IKEA, a growing multinational firm (present in 44 countries), is characterized in its presence abroad by a desire to maintain some organizational model to enhance one's home environment. With globalization and increasing competition, companies must renew their organization to become truly "human societies".
In the same vein as Renaud Sainsaulieu in his book (dated 1995), ‘Sociology of Business, Organization, Culture and Development', its focus is on the firm IKEA and its particular organizational model (the Swedish model) from a social perspective where the business is portrayed as a social institution. We try to see through the setting up of IKEA's operations in France, how the organization is negotiating cultural pluralism in its unique model.
Although the ready-to-assemble furniture firm IKEA is a multinational organization, present in many countries, an original culture dominates, through the production and sale of company furniture, the Swedish model is indirectly exported. The first store opened in Sweden in 1958 and today, the company has over 84,000 people working in 170 stores and factories in 44 countries as diverse as Poland, Russia, Australia, China, and France alone has 14 stores scattered throughout the area.
The issue of intercultural management is central to its success. Symbolized by the blue and yellow colors, IKEA has emerged as the "leading furniture seller on the planet ", and has had to adapt its design management, influenced by the Swedish methods to develop a transnational corporate culture necessary for operating in a globalized scenario. The IKEA corporate culture is very defined, sometimes causing controversy, as seen through the originality of its methods of recruitment.
The founder of IKEA, Ingvar Kamprad, was anxious to create an organizational structure that would be independent and ensure long-term security.
We will apply the tools presented by G. Hofstede(Trompenaars as a secondary source) to manage cultural diversity in business and potential conflicts that may arise in the study of the installation of the Swedish group IKEA in France. The official company website has been very helpful to approach management methods advocated by the Swedish model and compare them to the French model. We will try, whenever possible, to go beyond the generally positively hyped image built around the firm and consider other information, sometimes contradictory.
Hierarchical distance and internal promotion:
Power Distance Index measures the degree of inequality expected and accepted by individuals. In the business world, power is distributed unevenly out of necessity and it is possible, by verbal statements and attitudes, to highlight these inequalities.
France, a Latin and Catholic country, has a high Power Distance Index. In enterprises, the pyramidal organization predominates. In general, French employees accept, respect, or even seek the authority of superiors. Subordinates expect to be told what to do. Superiors and subordinates consider themselves unequal "by nature". Moreover, their relations are often charged with emotion. Philippe d'Iribarne in his “Logic in Honor” wrote: "The often highly emotional hierarchical relations in France are amazing. The variety of feelings towards superiors is extreme: you can love them or hate them with the same intensity. Countries with high Power Distance Index often give great importance to social position, diplomas (according to articles by cross cultural communication expert Trompenaars), and promotion is based on seniority and qualifications.
[...] Japan is not contrary to the 'feminine' countries. The culture is comparatively more masculine in France and collectivism, power distance, and uncertainty are very marked. The implementation of IKEA in Japan may bring leaders in facing a far greater cultural challenge than in France. Indicative bibliography by Oboulo.com http://www.springer.com/engineering/production+engineering/book/978-1-84882- 372-3 http://www.jstor.org/discover/ 10.2307 /258396?uid=3738256&uid=2129&uid=2&uid= 70&uid=4&sid=21101337807603 http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved =0CDUQFjAA&url=http%3A%2F%2Fteachers.sduhsd.k12.ca.us%2Fsfarris%2FFiles%2FEn glish12%2520Files%2FChildhoods%2520End%2FIndividualism%2520v%2520Collectivis m.ppt&ei=6RmvUKXFDYTwrQegmYCAAQ&usg=AFQjCNFlz_wtFh7kXubfXmDbst9ehpmifw http://www.science20.com/gerhard_adam/individualism_and_collectivism http://www.centraltest.com/ct_us/article-benefitss-simulation-exercices.php Renaud Sainsaulieu, Sociology of the company, Organization, Culture and Development 1995 Libération, Jean Pierre Roussel February 2005, "IKEA recruits with games and without CV" IKEA official site Concept Trompenaars "at IKEA you are rewarded for your contributions fruitful ( . [...]
[...] IKEA's official website has been very helpful in approaching management methods "in Swedish" and comparing them to the French model. We will try, whenever possible, to go beyond the "watered down" vision by the firm, and also take information, sometimes contradictory. I / Distance Mode and internal promotion Power distance index (PDI) measures the degree of inequality expected and accepted by individuals. In the business world, power is necessarily distributed unevenly, but it is possible, in speeches and attitudes to highlight these inequalities or contrarieties to the perspective. France, Latin and Catholic countries have a high PDI. [...]
[...] It has set up values shared by all members of the organization, a system of shared meanings. In IKEA this corporate culture is very present, sometimes causing controversy, as can be seen through the originality of its recruitment methods. 'Recruitment by simulation” "IKEA recruits with games and without a CV" is the title given by a journalist from Liberation to his article on the new atypical method of hiring at IKEA. Indeed, at the opening of a Parisian shop of the brand in February 2005, the screening took place through the assembly of parts such Lego, multiple choice questions about welcoming customers or on the face to a false-face with angry customer whereby applicants were tested. [...]
[...] As IKEA emphasizes the quality of the work environment, French companies are more focused on results. Feminine values of the country of origin can be found in the "IKEA code of conduct," the "IKEA Way on Purchasing products for home improvement" (IWAY), established in 2000. It defines the requirements vis-à-vis suppliers and social conditions of work, child labor and the environment. The result is a vision and a management staff, with a different side of the feminine vision of IKEA on one hand, and the more masculine of the French companies on the other. [...]
[...] In business, the pyramidal organization predominates. In general, French employees accept, respect, or seek the authority of superiors. Subordinates expect to be told what to do. Superiors and subordinates consider then as unequal "by nature". In addition, their relationships are often charged with emotion. Philippe d'Iribarne's ‘logic in honor' wrote on this subject: "The often highly emotional hierarchical relations in France are amazing. The diversity of the higher feelings is extreme: they can love or hate with the same intensity." Countries with high PDI often give great importance to the social position, and diplomas, that Trompenaars called granted statutes, and promotion is by seniority and qualifications. [...]
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