Organizational Theory and Behavorial Problems/Ikea
Organizational Theory and Behavioral Problems/IKEA
Ingvar Kamprad, founder of IKEA, has built a monumental business from the ground up. Through innovation and creativity, he gained valuable market share in an untapped market. By providing a great product at a great price, through exceptional customer service, IKEA has distinguished itself among some of the top international organizations.
The common thread throughout the case is a patriarchal style of leadership. Although Kamprad’s style of leadership has led to the success of his business, I will assume that problems are beginning to surface and that future issues are being questioned. Through his leadership, Kamprad has taken a hands-on approach to running his organization and is involved at great lengths in the day-to-day operations of his business. Simply defined, a patriarch is “a man who rules a family, clan, or tribe”. (www.websters.com) In this case, IKEA is treated and run much like a family, clan, or tribe. Everyone is expected to have the same outlook on their position, the organization’s goals first in mind, and perform their job to benefit the organization, not the individual.
The most immediate threat to IKEA is the difficulty in finding employees who will accept and adapt to IKEA’s philosophy. Job security is a tremendous issue with modern-day employees. Often, employees are more concerned with doing a mediocre job to secure their position than to take risks and be creative due to a fear of losing their job. Current economics has instilled a fear in employees that hinders creativity and the offering of suggestions and ideas.
Another threat perceived by some employees as well as by some consumers is that IKEA is expanding at a rate that is difficult for them to keep up with. Stores are being established at multiple locations internationally at a rapid rate. This leads to the issue of whether or not IKEA is capable of handling this level of expansion and whether or not they have ample
Ingvar Kamprad, founder of IKEA, has built a monumental business from the ground up. Through innovation and creativity, he gained valuable market share in an untapped market. By providing a great product at a great price, through exceptional customer service, IKEA has distinguished itself among some of the top international organizations.
The common thread throughout the case is a patriarchal style of leadership. Although Kamprad’s style of leadership has led to the success of his business, I will assume that problems are beginning to surface and that future issues are being questioned. Through his leadership, Kamprad has taken a hands-on approach to running his organization and is involved at great lengths in the day-to-day operations of his business. Simply defined, a patriarch is “a man who rules a family, clan, or tribe”. (www.websters.com) In this case, IKEA is treated and run much like a family, clan, or tribe. Everyone is expected to have the same outlook on their position, the organization’s goals first in mind, and perform their job to benefit the organization, not the individual.
The most immediate threat to IKEA is the difficulty in finding employees who will accept and adapt to IKEA’s philosophy. Job security is a tremendous issue with modern-day employees. Often, employees are more concerned with doing a mediocre job to secure their position than to take risks and be creative due to a fear of losing their job. Current economics has instilled a fear in employees that hinders creativity and the offering of suggestions and ideas.
Another threat perceived by some employees as well as by some consumers is that IKEA is expanding at a rate that is difficult for them to keep up with. Stores are being established at multiple locations internationally at a rapid rate. This leads to the issue of whether or not IKEA is capable of handling this level of expansion and whether or not they have ample