IKEA’S INNOVATIVE HRM PRACTICES AND WORK

CULTURE

Prepared byEduardo Garcés,

Fatima Khalilova, Hassan Ziyat,

Alla Titievskaya, M. Fernanda Bermudez

IMM 2010/11

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IKEA’S BACKGROUND

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• 1920’s: At the age of five Ingvar Kamprad starts selling matches to his nearby neighbors and by the time he is seven, he starts selling further afield, using his bicycle

• 1940s-1950s: Ingvar Kamprad is entrepreneurial in developing IKEA into a furniture retailer.

• 1960s-1970s:The IKEA concept starts to take shape. New IKEA stores open and hero products are developed such as POÄNG and BILLY bookcase.

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• 1980s:IKEA expands dramatically into new markets such as USA, Italy, France and the UK. IKEA begins to take the form of today's modern IKEA

• 1990s: IKEA grows even more. Children's IKEA is introduced and the focus is on home furnishing solutions to meet the needs of families with children.

• 2000s:IKEA expands into even more markets such as Japan and Russia. Successes of several partnerships regarding social and environmental projects.

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IMPORTANT ELEMENTS OF IKEA’S HRM POLICY AND THEIR EFFECT ON

EMPLOYEE MORAL

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KEY ELEMENTS OF HR POLICY

• Flexibility (time, holidays, jobs..) and welfare • Focus on employee development (be creative

and independent): – Take care of the employees, their needs and

requirements;– Promote employee empowerment;– Generous benefits to employees (insurance,

discounts, paid vacation, parental benefits, tuition reimbursement..).

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THE EFFECT ON EMPLOYEE MORALE

• Employees are more motivated to work within a creative informal atmosphere

• Increasing of productivity• Employees are more committed• Maintaining good life balance• Feeling rewarded

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IKEA’S EMPLOYEE DEVELOPMENT PROGRAMS AND THEIR ADVANTAGES

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• Extensive training and professional development to promote advancement

• Specific Training programs in – Diversity– Health and safety– Environmental consciousness

• Mentoring – important part of employees’ development program– Program “Partners for Growth”

• Program “Paddle your own Canoe”– Self-assessment tool

• Program “I want your job”– Employee development program for the desired position

ADVANTAGES• Mentoring program:

– Teaming junior managers with seniors from different locations of IKEA– Preparation of future senior managers– Meeting leadership needs in later needs

• Program “Paddle your own Canoe”– Giving employees responsibility for their careers and gain required knowledge– Discussion manager-employee on career paths and necessary skills for future

development• Program “I want your job”

– Ability of employees to train actively with the person whose job they would like to hold in the future

• Employees were given a chance to advance within the company• T&D programs were two-way activities – managers and subordinates worked

together• Various tools were provided• Employees felt support and received all the help needed for further development• Development programs were designed to provide a ready pool of qualified

candidates IMM 2010/11

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IMPORTANT CULTURAL ELEMENTS THAT PROMOTE INNOVATION

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CULTURE THAT PROMOTED

DIVERSITY AND CREATIVIY

• High level of empowerment• Respect for employee’s beliefs and

choices• Successful HR practices to manage

diversity• Enhancement of employee creativity• Strong and Open Relationships among

employees• Enthusiasm and constant will to renew• Equality and excellent communication

among all co-workers• Flat structure• Free expression of opinion and ideas

CHANGE AND INNOVATION

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REASONS FOR IKEA’S INNOVATIVENESS

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• IKEA is still leader in low prices offering kit built furniture, their experience is another factor that has also contributed for them to stay on top.

BUT Due to a competitive market that arises:– THEY HAVE HAD TO FIND OTHER MEANS TO BE MORE AND

MORE COMPETITIVE:

–INOVATIVENESS and creation of new products!

• Open IKEA: Initiative designed to update employees on new job openings within IKEA. – Catchy stickers and slogans where people would see them

• Refreshing oportunities (soft drink machines)• Find a job that really reflects your interests (mirror)

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• ENTERPRISE: global recruitment online. – Involved the store managers, gave them responsibilities: high level

of empowerment. – People gave input– Employees question the ideas of managers

• Why sayers: employees express their ideas to improve the stores– Ideas become standard practices

• Express yourself: employees express concerns• Big investment on employee satisfaction

– Initiatives improving quality of work life– Quiet rooms– Lactation rooms, and onsite childcare – Discounts for restaurants

• Resource rooms for employees, health rooms and improvement tips.

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Thank you!