Case 1
Case description:
Although IKEA has recently initiated an American style performance review procedure, which requires documenting employees’ individual performance strengths and weaknesses, Swedish managers feel uncomfortable with the formality of the system and the need to provide negative feedback. Since they hold the more senior positions, their ambivalence has resulted in little real discrimination in pay increases which are directly linked to the reviews. Although turnover at IKEA is lower than the industry average, and coworkers generally appreciate IKEA’s caring environment, there is some latent discontent with the way pay increases are distributed, even among long-term employees who feel that their individual achievements are not always rewarded.
In the opinion of one American manager, “A lot of people have left IKEA because they can’t move up fast enough here. Some left the store to go to the Service Centre(IKEA’s national headquarters) then left because it was too hard for them to adjust, there was no clear frame of reference in terms of policies and procedures. We have lost some key American managers because they didn’t have a clear idea of their role or future in the organization.” Case 2
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