Managing Human Resources

Human resources: the individuals within the firm, and to the portion of the firm's organization that deals with the hiring, firing, training, and other personnel issues.

IKEA: Furnishing Good

Employees Benefits Along with Dining Room

Sets

Cami Ichiki & Stacy Iwai

Overview• Pernille Spiers-Lopez• Employee Leadership• Employee Commitment• Employee Flexibility• Employee Benefits• IKEA History• SWOT analysis

Pernille Spiers-LopezPresident of IKEA North

America • Named president in 2001, when sales

staff turnover was 76%. The next year she helped the company slash turnover to 56%.

• Believes that “The number one priority is family”

• Last fall, Working Mother magazine named IKEA North America one of the 100 best companies for working mothers and singled out Spiers-Lopez for its Family Champion Award.

Employee Leadership• Spiers-Lopez suggested that effective

leadership starts with self-examination.

• Leadership is about being in front of everyone and taking steps that others can’t always see.

• Good leaders must recognize that they do not have all the answers.

• Leadership today is really about enjoying change.

Employee Commitment

• It’s easy to be committed to the co-worker who’s doing great.

• Spiers-Lopez believes that “The real commitment is when the employee is struggling. When I hire you, I am there until you don’t want to do it anymore.”

Employee Flexibility

• A key part of Spiers-Lopez’s job is to convince her managers to find ways to match their stores’ needs with those of employees:– using flexible work schedules– job sharing– compressed work weeks– other techniques

• The company has a strong commitment to diversity and tries to attract employees who reflect the communities in which stores are located.

Employee Benefits

• Full medical and dental insurance (20+ hours/week)• Coverage for domestic partners and

children• Paid maternity leave• Tuition assistance• Flexible work schedules.

IKEA History• In 1943, IKEA was founded by Ingvar Kamprad• Based in Sweden• The stores exteriors are painted bright blue and

yellow, Sweden’s national colors.• Originally sold pens, wallets, picture frames, watches,

jewelry and nylon stockings. Now IKEA specializes in fashionable furniture and home accessories at low prices.

• In 1951, the first IKEA furniture catalog is published• In 1985, the first IKEA store opened in the USA• IKEA North America headquartered in Plymouth

Meeting, Pa.• IKEA numbers 76,000 employees in 200 stores in 31

countries• Employs about 7,000 in the U.S. stores and plans to

open 50 new stores over the next decade.

SWOT Analysis• Strengths

– Low prices– Advertising (catalog,

website, radio, word of mouth)

– Good online presence– Wide range of

products & styles– Self-Serve area– One-stop shopping– Model rooms– A typical IKEA has a

Restaurant, Grocery Store, Supervised play area & Baby care room

• Weaknesses– Assemble products

yourself– Few locations– Store layout (store

too big for some)

SWOT Analysis cont.• Opportunities

– Have some assembled furniture

– More stores– Sell some of their

furniture in other retail stores

• Threats– No direct

competition– Intertypes

• Walmart• Kmart• Home Depot• Sears

– Pier 1

Sources• http://www.ikea.com• http://knowledge.wharton.upenn.edu/ar

ticle/959.cfm• http://www.google.com/search?hl=en&l

r=&oi=defmore&defl=en&q=define:Human+resource

• http://www.borg.com