The Leadership Style Of IKEA

There are three classic leadership styles. Kurt Lewin’s leadership styles vary in the degree of control that they give their followers. Kurt Lewin (1890-1947) was a social psychologist whose extensive work covered studies of leadership styles and their effects, along with many other theories (Kurt Lewin). Along with two other colleagues, Lewin performed research on the effects of three different leadership styles and the outcome on groups of boys. The three leadership styles that a manager can have; Authoritarian, Laissez-Faire, and Democratic.

IKEA was founded in Sweden in 1943 by Ingvar Kamprad. IKEA is a home furnishings retailer unlike any other. It was founded on the basis of low cost and it offers modern and stylish furniture for all types of people at affordable prices. IKEA’s unique way of shopping, store layout, and do-it-yourself approach continues to help maintain their popularity.

An authoritative leader addresses the end but generally gives workers freedom to innovate, experiment and take risks. The authoritative style works best for organizations that are off track, it helps in creating a new course and fresh long-term vision. The affiliative style strives to keep employees happy to create harmony among. The style has a positive effect on communication. People who like one another a lot talk lot. They share ideas, inspirations leading to flexibility, innovation and risk taking. This style should only be employed when trying to build team harmony. The democratic style allows leaders to build consensus through participation. By spending time getting people’s ideas, a leader is able to build trust, respect and commitment. This style works best when a leader is uncertain about best direction however, it does not make sense if employees are not competent. Pacesetting is a leadership style that expects excellence and self-direction. The leader is obsessive about doing things better and faster, and expects the same of everyone around

IKEA is a multinational group of company that design and sells home furnishing products and home accessories. IKEA founded in 1943 in Sweden by 17 years old Ingvar Kamprad, who was ranked as one of the wealthiest people in 2013. The IKEA’s name is an abbreviation of ‘Ingvar Kamprad Elmtaryd Agunnaryd’. Ingvar Kamprad is founder name, Elmtaryd is the native farm and Agunnaryd is his native village located in Smaland, South Sweden. In 1943, Ikea operates mail order sale business where to sell everything such as pen, photo frame, watches and ladies leggings. Until 1958, the first IKEA store was opened in Amhult, Smaland. As of 2015, IKEA group has grown into worldwide brand own and operate 373 stores

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.

There are four main leadership styles, the first being Autocratic style which the manager retains as much control and decision making authority as possible, the manager does not give employees any input or consultation. The next is Bureaucratic which is where the manager manages ‘by the book’ which is where everything must be completed according to procedure and protocol. Mangers using this style will only consult with those above them in the chain of command. They simple enforce the rules of the workplace. The next style of leadership is Laissez-Faire which is also known as the ‘hands off’ approach to management. The manager usually provides little or no direction and give employees as much freedom as possible. All power is given to employees and they are to dictate their own work ethics. The last leadership style is the Democratic style which is also known as the participative style and this is where employees are encouraged to be a part of the decision making process. The democratic manager keeps their employees informed about everything that affects

Leadership: “A good Leader inspires Employees, Boost Morale and Encourages Effective Communication Among Employees. Excellent Leadership Can Even Increase. The Organisation’s Income”. This s something that is extremely important in managing a business, a good leader can produce good employees therefore more productivity in the workplace. For IKEA leadership style, the first is autocracy. Which is where a managers set goals, allocates staff with tasks and encourages obedience. This will reflect on the opinion and personality of

With that in mind, leadership theory has identified four management styles--authoritarian, democratic, participatory, and laissez-faire. There is inherently nothing wrong with any of them; all have their place at any given time. But it's the communication aspect that is important when implementing any given method of leadership that makes an organization rise or fall, and determines if respect is retained or lost within the group. Stated another way, the problem does not lie in the styles themselves, but rather in the presentation.

IKEA is a global furniture retailer, which is established on the concept of contributing wide range of well designed, functional, and low cost home furnishing products in 40 countries, with 330 stores and 154,000 workers (The IKEA concept, 2012). IKEA was founded in 1943 by Ingvar Kampar and has turned in an international furniture retailer that specialized in stylish but inexpensive furniture designs.

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.

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 IKEA group sells quality furniture at a low price, to maintain a strong competitor. For that, the company has to try to cut cost without losing quality in the products that it sells.

The history of the company is very colorful and interesting. IKEA was founded in 1943 in the south of Sweden in Smaland. Its founder was seventeen - Ingvar Kamprad. The boy had a great deal of business, and IKEA was not his first venture. Previously, he was selling matches in his hometown. His capital for the establishment of IKEA comes from his father, who rewarded him for good academic performance. He called his company IKEA from the first letters of his name, and the names of the family farm and the village Agunnaryd Elmtaryd. The company initially dealt with the sale of feathers, frames, wallets, tablecloths, watches, jewelry, stockings and fine furniture. Kamprad to transport their goods, borrowed a truck from the local milkman.

The last style is called laissez-faire leadership. Here leader usually participates minimally and let team members find their own way out by allowing complete freedom in decision making (Simmons and Striley, 2014).

IKEA was founded in Sweden by Ingvar Kamprad in 1943. IKEA has been established around the world in 26 different countries. Within these countries IKEA has a total of 303 stores. This business is effective in adapting to change through the use of the four key business functions; operations, finance, marketing, and human resources.