Importance of Human Resources and Financial Management in IKEA

IKEA

Table of Contents
INTRODUCTION...........................................................................................................................3
Human resources.............................................................................................................................3
Motivational organization culture................................................................................................3
Importance of motivation.............................................................................................................4
Theories of employee motivation................................................................................................4
Financial management.....................................................................................................................5
Importance of financial resources...............................................................................................5
Financial planning........................................................................................................................5
CONCLUSION................................................................................................................................6

INTRODUCTION
IKEA is one of the biggest Swedish founded European multinational retail company
operated in 433 stores worldwide offering customers wide range of products and services
varying from furniture, home decor products and kitchen fitting applications. This report also
explains human resources importance for company and how it enables to motivate employees
and build strong culture in business organization. It also analyses financial management
importance and how it establishes innovative platforms for company to build parameters of
growth.
Human resources
The human resources department importance for IKEA can be understood as the brand has high
vital department which has the function to look after recruitment of skilled employees ad train them with
strong advanced sills. Human resource department has the function to maintain employee productivity,
provide them with proper working standards in production department and look after their grievances.
IKEA gives high importance to all employees, team members and the human resources working in all
departments and management hierarchies of company. IKEA as global brand has large number of stores
worldwide where employees have huge role to play in serving the customers with efficient services and
maintain high quality standards in delivery of products. Leaders have the role to guide employees through
their training session and keep them motivated to enhance their productivity levels with cost efficiency to
reach the set company goals. The leaders should analyze the various parameters where employees can be
courage and use the human resources optimum and build their technical working knowledge of practical
production field (Madura,2020)
Motivational organization culture
Organizational culture has huge role to play in enhancing the productivity levels of human
resources in company as it is imperatively important for companies to build dynamic working culture,
motivate the employees and cultivate the sense of belongingness in them. Leaders and managers in IKEA
have developed dynamic encouraging organizational culture where the operational structure is providing
them with opportunities and platforms to showcase their talents and learn new skills to harness in
production. There is immense importance given to maintain ethical standards in working conditions
provided to employees as friendly and supportive organization culture keeps them retained in company
for longer periods. Organizational culture provides employees with identity and connects them with
company goals along with encouragement to reach self-accomplishment growth targets and the elements
can be categorized into purpose, ownership, community, effective communication and good leadership.
Cultivation of strong interpersonal skills among employees and dynamic leadership enable cooperative
and smooth communication flow among all management heierchries (Brandl,2020).IKEA believes in
building competing values among entire organization culture which can be understood as follows: