IKEA

IKEA

Introduction

IKEA - Ingvar Kamprad Elmtaryd Agunnaryd is a Dutch company operating under the leadership of Ingvar Kamprad, the founder of this organization. IKEA holds its expertise in the area of furniture designing and selling other assembled furniture items like beds, chairs, tables, etc. The company is well known for its continuous successful operations and product development. The firm deals with a cost control mechanism helping it to maintain lower prices. The firm has a range of products with continuous improvement in the procedures and designs. Its succession planning is rated as one of the core factors for the brand's image and success. The leadership and top management of the company have always played a key role in the establishment and success of the brand.

Succession Planning - IKEA

When the concept of succession planning comes into discussion, IKEA is one of the leading examples. The leadership style and succession planning in the company along with its corporate culture, business model and effective strategies are an inspiration. The leadership model of IKEA is based on a family based business concept. The structure of this model clearly presents its differentiation from the other models. In this model, the father or the head of the family (brand or organization) possesses an entrepreneurial character. He owns the responsibility to set the values and goals of the firm. The developed strategies by this head are to be controlled over all the businesses. It is a very effective strategy that can help an organization to maintain a sustainable corporate culture and environment.

The model provides the employees of IKEA to own sense of leadership. It provides the human resource of IKEA to gain opportunities for reaching the leadership level of the organization. The firm gives priority to its personnel to gain experience of the overall all operations of the firms and later on fill the leadership positions. This family model is a vital role player in the succession planning of IKEA because encourages the workforce, or human resource of the firm like a part of the family, rather than a part of an organization. This creates a sense of attachment and motivation among its workforce (Johnson, 2004). Kamprad has always stood up as an evident head of this organization.

IKEAs relationship and networking with the personnel and related resources are one of the reasons or pivotal in nurturing the development of the brand. IKEA believes in interaction and providing the freedom of speech to communicate with the leadership level as a child is allowed to communicate freely with a father. The succession planning at IKEA is a value based model providing excellence in the operations (Baraldi, 2008). The model also encourages the concept of innovation. This model has created a strong culture based on authentic leadership and ideas sharing.

IKEA focuses on identifying leaders who are developed, promoted and gain experience within the organization. It is an internal process that raises the employees to the leadership level based on their skill set. These skills are refined by sharing ...