Essential HRM Practices for ALDI's Decision Making

The provided report focuses on the crucial aspect of HRM practices within ALDI's organizational framework. It emphasizes the significance of HRM in facilitating informed decision-making processes, ensuring that personal and professional goals are achieved. The report is based on a comprehensive analysis of relevant literature from books and journals, including Armstrong (2014), Bloom and Van Reenen (2011), Boxall and Purcell (2011), Bratton and Gold (2012), Buller and McEvoy (2012), Chen et al. (2010), Fee (2014), Guest (2011), Kern (2014), Lengnick-Hall et al. (2011), Renwick et al. (2013), Stahl et al. (2010), Vörösmarty et al. (2010), Wright and McMahan (2011). The report's findings are expected to contribute meaningfully to business success, as it highlights the essential role of HRM practices in decision-making processes, taking into account various indispensable factors.

Human resource management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and functions of HRM..............................................................................................1
P2 Strength and weakness of various approaches to recruitment and selection.........................2
TASK 2............................................................................................................................................4
P3 Benefits of HRM practices for both employee and employer...............................................4
P4 Effectiveness of HRM practices in raising profit and productivity.......................................5
TASK 3............................................................................................................................................7
P5 Importance of employee relations which influence decision making process.......................7
P6 Key elements of employee legislation and its influence on decision making process..........7
TASK 4............................................................................................................................................8
P7 Application of HRM practices in work related context.........................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES ...............................................................................................................................9

INTRODUCTION
Human resource management is a term whose main focussed is to manage all the
employees existing in an organization by implementing various effective strategies. In fact
labours are one of a indispensable resource for every enterprises either small and large because
all the task and activities are managed or controlled by them only. ALDI is a international brand
popular for its different and innovative products across national borders by fulfilling the demand
of domestic as well as foreign consumers (Armstrong, 2014). This report is going to classified
into four parts to explain the useful role of a HR department as well as various HRM practices
whose main motive is to improve the learning skills of employees. Basically this report also
explains major purpose and functions of HRM as well as various indispensable approaches used
by company for recruiting and selecting deserving candidates. Apart from this, it also throw
some lights on essential laws implemented by governing bodies to protect the rights of
employees from exploitation. At last, this assignment express the vital role of HRM practices in
decision making process.

TASK 1
P1 Purpose and functions of HRM
Human resource management is something that increase the efficiency of the employees
of an organisation and make sure that from the recruitment to the retirement of the employees
human resource management is always concerned (Taylor, 2014).
Functions of HRM regarding ALDI company : Recruitment and Selection: ALDI is a company that makes grocery items and sells them
in the British supermarkets. Hence it is important that the company should recruit their
employees according to their needs and the working process and environment. HRM
ensures the selection and the recruitment of the employees effectively. For that it has to
forecast the needs or employment first. For example ALDI is going to introduce a new
plant for expanding their business then they need to hire new employees to fill the
vacancies of an enterprise like sales executive, customer services etc. Orientation: It simply means to help the new employees to be comfortable to the new job
and the working environment of the organisation. It includes segregation of the duties and
their functions to the new employees according to their interests.
 Maintenance of good working conditions: it is the duty of HRM to maintain the working
environment of the organization so that the employees get motivated to work efficiently.
It will help to the company to use their resources effectively (Bloom, 2011).
 Training and development: HRM is responsible for the training and the development of
the employees of the organisation. In ALDI company the new employees are trained for
their work so that they can give their best to the company and develop themselves and
company as well. After hiring of sales executive or employee for any other post now its
time for training sessions like marketing team is going to trained the sales person for
increasing the sales.
Purpose of HRM:1. Organizational purpose: HRM helps the organisation to recruit the right person to the
right job according to their interest so that they can do their work in most efficient
manner. It is the main purpose of any organisation to achieve best results from the limited
resources thus the HRM helps to achieve the organisational purposes. For example hiring
or all the responsibilities of personnel manger is not an easy task; therefore they need to

organize all the things in a proper manner by considering all the relevant facts and
figures.2. Functional purposes: HRM makes sure that the cost is never more than the benefits
arising out of any function so that would be beneficial to the organisation.3. Personal purposes: the competition is very high in the market and it is the responsibility
of HRM that they ensure the personal goals and objectives of the employees so that they
do not loose their interest from work and do not leave the organisation in influence of any
other organisations (Van Reenen, 2011).
4. Societal purposes: this is one of the important purposes of HRM to look towards the
society first. Organisation should not do any such process that would be harmful to the
society. It should pay attention to all the legal, environmental and the ethical issues and
resolve them accordingly.
P2 Strength and weakness of various approaches to recruitment and selection
ALDI is an international brand famous for its qualitative products by using various
impressive strategies for capturing the attention of number of individuals. HR department of a
company is liable to select or recruit deserving and skilled candidates. Therefore they are going
to adopt various effective approaches for selecting knowledgable individuals which are
mentioned below :-
External recruitment :- It is an ongoing process in which company recruits employee
from outside world. In fact according to this approach HR department need to consider external
options by conducting various advertisement programmes (Boxall, 2011). Additionally external
hiring means manager of ALDI needs to select candidates from out of the company which means
person don't have any link or connection with an enterprise.
Strength Weakness
Emergence of innovative and skilled labours. Due to high payment to the employers the
company has to bear a lot on the salary.
Maximum options while recruiting process. Has to maintain a HRM department that has to
be paid high.
Presence of skilled and experience persons. Company has a risk of disruption by the new
employee as they do not know about the

company working ethics and
environment.
It gives an opportunity to find newer kind of
talents.
It is risk that the employee hired may not be
worthy as thought at the time of
selection.
Internal recruitment:- Internal recruitments are those process in which employee is
hired for the particular post from the existing workers (Purcell, 2011). Therefore it saves the lot
of money of a company as the company do not have to spend a lot on the basic training of the
employee. This process is considered as a very short process because employees have a
connection with a company and fully updated about the norms, beliefs, policies, vaslaues, rules
and regulation of ALDI.
Strength
 ALDI do have to invest a lot on people to first let them understand the company
working conditions.
 It has less chance that company will be disrupted by the employee who do not know
the working condition of the company.
 Internal promotions motivate the employee to work more for the organisation.
Weakness
 Internal promotion of one employer may upset the others.
 There must be replacement to the employee who has been promoted.
THIRD PARTY:- According to this process in which the company gives the task of
searching of employee to some consultant company that provides them the employee as needed
by the company. Since these recruitment firms has a very large database from the people all
around the world so its easy for them to select the perfect candidate for the vacant post (Bratton,
2012). This approach consist of number of stages and several of number of people take part
while hiring employees because three parties are engaged in this which sometime creates lots of
confusion.
Strength

 Probability of selection of perfect candidate for that post increases.
 The company like ALDI has to pay less to the employee as these third party provides
cheaper employees.
Weakness
 These third party has less idea about the ethics of the ALDI company so at the time
of recruitment these thing are not kept in mind.
 Third party generally provides the employee who are less satisfied as the employee
recruited through internal and external recruitment process has a higher salary than
this recruitment process.
TASK 2
P3 Benefits of HRM practices for both employee and employer
Human resource management plays a very eminent role in the success of a company by
enhancing the knowledge of their employees and employer by implementing various plans and
policies (Gold, 2012). Workers are one of a indispensable resource for ALDI because all the
task and activities are performed by them only. Therefore a cited company provided various
benefits and facilities to them which are mentioned below :-
Benefits of employees :- Training and development :- According to this, an organization need to conduct various
improvement session to train their employees for particular job by appointing specialised
and skilled persons. Therefore HR department executed various useful plans and policies
for enhancing their knowledge and skills so that they can perform their task effectively.
Training sessions is conducted after hiring process so that employees getr trainmed as
per requirement of their job and they can easily understand their work like ALDI hired a
HR assistance for helping HR manager in hectic work. Learning programmes:- ALDI trying to implement programmes to groom their newly
appointed employees for fulfilling the demand of their job. Thus HR department is going
to hire various experienced person or counsellor for boosting morale of their employees
(Buller, 2012).

 Flexible hours:- For removing theirs stress they need to provide flexible hours in which
they can share their opinions with their friends and colleagues.
 Personality development:- Major benefits which is provided by company to their
employees is to improve their overall personality by conducting various enhancement
session. Main motive of ALDI is to design their workers according to requirement of
their job.
Benefits of employers:- Compensation and remuneration :- According to this, employers of a company must
acquire extra bonus due to overtime working at workplace by fulfilling the demands of
company. It means workers are able to earn maximum profit for example incentives ion
the basis of their talent and knowledge (McEvoy, 2012). Retirement benefits :- At the time of quitting an organization also offers various
retirement facilities for example pension schemes, provident funds, mortgage etc. Health and security :- Every individuals working in an organization is very much
worried for their health as well as as jobs security so HR department make sure that
permanent employers must have health facility and also their job must be secure by
providing confirmation letter.
 Medical facility:- Permanent employers also get medical facility like health card for free
services in government hospital at a any time.
Other facilities which is provided by company is mentioned here :-
 Conveyance
 Food and beverages.
 Comfortable surroundings.
P4 Effectiveness of HRM practices in raising profit and productivity
Productivity of an enterprises is increases by executing all the activities in a proper
manner with the help of accurate data and information. Basically HRM practices plays a very
eminent role in profit maximization of a company by uplifting overall personality of existing
employees (Chen, and et. al., 2010). In additional it has been understood that all the HRM
practices plays a very eminent role in achieving objectives of a company in a minimum time
period by satisfying their desired customers. Thus role of various HRM practices in raising profit
and productivity is mentioned below :-

 Job rotation :- According to this method, HR department of an organization is going to
change the job of their employees for gaining experiences from various other job role.
Therefore it is very indispensable to change the environment of a various labours in short
intervals for improving skills of a employees so that they can easily attain their
professional goals. For example there is a salesman who get a 2 year experience in
marketing field but interested in finance also then higher authority needs to provide
opportunity of experiencing financial sector also which is known as job rotation. Recruitment and selection:- One of a major role of a HR department is to recruit
deserving candidates on the basis of their talent and skills to fill the vacancy of a
company in a minimum duration. ALDI needs to implement recruitment and selection
process for hiring best alternatives so that they help enterprise in manufacturing
qualitative products to fulfil the demand of their customers in minimum time period. Performance appraisal :- It is also one of a useful method of motivating their employees
towards personal and professional goals by implementing various appreciation
programmes. It means HR department plays a very eminent role in profit maximization of
ALDI by enhancing learning skills of a existing employees. Basically performance
appraisal is a useful technique in motivating their workers (Fee, 2014). For example after
getting maximum turnover an organization needs to conduct appreciation sessions for
rewarding dedicated employees by offering compensation, remuneration, bonuses,
certificates, trophies etc. Reward and compensation :- HRM practices is very helpful in profit maximization
which act as a indispensable method of appreciation by offering rewards and
compensation. Counselling :- According to this HRM practices an organization is going to appoint
counsellor for increasing their morale so that they are able to resolve their problems as
well as learn how to deal with difficult circumstances. If employees of a company are
clear towards their goals then they can easily raise their company productivity by
introducing innovative products.
 Improvement programmes:- HRM practices also consist of various improvement
sessions to enhance the knowledge of their employees by encouraging them towards
attainment of goals in a minimum time period (Guest, 2011).

Apart from all these human resource practices ALDI wants to manage and control all the
necessary activities which is very much useful in raising productivity as well as profit of a
company in minimum duration . Along with this, they also believe that labours are mandatory
resource for every organization either small or large because all major activities are executed by
employees only. Therefore they are liable for increasing productivity by manufacturing creative
and innovative goods or services. Main motive of HRM practices is to distribute their qualitative
products across national boundaries by fulfilling demand of domestic as well as foreign
consumers.
TASK 3
P5 Importance of employee relations which influence decision making process
Positive relationship between employees is very much indispensable for success of
overall enterprise because it have a greater impact on a decision making process due to its roles
and responsibility towards attainment of goals and target (Kern, 2014). Employee relations is
very much important due to various reasons which are mentioned below :- Healthy relations :- Effective relationship in between different employees act as a useful
tool in creating a friendly relations in between workers which is very necessary for profit
maximization. In fact positive relations with higher authority remove confusion between
them because every employees also take part in a decision making process. Friendly environment :- According to this, it has been understood that stress-free
environment can easily boost up morale of employees by improving relations between
employees and colleagues. In fact surrounding of a company have a greater impact on
decision making process. Completion of work in a minimum duration :- Relationship in between labours is very
helpful by sharing work between employees for completing their task as soon as possible. Sharing of risk :- Friendly relations between employees is very useful in sharing the risk
of a company to achieve its target and objectives as soon as possible.
 Emergence of creative minds:- If there is a effective connection between labours then
existing employees bring innovative ideas and creative minds to attain its goals and
objectives (Lengnick and et. al ., 2011)

Apart from this it has been understood that positive connection between employees plays
a very eminent role in hedging their business risk. Thus they are liable for profit maximization
by minimizing their losses.
P6 Key elements of employee legislation and its influence on decision making process
Legal authority plays a very eminent role making rules and regulations which affect
overall decision making process of a company by attaining its goals and objectives in a minimum
time period. Legal bodies have implemented many more laws to protect the rights of employees
working in a company is mentioned below :- Equal wages act :- According to this act HR department of ALDI must follow this norm
in which it is very essential to pay equal wages for every employee on the basis of their
talent. Therefore it is very indispensable to create a equal opportunity for existing
workers. Sex discrimination act :- According to this law, an enterprise need to create an
environment free from any discrimination on the basis of gender. Main motive of this act
is to create a friendly surrounding (Renwick, 2013). Employee right act :- In this law government enforce that an organization need to
provide all the necessary rights of workers for example on time salary, medical facilities,
friendly environment, basic needs.
 Health and safety act:- According to this law an organization need to secure health of
their employees by implementing various safety programmes. Main advantages of this act
is to protect employees from sudden attack and dangerous diseases.
By concluding all this acts it has been understood that HR department of ALDI needs to
follow mandatory norms, rules and regulations for protecting employees. In fact main reason
behind enactment of these laws is to create a friendly environment .
TASK 4
P7 Application of HRM practices in work related context
HR department plays a very eminent role in attaining the goals of a company by
implementing various HRM practices related with work in different manner (Redman, 2013) .
While opening a new branch across national boundaries it is very essential to recruit and select

deserving and talented candidates to perform all the activities in a minimum time period.
Selecting of a skilled employees goes through appropriate process which are mentioned below :-
 Job specification :- First step is to specify the job according to demand of a company by
describing useful role of job for attainment of goals. For example ALDI is going to
appoint new employees for the post of sales executive then initially they have to analyse
the job which is going to offer in front of candidates In fact recruiter team has to
clarifying all the positive and negative of sales executive post.
 Job description :- Profile of a job on the basis of their talent, knowledge and skills to fill
the vacancy of a company. For instance; proper description of sales executive is
highlighted in this form which is explained below:-
1. Roles and duties of sales executive?
2. What work is going to perform by executer?
3. Expected salary?
4. Extra benefits?
5. Mention the Working hours?
 Selection :- According to this process , HR department of a company need to select best
alternatives from different options who have the ability to solve problems and obstacles
of an organization. After specifying job of the candidates its time for selecting best
alternative from large pool by considering specialization in marketing because profile is
related with merchandising department.
 Evaluation :- After selecting appropriate candidates they need to evaluate overall
recruitment process for selecting best individuals.
As per above above discussion it has been understood that HRM practices plays a very
eminent role in attaining its goals and objectives in given time frame (Maguire, 2013).
CONCLUSION
From the above report it has been concluded that HRM department plays a very eminent
role in attaining the goals and objectives of a company. Basically this report is all about eminent
role played by personnel managers in organizing and managing all the resources existing in an
organization. In fact it shows the HR role of one of international company named as a ALDI
which is famous for its creative ideas. Therefore this assignment highlighted various methods of
recruiting and selecting potential candidates at workplace to fill their vacant position. Main

motive of this report is to enhance the knowledge of employees by conducting various
improvement programmes so that they can achieve their personal as well as professional goals.
At last this report is all about essential role of HRM practices in decision making process by
considering various indispensable factors which affect the success of ALDI in different manner.

REFERENCES
Books and Journals
Armstrong, M and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bloom, N and Van Reenen, J., 2011. Human resource management and productivity. Handbook
of labor economics. 4. pp.1697-1767.
Boxall, P and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Buller, P.F and McEvoy, G.M., 2012. Strategy, human resource management and performance:
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Fee, M.C., 2014. Human resources management.
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Lengnick-Hall, and et. al ., 2011. Developing a capacity for organizational resilience through
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Renwick, D.W., Redman, T and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
Stahl, G.K., and et. al., 2010. Unraveling the effects of cultural diversity in teams: A meta-
analysis of research on multicultural work groups. Journal of international business
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Vörösmarty, C.J., and et. al., 2010. Global threats to human water security and river biodiversity.
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