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Both Personnel and Human Resource Management (HRM) share similar functional activities of managing people in the organisation, performing these functions, however, in a qualitatively different way (IQPC n.d.) that is explained in the part A. Line Managers have multiple human resource roles and responsibilities within the organisation that are also assessed in the part A. Organisational environment of IKEA analysed in the part B greatly influences the HRM function of the company, including the impacts on the legal and regulatory framework.
HRM is called to develop and implement human resources integrated into corporate strategies. It ensures that the culture, structures and values of the company and the motivation, quality and commitment of its employees are invested fully to achieve the goals of the organisation. Personnel management performs administrative recordkeeping function. It controls fair terms and conditions of employment at the company while managing individual department activities. Both HRM and personnel management perform functions like human resource planning, job analysis, performance and compensation management, training, recruitment and selection etc. However, there is a difference in performing these functions by HRM and personnel management (IQPC n.d.).
Personnel management is workforce-directed. It focuses on employees mainly, finding and training them, arranging their compensation, justifying the actions of management and explaining their expectations etc. HRM is resource-directed on the other hand. It is concentrated mainly on management development in terms of assigning duties of HRM to line managers etc. Personnel management carries an operational function that directs daily people-management activities, while HRM carries a strategic function that focuses on assisting the company to achieve sustained competitive advantage. Personnel management is less proactive than HRM. It controls the sustentation of personnel and administrative systems while HRM controls forecasting of the needs of the company, monitoring and adjusting personnel systems to meet the requirements of the organisation (IQPC n.d.).
There are several roles and responsibilities of the line manager in the company. One of them is planning and organising the work of the members at a detailed level and the aims and objectives of their work. Another role of the line manager is managing finances and resources to achieve goals of the organisation. Promoting equality and diversity is another responsibility of the line manager as the part of HRM process. As a line manager, I make sure that the members are treated fairly in terms of working conditions and salary. Finally, the line manager is responsible for leading and supervising employees by ensuring effective communication and good performance, training, managing poor performance, recruiting new staff, and enabling personal development by taking ownership of the own performance in terms of management and leadership (The University of Edinburg n.d.).
IKEA is the company that espouses simplicity, urgency and teamwork in building an organisational environment. It is the value-driven organisation with the core values of cost consciousness, dynamism and employee empowerment. IKEA increased employee training, where besides various web-based training activities, compensation and benefits; the members are encouraged to seek new opportunities and challenges. Every division of the company, including the Human Resources one, are under the direct supervision of the Chief Executive Officer (CEO); however, the employees are granted autonomy within the organisation that represents the value of empowerment (Singh 2012).
The organisational environment of IKEA influences HRM function to move in the direction of greater productivity. Motivation from management in terms of improved performance, bonuses and compensations enhances HRM practices. An employee at IKEA has an opportunity to apply for one year development program at the beginning of the career. For instance, the participants of this program can travel to two different countries for six months to work in different settings from the ones they are used to. Line management at IKEA takes direct part in designing the reward policy. The company also supports multicultural environment and has retail operations in 41 countries and led by managers of 14 different nationalities. IKEA that practices empowerment in the HRM process always keeps employees informed so that they would be the part of decision-making process. Besides, the organisation established the IKEA Corruption Prevention Policy that ensures fair working conditions and relationship with business partners. Every worker also receives an accident insurance covering medical needs for work-related accidents. Finally, IKEAs innovative HRM practices assisted in building strong corporate culture and allowed the company to take place in the list of 100 Best Companies to Work For (Singh 2012).
People working in HR are responsible for developing employee strategy. Corporate human resource managers possess governance role to ensure that the company upholds corporate values complying with legal and regulatory requirements to follow good practice HR. The legal issue that may arise is in terms of outsourcing, when performance is not regulated through the typical employment contract but through commercial and service level agreements. Another legal requirement is corporate social responsibility (CSR) in terms of work ethics and honest business practices. IKEA claims that profit is the virtue of their business, but not the only virtue. Ethics in HRM is valued in the company, as it is encouraged by the UK and EU legal and regulatory framework such as the European Court of Justice (Farnham 2010).
HRM and personnel management perform fairly similar functions, have practical differences between them. Line manager is the one, whose roles and responsibilities are directly linked to human resources. IKEAs organisational environment encourages favourable HR practices for the best employee performance.