Paper Example on Leadership Theories That Apply in the IKEA and Walmart

Published: 2023-01-12
Paper Example on Leadership Theories That Apply in the IKEA and Walmart
Type of paper:  Case study
Categories:  Company Walmart Business management Leadership style Transformational leadership
Pages: 7
Wordcount: 1826 words
16 min read

Assignment 1: IKEA Case


Based on the IKEA case study and the information provided by the animation YouTube presentation, there are specific leadership theories applicable to IKEA. One of the theories applicable to IKEA's case is the transformational theory. According to French, Rayner, Rees, and Rumbles (2015), the transformational theory of leadership is whereby leaders together with their followers raise each other to higher moral levels and motivation through the incorporation of integrity, fairness, setting of clear goals, as well as having high expectations. The founder of IKEA, Ingvar Kamprad, set the culture of the company where leaders and their followers aim at raising each other through high levels of the morality of humility, hard work, simplicity, as well as responsibility (Dudovskiy, 2019). Leaders in the company cultivate followership by accepting the values of their followers as well as having the willingness to respond on their ideas based on the morals set by the founder for a workplace environment that support the growth of everyone within the leadership hierarchy.

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Transformational leadership theory also applies to IKEA on the aspect of support. Leaders in the company are supportive which occurs through values of togetherness as well as enthusiasm. The company also operates under an open-plan office system which enhances sharing of information, skills, and experiences which enhances the process of leaders and their followers to support each other (Christianity 9 to 5, 2013). Besides, the organization has clear goals that every co-worker not only gets supported to achieve but also contributes to the attainment of the set objectives. Moreover, through the value of will power at IKEA, leaders and their followers are in a position to raise each other by having an agreement on how to attain mutual objectives irrespective of the underlying challenges.

Another leadership theory for application at IKEA is situational theory. French et al. (2015) defined the situational theory of leadership as there is no best style of leadership but what matters is the ability of the leader to suit in varying situations and followers. As per the situational theory, a leader is the one supposed to change by applying various leadership styles that suits the kind of the situation, tasks, expectations, policies, or followers at hand. At IKEA it is expected that co-workers ought to fit within the culture of embracing high standards of moral values of humility, responsibility, thrift, simplicity, willpower, as well as togetherness. The company ensures that the co-workers are in a position to fit within the set culture that embraces these moral values. Working within the culture of shared values caused leaders and their followers to apply appropriate leadership styles that fit in the established workplace environment (Dudovskiy, 2019). The leaders and their leadership at IKEA apply situational theory by using leadership styles that enable them to fit in an organization with a culture shared values, enthusiasm, as well as togetherness.

Apart from transformational and situational theories, the managerial grid is another leadership theory that applies in IKEA's case. As per French et al. (2015) managerial grid theory is a leadership technique used by leaders to analyze their leadership styles through the grid training method. The focus of this kind of leadership theory is a concern for people as well for production. Regarding the concern for people, at IKEA, leaders consider and respect the needs, interests, and personal development of co-workers. The company utilizes the value of willpower and shared values to come up with mutual objectives based on respecting the concerns, interest, and development of leaders and their followers. Regarding concern for production, on the other hand, leaders at IKEA emphasize teamwork, hard work for increased productivity. The conditions and expectations set by the company aimed at enhancing organizational efficiency in increasing its level of productivity (Christianity 9 to 5, 2013). Shared values, enthusiasm, as well as will power set by the company for ease in accomplishing tasks and meeting the set mutual objectives.

How to Sustain the Current Culture at IKEA as a Manager

As a manager at IKEA, I will apply various techniques that will help in maintaining the culture of shared values and togetherness in the company. Maintaining organizational culture is ideal because it builds the uniqueness of the company which leads to a competitive advantage against competitors in the market place (French et al., 2015). One of the ways that I use to maintain the culture of the company is to ensure rigorous hiring. Through rigorous recruitment, the organization will be careful to employ staffs that are having the qualifications that are in line with the existing cultures. For instance, because of the culture of shared values, togetherness, as well as will power recognition, I will ensure that the hired employees have the necessary moral values like respect as well as ability to work as a team. I will foster strict hiring of workers that will enhance the maintenance of the organization through team approach interviewing (Power, 2019). I will encourage the human resource department to create a competent team that checks on the skills, experiences, and knowledge of the culture of shared values in candidates during interviews.

The other way that I will use to sustain the current culture at IKEA is to talk about company values, expectations, and goals. Talks about the company values remind the management as well as the employees on the expectations, tasks, as well as actions that are in line with the current culture (Power, 2019). Therefore in every opportunity that I get as a company manager will be informing the employees about the company cultures. I will provide opportunities like annual general meetings, the orientation of newly employed employees, as well as during staff meetings. When people are frequently reminded of the company values, they work towards meeting the expectations of the employer which leads to having the current culture sustained (French et al., 2015). As a result, I will ensure that the values of the company are the focus of the information shared in my speeches when addressing workers as well as other stakeholders to sustain the current culture.

Other than rigorous hiring and talking about the company values, another method that I will use to sustain the culture of shared values it IKEA as a manager is recognizing the achievements and contributions of employees. The workforce is the driving force behind maintaining the culture of a company, therefore, recognizing their contributions and achievements in enabling the company to achieve the set targets allows for a sustained company culture (French et al., 2015). As a manager at IKEA, I will make sure that employees get recognized and appreciated for their contribution in promoting company culture. I will be rewarding such employees in various ways such as promotions and provision of personal development opportunities (Power, 2019). When the employees realize that the management recognizes their efforts, they become motivated to enhance the process of sustaining the company culture.

Assignment 2: Walmart Case

Description of Walmart Organizational Climate

Organizational climate is one of the essential aspects that determine the success of an organization. According to Wilkinson (2019), organizational climate refers to the way people experience the work environment at a given moment. Organizational climate is an indication of how people feel in an organization's daily or generally. People have feelings about their place of work being friendly, having excellent customer service, or people do not value one another. Such descriptions describe the climate of an organization. Organizational climate is of importance because it determines the culture of the organization. When people experience the same climate for an extended time, such attitudes, and perceptions about a company becomes, it becomes the organizational culture. Another importance of organizational climate is that it determines the daily interactions, attitudes, feelings, and perceptions of people about the company that in the long run determines the level of productivity (French et al., 2015). Therefore, organizational climate is essential because, in the long run, it determines the culture and the level of productivity in an organization

Business climate affects the organization; first, a good organization climate motivates employees to perform better. Exposing employees to a favorable business climate causes them to think on how to deliver quality services to an organization due to the belief that people around them are supporting and appreciating their success (Wilkinson, 2019). The other effect of a good business organization is that it enhances the interaction of people in an organization that allows teamwork and concerns about each other's affairs. Bad business climate, on the other hand, affects the organization negatively. When the business climate is bad, employees perceive the company or fellow workers in a negative way like being unfriendly, bully, incompetent, unfair. Such feelings and perceptions about the company or employees lower the morale of working hard in meeting the set targets (Dudovskiy, 2019). Therefore, for improved performance, it is ideal for an organization to have a good business climate.

Concerning Walmart, the company has a unique organizational climate, and generally, the psychological perception about the organization by both the employees and customers is positive. One way in which people perceive Walmart is that it is a cheaper place for one to shop from (Walmart, 2019). On entering Walmart's retail shops, there is a sense of evaluating price versus quality. The comparison provides the notion of the company selling its services and products at a lower price. Customers see the products and services as of high quality provided at a lower price. Therefore, the company has become one of the choice retail shops where people from different parts of the world shop. Walmart's organizational climate of selling at a lower price also motivates workers to market for its products. The employees are motivated and proud of working with an organization that helps its clients to save money while accessing high quality products and services. The management, on the other hand, embraces quality by improving the standards of the services provided to its clients to create a robust brand in the market place (Wilkinson, 2019). Therefore, the organizational climate of being a cheaper retail shop benefits not only the customers but also the employees and the management.

The other way in which people describe the organizational climate of Walmart is that it is a place with different kinds of products. People have a feeling when they enter a Walmart outlet that is a place where various types of products such as electronics, food, office supplies, toys, clothing, and even school supplies are available. The company establishes such an atmosphere by having a variety of products as a way of improving customer service (French et al., 2015). The company wants to attract customers by ensuring that their needs are met under one roof. Having a sense of Walmart as a center of different products by the buyers has increased customer coverage in the market place. Clients find it convenient and time-saving to shop at Walmart because of the presence of a variety of products that they might require (Walmart, 2019). The employees also perceive Walmart as a place where variety is provided and become motivated to deliver quality services both to the company and the customer.

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