HRM Practices and Productivity

The provided assignment is related to Human Resource Management (HRM) and focuses on understanding how HRM practices influence productivity in organizations. The content includes references from academic journals, books, and online resources that discuss the importance of HRM functions such as performance management, employee engagement, and strategic human resource management in achieving better business outcomes. It is a study guide for students looking to understand HRM's impact on organizational performance.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Main purpose and functions of HRM...............................................................................1
P2. Weaknesses and strengths of different approaches of recruitment and selection............2
TASK 2............................................................................................................................................4
P3. Benefits to employers and employees from the practices of HRM..................................4
P4. Effectiveness of HRM practices in raising profits and productivity of organisation.......5
TASK 3............................................................................................................................................6
P5. Importance of employee relations to influence HRM decision making...........................6
P6. Key legislation of employment and its impact on HRM decision making......................7
TASK 4............................................................................................................................................8
P7. Work related practices of HRM in organisation..............................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10
.......................................................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
Human resource management is a process designed to manage the workers and their
activities at workplace. Managers of human resource department are responsible for various
functions including recruitment, selection, performance appraisal as well as training and
development of employees (Armstrong and Taylor, 2014). This function mainly focuses on
policies and systems of organisation for managing people. Main purpose of HRM is to maximise
the productivity of workers and enhance overall performance of business. Aldi is one of the
leading retail companies having more than 10000 stores in more than 18 countries that is selected
in the present report. Company generates large amount of profit every year. Present report is
based on management of workers in the firm. Main purpose of HRM is to guide employees in a
direction so that their performance can be maximised. Various functions of human resource
management are mentioned under this report. Different approaches of recruitment and selection
are also given in this essay. Along with this, employment legislations which affect the decisions
of enterprises are also described.
TASK 1
P1. Main purpose and functions of HRM
Human resource management is one of the main and important functions of enterprise. It
helps in maximising the performance of employees. To enhance workers’ productivity, managers
of Aldi can use this approach (Bloom and Van Reenen, 2011). This will help them in using all
resources at an optimum level and cost of doing operations will decrease automatically. One of
the main purposes of HRM is to hire right quality people for right job so that enterprise can
achieve its set goals and objectives. It helps the human resource manager in evaluating skills of
candidates and hiring right and capable people for the particular vacant job. Manager of Aldi can
be benefited from various advantages by applying this at their workplace.
Functions of HRM: Recruitment: It is the main function of HRM to fill vacancies by advertising about jobs,
collecting applicants and conducting interview to select the capable candidate. Concept of
human resource management helps managers to recruit the right candidate by wasting
minimum time and resources (Functions of HRM, 2017). It helps managers by describing
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the roles and responsibilities related with each job which helps manager in evaluating
skills of candidates on that basis. Employee relations: In today's competitive work environment, it is an important function
of every employer to maintain healthy relations with workers. Practices of HRM help in
this by evaluating job satisfaction, employee’s involvement and conflict resolving
policies of enterprise (Boxall and Purcell, 2011). Human resource management helps in
conducting union campaigns, negotiation and doing bargaining and interpretations. Compensation and benefits: Making and managing the compensation packages of
workers is another important function of HRM. It helps in making positive work
environment by paying for the performance to workers. Human resource practices
encourage ethical work related practices and eliminate favouritism from the workplace.
Compensation is one of the main issues which affect performance of employees. So,
managers of Aldi should try to make and encourage a transparent pay system so that
employee’s satisfaction can be achieved. Training and development: Identifying training and development need of subordinates
and providing them same is one of the main functions of HRM. It helps in evaluating the
performance of workers and providing training so that their skills can be enhanced. With
the help of training and development managers of ALDI can increase the skills of
employees and can get number of advantages.
 Compliance: Taking decisions and providing compensation to workers according to the
legislation is called compliance. In absence of this, complaints of employees arise and
workplace environment becomes negative. HRM practices help in taking decisions with
set rules and legislations. Managers of ALDI can increase the productivity of employees
with the help of this.
All these are the main functions of HRM in any enterprise. Managers of Aldi need to give
proper consideration on these so that employee's satisfaction can be achieved and objectives can
be achieved on time.
P2. Weaknesses and strengths of different approaches of recruitment and selection
Recruitment is a process of attracting large number of applicants and then selecting the
best one for filling vacancy in enterprise (CHUANG and Liao, 2010). For hiring candidates,
managers of Aldi can use any of the two approaches of recruitment which are stated as below:
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1. Internal source of recruitment: Under this approach, hiring managers evaluate the skills
of workers already existing in organisation. This includes promotion and transfer. When a
higher post is to be filled than manager evaluates the qualities of employees having lower
position.
Strengths
When workers get promotion than this increases their morale and motivate them to
perform the best. Under this approach of recruitment, decisions are taken at a fast speed without
consuming much time. It promotes loyalty of workers and helps the manager in taking accurate
decision. One of the main benefits of this approach is that it ensures development of employees
by promoting them on one higher level.
Weaknesses
As all employees are chosen from within the enterprise, this is the reason; this
discourages innovative and capable people from outside the organisation (Crook and et. al.,
2011). This approach fail to generate effective results all the time
2. External source of recruitment: Vacancies are filled from outside the enterprise under
this approach. Under this, manager uses various sources for inviting the candidates
including advertisement on television, radio, newspaper and many more.
Strengths
Main strength of using this method is that it gives a choice to manager to choose the best
one from large number of applicants. It brings new and innovative idea at the workplace. As new
candidates are more skilled and capable so, this helps the enterprise in achieving its objectives
more easily.
Weaknesses
Use of plenty funds and time are one of the biggest weaknesses of this approach of
recruitment. This demotivates the existing workers of enterprise and creates conflicts among new
and old employees.
By evaluating all strengths and weaknesses of all approaches of recruitment, Aldi can use
both approaches according to the situation to get maximum results.
Selection is a process of choosing the best and quality candidates from all applicants. For
this, job specification and description help manager in choosing the best one.
Approaches of selection
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 Systematic Approach: This is one of the most popular approaches of selection (Daley,
2012). Under this, managers follow a systematic process to select a deserving candidate
and it helps in eliminating biasness of manager during the process.
 Unsystematic approach: Under this method, manager selects one resume from all
applicants and then compares it with the skills required to perform vacant job.
Managers of Aldi can use systematic approach to make the process of selection more
effective.
TASK 2
P3. Benefits to employers and employees from the practices of HRM
Recruitment, selection and performance management of employees; all these functions
come under the practices of HRM (Gruman and Saks, 2011). All these help Aldi to utilise its
resources at an optimum level and in achieving efficiency by decreasing the overall cost of
production. Practice of human resource management provides various benefits to both employees
and employers. To provide various benefits to its workers, manager of Aldi needs to apply the
same concept. By applying this concept, employers of Aldi can be benefited from the following
points: Help in making planned decision: Activities of managing workers and their actions in
organisation provide useful and important information to the top managers (Human
resource management, 2016). This helps the management in deciding and planning future
activities of business. Planned future actions help in decreasing the cost of operations and
bringing coordination among all activities of enterprise. Managers of Aldi need to give
consideration on this factor to get maximum profit from HRM practices. Creates flexible work environment: HRM practice analyses and interprets the business
environment which helps managers in changing policies and processes of doing work at a
fast speed (Huselid and Becker, 2011). It makes the business capable to adapt changes at
a fast speed. With the help of HRM concept manager of ALDI can make fast declension
whenever a big change take place. Create and promote positive environment at workplace: Practices of HRM encourage
ethical work practices which make work environment more positive and transparent. All
this increase overall performance of organisation. From the concept of HRM managers
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can create and offer a positive work environment to employees which will enhance their
satisfaction and productivity.
 Creates healthy and good working environment: Ethical practices are encouraged
through the concept of HRM all this helps managers in satisfying employee’s needs and
wants and this influences workers to improve their performance (Guest, 2011). All these
creates a healthy and positive working environment in the firm.\
Benefits to employees: Identifying training need of workers: Performance evaluation of workers is one of the
main functions of HRM. This helps the manager in identifying training needs of staff
members and enhance their skills by conducting training programmes for them. All this
helps the business enterprise in getting competitive advantage in market. With the help of
this employees of ALDI can increase the level of their knowledge and can apply the same
at workplace to find better solution. Motivate workers and their productivity: Ethical and healthy HRM practices increase
satisfaction level of employees and motivate or influence worker's productivity in a
positive manner. By motivating its workers, Aldi can enhance the quality of its products
and services.
 Develop skills of workers: Workers are motivated and training is provided in order to
enhance their skills. It helps the business entity in utilising its resources at an optimum
level. Managers of Aldi need to apply this concept in an effective way to get these
benefits.
P4. Effectiveness of HRM practices in raising profits and productivity of organisation
Practices of HRM play an important role in bringing consistency and create coordination
among all activities of the business department. To measure effectiveness of this programme in
any company, its profits and productivity can be measured. In absence of these practices, no
enterprise can achieve its objectives and efficiency. For the fulfilment of business objectives, it is
necessary for the manager of Aldi to apply this concept in an effective way so that efficiency can
be achieved in business operations and at the same time, enterprise can get competitive
advantage by delivering high quality products to its customers at low price.
Human resource management helps in deciding the future activities of business enterprise
and reduce complexities and uncertainties of working environment along with creating a positive
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and healthy work environment (Jiang and et. al., 2012). All this helps business organisation in
identifying its strengths and use it in an effective way to get vagarious advantage in the market.
Application of HRM practices helps in building effective strategies for accomplishing the
mission and objectives. This provides assistance to manager during the process of recruitment
and selection that helps in recruiting skilled candidates for enterprise and in achieving objectives
and goals of entity. It helps in increasing the profits and productivity of enterprise. With the help
of different HRM practices such as develop training and development program for employees
managers can help workers in find better solutions to problem and this will enhance the
productivity of company. Further with the application of fair compensation packages for workers
satisfaction and morale of employees can be enhanced which help in increase both productivity
and profits of company.
TASK 3
P5. Importance of employee relations to influence HRM decision making
Workers are the main pillars of success for every activity of enterprise. So, it is not the
only responsibility of a manager to maintain healthy working relations among employees but
necessary for management to provide a positive environment at workplace (Kehoe and Wright,
2013). To maintain healthy working relations with workers, managers of Aldi need to take care
of the following points:
 Employees should be compensated in a fair manner.
 Healthy and good working conditions should be provided to workers.
 Subordinates should be encouraged to take part in decision making process.
 It is the responsibility of top manager to treat employees in a fair and friendly manner.
 Feedback of workers should be encouraged that will help the manager in knowing about
issues faced by staff members.
 Training and other activities should take place on regular basis so that skills and
capabilities of subordinates can be increased on regular basis.
 Job rotation can be done at workplace of Aldi that will enhance the skills of workers and
make business environment more challenging and interesting.
 Effective and strong communication should take place among all workers so that
effectiveness of commercial operations can be improved.
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 Appreciation and reward should be given to employees who will perform well as this will
encourage other workers also.
By creating all these conditions, managers of Aldi can make and maintain healthy
working relations with employees which is necessary for every organisation to be successful. All
this helps the enterprise in getting commitment of workers and increase their loyalty towards
entity. Good relations decrease the rate of employee turnover and increase goodwill of firm in
front of public.
Employees are the main and important assets of every firm (Lengnick-Hall, Beck and
Lengnick-Hall, 2011). It is one of the major responsibilities of manager to identify their needs
and wants and satisfy them. A satisfied employee increases firm’s productivity by improving its
performance and helping in achieving its objectives in an easy way. So, managers of Aldi need to
do the same for maintaining healthy working relations with employees.
By create a good and positive relation with employees managers of ALDI can influence
them to contribute more in success of company and can take effective decisions.
P6. Key legislation of employment and its impact on HRM decision making
Employment legislation is a mix of all rules and laws related with safeguarding the
interests of employees at workplace. It defines the roles and responsibilities of both employer
and employees towards each other. This includes the following: Employment rights act: It is one of the main and important acts included in employment
legislations (Ployhart and Moliterno, 2011). This act describes the basic rights and duties
of workers at workplace. It states that healthy and safe working conditions should be
provided to subordinates during work. Along with this, each and every individual should
be benefited from minimum wage and discrimination should not be exercised by the
employer. By applying this legislation, managers of Aldi can create good working
conditions. Equal pay act: This act of employment legislation says that two workers who are doing
similar work should be benefited with the same wage. This helps the employer in
satisfying employees and themselves as well. All this creates a positive and healthy
working environment at workplace.
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 Discrimination act: According to this act, staff members should not be discriminated on
the basis of gender, culture, age and on any other basis. Equal opportunities should be
provided to workers on the ground of promotions, transfer and on any other ground.
Discrimination create a negative working environment and give rise to subordination,
decrease morale and productivity of workers. Minimum pay act: This act decides a minimum amount which should be given by
employer to each employee (Purce, 2014). Amount is set by government according to the
inflation rate that exists in the market. Minimum wage helps workers in fulfilling their
basic needs including food, shelter and cloths. Work time directive act: Minimum working hours of a worker in a week is decided by
this act. According to this, an employee has to work for minimum 48 hours after which
his employment will be considered as legal. Workers who want to do extra work can
perform at their own will.
 Disability discrimination act: Disable subordinates who work in enterprise should be
benefited from various benefits according to this act. This will help in safeguarding the
interest of disabled people.
By taking decision according to these legislation, employers of Aldi can create a positive
work environment. Healthy work environment enhances the productivity of workers in a positive
manner.
TASK 4
P7. Work related practices of HRM in organisation
There are number of HRM practices which can be used by the manager of Aldi to
increase effectiveness of all business operations. These practices help the manager in taking
corrective actions in enterprise to bring coordination among all activities of various departments.
Practices of HRM can be applied in the following areas: Planning of manpower: An enterprise need a large number of employees for performing
various operations in which HRM helps the manager in recruiting right candidates for
performing the job (Vörösmarty and et. al., 2010). It helps in defining responsibilities and
duties related with each job which supports top authorities in hiring skilled and capable
candidates.
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 Helps in maintaining quality of business operations: Concept of HRM defines the roles
and responsibilities of each individual. All this brings coordination among all activities of
employees and helps in maintaining quality of business products and services. In today's
business environment, to deliver high quality products to customers is an important task
for enterprises. Aldi can do the same by applying concept of HRM at workplace. Help in creating vision and objectives: Activities of human resource management helps
manager in knowing the capabilities and talent of workforce which help top manager in
setting goals and objectives of organisation. Evaluation of performance of workers: Performance appraisal and evaluation are the
main activities of human resource management. This can be used by the manager of Aldi
for knowing about the actual position of enterprise and then remedial actions can be taken
by manager to improve performance level of workers. Decision making: Manager of human resource department manages all activities related
with workers working in organisation. All this helps the top authority in knowing
strengths and weaknesses of enterprise. At the same time, it help managers in analysing
competitor's position in market (Wright and McMahan, 2011). All these help firm in
collecting various important and relevant data to take effective decisions.
 Training and development: Workers or employees are the main focus of HRM concept.
This is used by the manager for conducting training programmes for workers so that their
skills can be enhanced or achievement of organisational objectives can be done in an easy
way.
All these are the main function of every entity on which HRM practices can be applied.
Efficiency of business operations of Aldi can be enhanced by applying the concept of human
resource management. By giving consideration on the main areas of HRM, manager of Aldi can
increase overall effectiveness of all business operations. By focus on main areas such as training
of employees and their compensation packages manager can achieve growth of enterprise in an
effective way.
CONCLUSION
From the above information, it can be concluded that in today's environment, employees
play an important role in every enterprise. It has become a crucial part of every firm to maintain
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and control activities of employees and guide all workers in a way that objectives can be
effectually attained along with higher efficiency. For this, managers of Aldi can use HRM
practices in an effective way. This will help the firm in building and maintaining healthy
relations with workers. It has been assessed from the report that managers of enterprise need to
make decisions or policies regarding employees according to various employment legislations.
By this, effective and ethical HRM practices can be encouraged which help in creating a positive
working environment at the workplace and productivity of workers also get increased.
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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.
CHUANG, C. H. and Liao, H. U. I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
psychology. 63(1). pp.153-196.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
Gruman, J. A. and Saks, A. M., 2011. Performance management and employee engagement.
Human Resource Management Review. 21(2). pp.123-136.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Huselid, M. A. and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jiang, K. and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
Lengnick-Hall, C. A., Beck, T. E. and Lengnick-Hall, M. L., 2011. Developing a capacity for
organizational resilience through strategic human resource management. Human
Resource Management Review. 21(3). pp.243-255.
Ployhart, R. E. and Moliterno, T. P., 2011. Emergence of the human capital resource: A
multilevel model. Academy of Management Review. 36(1). pp.127-150.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
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Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
Online
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functions-human-resource-management/>. [Accessed on 6th July 2017].
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