The Responsibilities of the Human Resources Function within IKEA

Unit 4: Human Resources

E1:

Introduction to Personnel Management and Human Resources Management (HRM)

To succeed, an organisation need to acquire staff who are committed to achieving its aims and objectives. To do this, the organisation must provide adequate training for staff and motivate them by management, to achieve their maximum potential. The organisation can motivate its staff by personnel management or human resources management (HRM).

According to Business Vocational A Level, personnel management is concerned with looking after the welfare of employees and the day-to-day administration of policies affecting them. It is also responsible for administration concerning employment, for example staff records, absences from work, and pay and benefits. The personnel management is involved in maintaining accurate personnel records, as required by law. These personnel records are stored onto computers. The personnel department is responsible for ensuring, that they are kept safe, secure and confidential. Under the Data Protection Act 1984, personnel departments have to be aware of what they can and cannot do with the information. It is necessary for personnel departments to keep the personnel records, as they can be used to fulfil the needs and activities of the business.

The main objective of the personnel department is, to ensure that the business use its human resources as efficiently, as possible. For example, employees need the right training to use computers, properly. Another example is the staff absences that need to be recorded, as they may affect pay and productivity, and the reason for absence need to be established.

One of the main functions of a personnel department is to recruit and train an appropriate workforce. Within this function, some of the responsibilities of a personnel manager are:

To classify jobs and prepare wages and salary scales
To deal with disciplinary problems
To develop safety standards and practices
To provide periodic reviews of performance of each employee, and recognition of his or her strengths and needs for further development
To plan and supervise training programmes

This type of management is best-suited to large organisations where, there are number of employees working under one roof. Personnel management will enable organisations, like IKEA to manage its ‘people’ (co-workers) efficiently.

According to Graham and Bennett, Human Resources Management (7th edition), the HRM is concerned with the human side of the management of enterprises and employees relation within the firm. During the 1980s, HRM was introduced to all businesses, and since then a majority of them are still devoted to the approach. This is because, the HR focuses on issues, such as recruitment, training and employment laws that many businesses believe are important to its performance. The HRM is also concerned with recruiting, developing and retaining quality staff. The management carries out a great deal of day-to-day administration and record keeping, but now it is more concern in helping the business reach its goals, by creating and maintaining an appropriate workforce.

According to Krulis-Randa, a writer on people management, the HRM has some of the following characteristics:

The planning of Human Resources is part of overall corporate planning- Today, many organisations use mission statements, which include references to the places of Human Resources. For example, to secure the best personal development of company members

Employees are viewed as individuals with the potential for development, in line with the needs of the organisations- A majority of organisations have set up appraisal systems to focus on the continuing of professional development of staff.

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Management and non-management are committed to main goals, and have interest in the success of the organisation- The increased emphasis on teams in organisations actually means that more individuals are involved in recognising goals and should therefore be more committed to them

A reduction in hierarchy and the blurring of the difference between management and non-management- The use of quality circles, where employees participate as a team and responsible for their own self-management and regulation

There are two types of HRM: the ‘hard’ version and the ‘soft’ version. The hard approach highlights ...

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Management and non-management are committed to main goals, and have interest in the success of the organisation- The increased emphasis on teams in organisations actually means that more individuals are involved in recognising goals and should therefore be more committed to them

A reduction in hierarchy and the blurring of the difference between management and non-management- The use of quality circles, where employees participate as a team and responsible for their own self-management and regulation

There are two types of HRM: the ‘hard’ version and the ‘soft’ version. The hard approach highlights the quantitative strategic aspects of managing people, as organisational assets. The soft approach highlights the importance of communication, motivation, leadership, and the joint commitment of employees and employers.

Both large and small organisations use HRM as it provides a number of techniques, like psychometric tests (used in recruitment and selection), and systems for staff appraisal and performance management.

A theorist named, Guest (1987), has listed the following stereotypes of personnel management and HRM:

The main responsibilities covered by the HR function within IKEA

The overall purpose of the HR function can be identified as:

to attract and retain good, quality staff
to train and develop all staff to enable them to reach their maximum potential
to ensure that the business avoids unlawful or unfair discrimination
to make sure that the business operates within the law, in relation to employment law and health and safety

To fulfil its purpose, HR staff at IKEA needs to carry out certain activities. These include: HR planning; recruitment and selection; training and development; performance management; working conditions; employee organisations and trade unions; and health and safety.

HR planning

The HR planning can be defined as, “the activity of management, which is aimed at co-ordinating the requirements for and the availability of the different types of employees”.

The HR Manager of IKEA needs to plan carefully, to ensure that they have the right number of co-workers (employees) for their needs. To do this, the HR Manager needs to have a good understanding of the labour market in the Sandwell area, where Wednesbury IKEA operates.

HR planning is very important to Wednesbury IKEA, as it will help the business to plan ahead and lead the business’ operation towards achieving the set aims and objectives.

All IKEA stores, including Wednesbury IKEA are keen in achieving the Human Resources Idea. The Human Resources Idea is, ‘Going down to Earth, straightforward people, the possibility to grow, both as individuals and in their professional roles, so that together we are strongly committed to creating a better everyday life for ourselves and our customers’. The meaning of this, is that IKEA employs staff and provides them both professional retail training and personal development so that, together they can fulfil their customer needs, in a most excellent way. For example, they offer a wide range of high-quality products and services to its customers. See Appendix, for further information about the Human Resources Idea of IKEA.

Recruitment and selection

The HR function is responsible for hiring new staff. The HR staff needs to follow the recruitment procedures carefully as, the cost of recruitment is high. If the HR function appoints someone who cannot perform the job, they need to re-advertise the vacancy, which is very expensive to do. Also, the business have to continue running its operation with a shortage of skilled staff.

The HR function is responsible for ensuring that the labour turnover (also called staff turnover) remain low, as possible- in other words, the business want to retain the staff, they recruit. Retaining staff will save the business, the cost of recruiting and re-training someone else.

If staff has to be dismissed, the HR staff must make sure that this is done legally, as there are number of laws, relating to employment and dismissing staff. For example, the Race Relations Act 1976 prevents people of one race, colour, nationality or ethnic origin being treated differently than others. The Wednesbury branch of IKEA follows the Harassment Policy. I have included a copy of the Harassment Policy in the Appendix section.

The HR function within IKEA follows the Personnel Planning and Recruitment Policy, when deciding to hire new staff. The Personnel Planning and Recruitment Policy will try to ensure, that the HR staff recruits the best possible candidate for each job vacancy being offered the position, and reduce any possibility of co-workers being treated unfairly. A copy of this policy is in the Appendix section.

The Wednesbury branch of IKEA is proud to be an ‘equal opportunities employer’ because, this will develop a culture in which fairness and justice plays a vital role. A copy of the Equal Opportunity Policy is in the Appendix section.

Training and development

The HR function is responsible for providing training opportunities to employees, who want to develop their skills and abilities, after they have started work. This will enable them to apply for job with more responsibility and better pay. When training the employees, the HR staff at IKEA must keep the staff training records, manage the procedures for applying for training, and monitor the training budget. After training the employees, the HR staff needs to get feedback on the training programme, itself. If there were unpopular events in the training programme, the HR staff needs to review and improve them.

It is important for the HR staff to constantly train and develop co-workers’ skills and abilities, so that they can support IKEA, by working towards its aims and objectives, and meeting the business demands, in times of stability and of change. It is important for the Wednesbury branch of IKEA to provide employees the opportunity for individual development, as this will lead to job motivation and satisfaction.

The HR function at IKEA follows the Personnel Training and Development Policy. The Personnel Training and Development Policy states that the HR staff need to provide constant training and development to all employees. The policy also states, that employees should be given the opportunity to acquire and increase their knowledge and understanding of the IKEA Business Idea, business culture and core values. A copy of the Personnel Training and Development Policy is in the Appendix section.

The HR function within IKEA also follows the Training Policy, when deciding to hire new staff both within and outside the business. The Training Policy is to offer training and development for all co-workers, to ensure they are completely trained to achieve maximum job performance and satisfaction. The Training Policy is displayed on the co-workers notice board, and is available in the HR Department. See Appendix, for further information about the Company’s Training Policy.

Performance management

To remain a competitive organisation, the HR function within IKEA needs to monitor the performance of its employees, effectively. There are number of methods, in which the HR staff can monitor the performance of its employees. One of the common methods used in IKEA, is setting targets for each individual and groups. When setting targets, the HR staff must ensure that these goals are SMART, i.e. specific, measurable, attainable, realistic and timely. Another common method used in IKEA is, carrying out performance reviews such as appraisals, so that the HR staff can receive feedback on employee performance, effectively. Every year, all co-workers (employees) performance will be reviewed, in a face-to-face discussion with their Line Manager. Whilst in the performance meeting, the line manager will discuss and review co-workers Personal Development Plan (PDP).

It is important for HR staff at IKEA, to monitor the performance of its employees, so that the business can reward performance-related pay in the form of bonuses to employees, who have achieved their goals and reached their maximum potential. Providing incentives such as, performance-related pay will encourage and motivate staff to work harder and achieve the goals that they were set to do. The HR staff at IKEA is also responsible for making sure, that all co-workers are motivated and committed to work, so that the performance of the business can become even better.

Working conditions

When applicants are being interviewed, the HR function needs to inform them about their conditions of employment and their working conditions.

The terms and conditions of employment are stated in the contract of employment. This is legally binding contract between two parties- employer and employee. Under the Employment Rights Act 1996, the HR staff must give this contract to new employees, within eights weeks of starting work.

The working conditions relates to the following:

physical environment- e.g. lighting and heating, level of noise, furnishing and equipment
job content
promotion prospects of the organisation
training opportunities
welfare policies- e.g. loans to employees, stress counselling

The HR function is also responsible for assessing the working conditions of staff and recommending improvements to managers.

It is important for all IKEA stores, including Wednesbury IKEA, to have good working conditions, so that they can attract more high-quality staff.

I have included a copy of the Terms and Conditions of co-workers’ employment with IKEA in the Appendix section. The information was extracted from the Welcome to our family, staff booklet. The Terms and Conditions of co-workers’ employment is also stated in their contract of employment and Statement of Terms and Conditions.

Employee organisations and trade unions

The HR function is responsible for ensuring that the employees are treated fairly by employers and that their views are taken into consideration. If an employee is treated unfairly by an employer, he or she should seek help and advice from an employee organisation, or a trade union. These organisations aim to protect employee rights and try to improve working conditions and job security. The HR function is also responsible for negotiating with trade unions, on behalf of the management.

The HR function within IKEA need to make sure that, there is a good relationship between employer and employee. If dispute occurs between the two parties, and employees views are not taken into consideration, they will likely to strike. This will have a dramatic affect on the Wednesbury IKEA, as this will give the business a bad reputation. I have included a copy of the Employee Relations Policy in the Appendix section.

Health and safety

The HR function is responsible for ensuring that the business operates within the health and safety laws. The HR staff at IKEA needs to make sure, that both employers and employees are abided by the Health and Safety at Work Act 1974. This Act of Parliament states the general duties and responsibilities that an employer has, to their employees, and to members of the public. It also states the general duties and responsibilities that employees have to themselves and to each other.

The Wednesbury branch of IKEA considers health and safety as a main priority of their business. Also, the business aim to provide safe, comfortable and healthy working conditions for co-workers (employees), visitors and customers. In Welcome to Our Family staff booklet, I have found out information about the health and safety procedures in IKEA. The information need to be read in conjunction with the IKEA UK Health and Safety Policies. Copies of the IKEA UK Health and Safety Polices will be held by the UK Risk Manager, Services Manager and Health and Safety Department.

It is important that, employers and employees in Wednesbury IKEA follow the health and safety laws, so that they can protect themselves and each other from dangerous work at the workplace.

The main responsibilities of a Human Resources Manager in IKEA

I have gone to the Professionals In Human Resources Association’s website, and identified the main responsibilities of a HR Manager in IKEA. They are:

To take the lead in the important tasks of attracting, developing and inspiring the people

Create an environment where the IKEA culture is strong, and where the diversity of our co-workers and customers is valued and embraced

Attract, recruit, retain, develop, coach, and inspire our co-workers according to our Human Resources Idea in partnership with the store management

Lead the personnel and professional development of our co-workers through training, mentoring and succession planning programmes

Lead in the development of diversity and work life balance initiatives

Provide effective co-workers relations through problem solving, mediation, and two-way communication

Monitor, adhere to and provide advice on policies and procedures including relevant laws and regulations

Ensure that all Human Resources administrative systems are current, accurate and efficient

Contribute as a member of the Store Steering Group and lead the Human Resources team

Assume responsibilities for projects and task as they occur

The above responsibilities apply to all HR Managers working in IKEA stores, like Wednesbury IKEA, across the world.

Identifying the HR function within IKEA

Looking at IKEA’s organisation chart (see Appendix), there are four people employed in the HR function. The Store HR Manager is Alison Shipway. She is linked to the Store Manager and the HR Manager. The HR Manager is Joe Pygott. He is responsible for the HR Specialist, Sue Whitehouse and Training Co-ordinator, Julie Testil. Both job titles have supervisor/specialist roles. I have colour-coded these job titles in red, onto the organisation chart.

The Importance of HR function within IKEA

The HR department is very important to the Wednesbury branch of IKEA because, HR staff has to keep personnel records; discipline, and make sure employees are abiding the employment law and company rules. If this cannot be done, all staff will be de-motivated and won’t be concerned with their work. This will make IKEA difficult to achieve the Human Resources Idea (see Appendix), as well as, its aims and objectives.

Created by Baljinder Duhra -