HRM Strategies & Organizational Outcomes

This assignment delves into the strategic management of human resources (HR) and its influence on organizational outcomes. It combines insights from academics such as Boxall, Purcell, Guest, Jiang et al., Wright, Purce, Bloom & Van Reenen, among others. Students are expected to analyze HRM strategies, their impact on performance, employee engagement, and customer satisfaction in various contexts including service industries like tourism and hospitality.

HUMAN RESOURCE

Table of Contents
Introduction.........................................................................................................................................3
Task 1...................................................................................................................................................3
P1 Purpose and function of human resource at ALDI........................................................................3
P2 Strength and Weakness of different approaches relating to recruitment and selection.................4
Task 2...................................................................................................................................................5
P3 Benefit of different HRM practices..............................................................................................5
P4 HRM practices in order to achieving profitability in the organization..........................................6
Task 3...................................................................................................................................................8
P5 Importance of employee relation and its impact...........................................................................8
P6 Key legislation in employment and its impact on decision making process.................................8
Task 4.................................................................................................................................................10
P7 Application of HRM in work related issue.................................................................................10
Conclusion..........................................................................................................................................11
REFERENCES..................................................................................................................................12

Introduction
Human resource is the valuable asset for every business organization because it helps in
attaining organizational goals. Therefore, each company try to motivate its staff and provide
all essential facilities ton them. in order to attain all these objectives a business unit needs an
effective HRM practices. There is various function of HR department such as recruitment and
selection, HR planning, employee’s relation, performance evaluation etc. The present report
based on ALDI which is a retail corporation and conduct its business in United Kingdom. the
firm is having large number of skilled workforce which meets their requirement in an
effective manner (Hendry, 2012.). the main purpose of this report is to identify various HR
issue and maintain harmonious relationship with them.
Task 1
P1 Purpose and function of human resource at ALDI
Workforce planning is related to identify human resource need in the organization in advance
in order to meet its future need. The main motive of such HR practices to attain profit and
provide long tern success in an effective manner. In the context of ALDI, required to cope up
with change and recruit skilled and talented staff, so that they can provide competitive
advantage in the market as compare to its rival companies. Today, HR planning is a part of
strategic level where top management try to plan their strategies accordingly.
Purpose: The key purpose of HRM is to create, utilize and motivate staff in order to
achieving organizational goals. There are various tools and techniques used by HR
department to motivate and develop confidence level which enhanced its performance and
productivity (Armstrong and Taylor, 2014). Apart from that, HRM also helps in building
employee-employer relation which significant for a company to maintain their performance.
There are following function of HRM in the context of ALDI is given below:
Managerial function: HRM is the integral part of organizational management, therefore it
performs the basic managerial function such as planning, organizing, directing, and
controlling. Planning is related with the HR planning for their company to meet its future
skills and capabilities. Organizing refers to develop HR plan and procedures within the firm
in an effective manner. the third aspect is related to direction which provide direction and
motivate staff to attain its short and long term targets.

Operational function: This is another function where HR department is concerned with
employment, staffing, compensation, performance management, motivation etc. In this
function the HR manager is required to communicate with functional department and recruit
potential candidates (Boxall and Purcell, 2011). Development function refers to provide
training and development tom its new staff so that they can perform their task in an effective
manner.
Advisory function: It is another function where HR department to provide advice to top
management and functional department head like finance, marketing, sales, customer service
department on the HR related issue.
P2 Strength and Weakness of different approaches relating to recruitment and selection
Recruitment and selection is one of the significant function which is related to identify skilled
and talented workforce for their company. It is essential for a multinational corporation is to
forecast its future workforce in advance and fill the vacant position due to retirement,
promotion, termination of the staff. It is one of the complex and complicated task required
various data and information in order to meet its long term goals and objectives (Daley,
2012). There are two types of recruitment internal and external and each approach is having
their own advantages and disadvantages. These are:
Internal recruitment: This is one of the most usable tool in order to fill the vacant position
within the organization. In the approach, Hr department required that to determine the staff
requirement and switch the access HR vertical or horizontal approach such as transfer,
promotion, demotion etc. ALDI having large number of employees needs to switch one store
to another and increase its personal and professional skills in an effective manner. the
strength and weakness of this approach is mentioned below:
Strength Weakness
Skilled and qualifies employees easily
available within the organization.
Employees familiar with firm’s policies,
rules and regulation which is to essential.
This is one of the cost saving approach
which save time and money.
Create conflict between employees which is
not for the company.
Increase lack of innovation and new skills in
the firm.
Need more employees for vacant position
which increase operational cost.
External recruitment: This is another method of recruitment and selection where an
organization identify new staff outside and with the help of external parties. It is one of the

best approach is to hire potential staff for the company which meets its future requirement.
There following strength and weakness are given below:
Strength Weakness
It helps to get new employees for the
company which provide long term success.
It is benefited for the organization is to get
skilled and innovative employees for the
future.
It required more funds due to recruitment
and selection and also provide new staff
training season to them.
This is long process which consume more
time and resources.
M1
Human resource function which fulfil the needs of the company and provide and
contain skilled and talents with the firm in an effective manner. it also helps to motivate
employees which enhanced productivity and performance (Guest, 2011). HR department also
maintain harmonious relationship with staff.
M2
One recruitment and selection is completed, HR department is required to evaluate overall
process in order to improve for the future. This is the responsibility of HR manager is to
conduct feedback among employees relating various issue and provide job satisfaction to
them.
D1
As per the discussed two recruitment and selection tool are very significant for the company.
ALDI can use both approaches according to its need which leads to increase productivity and
profitability. Business environment is too complex which required innovative and skills in
order to meet future changes. With the help of recruitment and selection tools effectively
provide competitive advantage over its rival companies.
Task 2
P3 Benefit of different HRM practices
The main motive of HRM is to manage employees and its relation with organization by the
using of various Hr practices. Today, the role of HR department is significant in order to gain
strategic gain in the market. Therefore, this is the responsibility of HR manager is to design
and develop effective and appropriate HR policies and rules (Jiang and et. al., 2012). This

department is responsible to protect right of employees and company’s target and try to
maintain sound relationship with them.
Benefit for employees
Provide training and development: This is one of the key function where HR department is
providing training and development to its staff which helps to increase skills and
performance. it enhanced personal and professional development of the company’s staff
which provide long term success.
Conflict resolution: It is natural in the company to arises any issue between organization and
employees. HR department is liable to solve such issue at initial level and try to maintain
healthy atmosphere in the organization which is good form the company (MeredithBelbin,
2011).
Health and safety: It is essential for a company to provide secure and safety environment
within the organization. This is the responsibility of HR manager is to make security related
policies which minimise the accidental rate and improve employee’s confidence level.
Benefit for Employer:
Employee relation: It is essential for a company is to maintain employer-employee relation
which required for success. HR department communicate with staff and solve their queries in
an effective manner to the betterment of the firm.
Performance evaluation: This is another role of HR department which is related with the
performance evaluation on regular basis. There are various methods like 360-degree
feedback, ranked method, grading system, forced distribution method etc (Huselid and
Becker, 2011).
Retain talented employees: Skilled and talented staff is always valuable asset for a company.
therefore, each and every company is try to retain such staff with the organization in order to
provide job and financial satisfaction.
P4 HRM practices in order to achieving profitability in the organization
Human resource is one of the significant aspects for a business organization just like other
department finance, production, sales, marketing etc. without an effective human resource
management a firm cannot attain organizational goals. There is various essential element in
the Hr which help to increase productivity and performance.

Organizational effectiveness: HRM system of a business organization having a significant
impact on employees and company’s effectiveness (Wright and McMahan, 2011). A system
and effective HRM practices helps to maintain good relation with workforce. It also focused
on strategic objectives by providing high quality of goods and services through its staff. For
this, they can conduct training program on regular basis which enhanced skills, knowledge,
capabilities and productivity.
Employment commitment: HRM practices also focused employee commitment by provide
personal and professional development, offer high level of promotion, effective compensation
etc. For example, ALDI can provide long term employee participation program where they
can purchase company’s share. It increases confidence level, enhancing employee’s
performance which leads to increase profitability which is the common goals for each and
every business unit. Apart from that, they can also participate in to decision making process
on various issues provide betterment to the corporation (Purce, 2014).
Customer service: It is essential for a business entity is to provide high quality of customer
services to its client. Therefore, the cited firm is using various tools and techniques which
provide excellent services. For this, they can also provide training to its workforce which
minimise various issues like work performance, customer engagement, supportive and
collaborative efforts between employees.
In addition, ALDI wants to expand its business at international level which required more
staff. In such condition, HR department required that to change its policies according to the
host country environment (Kusluvan and et. al., 2010). Because, every nation is having
different work culture needs to be implemented in an effective manner.
M3
There are various schemes and approaches in order to provide to its staff and organization for
satisfying their needs and desire in an effective manner. It involves performance related
benefits, bonus, remuneration, promotion scheme, safety and security regulations. With the
help of all these program an employee can contribute with dedication and try to improve its
performance.
D2
According to HR experts, personal management are used for increase business productivity
and maximise profit and revenue by using various approaches. For this, they having plans and

strategies at the top level supported by functional level and implemented by HR department
effectively. On the other hand, they also required to conduct market research and analyses
current changes in HR and implement in the organization.
Task 3
P5 Importance of employee relation and its impact
It is important for a company is to maintain a sound relation with their employee’s foe
organizational success. For a harmonious relationship need high quality of productivity and
personal and professional satisfaction. It helps in to avoiding conflict and other issue which is
better for a company (Kehoe and Wright, 2013). it is depending on safe and secure work
environment, employee’s commitment and involvement, benefits of staff motivation,
appropriate communication system. There are following significance of a good employee
relation is given below:
When organization is providing a healthy and safety working atmosphere to their employees.
It helps in reducing accident rate, increase confidence level which leads to increaser their
productivity.
There are various personal and professional expectation such as career goals, personal self-
respect etc. For this, they provide periodic training, conference and other aspects of
development.
Financial motivation is one of the key factor which motivate employees at the high level.
Therefore, it is the responsibility of HR department is to design effective pay system within
the organization. They also focused on other aspects of employee benefits which create staff
loyalty at the extent level.
With the help of harmonious relation between employees and employer also help in reducing
absents and worker turnover. Ultimately, it minimises recruitment and selection cost, training
and development cost which leads to increase firm’s revenue.
P6 Key legislation in employment and its impact on decision making process
There are various laws and legislation related to human resource and its having a large impact
on decision making. Each and every state is having their own rules which needs to be
implemented by a company (Albrech, 2011). United Kingdom is the part of EU which have

various laws. These all regulation should be followed by member state without discussion
with the home government. In the context of ALDI which operate their business in UK must
implement all these rules in an effective manner. these are:
Equality pay act 1970: This is one of the major legislation where each and every company
required that to provide equal pay to its staff. The business unit make sure provide such pay
without any discrimination on the basis of cast, creed, religion, gender, colour, language etc.
ALDI is a multinational corporation needs to be followed these rules which create an ideal
image in the market.
Sex discrimination act: This is another laws which main aim is to eliminating inequality
between male and female. the idea behind of this act is to treat their employees equally which
is too important because they contribute similar for the company. if a firm cannot follow
these laws they have to pay penalty and legal proceedings by the government authorities.
Minimum wage act: This is another significant act where a business entity required to provide
a minimum wage which was set by EU parliament (Bloom and Van Reenen, 2011). Each
state is having their own wage structure according to its requirement. The wage structure of
UK is given below:
Age Wage rate per hour (£)
Aged over 25 years 7.50
Aged under 20 years 7.05
Aged between 18-20 years 5.60
Disability discrimination act: This legislation is related with the disable people and protect
their rights in to the corporate level. There are various facilities must be provided by the
company to such individual and treat them equally.
Thus, it is the responsibility of ALDI to adopt these laws in to organization which increase its
image in the market. Apart from that, the cited firm required to make an authority which
concentrate all these laws and try to implement in an effective manner which enhanced
employee’s performance at the next level.
M4
Mutual understanding in between staff and organization is very significant to develop a
healthy working environment which helps in attaining firm’s goals and targets in an effective
manner. on the other hand, these act also help to protect employees right from any kind of
exploitation (Bloom and Van Reenen, 2011).

D3
According to HR experts the role of employee relation in to decision making having a large
impact. Therefore, they try to use various approaches and minimise communication gap
between top management and staff which ultimately support decision making process in an
effective manner.
Task 4
P7 Application of HRM in work related issue
The concept of HRM having a great significant in the work related issues and need to be
implemented at the workplace. There are following major issue at the organizational context
is given below:
Selection and promotion process: In this process HR manager is required to identify vacant
position and evaluate in an effective manner. The next stage is related to select an appropriate
tool for recruitment and make a team which design interview question. After this, HR
department required to scrutinize potential applicant and selected among them (CHUANG
and Liao, 2010). the next stage is related with the interview and provide training to them.
Reward system: It plays a significant role in every business organisation. Generally,
employee work hard only for getting high remuneration. It is designed to enhance current
performance of employees If company will provide good reward system then worker get
influence and contribute their effort toward achieving organisational goals. Healthy
remuneration helps in employee motivation and retention. If individuals get higher reward,
then they motivate their-self to achieve organisational goals and objectives. Wages system
help organisation by increasing prohibitorily productivity, profit maximisation, cost
minimisation, growth and development of company. Incentives are the main facto which
influence eagerness of individuals within work place,
Performance appraisal: If a company want to increase its performance then firstly it should
improve performance of its employees because human resources are the main factor of
organisational growth and development. Efficiency and effectiveness of employees can have
improved by providing him various training and development programs. There are many
techniques of measuring employee performance such as pair comparison, graphical rating
method, ranking technique, 360-degree appraisal, essay method etc. these techniques of
performance appraisal help company in improving performance of its existing workers. With

the help of performance measurement different characteristics, skills and traits of a person
can be evaluated within organisation.
M5
HRM practices is played a significant role in attaining organization target where they can
arrange resources in in order to meet its requirement in an effective manner. The main role of
HR practices is to utilize their resources so that they can provide high quality services to its
customers.
Conclusion
As per the above mentioned report it has been concluded that the role of HRM in business is
too significant. The report discussed about the various issue in personal management and
different function of HRM which helps to meet it long term goals. An effective workforce
planning helps to meet its requirement and provide high quality and skilled individual for the
company. the report also explained about various methods of recruitment internal and
external. The importance of employee relation also discussed and its role in organizational
success. At the end, it has been concluded about various laws and legislation of HR and its
impact on decision making.

REFERENCES
Books and Journals
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Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave
Macmillan.
Daley, D.M., 2012. Strategic human resource management. Public Personnel Management.
pp.120-125.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal, 21(1) .pp.3-13.
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outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal, 55(6) .pp.1264-1294.
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource
Management International Digest, 19(3).
Huselid, M.A. and Becker, B.E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into
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.pp.93-104.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
CHUANG, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service
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Personnel Psychology, 63(1) .pp.153-196.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity.
Handbook of labor economics, 4 .pp.1697-1767.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity.
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Albrech, S.L., 2011. Handbook of employee engagement: Perspectives, issues, research and
practice. Human Resource Management International Digest,19(7).
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management,
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Kusluvan, S., and et. al., 2010. The human dimension: A review of human resources
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