MGT ASSIGNMENT GROUP 5

KOLEJ PROFESIONAL MARA BANDAR PENAWAR

MGT 1013
PRINCIPLES OF MANAGEMENT

NAME OF STUDENT : 1. ANIS RIFHAN BINTI RIDZAUDIN
2. SITI ARINAH BALQIS BINTI ZULKIFLI
STUDENT ID 3. NUR AUNI SOFIYA BINTI SUHAIMI
4. MUHAMMAD IKMAL BIN RUSLAN
PROGRAMME/CLASS 5. AIDEAN SAUFIYUDEEN BIN ZAIFUTDDIN
CURRENT SESSION : 1. PDL2107107
NAME OF LECTURER 2. PDL2107086
DUE DATE 3. PDL2107120
SUBMISSION DATE 4. PDL2107132
5. PDL2107112
: DLM
: 2 / 2021
: NOOR HAZANIAH BAHARIN
: 07 OCTOBER 2021
: 07 OCTOBER 2021

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TABLE OF CONTENT

1.0 INTRODUCTION
1.1 COMPANY GROUP LOGO
1.2 PHOTO OF OUR GROUP MEMBER
1.3 INTRODUCTION ABOUT IKEA

2.0 CONTENTS
2.1 QUESTION 1 – BUSINESS ORERATION
2.1.1 TYPE OF DEPARTMENTALIZATION AND ITS ADVANTAGES
2.1.2 IMPACT ON THE DECISION MAKING IN COMPANY BUSINESS
OPERATION DURING PANDEMIC
2.2 QUESTION 2 – HUMAN RESOURCE MANAGEMENT
2.2.1 GENERAL STANDARD OPERATION PROCEDURE
2.2.2 ONLINE MARKETING JOB POSITION AND JOB ANALYSIS
2.2.3 PROCESS IN SELECTING NEW EMPLOYEES
2.3 QUESTION 3 – TIPS FOR WORKING FROM HOME

3.0 CONCLUSION
4.0 SOURCES AND REFERENCES

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ACKNOWLEDGEMENT

We would like to express our special thanks of gratitude to my lecturer, Madam Hazaniah
Baharin who gave us the golden opportunity to do this wonderful project on the topic
Multinational Corporation (MNC), which also helped us in doing a lot of Research and we
came to know about so many new things and we really thankful to her.
Secondly, we would also like to thank our parents, friends, relatives, IKEA’s customer
service and everyone who helped us a lot in finalizing this project within the limited time
frame.
We are over helmed in all humbleness and gratefulness to acknowledge our depth to all
those who have helped us to put these ideas, well above the level of simplicity and into
something concrete.

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OUR COMPANY LOGO

IKEA CHERAS
IKEA DELIVERY SERVICE

4

GROUP 5
OUR GROUP MEMBERS

ANIS RIFHAN BINTI SITI ARINAH BALQIS BINTI NUR AUNI SOFIYA BINTI
RIDZAUDIN ZULKIFLI SUHAIMI

PDL2107107 PDL2107086 PDL2107120

MUHAMMAD IKMAL BIN AIDEAN SAUFIYUDEEN BIN
RUSLAN ZAIFUTDDIN

PDL2107132 PDL2107112

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INTRODUCTION OF IKEA

• IKEA is a multinational group of companies - founded in Sweden - that sells ready-
to-assemble furniture, kitchen ware and home accessories. IKEA is the biggest
furniture company in the world, with over 400 stores worldwide, selling affordable
household items to millions of customers. It was started by Ingvar Kamprad in 1943,
who was 17-year-old at the time, in Sweden.

• IKEA is named after the initials of founder Ingvar Kamprad, Elmtaryd, the farm on
which he grew up, and Agunnaryd, the nearby village.

• IKEA founder ;

Ingvar Kamprad

Type Private
Industry Retail
Founded 28 July 1943, 78 years ago in Sweden
Founder Ingvar Kamprad
Headquarters Delft, Netherlands
Number of locations 445 (2021)
Area served Europe, Middle East, North Africa, East Asia, South Asia,
Southeast Asia, Oceania, North America.
Key people
- Jesper Brodin (chairman and CEO of INGKA holding)
Products - Jon Abrahamsson Ring (chairman and CEO of the

Revenue Inter IKEA Group)
Website - Ready to assemble furniture
- Homeware
- Food products
41.3 billion
https://about.ikea.com/
https://www.ingka.com/
retail page - https://www.ikea.com/

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IKEA’S TYPE OF DEPARTMENTALIZATION AND ITS ADVANTAGES

• Functional departmentalization, which is based on the primary functions performed
within an organizational unit such as marketing, finance, production, sales, human
resources, and so on.

ITS ADVANTAGES :
• Simplicity
- Functional departmentation is simple and common form of departmentation. It is very
easy to establish and operate.
• Specialization
- Functional departmentation follows the principle of specialization. Special knowledge
and skill helps high level operation of the organizational functions.
• Optimum Utilization Of Resource
- Functional departmentation focuses on the optimum utilization of both human and non-
human resources. This ensures positive outcome to the organization.
• Better Coordination
- Functional departmentation facilitates better coordination among departments, different
functions and employees.
• It provides a logical reflection of functions that maintains the power and prestige of major
functions.

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• Product departmentalization, which is based on the goods or services produced or sold
by the organizational unit such as outpatient/emergency services, pediatrics, cardiology,
and orthopedics.

ITS ADVANTAGES ;
• It ensures better customer service
• Unprofitable products may be easily determined
• It assists in development of all around managerial talent and skill
• Product departmentalization helps in evaluating the performance of each department. This
helps to control organization easily.
• It is flexible in nature and new product line can be added easily.
• Top level manager has enough time for planning and decision making because all
departments are handled by departmental managers

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• Process departmentalization, which is based on the production process used by the
organizational unit such as lumber cutting and treatment, furniture finishing, and shipping.

ITS ADVANTAGES :
• Achieves economic advantage
• Uses specialized technology.
• Utilizes special skills.
• Simplifies training and optimum use of resources.
• In process departmentation, there is proper division of work. So, it is effective form of
departmentation.
• Top level management is oriented towards the best result. So, there is proper operation.

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• Customer departmentalization, which is based on the primary type of customer served by
the organizational unit such as wholesale or retail purchasers.

ITS ADVANTAGES :
• This type of departmentalization emphasis on customer satisfaction by providing better
products and services.
• Better service to customer having different needs and tastes
• Development in general managerial skills
• Customers departmentalization create goodwill and good image in front of the clients.
• Managers are more responsible of each departments and products.
• Product departmentalization identifies key customers, their needs and tastes and try to
satisfy them.
• Product departmentalization ensures expertness and specialization to benefit customers.
• Product departmentalization adopts different environmental changes according to the
situation.

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• Geographic departmentalization, which is based on the geographic segmentation of
organizational units such as U.S. and Canadian marketing, European marketing, and Latin
American marketing.

• As known, IKEA have 461 stores worldwide.

ITS ADVANTAGES :
• Better efficiency for division
- Geographical organization structures combine employees from different specialties.
This may help locations develop solutions and respond to clients faster. This may help
with more efficient operations than at a centralized location.
• Ability to track profits
- The geographic sales organization structure allows company to better track their profits
based on location. Companies can track the sales performance for specific geographic
locations or divisions. Also, different regions may have different profit margins, sales
practices and revenues based on customer demands.
• Strong collaborative
- Geographical organizational structures often encourage collaboration between
employees. Divisions require professionals with different skills to work together to
resolve issues. This structure often also encourages healthy competition between
departments as a positive motivation in the workplace.

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IMPACT ON DECISION MAKING IN COMPANY
BUSINESS OPERATION DURING PANDEMIC

EMPLOYEES BUSINESS

o Encourage workers to work o Creating a purchases and
from home payment system by using
digital platform method
o Reduce the number of Such as ;
working days - Online
- Click and Collect
o Cutting worker’s salary - Order and colect
o Leave without pay
o Partial closure of premises o Food platform by using ;
- Pandamart
and limiting business hours. - Bungkus-IT
o Work from home - Personal shopper
o Flex the work system by - Order and Collect

working a few days a week o There is a surplus of workers
o Reducing employer due to the short operation
time.
contributions for employee
provident funds o The productivity of the workers
to ensure the company’s cash will decrease due to
flow returns to stability. Thus, lack of customers, and will
can guarantee the employee's directly lower the sales that
monthly salary can cause losses to the
company.
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IKEA GENERAL STANDARD OPERATION PROCEDURE DURING PANDEMIC

• Only visitors who are fully vaccinated and with low risk status are allowed to enter.

• Ensure that social distancing • Ensure that all staff, suppliers • Provide hand sanitisers at the
is practiced at all times and customers undergo body
temperature screening before entrance

entering the premises

• Require the use of face • Restrict access to the premises • Contact tracing
masks by employees
when working and limit the number of customers - Limited capacity in the IKEA

present in the premises at any one Restaurant due to social distancing.

time depending on the size of the We will take second temperature

premises to avoid congestion check and customer’s personal details

for contact tracing purpose.

• Closure of Småland • Closure of Surau • Contactless Delivery and Assembly
- Ensuring the well-being of - Closed until further notice - Mandatory safety precaution
guideline to be adhered.
our youngest visitors.

• Carry out disinfection and cleaning process throughout the opening hours
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ONLINE MARKETING JOB POSITION AND JOB ANALYSIS
Company : IKEA
Position : online marketing

Concern :

• Workplace tools. company sponsors worker a machines such as computer to
improve employee efficiency and performance during pandemic.

• Over work. Employees are afraid of their performance decrease. Extra effort should
be rewarded by paying the employees higher salaries.

• Sick leave. Medical and health care benefits are funded by the company.

Job Description

Duties and responsibilities :

➢ Conducting promotional activities on social media
➢ Create online and offline marketing content
➢ Serve customers who are interested in the Ikea’s goods

Job type : work from home

Job Specification

Qualification :

• Diploma in online marketing. employee already has a knowledge about the job.
• 1 year of marketing experience gets the company cut time and cost to train the new

employee.
• The employee who has experienced in editing can give the company more

productive.

Skills :

➢ Social media experts can quicken brand awareness
➢ Creative in editing to attract customer interest
➢ Have own website can help employee improve their weakness

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The HR Department of IKEA received around 7 CVs a day, and over 200 a month. Through
the recruitment web page, applicants can easily apply, and there are also various ways to
get involved.

At IKEA, their goal is to build a long-lasting relationship with their employees, which means
that they usually promote internal recruitment when a job is available. However, when
there is no potential candidate within the company, an external recruitment agency is
usually used.

When a floor manager feels that he or she could use another salesperson, he or she reports
their needs to the right person, who is the right fit for the job.

For managers, the question is often asked: can I promote internally or can I go through
external channels? Usually, the candidates do not fit the job description and the
requirements are very clear.

It is the process of choosing the best candidates for a job at IKEA. The objective is to find
individuals with higher probability of success in the job.

Instead of having a set of predefined characteristics, such as having a certain level of
education or having a certain personality trait, IKEA conducts an assessment based on the
company’s core values.

The company's recruitment process consists of several steps that are usually explained
below. These include phone interviews, group interviews, and personality tests.

THE PROCESS OF SELECTING NEW EMPLOYEES :

1. First the candidates can apply by mail and/or by the website of Ikea. Click here
2. Then there is a pre-cull made by the HR department and predicated on CV and

application form
3. The candidates pre-culled have a phone meeting with the HR department.
4. The candidates receive a mail and they ken if it is negative and positive to

perpetuate the cull process.

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5. When it is approval , the applicants have a ZOOM meeting generally only the HR
manager.

6. If the HR manager valid, there is a ZOOM meeting with the floor manager.
7. And conclusively for only aeonian contract, the applicants have a ZOOM meeting

with the manager of the department.
8. When there is a manager position to provide, the HR department fixate on the

internal candidates and they prefer promote the authentic employees in lieu of
external recruitment for managers’ positions.
9. First the candidates send their CV (only for external candidates)
10. There is a pre-cull predicated on CV.
11. The external candidates will have a phone meeting in order to be pre-culled.
12. The external candidates receive a mail and they ken if it is negative or positive to
pursuit the cull process.
13. The candidates have a ZOOM meeting with the HR manager.
14. If they pass the meeting they will have one with the Department manager
15. They will withal have a recruitment day in an assessment center with personality
test, exercises in group, etc)
16. The candidates culled have a meeting with the CEO of the shop (e.g.: Ikea in
Malaysia )
17. And determinately the candidates have a last ZOOM meeting with the national CEO
of Ikea.
18. The entire process take place within two or three weeks. There is no feedback for
the negative answers by mail (step 4) but the candidates can ask for a feedback.

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TIPS FOR STAYING PRODUCTIVE FOR EMPLOYEE WHEN WORKING FROM HOME

Introduction

Covid-19 pandemic has had an impact on economies around the world especially on
employers and employees.Many employees are laid off by employers because of the
company`s unstable company.There are also employers who take an approach for their
employees to work from home.IKEA company divided into two parts of employment,
namely workers who work in the workplace and workers who work from home.Employee
who work in the workplace are those who use physical energy such as guard warehouse,
dispatch boy and employee who create the product while employee who work from home
such as accountant, customer service and e-commerce manager.This are the tips to the
employees who work from home.

❖ Designate Your Own Workspace

Though it certainly can be tempting to work from your bed or couch, try to set up
something more official.A comfortable working environment is able to increase
productivity.This are the tips for you to design your own workspace.First,the work
space should not be mixed with the family space so as not to be disturbed by
others.Second,the workspace must have a good lighting and ventilation.Last but not
least, your own workspace must be stocked with all the supplies and equipment you
may need close at hand, such as a computer, printer, paper, headphones .It will avoid
you to get up repeatedly to retrieve things you might need, as this will only cut down on
your productivity.

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❖ Take Breaks

If you really want to be productive, consider taking regular breaks and give your mind
(and body) time to recharge.Work fatigue peaks in the afternoon where it can lead an
employee to feel restless, unfocused, sleepy and irritable.A system of work that usually
provides for a break in the afternoon should be used preferably for a nap other than
lunch .You also can take your mind off work for a bit, to help yourself recharge with
spend you time playing with kids,talks to your partner or take a walk with your partner
or pet.

❖ Set Times for Checking Email

Unless your work requires you to be on email 24/7, designate times when you’ll check
it. If your inbox is constantly up and in view, any new message can be a distraction. It
can take you away from your task at hand, disrupt your focus and extend the time it
takes to accomplish your to-do’s. Tending to email may be more efficient when done in
chunks.

❖ Multitask While You Can

Learning to perform multitask effectively is very important.You’re going to have other
tasks to tend to throughout the day when working from home. You might have to feed
and walk the dog, do dishes, run laundry and more. To keep on top of these, find
opportunities to multitask where you can.

For example, need to get up and refill your coffee? Turn on the automatic vacuum
cleaner on your way. Heading to the kitchen? Run a load of laundry before you settle
back in. Work on those smaller tasks where you can.

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❖ Communicate with teams
Even you and your team work from home, it’s important that you stay in touch and
sensitive to new things as if you’re in the office.Once the sweetness of going to the office
disappears,this means you spend a lot of time alone or sharing your workspace with
your family.When you communicate with teams, everyone in your team can collaborate
directly while following the progress of a project.Fun and an energetic work
environment can motivate you to continue working hard with fun and increase
productivity

❖ Work out a schedule with your family

Most people have their family members with them at home which they need to spend
time with.In order to maintain balance of time, a work schedule will help you.

By doing such, you will be more organize and focus towards your job.In addition, for a
parent to care for their kids, they can make a schedule that splits both of their spouses
time to look after their children.This will reduce miss communications and stress
between spouses.

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❖ Get up early in the morning

Most people work on the morning during the old norm,before covid.But during the
movement control order (MCO) people have started to wake up late or work by their
choice of time.This ruins their daily cycle to work in the morning and stay energized to
accomplish their work.To prevent this from happening, one must set an alarm to their
normal morning routine to wake up early and begin their work like they used to before
covid.This will improve more work by reducing time wasting to get dressed or drive to
work and reduce cost of say ,gas for cars.

❖ Reduce digital distractions

In the 21st century,technology has been apart of human life.It has become one of life
most vital neccesities to survive.But most people take that term more than it
should.Today people live with their eyes ‘stuck’ to the screen of their gadget.This also
mess with people view of time.People tend to lose focus and track of time when they are
on their phones or computers.So, to improve the way of work at home,one must limit
their need for digital distractions.for this will benefit you very much to the point your
work will be done quick and perfect.

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❖ Make a list of things to accomplish for the day
By making a to-do list,one will be sharp and not ‘all over the place’.For it tends to make
yourself more accountable for what your ‘mission’ for the day.And plus,you will feel
better about yourself during the finishing of your task.

❖ Prepare a meal before the day
Prepping a meal before the beginning of the day can help you in multiple ways.For
starters,it will save more time for you to cook and cleaning.Besides that, helps you learn
more on how to cook delicious food fast and long lasting.Tupperware is a good
recommendation on keeping the early prep foods fresh.

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CONCLUSION

IKEA is a multinational company in the furniture retailing industry where the
product lifecycle is highly unpredictable. The levels of performance will be evaluated
through the performance of a SWOT analysis. IKEA used 5 type of departmentalization
which is functional departmentalization, product departmentalization, customer
departmentalization, geographic departmentalization, and process departmentalization.
IKEA have their own standard operation procedure during pandemic to ensure the safety
of their customer. For example, Only visitors who are fully vaccinated and with low risk
status are allowed to enter the store, require the use of face masks, and practice social
distancing. During pandemic, IKEA focus on online marketing and need to have more
workers who has qualification on online marketing. IKEA have their own method for
selection process in selecting the new emplooyees. Also, there is a lot of tips for working
from home to make sure IKEA’s empoyees stay productive and have balance in work and
life. This case analysis has shown how IKEA’s vision and mission and its strong values are
able to contribute and drive the development of its sustainable strategy with the overall
aim of helping more people live a better life at home.

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SOURCES AND REFERENCES

• https://en.wikipedia.org/wiki/IKEA
• https://about.ikea.com/en/about-us
• https://www.ikea.com/us/en/customer-service/contact-us/
• https://www.ikea.com/my/en/customer-service/we-do-our-part-please-do-your-

part-puba2c30b50
• Principles of management books
• https://marketinglord.blogspot.com/2019/04/advantages-of-

departmentalization.html

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