F- Human Resources Case Study

Human Resources Case Study – Answer the questions below the narrative (4 points each)
Background
IKEA is a Swedish home furnishing retailer that sells well-designed, functional furniture at low prices. IKEA’s dream is “to create a better everyday life for the many people.” In IKEA’s language, the dream’s realization lies in the combination of the company’s “business idea” and its “human resource idea” which is “to give down-to-earth, straightforward people the possibility to grow, both as individuals and in their
professional roles, so that together we are strongly committed to creating a better everyday life for ourselves and our customers.”

IKEA’s Swedish heritage is important in the company, as demonstrated by its training for staff on Swedish culture. The Swedish national values of commitment to, and time with, family and community, combined with concern for a healthy environment, are strongly reflected in IKEA’s organizational culture and management practices. These values can be seen in its strategic approach that acknowledges work-life balance, to its recognition of the importance of coffee breaks in a pleasant environment for all staff for social interaction. Work-life balance, explains Jill Burgess, human resource manager, is “a priority in its own right in IKEA’s business plan.”

Work-life balance extends naturally from the company’s Swedish cultural roots and its “priority of focusing on co-workers to develop the corporate culture,” according to Anders Dahlvig, IKEA president. Work-life balance is expressed, for instance, in paid days off for all staff for first day of school leave, marriage leave and “moving house leave”. It is also expressed in the following areas of existing work-life balance offerings, including flex-time (variation in start and finish times); special shift arrangements (for example, early shifts only); non-standard work weeks (for example, longer but fewer work days per week); emergency leave (for a domestic crisis like a flooding); public/community service leave (such as working on a public service board); leave for caring for dependents; parental leave; sick children leave; information about childcare; employee assistance programs; information and advice on work-life balance; and health promotion.

Health Promotion
One example of combining national and organizational cultures is the health promotion program in IKEA’s Stoughton store. The workforce is mainly composed of “staff who bring enthusiasm, commitment and energy,” according to Burgess. In addition to subsidized healthy meals from the large and popular public cafeteria, all employees can take advantage of free podiatry (medical foot care) and massage sessions during work time. Burgess believes it is important that “co-workers generally see IKEA as investing a lot in them—and the feedback we get suggests they do.” Offering podiatry and massages relates in particular to the physical nature of much of the work, with staff often working on their feet and wearing protective boots.

Doing physical work is not the exclusive to shop floor staff; departmental and senior managers all help when needed. Business Controller David Montgomerie has taken advantage of the massage services. This was a new experience for him and although his initial motivation was the novelty value and curiosity, he now believes promotion of health awareness and general fitness is very important. The most recent initiative in IKEA’s health promotion program is an upcoming Fit for Work week. IKEA will offer a range of fitness and occupational health activities during that week. The high rates of staff participation for previous Fit to Work weeks indicate that this program has been well-received by staff.

Outcomes
On an individual level, work-life balance programs help people balance work with other life factors. Burgess notes that “in some cases it can offer the opportunity to experience something new and benefit from it.” In organizational terms, work-life balance is a “win-win situation.” According to Burgess, it increases morale and commitment by improving psychological contracts and gives “something tangible to staff so they perceive IKEA as a caring company that they enjoy working for.” Ruth Huxley, deputy store sales manager, reinforces this view. According to Huxley, “the way in which IKEA works with work-life balance arrangements has a very positive impact on co-workers…it makes them feel that the company cares about them as individuals and, as a result, gives them a greater sense of loyalty.”

Burgess notes that above all, work-life balance programs “send the right message of the company’s culture and support it with actions.” It is noted that managers are central to delivering work-life balance initiatives. “The message from managers to co-workers has to be, ‘Don’t just take time off work for life factors; let us in, talk to us and we can try to support you,’ ” asserts management. In this way, IKEA is open to new ideas for work-life balance programs.
Case Study Questions
1. In addition to the types of work-life balance arrangements at IKEA, what other initiatives can you think of?

2. How would you describe the management style of IKEA?

3. List and discuss five benefits that IKEA could expect to see from their work-life balance and health promotion policies.

4. What other nutrition and physical activity recommendations would you make for incorporation into IKEA stores?

5. What other resilience and built environment recommendations would you make for incorporation into IKEA stores?