Human Resource Management.

Human Resource Management

Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1: Purpose and functions of Human Resource Management............................................................3
P2: Strength and weaknesses of different approaches to recruitment and selection...........................4
TASK 2.................................................................................................................................................6
P3: Benefits of HRM practices within an organisation......................................................................6
P4: Effectiveness of HRM in increasing productivity and growth.....................................................7
TASK 3.................................................................................................................................................8
P5: Importance of employee relation in decision making..................................................................8
P6: Key elements of legislation act of employees..............................................................................9
TASK 4...............................................................................................................................................10
P7: Different application of HRM practices....................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12

INTRODUCTION
Human resource management can be defined as the business practice of recruiting and
developing human resource so that they can contribute more valuable efforts in achieving
desired goals and objectives of an organisation. Thus, it involves various activities and
practices such as training and development programs, recruitment and selection, performance
evaluation, rewards etc. Every organisation should require to have skilled and knowledgeable
HR manager who perform such HRM activities and provide company a valuable asset as
employees. Aldi, a company which deals in providing grocery products to the people of UK
and across worldwide is taken for the purpose of preparing this report. The project
summarises the purpose and functions of human resource management along with the
benefits and effectiveness of HRM practices in increasing productivity and profitability of
company. Importance of employee relation and key elements of legislation act of employees
are also discussed under this report (Cox, Arnold and Tomás, 2010).
TASK 1
P1: Purpose and functions of Human Resource Management
Human resource management is formed in an organisation with a motive of managing
and controlling the activities done by the employees working in an organisation. They are the
solely responsible to develop the skills and knowledge of employees through organising for
them suitable training and learning program on regular basis with a hope of getting maximum
contribution from them in achieving desired goals and objectives. It is always important to
take care needs and requirements of human resources through which they can motivate them
to perform well. Therefore, HR manager should required to collect feedbacks in order to find
out problems which restrict employees in giving their maximum efforts and accordingly
implement corrective measures and practices to eliminate them and maximises the
satisfaction level of employees (Daley, 2012). Thus HRM performs several functions which
are as follows:
Recruitment and selection: It is first and foremost function HR manager to perform
as through recruitment and selection process, the company can able to get skilled and
qualified employees. Recruitment is the process of inviting candidates to apply for job and
take participate in interviews sessions to get job in company. On the hands, selection is the
process of giving employability to skilled and knowledgeable candidates after passing all

interview sessions and requirements needed by company. These all activities should be done
by HR manager with a motive of getting valuable human resource to company.
Orientation: This is the process of providing an opportunity to new candidates to get
interaction with other employees and adjust in new environment where they should work. In
such orientation, all the aims, vision, mission and objectives of Aldi are defined by HR
managers to the new employees along with rules and policies of company.
Maintain good working condition: HR manager is wholly responsible to provide
healthy atmosphere to employees at workplace so that no hindrances can stop employees to
perform well. Working in healthy working condition ensures in getting maximum possible
outcomes thus HR manager of Aldi need to focus on conducting activities for the betterment
of employees (Flamholtz, 2012).
Managing employee relation: Employees are considered as a valuable asset to
company on which the growth and success of an organisation depends. Therefore it is
important for HR manager to maintaining healthy relation with them through communicating
and helping them in performing allotted activities. For this, ALDI need to organising
interaction programs and games etc. in order to maintaining good relation between managers
and employees.
Training and development: It is important part of HRM practices which is essentially
required to be conducted by HR manager of Aldi as it helps in enhancing skills and
capabilities of employees through which they can contribute more effort in increasing the
performance of an organisation. Thus, training and development programs should be by
company on continuous basis.
Finance – In order to achieve maximum returns from the market it is important that
the best mode of sourcing and investing finance is used as it determines the productivity of
business. Through marketing the different options are evaluated and hence the best suitable
variety is chosen and hence profit margins of an enterprise is raised.
Promotion – To maximise sales it is of great importance that the goods and services
are marketed using the best mode of advertisement. Officials of marketing department take
care that they choose such platforms through which maximum share of customers can be
reached.

P2: Strength and weaknesses of different approaches to recruitment and selection
Recruitment and selection is considered as important activities which are done by HR
manager of ALDI with a motive of getting skilled and knowledgeable employees who can
contribute more in achieving desired goals and objectives. HRM is the practice which
includes job design, performance appraisal, promotion, employee growth planning etc. To
attain valuable human resource recruitment and selection process should be done in more
effective and efficient manner (Fulton and et. al., 2011).
Recruitment is the process of inviting skilled and qualified candidate and provides
them opportunity to get employability in well-known company. It can done through internal
and external sources which are defined as below:
Internal source: It is the process of filling the space and opportunity from resource
available within an organisation. It can be done with motive of giving motivation and
confidence among current employees. Mostly companies prefer to provide better
opportunities to their existing employees instead of provide opportunity to new and unknown
employees. As ALDI is multination company which operated its business in many countries
thus they always promote existing employees with the purpose of retaining them for longer
period of time. There are different ways through which internal recruitment is provided
among which promotion and recommendations is one of the most commonly used technique.
It starts when company render a notice which shows the vacancy available in company and if
employees think that they have all skills and knowledge to get vacant job then they must
apply for the vacant job. This system has its own positive and negative aspects as below:
Positive:
 Internal recruitment gives an opportunity to existing employees to get higher position
in company which can be done after analysing the skills and performance of previous
year.
 The major advantage of recruitment through internal sources is it is less time and cost
consuming and encourages employees to improve their skills so as to get high
employability in company.

Disadvantage
 The main negative factor of this is that the company cannot get new ideas and talent
which help them in giving new ways and methods to achieve competitive advantage
(Guest, 2011).
External source: It is also important source of recruitment and selection. Through
such source, an organisation can get new talent, knowledge, skill and blood on the basis of
thy can compete with their rivals in competitive market. Recruiting new employees help
organisation in getting new and innovative ideas to operate business worker more effectively
and efficiently. It is the process of giving opportunity to new people instead of existing
employees with a motive of getting fresh talent and new ideas. As ALDI is multinational
company which employed large number of employees due to which should go for external
source through which they can invite public to apply for the vacant job in well-known
company.
Advantage:
 The major strength of outside recruitment is that the company can get new talent
within an organisation who help them in giving new ideas and suggestions in order to
compete with rivals in more effective and efficient manner.
 Sometimes firms need ton changes their mind set and knowledge to achieve huge
growth and success in competitive market world thus this source of recruitment and
selection will be beneficial for such companies (Hendry, 2012).
Disadvantage
 The weakness of such external sources is it is very time and cost consuming process.
 It brings demotivation among existing employees as well as they are ignored by
company in recruitment and selection process.
TASK 2
P3: Benefits of HRM practices within an organisation
Human resource management is responsible to develop skills and knowledge of
employees through conducting various HRM practices such as training and development,
performance appraisal, rewards, payroll and other administration of employee benefits. It

cannot be possible to perform business activities in an effective and efficient manner without
proper communication and coordination thus it is important for HR manager to create
channel of communication through which they can communicate with employees and provide
them information about plans and police formulated by Board of Directors (Huselid and
Becker, 2011).
Benefits of using HRM practices:
Developing employee’s skills: Employees are considered as a valuable asset of
company whose contribution and efforts decide the growth and success of an organisation.
Therefore, it important for HR manager to give efforts in improving their skills and
knowledge. For this, training and development programs should require to be conducted
which maximises knowledge of employees of utilising available resources in an optimum
manner. Aldi should direct their HR managers to bring out new ways to maximise
satisfaction level of employees which help in increasing productivity and profitability of
company. This will have a positive impact on both employee as well as on employer. Once
the capabilities of work force are improved it helps in getting more efficient results as than
the work force become more productive which helps them in long run. On the other hand it
also gives advantage to employer as through same number of employees profitability of firm
is raised.
Building a flexible workplace: HRM practices are helpful in crating healthy and
flexible working environment for their employees with a motive of enhancing their
performance. As every employees nowadays wants flexible environment in which they
expect shifts as per their own choice as suitability. Therefore, Aldi need to focus on giving
such flexible environment in order to provide benefits to their employees. It can be possible
through changing shifts systems such as morning, noon and night shift in which employees
work according to their suitability (Jackson, Schuler and Werner, 2011). It helps employees
in maintaining the business environment which is supported by the employees who do not
resist to change. This aids the refereed enterprise in achieving the competitive advantage. on
the other hand employees are benefited by same by making them competitive and capable of
doing work in distinct situations.
Promoting positive behaviour: The maximum result will be achieved by an
organisation only when the working behaviour of employees is increased and it can be
maximises through giving benefits to them such as rewards, compensation, bonus salary etc.

Therefore, HR manager need to focus on performance of employees and promote them ton
high position on the basis of their performance which in turn maximises their confidence
level and working behaviour. Once a favourable surroundings are raised it assist in avoiding
distinct issues and maintain continuity in the working which is a positive factor for the firm.
Thereafter, employees also feel motivated and finds the work place happy where
management is concern about the desires of individual.
P4: Effectiveness of HRM in increasing productivity and growth
Human resource management contributes their valuable efforts in formulating
planning and strategies in order to achieve growth and huge profits. Every organisation has
their own plans and policies on the basis of which they can sustain in competitive market for
longer period of time. If such policies can be followed and operating business activities
accordingly then the changes of achieve success and productivity will be more. Some of the
important factors which contribute in achieving high productivity and growth for an
organisation are determined as below:
Information system: This system is helpful in transferring valuable information from
one place to another without facing any problems. Such system is also known as knowledge
administration. Th4refore, it is important for HR manager to communicate and inform
significant information to their employees so that they perform allotted task in more effective
and efficient manner. Aldi recruit workers who are having good knowledge about market thus
placing them as marketing representatives (Jiang and et. al., 2012). Company should also
require to make an effective communication channel through which they can pass relevant
information from one level to another level. This all help company in achieving desired goals
and objectives. Through using such management information system, the chances of
misunderstanding will be less and also help employees in understanding their roles and
responsibilities in an organisation. When quality information will be shared among different
level and individuals in the referred enterprise than it will increase the work speed and also
quality of work will be better. Timely communication of important data helps in avoiding
rrors and hence raise the productivity of business.
Talent management: Companies always prefer to recruit more skilled and knowledge
employees than their existing employees working in an organisation. Therefore, to attain such
employees the management conducting recruitment and selection plan in which only
educated employees are qualified to get employability in an organisation. Every individual

has their own skills and knowledge and thus capable to achieve desired goals at their own
talent. But the main challenges are to identify their talent which help company in giving
Maximum contribution. Aldi should require to use various techniques in order to identify
talent and sills of workers that they can properly utilise and direct them in achieving
organisational goals and achieve huge profits. Companies also conducted award ceremony to
appreciate performance of employees. This is an effective way to motivate employees
(Lengnick-Hall and et. al., 2011). By identifying the distinct talents of different individuals
organisation can accordingly do the planning as who has to be given what authority and who
can perform a particular task in the best appropriate manner. thereafter the talent management
system has also an important role in planning the development plans for the employees.
TASK 3
P5: Importance of employee relation in decision making
The performance of employees will be improved when they have good relationship
with managers and other employees. Therefore, it is important for HR manager to conduct
orientation programs through which they can get opportunity to maintaining healthy relation
with their employees. A good and healthy employee relationship is helpful to achieve growth
and success for Aldi. It can be done through proper communication and coordination and
collecting regular feedback from the employees regarding issues and problems faced by them
at workplace. There are range of parties which are involved in the employee relation such as
the work force, employer’s management leaders etc. Each one of them has their own
significant role in maintaining a good connection among the distinct individuals which
further increases performance of business. will help in bringing motivation and self-
confidence among workers due to which their overall performance will be also maximised.
There are other benefits as well which can be attained through maintaining employee
relationship. Such as described as below:
A good relationship with employees help in increasing their motivation level and working
behaviour through which they can contribute maximum in achieving desired goals and
objectives (London and Hall, 2011).
 If the plans and policies formulated by top authority of company are clearly defined to
the employees, then it will help in maintaining better relation and make employees
more focused on target which will ensure in getting best possible outcomes.

 It helps in creating new ideas and methods of operating business activities in an
effective and efficient manner. Taking sufficient support from employees, the
employer can able to make an effective and profitable decision.
 A good relationship form a team in an organisation which help in formulation an
effective decisions and plans for the betterment of an organisation.
 Healthy relationship with employees helps them in retaining commitment with
company for longer period of time which directly brings beneficial outcome to
company in near future.
There are distinct ways through which the employee relation can be developed such as:
 Communication development – By ensuring that clear and timely interaction is
taking place at the working conflicts can be avoided and a better connection can be
established. Everyone should be free to talk so that misunderstandings can be avoided.
 Recognise the job done well – In order to motivate and to develop a good relation
method of appraising the one who deserve can also be an effective measure. Through
this employee develops feeling of belongingness with the management and hence lead
towards a healthy relation.
Maintaining employee relationship encourages employees work in a team and provides them
an opportunity to improve their skills and knowledge with the help of getting proper guidance
from managers (Ployhart and Moliterno, 2011).
P6: Key elements of legislation act of employees
There are different legal laws and legislations formulated by government for the
betterment of employees working in an organisation. Non-compliance such legislation will
bring existence of company into danger therefore the management should ensure that certain
riles and legation has followed by Aldi. Such legal laws and legislations are explained as
under:
Equality act, 2010: This act states that every employee irrespective of their position
whether low or high, have right to get equal treatment by the company. The management
should not require to differentiate workers on the basis of their characteristics and position in
company. Therefore, this act is so much effective for the betterment of employees.
Data protection act: This act implies that the management of Aldi should require to
protect valuable and important data and information of staff members and customers with the

help using different systems. The information should not be leaked otherwise it will brings
negative result to company.
Health and safety act: According to this act, the employer of Aldi should require to
provide health atmosphere at workplace so that employees can work without any risk. First
aid box should also maintained in order to give treatment to employees on time.
Minimum Wage act: This act states that employer should liable to make payment to
worker in rerun of the services they get. This act directs the management to pay at least
minimum wages to the workers. An organisation having more than 15 employees are liable to
follow such act (Shen, D'Netto and Tang, 2010).
Dismissal: Under this act, the employees who found to work in illegal manner or indulge
in any illegal or criminal activities should get terminated from the employer. This act
provides full right to employees to take strict actions against such person who are not
working according to the laws and policies.
TASK 4
P7: Different application of HRM practices
As human resources is considered as an asset of company whose actions and
performance decide the growth and success of an organisation. There are various HRM
practices which must required to use by HR managers in order to solve issues and problems
faced b y employees at workplace. Aldi is one of the largest retailer company in the world
which generated huge revenues every year. This, to maintain such performance the company
need to apply HRM practices which are briefly described as below:
Planning of manpower required: It helps HR manager to fill the space of employees
required in an organisation. But before that, the management should required to identify the
skills and knowledge they want in their employees for performing specific job and
accordingly recruit skilled and qualified employees for the betterment of an organisation
(Functions of HRM, 2017).
Decision making: Through using Management Information System (MIS) the
management can able to make an effective decision and plans for their employees with a

motive of giving sufficient support to them in completion of allotted activities and desired
goals and objectives.
Development and training of employees: Evaluating the performance of employees by
comparing their actual performance with standard will help management to know each
employee’s skills and knowledge. This will help in identifying low skilled employees which
help management to conduct training and development programs for them so that they can
also compete with other employees in an effective and efficient manner.
Maintaining the quality of business products: Aldi produced high grocery products
which help them in retaining loyal customers. But to continue such quality they need to
change and upgrade their technology used in production process on continuous basis which
will help them in reducing wastage and produce products in optimum quality. This will help
in maximising the efficiency level of employees as well which bring motivation among them
to perform well (Difference Between Training and Development, 2017).
CONCLUSION
It has been concluded from the above project report that An organisation can achieve
growth and success in competitive market only when their Human Resource Management
contribute valuable efforts in developing the performance of employees through formulating
an effective plans and polices which indirectly brings beneficial result to company. There are
various HRM practices such as training and development, performance evaluation, rewards
etc. which need to be applied by HR manager in order to improve the skills and knowledge of
employees. Employee relationship are also helpful in getting profitable result to company.

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Online
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Difference Between Training and Development. 2017. [Online]. Available through:
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