Contents INRODUCTION.........................................................................................................................................3 L O 1...........................................................................................................................................................3 P 1 Purpose & function of HRM, applicability to workforce planning....................................................3 P 2 Positive and negative aspect of approaches to recruitment and selection........................................5 L O 2............................................................................................................................................................6 P 3 Benefits of HRM practices for employer-employee...........................................................................6 P4Effectiveness of different HRM practices in terms of raising profits...................................................7 LO3............................................................................................................................................................10 P5 Importance of employee relations with influence on HRM decisions..............................................10 P6 Key elements of employment legislation and its impact on decision-making...................................11 LO4............................................................................................................................................................13 P7 Application of HRM practices in work-related context:...................................................................13 References.................................................................................................................................................15
INRODUCTION Human Resource Management is an important technique to manage people in an organization in such a way they lead the business to have a competitive advantage over firms. It is concerned with the personnel management within the company. The basis function of HR department is to achieve success by human resource (people) of the organization. HR Department looks after recruitment and selection, training & development, performance management, organizational change and maintaining industrial relations. Aldi is German based discount supermarket chain founded in 1946 by two German families. It has over 10000 stores in 20 countries. The chain was founded by Karl & Theo Albrecht.The company deals in food and beverages, household essentials and sanitary products. The study includes the purpose and function of HRM and their applicability to workforce planning, strength and weakness of various approaches to recruitment and selection, benefits of HRM practices to employer-employee and their effectiveness in raising profitsfor the organization. Employment Legislation and its impact upon HRM decision-making. L O 1 P 1 Purpose & function of HRM, applicability to workforce planning Recruitment & Selection:Recruitment means screening and selecting the most qualified candidates based on required skills for a job. This process aims to attract the qualified applicants. Before recruitment process, the organizations must analyze the number of employees needed by the organization. Forecasting of employees depend upon the short and long term goals of the organization and their annual budget. This process is crucial for organizations as it’s minimize the problems emerging out of incompetent, under qualified and unmotivated employees. As firing the incompetent employees and again hiring a new employee is expensive.
So proper planning of this process will lead to proper workforce planning. Selecting right person for the right job is what Aldi needs to do. Maintaining flexible working environment:It is the duty of HRM to give flexible working environment to the employees to make them feel comfortable and friendly with workplace and work environment. The basic role of HR Department is to motivate the employees. It is found that due to the lack of motivation employees don’t participate in achieving the goals of the company as essentially they can do. HRM should bring some new changes in giving financial and non-financial benefits to motivating employees of various departments. Employee Welfare is also a major concern of HR team as this promotes job satisfaction. The organization’s flexible working environment will help retain employees and enhance them in achieving organizational goals. Aldi must work on giving flexible environment to employees to do their job so that they never leave the organization. Employee Relations:Employees are the backbone of any business. Maintaining employees’ relations is something important and crucial functions of HR Department. It helps in boosting employee relations and has the power to channelize their behaviors and work. Management should hold some activities which will help the employer and employee to know each other at some close and professional stage. Properly maintaining employee relations will lead to a healthy and balanced work environment. Employee relations are the key to successful working in Aldi. Training and Development:It is the most crucial functions of HR Department. Training is given to improve the present and future performance of the employees by providing them with skills, knowledge of a subject that is needed to increase the efficiency of employees. Through training and skill development employees feels confident and motivated and that helps the organization in achieving the goals and objectives effectively and efficiently. By training employees gain much knowledge about the concept that prevents from duplication of work and wastage of resources. Orientation:Orientation is an important part of HR. This is the basic step to help the employees to get comfortable with the new organization environment and job. Program should consist the objectives of the organization and help the employees to attain long term and short
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term goals. The basic feature of program is to let know the employee about their duties and responsibilities, job role, job description and the relation with everyone. Aldi focus on having good orientation program for employees. P 2 Positive and negative aspect of approaches to recruitment and selection Recruitment It consists of internal and external recruitment. Internal recruitment means hiring people from inside the organization that lowers the cost of recruitment and the employer knows who they are getting as they already know the previous employee and their work, their capabilities so they can work on them accordingly. The employees will be motivated that their employer trusts them and their abilities and this develop self-confidence in them. It makes the employers looks more attractive. The disadvantages of internal recruitment can create issues in between colleagues and this effect the environment of the organization. This will limit the employer choices to hire people; it can easy and quick to do but same it would be difficult. And then you have to hire another person it place of the personnel you chose to promote. External Recruitment has advantages such as it increased chances of employer to choose the best talent from the big market. Employer can choose fresh and skilled talent that has the new knowledge that is needed for the growth of organization. The new talent will have creative ideas andcompetitivespirit.Hiringpeoplefromoutsidewillreducetheinternalpoliticsin management. It is fair to hire the new talents as they help the organization to grow further while being effective. The disadvantages are this process is very expensive and carry high risk as the new the employee less understanding of the company’s process. It is time consuming process. New employees can find it difficult to adjust with existing employees and this will create issues for the employers. The agencies from where the new candidates are hired is not trusted so this will allow legal risks as well and then it will cause problem for the name of the company. SELECTION Selection consists of interviews and psychometric test. Interviews basically means checking the confidence of the candidates, knowing about their experience, about their interests and check their knowledge and thought process and see if they will be suitable for the organization,
weather their goals and objectives match with the company’s goals. They are more personal in nature. The interviewer can ask any question to the candidate to know basic detail and the interviewer check the confidentiality and validity of the fact written in the resume or where any detail in asked. The disadvantages can be it is very time consuming process, interviewer can be biased. Certain skills that are written in the resume need to be verified and checked so that factor can be checked. It can be a possibility that the candidate fakes try to impress the panel. Psychometric test is taken to check the emotional and intellectual abilities of the candidates; this reveals the personality trait of employees who is shortlisted for a post in the organization. L O 2 P 3 Benefits of HRM practices for employer-employee Flexible Environment:As employee considers organizations as their second home, they need to feel like one there. The environment should be so flexible and smooth that the employee enjoys coming daily. The workers need to feel a sense of belongingness and not being a slave. As the employer wants to retain its best talents, they have to give them a flexible and nice working environment to work in. There should be flexible design of everything i.e assignments, teams, schedules’, locations. This will benefit employees as they will like the surrounding and they will never leave the company, as they are gaining respect and are happy working their. It will benefit the employer as the best people will not leave and the environment will be cool and comfortable to work. Learning, Training & Development:The employees need training sessions to enhance their knowledge and gain new concepts prevailing in the world. Employees feel motivated and this boosts their confidence to work and make them more effective and efficient. Through learning employees develop their abilities to perform a task and even help organization in achieving their goals effectively. This benefits employers as after training there will be no duplication of work, no wastage of resources, more productivity, more efficiency and the training benefits employees by developing confidence in them, knowledge and motivation that boost their morale so that they will be more beneficial for the business.
Performance Management:This is an approach by which the performance of each employee is measured and their productivity is calculated. This is done to ensure weather the employee is working to their fullest potential or not, or if they need any training or learning sessions to develop the skills. It is important to calculate the incentives or rewards of employees and for making their payroll. It benefits employees in knowing their strengths and weaknesses so that they can work on them. It will help in motivating them towards working on themselves. It benefits employers to better know about their employees, and what should be done to improve their performance and employer can analyze through performance management system that who needs to be promoted or needs job rotation. Reward Management:Rewards are the motivation factor for employees. Something extra from the pay is called as reward. It gives people recognition that they want to feel some sense of belongingness at the workplace this builds their morale. This benefits employer in giving equal and fair rewards to employees, knowing their value and this benefits employee in knowing about self. These approaches help employee and employer both to know about the processes of the company. P4Effectiveness of different HRM practices in terms of raising profits. HRM practices play a very important role in any organization. No organization can work without proper Human Resource. Companies producing same good or same services and all the equipment, process are same but they cannot have a same human resource team. People everywhere have different way of thinking towards any situation. Some Human Resource practices which can increase profits of the company are: a)Training: Training which is given in a company is very important. An employee if trained properly will definitely give more output then the employee who has not been trained properly. Very less company gives proper training to its employees. No employee can work properly without training. Producing capacity in future is decided by the amount of
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training given to the employee. ALDI gives various types of training to its employees. The training can be on-the-job training and off-the-job training. On the job training means the training given by trainers in the job or with working along with the trainers. Various on-the-job training are: 1)Coaching: Some experienced staff gives training to the new employees by showing them demonstrations and giving them knowledge of work. Coaching can be given in classroom as well as in office. Coaching generally includes lectures given by experienced people. Lectures by big business men also can be a type of coaching given to a employee. (Barratt,2019.) 2)Mentoring: All the new joiners are divided in number of groups and each group has a mentor. He gives proper personal training and finds the strength and weakness of the employee. Mentor can also be called as the head. Every employee chooses a mentor himself. Mentor can be anyone. En employee can make his leader a mentor or his subordinate a mentor or his manager a mentor. Mentor is not a post, its just a respect given to an individual looking at his experience, qualities and his way of working. 3)Job rotation: Job rotation means the jobs are changes if each and every employee so that they can get a full experience of all the different jobs in the organization. Off-the-job training means the training which is provided outside the workplace. It can be in a different center, college or outside office.The various off-the-job training offered by ALDI is: Selection and interview practice Teaching new skills Employment law
Performance reviews b)Employee retention: the focus of the company should be on the retention of employees. The employees who are currently working in the organization should not be left. The experienced employee always knows the company better than the new one. He should be give his equal share and he should be promoted time to time. The customer retention of ALDI is very high. Very few employees left the organization as they are comfortable with the organization and all their needs are fulfilled by the company. Employee retention is very tough for companies as different employee have different demands according to them for example one employee wants to increase his salary, other wants good working conditions and third one wants a increment in his post. c)Leadership development: leaders are those people who are appointed by company as leaders or who are appointed by people as their leaders. They act as the face of the employees and they represent the problems of the employees to the heads of the company. Leaders are generally those people who have good experience in some fields and can guide people to achieve targets of the company. Targets of a company can be optimum utilization of employee but for an employee it can be to do the work assigned to him. No employee wants to work more but due to leader they sometime do extra work. ALDI also has many leaders in the company who helps the employees by solving their problems. If the employees of the company are happy with the working then they will work with their full potential and this will increase the profit of the company. d)Performance management and rewards: The performance of each and every employee should be recorded so that it can be noted that how much an employee is giving to the
company. If the employee works very good then proper rewards should be given to him in form of incentives so that other employees are also motivated and they will do their best to achieve it. This way the profits of the company will increase to much extent. (Heilman. and et.al., 2015.) LO3 P5 Importance of employee relations with influence on HRM decisions It is important for a company to have good relations with the employees. Sometimes the innovative ideas of the employee help the company in getting out of trouble. Employees also help the company in decision making as they too have experience. Various ways in which good employee relations can help in effective decision making are: a)A stake at the Table: When employees are involved in decision making their interest and professional skills increase and this also increases their loyalty towards the company. The commitment leads to the increase in the profits of the company and which is beneficial for the growth of the company. b)Empowerment increases the morale: When employees are empowered to take the decision of the company then their confidence and morale increases. This leads to the development of the employees behavior. Employees are motivated to work hard and prove themselves to the company. This increases the revenue of the company. ALDI always give chance to its employees to take various decision of the company. The workforce of ALDI is divided into various stages. Each stage has a senior and the top of them are store manager.(Dany, and Torchy, 201)
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c)Taps into internal Resources: Using employees in the decision making helps the company in saving their funds and time which are not wasted in outsourcing. The employee remain loyal for the company for long term. Hiring a consultancy firm is expensive and employees are already aware of the processes and can share their views on certain topics of the company. d)Improves workplace relationships: Participating in decision-making process improves the workforce relationship between the head and the subordinates. As the relationship between the employee and manger will increase, there will be more comfortable environment in the company which will lead to finding the problems of the company and will indirectly increase the profits of the company. The workforce relationship of ALDI is very good. Employees and the managers have good relations in the company and this reduces the chances of mistakes. The employees shares the problem in working and proper steps are taken to improve the it. There are many stores of ALDI in different parts of country but all the stores have one thing in common which is good relations with customers as well as good relations with the employees of the organization. P6 Key elements of employment legislation and its impact on decision-making Fair labour standard act:The act governs that every labour should be given their proper wage decided by the government and if they are working overtime then the overtime amount shall also be paid. They should not be forced to work for more hours. 40 hours is decided by the government and the labour working more than this should be paid overtime money. No discrimination should be done against any labour. Occupational safety and health act: This act governs that the organization should have proper working conditions in which an employee can work easily without any problem.
There should be proper safety kit between every 15 employees. There should be proper ventilation in the organization so that workers don’t face any respiratory problems. Human resource management should keep record of all the hazardous materials and chemicals in the company and no one should be allowed to go near it. The civil rights act: the civil rights act is a very important step towards the rights of the employees. This law protects employees from the discrimination based on race, colour, religion, nationality and sex. ALDI follows this act very seriously. Employees working in ALDI are always treated equally and any conflict between employees is first understood then then decision is taken. No biasness between the employee and employer is there. The Equality Act 2010: This law says that all employees should be treated equally and they should all have equal pay rights on the basis of their post and their work(Islam, 2018.) HR professional must be well acknowledged of all the laws and rights of the employees. There are various other laws other than these which come under the employment regulations. For example: the working time regulations 1998, the transfer of undertakings regulations 2006 etc. ALDI follows the rules and regulations by paying proper and equal amounts to each category of people performing same work. It’s a serious violation for ALDI managers and supervisors to make employees work without compensation. Working without paid is never accepted. Proper breaks should be given to employees who are working for more hours. Breaks amount should not be debited from the employee’s account. It is the right of the employee to get proper break between the works. If company is not giving break then additional amount shall be given to employee. People working in night should be paid extra as night charges. No women should be
forced to work in night in any company. The company should stop the business after the working hours is over. Children below the age of 16 should not be allowed to work in factories. LO4 P7 Application of HRM practices in work-related context: Human Resource is used in every company. Two examples of how human resource play the role are given below: JOHN DIABLO 29,wooden street, London, UK(1222111) Educational Qualification: Schooling from: St. Xavier’s London, UK(2014) Masters: Masters in Economics and Business from London Business School, London, UK(2016) Work Experience: Worked in as professor in LONDON School, UK Qualities:
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Technology Friendly Good Speaker Learner RICK JAMES 29, Captain Space, Canary wharf, Germany(3344569) Educational Qualification: Schooling: The Wilsons school, Germany Masters: Masters in Economics & Commerce from Cambridge school,USA Work Experience: Worked as Assistant Manager in Tesco, Bristol, (UK) Qualities: Hard working Know different languages Disciplined
Workaholic Basic requirement of the job: A good friendly candidate with the knowledge of the ALDI. Should be able to work in high pressure. Some interview questions: Q1 Why did you leave the last organization? Q2 Why you want to join this company? Q3 Why the company should hire you? Q4 Where do you see yourself after 5 years? CONCLUSION From the above study it is concluded that recruitment & selection, training & development, managing employee relations, flexible work environment help in workforce planning and resourcing the people in organization. Then the study focuses on the strengths and weaknesses of the recruitment and selection in an organization. Performance and reward management, training and development benefits to employers and employees of the organization. Then effectiveness of these practices have been discussed in the report and analyzed their productivity and profits for the organizations. Importance of employee relation is studied in context with their influence on the decision making power. The laws that the organization follow to maintain the decency and avoid the penalties and issues.
References Barratt, J., 2019.Recruitment and selection in the UK care sector: a longitudinal study of effectiveness in resourcing methods and practice(Doctoral dissertation, Aston University). Dany, F. and Torchy, V., 2017. Recruitment and selection in Europe Policies, practices and methods 1. InPolicy and practice in European human resource management(pp. 68-88). Routledge. Goldstein, H.W.and et.al., 2017.The Wiley Blackwell handbook of the psychology of recruitment, selection and employee retention. John Wiley & Sons. Heilman, M.E.and et.al., 2015. Presumed incompetent: Perceived lack of fit and gender bias in recruitment and selection.Handbook of gendered careers in management: Getting in, getting on, getting out,90, pp.90-104. Islam, T., 2018.Recruitment And Selection Processof Janata Bank Ltd(Doctoral dissertation, Daffodil International University). Noe, R.Aand et.al., 2017.Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Chang, E. and Chin, H., 2018. Signaling or experiencing: Commitment HRM effects on recruitment and employees' online ratings.Journal of Business Research,84, pp.175-185.