Essay about Challenges Of Management And Human Resources

945 Words Apr 5th, 2015 4 Pages
Challenges in Management and Human Resources
IKEA’s corporate culture has a great influence on the company from the supplier to its customers to its co-workers. At IKEA, co-workers are expected to follow the principles set forth in the “Testament of a Furniture Dealer”, while managers are expected to be role models instead of dictators. IKEA’s corporate culture establishes standards that follow a command that the IKEA business shall have an overall positive impact on people and the environment. IKEA motivation when it enters new markets is not to only make money, but also develops a relationship with its customers and employees to make a better future for many people. However, many of the company’s extraordinary business principles stops at many of its global countries border due in part to cultural diversities.
Cultural Diversity in Management
Gretzinger stated, “While national companies just have to (re-)combine resources within a homogeneous organizational setting, multinationals are acting in a multicultural setting. Cooperation among the host-company and subsidiaries abroad needs common ground, especially respectively communication (p. 194).
The goal of many businesses is to be diverse in the workplace; however, when a business expands globally they increase the miscommunication and language barriers that impacts the business’ developments. Business have to keep in mind that what is acceptable in one culture may not be acceptable in another. For example, IKEA’s…

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