IKEA Report: Human Resource Management

Human Resource
Management

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
1. What are the current problems and HRM trends that the organisation face and in which
manner this impact on them? .....................................................................................................4
2. In which manner might HRM team think about long-term workforce planning and also
what practices and theories will be considered?.........................................................................5
3. What considerations can the HRM team take to ensure about ethical practices that are used
in recruitment and selection process?.........................................................................................6
4. What recommendations can HRM take to resolve the problems for the identified problems.
Give three realistic and practical solutions which can be implemented.....................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource management is basically practice of hiring, recruiting, managing and
deploying an organisation's employees. HRM is management of employees with an emphasis on
those employees which are assets for the business. Human resource are important for the
company because they ensure about the business which get most out of its employees(Bal and
De Lange., 2015). In the present report, IKEA is taken into consideration. IKEA is a company
which is Swedish-origin Dutch organisation. It is headquartered in multinational conglomerate
which sells and design ready to made furniture, home accessories and kitchen appliances. The
present report will cover discussion about current HRM problems and trends that an organisation
face and also about the HRM team that think about long term work force planning. In addition to
this, the report will cover analysis about ethical practices which are used in recruitment and
selection process. Moreover, the report also consist of recommendations that HRM take to
resolve the problems.
MAIN BODY
1. What are the current problems and HRM trends that the organisation face and in which
manner this impact on them?
The main problems faced by IKEA organisation during their growth stage is related to
spreading awareness in new countries and being able to meet target demand which ensures that
company did not incur losses. It is also challenging for IKEA organisation to create new
customers and there are competitors who sell same product at lower price(Branicki and et.al.,
2019). It is also difficult for the company to get new employees who are willing to comply with
rules of company. It is also challenging for company to appoint new employees who can
understand the organisation into positive manner.
In terms of current HRM trends adopted by IKEA organisation are in terms of training
and development, selection and compensation. For giving training to their employees, they
discuss about development and outlines the career path as well. Web-based training activities
also conducted with respect to all aspects of IKEA operations. In terms of selection parameter,
the major emphasis is given on value-fit as their selection criteria.

With respect to compensation parameter, the organisation has developed global and
mandatory guidelines for benefits and compensation. For purpose of internal promotion, one
year development adventure programme has been developed which any employee can apply for
it in their initial phase of their career(Das and Kodwani., 2018). For exploring themselves they
can take part into this programme and visit two countries for six months. The organisation also
provides diversity into the workplace and around forty percent co-workers are women with great
mix of nationalities. IKEA organisation has retail and purchasing operations in different
countries which are led by country managers from different nationalities. In terms of grievance
procedure, IKEA used a survey which is named as VOICE for monitoring that in which manner
co-workers view different aspects of their employment.
Current trends and problems that an organisation face somewhere impact into positive
and negative parameters. These current trends which are adopted by IKEA organisation lead
towards positive development of employees and organisation as well. Through these trends
performance of employees get increased and potential level also increases into positive manner.
These trends also support employees in terms of viewing aspects of development from different
perspective. The problems faced by IKEA organisation has to work into positive manner and
needs to find out solution for it otherwise it is difficult for organisation to stand strongly into the
market. They are lacking in terms of digital technology for purpose of spreading awareness so
they have to adopt new measures in terms of working procedure. In this way, problems and
current trends impacted the IKEA organisation.
2. In which manner might HRM team think about long-term workforce planning and also what
practices and theories will be considered?
Workforce planning is that form of strategic HR which is a practice that enables HR
professionals to help the company in terms of achieving long-term goals. HRM team can keep
record of potential candidates on record, generate forecasts and also determine the cost impact as
well with support of workforce planning(Haak-Saheem and et.al., 2017). HRM team also
analyse, forecast and plan the workforce supply and demand into appropriate manner. The team
can also assess the gaps and determine talent management intervention with support of long-term
workforce planning.