Санкт-Петербургский Государственный Университет
Высшая школа Менеджмента

International human resource management in IKEA
Final Group Project

2013
Contents

Description of the company 2
IHRM strategy 5
IHRM instruments 6 Recruitment 6 Selection 7 Expatriate issues 8 Development 9 Performance appraisal 9 Trainings 10 Compensation system 11
Special points in IKEA’s IHRM Practice 13
Problems and recommendations 14 SWOT-analysis 14 Problems 15 Recommendations 16

Description of the company
IKEA is a privately held, international company that designs and sells ready-to-assemble furniture such as beds, chairs, desks, appliances and home accessories. The company is the world's largest furniture retailer. Founded in Sweden in 1943 by …show more content…

The international orientation of HRM in IKEA could have been affected by the traditions of the country of origin – Sweden, as well as by the traditions of the country where IKEA is currently headquartered – Netherlands. Anyway, all over the world IKEA applies the same HR practices (those developed by parent company in its HQ). Thus, we can assert that international orientation of HRM in IKEA is ethnocentrism. No wonder that as a rule key positions in company’s subsidiaries worldwide (including store managers) are occupied by expatriates. This approach helps IKEA to convey its strategic goals via these expatriates to local employees faster and more accurately in order to achieve even greater understanding of company’s objectives.
On the whole, managing over hundred thousand employees over the world requires significant efforts. So far IKEA’s IHRM strategy was implemented quite successfully, providing employees with comfortable workplaces and helping the company itself to achieve its strategic goals. IKEA states: ‘We give down-to-earth, straightforward people the opportunity to grow as individuals and professionals. Together we work to create a better everyday life for ourselves and our customers’. Such integrity of the company, its employees and customers allows IKEA to stay the most successful enterprise in the industry.
IHRM instruments
The implementation of company's IHRM strategy is a great challenge