Reflection Report - IKEA

Reflection report IKEA
Prepared
by A.Malik Abdalla
Studying the four management functions of the
company I chose (IKEA) has drastically helped me
understand the concepts of management that we
have learned in class.
I have always found that things are better
understood when applied in apprehensible ways
such as case studies and presentations.
The project made the concepts of short term and
long term goals clearer to me. I was introduced to
the interesting idea of sustainable growth and how
firms and companies use it to avoid borrowing
money from credit loaners and banks.
Furthermore, I found it interesting that IKEA is
planning to become a clean energy company by the
year 2020. They can accomplish that feat by
actively using their own waste products to their
advantage and by using recyclable and renewable
products.
What helped me the most to understand the
subject was the organizing function. I found that
most of the ideas we have discussed in class
showed up in IKEAs organizational structure.
For example, the ideas of span of control and

departmentalization are more easily understood
when you apply them than study them in theory.
IKEA has always been a centralized company.
It is expected to be uniform throughout the globe
and they definitely faced some problems with
regards to the different cultures found in the
various countries they operate in.
IKEA has found various ways to remain uniform
regardless of the many cultural differences facing
it worldwide.
Effective organization is very important as well.
Repsonsibility for logistics, transportation,
distribution, and the purchase of raw materials will
always be handed over to the relevant depatments
ot oversee.
We have also thoroughly discussed the various
types of leadership used by firms throughout the
world.
I found it very interesting that IKEA uses four
different leadership styles in the various
departments they have.
IKEA ranks 19th on the list of the most successful
companies in leadership worldwide.
First of all, they have embedded both the
democratic approach and the autocratic approach
at the company, two very different leadership
styles.
The first of which requires a very democratic

approach and consulting with the employees for
their suggestions and ideas.
The second one is very autocratic in which the
owner of IKEA chooses the ultimate decision, sets
the objectives and assigns the tasks to the staff.
The other two approaches are the paternalistic
approach and the leadership by example approach,
both of which require a very open way of
communicating with the employees, and to make
them feel safer and more comfortable providing a
second home to the coworkers at IKEA.
To motivate their employees, IKEA applies the
Maslows hierarchy of needs program, that ensures
all of the workers many needs are met.
Finally, the controlling aspects of the company
showed me how IKEA chooses to supervise its
departments and workers.
It is all about making sure that everything occurs
in harmony with the principles set and the plans
developed.
Controlling with the regards to the human
resources department consists of three objectives:
1.Attracting and recruiting the right people for
the right jobs.
2.Helping managers recruit and develop their
own co-workers.
3.Taking care of employee benefits and
compensation.
As for the maintenance and safety, it is to make

sure that IKEA is a safe and functional place for
both the visitors and the employees.
IKEA accomplished that by strictly following the
rules and regulations and checking the safety
conditions of the supplying companies.
IKEA also supervises three different departments:
1.The accounting support department, which is
controlled by checking all invoices and double
checking all of the work done by the
accounting employees.
2.The payroll support department, which is
controlled by making sure all the employees at
IKEA are properly compensated and paid for all
of the overtime hours they have worked.
3.The store control department, which in
controlled by achieving all of the companies
short term and the long term goals, ensuring
profitability.
From what I have learned in class, I have
understood most of the subjects we have
discussed in class.
However, after studying these subjects thoroughly
and through practical practice, it has increased my
understanding of the four functions to a great
extent.

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What are the main organizational structures discussed in the report?

What are the different leadership styles used by IKEA according to the report?

Reflection report IKEA

For example, the ideas of span of control and

The first of which requires a very democratic

As for the maintenance and safety, it is to make

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