Importance of Employee Relation in HRM Decision Making

This article discusses the importance of employee relation in influencing HRM decision making and its impact on organizational profits and productivity. It also explores the key elements of employment legislation and their influence on HRM decision making. The article is based on a case study of IKEA, a multinational company.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
Task 1...............................................................................................................................................2
Purpose and functions of HRM applicable to workforce planning and resourcing an
organisation ................................................................................................................................2
strength and weaknesses of different approaches to recruitment and selection ........................3
TASK 2............................................................................................................................................5
Benefits of different HRM practices within organisation for employee and employer ............5
Evaluate effectiveness of different HRM practices in raising organisational profits and
productivity ................................................................................................................................7
TASK 3............................................................................................................................................8
Importance of employee relation in respect to influencing HRM decision making .................8
Key elements of employment legislation and impact it on HRM decision making ..................9
TASK 4............................................................................................................................................9
Illustrate application of HRM practices in work related context using relevant examples.......9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13
1

INTRODUCTION
Human resource management refers to a strategical tool that is used to manage and
organize the manpower of the organisation. It includes aim and utility of HRM and also involves
the approaches of recruitment and selection. It inculcates employer employee benefits with good
employment relations and it also shows the elements of employment legislation that is helpful in
pickings the decisions. This terms is very beneficial for an organisation in a way of earning more
profits and revenues with longer sustainability in the marketplace(Noe and et. al., 2015).
This study is based on IKEA that is one of the multinational group headquartered in
Netherlands and deals in all over the world having 433 stores globally that offers furniture,
household appliances and many other products which is useful for home services. It is a type of
holding company that is controlled by stitching INGKA foundation. To enhance their profits HR
manager can do tier functions and activities appropriately so that they can enhance their market
share.
Task 1
Purpose and functions of HRM applicable to workforce planning and resourcing an organisation
Human resource management: It defines an formal approach that is facilitative to
manage and organize the workforce within the working environment. In case of Ikea HRM is an
essential tool that includes the three core aspects like staffing, designing work and employee
compensation.
Workforce planning: This term defines as an effective tool for analysing, forecasting,
managing and planning the workforce demand and supply within organisation. In case of Ikea
this term is very effective for earning higher profits and longer sustainability within marketplace.
Functions of HRM: In case of Ikea HR manager play an essential function that helps in
encouraging employees for effective work so that firm may earn higher profits. Some of the
functions of HRM are as follows(Bratton and Gold, 2017).
 Managerial function: It is the leading phenomenon of the human resource management
that involves the various aspects like planning, organising, controlling and directing. In
this manager of Ikea can perform a following function so that goals can be attained with
the productive work. In this major purpose of this in Ikea is that it helps the HR manager
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to appraise the performance of worker and according to that planning can be done so that
task can be achieved and firm will earn higher profits.
 Operative function: It is an essential function of HRM in Ikea in which manager can
focusing on developing their employees growth and make collaboration between the
workers so that work can be accomplished in an impelling way. The primary purpose of
this type of function in Ikea is that it can helpful in promotive the employees so that they
can do their productive work and maintaining the good relation with other team members
so that goodwill of the company will be maintained in the marketplace(DeCenzo,
Robbins and Verhulst, 2016).
strength and weaknesses of different approaches to recruitment and selection
Recruitment is the process of attracting the number of applicant for the vacant job position
within the organisation. It is a positive process in the Ikea where HR manager can recruit
candidates by using two effective approach that can be shown below.
Approaches of recruitment: In case of Ikea some approaches to recruitment can be shown
below with their strength and weaknesses(Chelladurai and Kerwin, 2018).
 Job analysis- It refers to an effective approach of the recruitment that is adopting for
collecting the valuable information , skills and working environment for a particular type
of jobs. In case of Ikea, HR manager can analyse the job duties, responsibilities etc. for a
particular job so that it easy for them to effective select the appropriate candidate for a
vacant position.
◦ Strength- It helps in analysing the job and performance of the employees by
comparing the desired and standard outputs so that they can get the high results. In
case of Ikea. It helps the manager if Ikea in analysing the needs of training and
developments so that workers give their best.
◦ Weaknesses- The major weakness of this type of approach of recruitment is that it is
very time consuming and also the cost consuming. In case of Ikea if manager can
adopts this approach it may face the more cost and also in this collection of data are
also very small.
 Competency framework- This term defines the excellence of performance within the
business firm. In this manager of Ikea make assure that the employees have full
knowledge regarding the values and performance behaviour. Properly following this term
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within organisation helps in achieving the targets for earning higher profits. In context of
Ikea some benefits and drawbacks can be shown below.
◦ Strength- The major strength of the competency framework is that it helps in
measuring the individual growth within the organisation so that they can enhance it
for achieving the higher targets.
◦ Weaknesses- The major weakness of this type of approach of recruitment is that is
can ignores the social learning within the individual person they. In case of Ikea,
employees are only focus on enhancing their personal growth instead of social
performance due to this brand image of the company may be affected.
Selection is the process of an effective option in which a manager can select the foremost one
form the turn of applicant who are applied for the vacant position. In case of Ikea HR manager
can hire the best candidate for filling their position within the organisation and it includes
various approaches that can be shown below(Jabbour and de Sousa Jabbour, 2016).
Approaches to selection
 Aptitude test: This test refers to can effective term in which HR manager of Ikea can
evaluate and examine the performance of employees and how they react in different
situations so that they can assure that they can select the best out of many.
◦ Strength: This term is very effective for Ikea as it helps in knowing the power and
capacity to perform a particular task. This term also helps in earning profits and
longer sustainability of company.
◦ Weaknesses: The major weaknesses of this term in Ikea company is that it is very
time intense due to this HR manager cannot appropriately focus on other critical
decisions.
 Online screening: This term is an essential and effective approach of selection in which
HR manager of Ikea can screening the candidates by using online mode so that they can
select the best out of many due to which company may earn high profits.
◦ Strength: Using this approach in selection process in Ikea company is very effective
because it is less time consuming and manager can select the candidate effectively
and efficiently.
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◦ Weaknesses: The main drawback of this term in Ikea is that by using online
screening company may face fraud and false information regarding the candidates
due to this they can spend more time on further processes.
TASK 2
Benefits of different HRM practices within organisation for employee and employer
HRM practices refers to the routine work that a HR Manager of an organisation can
perform. In case of Ikea the major work of manager is to provide training and development,
organize recruitment and selection and follow a reward system that can benefited to both I..e
employer and employee which can be shown below.
HRM practices Benefits to employer Benefits to employee
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Training and development Training and development
process is an effective term as
it improves the overall
performance of an employees
due to this employer get
skilled labour. For example in
case of Ikea, this term is
benefited to employer as it
helps in giving the talented
employees that can attained
the goals within time
period(Hecklau and et. al.,
2016).
For employees training and
development practices of
HRM is very effective as it
helps in grow their
professional skills which helps
in their future. For example- In
Ikea this term is very
beneficial as it helps in
developed and enhanced the
personal and professional
growth which will helpful in
their career development so
that they get success in their
future period of time.
Recruitment and selection Recruitment and selection is
an essential term because it
gives the company a skilled
and knowledgable candidate.
This term is benefited to
employer in Ikea because by
using this aspect manager can
filling their vacant position so
that task can be achieved
without delay.
This aspect is very beneficial
for employees of the company
also because it helps in giving
the opportunity to getting the
higher position or getting
transfer because of their
effective and efficient work.
Reward management Reward management is an
effective term that is used to
treat the employees fairly and
equally. In case of Ikea this
term is beneficial for the
employees because they can
In this Ikea employees also get
benefited by getting the proper
rewards for their good work. In
this they also get encouraged
for the good work and due to
which their professional skills
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get the proficient result to the
company because of equally
treating employees. This also
helps in maintains the good
intercourse with the employees
so that they can share their
innovative ideas and goals can
accomplished on time.
also developed(Ahmad, 2015).
Performance appraisal Performance management is
an effective term that creates
benefits to the employers by
accomplishing the task on time
with the employees side. This
helps in gaining the profits and
revenues because of efficiently
completing the work.
For employees of the Ikea it is
very advantageous to the
employees because it helps in
enhancing their skills and
knowledge related to the task
so that they work effectively
and efficiently.
Evaluate effectiveness of different HRM practices in raising organisational profits and
productivity
 Training and development: It defines the educational framework within organisation
that is very helpful to enhancing the knowledge and skills of employees and provide
benefits to the employer by showing the effective results. This term is evaluated by Ikea
manager as it is very beneficial because it helps in enhancing the particular knowledge of
the employees so that they can achieves their target within a specified time period. It also
develops the productivity and proficiency within the working environment because of
providing the proper training to their workers(Guest, 2017).
 Reward management: By evaluating the term reward management by the Ikea manager
it is to be reflected that properly and fairly treating the employees according to their work
within the organisation helps in encouraging them to do their best in future also so that
organisation may achieves more profits that is the major aim of Ikea. Proper reward
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system also helps in enhancing the performance of an employees so that they give
efficient and effective results to their business firm.
 Recruitment and selection: This term is very effective as it is evaluated by the manger
of Ikea, because it helps in enhancing the profits and productivity of an employees. In
case of Ikea it is to be evaluated that using recruiting and selection process within
organisation helps in boosting the morale of employees so that they give effective results
to the problems and ach9ives their targets within time due to this firm may enjoy large
amount of profits.
TASK 3
Importance of employee relation in respect to influencing HRM decision making
Employee relation: It refers to an effective term in which manager of the organisation can
maintain the relation between the employees and senior authority. In case of Ikea, HR manager
can handle relations between workers and employers so that achieving the target is beneficial. It
also contains some importance that is very helpful in taking the decisions for earning proficiency
that can be shown below(Stone and Deadrick, 2015).
 Employee satisfaction: It is an essential benefit of the employee relation within the
organisation. In every firm employees are satisfied when they get the healthy and friendly
environment within the working place and it is only possible wi8th the effective relation
between the employees and employers. In case of Ikea, HR manager can satisfy their
employee with good effective relation and it is done with proper and effective connection
and transfer of information between the person. In this term employee relation is place an
positive impact on taking the decisions that helps in earning more and more profits(Tung,
2016).
 Employee empowerment: It is the another benefit of the employee relation as it helps in
maintain9ing the employment empowerment so that they work effectively and
effectively. In context of Ikea, HR manager can focuses on maintaining employment
relation by giving them some authority as per their skills and knowledge so that they can
take decisions to get the proficient results and due to this it will positively impact the HR
important decisions because operation level decision can be taken by employee itself and
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due to this manager effectively focus on major critical decisions that gives more profits
and growth to the firm.
Key elements of employment legislation and impact it on HRM decision making
Employment legislation: This term defines as the laws and rights related to the employment
standards and their relations, health and safety, compensation etc. In case of Ikea, HR manager
can follows all the rules and regulations that so that it positively influence the decision making
within the organisation(Delery and Roumpi, 2017).
 Health and Safety law: This law suggested that HR manager of Ikea can focus on
employees health and safety for this they can provide the insurance and medical facility
to their employees so that they get encouraged towards the effective work HR can
direction on taking decisions that is giving more revenues and large market share to the
organisation. If the laws and legal rights cannot adopting in an appropriate way than it
will negatively impact the effective decisions that will reduce the overall profits of the
company.
 Equality law: It refers to that legal right in which manger of Ikea can focus onj
providing the equal pay and salary according to their skills and capability so that they
would encouraged towards the effective work and manager can effectively focus on
taking essential judgement(Tung, 2016).
TASK 4
Illustrate application of HRM practices in work related context using relevant examples
In Ikea, HR manager is searching for marketing manager position within the organisation
so that they can sale the companies products in an effcerft8ive way and enhancing the sales
within the organisation. For this they can maintain some application which includes job
description, person specification, documentation, and at last offer letter to the selected
candidate(Voegtlin and Greenwood, 2016).
Job description
Title of job- Marketing manager
Departmental unit- Marketing department
Job summary- Marketing manager play a significant role in Ikea because they can make a
9

strong connection with the customers and generate more profits that is the aim of the company.
They generally manage all the things related to markets where the goods and services to be
sold.
Responsibilities and duties
 Effectively communicate with customers and internal employees.
 Creative solutions to the problems
 developing skills and knowledge to encouraging firms profits.
Qualification and Education
 management knowledge
 communication skills
 maintaining team skills
 masters in marketing degree
 follow proper ethics of work.
Person specification
Job position – Marketing manager
functional area- Marketing department
Essentials
 properly communicate with their team members either written or verbal communicate
the information.
 Experience related to 1 years
 ability of using all the techniques in an effective mixture.
Desirables
 In this candidate have the full knowledge about how to handle the situation related to
customers and maintains a good relation in and outside the firm.
Interviews questions
It is very essential to prepare the questions and set the environment for taking the
interviews because it helps in showcasing the image of the company in the number of applicant.
For this it is very essential for the HR manager of Ikea to prepare the notes so that selecting the
10

appropriate person for the vacant job is easy. In this manager can carefully examine the job
description for which they can select the candidate.
 Tell about yourself?
 Capability of tackle the difficult situation?
 Tell your strength and weaknesses?
 How I will hire you on the marketing manger post?
job offer letter
Job offer letter
Ikea
Delft, Netherlands
July 9, 2020
Dear PQR
Human resource manager
Our hiring team is overwhelmed to meet and get to know you. Its Ikea pleasure to offer you a
position of Marketing manager where you report to the top authority that is belong to the office.
Your expecting date would be August 20 with a decided salary and other pay and other benefits.
This job is considered as a full time job and if are ready for working with our company please
come to the office premises with all legal documents.
Sincerely
XYB
Human resource manager
Ikea
For the HR executive role Ikea can select PQR because he can fulfils all the needs and
wants for this job roles. He is very passionate and their communication skill was also very
strong. PQR also have the management degree with one year of experience. Hence, he is suitable
for the HR executive in all ways so that selection process can be done successfully by the
company due to this firm will enjoy the higher success and longer sustainability within the
marketplace.
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CONCLUSION
To the upper explained report it is to be concluded that human resource manager play an
essential role in succession of the organisation. It focuses on the various terms related to HRM
where plays an significant function that includes various purpose according to aspects. It
includes approaches of enlisting and assortment that helps in gaining the profits within the firm
also initiate productive work of the workers. It also suggest importance of employee relation that
influencing decision making. In this various aspects of HRM creates a benefits for employer and
employee both. At last HRM application helps in recruiting and hiring the candidate so that
institution may enjoy large amount of sales.
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REFERENCES
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