IKEA’S INNOVATIVE HRM

PRACTICES AND WORK

CULTURE
Prepared by
Eduardo Garcés,
Fatima Khalilova,
Hassan Ziyat,
Alla Titievskaya,
M. Fernanda Bermudez

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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
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 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
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IMPORTANT CULTURAL ELEMENTS
THAT PROMOTE INNOVATION

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CULTURE THAT • High level of empowerment
• Respect for employee’s beliefs and
PROMOTED
choices
DIVERSITY AND • Successful HR practices to manage
CREATIVIY diversity
• Enhancement of employee creativity
• Strong and Open Relationships among
employees
• Enthusiasm and constant will to
renew
CHANGE AND • Equality and excellent communication
among all co-workers
INNOVATION • Flat structure
• Free expression of opinion and ideas

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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!
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