Kamprad’s Resourcefulness: Ikea

1. Kamprads careful stewardship of resources exemplifies his abilities as a manager. By practicing frugality and economy, he was able to maximize profits by keeping cost low while also being able to continually inaugurate his growing federation. While to some he may appear frugal, he has created a nest egg for economic d give birthturn and well as creating a strong ethic of financial stewardship at bottom his organization. Planning and conundrum solving became both the framework for IKEA and its source for innovation.As a leader, Kamprad again instil take his own personal values into every fiber of IKEA. Effective cost cutting, saturated work, and dedication. Aside from just cutting costs however, being influenced by the Bauhaus military campaign he also wanted to combine cost saving with a reason of style. (Chaundey, 2000) In addition, the welfare of his employees has been a main concern. (Nelson and Quick, 2011) I rely that Kamprad was (and is) a strong leader and manager for IKEA, and I believe that these principles provide be carried on in his sons to future success in the marketplace. 2.The followership of employees within IKEA can be directly linked to the Leadership Grid in Fig. 12. 1. (Nelson and Quick, 2011) From the structure of the grid, Kamprad would be a 9,9. Kamprads leadership style calls upon and motivates the aggroup members within the company to take initiative and a personal position in the company. They are hiring not just into a job just now into a lifestyle and commission of mentation. The combination of careful stewardship with concern for employee welfare creates an environment that gives employees both a responsibility and a sense of community. Etzioni, 1960) consequently IKEA employees are empowered and feel like they are part of something. In this way IKEA ends up with a staff of active independent, critical thinking individuals. (Nelson and Quick, 2011) This overall will drive employees to greater creativity and prod uctivity for the company they care for and cares for them. 3. The case does not give specifics about Kamprads actions as a transactional leader, although the narrative would lead one to believe that they style would be uncharacteristic of him. Although Kamprads traits as a transformational leader are unquestionable.Kamprad has minded(p) employees not just a goal but a way of living. (Davis, 2006) Kamprad himself dresses simply, eats at cheap restaurants and flies economy class. (Chaundey, 2000) Kamprad innovated and redefined ways of doing work repeatedly throughout his tenure as CEO of IKEA. From the mission direction of create a better everyday life for the many mint, IKEA has been built upon a pioneering spirit. (Gowan, 2009) By designed a business platform that allowed IKEA to work directly between manufacturers and customers to keep costs low. ibid. ) By designing the flat boxes and shipping furniture to customers that they assembled themselves, Kamprad has been able to ke ep cost down. It is these business techniques along with his uncompromising moral philosophy that he has instilled into the company and led it to greatness. Kamprads charisma is a quiet sort largely involving a lead by example technique. Employees are drawn to Kamprad because of his strong ethics and personal adherence to them. Kamprads philosophy is not just language at board meetings but the way he lives his life.This gives employees a stronger sense of connection with the boss, as he is still very close to his down(p) roots. The lack of title and privilege within IKEA also reinforces this. (Davis, 2006) References Chaundy, Bob (2000) IKEAs self-assembled billionaire. BBC News. July 28, 2000 Retrieved from news. bbc. co. uk Davis, Paul (2006) Billionaire Attributes Modesty Ingvar Kamprad, Ikeas Founder and Owner. Retrieved from ezinearticles. com Etzioni, Amitai (1960) Two Approaches to organizational abridgment A reexamine and a Suggestion.Administrative Science Quarterly, Vol. 5, No. 2 Gawor, Katarzyna Halasova, Sona Polzin, Friedemann (2009) world(prenominal) Business Strategy of IKEA Activities of the Multinational Furniture Retailer. University of Economics Bratislava Nelson, D. & Quick, J. (2011). Organizational Behavior Science, the RealWorld, and You. (7th Ed. ) Mason, OH South Western. Cengage Learning. Etzioni, Amitai (1960) Two Approaches to Organizational Analysis A Critique and a Suggestion. Administrative Science Quarterly, Vol. 5, No. 2 Retrieved from www. amitaietzioni. org