Human Resource Management at IKEA: A Comprehensive Report

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at IKEA. It begins by contrasting Storey's definitions of HRM, personnel management, and industrial relations, highlighting the differences between IKEA and Matalan's approaches. The report then explores the implications of developing a strategic HRM approach for both line managers and employees at IKEA, focusing on motivation and commitment. It delves into the flexibility model adopted by IKEA, examining the types of flexibility implemented and the impact of labor market changes on flexible working practices. The report further discusses the practical implications of equal opportunities legislation and the approaches used to manage equal opportunities and diversity within IKEA. Finally, it examines the company's approaches to managing employee welfare, including the schemes and facilities provided to staff both inside and outside the organizational premises, such as safety measures, food services, and training programs. The report references key academic sources to support its findings.

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Managing Human Resources at IKEA

Table of Contents
Task 1:........................................................................................................................................0
1.2. Differences between Storey’s definitions of HRM, personnel and IR practices of IKEA
and Matalan............................................................................................................................0
1.3. Implications for line managers and employees for developing a strategic approach at
IKEA......................................................................................................................................0
Task 2:........................................................................................................................................1
2.1. Flexibility model at IKEA...............................................................................................1
2.2. Types of flexibility developed within IKEA...................................................................1
2.4. Impacts of changes in labour market having flexible working practices........................2
Task 3:........................................................................................................................................2
3.2. Practical implications of equal opportunities legislations at IKEA................................2
3.3. Approaches to manage equal opportunities and diversity at IKEA................................2
Task 4:........................................................................................................................................2
4.2. Approaches of managing employee welfare...................................................................2
References..................................................................................................................................4
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Task 1:
1.2. Differences between Storey’s definitions of HRM, personnel and IR practices of
IKEA and Matalan.
John Storey has defined HRM as one of the major practices or formula generally used by the
management of the companies in order to motivate the employees and ensure the efficacy of
the business (Storey, 2014). As per his definition, HRM model is a strategic approach that is
very much important for the management to undertake or implement in order to achieve the
desired objectives of the organizations and attain competitive advantage (Mayo, 2016). In this
case, through the help of this model, the management of IKEA can employ skilled and
efficient employees and train them effectively to derive competitive outcomes. HRM
promotes transformational leadership style that focuses upon satisfying and motivating the
employees at work and build up strong relationship between the employees and the
management.
On the flip side of the coin, personnel management and industrial relations (IR) according to
Storey refers to the concept of getting things done at the right time (Storey, 2014). The
management of Matalan adopts this approach and follows the transactional leadership style
that is oriented with the development of the individuals. Personnel management differs from
HRM as the former is completely task oriented and focuses upon the processes of executing
the tasks. While HRM is concentrated upon promoting a positive and motivated work
environment, personnel management involves less motivation and is only focused towards
maintaining industrial relations and not employee relations. As perceived, Matalan’s manager
is concerned on whether the employees are complying with the organizational policies while
doing work.
1.3. Implications for line managers and employees for developing a strategic approach
at IKEA
During the development of strategic HRM approaches, several implications can be
highlighted for both the line managers and employees at IKEA. In order to develop an
effective working culture, the line managers of the company need to integrate all the
proficient HRM approaches and adopt a suitable and favourable leadership style which can
motivate the workers and keep them committed (Girma, 2016). According to the demand of
the situation, the changes in the leadership style, hierarchy in senior management and job
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rotations can help the line managers of the company to avoid internal employee conflicts and
also avoid adopting approaches that can adversely affect the business proficiency. On the
other hand, the ranges of implications for the employees at IKEA are remuneration and bonus
fluctuations, job security, leave, etc. that will be based on the performance standards and
effectiveness of the employees. These implications will be provided to the employees
according to the success contributed to the company.
Task 2:
2.1. Flexibility model at IKEA
The current business environment of UK is dynamic and it requires a lot of new and
innovative concepts through which the companies can be able to ensure success and
profitable position in the overall competitive market. Hence this flexibility model implication
is of utmost significance. Encouraging flexibility in workplace will motivate the employees
and develop their performance standards effectively (Porter, et. al., 2016). The flexibility
model promotes workplace motivation and boosts the efficacies of the employees thereby
achieving the organizational success. Adopting this model at IKEA opens up various
opportunities for the company to sustain competitively in the UK market. Also this model
promotes job satisfaction among the employees and ensures their loyalty and commitment
towards work.
2.2. Types of flexibility developed within IKEA
The flexibility model developed at IKEA can bring in various flexibilities as follows within
the work zone of the employees which can improve their performances and ascertain their job
satisfaction:
 Employees have the flexibility to participate in decision making process thereby
taking decisions as per their suitability
 They can even take decisions regarding their work timings and shifts which are
convenient for them (Azeem, 2016)
 Free communication with the employees is also encouraged at IKEA thereby sharing
individual views and ideas widely with each other influencing their work performance
 Various facilities and benefits such as bonus, remuneration, leave facilities, etc. are
provided to the employees thereby giving them importance
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2.4. Impacts of changes in labour market having flexible working practices
In order to make sure that the operations at IKEA are running successfully, it is important to
acknowledge the changes in the labour market. These changes can impact upon the flexible
working practices of the company both positively and negatively. The demographic variables,
resource and labour availability and involvement of average aged employees can affect the
flexibility within the company. Moreover, the advancement of technology in the work can
influence and enhance the performance quality of the employees in the overall market. (Peter
& Robert, 2015)
Task 3:
3.2. Practical implications of equal opportunities legislations at IKEA
Equality should be promoted within the working environment of IKEA. The management
must follow Equality Act (2010) and make sure that equal opportunities are offered to the
employees. Promoting equality will help the employees to grow and develop their
performance standards effectively thereby achieving the organizational objectives (Smith, et.
al., 2016). Also this Act promotes equality between the men and the women in the
workplace. When the employees will receive equal treatment, then they will feel motivated
and automatically their interest in performing better and efficiently will be ascertained.
3.3. Approaches to manage equal opportunities and diversity at IKEA
The management of IKEA must promote diverse working environment so that different types
of employees can share their respective unique perspectives at work and attain overall
efficacy. Providing equal opportunities and fair treatment to the employees will help IKEA to
ensure quality performance and effective outcomes from the employees. The management
thus should promote equality at workplace and encourage cohesive work environment to
enhance the operational standards (Stone, 2013). Also there should be proper communication
network through which the employees can interact with each other and perform effectively.
Rewards and benefits should also be given to the employees to engage them at increase the
company’s productivity.
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Task 4:
4.2. Approaches of managing employee welfare
Since IKEA is considered to be one of the most recognised furniture brands of UK, a large
number of employees are involved. Two important schemes are followed at the company in
order to motivate the employees and manage their welfare (MacDougall, et. al., 2015). These
schemes are:
 Several facilities are provided to the staffs within the organizational premises
 Staffs are also provided with essential services or fringe benefits even outside the
premises
At IKEA, the staffs are provided facilities both inside and outside the organizational premises
such as:
 Safety measures are taken to ensure security of the employees
 Security guards are appointed both entry and exit of the company
 Food and medical services are always available for the staffs
 Remuneration and bonuses are given to them
 There are facilities for overtime work as well (Snell, et. al., 2015)
 Female employees are given importance and equality is promoted
 Training and development programs are arranged for the staffs
 Accidental policy is given to them
 Pick and drop facilities are also allotted for some employees
 Accommodation facilities for the staffs are being provided
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References
Azeem, S. (2016). Drivers of Employee Motivation: Mediating Role of Job Satisfaction.
Girma, S. (2016). The relationship between leadership style, job satisfaction and culture of
the organization. IJAR, 2(4), 35-45.
MacDougall, A. E., Bagdasarov, Z., Johnson, J. F., & Mumford, M. D. (2015). Managing
workplace ethics: An extended conceptualization of ethical sensemaking and the facilitative
role of human resources. In Research in Personnel and Human Resources Management (pp.
121-189). Emerald Group Publishing Limited.
Mayo, A. (2016). Human resources or human capital?: Managing people as assets.
Routledge.
Peter, A., & Robert, E. (2015). Managing Human Resources and Technology innovation: The
impact of process and outcome uncertainties. International Journal of Innovation
Science, 7(2), 91-106.
Porter, T. H., Riesenmy, K. D., & Fields, D. (2016). Work environment and employee
motivation to lead: Moderating effects of personal characteristics. American Journal of
Business, 31(2), 66-84.
Smith, C., Allard, P., & Harper, M. G. (2016). Managing Human Resources.
Snell, S. A., Morris, S. S., & Bohlander, G. W. (2015). Managing human resources. Nelson
Education.
Stone, R. J. (2013). Managing human resources. John Wiley and Sons.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals).
Routledge
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