Human Resource Management Report: HRM Practices in Aldi Supermarkets

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Aldi, a major supermarket chain. It begins with an introduction to HRM, emphasizing its role in workforce management, policy creation, and organizational structure. The report then delves into specific HRM functions, including workforce planning, types of employment markets, and the application of PESTLE analysis. It examines Aldi's strengths and weaknesses in recruitment, comparing internal and external approaches. The report also highlights the benefits of effective HRM practices, such as improved recruitment, development, and training. Furthermore, it discusses the importance of employee relations, the impact of employee legislation, and the application of HRM in Aldi's operational context. The report concludes with an overview of the key findings and recommendations for optimizing HRM strategies within Aldi's business model.

HUMAN RESOURCE
MANAGEMENT

INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Purpose and function of Human resource management....................................................................3
P2 Strength and weakness of Human Resource Management................................................................5
P3 Benefits of Human Resource Management practices.........................................................................7
P4 Effectiveness of Human Resource Management practices.................................................................8
TASK 2..........................................................................................................................................................9
P5 Importance of employee relation in Human Resource Management Decision making......................9
P6 Employee legislation and its impact.................................................................................................10
P7 Application of Human Resource Management work related in Aldi.................................................12
CONCLUSION.............................................................................................................................................13
REFERENCE................................................................................................................................................14

INTRODUCTION
Human Resource Management essential factor that comes under Human resource
departments. It is continuous and statement is process of recruiting, selecting, hiring and
deploying workforces according to the need and wants of organisation. They are also responsible
making policies and guidelines that help in managing workforce in an organisation as well as
priming structure for employer recruitment, performance appraisal, training and development in
a legal way for maintaining and generating an organisational structure (Cascio, 2012)..
Effectiveness of Human Resource Management practices in Aldi is also essential to maintain
their business activities across a bigger range of supermarket chain. This report truly focuses on
management practices that are performed in inside the organisation. Some of the important
factors that have been covered in this are functions, strength and weakness, personal relationship
and applications of Human Resource Management that will aid in understanding the standing of
organisation in business market.
TASK 1
P1 Purpose and function of Human resource management
Aldi is one of the renowned companies dealing in supermarket chain. The organisation
was establishes in 1913 and over the years they have been able to increase their business in over
20 countries with over more than 10,000 stores over the years. By effective human resource
practices they have been able to increase their dominance in all in external competitive business
environment (Armstrong, 2014).. For efficient business practices manager must consider some
management practices that help organisation to maintain their workforce and make further
planning for business activities. Some of the important human resource management practices
that are performed in organisation are as follows.
Workforce planning – Workforce planning is all about planning business activities that
has helped administration of organisation to make suitable planning to manage their
workforce .Aldi is having a large chain of retail market so for effectively manage their business
activity they have to plan better for workforce management in each of their organisation so that
they can be able to have their dominance in business market.
Type of employment market- it is one of the feature that has to be considered while
performing their business activity. It is being assured that having better sources and availability
of labour market they a company can choose best from the lot to perform their business activity.
It is seen that at the time great depression in 2008 the business activities were affected for many
organisation, that has ultimately affected labour market of all over UK as unemployment raised
with last of mines that is available to organisation in performing their business activity. One the
other hand UK government as planned to implement business Brexit and giving opportunity and
funding to many small scale organisation and UK based company to expand their business to

increase their economy. This will boost labour market as more people will be able to get more
employment from business activities of different company in all over UK.
PESTLE – It is an efficient tool that a Human Resource manager can apply to analyse
the external business environment of organisation. Factors that are considered in this are
political, economic, social, technological, legal and finally environmental factor that will aid
organisation to maintain their business activity in external environment of an organisation.
 Political – Under this factor functions and working and functioning of government
organisation are considered. Governments putting emphasis on Brexit and planning to
make efficient business policies that will help them to be economical stable in trading
practice of UK (Armstrong, 2014).
 Economy – Aldi is directly implemented in policies that are adopted by government,
having a stable economy will increase the efficiency of country that will ultimately
provide opportunity for different company to make profit in business market.
 Social factor - This factor involves people and society of that country. Apart from
collecting revenue an organisation must contribute in maintaining ethical value towards
the society. Aldi has placed product in their supermarket series according to need and
demands of customers.
 Technology – It current business markets it is one of the featured tools to generate for
organisation to maintain their business activities. There are lots of software’s available in
market that has helped organisation to maintain their retail business in a certain network
thus has also helped them to monitor their business that will aid in maintaining
transparency in business activity.
 Legal – This is a legal framework that contains some laws and regulations that helped in
proper functioning of organisation in business environment. These legal factors also aid
in resolving and minimising issues and disputed that may arise while functioning of
organisation. These are several laws that have been enacted for both the employers and
employees to fight for their legal values.
 Environment – The organisation must understand the competitive environment they are
working as that will help to analyses maintain business strategies to gain fruitful result
from external environment.
Payroll- human resource manager must formulate a defined framework to legally maintain
the payment and salaries of their employees that will further generate transparency in legalise
business of organisation.
Recruitment and selection – This is the first stem to recruit a defined workforce those who
are able to increase the business activities of organisation in future business market.
Apart from the entire above factor the organisation must also concentrate on understanding
the type of employees to perform their business activities in organisation

Best fit Best practice
 It provides a linkage between HR
manager, business policy and strategies
in organization.
 It is also responsible for dealing with
different organizational activities and
adopts the best policy to make the work
done.
 It generate positivity in work ethics of
organization
 This practice also aid in planning for
career development of employees by
infusing better skills and activities in
their work ethics.
P2 Strength and weakness of Human Resource Management
For analysing strength and weakness of organisation first it is equally important to
analyse their approach to perform business activities so that they can be able to increase their
efficiency in future run. While performing their recruitment and selection process for
organisation they have to understand the sources from where they can best employees so that
they can be able to increase their efficiency in recruitment of new employees for their
organisational activity. The employees can be recruited from internal and external business
organisation. These two factors have drastic effect on recruitment and selection process of
organisational activity.
Internal factors External factors
 Different policies and guidelines for
recruitment and selection
 Required number of employees in
organization
 Finance required for performing
recruitment and selection
 Future expansion and growth of
organisation.
 Legal factors and impact of politics
 Brand value of organization in different
geographical market
 Enhancements of knowledge and skill
of different workers.
Different approaches that Aldi perform in recruitment of workforce in there company.
Some of them are mentioned below.
In house recruitment – It is an approach through whichan employees post is upgraded or he
has been prpmoted to some higher responsibility and post (Armstrong, 2014).. This turns out to
be beneficial for organization as they are able to reduce the cost of doing recruitemt ans
selectios of comoany. This activity can be performed in two ways
Internal recruitment – It is simple promotion of desired candidate to higher post according
to their capability and efficiency. This is beneficial for company because they have been able to
assign desired candidate with minimal effort and there is also no need of investing on training
and development of that employees.

Employee referrals - It means the recruitment of new member for the organization is being
influenced by reference of employees (Chelladurai, 2017).. This sometimes turned out to be
effective tool because due to this company can be able to put right employee at right place.
Strength
 Better performance appraisal can be gives
 Time saving activity
 Loyalty can be expected from new employers
 Less investment in training and development of employees
Weakness
 It is expected that there can be misuse of power
 Changes of exploitation of employees may increase
 There can be frequent disputes between employees
Outsourcing- It is another approach through which an organization gives contract to some
other consultancy to hire employee for their organization on defined roles and designation. In
fact pace the business environment many companies want to grow in different business market
so this process of hiring new employees will aid organization to plan better strategies for growth
of their organisation in business environment.
Strength
 It helps in saving lots of time for organization to plan better in different business market.
 It helps in finding desired candidate that are perfectively fit for the desired role they will
perform in marketing activity.
 The Human Resource will have fewer burdens in performing their activities.
Weakness
 The main weak point is the organization is they are depeendent on other for getting
candidates for their business activities
 Manager will not have much of the time required to evaluate their employees.
 Changes of fraud in documentation can be observed because the candidates that are
coming in organization are coming through their party (Chelladurai, 2017)...
Employee agencies – There are several consultancies and agencies that are workibg in
providing training and provide them job facilityes in exchabge of some money.
Tradition approach- It is a long process that starts with advertisement and ends with
recruitment and selection panel.

Niche recruiter – this method is used to evaluate in positioning of employees at right time,
at right place.
Strength
 It provides better opportunities for candidate to express their thoughts and views.
 Training are provided to employee that will give opportunity to learn and enhance their
skills
 Managers can make better planning for organizational activity
Weakness
 It is a very time consuming process that can affect the functioning of organization.
 Money gets less attention in these types of recruitment and selection process
 Effectively of sustainability is very less
These above factors are used in Alde, hence they are having their own pros and con. The
retail company must efficiently plan business activities by taking in consideration their Human
Resource Practices inside organization.
P3 Benefits of Human Resource Management practices
Human resource practices are beneficial for organisational it has helped in maintaining
and regulating organisational culture of organisation (Chelladurai, 2017)... One of the main
features of success for organisation is to perform better recruitment and selection practices that
will aid organisation to maintain their business activity effectively in business market. Some of
the important benefits of organisation are as follows:
Recruitment and selection – It is one of the important roles a manager has to perform
for an organisation. The strength and competitiveness of any company depends on its workforce.
Skilled and efficient workforce will help growth if organisation in a faster way. Aldi is
performing their business where they have to compete with many bigger and smaller
supermarket chains so maintaining a better workforce will aid them to have an upper hand in
terms of earning revenue and maintain brand image in those business market.
Development and training – It is an aspect that helps in making the workforce more
productive. In this company has to give regular training to their employees to increase their skills
and knowledge so that they can plan and implement their ideas in their work. In current business
marker technology plays a vital role, it turned out to be a cheap medium to reach out to people
and perform business activities in easier way, so teaching required skills to employee will
ultimately help in competing in future business market.
Learning – Apart from training, discussing about innovative ideas will be helpful for an
organization. Manager in Aldi has organized many brainstorming where every employee gets an
idea to share their thoughts that can be used by organization to earn benefits in future market.

Giving opportunities to employees to express their thought will make them feel valued in
organization so that they can be eagerly contribute in learning new skill with dedication and
share their way of doing work, or approach of performing in business environment.
Performance measurement and monitoring – It is the responsibility HR manager to
give Appraisal to employees for their good work. The appraisal can be monitory and non-
monitory depending upon the manager. Appraising employee will prompt other workers to
increase potential of their work so that they can also be able to get reward in future.
Demand forecasting - A manager must possess certain skills and ability that will help
him to analyses demand in future. Aldi need to analysis demand of their products in new market.
As they are dealing with several products it is essential for them to analyse expected demand of
their products.
P4 Effectiveness of Human Resource Management practices
In the above section sum of the HRM practises that we have discuss are applied by Aldi
Ltd. They have used it in both internal and external organisational structure to gain competitive
advantage in business market among other computers the potential of sum of the factors are
discussed below –
Figure 1 HRM Practices
Training and development – It is most important part of organizational activity of Aldi
Ltd. They have work very seriously in increasing the skill of their employ so that they can be
able to have the upper hand over other computers in market this also helps them to establish
themselves in new geographical areas with the efficient and capable work force of their
organization (Jiang, 2012). Lidl is another biggest competitor Aldi Ltd having same approach
concentrating developing skill their employs

Learning – Aldi Ltd has design many seminar workshop to make their employs aware
about new technology in market to potent learning can be achieve by infusing positive culture in
their attitude and behavior of their employs (Pichler, 2012).. For ex. Aldi Ltd is having their
business in different geographical location it is certain that cross culture will come in to the act
that has to be adopted an efficient manner so that the organization can enhance coordination
between workers of different region that will ultimately help them to understand the need and
want of customer in different so that they can spend the sales value of their product market place
Performance management and appraisal – As we have seen that appraisal is the
biggest motivational factors for employs in organization but it can be done in an effectual way
the management have to adopt certain theory that will help them monitor performance than
employs in transparent manner appraisal also have in motivating employs to be goal oriented in
achieving target in desired time frame (Jiang, 2012). For example in Aldi Ltd performance of
each worker analyzed day to day bases for evaluating their performance in different retail store.
So we can conclude that all the three factors Aldi Ltd is working on can gives fruitful
result to their organization that will eventually help them to grow their business in future also
TASK 2
P5 Importance of employee relation in Human Resource Management Decision
making
Employees are the backbone of any organization and work hard for them so that they can
achieve set goals and objectives. They operate different activities and tasks and produce effective
results for company so that they can earn maximum profits and establish a strong position in
market. It is necessary for managers of the firm to take care of their employees and try to satisfy
them by providing bonuses and incentives when any employee performs well in their tasks. Aldi
is a well-established company and employs huge employee work force (Buller, 2012)... To
manage so many employees is really a tough task for managers, so they should be efficient
enough to manage employees (Jiang, 2012). Other responsibilities of a manager is to make good
and harmonious relationship with employees and also ensure that effective relations between
colleges. This help company to produce more positive results and encourage more involvement
by every employee towards. Managers of Aldi make teams of employees from different
specialization and combine their efforts towards accomplishment of business goals and vision.
Superiors of company formulate different strategies and implement effective HRM practices in
them to make it more productive and proficient. They also give equal opportunities to their
employees to participate in decision making so the employees also feel associated with company
and feel more satisfied. This leads to better collaboration ad involvement of both, managers and
employees and their sound relationships can make more profits to company. Some of the factors
which influence decision-making are as follows:

Employer relationships – This should be initiated in any organization to produce good
results. In order to achieve that, employer should make effective relationship with their
employees and involve them in decision making process so that they can get the idea about how
to make good decisions for company and for customers also (Renwick, 2013)..
Strategic for building- Managers should provide fair chances to every employee to share
their innovative and creative ideas with company and they should try to implement them in their
final strategies (Renwick, 2013).. This gives a feeling of satisfaction in employees and builds
trust towards company. They should ensure that employees have good relations with their
colleges and with superiors.
Improvement in employer relationship – Managers of Aldi finds out new ways to
communicate with their staff and organize different activities through which they build relations
with their members. Through activities, managers come to know about behavior of employees
and on other hand employees learn about their superiors. This type of events can be organized
when any new candidates joins the company (Renwick, 2013).. That is mainly known as
orientation program. Superiors should always try to make relations with their employees so that
they can work together as a team and produce extraordinary results.
Maintaining better relationship with employee- Aldi is successful in marinating
harmonious relations with their employees and other members (Kehoe, 2012 ).. They make
appropriate arrangements to satisfy their employees in every aspect as they consider their staff as
valuable assets. There is strong communication and bonding between them and work together to
maximize company’s profit and sales.
Above are some factors which really affects employee relationships and managers should
take a step ahead so that they can build good relations with their staff and earn maximum
revenues.
P6 Employee legislation and its impact
For better flowing of business in any geographical area it is important for government to make
some legal laws that will help in controlling unethical activities and minimise conflicts in
business and trading sector (Kehoe, 2012 ).. UK government has also elected certain laws that
help is proper functioning of internal and external business sector. Most of the law are that are
applicable in UK are made by European Union.
Some of the importance laws that are being follows in Aldi are as follows –
Working time derivatives – This law was made in 1998 that has enacted that an
employee should not work more than 48 hours in a week including this they will be eligible for
one compulsory holiday in a week and also organization has to planned leaves to their
employees.

Guardians and working parents rights – This law was made in 1992 with the help
European Union. This law was made to help working pregnant mother in organization
Parental leave rights - This law was welcomed by several single parents who have to
manage their life between children and work. Initially government is providing only 13 week
leaves that were aster some time extended to 18 weeks (Kehoe, 2012 ).. Later government bodies
feel that this law needs further modification so that parents can give more time to their children
in taking care.
Equal pay – This law was mentioned in Article 157 of UK law. It was later made legal in
the year 1970 (Buller, 2012).. The reason behind enacting this law because women are ill-treated
in workplace as they are getting less amount of money for equal work. For empowering women
to work freely and with respect this law guides to pay each individual equally in business
organization so that they can be able to increase their efficiency in business activities, Aldi gives
equal share of money to male and female in their organization.
Anti- discriminatory rights – this is the most important law in regard to the business
organization. The framework for making this law was done by United Kingdom and European
Union. Initial they have used disability discrimination Act under which the disable people will
get equal opportunity and treatment in business organization (Buller, 2012).. They have modified
this act in year 2000 and added sexual orientation in it and in year 2010 they have made Equality
right where each employee will he treated. This law can have an uncertain future as
implementation of Brexit in 2019 it is expected to go through further modification. Aldi has strict
guidelines and punishment against discrimination in their organization
TUPE protection – It means transfer of undertaking, this law was formed by government
of United Kingdom to protect employment in the organization but due to many loopholes
employees are taking unwanted advantages and performing unethical practices that are not
acceptable. Due to it’s ineffectively this practice is to be dropped down
Posted workers – This law was made in 1996.This states that employees must be posted
from one region to another region for short period of time to understand working culture and
learn different skills and can implement in their activities, but they must be given minimum
power or authority so they cannot misuse their powers and authority (Buller, 2012).. Aldi tends
to shift their employee from one retail to another so that they can understand work culture in that
retail store.
Health and safety rights – This was made in collaboration with European union and UK
that defies that for having a productive workforce it is equally important to maintain their health
so that they can work effectively.
The above discussed laws are scope of the important laws that are being adopted by Aldi
in their business practice that helps in free flowing of organizational culture.

P7 Application of Human Resource Management work related in Aldi
A portfolio of an intern applied for the post of assistant finance manager in organisation
is being displayed below
Job description - Job description can be in the form of resume, Curriculum Vitae, that
provides information about the skills, knowledge, capabilities, roles and responsibilities of
workforce (Pichler, 2012).. This job description helps in evaluating the employees and judges
their capabilities.
Job specification
Assistant finance manager
Aldi Ltd.
Academic Qualification
MBA degree with minimum 70% from recognized university in UK
Personal Attributes
Leadership quality and knowledge
Good financial knowledge
Energetic and enthusiastic
Good communication skills( British English)
Positive attitude and approach
Experience
Must have 3 year experience in finance field
Can be able to handle financial tools
Others
No criminal record
Ethical values
The above job description is provided by management of organisation that gives information
about basis skills and knowledge that is required in performing business activities in
organisation. For success of the business activity proper planning is required that includes date
and time, roles and responsibilities of members, criteria for evaluating employees, date of joining
and fee structure.