Impact of HR Strategies and Cultural Factors on HRM in Africa - A Case Study of Lidl

Human Resource
Management

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
A) HR strategies and concepts of strategic HRM of the firm..................................................................3
B) Impact of regional and national culture on the practice of HRM in Africa.........................................4
C) Organization model of employment and organization levers used by the firm...................................5
D) Using Storey’s 27 points of difference between HRM and personnel management, state the practice
by firm in Africa......................................................................................................................................6
E) Hiring and firing in consideration of local culture and HRM practice in transnational/international-
subsidiary................................................................................................................................................7
F) Change in terms of employment laws when international HRM changes local business systems.......7
G) Corporate examples of firms using good HR practices.......................................................................8
H) Recommendations to employers regarding HRM practices to ensure organizational performance is
high..........................................................................................................................................................9
CONCLUSION...........................................................................................................................................9

INTRODUCTION
Human Resource management is the process in the organization which ensures the
smooth functioning and processing of the company for growth and development overall
(Michael, 2019). Lidl is a multinational company which operates in retail sector that is
supermarket.
The report will analyze the HR strategies of Lidl and the concept of strategic HRM. The
impact of regional and national culture on the practice of HRM in Africa will be identified and
how it influenced the whole process in the country will be analyzed. Organization’s model of
employment and organizational levers will provide the basic information of the organization in
creating value to Lidl. Storey’s 27 points of difference will aid in analyzing whether Africa
follows personnel management practice or HRM policy practice as benchmark. Importance and
significance of local culture during hiring and firing process will assist in carrying out the HRM
in transnational/international-subsidiary. Differences in terms of employment laws when
international HRM changes local business systems will be evaluated. Various corporate
examples of firms will be evaluated which uses good HR practices. Recommendations will be
given to employers regarding HRM practices to ensure that the organizational performance is
high. Therefore, Human Resource Management plays an important role in organization
significantly.
MAIN BODY
A) HR strategies and concepts of strategic HRM of the firm
Human Resource Management is the strategic approach for the effective management of
people in the organization so that the processes and procedures are followed effectively and
efficiently (Olson and et.al., 2018). Value was created by Lidl by using these HR strategies
which are explained as follows –
Recruitment – Recruitment is the process which enhances the value of the firm and enables the
processes of the recruitment function easily and effectively. HR follows the recruitment process
to place the individuals at their right jobs. HR of Lidl helps the organization achieve goals
effectively by recruiting individuals for right positions in the organization.
Performance Appraisal – Performance appraisal is the best HR strategy which is adopted by
Lidl. Employees of the company are appraised for their good performance they deliver. Also,
performance appraisal is the best technique to motivate and encourage employees which has
been successfully been adopted by HR of Lidl.

Learning and Development – Lidl follows this HR strategy to indulge into different growth
areas and to enhance the systems and processes (Olson and et.al., 2018). Through learning and
development employees of the organization are able to evaluate their performances and rectify
the loopholes wherever necessary.
Succession Planning – This is the main HR strategy which the organization follows. Because
the growth and development of organization is don e through succession planning through which
the value of Lidl is being raised.
Strategic HRM of the organization is defined as the link between company’s human
resources and its objectives goals and strategies (Haque, 2020). Strategic HRM of Lidl helps in
evaluating the firm’s performance and set the strategies according to the goals and objectives
been set to achieve. Strategic HRM of the company also helps in assessing the current needs and
wants of the customers which are to be fulfilled satisfactorily. Strategies are made for the teaks
and work to be done effectively and efficiently which is done through the process of properly
analyzing the key skills of the employees who perform better and they contribute to organization
on large scale. Therefore, strategic HRM is helpful for Lidl which helps in the organization’s
overall growth. This also enhances the systems and processes of the company.
B) Impact of regional and national culture on the practice of HRM in Africa
Cultural values are a part of external factors which influences HR practices. Cultural
values imply employees’ behavior towards themselves and the organization as whole. Through
different cultures individuals come from infer to their behavioral aspects and the manner in
which they follow company’s rules and regulations (Farndale and et.al., 2017).
Impact of regional and national culture on the practice of HRM in Africa denotes that the
HRM policies which are being framed keeps in mind the different backgrounds and cultures of
employees which are contribute to the success of the organization. This in turn helps the
organization to frame different HRM practices and ensures that these practices are being
followed by employees of the organization. As culture plays an important role in the
organization therefore some practices in company are made for employees who come from
different cultures. The practices concern the language etc. which employees from different
cultures and background follow.
Therefore, regional and national culture impacts the practices of HRM in Africa and this
is observed by the employees’ behavior and how they contribute towards the development and
growth of the company effectively and efficiently (Liu and et.al., 2019). Also the economic and
social factors of Africa are the main concern regional and national cultures depend upon. The
organization incurs and manifests with the HRM practices as through these HRM practices the
organization is able to process the various functions both within and outside the business
environment. Thus, culture plays an important role both for employees and the company itself.