A Report on Employee Relations, Challenges and Solutions at IKEA

This report provides an in-depth analysis of employee relations, using IKEA as a case study. It begins with an introduction emphasizing the significance of effective human resources in organizational growth and productivity. The report explores the value and importance of employee relations, highlighting aspects like employee loyalty, conflict resolution, and achieving strong workplace relations. It then delves into the fundamentals of employment law, including contracts, employee rights, and testing strategies. The analysis extends to the rights and duties of both employers and employees, offering advice on these aspects. Furthermore, the report includes a stakeholder analysis and examines the impact of both positive and negative employee relations, concluding with a summary of key findings and recommendations for improving employee relations within IKEA. The report underscores the critical role of the human resources department in maintaining employee relations and fostering a productive work environment.

EMPLOYEE
RELATIONS

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................4
P 1 Value and Importance of Employees Relations....................................................................4
P 2 Fundamentals of Employment Law.......................................................................................7
LO 2.................................................................................................................................................9
P 3 Rights and Duties of Employers and Employees..................................................................9
P4 Appropriate advice relating to the rights, duties and obligations of the employment..........11
LO 3...............................................................................................................................................13
P5 Conduct and complete a stakeholder analysis......................................................................13
LO 4...............................................................................................................................................16
P6 Impact of both positive and negative....................................................................................16
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
The business organisations will only grow if they have the effective human resources and
that will also help the organisation to increase the productivity of the employees. The employees
are the major aspect of the business organisation as they help to achieve the objectives of the
organisation and also help them to increase the efficiency to compete in the market so that he
organisation can achieve the competitive advantage. Employees also help the organisation to
motivate and provide with better movement so that they can increase the quality of products and
services so that they also help to increase the customers and satisfy the customers.
The employees relation is also very important as it helps the organisation to maintain the
quality of relation with the employees as it the duty of the employer to provide the job
satisfaction to all the employees and for that the employees relation is very essential and it also
help the organisation to increase the information of about the issues in the organisation. higher
employees relations of the organisation will also help the organisation to increase the cost
efficiency of the organisation by increasing the employees loyalty and maintain the potential
employees in the organisation. this will also help the organization to fulfil the need of the
employees so to fulfil their need so that they can increase their efficiency and achieve the
organisational objectives effectively. Human resources department is mainly responsible for
maintaining the employees relation in the organisation and also help the organisation to maintain
the quality of the employees to increase the overall output of the organisation.
In this report there is a brief information about IKEA which is retail company which
provides kitchen furniture, appliances, household accessories and all the ready to assemble
furniture. The company was established in the 1943 in Netherlands and have the stores in over
400 locations and the company is the multinational in nature and is surrounded all over the world
to provide its products and services to customers and increase the satisfaction level of them. The
report will increase the knowledge about the employees’ relation challenges of IKEA and what
are the solutions to it to increase the efficiency of the company to compete in the market.
LO 1
P 1 Value and Importance of Employees Relations
IKEA analysed that employees relation is very essential part of the company as it will
increase the quality of the company and maintain the quality of the products and services. The

employees relation will also help the company to create the equilibrium in the market and
increase the profitability to increase the investment chances in the company. The employees also
have the needs and IKEA have to fulfil the needs so that they can increase their values towards
the company’s objectives. (Reader and et.al., 2017) it will also help the company motivate the
employees and provide them with better opportunity so that the company can increase the
expansion rate and grow more rapidly in other countries and new market.
Employability loyalty
With the increase the employees relations it will also help the employees to get motivated
and increase their values so that they can work in the company and increase their expansion and
also indulged themselves with the new ideas so that the company can increase its productivity.
Employees’ relations will help the company to increase the employees’ loyalty as they will be
more satisfied within jobs and also have a better and healthy work environment to work in which
also help them to think positive and improve the quality of performance of the employees of the
company. (Shields and et.al., 2015)
Conflict Resolving
IKEA evaluated that increasing the employees’ relation of the company also help to
reduce the conflicts in the company as the management have the efficient knowledge to
formulate the effective strategy which will help the managers to manage the employees and
increase the quality of the business. The management of the company also have the ability to
adopt the new innovative methods and ideas which are based on the information from the
employees relations and which can also increase the efficiency of the work environment to
improve the coordination between the employees of the company to do the operations is very
efficient. (Pohler and Schmidt, 2016)
Achieving Strong Relations
There are many effective strategies which can be applied in the company which can
establish the strong relations in the company so that they can also help the company to increase
the efficiency of the cultural values and increase the organisational culture so that they can
achieve the objectives more effectively so that the employees’ can also help to increase the job
satisfaction and increase the performances of the employees. (Massingham and Tam, 2015)
Human resources managers should also have the efficiency to maintain the efficient relations
with their employees so that they can increase the information of organisation.

Motivation of employees
Human resources manager are also very effective in employees relations as they can gain
the information and also know the challenges of the employees which are decreasing the
performance to achieve the objectives. (Lee, Mazzei and Kim, 2018). The managers of IKEA
also have analysed that the employee’s relations will help the employees’ tom get motivated by
determining the needs of the employees so that they can increase the efficiency of them and
improve the quality of the products and services.
Setting of Objectives
Relations of the employees also helped IKEA to increase the connection of the
employees cultural beliefs and values with the ideology and the vision of the company. As the
company is very large company which deals in the quality materials(Supanti, Butcher and
Fredline, 2015). The effectiveness of the products is getting inefficient with the increase in the
competition in the market and new product innovation by the competitors it is vey important for
the company to maintain the employees relations to increase the innovative ideas which can
increase the efficiency of the products and services to attract the customers and attract them to
the company to increase the satisfaction level of them.
Delegation
Employees relations also help the company to increase the employees to develop the
respect for one another so that it can also increase the delegation of work and powers as it will
make them more accepting and less disputing to the decisions of the managers and the superiors.
Employees relations in the company also help to accept the employees to evaluate their own
mistakes and errors so that they cannot blame it on anyone else. (Landry and et.al., 2016)
Equality
IKEA have embraced that the employees need to be treated equal and also have to be
judged on their performance not on their personality and their looks. Employee’s relations also
help the company to improve the equality injustice in the company. The company also increase
the employees legal safety by designing some efficient standards which can be evaluated the
employees on the same criteria and also help them to increase the efficiency of the employee and
make them more effective in their jobs. The formulation of the policies and laws of the company
also help the employees relations more effectively and also increase the quality of the products
and services. (Miller, 2018)

Communication
IKEA also analysed that employees’ relations management also helps company to increase the
communication efficiency in the company as all the employees will be more effective in
understanding the vision of the company and make themselves more potential to envy the tasks
of the departments to achieve the objectives of the company as a whole. As communication is
very essential aspect of the company and it also help them to provide the efficiency to provide
the message so that it can be understandable to the public and also made the efficiency to
increase the objectives of the company. (Kang and Sung, 2017)
P 2 Fundamentals of Employment Law
The employment law id the legal statement which is implemented in the company in
accordance with government regulations so that the company can increase its ethical code of
conduct in the market and also help the employees to increase the job satisfaction. This also
helps the employees to make them secure in their jobs so that they can increase the efficiency
and also become loyal to the company. (Timming, 2017) IKEA is using the employment law in
which all the legal statement are used to maintain the employees relations with the company and
the company have the liability to be accountable with many factors to make the employees
efficient and the employees also have the e]liability to provide the efficiency work effectively.
This also helped the employees to be secured and have an indiscriminate environment so that
they can make and effectives environment, it also helped the company to provide the healthy and
safety to their employees so that they can increase the employees relations and maintain the
quality of the work. The employment law also helped IKEA to make the effective strategies
which made the company decreased in the cost so that they can increase the efficiency of the
company and increase the economic activity of the company. (Guest, 2017) This laws also
helped the company to decrease the productivity of the company as all the employees
management is formulated according to the laws of the government norms and which will help to
decrease the disputes and create a healthy working environment.
Contracts of Employees
The contract of employees is the legal agreement made between IKEA and the employees
of the company which states many clauses to safeguard their interests and also agree to work in
the organisation with one motive and increase the efficiency of the company. The contract of

employees are made at the initial stage when the employees is hired in the company and it is
done according to the government regulations and all the important details are presented in front
of the employees to avoid any fraud and also keep the company safe from any cases from the
employees. There are implied, expressed contracts which will help the company to maintain the
ethical code of conduct according to the nature of the agreement and consideration made by the
company and the employee. (Trivisonno and Barling, 2016)
Employment rights
IKEA also have to include the rights of the employees in the policies of the company so
that the employees are secured in their values and also help them to adjust in the company’s
cultures effectively. This also help the company make more improved decisions for the
employees so that they can decrease the cost of operations. The employment act, 1996 is
followed by IKEA as it made compulsory for the companies to provide equality to the employees
and also protect their human rights with some policies. The employees also increase the values
and become more effective in the company as the company provided them with the benefits
which provided them proper respect and dignity as they are also not exploited like in the
traditional approaches of management in the organisations. (Giebels and et.al., 2016)
Testing
IKEA also have adopted the testing strategies in order to analyse the factors which are
similar te the norms of the government and also help the company to achieve the objectives ot
not. As the test help the company to know the control of company on their employees and what
are the factors which influence the test. (Wisse and et.al., 2018) The test indicates coordination
test which enables the company to know the efficiency of the employees so that they can
determine the effective strategies which can be used in the company to make them more
effective in doing the operations and creating the healthy environment.
Worker’s Compensation
IKEA is obliged to pay the workers compensation to the workers who are doing the
operation sin the company and also get injured while performing any task in the company so the
company is obliged to pay the compensation to the workers in the economic consideration so that
they can also increase their value and morale towards the company and it also creates the trust
toward the company so that they can also increase the efficiency in the company and achieve the
objectives of the company. (Durand and Stewart, 2016)

Family and medical leaves
The company also have to think about the family of the employees as the employees are
giving their important time and they as also need to fulfil their personal need so that they can et
motivated in the company and IKEA have also adopted this governmental norm so that all the
employees can become loyal and also increase the efficiency of the company. The medical
leaves is also offered by the company as the employees should get rest so that they can return
back to the work in with the same energy and make them more effective. This also help the
employees provide the paid leaves so that the employees can take their time with their families
and they will receives the same salary as promised by the company. (Conway and et.al., 2016)
Minimum Wages
The company also have adopted the minimum wage policies to the employees in which
they have to pay the employees the minimum amount of remuneration as promised to the
employees to be in the ethical code of conduct and also increase the employees relation in the
company. The agreement is been made with the help of the employees and all of them have to be
signed and agreed by the employees which will provide them with this benefits and also help
them to increase their organisational values and ,morale to be loyal to the company as this will
decrease the cost of the company as the company will not have to spend more on the new
employees to train the and increase their skills and knowledge.
Taxation
As the taxations are the revenue of the government it is the duty of the company to pay
their all types of taxes and the company have to show the transparency in their books of accounts
and if the company show any forged details ion the books they may be kept liable for the
penalties and this will also decrease the employees and company relationship this will also
decrease the goodwill of the company and not many customers will be attracted to the company
to buy their products as the company will loose its efficiency.

LO 2
P 3 Rights and Duties of Employers and Employees
IKEA is having many rights and responsibilities which will help the company to increase
its efficiency in the market and the employees of the company also the rights and responsibilities
in the company to achieve the objectives of the company so that they can make the company
more effective sand also increase the quality of the company. The rights ad duties also decrease
the conflicts between the company and the employees so that they can increase the performance
and also develop and innovative ideology of the company which can compete in the market
effectively and achieve the competitive advantage in the market.
Fair Treatment
It is the duty of IKEA to provide fair and equal treatment to all its employees as it helps
the company to make an effective approach tom its employees to make them trust the company
and understand the values of the company. The duty of the company is to provide better equality
rights in which the proper performance evaluation standards must be set so that the company to
can be liable to every employee on what grounds they have done any activity. The rights of the
employees in the company is that they should be treated equally as many company have the
tendency to do politics and also select the favourite employees for the important tests which
creates inequality amongst employees. So IKEA have established and Human resource
committee which will address to all the grievance of the employees and ensure that ll the
disputes are solved at the moment to provide ease and justification to them and also help them to
provide them with create trust with the company.
Fair Remuneration
The company also have to duty and responsibility to provide the faire wages and salaries
to their employees in the company so that they can increase the level of energy in doing their
task as all the employees have their personal need and that can only be fulfilled by providing
them with the fair economic salaries which will help them to satisfy them and also make them
more loyal to them company. (Brekashvili and et.al., 2018) The employees have the rights to
receive the salary according to the amount of work they have done and which should be
standardised according to the government standards so that the employees can also be evaluated
and paid accounting to their overtime and hourly basis.
Safety

IKEA have the duty to help the employees provide the safety and security in the company
premises which means health security and according to the government norms and regulations all
the safety equipments have to be installed like fire safety, climate safety and all the proper
insurance claims which would be provide to the employees in order to safeguard the family of
the employees so that they can also help the company to provide with the better quality of
services and also provide them efficient training to increase the skills and knowledge(Alegre,
Mas-Machuca and Berbegal-Mirabent, 2016). The employees also have the rights to get the
insurance form the company so that they can receive the health benefits from the company and
make them pay for their health bill due to health issues which the employees have faced in the
work and any accident in the work will also the right of the employees to get the safety as it is
also covered in the human right and the company is liable to ensure the safety of the employees
to increase the efficiency of the company.
P4 Appropriate advice relating to the rights, duties and obligations of the employment.
The employees must have the rights, duties and obligations towards a company because
only then the trust with all the employees can be made so that the company and the employee can
benefit from it. First comes the contract which the companies make sure that the employees of
the company are going to be trustworthy to the company and they can be legally sued if they do
anything wrong (Federici, Boon and Den Hartog, 2019). The contract is signed by the employees
so that if the company finds out anything the employees have lied about later then they can ask
them to leave the company which is psychological contract. IKEA has a contract as well for their
employees so that the conduct of the employees in the company is appropriate and the standards
of the company can be maintained. It is very important to IKEA to maintain a healthy
environment in the company so that the working of the company can take place better. The
company must make sure that they are providing the customers with the best of facilities and the
best of environment to work in because with a negative environment the employees are not ready
to work properly. A negative relationship of the employees in the company can be very harmful
therefore the employees make sure that they are maintaining the employees in the company well
(Islam and Tariq, 2018).
The employees are given all the rights in the company because there is unemployment in
the country therefore IKEA is not paying as must but paying the right amount to the employees

so that the company does not have a large turnover of the employees in the company. It is very
important for IKEA to make sure that the relationship all the employees are sharing is healthy so
that the company does not have much problem (Hannis and et.al., 2018). The human resource
department of the company is very active and is putting their personal best for the company so
that the entire company can function better and efficiently. Though, the company is very fair to
all the employees working within the company because they want to give all the employees a fair
chance to show their talent and work in the company. The company does not give any chances to
the employees because of their race, color, gender, religion or culture. The company makes sure
that all the cultures and religions are respected in the company so that there is a balance in the
working. The company is doing their personal best to make sure that the company is providing
everything they need for the efficiency in the working and functioning of the company smoother
(Hur, Moon and Jung, 2015).
The working of the company is so brilliant because the company makes sure that all the
employees in the company are working according to what they are perfect in so that the working
of the company can take place better. The company has a competitive advantage in the market
because they are giving everything they need to the employees and what they are skilled at they
are given that work to do so that the functioning of the company can take place better. The
employees have a say in the company when there is a decision making in the company which is
making the employees even more comfortable in the company and that is a very important factor
doe the company and the company is being able to respect that factor because the human
resource cannot manage to speak for the employees all the time and there is a need for a direct
contact with the employees of the management of the company and this is the basic right of the
employees in IKEA. There are a lot of changes in the market and the company has to make sure
that the employees are accepting those changes and that is only possible when the employees are
taken into confidence.
The paying employees are also according to the work the employees are doing in the
company and not according to favorites in the company. IKEA takes employees who are
experienced and have a skill of working in the company and they will be able to meet the
standards of the company and the human resource of the company has been trained in such a
manner (Gawke, Gorgievski and Bakker, 2018). It is very important for the company to have
skilled employees because they have a strong portfolio in the market and that is giving the

company a great advantage therefore the company is trying not to make more errors in the
company because that is the uniqueness of the company and therefore the customers are loyal to
the company. IKEA follows all the hiring and recruitment processes so that they take the right
people because they have to maintain the decorum of the company and the standards and quality
of the products of the company has to match. The employees are obliged to follow the rules and
regulations of the company so that the company can function better and the employees can get a
better recommendation from the company when they want to leave therefore the employees and
the company has to be at their best forms so that both the aspects meet the needs and demands of
the customers. It is important for the company and the employees to give their best so that that
the company can profit from it because if the functioning of the company will be good then only
the company will be able to meet the needs of the customers and then they will be able to make a
profit in the market. There has to be positivity in the company for it to functions and it can be
only done when the company is providing the employees and the employees are providing the
employees the rights, duties and obligations for the functioning of IKEA better (KARANJA and
et.al., 2016).
LO 3
P5 Conduct and complete a stakeholder analysis.
It is very important to understand the stakeholders of the company because they are doing
to have a major influence on the company and the company will not be able to function if they
are not present. Therefore there is a need for transparency in the company’s management and the
stakeholders of the company. IKEA has understood the needs of the customers and the
stakeholders together because they have been in the market from a long time now and they have
a lot of experience in the market than any other company (Hassan and Hatmaker, 2019). There is
a need of analysis of the stakeholders of the company so that the decisions which are taken by
the management of the company can be approved by all so that the functioning of the company
can take place better and that is a very important factor because all the companies in the market
have one goals which is to make profit in the market and it is only when there is good
functioning of the company will the company be able to make a profit. There are a lot of
decisions which are supposed to be taken by the owners or the management of the company so
that the functioning can take place better after analyzing the customers of the company. The