Importance of Employee Relations in HRM Decision-Making

Human Resource
Management

Table of Contents
Table of Contents.............................................................................................................................1
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1: Explain the purpose and functions of HRM..........................................................................3
P2: Strength and weakness of different selection approaches.....................................................4
TASK 2............................................................................................................................................6
Explain the benefits of different HRM Practices within an organization for both employer and
employee......................................................................................................................................6
Effectiveness of different HRM practices in terms of raising organizational profit and
productivity..................................................................................................................................7
TASK 3............................................................................................................................................8
Analyse the importance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................8
Identify the key elements of employment legislation and the impact it has upon HRM
decision-making...........................................................................................................................9
TASK 4..........................................................................................................................................10
Illustrate the application of HRM practices in a work related contexts....................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human Resource Management can be explained as the process of recruiting, selecting,
inducting employees and giving all of the necessary training for attaining the goals of a
company. It is one of the crucial department which helps to decide whether company will attain
their goals or not in specific time period. The chosen company for this report is IKEA which is
one of the European multinational company. It designs one of the best furniture, kitchen and
home appliances. It was founded in the year 1943.
Some of the important topics which will be covered within the file are related with the
functions and purpose of HRM. Relationship of employees is to be discussed in the file. Key
legislations will help to determine about the impact on decision taking ability on HR. In addition,
different applications to HRM will be explained in this file.
PART 1
P1: Explain the purpose and functions of HRM
Human resources is one of the most crucial department of any business organisation which helps
to perform business activity in best possible manner (Schmoldt and et. al., 2013). It is related
with the process of recruitment of best candidate who can give their best for the purpose of
attaining the goals of an organisation. HRM is necessary in every business organisation because
it helps to manage and perform the business activity by preparing the appropriate strategies. In
context of IKEA, HRM department is one of the most important department as perform the
business activity in different where skilful employees are most important. Workforce recruitment
means hiring the professional and qualified applicants in their organization that helps to
maximise profits through the distribution of the goods. To recruit the workers, it includes various
functions like:
 Planning: It is one of the most important function of a HRM where they must do proper
planning that what are the activities they must conduct within the company so that goals
and target can be accomplished easily. In context of IKEA, their HRM team will have to
hire the right candidate for the company to meet out the targets on time (Cowling and
Mailer, 2013).
 Maintaining good working environment: It is crucial for business organisation that
they must hire the suitable candidate for the company but after hiring them it becomes

important for the company like IKEA to maintain the healthy environment. Suitable
environment will help them to work according and even chances of attaining the goals
will be high.
 Managing Employee Relationship: It becomes necessary for the HRM department of
IKEA to manage the employee relationship which directly impacts on achieving the
goals. Here, department is required to conduct various activities which can help
employees to know each other at personal and professional level so that they can work
freely within the premises of a company.
 Training and Development: It is one of the most important thing for the department of
HRM that after hiring the candidate, they should provide training to them so that they can
perform freely as per the desire of a company (Haslberger, Brewster and Hippler, 2013).
Purpose of HRM
 HRM's primary purpose is to develop strategies and laws in order to effectively operate a
business.
 • IKEA seeks to hire qualified and experienced workers so that companies profit and
productivity can be improved.
 To assign the staff according to their knowledge and skills in the role of employee which
allows to fulfil business goals.
 To fulfil the vacant place in the company for attaining the goals of an organisation.
P2: Strength and weakness of different selection approaches
Recruitment is the vital part of the HRM process that help to attract qualified individuals
to suitably approaches the company and become part of the vacant position. This process helps
the manager of IKEA company to get the wide range of options amongst which the vacant
position can be filled effectively (Meyers, Van Woerkom and Dries, 2013). There are two
sources of recruitment which are explained below:
Internal recruitment: As the name suggest the manager fill the vacant position by either
transferring or promoting the existing workforce to hold the vacant post. This is effective method
that generate zeal amongst the staff of IKEA organisation.
Advantage Disadvantage