International Human Resources
Essay Preview: International Human Resources
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International Human Resource Management (BUSM 2449): Assignment 1 Ikea in Germany and IndiaThomas Batarilo (group leader) s3509613Harrison Sullivan s3489100Fan Ka Man s3590413Khalia Chikulin s3486801Contents Executive Summary→
When looking at Ikea in terms of human resources is their commitment to their employees. They strive to provide an environment, which fosters a sense of community and awareness not just for individual sites but globally. The organisation places a large emphasis on decentralizing its operations in order to give their employees more responsibility and accountability in the workplace.IWAY is the code of conduct set out by IKEA and is applicable to all stores globally. This document sets out the guidelines for everything from treatment of general conditions to harassment, abuse and disciplinary actions. This document is therefore heavily used and may need to be altered in order to meet individual nation state standards.In a political sense Germany doesn’t have much autonomy when compared to other countries operations; as Ikea’s policies, laws and processes are quite similar in all stores and countries throughout the world. “According to the Ikea website is states that “we are from all over the world but share the fundamental humanistic values that our culture is built upon togetherness, simplicity and cost consciousness”.Ikea’s policy on recruitment, the development of professionals and employees are very similar within all markets. Effectively Ikea in Germany employs a Host Country National System as it’s go to approach, its easy, cost effective, and moreover avoids the battles with language barriers. For the company to achieve it’s vision that is “to create a better everyday life for the many people” all of the employees of Ikea in Germany are recruited on this philosophy. Thus signifying that the recruitment of its employees doesn’t despite the culture differences that may occur.Germany is a country with many stringent employer and employee relation’s regulations.  Laws in Germany are often referred to as “Employee Protection Laws” as they are written to preserve the rights of the employee. According to the International Labour Organisation the most key acts relating to employees in Germany are The Civil Code, The Works Constitution Act and The Act on Collective Agreements. Under German law no employee is allowed to enter the workforce without a written contract. This type of formal employment helps to eliminate the exploitation of workers and increases the ability of an employee to ensure they have safety in the workplace.A number of ways employees are protected within Germany are:Parental leave is available for a maximum of three years, with reimbursement being 67% of net earnings paid over 14 months. This amounts to a threshold minimum of 300 Euros, and maximum of 1,800 Euro and is all paid by the Social Security System.Sick leave – in case of sickness leave the employer is obliged to pay the full wage for up to six weeks. The worker must have been employed for a minimum period of at least four weeks for this to apply. After six weeks, the health insurance covers 70% of the gross salary in case of long-term sickness. Termination of an employment relationship while a worker is on sick leave is prohibited unless unlawful conduct is detected.