It’s a kind of a take over when both the firms combine into a new firm with the due permission of the real owners of the company who possess the shares of the company therefore resulting in completely new official entity. IKEA first of all baring the largest share in the home furnishing industry doesn’t find itself in an urgent need of a merger as among the main reasons for merger is the pursuit of better performance or avoidance from decline scale of performance, expansion behind ikea’s one of the vital priorities in next few years might attract the concept of merger with some furniture retailer most probably on high street level to launch its high street outlet , but doing that would require certain changes which could include new payroll system, different pay and other remuneration schemes, new policies for training and development could be settled between the parties to the merger, new staffing methods, new policy could be formed for retirement scheme and benefits, disciplinary procedures could be altered as well etc. in a nut shell relocation of resources is always a part of mergers which could also include relocation of human resources depending on which kind of merger does actually take place.
In case of acquisition as well the whole set of human resource elements would be considered by party purchasing the other to suit their enhanced business and acquired work force requirements together with legal regulations, but in this form of take over if IKEA takes over any company it must be an intention to provide a helping hand to stakeholders of the acquired company, therefore changes like payroll, staff rotation, job rotation, combined training and development, it could also result in human expertise been sent to look after the acquired business resulting in lack of concentration on the main operation which indicated intense care is necessary while allocating the employees efficiently.
This is now being seen in regular practice by various firms all over the world reason being either to achieve competitive advantage like Superdrug and the perfume shop etc. or to plan a reduction of operating cost because of shared resources or purely marketing reasons. IKEA faced by this type of situation would definitely face some changes on immediate basis including maintenance of healthy relationship between the organizations for the achievement of combined goals, changes would require in the decision making patterns in the favor of common interest, allocation of right people on the right job could raise argument between the relevant heads involved from both sides, a methods requires to be developed to ensure data protection of trade secrets which could be at risk if not handle with proper attention. Human resource strategy would also need a bit of alteration in terms of agreement on objectives as both the parties could have different set of overall objectives to follow.
It is a kind of project undertaken by the two firms for a common interest and share the rewards or losses from the particular venture, depending on the kind of joint venture the human resource would change to suit the requirement of the venture on both side to be conducted smoothly without bothering the overall objectives of both the firms and ensure all the relevant aspects like allocation of combine resources together with any training and development measures required to carry out the joint venture.
cultural multiplicity is one of the ikea’s prime concern as far its recruitment policy is concerned, IKEA has always abide by the legal employment regulations and also exhibited a very responsible attitude towards its employees and potential employees, with the significance importance been given to the development of multi cultural environment at work place IKEA has established a very strong and constructive multicultural hub for people who IKEA believes only work for people. A suitable candidate is always the one with high motivational energy together with relevant experience or knowledge.
IKEA has a very smart process of communication in-between the employees who allow them express freely their concern about the business and the company, both ways communication is appreciated and practiced which is a prime reason for less percentage of employee turnovers. Together with fair and constructive pay system the company has gained its place in the hearts of its employees and with proper amount of training and development procedures creates a bond between the brand and its very own people. Proper exit interviews are conducted on the exit of any member and both the parties are left with a brilliant image on each other for future reference.
TRAINING AND DEVLOPMENT
It is a responsibility of an efficient organisation to have a complete provision of training and development facility at work in order to maintain the motivation level of the team and to fulfil the overall strategic objective of the organisation over all quality of work together with amount of loyalty are directly related to company’s performance which are fully practiced in a routine culture of IKEA day to day operations.
human resource department together with other functional heads and directors establish a strategy for training the team members over a given period of time to achieve future strategic goals with better preparations ensuring all the line managers of the departments are fully informed and trained for the training to be provided on the basis of individual performance and line of direction opted in the company, and together with the same line managers top management develops a plan in order to understand the needs for the relevant process. IKEA has very comprehensive set of performance appraisal system which is conducted on every regular interval constructively to ensure employee satisfaction ultimately leading to customer satisfaction.
IKEA has design a unique format of trading and development pattern with the name of on the job training as organised by IKEA college for the seek of potential managers which could lead the brand to a new era an excellence.