HRM Practices in Aldi's Work Context

The assignment emphasizes that managing workers and their activities at workplace is crucial for every enterprise's success. It recommends that managers should identify training needs of employees, provide a healthy and safe working environment, comply with employment legislation, and enhance the effectiveness of all business activities through HRM practices.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Functions and purpose of human resource management.................................................1
P2. Different approaches of recruitment and selection..........................................................2
TASK 2............................................................................................................................................4
P3. Benefits of HRM practices to employer and employee...................................................4
P4. Effectiveness of HRM practices in terms of raising profit and productivity...................5
TASK 3............................................................................................................................................6
P5. Importance of employee relations to influence HRM decision making...........................6
P6. Different employment legislations and their impact on HRM decision making..............7
TASK 4............................................................................................................................................8
P7. Application of HRM practices in a work related context.................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Managing a large and successful business involves handling of wide resources. Every
enterprise need skilled and qualified workforce who have ability to manage all commercial
activities and can help enterprise in attainment of all objectives and goals. Human resource
management is an important business function which focuses on people of an organisation
(Armstrong and Taylor, 2014). It helps in management of people and its activities in an efficient
way. Its main aim to ensure right people at right job so that business can execute all its activities.
Owning its existence in 1913, Aldi is one of the leading grocery retailer in world today doing its
operations in 70 countries. Company starts its operation in UK in 1990 and now provide it
services through more than 500 stores over there. Present report contains information about main
functions of purpose of HRM. Various methods of recruitment and selection is mentioned in this
report. Along with this effectiveness and influence of these practices on overall operations of a
business is detailed under this essay.
TASK 1
P1. Functions and purpose of human resource management
Human resource management is a process of managing staff members and their activities
to achieve set objectives and aims. It is one of the main function of every firm to be successful. It
helps firm in ensuring that there are talented people in enterprise to handle various resources
including technology, equipment, materials and many more. It help firm in meeting needs of
customers and helps in retaining right workers in company.
Purpose of human resource management
Main purpose of HRM is to retain right quantity and quality of people to perform critical
jobs of an entity. Other than this, it brings collaboration among all activities of an organisation.
Managers of human resource department use various strategies to build commitment of
employees (Bloom and Van Reenen, 2011). They try to retain right people for right job by
matching qualifications of an individual by skills required to perform job. Team of HRM helps in
building capacity of whole enterprise by set a competitive goal.
Functions of HRM Recruitment: Recruiting skilled and talented workforce for performing various jobs is
one of the main function of HRM. Managers of human resource department advertise
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about vacancy and then collect and screen resumes of applicants, conduct interview and
select best candidate for doing the job. Safety: According to health and safety act 1970, provide safe workplace environment to
employees is an obligation of an employer. It is responsibility of manager to provide
workplace and safety training to workers to maintain a healthy and safe environment free
from any injury. Employee relations: Build and maintain good relations with workers boost employee’s
productivity and enhance their performance (Boxall and Purcell, 2011). It can be done
through increasing employee involvement in decision making process and by solving
issues at workplace. Compensation and benefits: It is one of the important function of HRM, it is
responsibility of a human resource manager to make compensations plans of a individual
attractive and according to all legislations to encourage ethical practices at workplace.
 Training and development: It is a duty of an employer to provide support and necessary
guidance and training or orientation to new workers to understand organisation culture.
As business environment is becoming complex day by day firms wants skilled employees
and to increase their skills it is very necessary to provide training to workers to enhance
their skills.
If performed well, all these functions could increase effectiveness all activities of Aldi.
P2. Different approaches of recruitment and selection
Recruitment is a process of attract, select and appoint skilled or suitable candidates for a
job in a organisation. For filling the vacancies a company can use one from the following:
1. Internal source of recruitment: In this approach of hiring manager seeks or evaluate the
qualities of employees already working in that enterprise. Capable workers promoted to
one higher level.
Strengths
It is one of the easy and effective approach of recruitment. Decision are taken at a fast
speed under this approach (Chuang and Liao, 2010). It helps in increasing the morale and
commitment of workers. It is a cost effective method. There is least possibility of error under this
method of hiring. This method helps in achieving economy and ensures development of
employees.
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Weaknesses
This approach of recruitment discourage process of hiring talented and capable
candidates from outside world. It can be possible that enterprise's current employees does have
skills to perform higher jobs. It blocks innovation and does not proof useful in every situation.
2. External source of recruitment: Under this managers invite candidates from outside the
firm to fill vacancies. It is one of the most popular form of recruitment.
Strengths
This approach of hiring candidates brings suitable and skilled candidates to firm for
filling the vacancy (Crook and et. al., 2011). It brings innovation and makes business
environment more competitive. It is an economical way of hiring new candidates.
Weaknesses
This demoralise existing employee and it is one of the expensive method. Conflicts arise
among old and new workers which decrease the productivity.
Selection is a process of choosing best and capable candidate for performing duties &
responsibilities. This is done by manager after analysing and evaluating all applicants. It is very
necessary and important for human resource manager to choose capable and deserving candidate.
Approaches of selection Systematic selection method: This approach of selection helps in reducing biasness of
manager in selection process. It follow a systematic approach of selecting best from all
candidates.
 Unsystematic method: Under this manager select a resume randomly and then evaluate
skills of that candidate for performing a particular job.
Recruitment and selection is one of the main and important function of HRM, it is very
necessary for a manager to ready all support material during the process of recruitment and
selection to choose best and capable candidate (Daley, 2012). Mangers of Aldi can use both
internal and external method of recruitment to hire right candidate for right job.
TASK 2
P3. Benefits of HRM practices to employer and employee
Practices of HRM include recruit, select, performance management, deciding
compensation and other benefits of workers. These practices brings coordination among various
activities of enterprise. Without this firm will fail to achieve its objectives and targets, this makes
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business environment disturbed and workers will feel dissatisfied which will decrease their
overall performance. It is very necessary to apply this concept because this provides various
benefits to both employees and employers, include the following: Promote positive work environment: HRM practices creates positive and favourable
working environment which helps in keep subordinated happy and more productive. It
helps in giving reward to desired candidates and motivate other to perform well (Gruman
and Saks, 2011). This maximise productivity of workers which enhance overall
performance of business organisation. Flexible work environment: Today in every business organisation number of workers
work form different culture. In this situation to retain employees, employer provide them
flexible work environment including work hours, work assignment, work locations and
many more. Flexible work environment increase productivity and satisfaction levee of
subordinates. Developing employees: Practices of HRM encourage and motivate worker to contribute
in company's success. It provide training and education to employees and give them
chance to share knowledge and ideas. Enhanced skills of subordinates help company in
achieving success easily. Motivate workers: Healthy and positive work environment influence and motivate
workers to give their best. Managers implement various strategies to make business
activities competitive and interesting. Helps in identifying training needs of workers: HRM practices helps in analysing and
evaluating actions and activities employees at workplace. Which help business manager
in conducting training programmes for them to increase their level of skills and make
them more competent. Help in developing a healthy working environment: Practices of HRM define acceptable
behaviours of staff members in organisation which help in reducing conflicts and does
not give rise to unnecessary issues at workplace (Guest, 2011). All this helps in making
workplace environment more positive and effective which give rise or increase
productivity of employees.
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 Ensure equal treatment at workplace: One of the major advantage of various practices
of HRM is that it ensure that equal treatment must be offer to every worker. All this
enhance employee's morale and at the same time encourage them to perform well.
 Helps in making planned actions: Human resource evaluates all operations of an
enterprises which provide and help manager in collecting relevant data about what is
going at workplace and this data help manager in deciding future activities of a business.
Other than this HRM practices provide number of benefits to both employers and
employees which increase their satisfaction level and maximise their productivity (Huselid and
Becker, 2011). All these benefits brings consistency among all business activities.
P4. Effectiveness of HRM practices in terms of raising profit and productivity
In order to calculate effectiveness of HRM practices organisation one can consider or
calculate the productivity and profits of that enterprise. Manger of human resource, plan
activities and give direction to employee's action to achieve set organisational goals and
objectives which increase cash inflows of entity. This brings coordination among all activities of
a firm which help in decreasing overall cost of production. This helps firm in getting competitive
advantage in market and exploit all opportunities exist in business environment. This helps in
making business environment more competitive and provide various growth opportunities to
employees. This encourage fair and ethical practices at workplace. Other than this these practices
help in solving critical issues rise between workers in enterprise.
Staff members are an important element of success of every kind of organisation. They
play a critical role and contribute a lot achieve set objectives and targets. It is one of the main
and important responsibility of a manager to provide them growth opportunities and healthy
working environment. Workplace environment should be safe and free from any hazard because
no wants to work in a risky condition. Healthy and positive work condition improves
productivity of employees and increase their satisfaction level. If an entity execute fair and
healthy human practices at workplace than it increase goodwill of firms in mind of public and
attract large number of potential candidates to join with the company. It help entity in achieve
efficiency in all its commercial operations.
It helps in decreasing employee turnover by treating them in a fairly manner. Manager of
Aldi should give attention to important aspects of HRM concept to satisfy different needs and
wants of various workers (Jiang and et. al., 2012). It helps in designing and choosing various
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methods and process of doing work with decreasing cost of production process. One of the main
benefit of these practices is that help enterprise in making and delivering quality products for
large number of customers which attract large number of customers to but the product and
increase the market share of company, all this increase profits of firms. It is difficult for an
organisation to attain its objectives without implementing this concept. In absence of this costs of
business activities will increase, employee turnover will increase and company's image will
hamper (Kehoe and Wright, 2013). A company has to suffer from number of disadvantages so it
is very essential for ALDI to implement this concept for fulfilment of all objectives and aims
with minimum cost.
Managers of ALDI implement various HRM practices at workplace which helps in create
a positive work climate. All this decrease employee's turnover and at the same time ensure
optimum utilisation of all resources. This increase efficiency of production process and make the
enterprise able to offer quality products to its customer at affordable prices. All this increase
profits of enterprise.
TASK 3
P5. Importance of employee relations to influence HRM decision making
It is a pre requisite of success of organisation to maintain healthy relations with
employees. Strong employee relations increase workers satisfaction and increase their
productivity at workplace. For this it is very important to avoid and resolve conflicts and issues
to do all activities with efficiency.
 Helps in create healthy and safe environment: Employee relations is depend safe and
healthy working environment, involvement of employees in decision making process,
commitment of workers and through effective communication process. Healthy and good
employee relations results in efficiency, motivate workers and increase their morale.
Healthy and good working conditions is a sign that employees feel positive about their
job and organisation. Resolve conflicts: There are number of situations arise at workplace where enterprise has
to face and go through a critical phase so in this good relations with employees can help
organisation in fulfilment of objectives. When an enterprise fails to maintain healthy
relations with its employees than it leads to failure of organisation because in today world
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workers one and the most important element of success of every business (Lengnick-
Hall, Beck and Lengnick-Hall, 2011). So it is very important for every employer to build
and maintain healthy relations to get commitment of workers.
 Enhance employee's satisfaction: Healthy relations with subordinated increase their
satisfaction level and a satisfied individual perform and give his best than a dissatisfied
worker. Increase productivity of workers improves overall performance of employees and
helps in reducing cost of business operations.
Managers of Aldi should give consideration on various benefits achieved by a firm after
getting and maintaining good relations with workers. This will help the for, in achievement of
goals and objectives in an easy way.
P6. Different employment legislations and their impact on HRM decision making
Employment legislation is a combination of numerous laws which define the relationship
between employee and employer. It tells what employer and employees can expect from each
other and helps in safeguarding the interest of employees at workplace. Following laws are
included in it: Employment rights act: It is one of the main and important act of employment
legislations. This act define basic rights and duties of a worker. It explains that healthy
and safe working conditions should be provided to subordinates and every employee
should be benefited with a minimum wage to fulfil basic needs of his/her life (Ployhart
and Moliterno, 2011). It is a responsibility of an employer to describe all working
conditions and all terms to candidate before he join the company. Discrimination act: It act states that every individual working in organisation should be
given equal opportunities and rights. They should not be discriminated on the basis age,
gender, religion, culture and on any other basis. Discrimination make work environment
negative and give rise to subordination, lower the morale and commitment of workers. Equal pay act: According to this two individuals should get the same pay for performing
the same kind of job. This encourage healthy and positive working conditions at
workplace and boost up the overall performance of organisation. Minimum wage act: It is another important act of employment legislations. This act
define or decide the minimum wage which should be given by an employer to employees.
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This minimum amount is decided according to the inflation rate exist in the market and
changes time to time. It help employees in fulfilling its basic needs and wants. Employee relations act: According to this act, it is the responsibility of every employer
to maintain good and healthy relations with employees (Purce, 2014). This can be one
done by treating and compensating all workers in a fair manner. Good relations with
subordinates help managers in getting employee commitment which increase overall
performance of enterprise Working time directive act: this act tell or define minimum working hour of a worker in a
organisation. If an employee fails to work minimum working hours that his employment
will be treated as illegal. Minimum working hours set by this act is 48 hours in a week.
Subordinates can do work for more hours if they want.
 Disability discrimination act: According to this act employer should provide all basic
facilities to disable employees working in an organisation. They should not be
discriminate form other workers.
For encouraging ethical work practices it is responsibility of every employer to
implement all these legislations while making policies regarding employees of enterprise.
Decisions of management get affected through theses legislations.
.
TASK 4
P7. Application of HRM practices in a work related context
Aldi is facing low productivity of employees and cost of their operations at an increasing
level . To solve these issues managers of Aldi can use HRM practices in an effective way.
HRM practices make or help enterprise in completing all activities in a effective way.
These practices can be applied to the following areas: Human resource planning: HRM practices help human resource manager in deciding
and planning about manpower needed to perform all activities of enterprise. It helps in
defining roles and responsibilities related with each and every job which guide and
support manager in recruiting right candidate for right job (Vörösmarty and et. al., 2010).
All these help organisation in achieve set objectives and targets in a easy way.
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 Maintaining quality of business activities: These practices define roles and duties of
every individual in a firm. Managers decide and provide required resources or materials
for completing given task. All these help results in maintaining quality of business
activities and products. Quality products attract large number of customers and increase
market share of company. Performance management and evaluation: Process of human resource management
involves evaluation of employee's performance. All this give and help manager in
knowing the true picture of organisation and guide manager in taking remedial actions if
required. Creation of vision and mission: Evaluation of skills and knowledge of subordinates is
done through HRM practices (Wright and McMahan, 2011). This help managers in
knowing about current skills of candidates which guide manager in setting mission and
vision for firm because fulfilment of objectives, mission and vision of organisation is
based on skills and capabilities of workers.
 Development and training: HRM practices help manager in identify training and
development needs of enterprise. Training helps in increasing skills of workers and make
them more able to survive in market, which help firm in achieve its goals and objectives
easily.
All these are the main areas in which these practices apply but other than this these
practices helps in bring coordination among all business practices (Boxall and Purcell, 2011). To
achieve fruitful results its is very necessary that effective communication should be take place at
very level of entity. Managers of Aldi can increase effectiveness of their business operations to
achieve set objectives.
CONCLUSION
From the above data, it can be concluded that managing workers and theirs activities at
workplace is the main element of success of every enterprise. It is responsibility of every
manager or employer to identify training needs of employees and conduct training programmes
to increase their skills. Talented and capable workforce is the key of success. Managers should
provide healthy and safe working environment to workers to increase their satisfaction level and
to get their trust and commitment. Functions and purpose of HRM for which Aldi must use this
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approach is given in this report. By studying all these functions it can be concluded that these are
an important part and bring consistency among all operations of business. To work in a ethical
and positive work environment it is must for every manager to comply with all employment
legislation. Practices of HRM enhance or increase effectiveness of all activities of a business
firm.
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