IKEA Strategies
IKEA is considered as the top company according to Fortunes (Center for Management Research 2). It creates convenient furniture facilities that are in high demand among the consumers. The main secret of the company lies in the fact that it is constantly introducing numerous changes to the production process. What is more important, IKEA managers want to improve the image of the company through presenting creative approaches and special programs for their employees. According to this “life balance and diversity” principle, the workers are allowed to spend more time on family and personal life. IKEA’s philosophy, thus, puts a significant emphasis on meeting its employees’ needs. When analyzing this strategy from the point of employ voice theory, there arise many points concerning the strengths and weaknesses of the human resources program (Tripoli 25).
The company’s strategies have a positive influence on the employees’ efficiency and productiveness. First, the company leaves spare time for family and children by providing all necessary facilities. That can help workers to feel more comfortable at the working place. Second, the company also provides the policy of open communication where managers and their subordinates can freely share opinions and express their ideas concerning this or that project. This equality principle considerably improves the company’s work and makes the employees more enthusiastic (Center for Management Research 7). According to Tripoli’s involvement system, such provide more opportunities and benefits for both the company and the workers. These programs are also known as voice programs that encourage such systems and provide more freedom for workers (Tripoli 26). Although the contemporary situation in the labor market, IKEA’s policy seems to be ideal; still it has the right to existence. This strategy is also called an “open-door” policy, which seems to be quite accessible (Tripoli 30). Third, IKEA provides the principle of cultural diversity that cultivates the workers’ desire to be more creative in the decision-making process.
The analysis of IKEA’s case seems to be promising and rather beneficial for the majority of company members. Still, there are some misconceptions and shortcomings of this involvement system in terms of company goals and effectiveness. In particular, the life balance principle presents a special challenge for managers and employees if considering it in a larger context. By paying more attention to workers’ needs, the company neglects some other more important goals. According to Tripoli’s concept of Employ Voice which determines the goals of a non-union company, the veritable motive of IKEA organization consists in “union avoidance” (Tripoli 27). This program is also called low-level participation providing “the advantage of management by improving productivity, and…disadvantage…by deflecting worker desires for involvement in more strategic decisions” (Tripoli 26). This means that managers pay more attention to the analysis of personal problems rather than to the analysis of organization and production issues. Another disadvantage of IKEA policy lies in its excessive attention to openness, as it might be sometimes harmful rather than effective, which has been proved in practice. Finally, IKEA’s focus on meeting needs equally cannot be beneficial for employees, as there are different requirements for different employees.
Improvement of Management Policy
After a thorough consideration of all advantages and disadvantages mentioned earlier, it is necessary to provide several effective suggestions on the improvement of this line management policy. The above discussions provoke the necessity to introduce certain elements of a vertical organizational system that will be more effective in deciding the problems connected with the production and marketing position of the company. Instead, the ombudsmen can remain at the appropriate levels of responsibilities thus putting forward some compromises and beneficial schemes according to the position of each employee. The hierarchical principle is complicated though, but it insets some systemic aspects to the IKEA work. Then, it is still to establish some restrains in terms of the open-door policy as sometimes this principle may negatively affect the company’s respectable image thus cultivating more negligence to company’s discipline. This suggestion will considerably improve the company’s organizational system and encourage the production process. In other words, there should be a reasonable balance between employees’ needs and production facilitation. Finally, the certain measure should be taken in terms of cultural diversity as an excessive accent on personal and ethnic issues considerably divert the company’s attention from the veritable goals in production management.
Conclusion
Concluding, it is necessary to mention that despite all the disadvantages of the involvement system, IKEA has remained one of the most profitable companies in the world. The main reason for their success lies in a continuous introduction of changes and amendments and careful attention to the work of the Human Resources department. However, the innovative program applied by the company’s director still has some negative undertones if consider in a more general context. In particular, the program fails to find the equilibrium between the strategies for employees and productivity improvement. In that regard, the suggestions proposed above considerably contribute to the development and advancement of IKEA activities. Moreover, it also fosters the company’s penetration into the international market.
Works Cited
Center for Managerial Research. IKEA’s Innovative Human Resource Management Practices and Work Culture. UK and USA: ICFAI Center for Management Research, 2005.
Tripoli, Angela. “Employee’s Voice” and Involvement in Non-Union Comp”nies” Human Resource Strategies. Dublin: Oak Tree Press, 1998.