel was appointed as the new chief executive officer. During his term that lasted up to 2007, the company registered mixed growth and development. Activities of the company were centralized, and the company went through various phases of efficiency in operations. Nardel introduced cost cutting mechanisms that involved cutting on the number of jobs. Although earnings doubled as a result of reduced expenses, employees, and in extension the customers, were alienated (Roush 2010, p. 1-5).

The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an organization by providing functions such as recruitment,

My mentor, Erik Thun, a co-worker at IKEA, made me aware of the IKEA Management Trainee Program. Based on our discussions within the mentoring program he believes my background and personality would be a good fit for a future position as leader at IKEA. Since I plan to finish my Master degree in business process and supply chain management in June I believe IKEA’s management trainee program is a very interesting opportunity to develop my professional career.

This assignment had to be written for the class of Management and Organizations at Stenden University, course IBMS, first year. We had a group of 6 and had to work it out together. We were enjoying getting into the world of IKEA, the world’s most furniture store on the market.

”The IKEA Concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few.” *http://www.ikea.com/ms/en_GB/this-is-ikea/the-ikea-concept/index.html

Business environment is facing a rapid change that reminds the business management to focus on its core competencies to survive and sustain in the competitive environment. The core competencies can be developed by strategic human resource management. According to Armstrong (2006) employees are the valued assets for a company. The strategic human resource management is mainly developed in accordance to the fact that human resources need to be managed strategically for the company to enjoy sustainable competitive advantage.

The company’s IHRM strategy is aligned with its organizational one. The company puts all its efforts to make her products equally affordable for as many people as possible. Imposing no limitations for its candidates and employees, IKEA is being an equal opportunity employer as well. IKEA does not discriminate in recruitment, hiring or terms or conditions of employment on the basis of race, religious creed, color, age, sex, gender identity, genetic information, sexual orientation, national origin, religion, marital status, medical condition, physical or mental disability, military service, pregnancy, childbirth and related medical conditions, or any other classification protected by federal, state, and local laws and ordinances.

Human resources involves workers who are in charge of the organization and responsible for implementing strategies and policies that relate to the management of individuals. It is a very important part of a company’s success and ultimately decides how much the company can grow and achieve (Vasquez, 2003). Human resource managers seek to achieve this success by arranging the supply

Lehigh Hanson is the company I chose as my business case. Lehigh Hanson has been supplying cement, aggregates, ready-mixed concrete, asphalt, and other building materials throughout the United States, Canada, and Germany. The high demands on performance and being open minded is what HR and management hold at high demands and they lead by example. To transition the Human Resource department in becoming an innovative and driving force of the organizations to become a driving force of the 21st century, the HR department needs some assistance. This paper covers the human resource management strategy

IKEA is one of the largest multinational companies in the world dealing with several products. The company sells and designs furniture appliances and home accessories at an affordable price. Ikea has over three hundred stores worldwide enjoying the good name it has created for itself. While they are one of the most profitable furniture companies in the world there are significant challenges and threats that have been overcome and are still needed to be tackled.

In this business report on the global retail business IKEA, it will cover the nature of business, influences on operations, operation processes, operation strategies and how the business can sustain competitive advantage. IKEA was founded in 1943 by Ingvar Kamprad in Älmhult, Sweden. The business established after and with the money his father awarded him for succeeding in his studies, Kamprad sustained a cash inflow by selling pens, wallets, watches, picture frames, table runners, jewellery and nylon stockings at reduced prices to customers. Although, later on in 1958, IKEA was introduced as a leader of Swedish Furniture Company as they started to produce local furniture by the Swedish local manufacturers, which gained positive attention from their customers. Eventually, developing flat packs of furniture for storage and self assembly, making their signature style of IKEA and turning the small business into a global sensation.

Because it had such a strong and unique culture, IKEA preferred not to recruit those who had already been immersed in another cultural stream. Nor was higher education necessary or even advantageous in IKEA. “The Stockholm-raised, highly educated, status-oriented individuals often find it difficult to adjust to the culture of the company”, remarked one executive. “Younger, more open recruits not only keep costs low, but they also absorb and amplify the enthusiasm of the company. We can develop them quickly by delegating responsibilities early, rotating them frequently, and offering rapid promotions to the high performers” (Bartlett & Nanda, 1996).

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.

The main purpose of this paper is to focus on the how IKEA Company approached its operation management. Particularly, it covers the following: how the company establish and manage customer requirements, secondly how does these customers requirements used for the company’s product and services, then, third covers the operational systems and processes it used in its operation, fourth consists of capacity planning, process layout, and product services/scheduling, inventory and projects were managed in the organization. And, lastly is on why and how monitoring and evaluation of operation were carried out by the company. This paper also provides empirical findings and application of relevant theories that will help readers to really understand

Exhibit the elements of HRM in this association and its advancement during that time and complete with an individual reflection on training and business procedure here The IKEA contextual analysis examines the parts of HRM and the methodologies embraced by IKEA concentrates on sustaining and creating staff. In planning to accomplish corporate objectives, this activity has empowered development, advancement, imagination and achievement of the association. For this situation contemplate, the examination will concentrate on enlistment and determination, preparing, work association and work portability.