Aldi's Human Resource Management Practices

The document provides an overview of Aldi's human resource management (HRM) practices, including recruitment, training, development, performance appraisals, motivation, learning events, payroll, and compensation. It highlights the importance of HRM in ensuring effective organization development and achieving business goals.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and the functions of HRM in context with workforce planning and resourcing for
Aldi.........................................................................................................................................1
P2. Strengths and weaknesses of different methods to recruitment and selection for Aldi.. .3
TASK 2............................................................................................................................................4
P3. Benefits of different HRM practices in Aldi for both the employer and employee.........4
P4. Analysis of successfulness of different HRM practices in context to raising organisational
profit and productivity............................................................................................................5
TASK 3............................................................................................................................................6
P5. Importance of employee relations in respect to influencing HRM decision-making......6
P6. Key factors of employment legislation and its influence upon HRM decision-making.. 7
Task 4...............................................................................................................................................8
P7 Application of HRM practices in a work-related context.................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management has emerged as a crucial function in an organisation. It is
created to maximize the performance of the staff through adopting various strategies. It has to do
with the management of people and the resources which are available to the company in the form
of assets. It is the personnel department of a firm who deals with hiring, administration,
management and training. Other activities like planning, selection, orientation, appraisal,
motivation and remuneration is also carried out by this department (Hendry, 2012). This all
report will be describing about various functions and different responsibilities of HR. How they
deal with workforce planning, performance management and rewards system will be detailed in
this. It is important for HR department to maintain a good relation with employees and making
them engage in different practices which would enhance their interests. To better understand all
the scenarios, Aldi has been taken. This company is one of the world's leading grocery retailer
with more than 7000 stores across 70 countries (Armstrong and Taylor, 2014). It has started its
operations in UK since 1990 and currently have over 500 stores. As a newly appointed human
resource manager, its prime duty is to manage the staff for the new branch which is going to
open at Wembley central.
TASK 1
P1. Purpose and the functions of HRM in context with workforce planning and resourcing for
Aldi.
In an organisation HRM is mandatory because it aligns all the activities and resources in
a sequence. They have a important function of workforce planning which involves arranging the
the needs and priorities of the company with those workforce to make sure it can meet its
legislative, regulatory, service and production requirements and organisational objectives.
Different people are appointed in Aldi and they are given various job according to their skills and
capabilities. HR department test them on different grounds and make sure that certain candidate
posses few qualities which they want in them (Boxall and Purcell, 2011). Those qualities are
concerned with the functions of the organisation. It is observed that companies struggle with
workforce planning process as it involves sequencing talent management with business goals.
For this hiring procedure should be properly followed and monitored because any wrong
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recruitment can damage its reputation in the market. Such things will stops them in gaining
competitive advantage.
Before making any strategy they should outline a document which will reflect the quality
of a ideal employee and what jobs they will going to offer. As Aldi is opening their branch in
Wembley central, so as a human resource manager its is primary duty to make a strategy of
workforce planning. For new store they will need employees, so a research team should be made.
This group will find out various positions and functions in the store which will be carried out. So
according to that what kind of employees they want (Daley, 2012). A job profile will describe a
potential employee and what will be their job. For example; they need a person who will be
responsible for billing in the store. For this they need a person, who is good looking, have
knowledge of accounts and basic computer skills.
Other than workforce planning they have also job of resourcing in Aldi. Employee
resourcing is a process of addressing the needs of current employees while taking care of the
future scope. There are some activities which focuses on the tasks related to recruitment and
proper deployment of the employees. They plan, recruit and deploy the people for various
functions. In planning procedure, it is important to posses both clear short and long term goals.
HR department looks at the production, services and pre assume the coming situation. On the
basis of this they hire candidates. In recruitment task they fill the existing positions which
requires a special skills. For example; Aldi will be going to recruit an advisor who will be
guiding people that what will be better for them. So they will be looking for a person who knows
the brand value and its benefits in the current scenario (Bratton and Gold, 2012). The same
person will be having knowledge of the upcoming food items and their nutrition values.
Employee resourcing not only deals with the recruiting and selection but in the same they
also measure the performance. An analysis of the performance of the staff in Aldi and this can be
done through feedback. After evaluating the situation they comes with change management
program. This improve the performance of the employees and the area where they are lagging
behind.
In a business HRM has various functions which they have to perform in order to achieve
organisational goals and objectives. They have to plan, develop and administer policies and
programmes. They make sure that human resources are used in proper manner. It deals with the
areas concerned with the employees such as hiring, training, development, compensation,
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motivation, communication and administration. Through hiring and training they make sure that
right employees are hired for the company and after that they are given training so that they can
adapt in the environment of the organisation. The qualities and efficiency of the existing
employees can be development so that they can work more effectively. Such practices will
increase productivity and profitability of the company. They make sure that a healthy
relationship between the employees and employer are maintained which is necessary for the
proper functioning of the firm. They ensure that those staff who are working well should be
motivated through some kind of appraisals.
Recruitment & Selection:- Recruitment is the process which includes captivating,
screening and selecting potential and qualified candidates based on the objective criteria for any
specific job. With this process the manager try to attract the qualified applicants and to
encourage the unqualified applicants to opt themselves out. With these, manager can reduces the
costs of mistakes.
Orientation:- To ensure that the staff can adapt or adjust according to the working
environment orientation program is organisation which includes the aims and goals of the
company and how they can long and short term goals.
Training and Development:-Through the training and development HR manager try to
improve the existing and future performance of the a staff by increasing their ability through
certain educations and seminar events.
Managing Staff Relations:- It is the HR manager who organises certain activities which
will assist them in knowing an employee at the personal and professional level as it promotes
healthy and balanced relation between the staff and employers.
P2. Strengths and weaknesses of different methods to recruitment and selection for Aldi.
Aldi while recruiting and selecting its employees adopts different methods of it. For the
new store they can admit staff through internal and external approaches. Internal recruiting is all
about hiring the employees within the organisation (Budhwar and Debrah, 2013). They can
promote and transfer their current staffs. For this they can check their past records and skills
which gives a insight about their qualification, performance and experience.
Advantages of internal recruitment approach
Aldi will experience different benefits of internal approach as this will increase the
motivation of the staff and they will work more efficiently. They have always focused on
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providing opportunities to their current employees (Berman and et. al., 2012). If they have to get
success in the new branch area, they should give chance to an experience person who is already
part of their organisation. It will also reduce the cost of training because they will be well aware
about the environment.
Disadvantages of Internal approach
Those people who will not be promoted will feel low. Their morale will go down and
bring unhealthy competition among them. Such approach might cause conflicts, if any candidate
that shows more potential to a person who is serving in Aldi from years. This will happen
because their ego's will clash. Basically this encourages political infighting among staff of Aldi.
Aldi can also recruit new employs from different places depending upon the type of
employees they want. External hiring approach involves hiring of the staff from outside of the
company.
Advantages of External recruitment
This approach gives them various advantages because through this they will get variety
of people. Those who will apply for different job roles, might have unique ideas and innovation
which will be useful for the company (Sparrow, Brewster and Chung, 2016). As they have
described what kind of employee they are looking for, so according to that people will apply.
Disadvantages of External recruiting
Although there may be skilled and qualified candidates but still there are some
disadvantages attached to it. Aldi limited don't have anything to measure their past experience.
They are not sure that will they perform according to the organisation demands and will able to
settle in the company's environment. Candidates recruited from external approach requires
training, which increases the budget. This is generally an expensive procedure.
TASK 2
P3. Benefits of different HRM practices in Aldi for both the employer and employee.
HRM activities are considered useful in almost every firm because it
is used to manage the people and resources present in the company.
Without organisational coordination through HR operations, handling staff
would be difficult, which can make employees dissatisfied. Everyone wants
to work for an organised firm where they can feel energetic and their
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demands can be sorted out. HRM develops a positive working environment
through different policies, keeping their workers happy and productive. This
can be achieved through rewarding those people who are constantly
performing well. A reward system should be introduced in Aldi for
deserving staff. Such thing will create a positive image of Aldi in the minds
of people who are contributing in their operation, they will try to work for
efficiently (Storey, 2014). Workers knowledge and skills can help employers
in gaining competitive advantage in hospitality sector. Effective
organisational capitalize on this positive effect of HRM by helping
employees improve.
Today's staff desire for different work place than it was in previous
century and some of them leave the organisation due to this reason. HRM
practices makes sure that they provide a better working place, which is
flexible. That means it should have all the necessary things which would
benefit employees. This also assist employers to retain their employees,
which reduce the cost of budget for recruiting purpose. A flexible workplace
includes flexible designs, environments, assignments, schedules,
composition and locations concerned with location. This will support the
lifestyle of the employees.
One of the important task of HR is to motivate the workers working in
Aldi. Motivation can be done through different practices like giving them
training, rewards and organising different activities for them. Employers
want to earn profits and a healthy environment because they know if all
things will be managed properly they can reach their goals (Meredith
Belbin, 2011). HRM practices brings a healthy relationship among
employees and employers. Performance management is the procedure by
which managers and employees work together to plan, monitor and review
an employee's work objectives and overall contribution to the firm. Human
resource has a crucial role in designing and implementing performance
appraisals. The criteria of the performance appraisal needs to be clear and
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transparent. HR department needs to coordinate with the reviewing bodies
to make sure that appraisals are done on time and the deserving employees
get them. There should be a system where the achievement of the
employees are measured according to its responsibilities.
P4. Analysis of successfulness of different HRM practices in context to raising organisational
profit and productivity.
Aldi is constantly working on improving their HRM practices so that they can achieve
competitive advantage and increase profitability. These includes employee involvement, training,
empowerment, compensation and rewards. For understanding the effectiveness, someone can
analyse the relationship between HR practices and performance of the Aldi.
HR practices involves training, job design, employee skills, staff attitudes, etc. All these
have impact on the performance of the organisation and helps them in increasing productivity.
Aldi can achieve targets if they properly use their their personnel. HR practices are linked with
different outcomes such as productivity, quality, turnover, market value and profits. If Aldi
wants to achieve long term objective they have to properly align all their assets and human
resource. For better outcomes and positive results Aldi have to manage their staff skills in right
direction (Guest, 2011). For financial growth activities like recruiting, selecting, safety,
training and communication activities should be done effectively by HR department.
Human resource policies or strategies should be totally focusing on business profitability
and productivity. They constantly research and analyse different areas of the Aldi and make sure
that all is going well. This body make sure that any conflict arising should be resolved as quick
as possible because this may create further tensions. Areas like sales, counter, marketing &
promotion and quality are working in a proper manner ensures that Aldi is full capable of
handling any negative situation in future. Their HR managers should be dynamic and flexible in
assuming the upcoming situation which could affect the profitably and productivity. Review and
analysis of different sector in the stores, relaxes them that they are in good position. Whenever
they feel that a particular area of the company need some capable staff, they recruit a right
employee. On regular interval, training session should be organized which make sure that
workers are capable in handling various situations (Wright and McMahan, 2011). How to
get most out of the personnel, is the main aim of the HR practices which they have been
successful.
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TASK 3
P5. Importance of employee relations in respect to influencing HRM decision-making.
Every person in the work place shares a relation with their upper authority. People need
someone to whom they can talk and discuss ideas. Employees are the asset of the company, so it
becomes important for the employers to maintain good relationship with them. Keeping healthy
relations in the Aldi is a must requirement for success of it. Strong relationship brings high
productivity and satisfaction in employees and employers (Jiang and et. al., 2012). It deals
with handling and resolving the issues affecting the growth of the Aldi. If they want to make a
create healthy relationship, a positive environment has to be developed. It is the duty of HR
department to make sure that all is well in between the employees and employers. They
conforms that there is safe and healthy working surrounding, where staff can feel secure. Other
factors like motivation through increment in the salary, rewards, fun activities and effective
communication system for workers gives an extra benefit. Personnel working for Aldi feel
proud to be part of such firm where they are valued by the employers. This signifies that they are
feel proud about their their role and identity in Aldi. In spite the strong relation their might be
situations where management relations are hampered and affected the decision making of the
HRM.
There might be situations when workers don't behave as per the instructions of the
managers, so this will be employee indiscipline. This include behaviour, performance not up to
the mark comes in that (Renwick, Redman and Maguire, 2013). When such situation
arises in front of management they are free to take any decision like terminating the employee or
before this they can give him a notice. A proper training can also be entertained in such scenario.
Workers also want that Aldi management team should provide them safe working
environment, treat them fair, include them in decision making and gives them proper incentives.
For this they can start a feedback and employee grievances system where they are free put their
demands in-front of the management. When the staff fails to meet the expectations of goals,
targets and self-respect. Such situation brings stress in employee and a communication gap
between them leads to worse situation. HR department should analyse the relations and discover
possible measures to improve the situation. They have made strategies and policies by keeping
employee relation in mind, this will avoid any conflict.
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P6. Key factors of employment legislation and its influence upon HRM decision-making.
Government of almost every nation has made some laws, which has great significance in
a company. These employment legislation have some factors which widely influences the
decision making of human resource department. Such regulations are directly connected with the
components of Aldi like labour relation, wages and retention. So its primary duty of the
organisation to make notice of these and make sure that these are properly followed by them.
Making sure of these laws would improve the decision making of the HRM (Kehoe and
Wright, 2013). Better practices can be followed from them and will assist them in proper
functioning of the organisation. Below mentioned are some of the laws and legislation which
would increase the profitability and productivity of Aldi.
Anti-Discrimination
In the 7th clause of civil rights act of 1964 states that no workers should face
discrimination on any of the background like colour, religion, gender and their nationality. Aldi
is a big retail chain spread in different countries mainly European nations. Their HR department
should be flexible in making sure that all the stores should does not comes over these factors. For
that they can make small groups representing the interest of staff. They should not terminate any
employees on the basis of mentioned grounds.
Salary and Working Time
People who are giving their services in Aldi are happy because company makes sure that
all the employees gets proper wages. As they follow hierarchy in work structure, so according to
it remuneration are set on different backgrounds like which post the person is on, what kind of
work he is doing and from how many years he is serving the organisation. Fair labour standards
act has defined the minimum wages a company has to offer their employees (Mellahi and
Collings, 2010). It also state that whatever money Aldi is giving to their personnel should be
revised on periodic interval. HR managers should make sure that continuously monitor the wages
paid to their workers. Amount given to the employees is directly linked to the working hours in
Aldi. Any person who is working for more then 40 hours should be considered overtime and
should be paid according to it.
Leave Provisions
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Law related to leave states that, an employees is allowed to take 12 weeks holidays in a
full year depending upon the conditions. It can also be taken in account when health of the
worker is not well. HR should primarily notice this and should aware people working in Aldi that
they are entitled for leave up to to these days.
Medical and Disability
Disability come from natural causes and can affect the life of a person. So making this in
notice a law is made which makes sure that person with any disability should not be deprived of
any behaviour (McWilliams and Siegel, 2011). He should not be discriminated on the
basis of their disability, so human resporuce department in Aldi should take preventive measure
to stop any discrimination.
Task 4
P7 Application of HRM practices in a work-related context.
All the practices of HRM are concerned with training, development,
performance appraisals, motivation, learning events, payroll and
compensation and etc. In order to increase their profits they are expanding
their market in the countries which are on urge of developing. So for this
they have to admit new employees who can contribute their share in the
growth of Aldi.
HR manager have to design a plan which will be focusing on hiring
individuals so all the department does not face any labour shortage. For this
the first step they have to follow is to analyse the job. Through this they will
get to know what all this and qualities are required to complete any
operation. Its value in the organisation will be analysed and after that there
will be advertising of the vacant lying post. This will be done on the job
websites because most of the candidates surf on these sites for the vacancy.
After the smooth process of recruitment and candidate will be appointed.
Whenever the organisation will feel that there is any vacancy they will
follow the same process and will try to choose the best candidate who can
fit in that role. HR department gives training to the new as well as the
existing employees. This will help them to overcome the issue faced by the
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organisation. All the practices of the HRM should be emphasised ion
improving the quality and efficiency of the company and this will also help
them in achieving gaols & objectives.
HRM practices in Aldi holds a key value as they manage the human resources and ensure
that all things are going in right direction without any issues. In the recruitment and selection
process the management of Aldi will be looking for the needs and requirement of staff at
different department and then they will analysing the type of job and the person required for it.
For this they will be developing a job description and person specification. A team will be
selected who will be looking after all the recruitment and selection process. They will be judging
the staff on the criteria which they have decided and the past experience which the candidate
had.
CONCLUSION
It can be concluded from above report that human resource management is necessary for
effective development of organisation. Aldi brand is involved in serving its product in retail
sector. Company have to recruit various sales person, good decision makers, leaders and
manager to control such a huge product line of firm. Company is continuously engaged in
motivation and developing new skills in workforce of venture by organising various training and
development programme. Various legislation introduced by government of UK has to be
followed by Aldi in order to reduce risk from any legal complication. Trade union controls and
guides organisation to mange its human resource practices effectively. Organisation follows
various legal rules in order to provide safe and secure working environment to its workforce.
This will results in maintaining good employee-employer relationship. All these human resource
management practices of business entity helps in increasing employee engagement and
increasing profitability of firm.
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REFERENCES
Books and Journals
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