Discuss the impact of information technology on HR management opportunities and challenges
Introduction
Technology has always been an integral part of our lives, whether it is an individual or business. It is one way we can communicate, share ideas, and engage in various activities. With these fast-changing technological advancements and trends, it has become extremely difficult for most business owners, managers, and employees to keep up with what is being done in the field of research and development. There are very few individuals who have not experienced some form of communication technology. This includes things like computers, phones, and the latest smartphones. These forms of technology have had a significant role even in organizations all over the world.
Technology has also shaped a major aspect of how business is conducted. More and more businesses are embracing different types of technologies to maintain their operations efficiently (Hagen & Steiner 2010). As a result, there are increased chances that firms will experience continuous improvements in terms of efficiency and effectiveness. To make these improvements, in the long run, businesses have embraced new technology which would give them a better opportunity. For example, one firm that was once known is now called array IKEA, Through such changes, organizations have found themselves with numerous benefits.
For instance, IKEA has used the latest technology to boost its sales and, eventually, help the company to grow at a high rate. This paper aims to discuss the impact of information technology on human resource management, especially how it impacts HRM strategies in the 21st century (Hagen & Steiner 2010). A case study of IKEA will be given, along with a brief description of its current success. Therefore, the focus of this report is to identify the opportunities for IKEA. Besides, it highlights the challenges that face IKEA as well as those that the current policies and procedures experience in providing support for the advancement of its HRM strategy. Lastly, the discussion gives a brief insight into my own opinion of the advantages and disadvantages of using technology in firms.
Discussion
IKEA has grown tremendously since its inception. Over the years, the firm has taken many steps to expand its operation across many countries around the globe. One major step that the firm took recently was launching its online store. This move prevented many people from accessing their products at ease. Similarly, the firm is working hard to improve its product delivery system for its customers through effective and efficient distribution channels (Hagen & Steiner 2010). At present, IKEA enjoys global recognition and popularity among its target audience. Its website provides real-time updates regarding the firm's funk developments, promotions, and marketing events. Additionally, the firm has a social media campaign, where users can get informed about any issues affecting the firm (Hagen & Steiner 2010).
IKEA is a multinational corporation that deals with home improvement and retail goods. Most of its core products include kitchen equipment, furniture, housewares, accessories, shoes, and other home appliances. In addition, other main products include sporting gear, decorations, and consumer electronics goods, like refrigerators and flat-screen TVs. Due to such a vast range of product offerings, IKEA has a large market share in almost every country around the world. Consequently, it is easy for the firm to enter new markets. Furthermore, it can easily reach out to several potential clients in no time. For instance, IKEA started offering low prices on a number of its items through its online stores (Hagen & Steiner 2010). Additionally, the firm has continued investing in its production facilities to enable it to produce more goods than it did before. Thus, the firm has improved significantly due to this trend. It currently operates in approximately 80 countries on 27 continents. From this analysis, it is clear to see that the rapid expansion of IKEA shows that the organization has embraced technology as far as increasing profitability, promoting sales, and improving customer satisfaction.
The use of technology by IKEA allows the firm to operate efficiently. Every employee has a workstation and computer to which they have access. It supports quick communication between members within a firm, which makes them work faster (Hagen & Steiner 2010). It helps in streamlining the processing of various tasks. However, it leads to reduced output. Nonetheless, it saves time. Hence, it improves the speed of operations. Moreover, the firm can be seen to reduce costs by cutting down on unnecessary processes or resources. IKEA utilizes the latest technology in delivering its goods, thus making it a leader in its industry (Hagen & Steiner 2010). In effect, the firm has remained a profitable business due to its ability.
IKEA uses modern technology such as Web 2.0. IKEA has shifted its primary objectives to include the needs of the people who need such goods. This has enabled the firm to continue growing and thriving due to its ability to meet the client's needs and requirements (Hagen & Steiner 2010). According to Bolton & Koppel (2009), this implies that IKEA has made available enough products to cater to various segments of consumers. This technology has continued to improve services, and it continues to serve its clients satisfactorily in terms of quality and prices. According to Hagen & Steiner (2010), such a shift in orientation has allowed IKEA to come up with products that satisfy their tastes and preferences. For instance, it recently launched two new models of air conditioners, namely, the Azana Series and the Zephyr Series (Hagen & Steiner 2010).
IKEA incorporates both traditional methods of distributing its merchandise. By doing this, the firm has remained profitable. IKEA has expanded its brand identity through the incorporation of appropriate social media tools. They have become one of the leading brands in the sector of furniture and homeward. Such strategies are essential, especially to ensure that each member of the public has access to the best products that can bring financial growth to the firm. Eventually, IKEA became a household brand name whose image persists after some, the firm>'s success can partly be attributed to its capacity to utilize contemporary technologies to support its growth strategy. When compared to a firm that embraced the same strategies in the past, it seems to have advanced. For instance, the firm has gone beyond just selling its products to promote itself within the competitive market (Hagen & Steiner 2010). Currently, the company has adopted new strategies such as taking part in international competitions, creating awareness of its brand image through the internet, and undertaking mergers and acquisitions with other companies such as Walmart and Tesco.
IKEA has established strong connections with its stakeholders. This is evident when it began operating independently of the government of Sweden in 1962. Later, there was intense competition among competitors and other firms. During this time, only three of them were in total control of more than 50% market share. Nevertheless, in 1980, it became a private entity. As a result, IKEA obtained the status of a public company in 1996. Since then, it has received an income tax exemption and has expanded its ownership by merging with others. For instance, it acquired Electrolux. Currently, IKEA holds a stake in other companies such as Tango, J&J Sports, and Lego Toys (Hagen & Steiner 2010).
However, IKEA faces stiff opposition in its attempts to expand its operations across the globe. For instance, it faced fierce resistance from China during the time of industrial restructuring. After it acquired Walmart Company, it lost the entire Chinese market, leaving it behind as the largest employer of foreign nationals (Hagen & Steiner 2010). Despite this setback due to globalization, IKEA managed to regain a considerable amount of market share within the US despite its poor performance in the Chinese region. This is further exemplified by the success that the firm achieved in expanding within Europe, North America, Asia, and South America. Therefore, IKEA remains a profitable business.
IKEA's, successful growth is also associated with the adoption of the right management practices, such as training. Training has always been viewed as a key driver in ensuring that a firm stays relevant to the dynamic business environment (Hill, Cooper, & Jones 2006). This is further enhanced by the concept of continual learning, which enables an individual to learn from mistakes and experiences. Thus, IKEA has established excellent systems for equipping its personnel with advanced skills that ensure they stay updated on current developments. Therefore, it does away with unnecessary and unproductive techniques that may hinder its progress in plans. Additionally, it promotes self-development by encouraging individuals to embrace innovative ideas and concepts. To achieve this, IKEA's management teams have made sure that all members have knowledge and skills in specific areas. The firm has also created good relationships with unions. For instance, unionization is another strategy that enhances mutual understanding of the existing labor relations within the industry (Hill, Cooper, & Jones 2006). This will allow the firm to effectively handle workers' grievances regarding the working conditions. Other measures that IKEA has adopted to manage its employees include giving them paid vacations, encouraging flexible working hours, enhancing teamwork between its employees, and focusing on the wellness of its employees (Hill, Cooper, & Jones 2006).
IKEA has created a culture of trust. It has earned the reputation of having honest employees by treating them fairly. The firm has incorporated trust strategies into most of its operations. To begin with, the firm has offered its staff an annual pay increase. Secondly, the firm has ensured that its employees contribute towards the attainment of corporate goals with fair remuneration. Thirdly, the company has provided compensation
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