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1a. Compare and contrast the different organizational structures and culture favored by
Swedish and Americans.
Organisational structure
IKEA Sweden:

Exhibit 1: Sweden. Org. Structure

Organizational structure of IKEA Sweden is function structure, functions are carried out in a
similar way, some functions such as such as research and development are centralised in
Sweden. Other functions such as human resources, finance and store construction also span
the whole company regardless of organisational boundaries. Other support functions
including, Information Technology, Communication, and IKEA Indirect Materials and
Service also provide service to IKEA stores globally.

From which, IKEA can maintain centralized control over function activities and at the same
time take advantage of low cost and enhanced quality from international suppliers. On top of
that, control over strategic direction is improved and functional lay-offs are minimized, in
order to ensure efficiency in the logistics process, the organization has integrated purchasing
and distribution process under one umbrella function.

In addition, IKEA was also applied flat organization structure, the system of IKEA is not
hierarchy that they only have three levels of responsibility between the manager and co-
workers in each store their own.


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IKEA America:

Exhibit 2: America. Org. Structure

IKEA has a lot of subsidiaries in many countries of the world. Franchisees have to carry basic
items, but have the freedom to design the rest of the products, so IKEA America also is
franchise of IKEA, they have many different products and many retailers, and every product
is produced according to the different product lines, so to the product get standards and meet
customer needs and manage its operations effectively, IKEA America have applied the
product structure, aimed at division of tasks for the departments following each product line,
thereby they can easily control and manage of the product line more closely in every
department from production, distribution to sales.

Organisation culture
IKEA Sweden:
IKEA Swedish think the company's culture can help them link with the staff and between
staff leadership to staff, in order to have responsibility and spirit in work process. From
which, they form the principles of organization "foundation of our activities helps us keep the
spirit and vitality of the early and create a feeling of belonging to a large international

Sales and
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Managers ready explains and share with new employees what they need to do and how to do
it, or discuss and offer solutions to issues of risk in the company with staffs, although waste
so much time to accomplish this by their experiences. But main aims of managers to help
employees work the right way and more efficiently.

In addition, the IKEA culture is enabling employees to understand, sympathize and support
each other in their work. Every individual thing has its own authority, and they can express
their ideas, and should feel responsible for improving the way thing is done.

IKEA America:
Contrast with cultures of IKEA Sweden, IKEA America has a lot of difference: such as norm,
value, task and belief of American with IKEA.
Employees of IKEA in the USA, they need to know the person in charge of their work clearly
and they have tend to learn an expertise without experiencing risk, do their jobs adequately
but are not over-ambitious.
American workers do not want to accept the written procedures and principles outlined not
clearly, such as understand all the work to be done in a particular way by manager, they just
need to know who is responsible for decisions in the company.
Summary, organizational culture of IKEA Sweden and the United States that aims to help
improve staff qualifications and work more effectively.

1b. Analyze the relationship between IKEAs structure and culture and the effects on
business performance
The relationship between IKEAs structure and culture: organizational culture and
organizational structure are the two things necessary to the establishment and development
company, these two factors the nature of support each other in the process of running the
company, culture is norm, values and beliefs of the company to employees and vice versa, the
structure helps the company controls, coordinates, and motivates employees so that they
cooperate and work together to achieve an organizations goals.

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The effects on business performance: structure and culture
Organizational structure can be defined as functions with a global market strategy. Thereby
IKEA is able to maintain centralized control of operations and functions at the same time take
advantage of lower costs and improve product quality.
The culture emphasizes efficiency and low cost which is not to be achieved on the expense of
quality or service. Symbolic policies, such as only flying economy class and stay at
economical hotels, employing young executives and sponsoring university programs have
made cost part of corporate culture and have further inspired the influx of entrepreneurship
into the organization. For instance, all design teams enjoy complete autonomy in their work,
but are expected to design new appealing products regularly.

1c. Related to the given organization, analyze the factors which might influence
individual behavior at work in IKEA stores in Sweden and in the United States
Employees and management bring their individual different to work each every day. Because
they have education background, family background, character, experience, character,
culture, gender, generation/ age very different. So, individual behavior of IKEA Sweden and
the United States there are clearly differences, the following table analyzes the factors affect
individual behavior of the two companies.

Factors IKEA Sweden IKEA United states
Personality Each employee in companies
that have different
personalities, but with an
environment like IKEA
Sweden, staff responsible for
their behaviour, they have
powers and duties equal in
the process to work, so will
be less conflict in work,
behaviour of superior is
encourage subordinates work
Difference between staff
IKEA Sweden and the
United States is staff of USA
do not need their manager
show emotion workplace,
such as "praise is given for
looking calm all situation,
they do not comfortable in
conflict situations ", their
character is quite strong, they
need to know who is in
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actively, even though
mistake in job that is helping
people be able to repair and
the next time will work
charge, and tell them what
they should do in the
company. But the manager of
IKEA, they are very delicate
and tend to have long-term
approach to management.
Perception While working at IKEA, the
staffs are aware that IKEA is
a great work environment for
them; it's a work
environment flexible and
high efficiency. A work
environment that they have
the respect of managers; they
are person importance in the
company. they might be
participated in making
In the process work at IKEA,
American employees
perceive IKEA as being more
employee-oriented than
average American
employers, and they realize
that IKEA will make their
opportunities for
advancement and bring more
benefits to them, if they have
value security and job
Attitude Attitude of the managers in
IKEA Sweden with their
colleagues are always
respected and regardless of
rank, they are willing to
share information,
experiences and skills to
work with colleagues, giving
employees a pleasant
working environment,
security and a caring attitude
to his colleagues, in response
to the enthusiasm of the
managers that employees
have a attitude work positive
The behaviour in the context
of the work affected by
attitudes in the workplace.
Swedish managers expressed
attitudes uncomfortable with
the formality of the system
and the need to provide
negative feedback, Since
they hold the more senior
positions, their ambivalence
has resulted in little real
discrimination in pay
increases which are directly
linked to the reviews. thereby
leading to conflicts with
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and active. other colleagues to reduce
the performance and
Ability and aptitude IKEA Sweden will give
employees a work
environment where they can
develop their ability and
aptitude for work, by
promoting employees work,
make opportunities
advancement for employees,
from which the employees
are motivated working,
besides IKEA also assigned
to job following ability of co-
worker aims to help the
company achieve high
performance during
When the operation in
America, IKEA has lot of
difficulties in finding people
with the ability and aptitude
to work, especially to find
candidates for management
positions because they need
the work to qualified design
and value suitable to IKEA,
if IKEA is found person has
Ability and aptitude real, it
will help IKEA achieve high
efficiency, and vice versa, it
will delay and reduce
productivity in work.

Task 2
2a. Analyze how organizational theory strengthens principles and practice of organizing
and management.
In six theory pricipals: IKEA in sweeden using method of human relations approach in
People are not only interested in financial gain, in addition they also need be
regconized and appreciated.
They should be treated like human beings and not like machines, so managers should
try to understand the feelings and emotions of employees.
Workers need a high level of job security and job satisfaction, therefore managers
should communicate effectively.
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In most organizations members do not like conflit and misunderstanding. So
managers should try to prevent conflit and misunderstanding between members of the
Employees do not want to close supervision. Therefore, managers should avoid close
supervision and control over them.
Employees want to participate in decision-making process, especially in matters
affecting their interests. Therefore, management must encourage the paticipation of
employees, this will be increase productivity and job satisfaction.
In organization of IKEA, main aims are interaction between managers and employees
to enhance relationship, experience lead to work effectively.
The first point of view is associated with respect for the individual and his autonomy:
make them feel more relaxed, more motivated to work.
Employees have right participated in decision-making process, therefore, their
employees will feel happy, because they also regconized and appreciated.
IKEA always create suitable working enironment and safety for employees,
givingthem comfort when working, and sense of caring.
Create close relationship within the organization to avoid conflits caused disunity.
Factors that IKEA applied to the purpose of increasing productivity and
profitability of the company.

2b. Compare the different approaches to management and theories of organization used
by IKEA in Sweden and the USA

IKEA Sweden use human
relations approach
IKEA America use scientific
The same Meet the wants and needs jobs for employees
The environments to work have to security
Create good relationships between colleagues
Have the motivation to work better
Increase work effeciency and profitability for organization
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The different Encourages employees to
participate in give opinion
and management reviews
may consult the employees
or they can ask their views
on the final decision,which
aims to bring benefits to
every individual and
Relationship in an
organization such as:
attitude influence to
income of organization
through performance of
The managers will feel
more comfortable, because
the staff can share idea
with together in
organization, this make
everybody become active
and closer..
However, in that case, the
managers will become
Furthermore, they make
decision may pull long
time, that make reduce
Reverse Sweeden, managers
always start people to do their
way, and do not allow
employees to express an
opinion, lead to employees
dissatisfaction and poor work
Managers of American apply
scientific management
principles to planning the
work and the workers actually
perform the tasks, this is the
main cause makes conflit
between manager and
employees, because managers
are too strict in the work
environment, make them feel
forced and not respected.
The managers select, train,
and develop each worker
rather than passively leaving
those train themselves, this
method to plan work
However, this management
will increase the monotony of

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Task 3:
3a. Discuss different leadership styles of Swedish and American executives and the
effectiveness of these leadership approaches in IKEA in the United States
The effective leader has to deal with individual, group and organizational goals. Thus, a
leader influences on the work activities, events, strategies and objective of organization. And
then, there are numerous ways to categorize style of leadership. One of classification
distinguishes among: Autocratic, Democratic, Participative and Persuasive. Basically, a good
leader is a person who can apply style flexible and compatible in the organizations
circumstance and the leaders situation, not exception any style.

IKEA Swedish IKEA American
Manager of IKEA in
Sweden is a democartic
management styles.
Democratic style of
management encourages
employees to participate in
making decisions on
behalf of the enterprise.
Manager may consult with
the staff and appriciate
their views, so there are
more likely to put more
effort into their work.
Colleague share the
mutual experience, this
ultimately results in the
co-workers feel more
motivated and willing to
IKEA is the management
style is very comfortable.
Manager of IKEA in America is
a persuasive management styles.
Managers decision all authority
and the work, employees just
follow the instructions of the
superiors, thus reducing the risk
in business.
Manager encourage the staff try
to finished the mission and goal.
Employees do better when

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So, to create effective
working environment.

Advantages Employees can raise your
own experience through
the support of cooleagues.
Improve skills, work
faster, more income.
Employees respect and
Employees will have an idea to
work after the training managers
and guidance without having to
Help promote the work
performance effeciently.
Take their time to go to
the organizations final
They cannot relize all of
capacity of managers.
Can confuse among
Employees become dependent on
Colleagues are often dissatisfied
and disappointed with the
This eventually leads to lack of
cohesion, lack of supervision and
motivation differences between
employees in the workplace.

The effectiveness of these leadership approaches in IKEA in the USA:
The effectiveness of leadership approaches in IKEA in the U.S.
They can train a team of professional staff, work more effeciently and reduce risk in
the business processes with long-term goals.
Helped the company earn more profit, because through these training sessions, create
employees have more agile way of working.
Manager can enhance their ow capabilities, making them increasingly improve
themselves as well as knowledge, help them gain experience.