Human Resource Management and Innovation

This assignment examines the crucial role of human resource management (HRM) in fostering knowledge sharing and driving innovation within Spanish organizations. It specifically investigates the mediating effect of affective commitment, exploring how employee emotional connection to their workplace influences the relationship between HRM practices and positive organizational outcomes. The analysis draws upon relevant academic research and scholarly articles to provide insights into this important topic.

HUMAN
RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Purpose and functions of HRM in workforce planning....................................................3
P2 Strengths and weaknesses of different approaches to recruitment and selection ............4
TASK 2 ...........................................................................................................................................5
P3 Benefits of different HRM practices ................................................................................5
P4 Effectiveness of different HRM practices ........................................................................6
TASK 3............................................................................................................................................7
P5 Evaluate the importance of employee relations ...............................................................7
P6 Key elements of employment legislation .........................................................................9
TASK 4..........................................................................................................................................10
P7 Application of HRM practices in a work-related context...............................................10
CONCLSUION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management is used for implementing a formal working system in order
to manage people in business organisation. This is designed by managers with an aim of
increasing employee's performance to achieving goals and objectives of company. The main
work of HR manager is to focus on development of strategies and policies. The process of HRM
is also helpful in recruitment as well as selection of new people and providing them training so
hat they can contribute well in achieving goal of entity. ALDI, is the chosen organisation in the
present report, it is one of the largest seller of retail products in UK. In that, responsibilities of
HR person will be described. Along with this, the purpose of HRM and function of HRM in
workforce planning will be discussed (Kehoe and Wright, 2013).
TASK 1
P1 Purpose and functions of HRM in workforce planning
The goal of human resource management is to make strong employee-employer
relationship so that they communicate with each other well and contribute well in the success of
entity. Main purpose of HRM is to develop and retain employees so that skilled people can
perform well and support firm in achieving its goal. Below mention purpose of HRM in business
organisations: -
 In ALDI, it is the duty of HR manager to maintain good and healthy working conditions.
This helps to achieve goals and objectives of company in competitive market. Along with
this, if employees get good working environment so that they will perform well and
contribute in accomplishing aims of ALDI.
 Employee welfare is also the another purpose of business organisation that is managed by
the HR person. It is come up with the concept of providing financial and non financial
benefits to staff members (Armstrong and Taylor, 2014).
 Workers are known as pillar of any company. It is the main responsibility of HR manager
of ALDI to manage employees relations, it helps in building team sprites among them.
For that, manager of cited firm has to organise different activities and programmes for all
departments so that their workers and managers can interact with each other. In addition,
employee relationship is the key of successful organisation.
Functions of Human resource management :-

 Planning: - It is essential function that supports in planning activities so that entity can
achieve its goal. Planning is one of the important part of HRM, it is responsible to
develop policies and strategies. It seeks with pre-determine course of action. Duty of HR
manager of ALDI is to plan activities such as requirement of human resources,
recruitment and selection, training and development.
 Organising: - It means to an end. Organising refers with managing all activities and
operations of ALDI that are interrelated with its aims and objectives. Along with that, this
also include delegation of authority according to their capabilities and abilities (Guest,
2011). Organising function of HRM assistive in establishing coordination and
cooperation among various individuals those who work in ALDI.
 Directing – The function of direction concerns with encouraging employees to work hard
and perform well. With reference to this, direction helps in motivating and guiding
employees so that they can improve their performance. There are many methods of
motivating staff members i.e. career planning, developing morale, provide safety
requirements, salary administration etc.
 Controlling :- It is considered with implementation of all activities according to plan.
Controlling, helps HR manager of ALDI to put a control on performance of all
departments and compare it with another one.
P2 Strengths and weaknesses of different approaches to recruitment and selection
Recruitment is the process of find out organisational needs and attracting potential
candidates to apply for the job. It is known as positive process because there are many people
who applied for vacant profile in business unit. Apart from this, selection refers to choosing right
candidate for the job. It is called as negative process because so many candidates are eliminated
at the time of selection. There are different approaches of recruitment and selection that are as
following: - Internal sourcing – It involves recruit persons internally. Internal sourcing seeks to hire
those employees who are currently working in ALDI limited. In that, workers are
departed from one department to another in the same business organisation. Along with
this, if worker have excellent working skills and up to mark performance then he or she
will get chance to promote on higher position. The main advantage of internal sourcing
is that it is easiest or less time consuming method of recruitment (Alfes and et. al., 2013).

There is no need to take deep interview because managers already know about skills and
experience of that person. In addition, workers stay for a long term period when they get
promoted. But its disadvantage is lack of innovation, no opportunities of external
workers, dissatisfaction of co-employees because of jealousy etc. External sourcing – It is a method of recruitment when HR manager of ALDI searching
candidates through external sources, i.e. job portals, advertisements, newspapers and
trade publications, websites, campus recruiting, direct walk in etc. External sources can
be used when vacant position are not filled by current employees due to any special and
technical demand. It helps candidates to clearly understand job requirements as well as
responsibilities. Along with this, external sources helps to attract innovative and fresh
talent as to achieve goals and objectives of c ALDI (Jiang and et. al., 2012). The main
advantage of external sources is – it creates new opportunities for well skilled and
experience employees, high productivity, creation of new ideas and innovations,
enhancement of business strategies and policies. Apart from this, its disadvantage is – it
takes more time, higher costs, demand of high salary by external employees. Some
candidates are left their job if they feel unhappy with the environment of business
organisation.
 Third party sourcing – When managers take help of recruitment consultancies or any
other agencies in order to find candidates. Third party sources use various tools and
technologies for identifying appropriate job applicants. But these agencies have higher
registrations cost that is not affordable by every business organisation.
TASK 2
P3 Benefits of different HRM practices
HRM practices are useful for different departments and sections in business organisation.
It is beneficial in reporting as well as analysis of employee information. In ALDI limited, good
HRM practices are responsible for its growth and success through which managers can easily
achieve their goals. Below mentioned benefits of different human resource management
practices are as following: - Helps in assessing HR policies – The main benefit of HRM practices is to assess all HR
policies and strategies. It relates with that employees should fit in organisation's working

system as well as its strategic plan. HR manager of ALDI develop plans and strategies to
manage all activities and functions that are interrelated with goals and objectives of
company. The person also allocate required resources according to the need of operations
(Kinicki and Kreitner, 2012). In addition, it is the duty of HR manager to establish a link
between HR policies and strategies. Improving quality of services: - Good HRM practices helps in improvising quality of
products and services of company by providing training and development to staff
members. So that skills and knowledge of employees also expand as they can use more
innovate and effective techniques at the time of production. If customers get value added
products, it increases sales revenue and profits of company; through which public image
and market reputation of ALDI limited can be enhanced. Compliance with legal laws – The strategies of HRM focus on keeping organisation
compliance with all legislations and laws which relates with employees, wages,
compensation, insurance etc. It is the responsibility of HR to ensure that all policies are
legal and it follows all rules or regulations of government (Wright and McMahan, 2011).
These strategies should be adaptable, flexible and they can be easily changed according
to time or need. Along with this, HRM practices of ALDI also concentrate that
employees get healthy and safety working environment at workplace.
 Motivation and encouraged to employees – HR person of ALDI easily motivates to staff
members by providing them reward system and extra voluntary benefits. It is helpful in
order to increase employees productivity as they can perform well towards achieving
goals and objectives for business organisation.
P4 Effectiveness of different HRM practices
Practices of human resource management concerns with linking functions of HRM with
organisational goals and objectives in order to improvise performance of employees. It helps to
establish a flexible working strategy for managing overall workforce of business organisation.
Managers of ALDI limited are using HR functions i.e. performance management, long term
relationships, incentives to achieve target market and audience. Below mentioned different
factors that are used in HRM practices are as following: - Recruitment and selection – It is the most important part of human resource practices.
Recruitment and selection plays a critical role in order to identify the quality of

company's human resource pool. Along with this, recruitment is the process of collecting
applicants pool who are applying for employment in cited firm whereas selection helps
into choose one among all of these alternatives. If business organisation gets talented
people then it will impact on the sale revenue and profits margins (Daley, 2012). Training and development – For every business organisation, training and development
is as integral part for their HRM practices. In ALDI, it helps to improve performance as
productivity of employees. Companies cannot be survive in competitive market without
well skilled employees. Along with this, this is the responsibility of HR manager to
timely provide training and development to employees so that they can increase their
skills and knowledge. Training involves changes in knowledge, skills and attitude of
employees; it is a planned activity that is conducted after performance evaluation of
employees. On the other hand, development signifies opportunities that are created for
growth of staff members. Team building – HRM practices also helpful in order to built teams and groups for
various departments. HR manager set goals and aims for every team or forces their
leaders to timely achieve them. In addition, team building supports effective working
relations, reducing the role ambiguity of team members and finding appropriate solutions
towards team problems. It seems as one of most popular function that is used in group
development activities of firms.
 Monitor overall progress – It is the main role of HR person to monitor and evaluate
organisation's progress towards strategic goals or targets. HRM practices are helpful into
assessing the performance level of employees of ALDI so that they can develop their
job knowledge and skills. In addition, HRM also compare the results of staff members
and measure their success.
TASK 3
P5 Evaluate the importance of employee relations
Employee relationship are very important of every business organisation. It is a key
factor of success for managers. Good and healthy employee relation helps managers to achieve
goals and objectives from competitive market. In ALDI limited employers are responsible to
establish cooperation and coordination among staff members so as they can work together for

same target. Apart from, if workers work jointly as they can share their problems and issues with
each other. Employee relations are also helpful in improving skills as well as knowledge of
individuals; with which they can easily meet the performance level of company (Buller and
McEvoy, 2012). But a bad and unhealthy employee relations put diverse impact on growth and
success of firm. Below mentioned the advantages of healthy employee-employer relationship
that are as follow: - Increases productivity – It is the main advantage of healthy employees relationship.
Because if all staff members are work together so that it can improves their skills and
knowledge regarding any particular task. They can easily exchange all issues and
problems at workplace. Along with this, strong relations are able to develop a pleasant
atmosphere at workplace; it will increase employees morale and motivation. Business
organisations have invested into employee-employer relationship programs by which
staff member can gain experience how to maximise productivity (Camelo-Ordaz and et.
al., 2011). Employee loyalty – Good employee-employer relationship encourage a loyal workforce.
Loyalty improvise employee retention that reduces, the cost of hiring, recruitment and
training new labours. Along with this, if employees are satisfied with working
environment as they don't leave the job then there is no need to managers hire new
candidates. Quality improvement – If the HR manager of ALDI limited put his efforts on
maintaining employee relations; it results to improve overall quality of work. In addition,
good employee relations are enable to increase productivity; it also force quality of work.
Healthy employee relations also helpful to make better communication between
management and staff members, which supports in product improvement ideas and head
off problems before they become too costly for managers.
 Conflict resolution – Conflicts at workplace among workers create an unpleasant
environment for all employees. They all are not able to focus on their goals and
objectives, with that market reputation of company is also goes down (Batt and Colvin,
2011). In order to reduce conflicts and misunderstanding between staff members,
managers have to regulate training programs i.e. diversity training.

P6 Key elements of employment legislation
Below mentioned some acts that are come under employment legislation: - The employment rights act : - It is responsible in order to protect the rights of employees
at workplace. The employment rights act involves, all terms and conditions of job have
to be in writing; it will be provided to the worker within two months of joining. Along
with this, is the duty of HR manager to give healthy and safe working environment to
employees. Sex discrimination act, 1975 – This act protects employees towards any discrimination
that is made on the basis of gender. Managers don't have any right to do discriminate at
the time of selection among male and female candidates. Sex discrimination act,
concerned with training, education, employment, harassment and disposal of premises.
Along with this, it is the duty of HR to provide equal opportunities to men and women
employees at workplace. The equal pay act of 1970 – This act relates with every employee has equal right to pay
equally at workplace. It supports that female employees are also get equal treatment and
opportunities in firm. In this act employees also have right to claim against the company
if they are not getting proper wages as they were promised by the manager (Mossholder,
Richardson and Settoon, 2011).
 The Race relation act 1976 – There will no discrimination make at workplace relates
with religion, trust, values and beliefs of employees. This act supports not using
threatening or abusive words by the employer. All employees should be treated in well
mannered by the manager.
Impact of employment legislation on HRM practices: -
 If employees are not getting equal opportunities and treatment by manager, it reduces
their interest towards business organisation. This can increase the feeling of jealously and
partiality among staff members with each other; with that they are not able to focus on
goals and objectives of company.
 In ALDI limited, if HR manager make difference between male and female candidates
then it generates less productivity and performance. Through which organisation is not
able to achieve its aims and targets as well as sales revenue of company is also goes
down.

 On the other hand, if all employees pay equally according to their roles and
responsibilities then it helps producing quality products and services by workers (Crook
And et. al., 2011). Through which company is able to achieve its sales revenue and
profits from target market.
TASK 4
P7 Application of HRM practices in a work-related context
In ALDI limited, HRM practices are responsible to managing all activities and functions
of company. It can be used in all departments as well as sections of company in order to
improves employee morale and motivation. Below given different examples of HRM practices
that are as follow: -
 The main work of human resource management is recruitment and selection. For
example- if HR managers wants to hire a person for the profile of assistant manager so
he or she should have created a job description. It helps into find out right candidate for
right position. Along with this, effective HRM practices also helpful to create a positive
working environment and give favourable benefits to all employees, i.e. it is the duty of
HR person to conduct reward system in business organisation it helps into keeping
workers more productive and happy (Lengnick-Hall, Beck and Lengnick-Hall, 2011).
With this, they automatically starts to perform well and give their 100% to maintain
quality of products and services.
 Good HRM practices also useful in development of all employees; it can be able to
motivate or encourage them so that they gives their contribution towards company's
intellectual assets. For example – if workers get timely training and development
sessions, it helps in enhancing their knowledge and skills towards any specific project
(Kidwell, Hoy and Ibarreche, 2012). In addition, human resources practices builds a
flexible workplace so that employees can choose working shifts according to their
preferences.
 The another responsibility of HR to satisfying employees by giving them attractive salary
packages, compensations and extra allowances. For example- In business organisation
every person works for money. If managers are paying high salary packages to their

employees, it helps into motivating labours towards improving their performance and
productivity.
CONCLSUION
From the above mentioned report it has been concluded that human resource management
is the process of managing all activities and operations of business organisation. In ALDI
limited, the role of HR manager is to hiring people for vacant positions and provide them
essential training and development. Along with this, the present report is a brief study of all
functions of HRM that are as- planning, organising, directing and controlling. There are two
approaches of recruitment and selection i.e. internal and external sources. Internal sources are
concern with internal hiring whereas external sources relates with find out candidates through
job advertisements, newspapers etc. Apart from this, HRM practices are helpful in order to
raising organisational profits as well as productivity. It is also relates with providing training and
development, team building and motivation as well as encouraging of employees. The last part of
this report include employment legislations that are beneficial to protect all rights of workers at
workplace.
REFERENCES
Books and Journal
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Kinicki, A. and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
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Online
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[Accessed on 26th June 2107].

Importance of HRM for Organizational Success, 2017. [Online]. Available through :
<http://www.managementstudyguide.com/scope-of-human-resource-management.htm>.
[Accessed on 26th June 2017].