Human Resource Management Functions

This assignment delves into the core functions of Human Resource Management (HRM). It examines various HRM functions such as recruitment, training & development, performance management, compensation & benefits, and employee relations. The analysis includes a discussion of how these functions contribute to organizational effectiveness and success.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions and purpose of human resource management.......................................................1
P2 Different approaches of recruitment and selection with its strengths and weakness.............2
TASK 2............................................................................................................................................4
P3 Benefits to employer and employee with the practices of HRM...........................................4
P4 Effectiveness of HRM practices in raising productivity and profit of organisation..............5
TASK 3............................................................................................................................................5
P5 Relevance of employee relation in terms of influencing decision making process of HRM.5
P6 Various key elements of employment legislation and its impact on decision making
process.........................................................................................................................................6
TASK 4............................................................................................................................................7
P7 Application of various practices of HRM in a work related context.....................................7
CONCLUSION................................................................................................................................8

INTRODUCTION
Management of employees who work in a enterprise is knows as human resource
management. This is done by the Human resource department of organisation with the aim of
maximising employee's performance. Effective implementation of all strategies and management
human capital is the main aim of this approach (Campbell, Coff and Kryscynski, 2012). This
help in increasing the effectiveness of various process such as recruitment and selection. Further
it ensure that proper training should be given to all workers so that they can fulfil their duties
effectively and can achieve the set targets. Aldi one of the leading grocery retailer taken under
this report for study. At present firm is operating in more than 70 countries with more than 70000
stores. More than 20000 employees are working in ALDI stores which help the firm in achieve
its set objectives. Various functions and main purpose of HRM is given in this report. Different
approaches of selection and recruitment with their advantages and disadvantages is also
described in this. Along with this, important factors of employment legislation which affect the
decision making process of an organisation is also given in this report.
TASK 1
P1 Functions and purpose of human resource management
Achieve effective results form the process of recruitment and section is one of the main
purpose of HRM. As employees are one of the essential part of success of every organisation and
every company want to recruit right candidate for the right job in the right time. Approach of
human resource management help the manger in achieve this objective by setting effective
criteria for the process of recruitment. Further this guide the manager in setting fair
compensation packages for all the subordinates help in take fair work decisions at workplace.
Same can be used by the manager of ALDI for providing fair wage to workers for their work and
to satisfy their needs for getting their commitment towards their job roles.
Function of HRM Development of human resources: In today's fast changing and complex business
environment every enterprise want skilled and capable workers for doing complex jobs.
Human resource management help the firm in achieving this by setting effective criteria
for the process of recruitment (Messersmith and et. al., 2011). After that it helps in
conduct proper training and development programmes for the employees in order to
enhance their level of knowledge. All this increase the efficiency of firm;s operations and
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effectiveness of employee's performance. In this way it helps in making skilled
employees for the enterprise to achieve set targets. Create and provide safe working environment to all the employees: Create and healthy
working environment not only enhance the productivity of workers but also increase their
morale and job satisfaction (Bulgurcu, Cavusoglu and Benbasat, 2010). HRM help in
doing the same so workers can be satisfy at their maximum level and can contribute a lot
towards the success of organisation. Develop better relation with subordinates: Create, develop and maintain good relations
with subordinates is one of the main function of HRM. This help the manager in getting
support of employees while implementing strategy or any king of change at workplace. Fair compensation and reward to employees: It is one of the most and important
responsibility of every firm to provide fair compensation to employees. This is the main
reason why workers join the organisation. Concept of HRM guide the manager during the
formulation of compensation packages for the subordinates and help in provide them fair
remuneration.
 Staffing: Process of HRM helps the manager in predict the employees required for
executing the business operations and to achieve the set results (Functions of HRM,
2017). Job analysis, planning of manpower required, recruitment and section all are the
main activities which are performed by the HRM which guide the manager in recruiting
right candidate for the job.
By performing all these functions in an effective way manager of ALDI can achieve the
set business objectives in an effective way.
P2 Different approaches of recruitment and selection with its strengths and weakness
Process of invite large number of potential and skilled candidate for filling vacancies in
the organisation is knows as recruitment. This is one of the main and important process of every
enterprise. Various methods and process are there which can be used by the manager of Aldi for
hiring right candidate for the job (Snyder and Deaux, 2012). Main approaches of recruitment
which can be used by the manager of ALDI can are stated below:
Internal method of recruitment: Under this approach, workers who are working in the firm are
selected by the company for filling higher position. Existing workers get a chance in this to get
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promotion by showing their skills and talents. This is one of the effective approach of
recruitment. Main strengths and weakness of this are stated below: Strengths: Fast decision of recruitment is one of the main advantage of using this
approach. Further this method help in saving the cost of the firm in activities like
advertising for the vacancy, give training to new employees and many more (Human
resource management, 2016.). Along with this, it positively encourage the employee and
motivate them to give their best. All this increase their morale and commitment towards
the enterprise. Weakness: In this approach already existing subordinates are choose by the manger for
promotion which block the way of new telnet in the enterprise (Anderson and
Anderson,2010). Too many choices increase the complexity of this process and at the
same time this approach demotivate the workers who fails to get promotion.
External approach of recruitment: When individuals outside the organisation are invited to fill
the vacancy than this is knows as external approach of recruitment. Main strengths and weakness
of this method can be understood by the following points: Strengths: This approach help in bring new and fresh blood in the enterprise and increase
productivity of the firm. Because new candidates have more skills this save the training
cost of company. New employees make the workplace environment more interesting and
challenging which increase the motivation of subordinates. This approach can be used by
the manager of ALDI to bring new talent at workplace.
 Weakness: This is one of the lengthy and costly process of recruitment. When a firm do
advertisement for a vacancy in the enterprise than large number of potential individuals
apply for the job and this make the process more complex. This method give rise to
additional cost such as cost of training and orientation.
Both approaches have their own advantages and disadvantage and this can be used by the
manager of ALDI for filling vacancy.
After inviting a large number of candidate, choose best out of them is known as the
process of selection (Hammer and et. al., 2011). Basically these are two main approaches of this
which can be used by the manager of ALDI. Systematic approach: Sequence of effective steps are followed by the recruiter under
this method for selecting best candidate form the individuals who apply for the job.
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 Unsystematic approach: Under this recruiter select a random resume of a candidate and
than compare his skills with the capabilities required to perform the job.
TASK 2
P3 Benefits to employer and employee with the practices of HRM
One of the biggest advantage of using HRM concept is that it helps develop good
relations between employer and employee. This make the organisation able to take effective
decision with the aim of achieving better results (Surroca,Tribó and Waddock, 2010). Further
this approach provide number of benefits to both employees and employers which can be
understood by the points stated below:
Benefits to employer Help in taking planned and effective decisions: Evaluation of employee's performance is
done by the manager. This provide information to him about the current skills and
capabilities of company. All this help the manager in deciding future actions of a
company. Create and develop positive work environment: Various aspects of HRM guide and
provide support to the manager during formulation of policies and strategies (Greenberg
and Colquitt,2013). For example various elements of employment legislations ensure that
safe and risk free work environment should be provided to employees. This not only
enhance their productivity but increase their morale towards the job. Evaluation of HR policies: Concept of HRM provide opportunity to the manager to
timely evaluate the policies and do necessary modification to achieve desired results.
 Encourage team building: Various practices of HRM guide and help in setting mutual
goals for all the employees working in the firm. This give rise to the development of
various teams in the firm and ensure the proper utilisation of all resources.
Benefits to employees Motivate employees: Ethical and effective practices of HRM directly influence the
workers to give their best to the organisation. Increase performance of employees
increase the overall productivity of enterprise and help the firm in getting competitive
advantage.
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 Provide training to workers: Performance evaluation of subordinates is done under this
and this make the manager inform about the current skills of them. All this help the
manager in know about the needs of training programme. In this way concept of human
resource management in increasing skills and capabilities of workers.
 Increase both effectiveness and efficiency of employee's performance: Various training
programmes enhance the skills of workers and increase the effectiveness of business
performance. Further new methods of doing the work ensure optimum utilisation of
available resources and decrease the cost of commercial activities.
By effectively using the approach of HRM manager of ALDI can provide all these
benefits to employers and employees working in organisation. In this way workers can be satisfy
at their maximum level.
P4 Effectiveness of HRM practices in raising productivity and profit of organisation
Profit is one of the main objective of every enterprise for which it undertake number of
commercial activities. Various efforts are done by the manager of every company to generate
large number of revenues (Kraaijenbrink, Spender and Groen, 2010). For achieve this objective
concept of HRM can be used by the manager of ALDI. Effectiveness of this any HRM practice
can be evaluated by calculating the profits and productivity of a company. This practice support
the manager and guide him about how to treat employees in an ethical manner. This concept
encourage the conduct of training and development programme for employees with the aim of
increasing their skills. All this help them in maintain the quality of firm's product to fulfil the
requirements of customers. In this way both practice of HRM and profits of company are directly
linked with each other.
Further this assists the employees in maintain the quality level of products. This guide the
way to optimum utilise all the resources of an organisation which increase the productivity of
firm. One of the main benefit of HRM is that it influence the manager in provide fair
compensation to all the workers which help in satisfy them and enhance their productivity.
Moreover effectiveness of HRM practices and productivity of organisation are directly linked
with each other and this should be consider by the manager of ALDI for maintaining an effective
level of profit.
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TASK 3
P5 Relevance of employee relation in terms of influencing decision making process of HRM
Due to increasing importance of employees in the overall success of the company it
become very essential for the manager to maintain good relations with them (Avey and et. al.,
2011). It help in maximise their performance level and at the same time enhance effectiveness of
business operations. Quality of employee relation affect the decision taken at enterprise. So
various efforts should be done by the managers of ALDI to create and maintain good relations
with workers. This increase their commitment and help the enterprise in formulating all the
strategies in an effective way. For getting this following are thee things which can be done by the
manager of ALDI:
 Open door policy should be adopted by the top manager of company so that workers can
discuss their issues with them easily.
 Involvement and participation of subordinates should be encouraged in the decision
making process for setting mutual goals.
 Feedback of workers should be collected after introduction of a change.
 Job rotation should take place in the company on continuous basis so that workers can
learn new skills for perform their job effectively.
 Strong communication should be there at every department of firm to clear roles and
responsibility of every worker and to avoid the conflicts at workplace.
 Risk free working conditions should be offered to all the employees and manager should
treat all the workers in a friendly manner.
 Appreciation should be given to the employees who perform good at workplace.
In this manager of ALDI can create and maintain good relation with employees and can
get their support for the business activities.
P6 Various key elements of employment legislation and its impact on decision making process
Employment legislation is a mix of various rules and regulations which is made by the
government to save the basic rights and duties of employees working in a firm. This concept
describe the relationship and responsibility of employer and employee towards each other. It is
very necessary for the manager of ALDI to consider all the elements of employment legislation
in mind before making policies (Kerlinger and et. al., 2013). Main factors include in this concept
can be understood by the following points:
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 Employment rights act: This act is a summary of all acts covered under the employment
legislation. As per this it comes under the responsibility of a employer to provide all basic
facilities to an employee at workplace so that he can perform effectively. Staff working
condition and fair remuneration for their work should be offer to every subordinate. It is
very necessary that basic facilities should be offer to every employee to get their
maximum contribution in the success of company. Minimum wage act: As per the rate of deflation and inflation exist in the market,
government of every country decide a amount called minimum wage rate which should
be given to all employees. This rate is decide by the government so that all workers can
fulfil the basic needs of their routine life called food, shelter and cloth. Every employer is
liable to provide minimum wage to every worker. Equal pay act: According to this act of employment legislation when two individuals
have same type of education and do same work in the company than it comes under the
responsibility of a employer to offer them same wages (Pfeffer, 2010). One of the main
advantage of doing this is that it enhance the morale and job satisfaction of employees.
With the help of this manager of ALDI can create a positive work environment. Employee's discrimination act: According to this all workers who are doing work at
organisation should be treated equally and fairly. They should bot be discriminated on the
basic of their, gender, age, religion and on any other thing. Equal opportunities of growth
should be offer to all the employees. Working time directive: This act describe the minimum working hours of an employee
in an organisation. If worker did not wok for thee minimum hours than his employment
will not be treated as illegal. Minimum working hours of an individual is 48 hours in a
week.
 Disability discrimination act: As per this act all the disable workers who work in firm
should not be discriminated by employer same facilities and treatment should be offer to
them.
By considering all these acts manager of ALDI can make effective policies for the management
of employees.
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TASK 4
P7 Application of various practices of HRM in a work related context
As workers are one of the valuable component of every organisation because they
contribute a lot in the success of every company. Without them no company can exist. Presently
ALDI is facing increase turnover of workers and decease productivity. Number of customer's
complaint about the quality of product is increasing (Hobfoll, 2011). All this is negatively affect
the sale and positive brand image of the company. For overcoming with this situation managers
of firm can apply the HRM practices in various aspects of firm to achieve control the situations. Planning of manpower: Various aspect of HRM provide opportunity to the manager to
predict about the employees required at organisation for achieving the set results. Further
it can be used by the manager of ALDI to set criteria for the recruitment for hiring best
candidate. By hiring best individuals company can maintain the quality of its products. Decision making: Collection of relevant information about the performance level of
employees, operations of various department and many more guide the top manager in
taking effective decision (Song and et. al., 2010). Further this provide effective solution
to the critical problems rise at workplace. Training and development of employees: For maintaining the quality of firm's product
new methods and techniques can be taught to employees. At the same time this will
enhance the capabilities of subordinates. Performance evaluation: Timely evaluation of worker's activities provide opportunity to
the manager in find out the performance gaps. Further training is given to employees to
make them able to perform effectively and to better satisfy the needs of customers. Creation of vision and mission: Process of identifying skills of employees help the top
manager in giving shape to the vision and mission of the company. This guide the
manager in formulating an effective business plan and ensure the proper utilisation of
firm's resources (Luthans and et. al., 2010).
 Maintain quality of product: For maintain the quality of firm's product effective methods
and techniques can be introduced in the company.
All these are the main areas in which manager of ALDI can apply the practices of HRM for
finding a better solution to the problem.
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CONCLUSION
From the above information it can be concluded that it is very necessary for manage the
employees and their activities at workplace for the company like ALDI. For this concept of
HRM can be used by its manager for maximise the performance of employees. All factors of
employment legislations should be consider by the manager while formulating policies. By
providing safe working environment to employees, management of company can get their
commitment and can achieve the best results in an effective way.
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