IKEA cross cultural management in child labour issue
Managing cross-cultural factors are considering as one of the most important aspects in doing a business for MNCs. In the global environment, many different organizations face significant problems in managing cross cultural issues; one of these is IKEA. IKEA is known as one of the giant furniture retailers, its vision is to create a better everyday life for the many people. Therefore, the company has done its best to initiate the strategy to reach their objects. However, as the company expand in the global market, IKEA has encountered different social issues in the cross culture management. The child labour issue is one of seriously issues has been wide discussed. Even thought, IKEA is not the company directly using the children labour, the raw material producers who has cooperate with IKEA has been considered using the child labour, such as companies in developing countries, India and Pakistan.
IKEA’s management find that they are accountable for child labour issue in these countries, as they are benefit from the cheaper material produced by the children. However, the issue is high relating to the culture factors within these countries. IKEA as a European based organization, it is difficult for IKEA to deal with the issues with the countries have different cultures. However, the objective of this paper is to analyse the cross-cultural management theories and how these theories can be applied to deal with the IKEA’s child labour issues.
Theories of cross-cultural management
Cross-cultural management focuses on studying the behaviour of people from different cultures background working together within an organisation (Adler, 1983). Most studies in the cross-cultural management aim at solve the problems of organizational behaviour, such as motivational approaches, organizational structure, strategy and leadership style, (Morder, 1995). Three aspects of cross-cultural theories are discussed in...