Ikea and Human Resource Practices in China

3703 Words Sep 5th, 2012 15 Pages
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
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… And how can moves abroad be achieved without personally affecting my family and me in a financially devastating way?”
The answer was according to Torekull to establish a double command structure consisting of “the spirit” that takes care of the IKEA concept and “the hand” that manages the operation. Thus, the IKEA group of companies is a bit complicated. The parent company is INGKA Holding B.V., which is owned by Stitching INGKA Foundation in the Netherlands. Established by Ingvar Kamprad in 1982, the purpose was to create an ownership structure that and organization that stand for independence and focusing on a long-term time orientation. The IKEA group franchises the IKEA concept to all the stores worldwide. This is managed by Inter IKEA Systems B.V. in the Netherlands. (Fundinguniverse.com, a)

Figure 2. Structure of the IKEA Group of Companies. Source: Welcome Inside – Yearly summary FY 2010 IKEA Group.

2.3 Managing foreign establishments
Von Krogh and Cusumano (2002) describe IKEA’s going abroad strategies as a duplication strategy. This is also accordingly with Kamprad’s vision of retaining the concept and organization culture. Moreover, they mention that IKEA used to hire managers that often were Swedish or at least familiar with the Swedish language.
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