This unit state that you are appointed as Management of human resource and they had to carry out research on different aspects of managing workforce by effective utilization of human resource.
- 1. Explain purpose and scope of HRM in term of organization skill and talent to achieve goals for IKEA.
- 2. Provide effectiveness of various elements of Human Resource at workplace.
- 3. Demonstrate external and internal factor that affect decision making in relation of employment legislation at IKEA.
- 4. Develop application of human resource in work related context.
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 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.
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:
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.
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.
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.
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.
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 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.
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.