ORGANISATIONAL VALUES AND CULTURE AT IKEA

NANDANA RAJEEV
RAJAGIRI CENTER OF BUSINESS STUDIES
ORGANIZATIONAL CULTURE
DEFINITION AND
CHARACTERISTICS
Organizational culture includes an organization’s expectations, experiences, philosophy, as
well as the values that guide member behavior, and is expressed in member self-image, inner
workings, interactions with the outside world, and future expectations. Culture is based on
shared attitudes, beliefs, customs, and written and unwritten rules that have been developed
over time and are considered valid (The Business Dictionary).

Culture also includes the organization’s vision, values, norms, systems, symbols, language,
assumptions, beliefs, and habits (Needle, 2004).

Simply stated, organizational culture is “the way things are done around here” (Deal &
Kennedy, 2000).

While the above definitions of culture express how the construct plays out in the workplace,
other definitions stress employee behavioral components, and how organizational culture
directly influences the behaviors of employees within an organization.

Under this set of definitions, organizational culture is a set of shared assumptions that guide
what happens in organizations by defining appropriate behavior for various situations (Ravasi
& Schultz, 2006). Organizational culture affects the way people and groups interact with each
other, with clients, and with stakeholders. Also, organizational culture may influence how
much employees identify with their organization (Schrodt, 2002).

In business terms, other phrases are often used interchangeably, including “corporate
culture,” “workplace culture,” and “business culture.”
“gothamCulture is keenly aware of our strategic business objectives and has
delivered spot on coaching and consultation to our leadership team.”

Chief Human Resources Officer, ProMedica

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HOW IS ORGANIZATIONAL
CULTURE CREATED AND
COMMUNICATED?
Business leaders are vital to the creation and communication of their workplace culture.
However, the relationship between leadership and culture is not one-sided. While leaders are
the principal architects of culture, an established culture influences what kind of leadership is
possible (Schein, 2010).
Leaders must appreciate their role in maintaining or evolving an organization’s culture. A
deeply embedded and established culture illustrates how people should behave, which can
help employees achieve their goals. This behavioral framework, in turn, ensures higher job
satisfaction when an employee feels a leader is helping him or her complete a goal (Tsai,
2011). From this perspective, organizational culture, leadership, and job satisfaction are all
inextricably linked.

Leaders can create, and also be created or influenced by, many different workplace cultures.
These differences can manifest themselves is a variety of ways including, but not limited to:

WORKPLACE CULTURE DIFFERENCES

Person Culture and Market Culture
How members of an organization conduct business, treat employees, customers, and the
wider community are strong aspects of person culture and market culture. Person culture is a
culture in which horizontal structures are most applicable. Each individual is seen as more
valuable than the organization itself. This can be difficult to sustain, as the organization may
suffer due to competing people and priorities (Boundless, 2015). Market cultures are results-
oriented, with a focus on competition, achievement, and “getting the job done” (ArtsFWD,
2013).
Adaptive Culture and Adhocracy Culture
The extent to which freedom is allowed in decision making, developing new ideas and
personal expression are vital parts of adaptive cultures and adhocracy cultures. Adaptive
cultures value change and are action-oriented, increasing the likelihood of survival through
time (Costanza et al., 2015). Adhocracy cultures are dynamic and entrepreneurial, with a
focus on risk-taking, innovation, and doing things first (ArtsFWD, 2013).
Power Culture, Role Culture, and Hierarchy Culture
How power and information flow through the organizational hierarchy and system are aspects
of power cultures, role cultures, and hierarchy cultures. Power cultures have one leader who
makes rapid decisions and controls the strategy. This type of culture requires a strong
deference to the leader in charge (Boundless, 2015). Role cultures are where functional
structures are created, where individuals know their jobs, report to their superiors, and value
efficiency and accuracy above all else (Boundless, 2015). Hierarchy cultures are similar to
role cultures, in that they are highly structured. They focus on efficiency, stability, and doing
things right (ArtsFWD, 2013).
Task Culture and Clan Culture
How committed employees are towards collective objectives are parts of task cultures and
clan cultures. In a task culture, teams are formed with expert members to solve particular
problems. A matrix structure is common in this type of culture, due to task importance and
the number of small teams in play (Boundless, 2015). Clan cultures are family-like, with a
focus on mentoring, nurturing, and doing things together (ArtsFWD, 2013).
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Why Organisational Values are so

Important
The deeply rooted desire for success in all companies sets the
framework for setting company goals and staff objectives.
Google supports this view with the ‘Business Dictionary’
definition of an organisation: ‘a social unit of people
structured and managed to meet a particular need or a
defined set of goals’. Given this, it’s clear that organisational
values must be closely linked to overall organisational
success.
To achieve its objectives an organisation must establish its values. Even if
they are not consciously created, the way people behave towards one
another will create a default set of organisational values – and these may
not be what you’d ideally like. Best then, to invest some time in deciding
what you’d like them to be, rather than leaving it to chance. Values find
their way into every nook and cranny in an organisation – they guide how
people behave and serve as an external reference point. They become what
you are known for, so it best be something of which you can be proud.

Professors Robert Quinn and Kim Cameron (University of Michigan)

developed a model to explain current types of organisational values,
outlined below.
The Four Approaches to Organisational Values:
1. The Clan Culture:

This model promotes cooperation and synergy in all its activities. Its main
values are rooted in teamwork, communication and consensus. In this clan,
leadership is based on mentorship and is not dictatorial.

2. The Adhocracy Culture:

This is based on energy and creativity. Individual ingenuity is highly valued

by this system. Members are given free hand to explore (and break)
boundaries.

3. The Market Culture:

This value system is based on the ups and downs of market forces and
competition. The leaders tend to breathe down the necks of subordinates,
anxious for quick success.

4. The Hierarchy Culture:

This model is based on structure and control. Companies with this culture
usually have a detailed organogram defining each member’s contribution
and role within the organisation. Here, no one is left unsure as to his or
her place.

Regardless of size and structure there are some organisational values that
find (or should find) application in every organisation – here they are:
1. Commitment:

Although all companies require this from their staff, some are more
successful are getting it than others. They want to be sure that their
employees have the organisation at heart, and are willing to passionately
give their very best on their role.

2. Community:

A willingness to demonstrate social responsibility to the host environment.

3. Balance:

A core value aimed at generating a healthy work-life balance for an

organisation’s staff. At the end of the day, this comes back to benefit the
organisation. Happy staff, successful organisation.

4. Accountability:

This is the quality of being liable and responsible for decisions made and
actions taken, both personally and on behalf of the organisational. It is
closely related to openness and honesty.

5. Vision:

These are the ideals and dreams that drove the formation of the particular
company originally, for example, meeting a need, saving waste, generating
income, creating a safer environment. Organisations want to be sure that
everyone is looking towards and and working in the same direction – that
of the overall vision.

6. Safety:

Organisations need to ensure the health and safety of their staff, their
customers and environment in which they operate.

There are two important reasons for organisations to have their own set of
values. First, the values championed by an organisation can serve as a
distinguishing mark to clients. Second, value systems serves as remarkable
decision making guides for situations that fall outside the existing rules.

A clear understanding of what an organisation holds sacred will most

definitely steer the actions, decisions and thought processes of its staff –
and ultimately the success of the company.

4 Core Values That Every

Organization Should Have
Kim Lee
December 30, 2013

Recently, a list of companies that have the happiest employees was circulated
online. The companies were commended on their ability to promote healthy
work environment and sustaining a balance in family and work life. Pfizer came
out on top with Kaiser Permanente coming second, followed by Texas
Instruments. Looking at these lists, one wonders how these companies are able
to promote such a positive productive environment for their employees. Many
would think this is due to compensation packages or other related perks. But
 then, is work only about earning money? Is it the most important aspect when
employees join a new company? What about the other factors that play an
important role in building a strong bond between the employee and the
organization?

 A bond that stems from mutual appreciation and respect of the value system that
both parties shape together.
 A bond that is dependent on many diverse factors such as recognition, open
communication, and team work.
 A bond that strengthens over time when the employee performs well.

The importance of core values is illustrated by a quote from famous author and
inventor, Edward de Bono, "Effectiveness without values is a tool without a
purpose." This analogy really hits home. A purposeless tool is a worthless thing
and so is a company without a campus - a culture that is formed on the basis of
core principles. Core values serve to constantly guide both the employee and the
company in achieving their mutual goals, in a manner that is based on an ethical
and ideological framework. Every business is different, and so are their core
values. Having said that, there are some principles that are alike for all, even
though they may be phrased differently. Here are four such core values every
organization should have:

1. Integrity And Ethics

Simply put, the two principles of integrity and ethics translate into doing the
right thing, in an honest, fair, and responsible way. Building your entire business
on the foundation of honesty and integrity goes a long way into building a strong,
trusting relationship with it’s employees, stakeholders, and customers. A truthful
conduct on everyone’s part can create a strong, credible reputation of the
company in the market, which is beneficial for everyone’s interests.

2. Respect

Without dedicated employees, a company is nothing. Period. Committed

employees form the backbone of the entire corporation. They work together with
the system in order to achieve growth and profitability. A company has a
responsibility towards its employees and, if one of its core principles is showing
utmost respect to its employees, it's likely management will have a low employee
turnover. Respecting all employees means respecting their individual human
rights and privacy, eliminating all kinds and forms of discrimination, whether
based on religion, belief, race, ethnicity, nationality, gender or physical disability.
Moreover, ensuring a safe and healthy workplace environment for all employees
is an important part of giving respect to them. Many organizations across the
globe adopt an attitude whereby the entire company interacts together like a
close knit family. Such an atmosphere helps boost the confidence of employees
and makes them feel like an important, even indispensable, part of the
organization. This inspires feelings of commitment and a drive to do even better.

3. Innovation (Not Imitation)

Companies that focus on being ahead of their competitors and introducing new
ideas in the marketplace follow the principle of "innovation, not imitation." This
is crucial if a company wants to be a trend setter and introduce new products
that consumers appreciate. Employees in such companies are encouraged to be
dynamic and come up with innovative ideas that can translate into successful
products for the company. Constantly imitating others won’t take the business
far.

4. Drive

The thirst to constantly improve can be achieved if one is never satisfied.

Organizations that have this principle as one of their core values try to provide a
dynamic platform to their employees, where they can explore their creativity and
skills and further enhance themselves. While celebrating successes is an
important thing, just sitting back and getting complacent over them is
unacceptable for such companies. The reason why some companies habitually do
well is because they know that employees are the most valuable resource.
Nothing compares to an employee who is dedicated and willing to go the extra
mile. This requires a company to cultivate an environment that promotes respect
and frowns upon politics.
HOW AND WHY DOES
ORGANIZATIONAL CULTURE
CHANGE?
Organizational culture is not stagnant. Members of an organization develop a shared belief
around “what right looks like” as they interact over time and learn what yields success and
what doesn’t. When those beliefs and assumptions lead to less than successful results, the
culture must evolve for the organization to stay relevant in a changing environment.

Changing organizational culture is not an easy undertaking. Employees often resist change
and can rally against a new culture. Thus, it is the duty of leaders to convince their employees
of the benefits of change and show through collective experience with new behaviors that the
new culture is the best way to operate to yield success.

Cummings & Worley (2004) proposed six guidelines for culture change:
“gothamCulture continues to play an instrumental role in helping our company create
an environment that inspires crewmembers to deliver our brand promise to our
customers.”

Vice President, Customer Support, jetBlue

CUMMINGS & WORLEY SIX GUIDELINES FOR CULTURE CHANGE
1
Formulate a clear strategic vision.
This vision gives the intention and direction for the future culture change.
2
Display top-management commitment.
The top of the organization must favor the culture change in order to actually implement the
change in the rest of the organization.
3
Model culture change at the highest level.
The behavior of the management needs to symbolize the kinds of values and behaviors that
should be realized in the rest of the company. Change agents are keys to the success of this
cultural change process and important communicators of new values.
4
Modify the organization to support organizational change.
This includes identifying what current systems, policies, procedures and rules need to be
changed so alignment with the new values and desired culture can be achieved.
5
Select and socialize newcomers and terminate deviants.
Encouraging employee motivation and loyalty to the company will create a healthy culture.
Training should be provided to all employees to help them understand the new processes,
expectations, and systems.
6
Develop ethical and legal sensitivity.
This step can identify obstacles of change and resistant employees, and acknowledge and
reward employee improvement, encouraging continued change and involvement.
Organisational values

An organisation is an artifact, social entity, has structured activities, nominal boundaries and it is
goal directed. Values can be explained in few perspectives according to various sources. In
ethics, value represents importance of physical and abstract objects which is ideal accepted by
individual or group. It can be also defined as qualities that are considered worthwhile that
represent an individual’s highest priorities and deeply held driving forces. Values are often
admixture with knowledge, norms and beliefs. Beliefs can be proven right or wrong by one but
not values. Beliefs may vary by cohort, time, geographical differences but values are universal,
true for anybody at any time, whenever an individual is. Organisational values are ethical codes
that guide behavior by putting assumptions into practice. It also serves as qualities that an
organisation appreciates and would require members of the organisation to chase after.
Organisational values are ideology of an organisation and practiced by organisation from the
employee treatment, technology development, customer or any other external environment
interaction. It is part of the important element that forms organisation’s culture and it emanate
deep from an organisation’s soul

Source and Origin of Organisational Values

Organisational values are closely associated with human values. It can be perceived as extension
of human values, which can be categorized to two: instrumental and terminal value. Positive,
honest, integrity, responsible, helping the needful are some examples of values. Terminal value
relate to goals or desired stage, where as instrumental values relate to what needs to be applied
to achieve a terminal value. Example: one’s terminal value being to provide good life to family
members, and instrumental value being to be hardworking and responsible in everything aspects.
Organisation values that contradict with human values will leave the members of the organisation
uncertain and confused about their roles. Problems that plague the society will be mirrored in the
organisation. Values do not come from conscious intentions but rather, from highest expression
out of free will. Some organisational values are not consciously created but are part of fabric of the
organisation, as a result of founders’ views. Values might be discovered and practiced by founders
during the early days. Values remain unchanged but evolved over the years unnoticeably until the
organisation decided to encapsulate it in words and lay as fundamental part of the way the
organisation thinks.

Some organisational values are created consciously by management team who decide to improve
company’s performance systematically. Frameworks, methods might be introduced to capture the
organizational values to reveal findings. Values could be derived from organisation’s goals. It is
a set of principles that guide an organisation to success and through difficult situations. It is not to
be compromised for short term expediency or financial gain.

Organizational values are so special that it superseded corporate strategy, technological

advantages or market presence to be the power that resides in shaping a successful organisation.
Organizational values define the acceptable standards which govern the behavior of individuals
within the organization. Without such values, individuals will pursue behaviors that are in sync with
their own individual value systems, which may lead to behaviors that the organization doesn’t wish
to encourage.

Advantages of Organisational Values

Organisational values promote healthy growth of an organisation. According to Maslow’s hierarchy
of needs, humans have a fundamental need to associate with something that they can feel proud.
With the tight association all members have with an organisation, individual’s membership is
defined and subsequently creates a committed workforce. Organisational values also let members
of the organisation stay motivated. The external motivation by managers is less effective than in a
routine-based society and work process. Therefore organisational values should be taken into
consideration to promote intrinsic motivation of the organisation members.

The nature, role, and function of values are considered a central part of the organisational value
foundation of a corporate brand. Organisations with good organisational values perceived as social
responsible corporate and generally well accepted by public. Brand value increase and therefore
drive good returns from public, in terms of sales, as well as brand image. Organisation identity is
strong and helps differentiate the organisation from competitors. Organisational values are vital for
continuity, consistency and credibility in a value-creating process. Organisational values ensure
everyone in organisation is working towards the same goals in accordance with the same principles
and adhering to the same standards. Organisational values foster organisation’s morale and
protect organisation’s reputation. Values are cognitive, affective and provide directions. It drives
organization groups towards the common target.

Disadvantages of Organisational Values

Values are important to study organizational behavior because values are the foundation of how
people behave. Personal values might be contradicted with organisational values although values
are typically good in nature. Example some organizations’ reward system is based on seniority.
People that value performance higher than seniority will tend to need to deal with disappointment
when they are bounded by reward system based on seniority. Both seniority and performance are
good values but in this case people disappoint due to different value hierarchy. When there is
contradiction, individual could either place personal values as top priority against organisational
values, and vice versa. When individual prioritized personal values, organisations’ benefits are at
risk to be sacrificed. Individuals might feel depressed as well when organisational values took over
personal values.

Individuals might suffer imbalanced life from practicing organisational values, such as
‘hardworking’ as organisational value and member of the organisation might be required to practice
it and slack in terms of personal life, which is not a good sign from society harmony point of view.

Organisational values somehow define organisations’ goals to certain extent. It might limit
organisation’s pursuit of other achievable goals due to principles and standards generated by the
defined organisational values.

Organisational values make an organisation harder to change their existing reputation if an

organisation decided to change public’s perception that has long formed. It makes a reputable
organisation’s journey to breakthrough existing image, a hard one.

Influence of Organizational Values on Organizational Practices

and Processes
Personal values shape individuals’ attitude and impact an individual’s behavior. Similarly,
organisational values also influence how an organisation ‘behaves’ because it will then determine
the destiny of that organisation. Organisation Practices and Processes are then set up, to be
followed, serve as guide books to ensure the organization is pursuing the right path towards
common goals on a day to day execution perspective. These practices and processes served as
written controls and guidelines for members of an organisation to perform their day to day job in
order to achieve the common organisational goals. Business processes are set of living documents
although there should not be frequent changes but to be reviewed from time to time. Some
organizations spend huge amount of investment to review and redesign processes. The design
teams tend to be ambitious to design processes that ‘work on paper’. Issues arise during the
execution phase. Situations become more complicated if staffs are not governed by the
organizational values. Policies and practices are as good as the human that man many
subsystems and sub processes.
An organisation can have the best designed processes but still cannot be the world class
organization if humans, as part of the key factor are not behaving how they should be. Other than
processes, policies and practices also include organisational enablers. An enabler is a technical
facility or resource that makes it possible to perform a task, activity or processes. Organisational
values also influence the organizational enablers directly which consequently impact the
organisation’s policies and practices.

Typical business processes involved in invoice and servicing customers include billing the
customer, provide after sales service and responding to customer inquiries. If an organisation
induce ‘trust and personal responsibility to every client’s success’ as an organizational value and
this is being practiced across the organisation including the invoice department, it is almost certain
that customers will receive superb customer services and that organisation can expect regular
return customers without much of marketing effort. But if the invoice department does not practice
the organizational value, it is most likely to be the pain point for customers to deal with, and the
staffs do not feel their responsibility towards the organisation’s success.

If an organisation is sales-oriented and take customers as highest priority, the internal policies
making would also aligned to support organisation’s values. This direction does not only apply to
external customers, but will also determine inter-departmental interaction mode. One department
becomes another department’s internal clients and staffs take cross departmental interaction
seriously instead of having bureaucracy attitude.

World famous technology leader, Sony’s core values is to be leader, not follower. The
organisational value has been driving the company to be notable as the ‘first’ to introduce cutting
edge electronic devices, recording and storage technologies to market all time. Sony refuse to stay
in the position of adopting standards of other manufacturers set. Sony spends million of dollars in
the Research and Development Department every year to sustain as the leader in new product
introduction. ‘Walkman’ is a Sony brand trademark originally used for portable cassette player. It
was invented by Sony’s audio division engineer Nobutoshi Kihara in 1979 and other electronic
companies then followed the idea, innovatively. Sony also was the first to launch other electronic
products such Compact Disc players, gaming console, Play Station to name a few.

WHAT ARE ORGANIZATIONAL

SUBCULTURES?
Rather than changing an entire organization’s culture, an organization can be adaptable and
agile by allowing certain types of subcultures to emerge. Organizational subcultures are
groups whose common characteristic is a shared norm or belief (Boisnier & Chatman, 2002).

Subcultures are classified as enhancing, orthogonal, or counterculture, each exemplifying a

different level of congruence with the dominant culture’s values (Martin & Siehl, 1983).
Members of enhancing subcultures adhere to dominant organizational culture values even
more enthusiastically than members of the rest of the organization. Members of orthogonal
subcultures both embrace the dominant culture’s values and hold their own set of distinct, but
not conflicting, values. Finally, members of a counterculture disagree with the core values of
the dominant culture and hold values that directly conflict with core organizational values.

While having a deeply embedded organizational culture is usually associated with higher
performance, these organizations may not be adaptive enough to ensure their long-term
survival. Organizations may, therefore, become more agile by allowing subcultures to
emerge.
 IKEA
A better everyday life for the many people
IKEA is a global leader in life at home. Its a Swedish-founded multinational group that
designs and sells ready to assemble furniture, kitchen appliances and home accessories
among other useful goods and occasionally home services. Values and optimism are shared
with millions of co-workers and customers around the world. Along with our desire to
champion sustainable living, responsible sourcing, and communities in need of support. It
was founded in Sweden in 1943 by 17-year-old carpenter Ingvar Kamprad, who was listed
by Forbes in 2015 as one of the ten richest people in the world. The company's name is
an acronym that consists of Kamprad's initials with those of Elmtaryd (the farm where he
grew up), and Agunnaryd (his hometown in Småland, southern Sweden. The company is
known for its modernist designs for various types of appliances and furniture, and its interior
design work is often associated with an eco-friendly simplicity

IKEA vision and business idea

‘To create a better everyday life for the many people’, this is the IKEA
vision. Our business idea is ‘to offer a wide range of well-designed,
functional home furnishing products at prices so low that as many people
as possible will be able to afford them’. Our vision also goes beyond home
furnishing. We want to create a better everyday for all people impacted
by our business.

our vision:
To create a better everyday life for the many people
The IKEA Concept starts with the idea of providing a range of home furnishing
products that are affordable to the many people, not just the few. It is achieved by
combining function, quality, design and value - always with sustainability in mind.

The IKEA Concept exists in every part of our company, from design, sourcing,
packing and distributing through to our business model. Our aim is to help more
people live a better life at home.

What does IKEA mean?

IK = Ingvar Kamprad, the initials of IKEA founder

EA = Elmtaryd and Agunnaryd, the name of the farm and village where he grew up

Online you can check out ideas and inspirations from all over the world and even
create a wish list of your favorite products!

At the store, you can compare styles and prices and get inspired by realistic room
settings. You’re also welcome to sit, lie down, open and close drawers and cabinets,
pretend to cook, sleep or watch TV, just like you would at home.
The IKEA store is designed to meet many people looking for something for their
homes. It’s also a place where you can actually go beyond inspiration by getting
solutions from the store!

Low prices

All the IKEA products in the store are supported by price and product information
that makes it easy for visitors to serve themselves. So that searching and finding the
products you want, picking them up, buying them and bringing them home, putting
them together and enjoying them on the same day is easier on you and on your
pocket!

IKEA Organizational Culture

1. 1. “IKEA had, in fact, been quite successful with its “one design-suits-all” global
expansion strategy in many markets.
2. 2.  IKEA is the world's largest furniture retailer since the early 1990s.  The company
offers a wide range of well- designed, functional home furnishing products at prices so
low that as many people as possible will be able to afford them.  In order to accomplish
this business idea, IKEA chose the standardized marketing mix strategy in order to be
able to produce products at low price but still be able to spread the reputation and the
“soul” of the brand name to all business units in the world.
3. 3. Anders Dahlvig, former CEO of IKEA, had once said, "whether we are in China,
Russia, Manhattan, or London, people buy the same things. We don't adapt to local
markets."
4. 4.  the "IKEA Way" that facilitates its successful international expansion is the
combination of vision, characteristic leadership, sound business principle that subtly
reinforced by the influence of Swedish culture.
5. 5.  Operating in a country with the culture base different from the corporate culture could
bring many challenges to MNE. Survey entitled “What is the biggest barrier in doing
business in the world market” figured out eight problems which include “law, price
competition, information, language, delivery, foreign currency, time differences, and
cultural differences”.
6. 6.  1. The product range – our identity  2. The IKEA spirit. A strong and living reality 
3. Profit gives us resources.  4. Reaching good results with small means  5. Simplicity
is a virtue.  6. Doing it a different way.  7. Concentration – important to our success. 
8. Taking responsibility – a privilege.  9. Most things still remain to be done. A glorious
future!
7. 7.  In order to maintain IKEA’s unique culture, especially in the case when the firm
expands its operation to global market which would result to the distance from the head-
office, IKEA has used the work as an important tool for disseminating IKEA’s unique
culture throughout the organization.
8. 8.  The IKEA way is delivered to non-Swedish co-workers in overseas operations by
Swedish managers, who are given the role of being “IKEA ambassadors” abroad
9. 9.  IKEA trained managers who then were given key positions to act as missionaries and
spread the cultural values to coworkers  “There are more women than men working on
the IKEA sales floors, and while the share of women is slowly increasing in some
management categories, the goal to real full gender balance is still a challenge”
10. 10.  The characteristics of IKEA’s culture where people often wear the same uniform or
casual dress instead of suits. Titles which shown the position are not used in the name
badge or in the way IKEA’s people call each other. They prefer the word “co-workers”
instead.  Responsibilities were the key for distinguishing co-workers; an evaluation
system based on personalized yearly goals and broad guidelines is used to evaluate
employees’ performance.
11. 11.  Initiative and entrepreneurial imagination were strongly encouraged.  The co-
worker who thought he was suitable for another position would have the chances to show
 their ability.  He searched the possible/ available opportunities and “when a new area of
responsibility was found, interviewed and hired their own replacement”
12. 12.  IKEA culture has reflected Ingvar’s personality, which is used to create cultural
values in humbleness, simple lifestyle, cost consciousness and all IKEA team members
are treated equally within workplace.  IKEA can achieve its goals with its few standard
values, which it is different from other multinational firms for instance; humbleness,
equality and simplicity.
13. 13.  Swedish culture is strong reflected in the way IKEA communicate their human
resource management practices where people are respected, employees are
encouraged to participate in decision making and take responsibilities.  Having normal
qualifications is not compulsory for candidates since they are expected to have good
communication skills, open minds, positive work attitudes and good potential rather than
academic degrees.
14. 14.  IKEA people are encouraged to be independent, willing to learn, willing to listen to
others and know how to transfer and share their knowledge to others while not feeling
they are any better than anyone else.  In exchange, they are offered by IKEA a pleasant
working environment; job security and a caring attitude to employees  IKEA believe in
each person’s ability to develop and grow – both personally and professionally.
15. 15.  Diversity and inclusion are essential for IKEA business success - meeting
customers, developing co-workers, and cooperating with their global business partners. 
IKEA culture promotes togetherness; realizing that each individual adds value to the
team.  IKEA know their strength comes from building on and valuing co-workers’
differences and similarities.  Inclusion means encouraging all co-workers from different
backgrounds to be themselves and apply their own unique perspectives.
16. 16.  IKEA coworkers come from a variety of backgrounds and life situations.  Today,
131,000 people from 48 different nationalities work at IKEA.  Of IKEA top 200
managers, about 40% are women – and, obviously, they are striving for at least 50%
here
17. 17.  IKEA is a multinational company which has a different organizational culture all over
the world. IKEA has simple culture to trust their people and treat equally.  Their policies
are standardized, they believe that people all over the world buy same thing. Where they
need, they go for diversification. But strategic decisions are centralized, they train their
co-workers by their way.  Language, Law and Culture are may barrier, but they resolve it
by good communication skills.  They prefer communication skills and organization’s
ethics instead of academic qualifications.

18. GLOBAL WORKING PLACE

19. 2. So what’s IKEA?? So what sIKEA?? Established in the 1940s in a small village in
Sweden by Ingvar Kamprad, IKEA has become one of the world’s leading retailers of
home furnishings. IKEA Brand Sum total of the emotional and rational values that
consumers associate with the IKEA tradesmark and the reputation of the company The
brand image is the result of over 50 years work by IKEA co-workers at all levels all over
the world
20. 3. IKEA the Best Employer ??? So what sIKEA?? <ul><li>#1 IKEA’s HR Policies :
BOOSTED Employee Morale
21. </li></ul><ul><li>Creating Better Everyday Life for People </li></ul><ul><li>Support Life
Balance & Diversity </li></ul><ul><li>Flexible Working Hours and Holidays
</li></ul><ul><li>Parental Benefits </li></ul><ul><li>Annual Employee Appreciation Day
</li></ul><ul><li>Tuition Reimbursement for Graduate & Undergraduate Programs
</li></ul>In 2005: IKEA in the list of 100 Best Companies to Work For -----Fortune
Magazine IKEA s HR Policies #1 BOOSTED Employee Morale
22. 4. So what sIKEA?? <ul><li>#2 IKEA’s Employee Development Programs
</li></ul><ul><li>Training Programs in health, safety and environmental consciousness
etc </li></ul><ul><li>Mentoring Initiatives like Partners for Growth </li></ul><ul><li>Self
Assessment Tools like Paddle your own Canoe </li></ul><ul><li>Special training
 programs like I want your Job </li></ul><ul><li>Global application Tracking System
Enterprise </li></ul><ul><li>Encouraged concerns sharing through programs like
Express yourself </li></ul><ul><li>#3 IKEA’s Work Culture : INNOVATION Big Family
Culture </li></ul><ul><li>Promoted Diversity </li></ul><ul><li>Openness and Equality -
All employees addressed as Co workers </li></ul><uFlat structure & Uniform Dress Code
for All </li></ul><ul><li>Cost Consciousness </li></ul><ul><li>No Detailed Instruction to
Employees </li></ul><ul><li>Openness to Change </li></ul><ul><li>Scandinavian
Names to Products </li></ul>IKEA s HR Policies #1 BOOSTED Employee Morale
23. 5. Business Strategy So what sIKEA?? The IKEA business idea is &quot;To offer a wide
range of well designed, functional home furnishing products at prices so low that as many
people as possible will be able to afford them.” IKEA’s business formula is based on low
cost and affordability. Adaptation to each country’s local requirement would lead to higher
cost of production and subsequently put pressure on the company to increase its prices.
IKEA s HR Policies #1 BOOSTED Employee Morale
24. 6. Global Strategy So what sIKEA?? A global strategy involves the carefully crafted
single strategy for the entire network of subsidiaries nd partners, encompassing many
countries simultaneously and leveraging synergies acros many countries Moving from a
domestic or international strategy to a global strategy is not an easy process, and creates
various strategic challenges The challenge here is to develop one single strategy that
can be applied throughout the world while at the same time maintaining the flexibility to
adapt that strategy to the local business environment when necessary IKEA s HR
Policies #1 BOOSTED Employee Morale
25. 7. Future Challenges for the IKEA Group So what sIKEA?? <ul><li>The complexity of
the logistics system will increase.It will be more difficult to respond to national needs and
cultural sensitivity issues.Franchisees may demand more control over operations.With all
these challenges emerging, it will be very difficult to maintain a global organizational
structure.The best approach to meet these challenges is to find the proper balance
between country level autonomy and centralized intervention IKEA s HR Policies #1
BOOSTED Employee Morale

IKEA culture
IKEA culture reflects Swedish roots coming from Småland in southern
Sweden. People living here are hard-working, down-to-earth, help each
other and live in a close contact with nature around. These aspects are
translated into IKEA values which form the basics of IKEA culture.

IKEA Key values

We believe that every individual has something valuable to offer and we
strive to have the same values in the way we work.

Togetherness
Togetherness is at the heart of the IKEA culture. We are strong when we
trust each other, pull in the same direction and have fun together.

Caring for people and planet

We want to be a force for positive change. We have the possibility to
make a significant and lasting impact - today and for the generations to
come.
 Cost-consciousness
As many people as possible should be able to afford a beautiful and
functional home. We constantly challenge ourselves and others to make
more from less without compromising on quality.

Simplicity
A simple, straightforward and down-to-earth way of being is part of our
Småland heritage. It is about being ourselves and staying close to reality.
We are informal, pragmatic and see bureaucracy as our biggest enemy.

Renew and improve

We are constantly looking for new and better ways forward. Whatever we
are doing today, we can do better tomorrow. Finding solutions to almost
impossible challenges is part of our success and a source of inspiration to
move on to the next challenge.

Different with a meaning

IKEA is not like other companies and we don’t want to be. We like to
question existing solutions, think in unconventional ways, experiment and
dare to make mistakes - always for a good reason.

Give and take responsibility

We believe in empowering people. Giving and taking responsibility are
ways to grow and develop as individuals. Trusting each other, being
positive and forward-looking inspire everyone to contribute to
development.

Lead by example
We see leadership as an action, not a position. We look for people’s
values before competence and experience. People who ‘walk the talk’ and
lead by example. It is about being our best self and bringing out the best
in each other.

”Most things remain undone. A glorious future!”

_____

Ingvar Kamprad, IKEA founder