Introduction
Human resource management and human resource planning are integral parts of any organization. Employees are key players in any organization and the success of an organization considerably depends on the productivity of the employees. Human resource management aims at ensuring cohesion between employees and the management. In the 20th century employees were merely considered as tools to achieve organizational goals but the trend changed. Continuous and intensive research has played a major role in ensuring that organizations view the work force as assets rather than just a means of production (Niehaus& price, 2013, 5). For the purpose of this paper we will focus on human resource planning by using IKEA as a case study, including the scope and a practical approach of the key components of HRP.
IKEA
IKEA is a multinational organization, the core business being providing designed home furnishing products at highly competitive rates. The company has multiple branches in the United Kingdom and parts of Europe. The company prides itself in its human resource and has a company policy that encourages growth and development for all employees. The company has a well laid out structure of human resource roles and objectives. Details on minimum and maximum workload for employees are stipulated including the procedure and stages for growth in the organization. On the other hand the organization does not detail how employees develop from one stage to another rather than mentorship or how they reward them.
Human resource planning aims at identifying the current and future needs of an organization in regards to human resources who facilitate the achievement of company goals. IKEA requires a steady supply of employees in order to achieve its goals of providing home furnishing products in Europe as well as expansion. The company strongly relies on the input of the employees as they are the direct link between the organization and the customers. IKEA has made significant effort in ensuring that they have a good steady and cordial relationship with the employees. IKEA prides itself with a workforce of over 15,000 employees thus needs to be able to determine which employees are suitable for particular tasks and positions. The company is also working on expanding by increasing its number of stores in the United Kingdom
Through the implementation of human resource planning the company will be in a better suited position to lay down a properly detailed record of the workforce it has available as well as look for the appropriate skill set that is required in each department. Human resource planning will ensure effective management and development of the employees in accordance to the company policies laid out.
HRP Functions.
HRP like all other forms of management tools requires specific, measurable, attainable, and realistic and time bound (SMART) objectives that the company uses metrics of measuring its success in the process. The goals should include human resource development and growth, career planning as well as ensuring happier and more committed employees.
The process will assist the organization to determine the human resource requirements it needs currently and in the future. Through a proper and in depth analysis of roles and skills available the company gets to evaluate the skill set and compatibility of given employees in relation to their roles and job description. Employees that need additional skills can then be marked for training in order to ensure that they are able to perform their tasks effectively.
It is important for every organization to have a well updated database of its employees which helps the organization to track the work force inventory. Employee history and skills should be recorded effectively and efficiently. This ensures that in the future, loyal and competent employees are not passed over in case of an opening in an area where they possess capacity to excel. The inventory further assists the organization in tracking its employee’s turnover patterns.
IKEA already has over 15000 employees but that does not mean that the company has stopped growing. As the company grows and continues to prosper they will need more employees and a variety of skills that will ensure that they continue being as successful as they are today. Through HRP the company should be able to anticipate the skills required as well as the number of employees that they would need to hire and in each department. Planning ensures that the company operations are not put at a standstill. For example when an employee retires as a result of old age a replacement should be available at hand. Adjustments in relation to demand and supply of human resources are crucial in ensuring continuity of an organization.
Happy and content employees are more productive thus it is the role of HRP to ensure that the organization provides the best possible working environment for the employees. Safety matters, well developed and effective communication channels play a major role in ensuring that employees feel comfortable and content in there working environment thus assisting the company to not only attract but maintain its work force.
IKEA Exeter is a project that requires employees with a particular skill set since it is a venture that the company is planning on undertaking. The company needs to be prepared adequately. IKEA already has existing stores in United Kingdom and Europe at large. The company has a variety of employees that can be instrumental in ensuring that the project is a success. Through HRP the company will be able to identify the individuals that have the capability to manage as well as spear head the project effectively.
IKEA Exeter has already been a matter of debate and speculation ever since the company announced that they were opening a store there. Many journalists have speculated on whether the company still intends to open IKEA Exeter. The confusion and curiosity is as a result of the company operating despite being allocation property over 2 years ago. The company defended itself saying that they were still opening the store and that the holdup was due to designs for the interior of the shop.
The company is already facing scrutiny in regards to the project externally. HRP strategies in regards to the project will be affected both internally and externally as the company works on sorting the work force requirements. Internally some employees would want to relocate and work in the new location. Employees can justify their demand through loyalty to the company regardless of whether they would be best suited for the job or not. On the other hand some other employees would not be willing to relocate to the new store as a result of personal issues such as having to relocate with their families.
The HRP process may have identified employees that would be well suited to work in the new location but as a result of their personal preferences they may be reluctant or even reject the job. The company will then be required to look for another person. It is a well-known fact that human beings are resistant to change and some employees may react negatively to the expansion plans of the organization as they may fear a number of things including job security and job comfort in their current status.
Job seekers and competitors also act as a threat to the HRP process as they have the capacity to poach the current employees in the new location in a bid to defeat IKEA. The indigenous/ locals in Exeter would prefer and demand that they be considered as first priority when it came to hiring. The statutory laws of the new location may also demand that a given percentage of the employees be locals thus posing a challenge to the HRP process.
Employees need to feel appreciated by their employers and as a result they work harder and offer their employer loyalty. Some of the techniques that an organization can use to ensure that their employees feel appreciated include a reward scheme . The reward scheme entails rewarding employees for the hard work, for example presenting them with gift vouchers from different stores including IKEA itself. Awards for best serving employee of the month is an another approach that can help the organization show that they recognize the efforts of their employees. Bonus schemes are one of the most prominent forms of employee reward and recognition strategies, whereby employees are given a share of the profits at the end of each financial calendar.
The above named techniques ensure that the employees feel that there efforts are appreciated by the organization and encourage them to work harder. The organization thus benefits from having loyal employees who are more dedicated towards ensuring the success of the company. Reward strategies need to be structured and implemented in a manner that does not lead to unhealthy competition between employees nor intimidate and demoralise employees who do not perform as well as others. The metrics of determining which employee deserves what needs to be considered carefully to avoid creating discord in the team.
Employee growth and development is a major concern for IKEA as they strive in improving the quality of life and skills of their employees. Employee training and mentorship programs assist the employees to learn on the job as well as get first hand exposure through fellow workers who have probably experienced the same challenges they may be experiencing.
Mentorship training is one of the most cost effective forms of training for an organization as the company does not incur any expenses and the results of the training are often better than actual classroom training. The mentorship program also creates better relationships in the organization at all levels thus the employees function collectively and in harmony, correcting and inspiring one another.
Mentorship programs and trainings are effective yet they are limited in some areas. For example there are some skills that can only acquire though formal training in order for them to understand and execute the knowledge received. The other limitation of mentorship is that errors, misconceptions and mediocrity are transferred from one individual to another as the mentors rely on their own personal experiences rather than facts.
Conclusion
It is important for an organization to fully understand its current position as well as its goals for the future. Having a well-structured road map as to the future of the organization plays a significant role in the facilitation of planning for the future. Human resource management models and techniques need to be analysed and selected in relation to stipulated goals. It is also very important to understand the employee make up, attitudes, skills, preferences believes and morals in order to avoid responding in a manner that would cause more harm than good.
No two organizations are the same, it is possible for companies to have similarities in experiences as well as challenges but they are never exactly the same. The human resource plan that a company decides to adopt should be unique in itself as it should be aligned to the company requirements and goals. Companies that attempt to replicate plans of other companies put themselves in compromising situation and later have a culmination of issues to address.
Organizations should educate the employees on the benefits of human resource planning as they too can contribute positively to the plan. Having a HRP that has the input of professionals, management and employees increases the odds of success for the organization. The inclusion of employees in strategic planning goes a long way in boosting their morale as they start to see that they have a role to play in their growth as well as the growth of the organization. The employees also provide a different perspective that the management team may not be aware of despite intensive research, as they are the ones in the field.
Human resource planning techniques and KPI need to be selected as part of a strategic plan that will ensure that interconnection between the management goals as well as responding to employee needs and limitations. Strategic planning should not be viewed as an event or a project but as a continuous process and adjustments should be made as metrics change. Sustainability and continuity should always be ensured as the process is challenging and it is important for the organization to analyse and manage risk that may occur as a result, as part of human resource planning and management. (Snell&Bohlander 2012, 34)
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