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  1. 1. About The Company Has branches in around 41 countriesA Sweden based retail chainwhich deals in furniture and FORTUNE’s “100 Best house decor items Companies to Work For” list (three consecutive years)Working Mother magazine’s IKEAannual list of the “100 Best Training magazine’s annual Companies for Working “Top 100” ranking ofMothers” (four consecutive companies that excel at years) human capital development (four consecutive years) Ranked 20th in The World’s Most Attractive Employers 2011 in the Universal Awards, an employer branding event
  2. 2. IKEA’S HR Strategy1. IKEA targets job candidates who love the brand2. IKEA utilizes resources it already has3. It has effective retention strategy4. The recruiting strategy aligns with IKEAS’s brand image5. By making recruiting fun
  3. 3. HR strategy that IKEA can implement in INDIA Fill all senior management positions with local nationals to ensuremaximum adaptation to local conditions. Identify managers irrespective of their nationality for variousinternational assignments to ensure that best practices are identified andreplicated in all the units of the organization. Companies can identify and develop local talent through in-houseManagement Development Programs (MDP). In doing business with India, IKEA have to make attention with theculture and the communication.
  4. 4. Recruitment and SelectionValue Driven IKEA is a value driven company which espouses simplicity, teamwork, communicative forthrightness and urgency Core values of IKEA are cost consciousness, dynamism, flexibility and employee empowerment IKEA designs advertising campaigns which emphasizes these values IKEA is also transparent in communicating these essential values via its “Jobs at IKEA” webpage“Assemble your future” Recruitment of around 300 people for one of IKEA’s Australia units They put in Ad “Assemble your future” leaflets in the furniture boxes that they sold A very cost effective campaign, which directly harnessed its customer base This campaign generated around ~5000 responses and worked out successfully for IKEA
  5. 5. Increasing Employee’s KSATraining Co-workers who have mastered their current job are encouraged to seek new challenges Job enlargement/enrichment, changing the Job scope/location Annual development talk to discuss and outline career paths On-the-job training complemented by traditional classroom courses A wide range of web-based training activities for all aspects of IKEA operationsSelection Emphasis on value-fit as its selection criteria IKEA provides a co-worker as a mentor for new co-worker for some timeCompensation IKEA has developed global, mandatory guidelines for compensation and benefits Each country must offer the same benefit structure for all co-workers in the country Benefits are to be based on core IKEA values as well as local laws and market conditions
  6. 6. Motivation enhancing HRM practicesInternal Promotion One year development adventure programme that any co-worker with potential can apply for in the beginning of their career The participants travel to two different countries for six months each to work in different fields to what they are used to These Co-workers are absorbed to take leadership responsibility, forming the pool of highly skilled IKEA managers of the futureIncentive System Line management takes a direct role in the design and determination of reward policy in IKEA Emphasis on designing reward systems that best fits the local contextEncouraging Diversity in the workplace About 40% of the Co-Workers are women with a great mix of nationalities IKEA’s purchasing and retail operations in 41 different countries are led by country managers of 14 different nationalities
  7. 7. Empowerment enhancing HRM practicesGrievance Procedure “VOICE” : IKEA uses a company-wide survey called “VOICE” to monitor how co- workers view various aspects of their employment at IKEA The “IKEA leadership Index” quantifies how co-workers view their managersFlexi Time One of the best work practices espoused at IKEA is flexible timing as per co-workers needKeeping Co-workers Informed IKEA Intranet is complemented by a variety of different channels such as regular meetings, easily accessible notice boards, newsletters and closed-circuit radio The global co-worker Magazine Readme which is distributed to all co-workers is translated into 19 languages IKEA has web-enabled services on the Internet to better reach co-workers with limited computer access at work and better access outside work Supporting Work-Life Balance Co-workers of different ages are at different stages of their lives and are delegated different activities as per their convenience
  8. 8. IWAY StandardIt is a code of conduct that defines the guiding principles that governs the organisationPrevention of corruption The company has established the IKEA Corruption Prevention Policy and The IKEA Rules on Prevention of Corruption for its co-workers and external business partnersDialogue with Unions IKEA supports each co-worker’s right to freedom of association and does not express any preference within the institutional and recognized co-worker associations IKEA respect the rights of its co-workers to join, form or not to join a co-worker associationWorkers’ accident insurances An accident insurance covering medical treatment for work related accidents is available to all workersSafe and Healthy Work Environment All co-workers within retail and distribution undergo safety training before starting to work at IKEA
  9. 9. IKEA’s innovative human resource management practices has helped build a strongand nurturing culture that promotes diversity and creativityIn an industry characterized by high turnover, their employee friendly policyhas made IKEA a preferred employer in the retail sector Working in line with strategy, its HRM practices has helped in sustaining IKEA’s growth In many countries, IKEA is the “Employer of Choice” and globally IKEA is listed as one of the top 50 most attractive employers in 2010 IKEA has the distinction of being in FORTUNE’s “100 Best Companies to Work For” list for three consecutive years
  10. 10. THANK YOUPresented BY:  Dering Naben  Firoz Anjum  Anirban Purkayastha  Ishita Suman Aditi Thakur Gurjant Singh Sandhu
  11. 11. Any Feedback !!!