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HRM is a loom for managing workforce. The main principle for human resource management is an effective staff to manage assets for leading to the success. This would be done when the workforce process and policies of a company will link together. Mostly, human resource management will deal by the integration of brining the employees together to make them involve in a job and to reach success. It is an approach of strategy for acquiring, developing, motivating and managing the company human resources. It is a division which is mainly made for developing the culture of corporate and make programs to encourage and support the values, principles of the company to reach to the success. It is proactive for that is mainly look forward for settling the all requirements which should be made and which are going to be done. It trains the employees and put the right people at the right place at the right time. The authority and techniques in applying the functions of HRM are workforce planning, managing the personnel, appraising the performance of the individuals, administering the payments to the individuals like selecting, planning, development management, training, etc. by making some specific programmes which are designed for improvising the system of rapport and communication, making the personnel committing and increasing the productivity. The personnel are very valuable to the organization and it is necessary to put efforts to develop them.
INTRODUCTION TO IKEA
Over the past six decades IKEA was a small woods company in the south of Sweden from there it became a huge retail industry in 40 years all over the world. Ikea history has started in the year 1926 by the founder Ingvar Kampard who was from Smaland in Sweden. From the young age Ingvar Kampard was interested in developing a business. In 1920s, when he was 5 years old he used to sell matches to his neighbours and at the age of 7 he had started selling in more areas by using his bicycle. Ingvar made an idea of buying the matches in huge for cheap at Stockholm along with sell them to individuals for low cost and make more profits.
In the year 1945 he started his own newspapers and also makes shift of mail ordering overhaul. He used to use the milk van of the local for delivering the products for near train station. In the year 1948 he introduced furniture which is produced by local producers in forests nearby which is close to home of Ingvar Kamprad. There was a good response and business going on increasing. In the year 1951 the initial catalogue of IKEA was published. This showroom was price war born by the essential competitor of IKEA. As the sales was increasing both the companies made the prices low and by that quality was been threatened. IKEA was demonstrating the quality and functions of low cost products. Innovation is victorious; individuals were choosing products of best value for their money spent. In 1959 100th worker joined IKEA.
It slowly started introducing new products and expanding its business. In 1981 IKEA opened its store in France at Paris and later on LACK was extended for complementing the LACK shelves and tables were designed. In the year 1984 IKEA FAMILY was launched and its stores are 167 in 16 countries with 15 million workforce. Then IKEA arrived Belgium and first store there opened in Brussels. In the year 1987 IKEA arrived in UK and first store was opened in Manchester.
IKEA is offering a huge variety of good designed, practical home furnishing goods at low cost where many people and any people can afford the products. It is at heart of IKEA whatever it does, from product purchases and development till how they sell their products in their stores internationally. Anyone can produce superior quality goods for the high cost and a inferior quality goods for low cost. However, for producing the good quality goods for low price one should know the methods and develop them which are innovative and cost-effective. IKEA focus was this since the early stages in Smaland, Sweden. They optimize the usage of raw materials and producing adoption for meeting customers' requirements and their preferences which meant that their prices and costs are low. The cost savings of IKEA are the low prices to their customers. IKEA vision is of creating a good daily life for its customers. Their idea of business supports the wide quality of good designed products at low prices where everyone can afford. Since the beginning of the IKEA Group, it has grown to a huge retail industry with 123,000 workers in over 25 countries or territories which generate sales of annual for over 21.5 billion euros. Below are the significant facts about IKEA Group.
IKEA Group Figures since beginning
Sales of IKEA Group
HR PRACTICES USED BY IKEA
Some of the employees like to stick to the same company and some others will like to change, reason for that is some of the organizations knew how to take care of their employees as well as providing good environment at work which helps them to retain with the company and this is the chance to the employees to prove themselves and grow in their carrier with the company growth. Below are the some of the HR practices practised.
OPEN MINDED MANAGEMENT
Employees always like to know what is going on in the company and they don't like to be unaware of the situations of the company. If the policies of the company, contracts, objectives, goals, sales and clients are discussed with the employees are motivated and enthusiasm will be developed in them by which participative management is encouraged. IKEA will discuss all its deals with their staff of what the policies are going to be changed and what more is to be introduced, etc with the staff so that they develop the employee innovation.
GOOD PERFORMANCES ARE PUBLICIZED
Any company has the individuals who perform more than others, those performances are to be highlighted and IKEA does it and gives promotions and rewards to its good performance employees. This will encourage other employees even and boost their performances. Annually a good system should set up for making list for high performances.
ENVIRONMENT OF WORK
A good and safe place of work will make the employees feel better in working in the environment. Every person is given the security of job at IKEA where it is motivated and incentive for staying in the organization. This can be done through the surveys internally and the things go smooth and by finding out from the surveys the issues to be cleared by the organization.
FEEDBACK OF PERFORMANCE
This is the one which almost many companies use it. Feedbacks are been taken from the boss and even from the subordinates and superiors, employees, etc. before, appraisal was done directly from the management without any feedback, however, organizations came to know the significance of performance feedback collection from various quarters. Every individual's feedback does matter specially who are in role of leadership or superior. Constructive response is been given by every individual in the team. This system will help the organization in understanding and identifying people's performance as well as the leaders who are at the high levels of organization. It can even be done to the superiors or managers.
IKEA gives importance of knowledge sharing where it can develop even more with the innovative ideas and also for betterment of the employees as well as their work performance. Collect the information and ideas from the employees and put it in a database and store it so that it can be required for future review or else any other employees can review for their knowledge and skill growth.
IKEA rewards the good performances in its organization. Where talent recognition is very essential and it is made public on the companies announcing in the ceremonies all the achievements of their employees and the company. Employee feels much and more better when they hear good thing about them in a crowd and applause for them.
At IKEA all the best recitals are delighted in the varieties of patting on back, giving bonuses or any other compensation. Most of the companies just think that the workers are just doing their work to be done. Even if it is the workers job to be done, but still appreciation is necessary to complete the work and they are main elements to complete the work. If the workers are boosted then they will be able to work more than they actually do. They can be motivated by giving incentives to them.
EVALUATIONS OF WORKFORCE
All most all of the companies have the workforce evaluations for every individual according to their goals as well as priorities of company. It goes well for the organizations when the accomplishments track for years. IKEA evaluates its workforce and appraise their performances so that their workforce will not be dissatisfied.
The main goal of any company human resource management goal is to make sure of the availability of the employees to the company. Along with this there are many objectives as well. Like organizational, personal, functional and societal.
There goals are responsible to fulfil the requirements as well as challenges of the society ethically as well as socially. Mean while minimizes the opposing impact of demands to the company. The organizations which do not use its resources to the benefit of society will have to face the restrictions.
OBJECTIVES OF ORGANIZATION
The organization will specify the HRM role and bring them to their effectiveness. Human resource management is not conclusion for itself. It assists company in achieving its main objectives. It exists for serving the organization.
These objectives will be trying to make certain the contribution for departments in all stages of the company's necessities. It make the personnel adjustment according to the needs of the organization to reach its goal.
OBJECTIVES OF PERSONAL
It helps the workforce to achieve their goals so that their goals fulfilment will enhance their contribution to the company. If the company need to retain the employees it should fulfil their objectives and motivate them accordingly. If not, if the employees are not satisfied they performance will get declined and affects the turnover of the organization.
A DETAILED STUDY ON HR PRACTICES
Human resource activity is for making plans, developing and managing the programs and policies which are designed for making the optimum use of the company resources. The HRM is also a part of the management and is also concerned by the work of the people and rapport among them by the company. Its duties are make optimum utilization of the human resources, make the rapport among the workforce and the company, and develop the individuals. Its major practices are staffing, planning, workforce maintenance, developing the employees.
In the function of the human resource, the employees and the types are required to achieve the objectives which are determined by the company. Its main function is the research as of the requirement of planning is the collecting the analysis of data to supply the human resource for future requirement of the company. The main planning and strategy of the human resource is workforce development and staffing.
It is a process where it describes role of job as well as specifies the necessities of human, like experience, skills required for performing the job. The final product to the analysis of job process is job description. Job description, it specifies the job duties, activities, responsibilities, etc. It is fundamental source for gathering the information for managers, workforce along with personnel individuals for content of job which has the much influence on the practices and programmes of the employees.
This emphasises on the selection and recruitment process of the human resource to the company. The HR recruiting and planning individuals lead to the selecting of individuals to the right positions of the company. It is an employee function which attracts the expertise applicants in filling the vacancies. In the selection process the qualified applicants will be selected to hire from all of those who are attracted to company by staffing function. The functionaries of the human resource will involve the development and administering which enable the managers in deciding the main applicants in selecting whom to reject.
This is the initial stage for helping the novel workforce in adjusting themselves in the new job as well as employer. This is a mode of acquaintance for novel workforce in particular methods of new job which includes the benefits, payment, hours of work and the rules and regulations of the company and its expectations.
TRAINING AND DEVELOPMENT
It gives the workforce the knowledge and the skills in performing their work effectively and efficiently. Moreover to provide the training to novel as well as inexperienced workforce, companies always give training programs to the experienced workforce whenever they change their role or go to the new work place. They are given the high responsibilities and high level in the organization. Training along with development will provide the useful assuring which workforce will be capable in performing their job in all levels.
It monitors the performance of the workforce in ensuring at all stages and levels. The professionals of human resource management are accountable to increase and manage the performance assessment systems, even though exact appraisal of the workforce is duty of the managers as well as the supervisors. Even, providing basic pay, disciplinary action and the promotion to the employees, performance appraisal is the significant aspect for the development of the employees' knowledge and skills. It is the other way of motivating the employees and enhancing their performance at work.
This has developed as a part of the employees desire to develop in job and career advancement. The activities of the career planning include the assessment of the potentials of employees for advancement and development in the company.
The personnel of the human resource provide the method of rational to determine how much do the workforce to be paid for doing their job. Salary is however relates for maintaining the human resources. Because, the main cost of any organization is the compensation, as it is main deliberation for human resource planning. It may affect the staffing as of individuals are mainly focused to the companies which provide high range of salary for their work performance. It relates to the development of the employees which provides the significant incentive for motivating the workforce for high performance in their jobs and the huge payment jobs in company.
It is the other way of compensation for personnel rather than paying them directly for their work done. The HR function for managing the workforce benefits will share numerous characteristics of function of compensation. It includes the items which are lawfully required as well as which offer the discretion of employer. The HR planning main consideration is the cost of benefits in today world. The benefits are mainly related to area of maintenance, as they facilitate other personnel requirements.
It refers to the rapport and interaction among the workforce who is made by trade union. Union is the organization of the workforce who gather for making huge voice in decision making which affects their benefits, wages, conditions of working and many other aspects of the employment. When taken the labour rapport, the duties of the personnel will involve negotiations by the unions about the resolving grievances, disputes, service conditions and wages.
Record keeping is the old and primary function of the personnel. The practices of the record keeping is maintaining, recording, and retrieving the workforce information to use for many purposes. The records includes medical and health conditions, application forms, history of employment, lists of seniority, hours and earnings of work, turnover, absences, tardiness as well as some other employee data. Up to date information of the employees will be maintained and is essential for employees' functions.
In this all the workforce will be involved in the research process. The main object of the good research is to obtain the realities and the data regarding the specifics of the personnel without post reviewing and pre planning. There is a wider scope to research in the recruitment areas, turnover of the employees, training, terminations, and many more. Personnel opinions are collected for promotions, wages, conditions of working, services of welfare, job security, industrial rapport, leadership, etc. More of its significance, many organizations neglect the research part for the staff the busy in making out the fires. Research is for preventing the fires not to put fires. It is not only the response for any department in the organization. The possible duty is the human resource where it should support the supervisors, executive in every stage of the management. The support from the other companies and the trade unions should not be taken into consideration but should make use of it properly to some extent.
As of the above practices and functions of the human resource management, it also involves in many things like, technology, diversity, change management and innovation. This is not restricted to ethos or the culture of any company. Its main duty is the idea cultivation among diverse companies. The audit function for human resource for every certain period is essential. Human resource professionals will have the surrounding role. They need have the knowledge of company as well as it details as well as complexities.
The possible responsibilities of the human resource are:
Develop corporate culture skills and knowledge and its policies and plans
Act according to the change and as the change consultant and agent
Make possible to initiate the change as well as act as the facilitator and as the expert
Be active in involving in the formulation of the organization strategies
Maintain rapport and communicate and make a communication line among the human resource function as well as the personnel and also with the outside organization
Make know of the strategies of human resource in consonance with all over the company strategy
To make availability of the growth of the many companies groups as well as its rapport among the working groups with effectiveness.
A CASE STUDY ON IKEA HUMAN RESOURCE PRACTICES
This case was for understanding the human resource policies as well as the culture of work for the producer of the major furniture as well as retailer. Case was also about appreciating the significance of human resource practices for the retention of the employees. To understand the requirements of the workforce growth along with the policies study for a huge international organization for the end. To know the effects of culture on workforce and the rapport among the culture as well as innovation.
IKEA was rewarded as for the innovative practices of human resources which emphasized for the flexibility as well as welfare whilst the focus is on the workers growth. The IKEA's different culture of work is supports the employees and encourage the innovativeness as well as the diversity is also been applauded. IKEA Company is been thrilled for being recognized for the best companies working for. It was delighted for among the 100 companies the best to work for. It believes in the philosophy of the employees will have flexibility as well as the support for making personal lives successful. Some months ago, in the year 2004 September, IKEA was been listed as the 100 Working Mothers of The Best Organizations. And it was listed even second time. IKEA was appreciated for its efforts for creating the environment at work which accommodated requirements of the mothers. There were 3 problems which were raised were, scheduling the work flexibility, new parents time off as well as facilities for childcare. IKEA popularity as best employer has been noteworthy potentially because that the reality of the retail industries in U.S were not been known for employee friendly. Numerous huge retailers were paid less salary as well as they were offering the benefits which were negligible and also expect the workers to work for more hours.
It has been accounted for reality of the sector was having the huge and highest turnover of rates from all the other industries. IKEA, however, it suffered from the huge costs of human resources where industries had to select and also train them for the substitutes for regular periods. By the context, IKEA has made sure for standing friendly with their employees and made policies for that as well as the generous reimbursements by which IKEA was been preferred in the sector of retail. There was been a rumour that IKEA founder Ingvar Kamprad was the rich man in world who can even beat the Bill Gates who was the founder of Microsoft. IKEA was started by a young boy who name is Ingvar Kamprad at the age of seven and it was born businessman whose goals is to do business even being a middle class man. His aim was to make his creations in reach of all the people, where it is the customers, common public, rich, middle class, etc. His vision came true after a many and numerous struggles. IKEA have adopted paternalistic attitude for their workforce as well as their requirements along with promotion of the workforce empowerment. Even the organization had an optimistic philosophy of human resource along with offering the liberal facilities; its applications were less or generally harmonized as well as the policies which were applied for all employees uniformly. However, it had not worked that good because; different people or employees were having dissimilar requirements. They then felt, workers will be benefited if they have a greater result of flexibility for benefits. IKEA's optimistic practices of human resources were been encouraged by the strong as well as culture of nurturing which promoted the diversity along with innovation. IKEA spirit was founded on their enthusiasm and their steady will for renewing on their cost awareness and on their readiness for pretentious the accountability as well as in helping.
THERE ARE MANY OTHER NEW ROLES IN THE HUMAN RESOURCES
Bring in the novel trends and issues which concern the company internal and also the external individuals and make attention of the decision makers' strategies as well as propose strategies of long term for supporting the fortitude and the excellence of the organization.
Prepare and design the systems of the human resource and its actions in implementing the optimum production impact on the company development as well as the performance.
Make availability of the implementation and development strategies for changing the company by pursuing the visions and the values.
Create the smooth flow of the services and products to its consumers and customers and make sure that the most and better flexible resource utilization and make a commitment with the individuals who assist in meeting the customers needs even work directly or indirectly with the organization.
Know the requirements for learning and also design as well as develop the learning programs and facilitate the materials in helping the individuals to learn.