Human Resource Management - Ikea Assignment

HUMAN
RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1. Motive and functions of HRM.........................................................................................3
M1. Assessment of functions of HRM to provide talent and skill.........................................4
P2. Strength and weakness of different approaches of selection and recruitment.................4
M2. Evaluation of different approaches of selection and recruitment...................................5
D1. Evaluation of different approaches of recruitment and selection with examples............6
TASK2.............................................................................................................................................6
P3. Advantages of different HRM practices to employer and employee...............................6
P4. Effectiveness of different HRM practices in relation to the maximisation of operational
profits and productivity..........................................................................................................6
M3. Explore different methods used in HRM practices.........................................................7
D2. Critically evaluate HRM practices and application within an organisational context.. . .7
TASK3.............................................................................................................................................7
P5. Importance of employee relation. ....................................................................................7
P6. Crucial constituents of employment legislations.............................................................8
M4. Important aspects of employee relation management and employment legislation.......8
TASK4.............................................................................................................................................8
P7. Applications of HRM practices in work related context. ..............................................8s
M5. Provide a rationale for the application for specific HRM practices. ..............................9
D3. Critically evaluate employee relation and application of HRM practices.......................9
CONCLUSION ...............................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Human resource management is the combination of three different terms which means
that human beings or workforce are the most vital resource in the business organisation and they
needs to be managed appropriately. Organisation undertaken in this report is Ikea which is a
private retail firm and has commenced its business from the year 1943 and serves different
products and services like furniture and home ware. This report will concentrate on explaining
purposes and functions of different HRM (Ahlvik, Smale and Sumelius, 2016). It will also
illustrate the different strength and weaknesses of approaches of workforce planning. The report
will also concentrate on evaluating the effectiveness of the important elements of HRM. The
later part of the report will focus on analysing internal and external factors of business
environment and it will apply different HRM practices in the work related context.
TASK1
P1. Motive and functions of HRM
Human resource management is the term which is concerned with the management of
workforce with the help of recruitment, training, development, performance appraisal, etc. within
the organisation. It is very important to manage the human resources because they are most
crucial asset for the organisation. Human resources are the individuals who take various steps in
order to accomplish business goals and objectives. Ikea will adopt the different functions of
HRM into its practices so that human resources can be used effectively and efficiently. The
following are the different functions discussed below:
Operative functions
 Recruitment: The process of recruitment is related with identifying and searching for
perspective candidate and stimulating them to apply for jobs in an organisation. The
purpose of recruitment for Ikea is to pull in and empower the people to apply for the jobs
for the vacant positions in the organisation. Apart from this, it also helps in determining
the present and future requirements of the job (Bondarouk and Brewster, 2016).
 Job analyses: The job analyses is the HRM practice which helps in describing the skills,
qualification, knowledge, etc. needed for a particular type of job. The purpose of this
function is to identify right candidate who can accomplish the business goals and
objectives effectively and efficiently.
 Performance appraisal: The performance appraisal is a organized approach where in
the contribution to accomplish business growth and success is evaluated as per the each
individual. The purpose of this in Ikea is to provide regular feedback on the performance
of the employees so that they will know where they are correct and wrong. It also helps in
ensuring the clarity of expectations and actual results.
 Training and development: Training is one of the most important factor which aims to
develop the individual in the organisation by imparting the adequate training through
which the employees will be able to acquire new skills and knowledge of performing a
job. The purpose of training in Ikea is to improve the performance of the employees and
boost their morale and satisfaction level (Chiang, Lemański and Birtch, 2017)
Managerial functions
 Planning: This is one of the most important function in Ikea wherein the quantity and
quality of employees needed in the organisation is determined. The purpose of human
resource planning is to ensure the adequate and regular supply of workforce as and when
required.

 Organising: The function of organising is concerned with the delegation of work
between different employees as per their skills and qualification. The purpose of this in
Ikea is to ensure that each employee is working with full potential and the task assigned
to them is in relation to the qualifications and skills.
 Directing: The directing function of HRM is concerned with providing motivation to the
employees such that they remain channelised at each and every step in the organisation to
accomplish business goals. The purpose of this in Ikea is to ensure that employees are
motivated at different level so that they use their full efforts in order to achieve the targets
(Collings, Wood and Szamosi, 2018).
 Controlling: This is another crucial function in which the performance of the employees
are measured with the set expectations and if any deviation occurs then corrective actions
are taken. The purpose of controlling in Ikea is to ensure that employees are working
effectively and efficiently.
M1. Assessment of functions of HRM to provide talent and skill.
The above discussed functions of human resource management plays a vital role in the
organisation. These functions are very crucial because of the highly dynamic business
environment, the employees needs to continuously improve the skills and talent so that they can
contribute with their full potential and capabilities. By applying those functions in the everyday
practice, the Ikea will be able to boost the morale and knowledge of the employees such that they
will contribute effectively and efficiently in the attainment of business goals.
P2. Strength and weakness of different approaches of selection and recruitment.
Recruitment and selection are the most important elements in the business organisation
because it helps in acquiring and selecting the best candidate for the business (Diaz-Fernandez,
Bornay-Barrachina and Lopez-Cabrales, 2017). The process of recruitment is involved in
searching for perspective candidates while the process of selection is concerned with selecting a
personnel who is able to clear to different set of interviews and tests.
Sources of recruitment
 Internal recruitment: The term internal recruitment is concerned with hiring an
individual from within the organisation. This type of recruitment can takes place in form
of promotions, transfers, etc.
Strength Weakness
When a person is hired internally then this
reduces a lot of time for hiring and also saves a
lot of money. Apart from this, the recruited
candidate is already known to the working
style of the Ikea.
Sometime, when a person is recruited
internally then, this creates a negative and
conflicting feeling among the people who are
working at same level and they may be
dissatisfied with the decision of the Ikea.
 External recruitment: The term external recruitment is related to the recruiting a person
from outside the organisation. This type of recruitment can take place in the form of
campus placements, online job application, etc.
Strength Weaknesses
When a person is recruited externally then it
creates an opportunity for the Ikea to attract a
large number of candidates and a best person is
The process of external recruitment is very
expensive and is highly time consuming. And
this can also hampers the morale and

selected for the company who brings in fresh
and innovative talent.
motivation level of already existing employees
in the Ikea.
 Job analyses: The process of Job analyses is concerned with gathering and analysing the
information about the kind of human requirements needed in the organisation (Ehnert,
Parsa, Roper, Wagner and Muller-Camen, 2016). This analyses will help the Ikea in
definition the different roles and responsibilities, nature of the job, etc.
Strength Weaknesses
This helps in directly giving the job related
information to the candidates and monitors the
performance assessment and appraisal
methods.
It has one of the major disadvantage of lengthy
process where it consumes a lot of time. And
this also needs hard work and dedication which
majority of the people lacks.
 Selection: The process of selection is highly dynamic where it varies from one company
to another. Under this, the candidate is selected for the organisation by qualifying all the
relevant test and interviews. In Ikea, the company can use various different types of
selection methods like online screening application form, interviews, presentations, group
exercise, tests like aptitude, physical, etc.
Strength Weaknesses
The pre employment test under the selection
process helps the HR manager of Ikea to know
and measure the applicants skills and the
manner in which it fits into the organisation.
The major disadvantage of this is that it never
gives a whole picture because candidate may or
may not be honest (Hauff, Alewell and Katrin
Hansen, 2017).
Interview: It is systematic approach of selection wherein the interviewer goes deep
inside the life of the candidates in order to know and judge the skills, capabilities and qualities of
the person. Ikea will use different kind of interview in order to select the best candidate for the
company. There are various types of interviews like panel interview, online interview, telephonic
interview, etc.
Strength Weaknesses
It is the useful way through which the
information about the applicant can be
obtained properly.
It becomes expensive when large number of
candidates are attracted and also requires a lot
of time.
M2. Evaluation of different approaches of selection and recruitment.
Recruitment and selection works together in the organisation and for assessing their
strength and weaknesses the different approaches like contemporary and contingency approaches
that are used by the organisation (Moore and Jennings, eds., 2017). The contemporary
approaches are those wherein the new and innovative techniques are used in the organisation
whereas contingency approaches are those which is concerned with facing various business
situations which are different from one another. Therefore, the different approaches of
recruitment are internal and external and the approaches of selection can be tests, interviews, etc.
The strength and weaknesses are already discussed in the above question.

D1. Evaluation of different approaches of recruitment and selection with examples
Different approaches of recruitment and selection can be used by Ikea depending upon
the availability of candidate and type of job available. For instance, when the organisation has
suitable candidate who are capable enough to perform the higher level job and also the company
wants to invest less, then they can use Internal recruitment approaches. But when company aims
to meet the competition and requires new and innovative skills for the company then in such
cases they will go for external recruitment approaches as internal recruitment restricts entry of
fresh talent within firm.
TASK2
P3. Advantages of different HRM practices to employer and employee.
Employer is the person in an Ikea who is responsible for assigning the work to the
employees and overlooks them regularly to provide training and other requirements. Whereas
employee is a person who works for the company and in return gets salary or pay for performing
the work.
Advantages to the employer
 The practice of recruitment will provide the advantage to the employer in order to attract
and retain the large pool of candidates and selecting the best one who meets the
requirements of the jobs.
 The practice of HRM will also enable the employer in resolving the conflicts which may
takes place within the organisation. This will help them in maintaining and building the
suitable working atmosphere for the employees which enables them to work productively
(Noe, Hollenbeck, Gerhart and Wright, 2017).
 The employer will be able to adopt different ethical consideration which will help them in
building safe and secure environment at the workplace and also in attainment of business
goals and objectives effectively and efficiently.
Advantages to employees
 The training and development practice of HRM in Ikea helps the employees in enhancing
their learning power and skills which are required to meet the competition and perform in
a more better way. These skills and competencies will help employees in their future
career growth.
 The performance appraisal practice of HRM in Ikea will enable the employees in
evaluating the work performed by them which will boost their morale and channelise
them to work with full potential and zeal in the company.
 The employees are also required to work within the flexible working hours which will
help them in maintaining the balance between the personal and professional life and also
there will be less burden of work.
P4. Effectiveness of different HRM practices in relation to the maximisation of operational
profits and productivity
HRM practices plays a vital role in the success and growth of the company. When the
Ikea is able to adopt the different HRM practices then the company will be able to move in a
froward direction because it will be able to manage its human resources effectively and
efficiently. The following are the practices discussed below which contributes in raising
operational profits and productivity:
 Performance appraisal: It is very important for Ikea to apprise the performance of its
employees in financial or non financial aspects like raising salary, bonuses, etc. because

this will help the company in retaining the employees. When employees will be retained,
then they work with full potential and zeal in order to improve the profitability and
productivity for the company.
 Recruitment: The process of recruitment helps in bringing the new and innovative talent
to the company who can use fresh ideas and critical approaches for leading the greater
profits and productivity for the company.
 Training and development: When the Ikea is involved in providing regular training to
the employees, then they will be able to develop themselves and work more harder which
will lead to the attainment of profits and productivity.
M3. Explore different methods used in HRM practices.
HRM is a very broad terms and have various methods of each practice of the HRM. For
instance, when training is provided to an employee of Ikea then this training can either be on the
job or off the job (Paauwe and Boon, 2018). Similarly when the Ikea is thinking to recruit a
candidate then this recruitment can be internal or external and in internal it can be like
promotions, transfers, etc. whereas in external it can be campus recruitment, job interview, etc.
D2. Critically evaluate HRM practices and application within an organisational context.
The HRM has a wider aspect of the different HRM practices and applications where in
each practice is evaluated critically. For instance, when Ikea will provide training to its
employees then the training will help in developing the skill and knowledge of the individuals
while the process of imparting training can incur a lot of cost to the company and sometimes can
also be time consuming.
TASK3
P5. Importance of employee relation.
In today's competitive world, workforce relation are one of the biggest asset for every
organization as they put their skills in various divisions in order to execute pre determined vision
or objective in an innovative way. Along with this, it benefit firm to heightened productivity,
gain deeper loyalty, happier work environment and many more that lead IKEA them to obtain
maximisation of profit with an optimum utilisation of resources. Hence, some of the benefits of
employee relation within IKEA business premises that is described below:
Boost morale: An effective relationship help IKEA to generate a positive attitude among
employee and can easily motivate them to put their best effort for an attainment of firm high
level profitability rate.
Less conflict of interest : If employer takes an initiative to analyse each personnel
potentiality and assign them roles and responsibilities based on their capability . By this, IKEA
can control over dispute and they can build a healthy relationship with employees which will
leads them to acquire increased level of profitability (Paauwe and Farndale, 2017).
Moreover, employee relation has great influence on HRM decision making process.
Hence, the stages of HRM decision making procedure are as follows:
Identify goal: It is the first step where IKEA manager make right decision by recognising
problem and seeks fro best opportunity to address it without effecting workforce relationship.
Collect information for weighing opinions: After determining an issue, the next step
which IKEA superior takes is that they takes initiative to gather relevant facts or source so that
they can make best decision and bring high level of satisfaction to subordinates.

Considering consequences: Once collecting the relevant information, then IKEA manage
examine several solutions and give opportunity to grieved manpower to share their opinion
regarding specific issue in order to boost employee morale and value.
Make decision: Under this, IKEA superior choose the best solution among various
alternatives by keeping subordinate increase and demand which help them to provide high level
of satisfaction and generate positive attitude that add value to firm brand image.
Evaluate the decision: Once after implementing decision, IKEA employer evaluate the
same by collecting reviews from its personnel in order to make corrective course of action for
maintaining a healthy relationship between its manpower.
Therefore, with the help of impressive workforce relationship IKEA can acquire
increased level of proficiency and productivity ratio.
P6. Crucial constituents of employment legislations.
It is an act or procedure which is designed with a purpose to create fairness at work, and
can help firm to boost productivity and well being a necessary response to demographic and
social change . Hence, there are few legislation which help IKEA to build a better relationship
among employees and that is explained below:
National Minimum Wages Act, 1998: One of the core function of this legislation is to
render fair and better pay-off to workforce based on their potentiality or capabilities and it also
involves their age, working hour. Thus, it helps IKEA manager to appreciate its personnel
attempt and helps them to make best strategic decision to render them top-grade reward which
generate add value to employees as well as improves IKEA brand image among industry.
Sex Discrimination Act, 1975: It is concerned with providing equal opportunities to all
employees and while implementing strategic decision with a fair and unbiased nature. Along
with this, IKEA superior can follow transparency in communication and can overcome over
direct and indirect discrimination within workplace. Moreover, it assist them to build a safe
working environment for women and can empower motivation among manpower (Sanders and
Yang, 2016).
M4. Important aspects of employee relation management and employment legislation.
Employee relation plays an integral part in IKEA business operation and function which
helps them to expand their sales growth and germinate its capability to adopt profitability.
Moreover, its benefit company to build a harmonious relationship between employees and
employer which contribute huge to economic growth and development. Furthermore,
employment legislation enable IKEA to provide enormous platforms for every employees
without showing partiality which help them to strengthen their proficiency and productivity.
TASK4
P7. Applications of HRM practices in work related context.
There are various types of tools or elements which an organisation implies within their
business operation and function in order to improve overall performance of company. Moreover,
within a company it contain different job roles and designation contains and it has its own
responsibilities which differ each employees different from each other. Furthermore, IKEA
takes an initiative to determine each candidate ability or skill and recruit right personnel in order
to fill vacant job position. Hence, IKEA follows various types of reward system and motivation
for different types of personnel i.e. blue and white collar (Vanhala and Ritala, 2016).
Blue Collar

They are considered as those types of employees whose job requires manual labour as
they work in manufacturing, mining, sanitation, farming, recycling, mechanic etc. Along with
this, in order to attain sustainable profitability, IKEA should provide effective motivation so that
they gain high level of satisfaction. Thus, IKEA manager render special project, compensate well
with extra benefits like fringe benefit as well as provide them suitable feedback in a positive
way. By this, IKEA can improve their productivity and profit margin.
White collar
It is regarded as those who perform professionals, managerial and administrative worker
and they work for salary basis. Thus, IKEA management should develop a healthy working
environment so that manpower feel positive towards business task and perform in an innovative
and creative manner (Saridakis, Lai and Cooper, 2017). Therefore, IKEA manager provide
promotion, transfer, bonus, incentive etc. to its workforce and participate them in all business
activities in order to gain competitive advantage.
M5. Provide a rationale for the application for specific HRM practices.
For acquiring sustainable profitability, HRM practices plays a crucial role as it enable
company to generate healthy and better working relationship among employees and it help them
to make best strategic decision in order to obtain profit maximization with an optimum utilisation
of resources.
D3. Critically evaluate employee relation and application of HRM practices.
It's basic element of IKEA business function to strengthen relationship with personnel
and professional which assist company to retain loyal manpower and help them to control over
turnover rate. Along with this, they can easily acquire high level of satisfaction from personnel
and it improve its potentiality to attain impressive productivity within competitive industry.
Furthermore, implication of various HRMK practices aid IKEA to boost manpower morale and
generate positive perception so that they be more flexible min nature as they always be ready to
adapt innovative ideas that benefit firm by increase its sales growth and profit margin (Shin,
Jeong and Bae, 2018).
CONCLUSION
From the above mentioned report, it has been stated that human resource management is
a vital role within an organisation as it help them to identify each personnel skill or potentiality
and based on that they can delegate the work. Through this there will be less intervention of
conflict of interest and it improve overall performance of company in an effective and efficient
manner. Along with this, various HRM practices and legislation act as a best guidance who
govern each and every activity of firm and aid them to bring equality and justice within their
working environment.

REFERENCE
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