Definition Of International Human Resource Management Essay Example
Ikea is considered the ideal multinational corporation in today's world and is globally recognized as a frontrunner in the human resources industry. The Swedish retailer continuously receives high distinctions, including being ranked in the "top 20 most desirable employers in the world" and among the "top 100 companies excelling in human capital development" (B, IIS. 2005). These accolades confirm the company's commitment to promoting a positive atmosphere for those affiliated with Ikea.
As per Ikea's website, the company prioritizes its people as their primary strength and asset. The global workforce of 160,000 employees makes it one of the leading employers globally (Mendenhall 2015). Among the significant markets for Ikea is Germany with 44 stores, where it is a top seller. In accordance with the sustainability report by Baldwin S in 2014, Ikea's sales in Germany accounted for 14% of total sales compared to other nations such a
...s France and the United States that had 9% and 12%, respectively. Furthermore, Germany ranks among the top five countries purchasing goods and services from Ikea globally while accounting for 4% of purchases worldwide. It also sells approximately15% of all products sold under the brand name.
In 1975, Ikea moved to Denmark and since 2001, the headquarters of Ikea systems that owns and franchises the concept is located in Amsterdam, Netherlands. The Amsterdam-based headquarters develops internationalization ideas and models for conducting business. As for its internationalization approach model, Ikea follows an ethnocentric approach. Additionally, Ikea is dedicated to its human resources.
The organization strives to create a community-focused and globally-aware environment, emphasizing decentralization for increased employee responsibility and accountability. IKEA's code of conduct, known as IWAY, is applicable to all global stores
and provides guidelines for various areas including general conditions, harassment, abuse, and disciplinary actions. Due to its extensive use, the document may require modifications to comply with specific nation-state standards.
Germany has minimal political autonomy compared to other countries as Ikea enforces similar policies, laws, and processes worldwide. The company's website emphasizes that despite being from diverse backgrounds, they share humanistic values of togetherness, simplicity, and cost consciousness. Ikea's recruitment and development policies are consistent across all markets, making them a Host Country National System in Germany. This approach is cost-effective and eliminates language barriers.
Ikea in Germany follows a vision-focused recruitment philosophy to improve many people's lives. This approach ensures cultural differences don't hinder hiring. Employee Protection Laws, which aim to safeguard employee rights, are strict regulations in Germany. The Civil Code, The Works Constitution Act and The Act on Collective Agreements are key acts related to employee rights recognized by the International Labor Organization.
In Germany, national legislation mandates that all employees must have a written contract before starting work to prevent worker exploitation and enhance workplace safety. German workers are entitled to protective benefits such as parental leave for up to three years, reimbursed at 67% net earnings over a 14-month period by the Social Security System (with payments ranging from 300 euros to 1,800 euros). Additionally, employers must pay full wages for up to six weeks during an employee's sick leave.
In order to receive 70% coverage of their gross salary in the case of long-term sickness, an employee must have worked for at least 4 weeks and remained employed for a minimum of 6 weeks. It is prohibited to terminate employment while
on sick leave unless there has been unlawful conduct. The legal minimum wage was established at €8.50/hour in 2014.
The minimum wage is applicable to all sectors and industries, including Ikea in Germany. The salary for different positions at the company, such as cashier, sales, warehouse, and logistics roles are subject to variation. In Germany, part-time work has been advocated as a popular form of female employment since the early 2000s labor market reforms aimed at expanding women's employment opportunities and countering the West German model of male breadwinner/single earner.
According to the Institute for Employment Research IAB, in 2014, 57.8% of female workers and 20.1% of male workers worked part-time. Bundeslaender regional state laws allow employees to take five days of paid education leave (Bildungsurlaub) per year for adult education purposes such as languages, health, political and societal topics or job-related training. Ikea's human resource strategy prioritizes taking care of employee needs to increase productivity and commitment; however, this holistic approach proved unsuccessful due to individual requirements.
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