IKEA BUSINESS MODEL: “IKEA” HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL CHANGES in terms of diffrent location

1. BUSINESS MODEL OF “IKEA” HUMAN RESOURCE
MANAGEMENT AND ORGANIZATIONAL CHANGES in
terms of location
2018/01/10
1
Group 3:
楊安迪 科管一 7106026052
張湘穎 科管一 7106026134
鄭淑珊 企管一 7106023002

2. Introduction
Training and Development Program
Recruitment and Selecting Program
Development issue
IKEA in Germany, France, Taiwan
Conclusion and Suggestion
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3. Introduction
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4. IKEA COMPANY
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Swedish company, founded In 1943
Now designs and sells ready to assemble furniture
IKEA’s mission is to provide a better everyday life
At the beginning, used to sell stationary items
In 1947, started selling innovative furniture
Ingvar Kamprad

5. 01
The team at IKEA share the same principle
that many should be able to create the home
they want and dream of.
02
To give down-to-earth, straight-forward people
the possibility to grow, both as individuals and
in their professional roles, so that together we
are strongly committed to creating a better
everyday life for ourselves and our customers.

6. Training and Development
Program
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7.  IKEA encouraged its employees to
learn and seek new challenges and
also, gave bonus for employees.
 Training start from day one on job
training and involves rotation in
various area.
Ikea Training Program

8.  To train and prepare junior for
demand of better position in future
 To meet the future demand of
leaders within IKEA branch
To train actively with the
person whose job they
would like to hold in the
future
Given chance to their
employee to get
opportunity to grow inside
company
“Partners and
Growth” Program
Future growth and
expansion
Conducted a self
assesment of
their capabilities
Career Development

9. Recruitment and Selecting
Program
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10. 1. Go through a list
of open positions.
2. Apply via a
button directly in
an
advertisement.
If there is no open
position interesting
for you but you
want to work in
IKEA, send us
your CV.
OPTION 1
OPTION 2
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11. 1. Assessment Center
• 10 applicants participating
• Group task and individual task
2. Second Round
• a personal interview
with a future
manager
• fill in a personal test
as a part of the
interview
3. Personal Interview
• personal interview
between the most
suitable candidate
and the boss of your
future manager
• candidate's
motivation to work in
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12. The major part of
the interview will
be about you and
your future job.
We recommend you
to find out basic
information about
IKEA business.
The whole process
runs in a funny
and friendly
atmosphere.
Congratulations, you have become one of us! 2018/01/10 12

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Build a long-term
relationship with it’s
employees
Tend to privilege
internal recruitment
Focus on values and
cultural fit rather than
skills and experience
(Value-driven
recruitment system)
Additional
assessment for
leadership
positions

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IKEA pays its employees an average of $15.65 an hour.
Hourly pay at IKEA ranges from an average of $11.47
to $24.56 an hour.
IKEA employees with the job title Computer / Network
Support Technician make the most with an average
hourly rate of $24.17
Employees with the title Cashier make the least with
an average hourly rate of $11.52. (based on PayScale
salary survey)

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17. 2018/01/10 17

18.  Our Values
 Working at IKEA
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19. Development Issue
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20.  Employees point of view (cons)
 “coming as a part time job, you will not choose to do a full
time job of work more hour”.
 “can be hard to get full-time work” and other said “very hard
to move into management position since there is very little
turnover in those position”.
The actual situation in the work place have another
challenges for the employees.
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21. Ikea in Germany, France,
Taiwan
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22. IKEA Organization Change in Germany
Swedish motto:
“ take your own risk”
Which is not suitable in
germans.
Swedes are more result
oriented and treat every
problem as a challenges that
should be met.
Lack of formality that also not
usual in German.
Characteristic of German employees
in IKEA organization are very
disciplined and precise.
Do exactly what the boss asks
them to do.
Swedish Germany
Germans are more
comfortable with formal
procedure, they like
procedures and forms.
This situation made IKEA
changes their current
behavior in their own country.
They use internet as a technology to maintain, handle, controling, and checking everything in organization.

23. IKEA Organization Change in France
Informaly rule:
1. They can do what ever they
wanted.
2. When the supervisor or the
boss ask to do a task the
employees did not take it
seriously.
The human resource practices in
France complicated because of
multiple administrative regulation
makes hard to get into market.
French judge informality as a
sign of weakness.
Swedish France
French same as Germany that
have strict to the rules.
Working in IKEA is not for
everyone. You felt like enter
another world. They felt like do
not behave like normal french
company.
The new business model using technology to make formal communication platform and spell out in fact IKEA’s
benefits to other competitor to retain and motivates employees. Also more formal training program are being
developed because in france, learning by doing is not preceived and credible, it used off-sight programs.

24. IKEA staff in Taiwan is also the most socially oriented.
IKEA employee in Taiwan are only interested in taking part in
decisions that directly affect their benefits.
Ex: workplace safety, health insurance and wage levels.
The most effective training programs used in Taiwan is
mentoring program (the characteristic of good communication
and makes a better team work inside the organization and
makes the communication clearly understand).
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25. Conclusion and Suggestion
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26.  From this paper we can state that business model
affected the role of human resource management
process in many sector of organization and along the
country.
 By looking the IKEA Company in Germany and
France as examples the importance of human
resource management system affect the practices in
development, training, recruiting and selection,
sector.
 The role of HRM make them more flexible to keep
their organization stand in different country with
many different kind of problem.
 However the development process of IKEA
organization still has difficulties for employees to
improve their career inside organization, the future
research and improvement are needed to maximize to
facilitate employee through their career development
inside organization.
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27. “can be hard to get full-time work” and other said “very hard to move
into management position since there is very little turnover in those
position”.
IKEA should develop a new business model
 One of other way that IKEA can do is add more unit of
worker in some department
 Make a win win solution
Add more unit to a department who need reinforcement so
decrease a current employees by giving an opportunity to
other to get promotion into higher postion or new employee
that want to get a full-time job.
 Adjust with each country’s culture
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