The organizational behavior of IKEA LTD

What is organisation behaviour? It is combination of two different words organisation and behaviour At first look it seems that it is somehow the way by which organisation behave but it is totally different from this. Organisation means different peoples,persons,individuals join together for a specific goal or purpose of a specific community. And behaviour means study of those aspects which effects these needs thinking motion psychology action within the organisation is called behaviour.

My case study is about IKEA a Swedish company established in 1943.Ikea,s founder is INGVAR KAMPRAD the fourth richest man in the world. Its owner is unknown but it is believed that he belong to Kampar family.Ikea,s main products are household goods like furnature,kitchen goods,wardrobes,clothes.There are 17 branches of Ikeas in Sweden and more than 310 stores in more than 38 countries.

[http://ezinearticles.com/?billionaire-attiributes…..modesty:-ingvar-kampard-ikeas-founder-and-owner&aid=274361,Thursday2nddec,2010.]

2: MAIN BODY

IKEA is a rapidly growing company. It is increasing the number of its franchise and store in all over the world. Its mission statement is:

Ikeas mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them.

[http://www.samples-help.org.uk/mission-statement/ikea-mission-statement.htm]

Concept of IKEA is:

The IKEA concept is founded on a low price offer in home furnishing.

[http://franchisor.ikea.com/showcontent.asp?swid=concept1,Thursday 3rd Dec,2010]

Now we are going to discuss that what is the role of our subject organisational behaviour in the success of any organisation and factors that works behind the success of any organisation. Organisational behaviour exist in business and management course is due to the need of those charges with managing people and system at work to inform their thinking as they address the underlying social and behavioural issues that confront them.

Critical success factors are the keys and elements which an organisation must look in order to gain success.

Or

The steps for any organisation to follow for its successful future.

Within organisation there are different areas where these critical factors works some of them are as below:

Factors related to management.

Organisations goals,objectives,mission,strategic successful factors.

Individual critical success factors.

Cultural critical success factors.

Not only these are the factors responsible for the success of organisation but there are a lot of other factor work behind the success of any organisation.

[http://rapidbi.com/created/criticalsuccessfactor.html, 5thDec, 2010, 11:00pm]

2.1: There are a lot of factors,ways,key issues, steps that works for the success of any organisation. Just like human body as human body is made up of different cells same as organisation is made up of different type of individuals. More develop is the individual, more effective is the organisation. Team work also a necessary part for the success of organisation. Not only the team but involving everyone in everything is also important. Communication between the team members and between individual and leader is also very important. And if we look toward any organisation by doing SWOT analysis it will also enable us to understand the factor of success. Be aware of the strength and weakness of organisation if any organisation wants to gain success. These two are the internal sources and within the control of organisation. On the other hand also be aware of the opportunities and threats you are facing.Opportunties will enables us to know the ways of making our organisation more successful and thereat such as, threat of downsizing,bankcrupting,loss enable us to adopt safety measure before time. But this experience can only b gains by doing swot analysis.

PESTAL analysis is another factor for the measurement of any organisation success or a factor for the success of any organisation. To deal with the political issues is really very difficult rather these issues may be inside the organisation or outside the organisation in your country. If the social environment of any country is not suitable for a successful company then how the company would be able to gain success in that particular country. Environment also include much in the success of any organisation if you are unable to meet the unfriendly environment its mean you are unable to gain success in business. You should be technologically as advance as the other organisations are in the markets so the you can meet competition in market. And being economically strong is another advantage for successful organisation. There is a legal restrictions in any country according to their government so you have to obey all these legal obligations for success for example in united kingdom you have to pay tax is a legal obligation .many more according to the law of any country.PESTAL analysis is also a best tool to gain success for any organisation.

After SWOT and PESTEL analysis there are many other important factors which count a lot toward the success of an organisation. Firstly the goals mission vision of any organisation should be clearly defined so that everybody may know the purpose of that organisation like Ikeas have a clear mission statement and concept .Then these mission should be related to the structure of organisation neither the organisation is about car and mission statement is about clothes. It must b clearly related to the strategy and structure of

organisation. the structure of organisation should be flexible so the to meet the changes easily and to fit in any circumstances easily.Recuritment is also a very delicate part of organisation that right person is doing the right job.

Next step is to identify the root of problem. Where the problem is? The problem is in the organisation or within workers. Then gather the information about the problem and possible solution of that problem. After identifying the problem making a plan for the solution of that particular problem what we called implementation of plan.

2.2: There are a lot of problems in the way of success of any organisation which are created by different means like

Competition among management is a major problem. If there is a conflict between management then how would they be able to solve the conflict in the organisation?

Conflict among the groups in an organisation.One group tries to take advantages of the weakness of the other group. And to show their priority over the others.

Then there is a conflict between the management and the group or the leader of group. Due to the different issues like position,salaery.

Conflict between the group leaders. In order to show their efficiency over the other group counts a lot problem in the way of success of any organisation.

Competition among employees in another hurdle in the way of success of any organisation. Their competition cast a bad impact on the overall progress of an organisation.

Unclear and ineffective strategy not related to the overall organisation is also a big problem in the way of success of organisation. Due to this you are unaware of the real purpose of your work weather the work you are doing is beneficial for organisation or not.

If the management is unable to control the whole organisation then it is also very bad for the health of organisation. Development can face a huge problem if the management is not able to control whole organisation. Or if the management is ineffective.

If the management is sufficient to meet the need of whole organisation then the other important factor is to identify where the problem is to discover the real area where the problem lies is also a very difficult. After identifying the basic source of problem next step is to make possible steps in order to solve the problem. Look precisely which step to be taken in order to solve that problem.

Lack of proper leadership or proper leader ship is another major source of creating problem within the organisation. If the leader is not able to control his group then how he will be able to prove batter for the whole organisation. And if the leader misguide his group from right toward wrong way and not utilize his own and his group ability in positive way then how the organisation will be able to gain progress.

Lack of communication between management and leaders and employee is another major reason for creating problem in the way of success of any organisation. Auto critic management where nobody is allow to communicate with the manager directly. And there is a big gap between the management and employee. This type of management is really very harmful for the organisation

Hippocratic management.

If the organisation is not happy with its manager then there no chance for the growth of any organisation. When somebody works within any organisation it is just like their home their family because they spend more time with that organisation then their family they develop a deep affection with that organisation. And if they got angry how the organisation can be happy. They will feel very unfit in that environment their concentration will divert from their work and it will cast a really negative impact on the organisation.

Another huge problem in the way of success of any organisation is environmental impact which is a big hurdle in the way of any organisation. This is not only the inner environment of organisation but the outer environment also creates a bad effect on the development of organisation. Within the organisation this is so because the employee is unable to fit themselves with the environment of that organisation. Different reasons are included in that environmental dissatisifaction.Onemain reason is the politics which doesn’t allows the new employee to fit in the environment of that organisation because they are not willing to accept new entry are due to some other reason maybe they feel that they are having much more ability as compare to that new person so they create problem for that new person which ultimately create problem for the entire organisation.

When the employees are not satisfied from their position in the organisation then this is also a serious matter and create problem for the organisation. If someone in an organisation is highly qualified and having not a good position and another who is not much qualified but acquiring good position in an organisation then this also not good .Recruitment is also a very sensitive matter within an organisation right person having right position in an organisation .Then the organisation will work more effectively.

Another concept about the conflict within the organisation is of two types one is functional other dysfunctional. functional conflicts is positive type and though there is a conflict but due to this type of conflict there is no disturbance in the organisation n if this functional type of conflict or you can say this group of conflict face any problem they try to solve it in a positive way obeying the rules and regulation of that organisation and finally solve their conflict without creating any type of disturbance. Then there is another type of conflict which is opposite to this conflict known as dysfunctional conflict. In this type of conflict they use their power in negative way or you can say in order to solve any problem. Not only harmful for them but for the whole organisation and can cause huge destruction for progrees,profit,politics.

[Organisational behaviour a introduction/text 5th ed by David Buchannan and adrzej huczynski]

2.3: the next step is how to handle these problems which creates hurdle in the way of success of an organisation there are different method to handle these problems which are as under:

Stephen Robbins outlines the values underpinning most organisation development effort as follows

The individual should be treated with respect and dignity or with trust and confident.

The organisation climate should be characterized by trust openness and support or we can say open communication and honesty.

Hierarchical authority and control and deemphasized or be careful about the feeling of others.

Problems and conflicts should be confronted, and not disguised or avoided try to solve the conflicts do not avoid them.

(2001,P.553)

Everyone within the organisation whatever he or she may be means that whatever may be his or her position in the organisation should feel free to communicate with the senior management. And feel free to express their views and to explain their complains which they are having with that organisation. Due to this communication organisation maybe able to know that where the problem is and how to solve it as soon as possible before then this “p” become a full problem.

Employee must have this assured that their opinion is very important for the organisation and management will pay attention toward what they said and what type of difficulties they face. By doing this we can also reduce the tension in organisation.

Friendly and positive attitude toward employees if another source of reducing conflict .by doing this we are caring about employee self respect and developing their confidence which will motivate then in the future and then they will be very useful for the organisation.

Electronically resources such as mobile internet can be use for fast conversation it’s not only join the whole organisation but also enable the management to know the conflict as soon as possible.

Then there should be proper strategy to solve the problem. Never try to solve the problem without strategy because it can create more problem and conflicts then to solve the problems without proper strategy

[http://www.merinews.com/articles/key-to-success-of-an-organisation, Wednesday 2nd dec,2010]

Stress is a kind of burden due to which human mind work under pressure. It is mental processes which affect our life to a huge extent. Our mind work under pressure and wrong things occur because of this stress. Because we are unaware of our action because of our mental absence and this divert our attention. Our mind is somewhere else and our body is somewhere else. Our mind due to this stress is not work with our body. This is an individual activity but effect whole organisation. Because if someone mind is work under stress then the person can made mistakes and if individual made mistakes it will disturb whole group and if the group disturb the whole organisation will disturb automatically.

(Organisational behaviour by Fred luthons 10th ed.P376,408.)

Working without stress in another factor to solve the conflict if your mind is free from tension at least when you are on work then you will b able to utilize your forces more effectively for the success of organisation. Which you are not able to do when you work under stress.

Not everyone within the organisation is able to handle the worse situation. This is an ability not comes through knowledge but from experience. More you go through this type of situation like conflicts disturbances decline of organisation loss to handle these situation it is necessary to have knowledge but how to experience this knowledge is more important than just to have knowledge. You can say how you would be able to implement your knowledge. Or put your knowledge into action.

Satisfaction of your customers from your service is also a very important thing which you must keep in your mind in order to remove problem from your way of success. If your customers are satisfied from your products than it is really very favourable to your organisation. At least you are carefree from that thing that you are not going to face any type of difficult from them or we can say you are successful from this point of view. If you will provide good service to the customers good response you will get from them.

There should be a give and take relationship among employee and management if they are good with their employee the employee will be more motivated and will work more effectively for the organisation. On the other hand if you provide good customers you will get good response and hence improve the market value of your organisation.

If someone is already expert in handling the situation then it is easy for him or her to take a right action in any situation. And if someone is not then he or she act be do the same thing but there is a need of motivation though he/she have knowledge but not experience so it is difficult for them to control the worse situation but they act in a positive way if the seniors motivate them. This is called expertises vs. motivation.

According to the contingency theory there is no specific formula that tells us how to behave in a right way in any situation but within the limitation of organisation how to handle the situation and find best solution of that problem.

According to the system theory all department of organisation should be interrelated to each other so that we can find where the problem is find the better solution of these problem.

These are the key thing which an organisation should keep in mind to solve the problems faced by that organisation.

[http://www.cliveshaw.com/improve. html,Wednesday1stdec2010]

2:4Globlisation is another aspect which must take into the consideration for a successful organisation. Whole the world has changed into a global village due to which the whole ideas of business is changing and not only the business but also attitudes of different organisation toward each other is changing and fast media is used for business as well. Fast media like internet is widely used due to this gobalisation.Every country has its website. Which not only provide us information about that particular company but also offer online shopping this is so because of globalisation and every organisation wants to beat its competition as fast as possible. IKEA also offer online shopping in order to meet its competitor.

2:5. Managment usually concerned with goal setting resources deployment employee motivation teamwork leadership control and coordination and performance measurement.managment deals with all the criteria mention above. Managment has first to measure the productivity of organisation and then how to pay the workers according to their job within the organisation. By doing this most attention is paid toward more active employee or workers and less attention toward less effective employees and this behaviour reduce their motivation toward organisation because they are already slow and need motivation and here rather then this more attention is being paid toward those who are already working effectively within the organisation so the management should be more concerned toward slow workers then toward fast work. Role of management is to control and arrange the people is such a way that they work more precisely toward the achievement of goals and objectives of the organisation.

Setting goal and objective for an organisation is really very difficult .but more difficult than this is to arrange the whole organisation according to these goals and objectives which is the responsibility of manager. Within the span of control of management is scientific to some extent you can say because they have to experience all those experiments which we called in the language of business goals and objectives of organisation and they have to perform these jobs successfully and result of their experiment should be positive. So that the management can act not only scientifically effective but organisationally more effective.

For a successful management there are a lot of keys or factors or ways some of them are as under

Clear vision manager should have clear vision of what happened in the past what is happening now and what will be happen in future by doing they will not only have a clear view of past present and future

Open communication is also necessary between management and staff.

[Organisational behaviour by GA Cole 1995]

Management is a practical work you cannot learn it by reading books but practical work will help you to learn more about how to manage thing same is the organisation books can only guide you but books cannot train you. But it is not enough that someone is holding the post of manager within any organisation it is not easy to get this post but what is more difficult is to meet all those objectives which are related to the management which is really a difficult task that’s why management is a difficult task. Manager has to play different role at once. he have to meet organisation’s goals and objectives he has to satisfied all the employees he has to look at the progress of any organization in which he is working. He has to look too many thing or we can say to take care of whole organisation that everything is working on right place in a right way that’s why management is called a cornerstone of an organisation that fills every facet of organisation.

2.6: On the other hand not in every part of life there is the need of management or we can say in every field of life there is not any manager post such as in house there is no manager but they still manage house all the household work whatever the type of work it be. Or in school teacher is no manager but they still manage the school there are many example which tells us that the word manager is not necessary for every field of life but management is necessary.

The management process is also a very difficult function there is not an office or a chair on which manager have to sit and vary on all his activities but manager have to move thorough out the organisation and look around all the activity within the organization but not only within the organisation but also outside the organisation in the form of competition.Manager has to look all these side very keenly so that the organisation can work more effectively.

2.7: The first and most important challenge of management is how they deal the conflict in organisation and how they beat the competitors in the market. Though managers have to do a lot of other activities but their efficiency is tested by overcoming these conflicts their ability to solve these problems along with the other problems within the organisation and in market. Another important challenge face by the management is to meet the changes. These changes may be due to environment due to culture due to competition due to grouping or any other reason. These challenges are the real test of any management how the management by using its available resources can overcome these difficulties.managment powers and control is tested by facing these challenges and solving within the limitation.

2.8: The basic value of management is to control. This control is of different types. To control all the areas within the organisation in such a way that organisation move toward success then failure. To control conflicts among the employee to control the politics within the organisation to control over production.

If there is no management within the organisation then there is the disturbance in every part of organisation not only within the organisation but also in downsizes the total impact of organisation in the market. Everyone within the organisation will work according no one is here to control them to have a look on their work which is really necessary for the success of any organisation.Althoug the stress free environment is necessary for the success of organisation but sometime use of power of organisation is also necessary for the betterment of organisation this is the value of management in the organisation.

Recruitment and selection of effective educated and experienced employee is also a very necessary part of management. To recruit the right person at right place is a very important decision. Not only experience but knowledge of management is also a necessary part of organisation.

(Management and organisational behaviour by Laurie j Mullins 6thed,)

3: conclusion

From above discussion it can be concluded that the necessary part of any organisation are people and without people it is impossible to make any organisation. For the success of any organisation management is necessary and in order to meet difficulties faced by the organisation. And due to globalisation whole the world has changed into a global village and what we need is the individual and time.Management no doubt is a cornerstone for the success of any organisation.

In order to move successfully in this competitive environment not only management necessary but to identify the problem in the way of success of any organisation and the possible solution of that problem as soon as possible so that the competitions may not go ahead from your organisation and be able to took your position in the market.

Management organisation behaviour problems people are interrelated to each other in this course work. We cannot discuss only one and leave the rest all these aspects are necessary for the success of organisation. And we must have to study all these criteria for a study of organisational behaviour of this coursework. And all these are also related to our case study of IKEA.IKEA must have passed through all these aspects to gain success as it is a growing company in these days.