Page 6 - The Way the IKEA manages the Global Environment

against the planned or expected results; if it does not meet the objectives of the organization then the company

should drop the strategy and maintain only those which are working. In contrast, Armco Holding Corporation is

a local company in US which grows at a lower rate because it lacks clear mission and its human resource manager
has never been aggressive in handling his employees. (Jonsson, 2007)

The effective human resource manager is expected to design a mission statement which will gather the diverse
needs of all shareholders of the company. This means that the human resource managers should critically consider

on the means of satisfying all these parties without affecting the profitability of the organization. This is not a

simple task because any unsatisfied party may affect the performance of the company for example if employees
are not satisfied, say, lower salary may cause some of them to quit for other organizations. This will greatly affect

the company because it is quite expensive for the company to hire new employees and trained them. In addition,

it will cost high resource of training them, the time allocated for training them and the losses which may occur
when rotational training is adopted. The training method of “sitting next to Nelly” may affect the good character

of the new employee i.e. if the trainer has bad habits it may easily influences the new employee. To avoid all
these bad practices the human resource manager should not only satisfy employees but also entire stakeholders

of the company, this strategy has been used by IKEA Company whereby they maintained its employees by making
them feel recognized this has improved the performances of the company despite of high competition in the

market. In contrast, Dollar thrifty Automotive Group has failed to motivate employees and at the same time,

consumers are cutting their expenses while others are moving, all this is due to ineffectiveness of the human
resource manager. (Saini, 2013)

Rationality of the Human resource managers in their success story

The role of the HRM being huge and it comprises Leadership, organisational culture, structure and internal as

well as external environment.

Extensive leadership and motivation
Employee motivation is a very important aspect in management which the human resource manager needs to

show a lot of competency. In fact, the performances of the employees in the organization will determine the

performances of that organization. Employee motivation is likened to a marriage in a business where by several
factors are put together in order to create harmony in the organization. The person who needs to exercise a higher

degree of organizing is the human resource manager. Motivation refers to a set of reasons that determine one’s
behaviour towards a certain direction. Several theories which have been developed with time indicate that

motivation is associated with the basic need to get maximum pleasures and avoid pain and thus involve such

issues as eating and resting (Regnér, 2011).

5 | P a g e