Importance of Effective Human Resource Management

The assignment emphasizes the importance of Human Resource Management (HRM) in achieving success for a company. It discusses how managers can apply different functions and practices to make their strategies more effective, leading to increased profits and benefits. The role of an effective team is also highlighted, with the need to recruit personnel with high talents and skills. Aldi's strong HR department and employee motivation are cited as examples of good practice.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Purpose and functions of HRM applicable to workforce.......................................................3
M1....................................................................................................................................................4
D1.....................................................................................................................................................4
P2 Strengths and weaknesses of different approaches to recruitment and selection .................4
M2....................................................................................................................................................6
TASK 2............................................................................................................................................6
P3 Benefits of HRM practices for both the employer and employee.........................................6
M3....................................................................................................................................................7
D2.....................................................................................................................................................7
P4 Evaluate the effectiveness of different HRM.........................................................................7
TASK 3............................................................................................................................................8
P5 Importance of employee relations..........................................................................................8
P6 Key elements of employment legislation..............................................................................9
M4.............................................................................................................................................10
D3...................................................................................................................................................10
TASK 4..........................................................................................................................................10
P7 HRM practices in an enterprise. ..........................................................................................10
M5 .................................................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Human resource management is a crucial part for every organization. It is considered as
backbone of every enterprise. Human Resource Department is necessary for company to manage,
coordinate, organize, provide employees with compensation and benefits, performance
appraisals, benefits and allowances, etc. organization employs large working force so to manage
them ii is important to have efficient HR department. Aldi is one of the leading supermarket
which provide affordable and economic products to their customers. It operates in more than 20
countries with thousands stores (Hendry, 2012). To manage such a large workforce, it is crucial
to have efficient human resource management. Without this, they can not mange their operation
well and may bear losses. HR department have crucial functions such as recruitment and
selection, training and development, etc which enable hiring of best candidates and providing
necessary training to employees. This assignment will focus on functions and purposes of HRM
with strengths and weakness of recruitment and selection approaches. It will also describes HRM
practices and its effectiveness in organization. Various legislation which impact decision making
process and application of HRM practices has been described in detail.
TASK 1
P1 Purpose and functions of HRM applicable to workforce.
As mentioned above, human resource management is a process which help organization
to run its business operation smoothly and efficiently. Without the help of HRM, company
cannot work properly and bear losses in future. Every firm have separate human resource
department which carries out important functions for organization and manage all past and
present records. They formulate strategies according to recent trends and help company to
achieve its business goals and objectives. Managers of Aldi have to focus on each and every
detail of activities which are going on in company. They try to increases the effectiveness of
every activity carried out in enterprise (Bratton and Gold, 2017). This leads to more profits and
income to the company. Thousands of employees are working under Aldi, so it is necessary for
HR department to maintain good and healthy relationship with them for efficient operation. Aldi
consider their employees as valuable asset so they try to satisfy them by providing them with
attractive benefits and compensation. This encourages the motivation of other employees to work

hard to achieve those benefits. Managers develop their plans by implementing some of the HR
function to make it more effective and productive. Some of them are listed below:
Recruitment and selection: These are most crucial parts of an organization as they will
decide whether the company can achieve success or not. This is because, if company have good
and talented employees, they will perform their work with more efficiency and accurately but on
the other hand, if company hires candidates which does not have required capabilities, then they
will not able to perform their work well and also company might face loss. So managers have to
be very careful while hiring candidates. They should see whether candidates are able to perform
a job or not. If that individuals has the capabilities, then they hire him for suitable job position.
Orientation: This is referred to as events which is organized by organization to brief
about company's rules and regulation, policies, working culture and environment, etc (Brewster
and Hegewisch, 2017). This is actually organized when employees join a company for the first
time and these events provide them with their responsibilities towards job, colleges, superiors
and company. This type of activities enables good relation with other existing colleges as well as
with superiors. This make new joiners to adapt with culture of organization.
M1
It is necessary for a company to implement effective and good HRM practices within
organisation to achieve their objectives in efficient manner and within specified time limit. HRM
should be good enough to manage all their tasks and operation which can provide benefits to
company as well as to employees also. They should hire highly qualified candidates which can
give high maximum productivity to company.
D1
According to (Armstrong and Taylor, 2014), in case of internal recruitment, managers
can not get desired capabilities for a particular job position so they opt for external recruitment
which ensures highly talented candidates which are suitable for available position in company.
Manager should see what are the job requirements and recruit candidates according to that.
P2 Strengths and weaknesses of different approaches to recruitment and selection
Recruitment and selection are two major processes which is carried out by every
organization. This is done to fill up available positions in organization. This is the major
responsibility of a HR manager to recruit talented candidates for company which can offer them

with more benefits and profits. It is really a difficult task to select best individual as there are
thousands of candidates available in the market with high skills and talents. For that managers
have to first identify available job positions in organization, then they should list down all
necessary skills and talents required to perform that particular job (Briscoe, Tarique and Schuler,
2012). After that they can hire individuals by attracting them towards their company and job.
From them, managers can hire suitable individual for particular job. They can select people form
following two sources:
Internal source: When company does not have appropriate funds to carry out
recruitment and selection procedure, then they opt for internal source. In this they shift existing
employees of organisation to different or similar positions. It mainly includes – transfer,
promotion and present employees.
Advantages of internal source:
 It increases motivation level of other existing employees.
 Encourages loyalty among employees.
Disadvantages of internal source:
 Limited talent available in organisation.
 Discourages new people to join company.
External source: This source helps to recruit talented people form outside the company
for a particular job position. It mainly include- campus interview, placement agencies,
employment exchange, press advertisement, etc. Recruitment of desired candidates can be done
through above sources.
Advantages of external source are:
 It enable flow of new talents.
 Desired candidates are hired.
Disadvantages of external sources:
 sometime talented candidates switch other company.
 It become expensive for company to carry out external recruitment.
Strength of approaches to recruitment and selection:
 Best candidates ensures maximum results and profits.
 Inflow of new talents and skills.
 Reduced labour and employee turnover.

 Timely achievement of goals and objectives.
Weakness of approaches to recruitment and selection:
 Managers may sometime recruit wrong candidate for a particular position.
 Wrong individuals can lead to decrease in productivity of company.
M2
Recruitment and selection have some strengths and weaknesses in which the biggest
strength of this process is that, they provide company with highly qualified candidates for
available position of job. Weakness of this process is that, sometime managers tend to recruit
wrong candidates for a post which leads to loss for company.
TASK 2
P3 Benefits of HRM practices for both the employer and employee.
Human Resource Management is necessary for every organisation to manage different
activities. It help organisation to achieve set targets and objectives on specified time. Managers
can implement different HRM practices in their strategies to maximise their productivity. Some
of them are given below:
HRM practices for employer are:
Performance appraisal system: This system should be implemented in every
organisation as this encourages employees to work effectively and give out more results to
company. If any employee perform better in their job, managers should praise them by giving
some various benefits and bonuses. This improves their motivation level and tend to perform
better in their activities (Daley, 2012). Aldi has established this system within organisation to
give awards to their employees.
Hiring of candidates: This is crucial for Aldi, as best people can ensure desired success
to the company. Managers should find out available job posts for company and list down all
features and characteristics which should be present in an individual. Through this plan, they hire
best suitable candidates for their job. Different candidates give new and innovative ideas to
managers which can be applied in recent strategies. This leads to maximization in profits and
benefits.
HRM practices for employee are:

Training and development: This is an important part of human resource department.
Training is given to employees which are not able to perform their work in effective manner.
This help to increase their knowledge and skills which are required to perform that particular
activity. Training can be given to existing employees also for improving their knowledge in
particular technology or procedure.
Compensation and benefits: This should be given to employees at the time of any good
work done by employees. By providing them with appropriate benefits and compensation,
increases the confidence and motivation level of employees to work more for company.
M3
HRM practices are necessary for managers to implement in their strategies to make it
more productive. Managers can appreciate their employees by giving them attractive bonuses
and compensation to encourage them to work hard.
D2
According to (Huselid and Becker, 2011), managers can provide necessary training to
employees if he is unable to perform their activities in said directions. This will increase
efficiency of employee and he will be able to work in a smooth manner.
P4 Evaluate the effectiveness of different HRM.
HRM is considered as an integral part for formulating and implementing policies and
procedures that can help an organization to achieve success by timely achieving its tasks and
objectives. Aldi been a market leader in supermarket chain needs to focus its HR department to
formulate those strategies that can help the firm to find out key factors affecting its target
audience and make suitable plans according to them. It is major responsibility of HR manager of
Aldi to improve and increase the skills and knowledge of it workforce by designing a proper
training modules by identifying areas where they lack. Some of HRM practices are mentioned
below:
Measuring performance: It is procedure of monitoring and evaluating the performance
of employees by comparing their actual perform with the desired performance on basis of pre set
standards. Adi use this technique to track down its employees performances and to ensure that
they become more efficient and effective in tasks.

Flexibility in working hours: Providing flexibility in working hours help an employee
to be less stress free, more focused in their work and can maintain work life balance. It ensures
company to have dedicated and loyal employees which results in maximum and better outcomes.
Payment and reward system: This system includes formulating and applying strategies
for recognizing the efforts of an employee which he put for cacheing organization goals and
objectives. It helps in motivating people to work with best of their abilities in effective and
efficient manner as they feel associated with company (Jackson, Schuler and Jiang, 2014) .
Training and development: It is concerned with enhancing the skills and knowledge of
employees so as to make them proficient and well equipped with technique that can help the
employees to carried out their present as well as future tasks. It helps in increasing employees
confidence and motivate them to take bigger responsibility and challenges in future. Training is
provided to new joiners as well as existing employees to increase their productivity and work
performance.
TASK 3
P5 Importance of employee relations.
Employees are the ultimate resources and asset of a company whom always support in do
something new and innovative at market area. Managers of a company have to made their work
properly by making appropriate relationship with all of their employees. By making effective
employee relation chances of managing innovation and creativity at workplace could become
possible which further assist in deriving suitable outcome. Hence, it is utmost work of managers
to maintain healthy relationship with all of their employees (Budhwar and Debrah, 2013). For
this consideration, ALDI managers required to maintain healthy and effective relationship with
all of their employees so that beneficial gain could be underpin. Thus, following are the major
benefits which could be determine by ALDI while managing healthy relationship with
employees:
Timely achievement of set objectives : One of a major benefit which could be
determine by ALDI by creating healthy relationship is that all objectives regarding sales,
customer retention get accomplish in define time manner. It is a major thing which support
organisation to become competitive and sustainable at keen competitive area which further
enables in deriving better accomplish results.

Discourage Conflicts & Fights: In an organisation, variety number of individuals are
working together which belongs to differ range of culture as well. This respect increase and
enhance chances of conflicts among each other (Guest, 2011). This create problem in working
properly as well as employee relationship towards management also get impacted. By managing
appropriate employee relationship, conflicts and negative gain probability lead to get decline.
Leads to increase in productivity : Productivity enhancement and customer base
increment is a major task which motivate every business to work. Business required to work
towards suitable consideration and try to increase their productivity. This only get done by
making healthy and appropriate employee relationship just because all of the team work with
enthusiasm and motivation of rewards etc.
Profit maximization: The last factor related with employee relationship is profit
maximisation. Profit is a major goal or consideration for every business firm which only could be
gain by managing appropriate coordination among team and various individuals (Nickson,
2013). ALDI suppose to enhance their profit only by managing suitable relationship with all of
their employees.
P6 Key elements of employment legislation
Business concentrate on several rules and regulations which need to understand by
managers of a company properly. Thus, business managers have to completely focus on
employee legislations and its impact on HRM decision making so that better and supportive
working could be done. ALDI required to understand all such kind of legislations properly so
that further better and suitable judgement which support in managing good will suppose to get
done. Below are the several regulations which required to understand by managers of ALDI
stated as follow: Health and safety act 1974: At workplace health and safety of an individual is a major
thing. Every employee want protection while working with any business organisation.
Thus, an employer not only to provide appropriate wages as well as deliver appropriate
safety to all of their employees. This will going to motivate all individuals properly which
further enables in gaining better and supportive outcome (Marler and Fisher, 2013).
ALDI have to identify all key essentials of health and safety act, 1974 properly so that
appropriate management of work could be done.

 The National Minimum Wage Act 1998: Another major aspect is to provide wages and
salary. Business have to follow this legislation properly where they have to pay minimum
wages to each and every individual whom working at workplace. This will bring and
motivate them as for performing the task properly. ALDI have to provide minimum wage
and equal to every personnel so that they all going to work properly and reflect positive
and supportive return as well.
 Equity Act 2010: Another major act which have to underpin by management of a
company is equality act. Under this act, business need to treat and greed every person
equally which enables and support in reduce chances of conflicts and problem among
each and every person (Renwick, Redman and Maguire, 2013). ALDI have to focus and
determine the equality act and try to provide appropriate opportunities to each and every
associate. This will assist them and support in deriving better and associated outcome so
that better and supportive results could be identify.
M4
There ought to be agreeable connection between the administration and representatives as
it is of basic significance for development and achievement of the association as workers fills in
as the foundations for giving imaginative thoughts and accomplishing targets. ALDI have to
maintain appropriate relationship with all of their employees as well as lead to follow all
government legislation related with company.
D3
A major practice of HR manager is to recruit and select such individual whom have
potential to do something new and creative. Also they have to determine that such individual
have team spirit or not. ALDI need to maintain appropriate relationship between all individuals
so that they could gain better and effective return. This will assist business to implement each
and every innovation properly which further support in deriving any beneficial decision as well.
TASK 4
P7 HRM practices in an enterprise.
There are various kind of strategies and policies that are necessary to be build in more
effective as well as efficient manner to carrying out business aspects (Cascio, 2018). Managers

of an organisation are has responsibility to appoint several staff members as per different
designations vacant in company. It is essential to conduct training and learning procedures
according to requirement and analyse performance of employees on regular basis. Recruitment
and selection is very important task to carrying out because it deals with hiring process to
appoint desired candidates for appropriate position.
Management training at Aldi
Workshop title/ Training practices Date- Time-
Location Instructor
Candidates
Activity Time of activity Process Equipments required
Induction of candidates
Training objectives
a)
b)
Warming up
Contents and necessary
points
Job advertisement

Sales person require
Qualification /Eligibility
MBA in Marketing from any recognised institution
To apply:
You are required to upload your application with CV and latest photograph on our websites
latest by 31 March 2018.
Email-id: www.Aldi.com
Contact no.: XXXX00000
Job specification
Qualification Master's Degree in Marketing.
Bachelor's degree in business or related field.
Experience Should have 2 year experience in sales.
Area of expertise Should be proficient with communication
skills and leadership skills.
Other qualities Good verbal and writing skills.
Strong marketing skills.
Good interpersonal skills.
Interview Questions

 Have you ever participated in any co- curricular activities?
 What strategies will you adopt while working in the organisation?
 Where do you want to see yourself in next 5 years?
 What are your strengths? What are your weaknesses?
Personal specification
Particulars Required criteria Learning and outcomes
Qualification and training Communicate with new
employees
Able to perform whole
induction process.
Experience Providing the best services to
customer
Pressure handling ability
Must have performed certain
induction process in training
sessions in college days
Skills and knowledge Attentive and good
communication skills
Developing and generating
innovative ideas
Personal characteristics Proactive, leader, confident,
positive attitude
Team Builder
Developing certain skills
and traits to work in
organisational culture.
CV
Information of candidate
Name:
Father's name:

Mobile no.:
Email id:
Key skills:
 Creativity
 Well versed with concept Human Resources Management
 Have advanced knowledge of computer
 Working in team
 Having ability to learn and grasp
Experience:
 Goldman : Assistant to Retail Manager
 Schroedinger: Worked as a learn leader in retail store located at Durham.
M5
There are many of significances of HRM practices because it deals with different aspects
of an organisation so that all activities can be done in proper manner. These are beneficial to
recruit correct candidate and manage the human power of an enterprise properly to generate
better outcomes (Albrech, 2011). HRM practices are also beneficial to do performance of
appraisal to motivate them for improving working efficiency.
CONCLUSION
From above assignment it can be concluded that, Human resource management should be
effective to ensure desired growth for company. Aldi employs large workforce and have strong

HR department which manages all activities with utmost perfection. Managers apply different
function and practices to make their strategies more effective so that it can gain more profits and
benefits form business organisation to company. Managers can organise certain activities to
ensure good relations with employees. Only effective team can achieve success, so managers
need to recruit personnel which have high talents and skills and with the help of their innovative
and creative ideas their company can proceed ahead in market.