Human Resource Management Report: IKEA's HRM Strategies and Practices

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on the case of IKEA. It begins with an introduction outlining the core functions of HRM, including staffing, compensation, and employee responsibilities. The report then delves into Task 1, exploring the purpose and functions of HRM applicable to workforce planning, emphasizing recruitment, selection, orientation, and training. It also examines the strengths and weaknesses of different recruitment and selection approaches. Task 2 focuses on the benefits of various HRM practices for both employers and employees, such as hiring, rewards, and training, and assesses their effectiveness. Task 3 highlights the importance of employee relations and the impact of employee legislation on HRM decision-making. Finally, Task 4 examines HRM practices within an enterprise context, offering insights into the application of these practices. The report concludes with a summary of findings and a list of references.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION.........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Purpose and functions of HRM applicable to workforce planning......................................................3
P2 Strengths and weaknesses of different approaches of recruitment and selection.................................4
TASK 2..........................................................................................................................................................6
P3 Benefits of different HRM practices for both the employer and employee.........................................6
P4 Effectiveness of HRM practices...........................................................................................................7
TASK 3..........................................................................................................................................................8
P5 Importance of employee relations........................................................................................................8
P6 Key elements of employee legislation and its impact on HRM decision making................................9
TASK 4........................................................................................................................................................10
P7 HRM practices in an enterprise and its application............................................................................10
CONCLUSION............................................................................................................................................13
REFERENCES............................................................................................................................................14

INTRODUCTION
Human resource the vital function of any organization which is mainly concerned with
three major responsibility areas i.e. are staffing, employee compensation and benefits and
defining responsibilities of each person associated with company. Essentially the main objective
HRM is to maximize productivity of an organization by optimizing the work efficiency of its
employees (Werner and DeSimone, 2011). IKEA is one of the leading global brands dealing in
manufacturing of furniture, lightning, kitchen appliances, and home accessories and so on. It was
established in 1943 and with its base headquarters in Netherlands, Sweden. It has its operations
running in more than 48 countries with large number of stores. This assignment will focus on the
scope and purposes of HRM that a company should apply in its operations to increase firm’s
productivity and workforce efficiency. It will also discuss various approaches along with giving
synopsis of strength and weakness of each of them. Moreover some applications of Human
resources management practices will also be described in this assignment.
TASK 1
P1 Purpose and functions of HRM applicable to workforce planning
IKEA is one of the global leading brands having strong hold in the market which is
possible due to its efficient human resource management which ensures proper and effective
utilization of company’s resources and enhancing the performance and work efficiency of its
workforce.
As described above, HRM is that HR managers apply to manage their work and employees
efficiently (Daley, 2012). They also perform some crucial function such as recruiting, selecting,
performance and change management, retirements, risk management etc. For proper functioning
of a company, IKEA needs to implement above mentioned functions carefully. These functions
are mentioned below in detail:
Recruitment and selection: It is an important HRM function which involves recruiting
and selection of new and suitable candidates for a particular job position in the organisation. In
order to build a good team, IKEA should hire talented and skilled employees. They can do this

by identifying vacant position in the organisation and recruiting candidates according to that.
They should see whether employees have that ability to perform their activities in efficient
manner. They can hire individuals on the basis skills, knowledge, talents, abilities, attitude, etc.
Orientation: This is also known as induction program which is conducted for new joiner
which have joined the company recently. These programs help them to know about the company
cultures, working conditions, superiors, their roles and responsibilities in the company, etc.
Orientation program make new joiners comfortable and they receive relevant information about
their job (Hendry, 2012). These program initiates better communication between other
employees and superiors of organisation. New joiners can also clarify their doubts related to their
roles and duties.
Managing employee relations: Employees are the pillars of an organisation and are
necessary for managers to manager good and harmonious relations with their employees. If
employees are satisfied then they will perform their work with more enthusiasm and dedication.
This is an important HR function which should be initiated be superiors of company. They can
do by organizing some games and activities, some outings etc which help in making good
relations with employees. These types of activities ensure good and healthy environment among
organisation and employees feel free to communicate with their superiors.
Training and development: This is also a crucial function which is essential for overall
growth and development of an employee. It is necessary for manager to find out weak areas of
employee and provide appropriate training to them. It is basically given to new joiners which
don’t have much knowledge and skills to carry out their work and to existing employees which
are not used to new advancement in the market. Appropriate training programs can provide them
assistance and they can learn new things and can perform their work with more effcicnecy. This
helps in smooth functioning by them.
P2 Strengths and weaknesses of different approaches of recruitment and selection.
Recruitment and selection are crucial functions of any organisation. They are needed to be
carried out efficiently in order to recruit talented and qualified people for the company. With
these processes managers hire best personnel for company and they in turn work hard so that
company can achieve desired success (Boxall and Purcell, 2011). Recruitment is the process

which mainly deals with attracting and short listing of desired candidates for company whereas
selection is concerned with interviewing and evaluating those candidates and selects the best
candidates which is suitable for the job position.
There are mainly two sources through which the company hires suitable candidates for the
available job post and they are mentioned below:
Internal sources: It involves motivating employees of the company to apply for the job
available in the organisation. Information is provided to all the staff members by managers so
that interested employees can apply for that position. Managers also use this source of
recruitment at the time when the company lacks appropriate funds to recruit desired candidates
from outside, so they shift or transfer people from within the organisation (Cascio, 2018).
Another reason is that, now a day’s company is motivating employees to motivate the skilled
employees to take voluntary transfers in order to reduce labor turnover and cost of recruitment.
Various methods of internal sources are transfers, promotions and employee referrals.
External source: It motivates and attracts more talented and skilled employees towards
company in order to apply for vacant position in the organisation. Methods used in this source of
recruitment are: advertisements, campus recruitment, employment exchange, walk in interviews,
organizational websites, job portals, etc.
Strengths and weakness of recruitment and selection are mentioned below:
Strength of approaches to recruitment and selection:
IKEA can improve their approaches to recruitment and selection to enhance their
productivity and profitability. Some of the strengths are mentioned below:
 It increases the effectiveness of productivity and profitability of company.
 Incoming of fresh and creative ideas.
 Recruitment of more talented and skilled employees.
 Decrease employee turnover rate.
 Enhances company’s revenue and sales.
 Build up of strong team

Weakness of approaches to recruitment and selection:
Some of the weakness of recruitment and selection are given below:
 Sometimes managers spend a lot of time in recruiting best candidate and end over hiring
inefficient personnel.
 Sometime exiting employee feel jealous from new employees.
TASK 2
P3 Benefits of different HRM practices for both the employer and employee.
Human resource management follows some practices which help them to achieve
company’s mission and vision (Armstrong and Taylor, 2014). These practices give them proper
direction and guidance in order to make their functioning effective and smooth. HR managers
should formulate effective and good HRM practices which can result in maximum benefits to the
company as well as to employees also. IKEA uses different HRM practices to make their
organisation work in desired manner.
HRM practices for employer are:
Some of the practices which are followed by managers and superiors of company are as follows:
Hiring of candidates: This is a crucial function for a HR manager as they are wholly
responsible for recruitment and selection of best candidates for company. They should be very
efficient while selecting any candidate. That individual should suits the vacant job position of
company as well as stand out on company’s expectations. Hiring also initiate fresh talents to join
the company and give valuable ideas and advices to company so that they can implement in their
decision making process.
Benefits of hiring candidates are:
 It motivates qualified personnel to join the company.
 Enhances productivity of company.
 Suitable candidates are hired for vacant positions.
 Achievement of company’s vision and mission in effective manner.

 Inflow of fresh blood and ideas within company.
Rewards and benefits: These are the perks and awards which are given to those employees
who perform well in their tasks. Manager shod plan effective and attractive reward and benefit
plans so that they can motivate their employees to perform their task in better manner. These
awards not only boost up the motivation level but also enhance the productivity and efficiency of
company and employees. By seeking rewards, employee feel satisfied as their work is valued in
the organisation.
HRM practices for employees are:
Training and development: Training and development is crucial for employees in order
to learn something new and enhance the skills and knowledge in respective area. Managers
should identify weak areas of employees and provide them appropriate training as soon as
possible (Bratton and Gold, 2017). They can also provide training to new joiner which doesn’t
know much about working of company and also about the organisation. Training helps company
to achieve their goals and objectives in better manner.
Benefits of training and development are:
 Enhances the knowledge area of employees.
 Efficient working by employees.
 Completion of objectives in better manner.
 Increase in skills, talent and confidence level.
P4 Effectiveness of HRM practices
It is necessary for IKEA to establish effective and good HRM practices in order to increase
their company’s profitability and revenue. HRM practices ensure that business activities run
smoothly and employees are satisfied. This leads to healthy atmosphere and ultimate success of
company. As above mentioned, managers have to implement good practices within organisation
so that company can achieve their set targets and goals. Manager should also increase the
effectiveness of practices time to time so they can maintain their good state of company
(Brewster and Hegewisch, 2017). Employees are crucial part of every enterprise and are
important that they are satisfied and perform every task with full dedication and hard work.

Company should formulate effective rewards and benefits plans which can motivate employee to
perform better. HR manager can generate proper training programs for suitable candidates to
improve their skills and behavior. HRM practices help organisation to operate its business
activities in better manner. Some of the practices are given below:
Recruitment and selection: These processes play an important role in providing talented
staff to company. This process makes sure that each selected candidate is suitable for a particular
job. In order to find that perfect candidate, manager has to first identify vacant position within
organisation, then they have to list down all the necessary qualities and requirements needed to
perform that job and attract and recruit a candidates according to that. Training and development
increases the effectiveness of business operation and also increases profitability and overall
revenue of the company. This process also leads to employee satisfaction and self improvement.
Performance appraisal: This is an important HRM practice which helps company to keep
record of employees and award best performer with appropriate compensation and benefits. This
help in increasing the motivation and morale level of employees. This system should be present
in every organisation so that they can watch on each and every employee and tell them about
their performance. By appraising employee boost up their confidence level and perform their
work with more enthusiasm.
Manpower planning: It is also known as Human Resource Planning which is mainly
concerned with putting right number of people, right kind of people at the right place and at right
time. It is necessary for managers to ensure that their management of resources and employees
are up to the mark or not. It ensures effective utilization of personnel. It is very important for
organisation to implement manpower planning within organisation.
TASK 3
P5 Importance of employee relations.
Employees are considered as backbone of every organisation as they are key personnel
which operate actual tasks of a company in order to achieve ultimate goals and objectives.
Managers should carry out effective recruitment and selection process, which allow hiring of

best candidates for enterprise (Truss, Mankin and Kelliher, 2012). Company can achieve
maximum success if they have talented and skilled work force.
It is necessary for a firm to formulate certain activities and programs which can increase the
communication between superiors and employees. Increase in communication leads to effective
working, healthy environment, good transfer of information, etc. If company have better
employee relations than they can achieve their targets in better way and there will be creation of
healthy atmosphere within organisation. Better relations ensure proper functioning by
employees.
To initiate healthy relationship with employees, managers can encourage employees in
decision making process and take their valuable ideas and feedback on any issues or problems.
This is how employees will feel associated with company and will bring more creative and
innovative ideas which can benefit the company (Rogers and Guest, 2011). With the help of
these activities managers come to know about behavior of employees and try to satisfy them by
fulfilling their needs and requirements.
Some importance of good employee relations is mentioned below:
Timely achievement of set objectives: One of the greatest advantages of good relation is
that, the company achieves their goals and objectives on time. When managers involve and
encourage employees to participate in various important activities and both work as a team, this
leads to more effective working by them and timely achievement of goals (Albrech, 2011).
Employees become motivated and come forward and give their ideas to their superiors who can
be implemented in decision making process and company can earn more benefits out of it.
Reducing Conflicts & Disputes: When employees and superiors understand each other
and know each other behavior, this help in reducing unnecessary conflicts and fight between
them. Mutual understanding is very important to make harmonious relations between two
persons. They help in resolving all the misunderstanding and conflicts arising between them.
P6 Key elements of employee legislation and its impact on HRM decision making
Every country has their employment legislation and policies which are crucial for every
industry and organisation of that country to follow. These laws are made in order to avoid

discrimination with labor and every other person working in an industry or a firm. Laws that are
made generally concerns employee retention, labor relations, labor management, compensation
and benefits, minimum and maximum wages and many more. These policies greatly effects
decision making of organisation as they have to decide and implement their policies and
procedures by considering these labor laws. Following are some important laws that are
formulated by government:
Anti Discrimination Act, 1964: This act was enacted by government in order to avoid
every kind of discrimination with the worker employing in any industry or a firm. Some basis of
discrimination is race, color, sex, religion and national origin. It is crucial for IKEA to know
about this act and avoid any kind of discrimination within organisation.
Wage and Hour: This act was also formulated by government of United Kingdom
regarding minimum wages. It is necessary for HR managers of IKEA to provide appropriate
salary to their employees. This is based on Fair Labor Standard Act which considers the wage
and hour of workers.
Leave provision: This act is also related with Federal Family and Medical Leave Act.
This provide employees with leave benefits as they can take leaves up to 12 weeks of unpaid
leaves in 1year. They can prevail this leave in any situation including health condition of
employees, bonding of new babies and any emergencies that can occurred in critical situations.
This act provides better job protection to employees during their absence.
TASK 4
P7 HRM practices in an enterprise and its application
HR managers are mainly concerned with recruitment and selection training and
development, managing business operations on daily basis of organisation in order to achieve set
targets and goals of company (Huselid and Becker, 2011). For this, implementation of HRM
practices is necessary within organisation. Managers of IKEA are efficient enough to implement
good HRM practices in order to ensure smooth functioning of company. Mentioned below is an
example of an activity which is performed by HR manager.
Management training at IKEA

Workshop title/ Training practices Date- Time-
Location Instructor
Candidates
Activity Time of activity Process Equipments required
Induction of candidates
Training objectives
a)
b)
Warming up
Contents and necessary
points
Job advertisement
Sales person require
Qualification /Eligibility
MBA in Marketing from any recognised institution
To apply:
You are required to upload your application with CV and latest photograph on our websites
latest by 31 March 2018.
Email-id: www.IKEA.com
Contact no.: XXXX00000
Job specification
Qualification Master's Degree in Marketing.
Bachelor's degree in business or related field.

Experience Should have 2 year experience in sales.
Area of expertise Should be proficient with communication
skills and leadership skills.
Other qualities Good verbal and writing skills.
Strong marketing skills.
Good interpersonal skills.
Interview Questions
 Have you ever participated in any co- curricular activities?
 What strategies will you adopt while working in the organisation?
 Where do you want to see yourself in next 5 years?
 What are your strengths? What are your weaknesses?
Personal specification
Particulars Required criteria Learning and outcomes
Qualification and training Communicate with new
employees
Able to perform whole
induction process.
Experience Providing the best services to
customer
Pressure handling ability
Must have performed certain
induction process in training
sessions in college days
Skills and knowledge Attentive and good
communication skills
Developing and generating
innovative ideas
Personal characteristics Proactive, leader, confident,
positive attitude
Team Builder
Developing certain skills
and traits to work in
organisational culture.
CV

Information of candidate
Name:
Father's name:
Mobile no.:
Email id:
Key skills:
 Creativity
 Well versed with concept Human Resources Management
 Have advanced knowledge of computer
 Working in team
 Having ability to learn and grasp
Experience:
 Goldman : Assistant to Retail Manager
 Schroedinger: Worked as a learn leader in retail store located at Durham.
CONCLUSION
The above project has concluded that HRM helps company to manage their day to day
operation and their crucial activities with efficient and ensure smooth flow of work by
employees. HRM should be effective in every organisation in order to achieve targeted goals and
objectives. This leads t desired success of organisation. IKEA is inculcating effective HRM
practicing in order to improve their efficiency and to lead the market which can help them to
achieve competitive advantage over others. With proper management of all activities, it becomes
easy for managers to handle business activities. Recruiting best employees is the main
responsibility of a HR manager. Qualified people help company to maximize their profits and
revenues. Good HRM practices enable company to manage employees and activities effectively.
Proper management leads to achievement of desired success.

REFERENCES
Books and Journals
Werner, J.M. and DeSimone, R.L., 2011. Human resource development. Cengage Learning.
Daley, D.M., 2012. Strategic human resources management. Public Personnel Management, pp.
120-125.
Hendry, C., 2012. Human resource management. Routledge.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Truss, C., Mankin, D. and Kelliher, C., 2012. Strategic human resource management. Oxford
University Press.
Rogers, D.P., Strategic Human Resource Management. The Encyclopedia of Human Resource
Management: Short Entries, pp. 403-409.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp. 3-13.
Albrech, S.L., 2011. Handbook of employee engagement: Perspectives, issues, research and
practice. Human Resource Management International Digest. 19(7).
Huselid, M.A. and Becker, B.E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Online
Principle of Human Resource Management. 2014 [Online]. Available through
<https://onlinecourses.nptel.ac.in/noc18_mg18/preview>

P2