Structure And Culture Ikea And Lego Commerce Essay

Structure And Culture Ikea And Lego Commerce Essay In this assignment I am meant to be working for an organization holding a trainee management consultant and at the end of my training I have to submit a report. My report will be about two private organizations where I discuss their structure and culture, how it affects the business performance. I also need to research how each company deals with their employees and problems faced with employees. An important figure is picked for each company and have discussed the leadership style used by both. In addition I explore the classical approaches which are being used in the companys and the different techniques to management used by each organization. In my PowerPoint presentation, I offer a consultation to my client organization on motivational theories and effective teamwork. Acknowledgement I Sayarah Saleem confirm and acknowledge the fact that this assignment was done by me alone. I have researched and studied the tasks given and have given the references from where I have obtained the information. Executive Summary The two private organizations that I have chosen are IKEA and LEGO in my report because I think its they are good examples of describing the structure and culture of each organization. They are both different in their own way , with how they deal with employee issues and how the organization is run. One is family oriented and the other , which got an outsider as a CEO in 2004 in order to change the company around. Table of Contents Task 1 1.Report 1.1 Analyze the structure and culture if the two organizations. In your analysis you have to engage in a comparison and contrasting of their structure and culture. 1.2 Further clearly evaluate how the structure of each company supports its culture and how this relationship effects business performance. 1.3 Explore and state what each company does in order to identify and solve employee behavioral problems. 2. Understand different approaches to management and leadership. 2.1 Select a prominent figure one from each company and compare the effectiveness of their leadership styles. 2.2 How to the two companies practice the classical approach to management. 2.3 Evaluate the different approaches to management used by the two organizations. In discussing your answer you have to use your knowledge on contingency approach to management. Task 2 Presentation References Bibliography Task 1 Task 1:Report Understand the relationship between organizational structure and culture IKEA LEGO 1.1 Lego began in the early 1930s by a gentleman named Ole Kirk Kristiansen and till date kept with the family, passed on by generation to the next generation. Lego has been named twice the toy of the century and has maintained the toy, the building brick. The organizational structure that Lego uses which best suits them is the functional structure, this structure is most widely used by companies. Basically the company has different departments to which they have delegated people to, and heads of that department according to the function. Some of these departments are Sales, Accounts, product development etc. Using this structure allows them to show the pyramid of hierarchy. It gives a clear view of the organizational chart and who are at the highest rank. Lego being based in so many countries uses a divisional structure which consists of three segments, and these are market, product and geographical. The other company which I have chosen to analyze is IKEA. IKEA was founded in 1943 by Ingvar Kamprad . IKEA is the worlds biggest furniture company that concentrates on innovative, fashionable furniture at inexpensive prices. Mr. Kamprad didnt want any normal organizational structure for the company, instead he formed a complex system of foundations, holding companies and trusts. The companys structure then divided into three for each of his son. The reason he did this was to prevent taxs and also to make sure that the company would not be divided due to family dispute. In actual fact IKEA is being held by a foundation which has a group under them that controls the companies that runs IKEAs individual operations. Between the two companies it is evident that while one has a typical corporate structure , the other is so committed in creating equality amongst the family and a fool proof method to ensure that the company will not be divided in the future. 1.2 The same way that Ikea has created their organizational structure they have also supported the company culture by sharing that they not just want to hire people but have a chance of bringing in unique individuals to share the same values of the company. To make them feel as they are all associates in the company. Not only does IKEA evaluate the person based on skills and expertise but also if they have the same culture as IKEA themselves. The assumption is that skills are easier to develop than personality traits, attitudes and values This in return promises happier employees who feel as if they are working for their own. Employees who like, themselves want to buy furniture, take it home and assemble at home will also make the customers feel the same. Lego on the other hand concentrated on their Danish values of hard work , modesty and teamwork. They look after their employees with respect and high standards, also incorporating global principles for those working overseas. Lego has always been strict about following all laws, rules and regulations in the countries they are in. Their employees in return offer their company which is so largely respected , great service, hard work and offer nothing but the best to their customers. 1.3 There are several different leadership methods which companies take on, IKEA however have not confined themselves to one particular method, instead taken the best parts of each method and combined their own. There is the Autocratic style, which is the basic team and supervisor style, Democratic , which allows the employee to think and make decisions on behalf of the company. Laissez Faire , where employees are given few guidelines and limits to carry out activities , which gives them freedom but may result in less productive work. Consultative is like the democratic style, very alike. Finally we have paternalistic where the manager , supervisor has tough ideas where he will require input and ideas for developing the business from the employees. By doing this IKEA has been able to avoid large scale employee behavioral problems. This is not to say that they dont have employees who have been disappointed either by not keeping their promise on pay raises and not even considering thei r opinions. IWAY which is IKEAs code of conduct, assures their employees the right to organize and order all overtime be voluntary. They also ensure wages are paid on time and not be withheld. Employees are entitled to medical, social insurance and pension. This way IKEA allows their co-workers their freedom and benefit all legal rights. IKEA hires a law firm called Jackson Lewis to encourage workers to attend meetings in order to discourage unions. One of Legos important rules was to maintain employees safety, therefore they set a goal to reach the top ten safe places to work for employees by 2015. Their main concern was to improve and maintain the work-life balance; this is basically to retain the employees motivation and satisfaction with their position at Lego. Lego has their system of flexible work hours, work from home option which are all ideal mainly for a working mother has made themselves enter Working Mother Magazine 100 best companies list . Lego involve themselves in providing wellness programs and leave entitlement for the mother up to 26 weeks of leave with their job assured of. Families looking to adopt are entitled to $5000 and fertility treatments are fully covered. Task 2 2.1 Lego Jorgen Vig Knudstorp is a leading and most prominent figure at lego, he has had the most challenging role of having revive Lego as the company had taken a turn for the worst. Mr. Knudstorp knew that in order to change things around he needed to be trusted and relied on. Doing so Mr. Knudstorp would be able to incorporate new methods to revive Lego from its low. He was an intelligent man to believe that for things to be done he needed to managing at eye level which meant liaising with the production workers, engineers , discussing to reduce sales declining with the sales and marketing department. Jorgen Vig Knudstorp reminded the management that they were there to maximize the firms value, this would be identififying why till date the lego group exists. He wanted their to be a less strict structure and a more free management style from the bottom to the top, empowering employees to make decisions at all levels. Jorgen Vig Knudstorp used the strategic leadership style, this which made employees share values,visons and goals, strengthening them to make decisions with minimum monitoring. It is defined that a strategic leader persuades for change and looks for new ways ideas, and improvement to better the company in order to allow the company to move onward. IKEA Ingvar Kamprad the founder of ikea, being a school dropout and began making furniture at the age of 17 uses the democratic style of leadership to run his company. Mr. Kamprad encouraged parallel management so that each can manage their purpose effectively. The reason for this same level management was so that employees opinion and feedback will help them feel like they are required in the company. This in return makes the employees want to work harder and feel as if they are working for their own. Mr. Kamprad however did have many things under his control like the financial details and of the companys structure. He encouraged his employees to work hard with stern business beliefs however to still have fun whilst working for IKEA, he preferred giving guidelines, showing methods of how things should be done instead of revealing authority and giving out orders. 2.2 Since the classical approach is purely based on acknowledging the idea that only the economical and physical needs of the employee are important and that their personal life and job satisfaction are irrelevant, Lego however believes strongly in allowing their employees to work freely within the organization. It is a place where all share the same value, of empowering children to learn. Lego wanted to strive to be the best toy company instead of being the biggest. The classical approach includes scientific, administrative and bureaucratic management. The scientific management theory was developed by Frederik Taylor (1856-1915). This theory had 4 steps, firstly by sorting the job into smaller pieces, then to pick the most capable employees to perform the job and train them, finally supervisors are used to monitor them. This theory came about at the time that organizations were large and industrialized to increase productivity to its maximum. Henri Fayol ( 1841-1925) developed a fourteen principles of management. These principles were: Division of Labor: to increase production and quality through specialization Authority and Responsibility: Where authority is shown, responsibility must be given and this works both ways. Discipline; Respect and order for the agreements between the company and their workers. Line of Authority: Clear view of the company hierarchy Centralization: Authority is given only to the highest in command. Unity of Direction: All are on the same track to lead the organization. Unity of command: Employee receives instructions from only one supervisor/manager. Order: Every employee is placed where they would contribute the most. Initiative: Creating action plans and carrying it out. Equity: Take care of all employees fairly with respect. Remuneration of personnel: Payment of salaries to employees accordingly. Stability of Tenure: to provide long term employment. General interest over individual interest: the companys priority will be before the employees. Esprit de corps: Harmony of the employees brings a strong union. Mr. Kamprad of IKEA believed that the workplace should be like everyday life, being free and at ease, instead wearing formal work attire, addressing colleagues in a personal manner. The company arranges once a year for at least week for the managers to work in the showrooms and warehouses. New ideas and innovations were always welcome at IKEA, the employees were always encouraged to come up with creative solutions. How did the concept of customers picking up their purchases arise? This is when they realized in order to cost cut and provide quick service, to engage in customers in self-selection. The customers choose their items, write them down and go down to the warehouse to collect their items. IKEA has a mission of spreading the companies philosophies and practices throughout the organization by assigning IKEA ambassadors that had been specifically trained and placed strategically within the company. They would in turn train their subordinates and act as role models. In my report it is evident that both IKEA and Lego do not have a strict list of management procedures which have brought them to where they are today. Bearing in mind that in 2004, when Lego CEO Jorgen Vig Knudstorp joined the organization he needed to save the company from the dire state that it was in. This required that whichever practices that were taking place needed to be evaluated and changed in order to revive the company. IKEA being a family oriented company, is not particularly head by the founders sons. Instead created a holdings company that managed the IKEA organization which was run by Mr. Kamprads sons. By studying and researching both companies it is safe to say that there is no exact approach to management followed by each. The contingency approach also known as situational approach supports the thought that there is no one best way to management. Each organization just like humans and conditions can change and differ from time to time. Therefore by studying the current situation of the organization, will the management of the company know what practices to enforce. Management had to think of environmental factors, for example weather, technology that could alter the organizations productivity.

Theme of Power in Harold Pinters The Homecoming :: Harold Pinter Homecoming Essays

The Theme of Power in The Homecoming Author: Sarah Marchant In Harold Pinter's "The Homecoming" one of the important themes is power. Many of the characters try to exert power. Many of the characters try to exert power over others through various means such as sexuality and intelligence. The use of violence within the household is believed by the men to be the most important tool of power. However, when Ruth, the only woman in the play, enters, she appears to defeat the men's power, but not with violence. Her sexuality and apparent intelligence become part of the way in which she takes control of the house. Power itself is the ability to take control and exert authority over others. Violence is a physical form of this. It usually takes the form of a display of force and this could be an unjust or even unlawful action. There could be a use of violent language or an element of threatened violence. However, the degree of power this holds is determined by the reaction of those threatened, or whether or not anything comes of the threat. Teddy introduces his wife, Ruth, into his childhood home that is a scene of tense threats and reports of violence - both sexual and physical. As soon as the play begins there is conflict between Lenny and his father, Max. Having been insulted by Lenny, Max threatens him with his stick, saying "Don't you talk to me like that. I'm warning you". However, nothing comes of this threat. The only element of power that can be inferred comes from the way in which Lenny makes no response. Perhaps he has previous experience of Max's anger, or it could be that both parties know that there is no point in pursuing the matter. The power that is expected to come with a threat is non-existent in this household as the threats are well-worn and always empty. Max demands that Teddy and Ruth leave his house, yet by the end of the play, he is sobbing and yearning for attention from Ruth. The insults and derogatory terms used within the family are not so much an element of power as a way of life. As there is no real mother figure within the household, the men have lapsed into a way of life in which they can show no affection to each other. Instead they insult each other in ways usually reserved for women: "bitch" and "slag".

Fast Food Nation Essay

Summary: All Americans effect the huge growth of fast food but adolescents play even more of a vital role in than the average consumer. Not only do teenagers consume fast food, but they work for it and steal from it because they are attracted to it the most. The fast food industry provides the easiest way for young people to get started and continue to succeed in our â€Å"Fast Food Nation. † Our country loves fast food, there is speedy service with cheap tasty food in over one million restaurants world wide. Though we all love it, we do not like the stories behind it. In 2004, Americans spent over 110 billion dollars on fast food, that’s more than higher education, computers, computer software and new cars combined (Scholosser, 3). Teenagers provide a huge role in the fast food industry. Teenagers work at these restaurants, eat at these restaurants, are objects of advertisements by these restaurants and steal from these restaurants more than any other age group. Ever since the age of three more than 75 percent of American children can recognize the face of Ronald McDonald. Since our nation is currently being raised around fast food it is only inevitable that as children grow, they only become more of a part of it everyday. The average American child begins to work around the age of 16 doing low wage low labor jobs. At anytime a teenager can walk into any fast food restaurant and apply for a job. Fast food restaurants prefer to employ teenagers because they are easily trained, less expensive to tend to than adults and are easier to control. Also since most teenagers still live at home they can afford to work for wages too low to even support an adult. â€Å"No other industry in the United States had a workforce so dominated by adolescents. About two-thirds of the nations fast food workers are under the age of twenty† (Scholosser, 68). Working in McDonalds is not difficult, but just tedious and long. Since most fast food restaurants are run my machines, it is up to these 17 year-old employs to push buttons and say commands. All Burger King wants is for things to get done faster, not how much effort is put into work, so teenagers feel working at Taco Bell or KFC won’t be as difficult as it will a strain. Any teenager working behind the counter at any fast food restaurant is given less respect than animals at the pet store. .†.. she hates the job and is desperate to quit. Working at the counter she has to deal with rude remarks and complaints. She is often yelled at by strangers angry that their foods taking to long or that something is wrong with their order. One elderly woman threw a hamburger at her because there was too much mustard on it† (Scholosser, 81). Though rudeness is a downside to a fast food job, there are perks for kids who do not need a lot. Many of the 200 dollar a week salary is used for teenage spending; clothes, nights out, cars and other desirable things. Teenagers run and continue the fast food work force every day, not because they have to but because it’s the best option available to them. Though we may not like the way the food is cooked or served; the way it tastes is still great. McDonalds makes a huge profit off of everything; soda fries and sandwiches all profit so largely, and teenagers are one of the most popular customers. A medium soda in McDonalds is $1. 29, it cost McDonalds $4. 25 per gallon of soda syrup, only about 9 cents worth of syrup is used in a medium drink, giving McDonalds almost a 95% profit. Soda consumption among teenagers has doubled within the past 20 years, reaching an average of twelve ounces of soda a day per child. (Scholosser, 54). With French fries McDonalds buy them frozen for 30 cents a pound, then sells them reheated in oil for 6 dollars a pound, pure profit pulled from the hands of teenagers. McDonalds makes billions upon billions of dollars annually by selling things for such a low price but really making the largest profit possible. Recently, fast food restaurants have become more attractive to armed robbers than a clothing store or gas station. Since fast food industries do almost all of their business in cash, others rely on credit card transactions. Robbery in fast food chains is not uncommon at all, even when most of it happens by their own employees, underage teenagers who are desperate for money. Though most of these robberies occur early in the morning or late at night when few people are working. â€Å"The typical employee stole about $218 a year and according to industry studies, about two thirds of the robberies at fast food restaurants involve current or former employees. † (Scholosser, 84). Employees have low pay, high turnover and know the restaurant, why not steal? McDonalds is already a billion dollar industry, many of the people think, its not going to hurt their business, they won’t even notice. However these robberies have led to deaths and injuries, and make teenagers realize what horrible conditions they are working in. All Americans effect the huge growth of fast food but adolescents play even more of a vital role in than the average consumer. Not only do teenagers consume fast food, but they work for it and steal from it because they are attracted to it the most. The fast food industry provides the easiest way for young people to get started and continue to succeed in our â€Å"Fast Food Nation. â€Å"

Kuwait Society For The Welfare Of The Disabled - 1670 Words

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