COURSE NAME: INTERNATIONAL HUMAN RESOURCES

COURSE CODE: BUSM 4125

ASSESSMENT 2: GROUP REPORT
GROUP MEMBERS:
THNG YI LIN EILEEN
S3532476
JERIC LEE WEN HAO
S3531609
NG BOON YAO
S3532069
FONG JIA JUN
S3503871
CHANG YONG QUAN
S3473893
ASSESSMENT DUE DATE:
TOTAL WORD COUNT:
A. Firstly, this assessment requires you to analyse the HR strategy of IKEA in relation to the allocated
country (INDIA): What are the main elements (parties, laws, processes) of the employee relations
systems of your allocated country (INDIA)?
B. Arising from these elements, what challenges exist for IKEA in seeking to have a standard
approach to HRM adopted internationally? To answer this consider: What elements are compatible
with the standard approach to HRM. What elements work against the adoption of standardised
methods of HRM in the case of IKEA.
C. For your allocated country (INDIA) and one other country (US), compare and contrast the
similarities and differences between the Human Resource strategies and processes adopted by IKEA.
If your allocated country is Western then you will need to select an Asian country for this comparison
and if your allocated country is Singapore then select a Western country. To compare this consider:
a. What does your comparison reveal about the influence of the local country culture on these
strategies and processes?
b. What are the lessons learnt from this comparison for attempts by IKEA to develop a workable
international model of HR for specific national country settings?

Title page
Executive Summary
Table of Contents
Introduction
Description of the sections and contents of the report
Introductory sentence to gain reader interest
Body of the Report (Headings may vary according to your case)
Sub-heading describing Issues and Recommendations to be included
Conclusion

Reference List
Appendices

Minimum wages

Highly decentralised but with a strong corporate culture

IKEA has a very strongly centralised corporate culture and product range, despite
its very decentralised approach to store management and HRM.
One of the most significant and fundamental differences between Indian
employment law and the law in the U.S. is that Indian employment relationships
are essentially contractual and the concept of employment at will is generally
not applied in Indian legislation and its case law. While written employment
contracts between an employer and an employee are generally not specifically
required, the employment relationship will nevertheless be considered
contractual in nature.
In the United States, in almost every state (Montana is the exception), an
employee is considered to be an at-will employee unless there is proof otherwise,
such as an employment contract - See more at:
http://hrdailyadvisor.blr.com/2014/05/01/what-does-at-will-employment-reallymean/#sthash.8kNSdBRr.dpuf

2. For your allocated country and one other country, compare and contrast the
similarities and differences between the Human Resource strategies and
processes adopted by IKEA. If your allocated country is Western then you will
need to select an Asian country for this comparison and if your allocated country
is Singapore then select a Western country. To compare this consider:
United State opened at 1985

Ikea internationalisation strategy highly decentralized but with a strong

corporate culture
In IKEA, the aim is to focus on similarities between locations and to provide
general support and guidelines from the centre. This is perceived locally not as
an imposition of policies but as helpful guidelines for coordination with business
strategy. The case of IKEA shows very clearly how centralised policies can be
used as a means of supporting the corporate culture. IKEA has a very strongly
centralised corporate culture and product range, despite its very decentralised
approach to store management and HRM. The IKEA HR Idea provides a central
philosophy underlying all HRM activities, rather than prescribing particular HRM
activities which stores must undertake.

In IKEA, it is the philosophy underlying the practices which is the same in all
locations, providing a common platform, however actual practices vary
considerable based on numerous factors, such as the age of a store, how active
the HR manager is, how advanced HRM is, trade union influence, employment
legislation, and local culture.
The more decentralised companies then have one or two other areas of
responsibility but not the full range of HRM policies. For example, corporate HR in
ABB and EDF also focus on health and safety, and in IKEA it has some
responsibilities for ensuring basic guidelines are in place for compensation and
benefits, induction, performance evaluation and mobility.

2a.What does your comparison reveal about the influence of the local
country culture on these strategies and
processes?
2b.What are the lessons learnt from this comparison for attempts by
IKEA to develop a workable international model of HR for specific national
country settings?

Some general guidelines for case analysis:

1. Identify the practical and theoretical issues raised by the case.
USA

IKEA's popularity as an employer was noteworthy primarily because of the fact that the retail sector,
especially in the United States, was not known for being employee-friendly. Many large retailers paid
low salaries and offered negligible benefits while expecting employees to work long hours.

INDIA
One of the main reasons why India is so attractive for foreign investors is its human
resources, which are cheap and highly qualified. The use of these resources, however,
is not easy.
In particular, three major challenges in the area of HRM are named: personnel
recruitment, personnel development and personnel retention. Foreign companies
compete with other foreign companies as well as with Indian companies for the most
qualified people who are often offered a number of jobs by different employers.

2. Critically, identify how theories, concepts and models assist in resolving the
issues/questions presented.
3. To what extent does your solution/suggestion represent sustainable practice i.e. to
what degree does the solution reinforce corporate goals and individual commitment?
It is expected that you will use at least 6 academic references. Websites, such as
Wikipedia, will not be accepted, other than for providing general details and these will
not be counted in the minimum references required.
All submissions must be through MyRMIT. No hard copies submissions are allowed for
this assessment. Submission exceed the word limit will be penalised at the rate of 1
mark lost per 100 words or part thereof in excess of the word limit. The allowed score on
Turnitin is no more than 10% similarities.

http://www.slideshare.net/vyasvemuri/ikea-hr-practices
http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?
article=1478&context=cahrswp
http://www.slideshare.net/shrmindia/hr-knowledge-human-resource-practices-inindia-shrm-india
https://books.google.com.sg/books?
id=F84mOCb6AM8C&pg=PA33&lpg=PA33&dq=ikea+human+resource+cultural
+differences+in+india+and+USA&source=bl&ots=N2q0z7lbtF&sig=MIFrCj5KM7
CexG_NTKbYAlhoUgI&hl=en&sa=X&ved=0ahUKEwjP9fm72rPKAhXWj44KHbcFDy

EQ6AEIVjAJ#v=onepage&q=ikea%20human%20resource%20cultural
%20differences%20in%20india%20and%20USA&f=false
http://corporatecomplianceinsights.com/labor-and-employment-challenges-forcompanies-doing-business-in-india/
http://hrdailyadvisor.blr.com/2014/05/01/what-does-at-will-employment-reallymean/
http://www.business-standard.com/article/companies/ikea-to-open-25-stores-inindia-115100800034_1.html
http://www.slideshare.net/FatimaArshad/mb2-2nd-semester-group-no-6
http://writepass.com/journal/2012/12/human-resources-management-hrm-hasevolved-over-the-decades-to-become-a-strategic-integrated-and-coherentapproach-to-the-employment-development-and-well-being-off-the-peopleworking-in-an-organis/
http://www.slideshare.net/vyasvemuri/ikea-hr-practices
http://www.slideshare.net/pixna/example-of-hrm-strategy-ikea
http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and
%20Organization%20Behavior/IKEA%20Innovative%20Human%20Resource
%20Management%20Practices%20and%20Work%20Culture.htm
http://www.laser.uni-erlangen.de/papers/paper/37.pdf
https://anuragjbp.wordpress.com/2011/08/06/indian-retail-market-an-overview/
http://www.economywatch.com/features/Indias-Restrictive-Labor-Laws-ChallengeInvestors.11-12-14.html
http://www.bloomberg.com/news/articles/2014-08-13/watch-where-you-spit-howindia-labor-laws-strangle-growth-jobs