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Title of Your Paper

Part II

Introduction

IKEA Company is a multinational organization headquartered in the Netherlands whose

main activities are to design and sell ready-to-assemble furniture, kitchen appliances, home

accessories, decoration, and several other home services. IKEA is an acronym for Ingvar

Kamprad Elmtaryd Agunnaryd, which represents matrimonial home for Kamprad during his

childhood and where he grew up. The company was established in 1943 by Ingvar in Sweden as

a small company offering distinctive services to its customers. IKEA Company has more than

460 stores in 52 countries, which enables them to supply products globally. The annual revenue

for this company averages $43 billion (IKEA, n.d.). IKEA typically uses Swedish to name their

products, which makes them unique in the market.

As a group, we chose IKEA for various reasons. First, it is a global multinational

company that will help us explore its operations in different countries and have different

experiences. The corporation has initiated branches in Saudi Arabia and Dubai, which have

enhanced its sales throughout the Middle East. Moreover, the company has evidently exhibited

its dedication to ecological durability (IKEA, n.d.). Since we value the beauty of nature and the

future generation, we intend to explore more about how this company operates to facilitate

sustainability.

The purpose of this report is to evaluate policies and practices for the IKEA Company

and to help understand various human resources themes. Enterprise policies are essential as they

help the organization manage activities by enforcing business rules and regulations. Therefore,

by researching enterprise policies, the group will understand how companies set and implement

different policies within the organization to improve its operational activities. Therefore, our
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report will research key IKEA policies in various themes of the enterprise. Also, the paper will

discuss enterprise practices in various themes for IKEA Company to help improve the welfare of

communities and the overall economy.

Enterprise policies

IKEA Company has several enterprise policies that guide human resource planning.

These regulations are meant to simplify the functioning of the corporation by recruiting the

appropriate individuals for the accurate roles within the establishment. Consequently, the

corporation’s business regulations are significant in guaranteeing that the establishment operates

in an impartial, moral, and enduring way. Some of the most important enterprise policies for

IKEA are discussed below.

First, IKEA Company has a performance management system that is used to assess

employee’s performance (IKEA, n.d.). Performance management is a human resource tool that

helps the HR manager evaluate the present and future of workers and suggest a course of action

that can help the organization improve its performance and achieve its objectives. Hence, IKEA

utilizes performance measurement to gauge performance anticipations, acknowledge and

compensate staff members, and offer input to administration. Research indicates that the IKEA

Company is dedicated to design a performance-driven culture that aligns organizational goals

with individual objectives. Some of the key elements of IKEA’s performance management may

include setting objectives, regular feedback from employees, performance appraisal,

development plans, recognition and rewarding, competency assessment, and employee

engagement.

In addition, IKEA has executed an education and growth strategy for its workers (IKEA,

n.d.). This plan is crucial to companies like IKEA as it boosts employee efficacy, improves the
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company's environment, and enhances employee productivity. By educating the employees, they

will acquire the latest expertise to aid in enhancing their performance at their job. The IKEA

Corporation mandates that all personnel, including competent experts, undergo instruction to

assist them in upgrading their skills with state-of-the-art technology. Therefore, to implement

this policy, IKEA has integrated training and development into their system to provide advanced

skills and competencies, which will ultimately reflect improved performance.

Furthermore, IKEA Company has implemented a compensation and benefits policy for

their employees (IKEA, n.d.). The company made rational decisions to compensate their workers

commensurate with the efforts rendered to the organization. In order to realize this goal, IKEA

offers competitive salaries, performance-based incentives, and several benefit packages to its

employees. This policy serves as a tool for attracting the best talents to help the company with

innovative ideas. The company implements different packages of benefits to motivate the

employees to do better continually. Some of the most ordinary packages that can be discovered

at IKEA Company are the pension savings scheme, medical coverage, compensated absence, and

extra hour payment. Hence, this guideline can be exceedingly vital in HR planning to guarantee

impartiality and establish a typical function for gratifying staff members in the establishment.

Finally, IKEA possesses an organised assortment and employment principle to facilitate

them in recognising and picking the finest skill for the vacant role. (IKEA, n.d). Selection and

recruitment are two important processes in Human Resource planning since they allow the HR

managers to utilize their knowledge and skills to find the best talents for the company.

Recruitment can be referred to as a hiring process that entails getting a job description before

many people, while selection is a process of narrowing down the pool so that you can be left

with the most qualified personnel. The IKEA human resources manager uses several steps to
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implement this policy. These include conducting interviews, confirming references credibility,

and screening the applications.

Enterprise policies are crucial to an organization to ensure that they are working towards

the organizational objectives. The human resources manager at IKEA Company created these

policies to ensure that the company employs the best talent for the best organizational

performance. When these policies are implemented appropriately, the company can attract top

talent and retain the best employees to ensure continued organizational performance.

Enterprise Practices

Enterprise practices are one of the most important aspects of an organisation, as they act

as an instrument to spur social change and improve the way people work and live. There are

several practices that align with IKEA's human resource planning to improve their performance.

First, IKEA is dedicated to promoting democratic designs regardless of individual income. The

organization trusts that each person has the privilege to reach their design goals to boost their

house's look. To carry out this procedure, IKEA creates budget-friendly, trendy, and practical

furniture for its clients. What's more, IKEA shops are deliberately situated to guarantee that

everyone can reach their furniture. In addition, the company is committed to ensuring

sustainability to help reduce environmental impacts. Sustainable practices are vital as they

support the environment, and economic health (Niskanen et al., 2020). The underlying goal of

sustainability is that it presumes resources are scarce and should be conserved in a manner that

reduces negative consequences. IKEA has adopted sustainable practices by recycling waste

materials from their furniture to reduce the packaging of their products. Also, the company has

invested in renewable energy sources to produce energy with zero emissions in an effort to

reduce pollution.
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Also, IKEA has implemented continuous improvement practices by adapting invention

and innovation among its employees. The company has been looking for methods of improving

their products and services by embracing the latest technology (Paunov et al., 2019). For

example, Kaizen and lean manufacturing are key initiatives that have been implemented by the

company to promote continuous improvement (Alagic et al., 2020). Another important practices

that has been adopted by IKEA is customer focus. The company designs and produces their

products and services while minding their customers and striving to provide top-notch customer

service. Customers are the most valuable element of any organization as they are they consume

goods and services in exchange for money. This helps the organization pay their employees,

expand operations, and promote continuity for people's livelihoods. Thus, IKEA prioritizes

customer feedback and uses it to improve their products. IKEA’s practices are created to ensure

the long-term success of the company through key commitments.

Analysis

Apparently, human resource themes are effective in various ways. Initially, these

concepts aid the establishment oversee its employees by guaranteeing that they are responsible

for their efficacy. Efficacy management evaluates employees' productivity through routine

evaluations and evaluates their input through a suggestion box for confidentiality. Moreover,

efficacy management has the potential to assist the workers enhance their efficacy through the

input they acquire from the human resource manager. Also, performance management is

effective for IKEA as it enables them to identify workers who are well-equipped for promotion

(Hazen et al., 2021).

In addition, training and development are effective in enabling IKEA, as they help its

workers acquire new skills and ensure that they are up-to-date on the latest trends. Training and
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development at IKEA are effective in several ways. First, it equips workers with the skills they

need to do the required work for the company. Secondly, it helps the employees flourish in their

careers for promotion. Lastly, training and development equip the employees with the latest

skills that apply to the IKEA Company.

Furthermore, IKEA has established competitive salaries and benefits, which can motivate

employees towards their duties. Competitive compensation and benefits are effective in various

ways. First, employees feel motivated to report to work and provide high-quality work willingly.

Also, it increases job satisfaction and improves the quality of labour (Iqbal et al., 2017).

Human resource planning policies and practices enable IKEA to adapt to the disruptive

and competitive business environment in various ways. To start, competence management is

significant in a tumultuous and rivalrous business setting by ensuring that employees are held

accountable for their output. Moreover, when there is a burgeoning technology, instruction and

enhancement can equip employees with the competencies they require to carry out their

responsibilities proficiently. Moreover, IKEA’s career planning and compensation management

can help the organization secure top-notch talents where they need to push for quality results.

Part III

Executive Summary

The research aims

The aims of this research were to identify IKEA’s policies and practises within the

human resources department and explore how the company can adapt to the disruptive and

competitive business environment.

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The selected enterprise

IKEA Company

The way research was conducted

This research was conducted by consulting credible articles and the company website.

This is because credible articles contain accurate information regarding the organization.

Similarly, IKEA’s website contains information that was published by the company. Therefore,

it is considered accurate and relevant to this research.

What this report includes

This report is made up of three essential parts. The first part contains an overview of the

IKEA Company, stating the company background and the products they offer to their customers.

The second part is the main section of the part that characterizes policies and practices regarding

IKEA Company. The last part of the report comprises an executive summary and a conclusion.

Conclusion

The findings indicated that IKEA's human resource policies and practices, culture, and

predisposition enabled the company to position itself in a disruptive and competitive business

environment. All the enterprise themes ensure that employees are productive, happy, and

engaged in all organization activities. By consulting all the human resource themes, the company

has been able to invest in online marketing, open new stores in different regions, and introduce

new products and services. Overall, the research found that IKEA’s human resource policies and

practices are effective in enabling the organization to excel in an ever-changing environment.  

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References

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