Topic > Organizational Structure Analysis And Analysis...

In modern times, organizational architecture plays a key role in enabling companies to succeed in the market. Organizational architecture, also known as organizational structure, defines a structure in which the specific company, regardless of whether job roles, decision making or responsibility, are centralized, delegated or coordinated. Organizational structure also identifies how information flows from one level to another within the company. IKEA is one of the internationally renowned companies that designs and produces home furniture such as bed bases and desks. The company is also a leader in furniture retailing and has become the largest furniture retailer globally. Therefore the structure of a company is an important factor in achieving rapid growth. This document aimed to describe IKEA's organizational architecture and provide analysis on any recommendations or changes that should be made based on current information. IKEA has a slightly different organizational structure than other large global companies. Ingvar Kamprad founded IKEA in Sweden in 1943 when he was 17 years old. The company vision is "Creating a better everyday life for many people" (Inter-IKEA Systems BV, 2014). Truly, IKEA has provided a lot of home furniture at a price that is acceptable to consumers. Furthermore, the IKEA group of companies has an ownership structure that ensures independence and maintains the long-term sustainability of the company. The IKEA group includes INGKA Holding BV which is still a private company, both parts were owned by the Stichting INGKA Foundation (Inter-IKEA Systems BV, 2014). The Stichting INGKA Foundation can only use its funds to donate to charity through the foundation or to reinvest in the workplace. Being a flat structure, employees have few levels of hierarchy (BBC, 2014). By setting multiple levels of hierarchy, which can motivate staff and enable them to achieve better overall performance. Therefore, the suggestions provided can help the company to sustain and achieve the next goal in the future. To conclude, this document represents the success of the IKEA group when applying the appropriate organizational structure to their company. The company has no doubt that it will benefit from using a decentralized structure, including increasing the speed of making decisions and forming simple layers of management organization. However, the company can also expand its centralized control using modern technological devices to achieve maximum results. Despite the current problems for them, IKEA has brought many great designs suitable for many families.