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it about the HR policies of IKEA
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IKEAONE OF THE BEST PLACES TO WORK
A Presentation on IKEA’S Innovative HR Policies & Work Culture.
Presented By,Div A - Group 8
Geetika ChawlaHarshvardhan Chokhani
Johnson ChackoNikunj Passi
Pankaj Rai
So what’s IKEA?? (Ingvar Kamprad Elmtaryd Agunnaryd)
• 1943: IKEA was founded by Ingvar Kamprad, sold watches, jewellery, furniture etc.
• 1951 : Specialized in low priced innovative furniture
• 1955 : Introduced its most successful innovation - Furniture that could be DISMANTLED
• In 2005, the company employed over 84000 people in 205 stores across 32 countries
IKEA – The Best Employer??2003: IKEA’s Attrition Rate drops to 35% vis a vis Industry’s 60%
2004: IKEA in the list of “100 Best Companies for Working Mother” ----- Working Mother Magazine
2005: IKEA in the list of “100 Best Companies to Work For” ----- Fortune Magazine
#1 IKEA’s HR Policies
BOOSTED
Employee Morale
How did IKEA get there
Creating Better Everyday Life for People
• Support ‘Life Balance & Diversity’
• Flexible Working Hours and Holidays
#1 IKEA’s HR Policies BOOSTED Employee Morale
• Parental Benefits
• Annual ‘Employee Appreciation Day’
• Tuition Reimbursement for Graduate & Undergraduate Programs
#1 IKEA’s HR Policies BOOSTED Employee Morale
#2 IKEA’s Employee Development Programs
were advantageous to
Employees and IKEA both
How did IKEA get there
#2 IKEA’s Employee Development Programs
• Training Programs in health, safety and environmental consciousness etc.
• Mentoring Initiatives like ‘Partners for Growth’
• Self Assessment Tools like ‘Paddle your own Canoe’
• Special training programs like ‘I want your Job’
#2 IKEA’s Employee Development Programs
• Global application Tracking System ‘Enterprise’
• Encouraging New Ideas, Encouraged ‘Why Sayers’
• Encouraged concerns sharing through programs like ‘Express yourself’
#3 IKEA’s Work Culture
fostered
INNOVATION
How did IKEA get there
#3 IKEA’s Work Culture Fostered Innovation
• Big Family Culture• Promoted Diversity
• Openness and Equality – All employees addressed as ‘Co workers’
• Flat structure & Uniform Dress Code for All
#3 IKEA’s Work Culture Fostered Innovation
• Cost Consciousness
• No Detailed Instruction to Employees
O Openness to Change
• Scandinavian Names to Products
THE PAYOFF
• Pay off far outweighed the costs• Employee turnover 76% in 2001, to 56% in 2002 and 35 %
in 2003• Company’s turnover was almost half the average industry
rate• Profit margin was almost double of its competitors
–BIGGEST COMPETITIVE ADVANTAGE - IKEA understood importance of a committed work force and made the effort to retain people.