Management Report: Minimum Wage Living Wage

MANAGEMENT REPORT
MINIMUM WAGE LIVING
WAGE

Table of Contents
ABSTRACT.....................................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Minimum Wage and Living Wage..............................................................................................4
Current wage rate.........................................................................................................................5
Issues faced by IKEA related to sustainability...........................................................................6
Equality and Human Rights Commission....................................................................................6
Low pay Commission..................................................................................................................7
Human Resource Management approach....................................................................................7
Recommendations........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

ABSTRACT
The minimum national wage is related to the wages per hour that is given to the workers in UK
and is reviewed annually in April by the government of UK. The main advantage of offering
minimum wage rate is to provide income for the unskilled people which is the step taken by the
government to reduce the poverty. The issue faced by IKEA company related to sustainability is
the product and environment related issue and recommendations is given in order to eliminate
the problems faced by the company.

INTRODUCTION
Management helps in controlling and directing the overall activities and acts of the
organization for the achievement of the goals of the company for which it is incorporated.
Management report helps the managers to inform about the various aspects if the business which
helps the management to take appropriate decisions(Krepysheva, et.al, 2020.). This report will
cover the issue related to minimum wage and living wage of the company IKEA, a home
furnishing retailer its aim, legal regulation, cost. The report also highlights the company's
timescale, cost and prioritization.
MAIN BODY
IKEA company is a home furnishing retailer and is the largest seller of furniture in 21st
century. The company is operating more than 300 stores in different countries around the world.
The company was founded by Ingvar Kamprad Sweden(1943). The company became an
international retailer when it opened its first store in Norway in 1963. The company further
opened its stores in many other countries like : Germany in 1974, Australia in 1975, the United
Kingdom in 1987 etc(Szerakowski, 2017). The main aim of the company is to offer wide variety
and range of well-designed and home furnishing products at vary low prices so that maximum
number of people can afford to buy the products of the company. Furthermore, the company
wants to establish its brand image by manufacturing the environment friendly furniture.
Minimum Wage and Living Wage
The minimum national wage is related to the wages per hour that is given to the workers in UK
and is reviewed annually in April by the government of UK(McBride,et.al, 2018). Minimum
wage is the lowest wage per hour that is paid to the worker in the organization and is the legally
paid price which is paid to the workers. This system was introduced to raise the income level of
the unskilled workers and for underdeveloped countries. The wage is calculated on the hourly
basis and is applicable to all type of jobs in UK. The national minimum wage is decided on the
basis of the age and the workers who are 23 or above are paid national living wage and is
considered as the highest minimum wage(Boeri, et.al, 2020). Apprentices over 19 years of age
are entitled to national minimum wage rate. Casual workers, part-time and temporary workers
are entitled to minimum wage rate whereas the living wage was introduced by Living Wage
Foundation and have two different rates the UK rate and London rate. Generally living wage is