Human Resource Management at IKEA: An In-Depth Analysis of Practices

This report provides a detailed analysis of Human Resource Management (HRM) practices within IKEA. It begins by outlining the purpose, roles, and responsibilities of HR functions, emphasizing their importance in achieving organizational goals through effective workforce management. The report then evaluates various approaches to workforce planning, recruitment (internal and external), selection, training, and development, and performance management, highlighting the strengths and weaknesses of each approach within the context of IKEA's operations. Furthermore, it examines different HRM practices, comparing IKEA's methods with those of American Wooden Mark, and discusses the effectiveness of approaches to employee relations, employee engagement, and flexible working practices. The report also addresses the significance of employment legislation and how employee relations inform decision-making processes. Overall, the report offers insights into IKEA's HRM strategies and their impact on achieving business objectives.

Human resource management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
1.purpose of HR function and roles and responsibility of HR functions....................................1
2. Evaluation of different approaches ........................................................................................2
3.different methods used in HRM practices................................................................................4
4.Approaches of employee relation, employee engagement and flexible working practices and
their effectiveness........................................................................................................................5
5. Employment legislation with in which organisation must work.............................................6
6. How employee relation and employee legislation inform decision making...........................7
7. Person specification and job description ................................................................................8
8. Evaluation on using technology such as online resources, digital platforms and social media
in improving recruitment and selection process........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Human resource refers to a system which manage the people at work place. It helps
organisation in accomplishing organisational goal efficiently through effective management of
work force in an industrial establishment. It includes various practices such as recruitment,
selection, performance management and reward system. The present study is based on the IKEA
company in terms of exploring their tools and techniques used in HRM to increase the employee
contributions towards achieving business objective(Wright, 2018). This report will present the
purpose of human resource functions and roles and responsibility of HR function in the
organisations. Study defines various approaches of work force planning, selection, recruitment
and performance management. It also explains the employment legislation on which IKEA has to
must work. This study evaluates that how employee relation and employment legislation helps in
informing the decision making process and achieving business objective.
Task 1
1.purpose of HR function and roles and responsibility of HR functions
Purpose of HR Function
The main purpose of HR functions is to accomplishing specific as well as organisational
goals through better utilisation of available resources in the IKEA. To acquiring talented
employee in the IKEA, human resource management play an important role through hiring,
improving and preserve efficient capable employee for implementing the activity which is
essential to achieve objective of IKEA. To maintain the healthy working environment in the
organisation, It performs various function such as recruitment, selection, performance
management and training & development(Berman and et.al., 2019).
Roles and responsibility of HR functions
It includes the job analysis and job redesign, it is the first function of human resource
management which plays an important role in describing the duties and responsibilities of job. It
defines the standard of minimum level skills and knowledge required for performing job in the
IKEA.
The recruitment and selection function is the important factor of the organisation in terms
of providing skilled and capable employees to the organisation. This function is responsible for
attracting talented applicants and also screening and selecting potential candidates with required
level of skill and knowledge to accomplishing the organisational goals(Bratton and Gold, 2017 ).
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Training and development function is responsible for providing training to new
employees for performing job effectively. It also develops the employees abilities by improving
current and future performance of an employee. Training and development is essential for new
employee as well as existing employee for performing job efficiently(Brewster and et.al., 2016).
Significance of HR in acquiring talent to meet business objective
Human resource management play an important role in acquiring talent in employees
through providing various training and development sessions for performing job effectively. If
employees are sufficient capable and have the skill to perform job they can perform efficiently in
the attainment of organisational goals(Coffie and Yeboah, 2018).
Human resource management also play a significant role in achieving business objective
of IKEA by hiring competent candidates through recruitment and selection process. This
function also identify the specialisation of candidate in terms of working and for gaining
effective outcome from employee, it provides the work according to their skill and knowledge.
Overall it helps in the attainment of organisational goals(DeCenzo, Robbins and Verhulst, 2016).
2. Evaluation of different approaches
Workforce planning
It is the important process of every successful organisation because it ensures the current
as well as future requirement of employees in the accomplishment of desired business objective
effectively. Workforce, competency, workload are several approaches of workforce planning.
Competency workforce planning method refers to hiring candidates according to required level
of skill needed to vacant position. It provides various advantages to IKEA which involves
retaining employees, talent identification, and supporting budget(Ehrhart, 2015).
Recruitment
Recruitment is the process of attracting, short-listing and selecting talented employee for
interview in the organisation. It includes various approaches such internal recruitment and
external recruitment.
Internal recruitment is the process in which candidate are selected for required position
from within company or from existing employees through promotion and transfer techniques. It
is the cheapest and time saving method of recruiting employee(Guest, 2017).
Strength
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1. Internal recruitment helps IKEA to reduce the cost as it helps to work in the cost
effective manner. As it eliminate the cost induction and training and helps to saves the
time of the managers.
2. The second strength is that it helps recruit those whose performance is already known and
also it increases competition in the IKEA hence increases the productivity in the
company.
Weakness
1. One of the main weakness is that It hinders new and fresh talent in IKEA. As by the
internal recruitment it recruits employees internally that is within the organisation so it
does not allow other candidate to enter in the organisation.
2. The second weakness is that it hampers the growth the IKEA as in this recruitment
people become more lethargic and does not show willingness towards the work and
goals.
External recruitment approach refers to hiring candidates from out of the IKEA. It has
advantage in terms of getting high skilled employee from external world of organisation but it is
also costly as well as time consuming method.
Strength
1. One of the major strength is that it allow fresh talent in the organisation as it helps to
create positive environment.
2. The second strength is that it create job for the hob seeker.
Weakness
1. External recruitment is time consuming and involve huge cost.
2. The second weakness is that if the candidate performance is not good and if he leave the
organisation then it causes huge lose for IKEA.
Selection : it is the process of selecting appropriate candidate for achieving the business
objective of IKEA. Selection process includes approaches such as interview and employment test
and aptitude test of shortlisted candidates.
Interview approach of selection approach is playing an important role in identifying
knowledge skill and personal information of job candidates. It has disadvantage in terms of
getting wrong information about employee which provided by job candidate(Nankervis and et.al
2016).
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Employment test approach of selection process evaluates the skill and capability of
candidates in terms of working towards the attainment of business objective of IKEA. It is also
time consuming and costly method of selection process.
Training and development: training and development is an important function of HRM which
provides the training to needed employees for performing job effectively and also develop the
abilities of employee through improving current and future performance of employee.
On the job training approach of training and development refers to the training where
employees placed on specific position for learning the job. It encourages employees interest and
motivate to learn(Stone and Deadrick, 2015).
Off the job training approach encourage employee to learn outside knowledge of
organisation. It includes the case study method in which employees provided with the case or
situation to understand and solve the situation.
IKEA follows on the job training method in order to train its staff members. This
develops working efficiency of employees and they perform their work effectively.
Performance management & reward system
Performance management function of HRM determine the performance level of
employees through setting performance criteria for each individual employees. 360 degree,
result, feedback etc. are various approaches of measuring performance. IKEA follows result
approach. It encourages employees interest towards achievement of organisational goals by
providing performance based reward system. This process maintains healthy competitive
environment in the IKEA for accomplishing organisational objective effectively(Stone and et.al.,
2015).
3.different methods used in HRM practices
HRM practices IKEA American wooden mark
Work force planning It follows the competency
work force planning approach
in which employee hired on
the basis of required level
skills of vacant position.
It follows the workload
planning approach in which
employee hired according to
available work load in the
company.
Recruitment IKEA follows the external It follows the internal
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recruitment approach for
getting high skilled employee
through social media
advertisements and
referrals(Wilton, 2016).
recruitment process for
fulfilling vacant position from
existing employees through
promotion and transfers.
Selection The selection process of IKEA
follow the interview approach
for hiring employees. It
includes face to face interview
for observing employees
personality and capability of
working.
American wooden mark follow
the employment test approach
for selecting the appropriate
employees. It can be done
through examining job
applicant through aptitude
test(Wright, 2018).
Training and development IKEA provides training and
development programme
through on the job training
approach. It can be done
through role playing method in
which candidate provided with
specific role and asked to
perform the role effectively.
American wooden mark
provides its employees to
training and development
program through off the job
training approach. It is done
through case study method in
which employee provided with
a case or situation or asked to
solve the situation.
Performance management IKEA follow the 360 degree
method of performance
management which is
determines by getting
feedbacks from superior,
subordinates and co-
worker(Berman and et.al.,
2019).
It follows the trait approach of
management in which
employee performance
determines on the basis of
multiple traits such as
personality, integrity, honesty
and dependability(Bratton and
Gold, 2017 ).
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4.Approaches of employee relation, employee engagement and flexible working practices and
their effectiveness
Human relation approach of employee relation
Every industrial establishment consist of human beings and each every human beings
wants freedom of thoughts and expressions. When workers are treated by employer as an
inanimate object and resist their interest and desires, it results in creating conflict among them.
This approach defines the behaviour of workers at work and utilising such behaviour towards the
attainment of organisational goals. Industrial conflicts can be minimised through applying human
relation approach and mutual understanding among worker and employer(Coffie and Yeboah,
2018).
Effectiveness of employee relation approach
This approach help in maintaining employment relationship between employee and
management which results in accomplishing companies goal. Employee relation has direct
impact on the IKEA'S productivity because when relationship between employee and
management hampered it will rise dispute which results in decreasing performance of employee
towards the productivity of company. Industrial dispute can be minimised with the help of
employee relation approach which shows better mutual understanding among employee and
management(Brewster, C., 2017).
Reward scheme approach of employee engagement
Reward scheme approach is an important part of an every successful organisation. It
plays an important role in overall employee engagement program of IKEA. This approach design
a structure to give rewards to those employees who perform better in the attainment of
organisational objective. It will encourage employees to give their best efforts towards the
companies goals. It also increases the satisfaction level of employees(Ehrhart, 2015).
Effectiveness of reward scheme approach
Reward scheme approach plays an important role in encouraging employee interest to
give the best efforts towards achieving IKEA companies goal through providing performance
based reward to its employees. It involves, giving stock ownership and profit sharing to its
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employees. It increases the motivational level of employees in terms of producing high
productivity which ultimately results in high productivity of IKEA(Nankervis and et.al 2016 ).
Atkinson model approach of flexible working practices
According to Atkinson model approach of flexible working practices, overall employee
of the IKEA'S divided into two main groups such as core group and peripheral group. The core
group includes full-time primary worker and key peoples who are attached to functionality of the
organisation. Due to high level of knowledge and skill it can functionally flexible but difficult to
replace. The periphery group consist of secondary worker who have less skilled knowledge and
experience and are easily available in the market. It includes various flexibilities such as
functional, numerical, financial and distancing strategies(Stone and Deadrick, 2015).
Effectiveness of Atkinson model approach
Atkinson model provides time to time employees with required level of skilled who may
work long time and work on the low wage rate which helps in increasing competition among the
different companies in the external market place. With the help of proactive approach it provides
the area in which IKEA company can demonstrate its self as streamlined. It includes the financial
flexibility in which employer gains flexibility through providing reward and pay structure to
employees, it helps in increasing the interest of employees towards achieving IKEA companies
objective(Stone and et.al., 2015).
Approaches Effective Ineffective
Human relation
approach of
employee relation
 It help in maintaining
employment relationship
between employee and
management which results
in accomplishing
companies goal.
 Employee relation has
direct impact on the
IKEA'S productivity and
profitability because when
 It only focus on human
theory as it ignore
productivity and
profitability of
workforce.
 It has more theoretical
concept rather than
practical concept.
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relationship between
employee and management
hampered it will rise
dispute which results in
decreasing performance of
employee towards the
productivity and
profitability of company.
Reward scheme
approach of
employee
engagement
 It is the most effective
approach as if rewarding
employees and motivating
them for their work it will
help the organisation in
increasing the profit and
productivity in the IKEA.
 This approach design a
structure to give rewards to
those employees who
perform better in the
attainment of organisational
objective.
 This approach is
ineffective as the
employees who want to
earn more compensation
can hurt the company as
whole.
Atkinson model
approach of flexible
working practices
 Atkinson model provides
time to time employees with
required level of skilled who
may work long time and work
on the low wage rate which
helps in increasing
competition among the
different companies in the
 This model carries a
degree of risk due to
proactive nature. And also
it may drop the
productivity of the
organisation.
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external market place
5. Employment legislation with in which organisation must work
Health and safety Act 1974
Health and safety act provides the provision for protecting workers from health and
safety issues and also provide welfare in the industrial establishment. The main objective of this
act to control the use of highly flammable and preventing the workers from unlawful acquisition.
According to this act it is the duty of employer to provide information and instruction about
danger zones or machines(Wilton, 2016).
IKEA has to must work on this legislation in their company because as it is a manufacturer of
furniture and kitchen appliances there are huge use of machinery and so new workers need to
provide the information about the using of machinery for protecting them from accidents. It also
provides the various facilities to its worker for working efficiently such water, temperature
maintaining and ventilation facilities.
Equal pay Act 1963
Equal pay act ensures the equal pay for equal work among the employees in the
organisation. This act prevents the discrimination in terms of payment of wage rate which is
based on the individual's gender but whereas man and women work with same skill and
knowledge (Ehrhart, 2015).
IKEA has must work on the equal pay act because it reduces the conflicts in the organisation
which occurs due to different payment of employees which works same. It encourages interest
of women employees towards the accomplishment of organisational goal. It also motivates to
women employees for give their best efforts in IKEA for increasing productivity as well as
profitability.
Strategies used to maintain employee and employer relations
There are basically three types of strategies which help to maintain employee and employer
relationship -
Involve the team members – the first strategy is that it help to involve the team member
as in all the things. As it encourage them to share their innovative ideas and creative skills by
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taking part in the decision making process . And by this there is clear structure of roles and
responsibility in the organisation. On the other hand it has critically evaluated that if the
organisation involve large number of people then it will create more confusion and ambiguity.
Encourage individual to share work with each other – this is most effective strategy as with this
it will help to improve the communication skills of the people and also by sharing work people
can feel relax with less burden. On the other hand it will increases the confusion in the
organisation and also increases the conflict between the employees.
Encourage effective communication - the third strategy is that it help to improve the
communication between the employee and employer relationship. As by the result it will help to
reduce the misunderstanding and conflict.
6. How employee relation and employee legislation inform decision making
Employee relation play an important role in achieving organisational goal. Good
employee relation are required for high productivity and employee satisfaction. Healthy and safe
work environment leads the strong relationship between employee and management which helps
in better decision making towards the employees work. Better employee relation encourage
employee to give their best efforts towards the attainment of organisational goals(Wright, 2018).
Involvement in decision making provides opportunity to give their suggestions or share
their knowledge with others which improve the employee relationship and results in meeting
business objective of IKEA.
Employee legislation like health and safety act protect the worker from health and safety
issues. This act informs the employer to take the decision about providing safety training or
instructions about danger zones and causes of accidents to worker for decreasing the number of
accidents in the industrial establishment. This procedure increases the motivational level of
employee which results in effective accomplishment of IKEA companies goal(Bratton and Gold,
2017).
Equal pay act 1963, it considered the payment of wage in terms of equality such as equal
pay for equal work. This act informs the management to take the decision about the workers
wage, means to paid the wage according to the work of the employee which increase the
satisfaction level of employees. Satisfied employee give their best efforts in the achievement of
organisational goal (DeCenzo, Robbins and Verhulst, 2016).
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