MPHR7113 Assignment 1: Marketing Management IKEA Malaysia Retention Strategy – City University Malaysia

SPECIFIC INSTRUCTION

1. Answer in English.

2. Number of words: 3,000 – 4,000 words excluding references.

3. Submit your assignment ONLINE in LMS using MSWORD or PDF only.

4. This assignment is to be completed by INDIVIDUAL

5. Submission date: 16 FEBRUARY 2025

6. This assignment accounts for 30% of the total marks for the course.

7. Important Notes:

Make sure to include your name and student ID in your submission.

Late submission results in zero marks for the assignment

Font type: Arial

Font size: 12

Spacing: 1.5

Paragraph: Justify

Reference: use APA 7th Edition format

Answers/points/content MUST be supported by literatures.

STRICTLY NO COPY AND PASTE/ NO PLAGIARISM/ NO CHATGPT – marks will be deducted.

ASSIGNMENT QUESTION

Objective:

The purpose of this assignment is to enhance learners’ ability to evaluate and make decisions based on readings related to human resource management issues to develop learners’ ability to apply organisational concepts and to analyse the real-world practices into academic concepts.

IKEA Retention Strategy: Addressing Turnover Challenges in Malaysia

IKEA is a globally recognized leader in the retail industry, specializing in affordable, high-quality furniture and home goods. With a vast global workforce of over 225,000 employees as of 2023, IKEA is renowned for its people-focused culture, emphasizing inclusivity, sustainability, and innovation. However, IKEA Malaysia faces significant challenges in retaining its workforce, with an annual turnover rate of 18%, considerably higher than the company’s global average of 11%. This elevated turnover threatens operational efficiency, team morale, and the ability to deliver IKEA’s renowned customer service.

Upon closer examination, several key factors have been identified as the root causes of employee attrition in IKEA Malaysia. Firstly, limited career advancement opportunities within the local market leave employees feeling stagnant and unmotivated. While IKEA globally provides numerous growth pathways, the lack of localized programs tailored to Malaysian employees hinders long-term career development. Secondly, employee engagement levels have suffered due to a disconnect between management and frontline staff. Insufficient communication, limited recognition of employee contributions, and a perceived lack of inclusion in decision-making processes have further disengaged employees. Lastly, IKEA’s compensation packages in Malaysia are perceived as less competitive compared to other retail giants in the region. This includes both monetary and non-monetary benefits, with employees feeling that their efforts are undervalued in a rapidly growing and demanding retail market.

Recognizing these challenges, IKEA Malaysia has set a clear objective: to implement a comprehensive retention strategy aimed at reducing the turnover rate by 7% within one year. This strategy focuses on three key areas—enhancing career advancement opportunities, fostering employee engagement, and revising compensation packages to better align with industry standards. By addressing these core issues, IKEA Malaysia aims not only to retain its talented workforce but also to reinforce its reputation as an employer of choice in the retail sector.

Your Task:

To propose retention strategies. The primary goal is to reduce the turnover rate by 7% within the next year by implementing effective retention strategies. The focus will be on improving career growth opportunities, fostering employee engagement, and offering competitive compensation.

Write a report (3500-4000 words maximum) that addresses the following Assignment Structure:

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