A business environment generally encompasses the climate in which the operation is business is conducted. Understanding a business environment is necessary for the company as it will let in knowing the factors that may influence every business aspect. Business environment consists of socio economic aspect, political framework, technological and legal aspects. In this report IKEA has been selected as an organization to discuss its business environmental factors. Here, the report explains two external business environments such as employee motivation and environment and corporate social responsibility that impact the organization. The report assesses the importance of the external environment over the chosen organization. Moreover, it examines the organizational position and responses. Lastly, few recommendations are been addressed in order to overcome the challenges.
Olafsen et al. (2015, p.447). defined employee motivation as the level of energy a worker of the company commits in their job. An employee can be motivated by good remuneration, bonus and rewards on their work. They are motivated through personal gain and do the best for an organization. An employee motivation can be judged by looking into their work procedure and contribution that they possess into their work. Caillier (2014, p.18) stated that a motivated employee helps in increasing organizational productivity by leading the organization towards success.
Judge et al. (2014, p.199) defined employee engagement as an approach that is applied in the workplace which results in creating right condition so that all the employees can give their best every in achieving organizational values and goals. It is about understanding individual role that is to be carried out in the organization. They are fully included in individual team where the employees contribute their own work within a team. Thus, they support the organization and other team members in developing new skills that enables an organization in fulfilling organizational objectives.
The importance of employee motivation and engagement is important in today’s business as the employee’s gives the main outsource in increasing productivity. When an employee is motivated they contribute their best performance in enhancing business profit whereas, an employee engagement plays a vital role in growing the organization and successfully achieving the goal and objectives (Olafsen et al. 2015, p.447). IKEA contributes their best in retaining the best employees for their organization and later train them for building up confidence within them. In today’s business employee motivation is necessary as it holds the workers for long term. As it is a competitive business world all the organization tries to give best opportunities to the workers and pulls them towards their own firm. They get motivated when proper work environment is provided to them by fulfilling their basic needs.
Apart from that, they are working to earn money hence proper remuneration is important to keep the employees motivated. Retaining employees for long period of time reflects an organization culture (Cerasol et al. 2014, p.980). When an organization experience low employee turnover rate their goodwill reflects in the market place and more employees tend to join that firm. Therefore, more the employees are engaged in the firm the more organization tends to produce products and services. In return, the customers are also satisfied as because their demand and requirements are fulfilled within time. In addition, along with employee motivation, employee engagement is also important for growing the industries. Engaging employees by making them understand their roles and responsibility is essential to indulge them into their work (Parker, 2014, p.661).
Employee can be engaged by providing them with various opportunities that matches with organization standards. When there arises a competition between the employees that they are being paid on the amount that they produce then it encourages other workers to do their best. Paying the employees a fair compensation increases their performance rate where they are engaged to continue their work by giving their best performance. Moreover, it supports an organization for delivering superior performance. It enables organization like IKEA to gain competitive advantages in the market place. When employees are engaged within a team work they completes their work on time and one tends to learns faster by seeing one another (Judge et al. 2014, p.199). Engagement of employees takes commitment from the workers whereas; motivation takes it to the next level. Therefore, when employees are engaged in achieving organization goals and objectives they need to be motivated in right manner by understanding their needs. It works hand in hand hence; both contribute towards the success of the firm.
Corporate Social responsibility is referred as an initiative that is taken for assessing and taking responsibility for an organization effect on environment and social wellbeing. It generally allows an organist ion to contribute a bit for the society, customers and environment. CSR has became one of the standard business practice as it brings benefit in managing risk, savings, cost, making strong customer relationship, human resource management and in cost saving (Gupta and Shaw, 2014, p.1). With the implementation of corporate social responsibility it encourages to make social and environmental responsibility in the corporate sector when business trust is declined among the customers. It helps in creating public image as the company involves themselves in donating fund to the non-profit organizations like orphanage, NGO’s and so on (Jacobsen et al. 2014, p.790).
Besides, when an organization tends to produce their products by using environmental friendly material in a sustainable process they can go in a long run in operating their business. This helps in creating good brand image in the eyes of public. In addition, company’s like to work for the company that has good brand image. Biddison et al. (2016, p.31). stated that organizations that promotes the activities of social responsibility takes the initiatives to publicize it through social media. Therefore, CSR is a strong branding tool that helps in forming strong publicity image. On other hand, CSR initiatives help the enterprises to contribute to European Union’s to fulfill the objectives of sustainable development and gain competitiveness in the social market economy (Young et al. 2015, p.689). Their objectives are to make SMART strategies to promote sustainability and growth for the organizations. With the activities of CSR, it helps in a bigger way to spread a good word among the people and other organization.
Moreover, it also makes a significant way to helps to hold a firm trust and interest of the stake holders and customers (De Cooman et al. 2013, p.1342). The media plays a crucial role in spreading the good word- the contenders of that particular organization gets a backseat when CSR activities are promoted. The brand earns respect rather than unhealthy publicity. It is important for today’s business to engage in the activity of CSR as it engages all the business enterprises to build long term employees. It also influences the internal and external stakeholders to form better and take advantages so that they can get accustomed with the rapid change in environment. It is also a part of CSR activities that the firm should perform in order to mitigate crisis in financial activities.
It is needless to say about the positive workplace it creates: a strong work culture, the comfort to create among the hard-walled business world. A chance for the increase in creativity- the employees can cultivate a positive attitude and innovation takes place (Caillier, 2014, p.18). This CSR activity also brings forth many leadership qualities of different employees along with that various domains open up with a possibility of growth for the employees. Hence, the company which takes the initiatives go- betterment of the employees, satisfied society, happy management and the creation of magnetic aura around the company. Thus, it quite clears how important the CSR activity is in promoting betterment of the society and one self.
The size of the company does not matter in applying employee motivation and engagement. They learn the various practices of sustainable development throughout the various years of their engagement. The organization need to promote and improve profitability such that they can increase their performance as well as their efficiency. It also includes different methods on how to reduce the amount of waste that they are producing. The business and the ethical strategies need to be improved such that the employees who are working in the organization can work in a good working environment for a longer period of time (Olafsen et al. 2015, p.447).
The sustainability programs and the employee engagement cannot be separated from each other. These two parameters are inter related with each other because if the decision makers of the company can engage their employees in all the aspects of the organization then only the organization can grow very quickly as well as they will motivated at the same time. As a result of which the organization will be able to launch some sustainable programs for the betterment of the organization (Cerasoli et al. 2014, p.980). It has also been found out that when the commitment factor of the employees increases the sustainable practices of the company also increases which will increase the profitability of the company.
Technology and various operative techniques can be introduced also for the development of IKEA. As it is important to apply technologies in all the fields and departments of the business, more and more number of employees are required to carry out all the operations. As a result, more candidates will be recruited and more employment will be created for IKEA which will help in more helpful for the smooth operation of their business. In this regard, the style of management as well as leadership what had been followed previously needs to be changed such that the employees can become more motivated. IKEA operates by operational autonomy which might lead to job satisfaction in many cases. It has been seen that the attention of the managers has been shifted to the wellbeing of the managers (Parker, 2014, p.661). There are several factors which lead to employee motivation and engagement in different ways and those factors will also be helpful in creating stronger bonds between the other employees and their superiors as well. Those factors are discussed as under:
It is also important to encourage and appreciate the work of the employees such they can feel motivated (Judge et al. 2014, p.199). The employees should always keep open to communication to their co workers and seniors also such that a proper work culture is followed, this is followed by IKEA. It is also very important to recognize the performance of the employees with proper rewards and appreciation. When the employees are properly motivated and directed their bond with the customers also grows and develops and as a result of it, customer loyalty also increases.
Now-a-days it is very important for all kinds of business organization to serve socially in order to stay in the market (Gupta and Shaw, 2014, p.4). In this regard, IKEA is not an exception. The key roles and responsibilities by CSR (Social Corporate Responsibility) have become much clearer when the concepts like sustainable development and citizenship on global business has become prominent from the past few decades. The customers of IKEA believe in different ethical backgrounds or have a particular knowledge about some products, etc which has some implications on employee, social, and environmental issues. It is always very difficult for the organization to implement the CSR in each and every sector of the business and convey its importance to the stakeholders (Biddison et al. 2016, p.31). But it can be said that as a result of CSR, the customers as a part of the stakeholders remain in an advantageous position (Pinder, 2014, p.65).
IKEA has earned an enormous amount of profit by selling furniture to the different countries and become a high profile furniture selling company. The profit of the company has increased by 400% because they operate their business in different manner. They do not appoint any kind of mediator or middleman in their business so they can deliver their products directly. This also helps in reducing the cost of the furniture due to which they can lower the prices of their furniture and can earn more profit. As the furniture are made of wood the number of tress are been demolished more and more in the forests. This has created a major issue as a part of the development of IKEA in the respect of the environmental activities. This perspective has made IKEA somehow a target to the people who are against globalization. This issue mainly hampers their growth in the CSR aspect (IKEA, 2017,). IKEA mainly tries to provide furniture to each and every people with a factor of cost effectiveness and in this regard they have added an extra factor of altruism so their principle has now become “Create a better everyday life for many people […] and to offer a wide range of home furnishings with a good design and functions at prices so low that as many people as possible will be able to afford them”.
IKEA wants to include different types of social as well as environmental factors in their daily routine and activities as well in order to “make products which have minimum impact on the environment and […] manufacture them in a socially responsible way”. The policies of CSR which IKEA tries to incorporate and follow are mainly established and concluded from the different kinds of rules and policies which are prevailing in Nordic countries (IKEA, 2017). They think that ethical, economical and social values as an indispensible part of their lives so they cannot exclude them from their activities (Jacobsen et al. 2014, p.790). With the proper functioning IKEA believes that the conflict which takes place between profit making and CSR can be uprooted. In this regard, IKEA can take the help of different kinds of social platforms for the general awareness of the public in reference to establish the various thoughts and activities ion CSR (IKEA, 2017).
IKEA need to broaden their selection and recruitment criteria at the time of hiring employees for their organization. They need to hire best experienced workers for their firm. However, by not changing the core competencies of the requirement of staffs, IKEA need to show their emphasis on hiring people from different background. This will enable them to promote diversity within the workplace and ensure in bringing richness in culture (Jones et al. 2014, p.130). The more people will come from various background they can engage them into different work according to their specialty. This will allow in forming collaborative team work and at the same time increase organization productivity. In order to promote employee engagement the manager of the organization should develop a strategy where all the employees will be given particular roles and responsibility and share information. Through this process their performance can be improved through transparency. Open communication should be developed between the employee and employer. This will enable them to express their ideas regarding the job. The more they will share their ideas the more IKEA can get opportunities to bring innovation within their work. On the other hand, employee motivation is very necessary to retain employees for long period of time. For maintaining vitality and creativity within the employees IKEA need to focus on self development plan. This will help them in making their skills polished and they will be motivated towards their own work role. Moreover, including intrinsic reward system within the workplace IKEA can motivate the employees in performing their task more efficiently. Hence, they will be motivated as they are given reward based on their performance (Miras?Rodríguez et al. 2015, p.819). In addition, IKEA can follow Maslow’s Hierarchy of needs. This will help the organization in motivating their employees by making sure of their all essential needs. Appraisal system like giving bonus or incentives is also a strong recommendation to overcome the challenges of employee turnover rate. When employees will be motivated they will be enthusiastic in performing their task more efficiently. This in return will boost their spirit and the workers will enjoy performing their task. Therefore, this in return will reduce employee turnover rate by increasing brand image in the market place.
The major challenge that was faced by IKEA was regarding the deforestation the organization can engage a number of people to provide opportunity in the place where deforestation has taken place. Like planting same number of trees to avoid deforestation and increase sustainability. In order to maintain sustainability IKEA can use proactive risk assessment for ensuring that they supply safety products to the customers. The process helps them to evaluate, detect and eliminate all the harmful hazards from their products (Chilamakuri et al. 2014, p.449). Apart from that IKEA needs pays special attention towards the children product. They need to be supplied by maintaining high quality and by fulfilling the requirement of safety. Test needs to be done before they supply the products to customers. Moreover, IKEA need to do special risk assessment over the products that are made for children’s for avoiding any type of hazards. Besides, IKEA can use safety possible chemicals in their chemicals to promote sustainability in their products. IKEA can make encourage the employees to engage in recycling where they can recycle and reuse their products when they no longer want to use the same product. As CSR shows a huge impact on the customers, therefore, the organization can promote a little part of the fund to the non-profit organizations (Baumgartner, 2014, p.258). This will enhance their brand image and grow their sales when customers will see their better side in social responsibility.
Conclusions
As it has been found out that IKEA has implemented employee motivation and engagement. The employee motivation has resulted to the growth and development of the company in different sectors which are satisfaction of the employees, performance of the employees, and so on. The employees are properly directed and they are appointed in the correct activities in which they are capable of and can channelize their talent in the right direction. As the employees are motivated properly, the productivity of the employees will increase and as a result of it the profit generation of IKEA will also increase.
Presently the impact of Social corporate responsibility is immense. The performance of the company is not only measured by its productivity and employee turnover but it is also measured how the company has played role in the growth and developments of the environment and the society in which it is operating. Apart from it, IKEA has implemented so many factors and responsibilities in the society for which the employees who are working in the company or getting recruited is benefitted very much. IKEA is also implementing different kinds of information in their business strategy such that they can improve the CSR activities as well as their business.
Reference List
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