ChinaHuman resource managementChinese language Pages: July 29, Journal of World Business 41 — www. Indeed, such practices can be innovative in the Chinese context and provide a competitive source of differentiation for multinationals as employees. China; Multinationals; Human resource management; Expatriates; Retail sector 1.
For an international enterprise, IKEA have to seek global expansion and entry foreign market. It has founded that IKEA is perfect in every aspect when it is reported or researched.
For instance, IKEA makes some complicated enterprise management into simple principles: This paper will focus on the human resource management of IKEA in Chinese market based on the case study of internalizing a brand across cultures: Veronika V and Leslie, In the early s, human resource management has been proposed by Beer and his colleagues at Harvard Business School.
It is stated that departure from the previous views of the nature and purpose of personal management, with a set of prescription for managers to connect the effective human resource management, mostly, with the condition of corporate success and broader positive consequences for society Beer et al.
IKEA should communicate their brand visions, values and brand promise to all employees in different locations of stores and ensure among all stores or internal store of employees share the brand understanding Burt and Sparks, Firstly, he factors which cause problems in Chinese market will be discussed, meanwhile, how IKEA improve its capacity of control those problems through supplier and customer relationship management will be discussed as well.
Secondly, IKEA has its own human resource management theories which focus on employee performance and individual ability evaluation. This paper will display those performance methods and express how the performance evaluation used by IKEA for specialized individual characteristic.
Finally, conclusion and suggestions are discussed. The first problem is price. IKEA household products got prevailed market reflection in European market by the low price strategy, while this strategy is not suitable in Chinese market.
It is remarkable and not easily compared with the similar brands. There are five aspects can simply demonstrate IKEA position. However, the position changed in Chinese market due to the income differentiation and cultural factors, IKEA becomes middle-class to top furniture brand chosen by the white-collar people or someone like top brands.
For example, majority of European families have private car and enjoying shopping to a leisure environment. Whereas, IKEA had to choose store located in city center in Chinese market in order to convenient to people go shopping instead of located in city edge in European market. Thirdly is service problem.
IKEA in European market run as self-service store but it is not working well in China because Chinese are much like some salesclerks give them introduction or guidance when shopping, especially, IKEA is a foreign brand for them Lewis, Faced the problems displayed above, IKEA in order to make their product can sale well reflect the problems with two main solutions are focus on add human actions to adopt the cultural differentiation and employee performance to meet their customer requirement Edvardsson et al.
Compare with Western market, IKEA can successful cut down its cost by large-scale purchase, own logistic network, instruction books and DIY assembling. In this condition, IKEA had to build its own research group in China and try to find the cheapest raw material to make much practical product.
Firstly, contract with manufactures to ensure the cost leadership strategy. IKEA take much care to match manufactures with product to meet its mission. In the long term contract condition, supplier manufactures of IKEA can work together, for example, the designers and suppliers, to build saving-generating features into production.
Secondly, to build customer relationship through DIY do it yourself assembling and finally, lead customers becomes a resource of company. But, when IKEA pay attention to provide customer with low price and good quality product by reduce cost, its do not realized Chinese people also IKEA offer free door-to-door delivery and installation services.
IKEA human resource teams make care at co-workers inspiring, creating passion and enjoyable work environment. IKEA employees are through recruitment and training, benefits management and succession planning. Hill and Gareth R. IKEA ordered clear requirements for candidates on different positions and different levels, but does not mean the candidates must fully meet the requirements in each aspect, while focus on the degree of the requirements candidate achieved, and how the candidate to achieve.
In addition, IKEA also considering the candidates ability of on long-term marketing planning, strategy making, project planning and manage changes approaches and so on.
Besides, IKEA adopt employee performance evaluation combine with employee private development approach.Challenges faced by IKEA in international environment Furniture from Sweden is sold in the USA is relatively higher even though the price of Sweden drop every year so IKEA is finding a solution for it, shipping from Europe to other country takes around 1 to 2 months and shipping cost is expensive.
Even when a comparison was made between IKEA Sweden and IKEA China, as well as IKEA Germany and IKEA China, there were little to no adjustments made to the HRM process despite the three countries being vastly different politically, economically, culturally and asymmetric factors.
IKEA with Chinese Characteristics USCBC on July 1, The Swedish furniture retail giant is bringing its unique style—and sales model—to China by Paula M.
Miller For a truly global experience, try stepping off the streets of Shanghai into one of IKEA’s largest outlets. IKEA did well to adapt in China, although it took numerous changes to its strategies and more than 12 years for the company to become profitable in the Asian nation.
Human resource management and labour-management relations in China are different from those in other countries because of different political and economic systems and social and cultural backgrounds.
Lots of changes have taken place in human resource management since . Human Resource Management 04/26/ Human Resources Human resource management (HRM) entails the effective utilization of human resources within an organization by managing people or employee-related activities.
HRM is a comprehensive and strategic approach for managing employees and the work place environment and culture.