This PPT explains the work culture of IKEA and innovative HR practices. it contains few facts and the analysis made through glassdoor concept

1. IKEA Innovative human resource management practices
Bukke Nireesha
Vyas Agasthya
Dommeti Deepika
Challagali Bala Dheeraj
Vigneshwaran C

2. Best Employer Award
• Got rank 62 in fortune (international
business magazine)
• Innovative HRM practices
• Coworkers have the support and flexibility
to make their personal lives a success

3. Data
• Private company
• Founder: Ingvar kamprad
• Peter Agnefjäll-present CEO and chairman
• Products-Self assembly furniture
• Employee strength-139,000(2013)
• Operating revenue-28 billion

4. • Kamprad born businessman
• Used to sell matches, Christmas decorations
stationery items ,fish and seeds
• One of the largest furniture manufacturers
• Ikea’s founder was rumored to be richest man
in the world
• IKEA expanded using franchisee model

5. TimeLine
• 1943 -started(stationery, jewelry, wallets)
• 1945 -increased business(shipping through milk van
• 1947 -introduced IKEA’S product line(armchairs)
• 1951 -sales increased(focus mainly of low cost furniture)
• 1953 -first showroom(customers can feel the furniture)
• 1955 -introduced best and innovative furniture
• 1963 -overseas expansion
• 1985 -first store in US
• 1986 -Kamprad retd.
• 1999 -big thank you Event
• Sep 24,2014-Ikea planning to set up a store in hyd and in
karnataka

6. IKEA FACTS
• All its furniture is based on names of places in
Norway, Sweden, Finland
• If you are in china, you can go to a IKEA store
and take a nap over there
• In 2012 they started brewing beer
• In Sweden, it is illegal to name a baby by name
IKEA

7. INGKA
FOUNDATION
INGKA
HOLDINGS B.V.
Inter IKEA
Systems B.V.
Industry
Swedwood
Group
purchasing
Distribution
and
Wholesale
Range IKEA
of
Sweden
Retail
The IKEA Group
Support
Functions
Organization Structure

8. IKEA’s VALUES
•Humbleness
•Willpower
•Leadership by example
•Daring to be
different
•Togetherness and
enthusiasm

9. IKEA’s VALUES
• Cost-consciousness
• Accept and delegate
responsibility
• Constant desire for renewal
• Simplicity
• Diversity is part of this

10. Human Resource Management Practices
• “To create a better everyday life for the
many people”
• Standardized policies
Spiers- Lopez in late 1990’s HR Head of
IKEA North America
• Greater Flexibility in benefits administration
matching individual needs and requirements
• Employee surveys
• “Life balance and diversity”
• Flexible holiday schedule
• Flextime(Choose their workdays)
• Condensed work-weeks, job sharing and
telecommunicating

11. Human Resource Management Practices
• Videoconferencing to avoid excessive
business travel
• Coordinate their schedules with their
spouses’ work hours
• Transferring employees between locations
• “Quiet rooms” for prayer and meditation
• “lactation rooms” for nursing mothers
• Child care facilities
• Entertaining rooms for visiting friends and
family members
• Discounts at IKEA’s onsite restaurants for
families

12. Human Resource Management Practices
• Full medical and dental insurance to
employees working 20 hours or more
per week
• Discounts for weight reduction and
smoking cessation services
• Maternity leave for 7 weeks with full pay
• 2 to 5 weeks of annual paid vacation
• 15% discount on IKEA merchandise
• “Coworker appreciation Day” 40%
discount on store purchases
• Credit Card with no interest for 90 days
• Join the company’s 401(k) policy (tax
saving fund)

13. Additional Benefits
• Tuition reimbursement for Graduate & Non-graduate courses
• Constant encouragement to pursue various courses
• IKEA paid 75% of the course fee upfront and the remaining 25%
after the course completed
• Special bonus of $1000 to employees who stayed with the
company for one year after completing the course
• Policy also benefited IKEA as it required skilled candidates for
future promotions
• Part timers were also eligible for benefits
• No minimum service conditions for employees to become eligible
for benefits

14. Impacts of positive HR
Practices
 Flexibility in all areas :
• Better work-life balance
• Enhanced trust in the company
• Greater productivity
 Benefits policy :
• Greater organizational commitment and job satisfaction
• Greater perceived organizational support – IKEA cared about
employees’ well being- onsite childcare facilities provided by IKEA
• Low attrition rate
• Greater employee engagement –open communication, enhanced
motivation and commitment

15. Employee Development
 Ongoing development of employees
• Extensive training and professional development program
• Sharpening skills and acquiring advanced knowledge
• Specialized training programs
 Mentoring
• “Partners for Growth”
• Prepare employees for greater responsibility, leadership needs
• Employees felt supported
• Helped them grow

16.  Paddle Your Own Canoe
• Taking responsibility of their own careers
• Discussed their career paths with their Manager’s
• Self – assessment tool
 I Want Your Job
• Train actively with person whose job they would
like to hold
• Pool of qualified candidates for IKEA’s future
growth
• Manager’s and sub-ordinates worked together
• Promotion related decisions were made easy

17.  Open IKEA
• New job openings update
• Job openings were posted on employee website and company intranet
• Advertising through catchy sticker’s, slogans
 Enterprise
• e- recruiting system
• Global tracking system
• Responsibility of hiring with the store manager’s

18.  Why Sayers
• Express ideas to improve the store
• Placed an advertisement on this practice
 Express Yourself
• Share complaints or concerns
with Spiers-Lopez directly
• Improved morale within IKEA
 IKEA Radio
 Company Intranet

19. Complaints against IKEA
• IKEA France allegedly spied on its
employees and customers
• IKEA U.S. – Workers complain of
eliminated raises, mandatory
overtime and racial discrimination
• IKEA slammed over anti-union
bullying in Turkey

20. WORK CULTURE

21. Diversity
• IKEA believes in an
environment where people of
different views, age,
nationality, gender and ethnic
background feel welcome
• Diverse workgroup often tend
to have better ideas because
of broader background and
experience

22. Creativity
• IKEA believes in a creative
work environment where people
can make mistakes and come out
with a transformational idea that
makes a great company and
leaves competitors trying to
catch up
• Only while sleeping one makes
no mistakes, mistakes are
privilege of the active person
who can start over and put
things straight

23. Family like work environment
At IKEA, we think of
ourselves as a family. Just as
one would look after their
parents, siblings or children,
our co-worker family is
encouraged to and excel at
supporting and taking care of
each other

24. Empowerment
• The company never gave
its employees detailed
instruction about their job
activities and behaviours
• It gave general instructions
on what they were
expected to achieve and
allowed them to choose
their own methods in
achieving that

25. Willingness to assume responsibility

26. Equality and Openness
• To emphasize equality, IKEA
called all its employees,
regardless of rank, ‘co-workers’
• It doesn’t matter what we do,
whether in an office or on the
sales floor
• Equality was important because
it created an informal
atmosphere at company and
promoted communication
between employees

27. Open Communication
• With a view to promote open
communication, IKEA adopted
a flat structure with no
hierarchical distinctions
• Managers and employees sat
together and shared the same
facilities
• They also dresses alike in
yellow shirts and blue trouser
and addressed each other by
first name

28. Leadership by example
• No method is more effective
than a good example
• Leaders at IKEA are expected
and encouraged to behave the
way they expect their co-
worker to behave
• It means pitching in when
there’s more than usual work
to be done, respecting others
around you and encouraging
the initiatives and
achievements of everyone
around you

29. Togetherness & Enthusiasm
• IKEA encourages mutual
respect between colleagues
and help each other during
difficult times
• IKEA values people who are
supportive, work well in
teams and are open with each
other in the way they talk
• The common denominator in
every job well done in
enthusiasm

30. Payoff
• IKEA involved substantial
costs
• But payoff outweighed the
costs due to low employee
turnover
• So this reduced the cost of
repeated hiring and training
cost
• IKEA understood the
importance of a committed
workforce