The Impact of HRM on Organizational Success

This assignment delves into the significant influence of human resource management (HRM) on organizational outcomes. It examines various functions of HRM, such as recruitment, training, performance management, and employee relations, and analyzes their impact on factors like employee engagement, productivity, and overall organizational effectiveness. The assignment draws upon relevant academic literature and research findings to illustrate the link between effective HRM practices and successful business performance.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Main functions and purpose of HRM...................................................................................1
P2. Strengths and weaknesses of various methods of recruitment and selection........................2
TASK 2............................................................................................................................................4
P3 Benefits to employees and employer for the HRM practices................................................4
P4 Effectiveness of HRM practices in raising profits of ALDI..................................................5
TASK 3............................................................................................................................................6
P5 Significant of employee relations in impact decision making process of organisation.........6
P6 Key legislation of employment and its impact on HRM decision ........................................6
TASK 4............................................................................................................................................7
P7 Work related practices of human resources management in an enterprise............................7
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Human resource management is a process planned to manage employees and their
activities at the workplace. Manager of HR department is responsible for functions including
performance appraisal, selection, training and development, recruitment of workers. This
function mostly focuses on the systems and policies of enterprise for leading individuals. Main
reason of HRM is to increase employee’s productivity and improve entire performance of
business. This report is based on ALDI which is one of the leading retail companies and they are
having more than 10000 retail stores in more than 18 countries as well as states. Present file is
based on direction of employees at workplace Main purpose of this study to guide workers so
their performance can be increased or maximised. Different functions of HRM are explained
here along with describing various recruitment and selection approaches.
TASK 1
P1. Main functions and purpose of HRM
Purpose of HRM:
Human resource management is one of the essential and main functions of organisation.
It assists in increasing workers performance at the workplace. To increase employee's
productivity. ALDI company managers can use this method. This will assist them in using all
factors as well as resources at a prime level and doing business operations cost will reduce
automatically. The main objective of HRM is to recruit skilled and knowledgeable people for the
correct job so that organisation can attain its set targets and goals effectually. It support manager
in evaluating candidates performance and hire the perfect and right one of the individual
position.
Functions of HRM: Human resource management is important to select and recruit best
suitable candidates at the workplace. Some of the important functions are as follows:
 Recruitment: It is the best function of HRM to fulfil job vacancies by promotion and
advertising regarding position (Bloom and Van Reenen, 2011). It gathers applicants and
conducts face to face interview to select the appropriate candidates. HRM is essential
because it assists the managers in ALDI in selecting and recruiting right person by
utilising least possible resources and time. This process also helps company owner by
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describing responsibilities and job role regard with each position which help director in
assess quality of candidates on that basis.
 Employee’s relation: In today's aggressive work environment it is an essential function
of HRM and every workers to keep healthy and good relations with other staffs. Human
resource management practices is needed because it help by resolving misunderstanding
& conflict and evaluating employees involvement & job satisfaction of organisation
(Boxall, and Purcell, 2011). It assist in managing unity movements.
 Benefits and compensation: Activities of HRM help or guide the manager in making
transparent and effective compensation packages for the workers. It is very important to
create a positive and healthy work environment by creating employees performance.
Remuneration is one of the major factors which directly impacts worker’s performance.
So, company’s director should try to encourage and make a transparent pay method so
that workers satisfaction can be attained.
 Development and training: Identify development and training need of lesser and give
them the equal is one of the best purpose of HRM. It supports in assessing employee’s
performance and providing perfect training so their quality can be magnified.
 Compliance: This is needed because it provide remuneration and take best decision to
employees regarding to the legislation is known as compliance. Within the compliance
then complaints of workers emerge and workplace environment get negative (CHUANG
and Liao, 2010). Human resource management practices assist in taking the best
decisions with compliance of set rules and regulations.
All above functions are very important and highly needed in the organisation. Directs of
ALDI need and want success and help to provide clear remuneration
Purpose and function of human resource management both are important components for
the business success. One of the main purpose of this management to achieve high growth and
success and increase product productivity. Function is define the recruitment and selection
process. In this activity company manager is capable as well as responsible to provide best
training and development and maximise the knowledgable related to the work based. They also
give fair remuneration and advantages as well as develop employees relation.
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P2. Strengths and weaknesses of various methods of recruitment and selection
Selection and recruitment is the best process of attracting high number of candidates and
selecting the best one for fulfilling job vacancies in organisation.
Internal source of recruitment: This is the best and needed method for hiring managers.
It helps to evaluate employee’s skills which are already existing in the enterprise. This approach
includes transfer and promotion. When a higher position is to be occupied then director assesses
the qualification of workers
 Strength: This is define company and workers strengths. Employees gets publicity than
this maximize their motivate and morale them to perform their best. This recruitment
method is very important which help in decision are taken at fast speed without spending
more time. It advertised as well as promotes employees loyalty and assist director in take
perfect such as accurate decision (Crook and et. al., 2011). Principal of this method is
very important because it checks improvement of workers by promoting them on
individual higher level. Weakness: As every workers are chosen from within the organisation that's why and it
encourage capable and new person from outside the enterprise. This approach not neglect
to supply product in effective all the time.
External sources of recruitment: Job vacancies are fulfilled from the outside of
organisation according to this method. Company manager have different power and they use
various factors for inviting the new candidates with the help of advertisement and promotion go
to universities & colleges for hiring.
 Strength: External sources are very important and they have some strength for using this
approach. This give choice to director to choose the best and knowledgeable applicants.
External source take innovative and new plan at workplace. As new applicants and
candidates are more capable & skilled so this assist organisation in attaining its goals and
objectives more easily.
 Weakness: Biggest weakness of this method of selection and recruitment is that it
involves high cost and time as well (Daley, 2012). This demotivate the employees of
organisation and creates misunderstanding among innovative and existing candidates.
By evaluating all strengths and weaknesses of all concepts of selection and recruitment,
ALDI can use both the methods because it provide best outputs.
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Selection approaches
Systematic approach: This is the one of the important and popular concepts of selection.
ALDI manager follows a systematic method to choose the best candidates and it assist in destruct
business manager during the activity.
Unsystematic approach: Manager has several roles and responsibilities to select one
resume from many applicants. This concept compare it from the quality requirement to perform
the vacant position.
ALDI company manager used systematic approach because it is very important for company
success. In this way, that manager make best selection process and recruit knowledgeable person
with the support of communication channel eg advertisement and promotion etc.
Above all methods are very important and they have strength and weakness to the process
of recruitment and selection. This process is very necessary for the every business to achieve
high growth and success. Internal factor is important for recruit and select qualified candidates in
the vacant position. From the same, this type of sector provide various communication channel in
inside such as training, development and etc. external factor also play an essential role for the
process of human resources management they also give various communication channel such as
promotion, advertisement, publicity and other ways.
TASK 2
P3. Benefits to employees and employer for the HRM practices
Performance management, recruitment and selection of workers all this purposes come
under the human resources management practices. Those are assist an organisation to utilise its
factors at and perfect floor. It help in achieving effectiveness by reducing production cost. HRM
practice is needed because it provide different benefits to employer and employees. Company
need to apply the same approach (Gruman and Saks, 2011). There are several benefits which are
applying by both employees and employers: Assist in making planned decision: Managing activities and actions of their workers in
an enterprise give important and useful information to high level directors. This assist
management in planning and deciding future plan as well as activities of business. Preset
future process help in reducing operations cost and brings unity among whole actions of
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an organisation. ALDI director need to provide remuneration such as consideration on
this sources to receive maximum benefits of HRM practices. Generate good and healthy working environment: Moral practices motivated through
method of human resources management. All this assist directors in fulfil worker wants
and needs which influence employees to develop their performance. Those are create and
make positive and healthy work envelopment Determining training need of employee's: Evaluation of employee’s performance is one
of the important and main function of HRM (Guest, 2011). This assist directors in
determining training needs & wants of company staff members and increase their
knowledges as well as skills by managing training events for them. Apart from all this
assist business organisation in achieving aggressive advantage in workplace. Motivate employees and their productivity: Healthy and ethical human resources
management practices maximize satisfaction floor of workers. It help to influence and
motivate employees productivity in a positive way. By activating ALDI employees can
increase product and service quality. Improve and develop employee’s skill: Employees are training and motivating is give in
order to increase their knowledge. It assist business entity in employ its factors at a prime
floor. Create flexible work environment: HRM practice interpret and analyse company
environment which assist business directors in changing process and policies of doing
task at a quick speed.
 Promote and create positive environment workplace: It is a one of the best benefits of
HRM practices that it assist in satisfying employees needs and wants and destruct social
control and at the same time motivate pay for performance and many methods (Huselid
and Becker, 2011). All this assist in generating a positive task environment equal can be
complete of directors of ALDI to generate a positive working place.
ALDI company employees and employer can be advancements from this benefits it
director of an organisation can provide specific attention to whole important concepts of HR
practices.
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P4. Effectiveness of HRM practices in raising profits of ALDI
Human resource management practices a vital role in take consistency and generate
combination among whole activities company department. It help to measure effectiveness event
in many business its productivity and profits can be measured. Within the practices then
organisation cannot be achieved its efficiency and objectives. it is needed for director of ALDI
and they apply this method in a effective manner so that planning can be attained in firms
operations at the equal time duration. Organisation can get aggressive benefits by providing high
product quality to its buyers at less price.
HRM assist in choosing future actions of business organisation and reduce risk and
complexities of work place and make healthy and positive work envelopment. All this support
business enterprise in identifying its quality as well as strength and use in an impressive manner
to achieve different benefits in workplaces (Jiang and et. al., 2012). Implementation of human
resource management practices assist in assemble the effective strategies for fulfilling the
objectives and mission. This also give support to director during the effective process of
selection and recruitment. Which assist in recruiting candidates skilled for organisation activities.
It help in getting values and targets of entity. All this assist in maximising productivity and
profits of organisation.
There are different HRM practices that identify the product productivity and company profit.
Development and training, employee empowerments and other points. So this practices give the
better product quality and increase the organisation goals and objectives.
Workers empowerment: This is define as the main and essential practice to attaining objective
and goals of the enterprise. Company employees identify their ability and power in order to
create new product. HRM determine the productivity and profit of the business.
Development and training: This is also best part to increase the business success and growth in
an essential manner. In this factor mange is responsible to give best training and development t
the employees so they make their efforts in the business.
TASK 3
P5 Significant of employee relations in impact decision making process of organisation Every
personal working in an enterprise trying their best and create a positive relations with their
employees. In this way employees are the most pillars of success of many activity of an
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organisation. So it is a not only a role and responsibility of a director to keep positive and healthy
working relations workers but it is needed situation which should be complete every business. To
keep better relation with the workers as well as directors of ALDI and provide many benefits are
as follows: Productivity: It is very essential and generate a grateful status surrounding of ALDI and
support in maximising product manufacturing process for profit maximisation (Kehoe,
and Wright, 2013). Above mentioned company invested income on workers relations
events to maximize their performance as well as productivity by pleasing their buyer’s
needs and wants. Employee loyalty: It is one of the major part and it is very important of employee’s
healthy relations. It is needed because it creates a loyalty towards enterprise and trying to
rising the whole organisation by increasing their benefits. Reduction of conflict: Working environment is much positive and efficient it
mechanically resolve the conflict by increasing it consequently to generate a combined
environment. It help in create mutual understanding between lower and higher floor
authority is very advantageous and useful for over all enterprise. It also create positive
and healthy interaction between them. Communicate effectively: It is also very important key factor which play essential role in
a process of decision making because proper interaction is necessary for corrective and
quick decision.
 Hedging uncertainty: it is very useful and helpful in reducing and controlling the future
uncertainty as well as it support and motivate workers to face difficult situation by
approaching opening barriers of an enterprise (Lengnick-Hall, and et. al., 2011).
Therefore employee’s positive and healthy relationship is very important for ALDI to do
away with success.
Role of collective bargaining in employee relation
bargaining is define as a negotiating is complete between employees and employers.
Workers are described by a collective negotiation unit. Workers from a group, which is a team
who band with each other and to defend their rights and duties. There are several role of
collective bargaining are as follows:
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 To maximise the economic management and union strength
 Secure a fair and prompt fair grievances which is very important in the employee
relation.
 One of the main role to attain an effective and efficient plant operation.
 Promote the prosperity and stability of the company.
 To give a best problem solution when they boost.
Those are very important and necessary role which provide the buyers satisfaction as well as
increase employees relation in the company.
P6. Key legislation of employment and its impact on HRM decision
Employment legislation is a combine of all regulations and laws interconnected with
protect the workers interest at workplace. It determine the roles and responsibility of employees
and employers each other. There are many acts are as follows: Employment Rights act: Under this act is an important and main legislation included in
the employment law. This act also describe basic duties and rights of an employee at
workplace. This law conditions determine the safe and healthy working environment
should be support to assistance during their task, apart from this every and each personal
should be advanced from discrimination and minimum wage should not be exercised by
worker. ALDI manager applying this legislation and can generate better working
positions. Equal pay act: It is a very important act that says two employees who are doing equal
work, it should be advancements from the equal wag (Ployhart, and Moliterno, 2011).
This assist worker in satisfy employees. Under this act generate healthy and positive
working environment. Discrimination act: According to this act determine many rules and regulation. Company
staff members should not be differentiate on the basis of age, culture, gender and on any
another ground. Same opportunities should be supported to employees on discriminate of
transfer & promotions and on several place. It also make negative activity environment
and decrease productivity as well as morale of employees. Minimum pay act: Related to this act decide a nominal amount which should be provide
by company employer to each workers. This amount is set by government regarding to
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the inflation rate subsist in the market. It support their employees in complete their basic
need like shelter, cloth and food etc. Work time directive act: Employee's minimum working hours decided by this legislation.
Regarding to this act a workers has to do their work minimum 48 hours (Purce, 2014).
After that his job will be known as legal.
 Disability discrimination act: There are several subordinates who view in an organisation
should be welfare from different performance regarding to this act. It assist in protecting
the interest of more person.
By taking best decision regarding to this legislation act that workers of ALDI generate a
healthy and positive work environment and it enhance workers’ productivity in a positive way.
Aldi is a retail store in the United kingdom. In this company many problems related to the equal
pay, work time, disability and discrimination etc. in this situation human resources management
practices play an important role. Work time directive act is known as legislation which is highly
effect on the HR practices. The employees of the cited company are not satisfied the
remuneration because company not give the equal pay to the every workers.
TASK 4
P7. Work related practices of human resources management in an enterprise
There are several practices of HRM which can be used by the director of ALDI to
maximize effectiveness of business operations. Theses assist manager in taking curative activity
in an organisation assist in bring interrelation among all actions of different sector. Human
resources management practices can be applied on following locations: Manpower planning: An organisation want as well as need high number of workers for
fulfilling different business operations. In this way HRM function assist directors in
selecting and recruiting skilled such as right candidates for performing position. It
support in explaining duties and responsibilities about with each task which assist high
authorities in engaging capable and skilled candidates. Support in maintaining quality of business operations: HRM concept define the
individual roles and responsibilities (Vörösmarty and et. al., 2010). It support in
maintaining business product and service quality. In present business workplaces supply
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high product quality to buyers in an essential of whole organisation. ALDI can do the
equal by applying this concept at workplace. Help in creating objectives and vision: Activities of HRM assist director in knowing
talent and capabilities at workplace which support to high level manager in making
targets and objectives of an enterprise. Evaluation of workers performance: Those are the essential and min activities of HRM.
This can be used by the ALDI manager and knowing regarding the right condition of
organisation. It can be taken by company director to improve the employee’s
performance. Decision making: HRM manager control as well as manage all activities related to
workers environment in an organisation. All this support director in knowing the
weakness and strength of an enterprise. At the equal time it assist managers in examine
the challenger's condition in market. It is needed because it help owner in gathering
relevant data and different information.
 Training and development: Employees or workers are focus on the HRM concept
(Wright and McMahan, 2011). ALDI director used this approach and they conducting
training programs foe staff member. Workers skills and knowledge can be achievement
or enhanced of enterprise goals can be complete in an easy manner.
 Flexible working: It is also essential practice of human resource management which are
play by manger in the organisation. It is a best form of working which is suit a workers
needs and wants for example: having finish time, flexible times etc. every workers have
the lawful precise to substance limber working not just carers and parents.
 Performance: It is a best part of the work related practice which is very important. From
the same employee's relation help the cited company manger to identifying the
knowledgable and skills of the workers. All this support in increasing the quality and
giving the high satisfaction for the buyers.
All these are the important as well as helpful function of every organisation on which
HRM practices can be practical. Efficiency of ALDI business operations can be increased by
applying the approach of HR. By providing remuneration such as consideration on main location
of HRM director of ALDI maximize whole effectiveness of all company operations.
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CONCLUSION
As per the above mention report it can be concluded that in present environment, workers
are play vital role in every organisation. It has become an essential part of every industry to
control and sustain activities of its staffs and guide all employees in a proper manner so that
objectives can be complete. ALDI manager can used HRM practices in an effective way and
reducing conflict between other persons. This will support industry in maintain and built positive
and healthy relations with employees. Every organisation manager need to make policies and
decisions about workers regarding to different employment legislation. By this ethical and
effective human resources management practices can be increased which assist in generating
healthy and positive work environment and encouraging workers and their activity so that
workers’ productivity can be raise.
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REFERENCES
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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.
Crook, T. R. and et. al., 2011. Does human capital matter? A meta-analysis of the relationship
between human capital and firm performance.
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
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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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Vörösmarty, C. J. and et. al., 2010. Global threats to human water security and river
biodiversity. Nature. 467(7315). pp.555-561.
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).
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