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Comparison of the two companies’ strategies

Both Ikea and Apple have a human resource strategy that promotes competitiveness by attaching great value to the employee. At Ikea, the company employs people from different cultural backgrounds and ensures that they are hard-working and possess strong communication skills. The company has also created a competitive benefits system to attract and retain qualified employees, and motivates them so that they can work more effectively. The same applies to Apple, whose employees view themselves as customers and are therefore able to visualise the type of products that customers want. Apple also attaches great value to innovation, and empowers its employees to come up with great technological innovations that are reflected through simple and easy-to-use products that the company produces. Although the two companies operate in different industries, it can be seen that they value their employees.

There is stark contrast between the compensation strategies of the two companies. Whereas Ikeas pursues a low-cost strategy and thus its remuneration to employees is comparatively low, Apple is a premium company that pays its employees highly. Ikeas pays its employees amounts that are slightly above the minimum wage, although most pay increases are usually negligible. This may be challenge for the company with regard to employee satisfaction since compensation is said to create avenues for fulfilment of human and material wants of life, ultimately leading to satisfaction (Deb, 2009, p. 150). In addition, extrinsic motivation such as compensation can boost employee performance (Deb, 2009, p. 150). On the other had, Apple’s high remuneration and additional benefits such as allowing employees to invest in the company’s stock are likely to increase the employees’ levels of satisfaction.

With respect to employee benefits, Ikea offers benefits such as paid vacation and sick time to both full-time and part-time employees. It can therefore be said that Ikea uses extrinsic motivators to ensure that its employees stay on. Apart from the pay itself, other extrinsic motivators include fringe benefits, job security and working conditions (Lussier & Achua, 2013, p. 84). Ikea uses these factors to ensure that even part-time employees stay with the company for long. When it comes to Apple, it is clear that the company focuses on providing both extrinsic and intrinsic motivators. Intrinsic motivators include achievement challenge, recognition, and advancement (Lussier & Achua, 2013, p. 84). The extrinsic motivators offered by Apple include pay, discounts to employees on some new products, an environment where employees can do their own work freely, and a fitness centre. It is clear that Apple offers intrinsic motivators in the sense that it encourages its employees to come with new ideas to create more projects.

With respect to the use of human resource information systems, both companies have some system by which they can collect, save, track and analyse data about issues pertaining to the company and its employees. The companies use such a system to for activities such as monitoring attendance, salaries, employee benefits and announcement of new rules. Both companies also use human resource information systems to improve communication between the management and employees.


Deb, T. (2009). Compensation management: Text and cases. New Delhi: Excel Books.

Lussier, R. & Achua, C. (2013). Leadership: Theory, application, & skill development (5th edition). Mason, OH: South-Western Cengage Learning.