Management Theories Practised in Inter Ikea Systems Holding B

Running head: MANAGEMENT THEORIES PRACTISED IN INTER IKEA SYSTEMS
HOLDINGS B.V.
MANAGEMENT THEORIES PRACTISED IN INTER IKEA SYSTEMS HOLDING B.V.
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HOLDINGS B.V.
MANAGEMENT PRACTICES EMPLOYED BY INTER IKEA SYSTEMS HOLDING B.V.

Inter IKEA Systems Holding B.V. is an international company that was started in 1983 in the
Netherlands. The company was initially started in order to actualize the IKEA business model in
which currently is famously known as the IKEA concept, the business model embraced by this
company has led it to develop to international status. The establishment has franchises in all the
continents of the globe, IKEA Systems Holding is under the umbrella of Inter IKEA Group, the
Franchise division has companies distributed around the globe doing business selling IKEA’s
products. This study mainly focusses on the management styles or theories that have been put
to practice in this international company to assist in the management of organizational activities
in a bid to achieve the set organizational goals. Based on extensive and fully comprehensive
observation of the management systems the organization, we were able to conclude that the
firm uses the Systems Theory of management.
Systems Theory of management recognizes the effect that a given management system has on
workers and how employees of a given organization can influence the system. The theory
states that a system is made up of several parts which all work together in harmony to achieve a
goal. The theory helps managers be able to analyze and examine events in the organization.
The theory helps managers to coordinate programs to work as a collective unit for the overall
set goals of the organization through integration of different departments to work hand in hand.
The organization specializes in the production and distribution of furniture products all over the
world, through franchising of the business brand the company has grown to global standards,
the management definitely has to watch out for standardization of products produced by the
franchises, which call for a need of a proper management system that will keep production in
check. The objectivity of using systems theory is the flexibility of the management system in a
way that the management of the franchises are able to control and manipulate the production
trends in the industries. The systems theory of management fully suits organizations like IKEA
because of the high level of operations in the organization.
The core values of IKEA is what has been keeping the organization running and expanding its
distributions over the years. The IKEA culture is one that can be described uniquely as tough to
describe but also very easy to understand. The culture is one of enthusiasm, will power and
best of them all is togetherness. All these values emanate from the roots of the company in
southern Sweden and has always been inspired with the founder’s strong beliefs of
togetherness, Ingvar Kampard. The working spirit in the company is to create a better life for
HOLDINGS B.V.
everyone out in the world. This belief in changing the world and making it a better place has
made the workers and co-workers of fully dedicated to their roles and very stubborn at the same
time. This alone pushes the management into maintain high level of management and business
leadership styles, the management have to stand up for what the organization beliefs are.
IKEA’s workers and the management have the belief that they can help many people create
beautiful homes and have the dreams actualized. The strong conviction of not wanting to let
down their clients makes the management, workers and co-workers work from the heart in
actualizing this need, and this actually makes a difference.
As IKEA say it, values cannot be invented, they just comes from one deep inside the heart.
Virtues such as hard work, tough challenges, common sense, their deep Swedish roots and the
little resources that were available actually helped IKEA grow to levels of world-class
businesses. The management takes the IKEA concept successful, this helps them work in line
with organization planned goals, which is eventually ends in delving into management
techniques that will propel the organization into an even greater success. The values of IKEA of
hard work helps to keep people on toes and the management always ahead of the flock, this
helps in bringing the organization members together in harmony and also helps the organization
open business anywhere in the world. According to the founder, “maintaining a strong IKEA
culture is one of the most crucial factors behind the continued success of the IKEA concept”
Ingvar Kampard.
IKEA has franchises all over the world, the firm has clients and workers of diverse backgrounds
and diverse cultures, this kind of exposure and interaction with people of races, ethnic
backgrounds and cultures makes the organization a cosmopolitan. The management of the
organization has to be sensitive in handling these people, the increase in diversity calls for
proper ways of interacting and cooperation in order to develop a hardworking workforce. The
organization has managed to bring these people together through development of business ties
that creates an ample working environment in different regions, this has been made possible by
appointing of managing heads who are from these ethnic regions. The strategy has worked in
developing franchises in different parts of the globe, this impacts on increased regional sales
and the overall increase in the growth of the organization.
The working environment in the organization and in all of its franchises is tuned to make each
and every worker perform their best in their areas of specialization in a bid to create and
HOLDINGS B.V.
produce high quality standard of products. The employees report to their management heads
who report to their regional managers. Regional managers report back to the main IKEA Group
overall manager. Communication pathways are well defined and information dissipation is done
efficiently, this impacts on timely responses to any requests made to all franchises. Good
communication and ample working environment has contributed positively in making IKEA a
great success in the furniture industry.
IKEA Systems Group is a well-organized international company, the organizational structure of

the firm is designed to help the organization to accomplish its work. The organizational structure
of the Group is done in a way that the main management end is on the Group’s main
headquarters in Sweden, all the franchises in the world all like up to the mother company. The
organization links up all its franchises and they are divided into regional divisions. These
divisions consist of different countries where the organization has franchises in, the main
regions in the organization are: The Americas, Africa, Europe, Asia and Australia, within these
continents we have countries that have franchises in, all the franchises within the regional
divisions all report to the regional headquarters. The regional manager passes directives and
new information to the country managers who head different franchises. This structure is very
useful in the sense that there are divisions that are exclusive and they never get to
communicate directly to the mother company, this makes communications organized and well
defined.
The regional county specific franchises have managers handling operations of their franchise,
the franchises have their own organizational structure. The organizations work is divided into
specific jobs, this employs the use of division of labor. Each and every worker handles their
given share of work that they preside over. Groups of specialized workers are all placed in
departments, these departments consist of individuals who work on the same filed.
Departmentalization is important as it helps in easy management of many employees in the
organization. The other feature of the organizational structure is departmental heads are
appointed, their main responsibility is to direct department members on the responsibilities and
task that thy are supposed to handle, this also contributes to the fast and efficient ways of
passing information to workers and co-workers. The organizations have divided employees into
the following departmental groupings; product department, accounting team,
customer/marketing departments, development department. All these departments represents
areas of specializations that which workers of the organizations have expertise on.
HOLDINGS B.V.
The regional vice presidents representing continents report back to the mother company.
Communication is a two way procedure of message passing, directing and controlling. This has
made IKEA System Group a well-known and diverse company.
Reference:
IKEA Systems Group:
http://franchisor.ikea.com/ 2100Hrs 13th July 2015
G.A.Cole, Phil, K. Management Paperback – 25 Mar 2011
Roger, P. Juanta C. Managing Marketing: Marketing Success through Good Management Practice 11 Jul
2007
Cole..Management Theory and Practice Paperback – August 15, 2011
Prince,J.A.The Handbook on Management Theories. Author House, 16 Jun 2011. Pg 120
Gerald A. C. Management Theory and Practice. Cengage Learning EMEA, 2004
Cengage Learning EMEA, 2004 - 481 pages
Inter IKEA Subsystem B.V. About Inter IKEA Subsystem
http://franchisor.ikea.com/ 2100Hrs 13th July 2015
HOLDINGS B.V.
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Running head: MANAGEMENT THEORIES PRACTISED IN INTER IKEA SYSTEMS

MANAGEMENT THEORIES PRACTISED IN INTER IKEA SYSTEMS HOLDING B.V.

MANAGEMENT PRACTICES EMPLOYED BY INTER IKEA SYSTEMS HOLDING B.V.

IKEA Systems Group is a well-organized international company, the organizational structure of

G.A.Cole, Phil, K. Management Paperback – 25 Mar 2011

Cole..Management Theory and Practice Paperback – August 15, 2011

Prince,J.A.The Handbook on Management Theories. Author House, 16 Jun 2011. Pg 120

Gerald A. C. Management Theory and Practice. Cengage Learning EMEA, 2004

Cengage Learning EMEA, 2004 - 481 pages

Inter IKEA Subsystem B.V. About Inter IKEA Subsystem

http://franchisor.ikea.com/ 2100Hrs 13th July 2015

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