Essay Ikea Way

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Many professionals who enter into the world of human resources quickly believe that they will succeed in their new found field simply because they have a knack for relating with people from all walks of life. While having "good people skills" is certainly a positive attribute for working in the human resources field, being in tune with the ever-changing policies and procedures that successfully make a team or company tick, is just as important as being the boss that everyone loves. Managing your rules and guidelines works in tandem with managing "your humans."
Today, many managers enter the world of human resources simply because they are exceptional managers. They have climbed the rank and file of the corporate ladder, succeeding at each rung, to the point where they are now managing a team, which may include "kids" fresh out of college or professionals who have been in the workforce for some time, sometimes even longer than the manager himself. Having the ability to create synergy on his team, to drive productivity and provide opportunities for employee growth while developing policies and procedures that apply to all are just a few of the trademarks that make a great manager.
Others enter the human resource field by choice. They are the "people" people who want to work in the actual Human Resources department of a company to become "the people that staff and operate an organization as contrasted with the financial and material resources of an organization. The organizational function that deals with the people ..." Whether its entering the world of human resources by choice or by being thrown in because of your professional successes, the basic principles remain the same: you not only want to get the job done, but also you want to get it done with good people who work collectively and cooperatively toward a common goal successfully. Hiring the right people, training them, affording them opportunities for growth, all while setting parameters and guidelines, is the key to great human resource management.
IKEA was one of the largest furniture manufacturers and retailers in the world, with operations in 32 countries (in early 2005). The company was well known for its stylish and innovative designs. It was the pioneer of furniture that could be dismantled and packed flat, to allow ease of transportation. IKEA's main strength was its committed workforce, which was often the source of the company's innovative concepts. IKEA adopted a positive approach toward human resource management. In the late 1990s and early 2000s, the company implemented several initiatives that promoted 'life balance' and diversity. The case discusses the innovative human resource management practices adopted by IKEA and describes its work culture.

Initiatives related to flexible work design, comprehensive benefits, quality of work life, and employee training and development are outlined. The case also discusses the prominent elements of IKEA's culture, such as diversity, openness, equality, cost consciousness, and competitiveness.

Issues:

» To understand the human resource management practices and work culture of a major furniture manufacturer and retailer

» To appreciate the importance of positive human resource management practices in employee retention

» To understand the need for employee development and to study the practices adopted by a major multinational company toward this end

» To analyze the effect of culture on employee morale and the relationship between culture and innovation

It’s the people who make the company

IKEA companies need down-to-earth, straightforward people who want to help us fulfill the IKEA vision – to create a better everyday life for the many people. Our Human Resources teams lead the work of attracting and inspiring co-workers and creating a stimulating and enjoyable work environment. They are keenly aware that the continued success of IKEA businesses depends on the continual development of
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