Abstract

IKEA was one of the largest furniture manufacturers and retailers in the world, with operations in 32 countries (in early 2005). The company was well known for its stylish and innovative designs. It was the pioneer of furniture that could be dismantled and packed flat, to allow ease of transportation. IKEA’s main strength was its committed workforce, which was often the source of the company’s innovative concepts. IKEA adopted a positive approach toward human resource management. In the late 1990s and early 2000s, the company implemented several initiatives that promoted ‘life balance’ and diversity. The case discusses the innovative human resource management practices adopted by IKEA and describes its work culture. Initiatives related to flexible work design, comprehensive benefits, quality of work life, and employee training and development are outlined. The case also discusses the prominent elements of IKEA’s culture, such as diversity, openness, equality, cost consciousness, and competitiveness.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the human resource manage-ment practices and work culture of a major furniture manufacturer and retailer
• Appreciate the importance of positive human resource management practices in employee retention
• The need for employee develop-ment and the practices adopted by a major multinational company toward this end
• and The effect of culture on employee morale and the relationship between culture and innovation.

Keywords

Human Resource Management Work Culture Ingvar Kamprad Franchisee Model Swedish Companies, Employee Retention, Life Balance And Diversity Benefits, Policy Coworker Appreciation Day 401(K), Policy Training And Development, Paddle Your Own Canoe, IKEA Values Diversity, Creativity Advertising