Human Resource Management and Aldi

This assignment delves into the crucial role of Human Resource Management (HRM) within the context of Aldi, a leading retail company. It examines various HRM functions such as planning, recruitment, selection, training, and development, highlighting how these processes contribute to Aldi's overall success. The assignment also analyzes the importance of HRM in shaping organizational culture, attracting and retaining talent, and fostering employee growth. By understanding these functions and practices, businesses can effectively manage their workforce and achieve their strategic goals.

HUMAN RESOURCE
MANAGEMENT

INTRODUCTION
Human resource management is a key process which is mainly concerned with recruiting,
hiring, managing employees of organisation, training and development, transfer, etc. Every
organisation have human resource department which performs all necessary functions and
activities through which company can achieve it set business targets and goals. Aldi is retail
supermarket and has a strong hold in the market. It was founded in 1913 and is headquartered in
Essen and Mulheim, Germany (Gruman and Saks, 2011). It operates its business in more than 20
countries with thousands of stores. To manage such a huge workforce efficiently, it is crucial to
have strong and highly efficient HR department which can manage all its business operations and
activities in a proper manner. This assignment will enlighten purpose and functions of HRM and
strengths and weakness of hiring process. It also focuses on benefits of HRM practices with its
effectiveness. Various legislation and its effect on HRM are described in this project and
application of practices are given in addition.
TASK 1
P1 Purpose and functions of HRM
Human resource management performs critical functions for organisation so that they can
achieve its business targets and vision in efficient manner. They provide company with highly
talented and skilled leaders which can use their skills in activities in order to maximise
productivity and profitability of company. Employees are valuable assets of company so it is
necessary for management to satisfy them with all aspects. They can do this by appraising their
performance and giving appropriate incentives and benefits. Aldi is a leading company in United
Kingdom and employs large work force (Moutinho and Vargas-Sanchez, 2018). To ensure
effective work by every employee, they need to assure that each individual is satisfied and
should consist desired skills for performing business tasks. They seek perfection in everything
they do or perform. They have a healthy working environment with good relationships with
superiors and subordinates. Managers of Aldi formulate best strategies which can benefit them
with higher profits and revenues. They apply some HRM functions in their strategies to make
good plans and some of them are listed below:
Recruitment and selection: These are crucial functions of any organisation as they are
the deciding factors which might ensure profit and loss to the company. So to earn profits,
organisation have to make strict procedure of hiring any individual. To hire best candidate for a

job, it is necessary for managers to first identify available jobs in the company and list down all
specification required to perform that job (Crook, T and et al, 2011). After that managers can
prepare a list including characteristics of candidate which should be present in them in order to
get job. This is how managers of Aldi perform their recruitment and selection procedure.
Recruitment is basically concerned with attracting and short-listing people whereas selection is
concerned with selecting best candidate from group of applicants.
Orientation: This program is organised with the purpose to welcome new joiners and
brief them about company policies, rules and regulations, working environment, etc. Aldi
organise orientation program in order to make new joiners comfortable with working
environment of company and also they get chance to interact with them and get to know each
other more effectively. These types of programs are not priorities for some organisation, but it
has a great impact on new candidates.
Managing employee relations: It is necessary for company to build good relation with
employees and maintain those relationships. This increases effectiveness of business activities of
organisation as all staff members come together and work in same direction (Garrick, 2012). By
good relations, employees work more actively and help other employees in their tasks. In Aldi,
managers try to initiate good relations with their employees which increases the level of
profitability and satisfaction among company.
Planning: Main function of Human Resource is to plan every business activity in proper
manner in order to ensure work done in right and appropriate manner.
Staffing: By using recruitment and selection procedures, managers can hire talented staff
and assign them different job positions.
Training: This is given to those employees who lack necessary skills and knowledge
which are required to carry out business activities. With proper training, employees can smoothly
perform their duties.
P2 Strengths and weaknesses of different approaches to recruitment and selection
Recruitment and selection are two major processes which is carried out by every
organization in order to fill vacant positions in company. This is an important function and
responsibility of Human Resource department. They have to provide highly skilled and talented
candidates to company so that they can use their talent in business activities in order to achieve
ultimate vision of company (Barney, Ketchen and Wright, 2011). It is really a tough task to

select particular candidates from group of talented people. But managers have to strictly follow
their protocol and have to fill job position with appropriate individuals only. Manager first
identify available job positions in organization, then they list down necessary skill and talent
required to perform that particular job. After that, they attract candidates who are specialized in
that job and with best recruitment and selection method, they hire suitable candidates. They can
hire best talents form two sources and they are as follows:
Internal source: Company follow this method at the time of less funds available with
them and fill vacant positions by shifting existing employees of organisation to new job
positions. Manager can give promotion or may shift to similar or different jobs. This source
mainly include- transfer, promotion and present employees. Transfer is normally considered as
shifting of employees from one place similar or different jobs whereas promotion is sifting of
employees to higher rank. People getting promotion also get high salary and reputation within
organisation.
Advantages of internal source:
 It helps in boosting confidence and morale level of employees.
 Loyalty of employees are mainly rewarded.
Disadvantages of internal source:
 Limits the scope for fresh talents.
 Unable to perform external recruitment for hiring unique talents.
External source: Company can perform this recruitment procedure as they have
appropriate funds to attract people from outside the organisation (Werner and De Simone, 2011).
This source mainly involves: campus interview, placement agencies, employment exchange,
press advertisement, etc.
Advantages of external source are:
 Allow inflow of unique and creative talents.
 Inflow of fresh blood.
 Managers get large number of options for recruiting candidates.
Disadvantages of external sources:
 It become expensive for company sometime.
Talented employees end to switch companies.
Strength of approaches to recruitment and selection:

 Recruitment are the best way to hire desired candidates for available job position.
 Ensures more productivity and profitability for company.
 It give opportunities to talented people to join a reputed company.
 Highly skilled staff reduces labour turnover.
 Satisfied employees increases retention of people. Inflow of creative and innovate ideas.
Weakness of approaches to recruitment and selection:
 If company uses internal source, it restricts the entry of qualified candidates from outside.
 It become expensive for companies to carry out external recruitment.
 Managers may hire wrong candidate for a job position.
TASK 2
P3 Benefits of HRM practices for both the employer and employee.
Management of Human resource is crucial for Aldi in order to manage their activities
efficiently and earn maximum profits with available resources. Ultimate target of Aldi is to
attract as many customers as possible and satisfy them with products and services they offer. For
this HR departments need to know about the preference and requirements of customers and
implement their needs in production of products (Schermerhorn and et al, 2014). For this, they
can implement different HRM practices and link it with customers equipment can benefit
company higher profits and revenues. Good practices also help company to achieve competitive
advantage. Some HRM practices performed by both employee and employer are given below:
HRM practices for employer are :
Performance appraisal system : HR department should stablish a performance appraisal
system which records performance level of different employees. This help in getting information
about employees are are high performer and low performer in organisation. If any member
performs well in any of the task then, managers should reward them with appropriate bonus,
allowances, awards, etc (Flamholtz, 2012). This encourages other employees to perform better in
their tasks and thus increase profitability of company. Aldi uses this system to record and praise
best performer. This serves as a motivational tool for everybody working in organisation.
Hiring of candidates: As described above, recruitment and selection processes are very
crucial for company to hire best quality of candidates for their company. It is the major

responsibility of HR manager to hire right people for right job having right qualities. Sometime
managers can hire wrong candidates and this may result in huge loss to company. So to avoid
this managers should be very strict with their hiring procedure and select only desired
candidates.
HRM practices for employee are:
Training and development: This is an important method which company should provide
to those employees who are unable to perform their task with efficiency and to new joiner who
have less knowledge and skills about the job they have to perform. Training helps employees to
enhance and improve their skills which are required by them to perform their activities. It also
boosts up confidence level and increases the efficiency of an employee. This leads to more
productivity and profits inflowing to company.
Compensation and benefits: These serves as motivational factors which encourages
employees to work hard and perform their best in doing their activities. Compensation and
benefits are given for appreciating their work and praising them (Gatewood, Feild and Barrick,
2015). With this, employee feel satisfied as their work is praised and considered by superiors.
P4 Evaluate the effectiveness of different HRM.
Human resource practices are considered as an essential part of any organization. They
are implemented to ensure ultimate success of the company. Aldi uses effective HRM practices
and implement them in their decision making process. This practice help Aldi to complete their
activities on time and can satisfy customers with their products and services. Managers or
superiors should not only think of customer satisfaction every time (Oechsler, 2011). They
should also think about those workers also, which give their 100% in every task they perform
and lead company towards success. They are the employees of company. Management can
implement those HRM practices which can satisfy employees as well. It is also the major
responsibility of superiors or mentors to identify employees which require training. So to
improve employee's skills and knowledge, they can provide them with necessary training and
development programs. Some of HRM practices are mentioned below:
Flexibility in working hours: Superior or top level management can implement flexible
working hours in the organisation in order to make employee more comfortable at their work.
Flexibility in timing hours encourages employees zeal to work on their time and this leads to
more efficiency and productivity for company resulting more profits coming to company.

Payment and reward system: Every company should design payment and reward
system in order to encourage and motivate employees and workers. This enable employees to
perform their work with perfection (Bröckermann, 2012). They are responsible for all profits
company is making so it is there responsibility to reward employees who help them to achieve
desired success.
Training and development: This is one of the crucial HRM practice. In this, managers
need to identify employees who are lacking behind and find difficulty in performing their regular
tasks. Sometime, existing employees also require training as there is continuous up gradation in
technologies and procedures and it become difficult for old employees to cope up with that
changes. By identifying those employee, they can provide them with proper training procedures.
TASK 3
P5 Importance of employee relations.
Employees are valuable assets of organisation and performs business operations assigned
by their managers. They work in the direction where company can achieve its desired success by
accomplishing all their business targets. Managers should always try to make good and
harmonious relations with employees to ensure better performance of company. This can be
achieved by organising different activities which involves all staff members and this leads to
more interaction between employees and make good relations with them. This also encourages
team spirit with superiors and subordinates (Marchington and et al, 2016). Managers should
involve employees to participate in decision making process so that employee can feel associated
with company and feel satisfied that their values are been listened by superiors. They both can
come together and work as a team towards achievement of business goals and objectives.
Importance of employee relations is:
Timely achievement of goals: If company have good relationships between employees
and employers, they can easily complete their activities on time and ensure timely distribution of
products. Aldi is effective in maintaining their good relationships with their employees and they
perform their work in such a manner that they can achieve their goals on times.
Leads to increase in productivity: When company have cordial relationship, they tend
to perform their work with more efficiency. This practice leads to increase in productivity of

company. Managers of Aldi try to maintain good relationship and health work atmosphere in
order to maximise their efficiency and increase its profits (Kehoe and Wright, 2013).
Employee feel associated with organization: When superiors try to make relations with
employees working in organization, they feel associated with company and consider themselves
as a part of the firm. This leads to satisfaction of employees and tend to perform better for their
company.
Employment Relation Act: Main objective of this act is to develop employment
relationship within organisation premises. It also promotes effective enforcement of employment
standards. This act was passed in order to develop and maintain good relation between
employees and employers.
Managers also implement different grievances policies in order to resolve employee's
problems and issues. A personal grievance is related to any act, behaviour, omission, situation or
decision impacting on an employee, that the employee thinks is unfair. This help in building
better relation with each other as they share their problems and issue with each other.
P6 Key elements of employment legislation
Employment legislations are one of the major necessity for an organization to run their
business according to set polices and rules decided by government of country. Every
organisations are bound to follow all policies in order to avoid any problems in future. These
legislation ensure protection of employee's rights and avoid company to indulge in any illegal
activity (Anderson, 2013). Legal policies provides proper direction to organization to coordinate
their business activities according to standards and laws. There are many employment laws or
labour laws which are crucial for company to follow. Some of them are mentioned below:
Anti discrimination act: This is a very important labour laws which protect employees
and worker working in any organisation against any discrimination. This law is followed by Aldi
which help company to prevent any discrimination against race, colour, religion, salary, wages,
holidays, etc. Managers ensures that this law is not violated by any member working in
organization. They should provide equal and fair chances to every candidates and employees so
that they can show their talents.
Health and safety act: This act ensures that employees should get necessary health and
safety benefits in case of any emergency. Managers can provide benefits to employees which are
mentioned under this act and also provide appropriate compensations and benefits to employees.

Due to this act, employees feel relieved as they have a backup and supporting system in their
tough time.
Minimum wages act: This act ensures that every that every employees should get fair
wages not less than decided minimum rate. Managers should not discriminate in giving up wages
and salaries to any employee (Daley, 2012). Managers should also increase employee's pay
within a time period of 6 months or 1 year according to current rate of wages. It is also the
responsibility of employees to be aware about current minimum and maximum wages to avoid
any discrimination.
Above are some crucial labour laws which are followed strictly by Aldi in order to
maintain peace and harmony in organisation.
TASK 4
P7 HRM practices in an enterprise.
HR manager is responsible for developing good and effective strategies. To develop such
a strategies, they need to implement different HRM functions and practices which help company
to maximise their productivity and profitability (Bloom and Van Reenen, 2011). This also ensure
company to satisfy their customers needs and requirements. There are many HRM practices
which they can implement in their plans. Manager implement best practices at the time of
recruitment and selection process. Example, they use job advertisement in order to attract
candidates for vacant position in the company. Below is an example of one of the activity
performed by HR manager. The illustration indicates whole process of recruitment and selection.
Management training at Aldi
Workshop title/ Training practices Date- Time-
Location Instructor
Candidates
Activity Time of activity Process Equipments required
Induction of candidates

Training objectives
a)
b)
Warming up
Contents and necessary
points
Job advertisement
Sales person require
Qualification /Eligibility
MBA in Marketing from any recognised institution
To apply:
you are required to upload your application with CV and latest photograph on our websites
latest by 31 May 2018.
Email-id: www.Aldi.com
Contact no.: XXXX00000
Job specification
Qualification BBA
MBA in marketing specialization.
Experience Should have 2 year experience in sales.
Area of expertise Should be proficient with communication
skills and leadership skills.
Other qualities Good verbal and writing skills.
Strong marketing skills.
Good interpersonal skills.
Interview Questions
 Have you ever participated in any co- curricular activities?

 What strategies will you adopt while working in the organisation?
 Where do you want to see yourself in next 5 years?
 What are your strengths? What are your weaknesses?
Personal specification
Particulars Required criteria Learning and outcomes
Qualification and training Communicate with new
employees
Able to perform whole
induction process.
Experience Providing the best services to
customer
Pressure handling ability
Must have performed certain
induction process in training
sessions in college days
Skills and knowledge Attentive and good
communication skills
Developing and generating
innovative ideas
Personal characteristics Proactive, leader, confident,
positive attitude
Team Builder
Developing certain skills
and traits to work in
organisational culture.
CV
Information of candidate
Name:
Father's name:
Mobile no.:
Email id:
Key skills:
 Creativity
 Well versed with concept Human Resources Management
 Working in team
 Having ability to learn and grasp
Experience:

 Goldman : Assistant to Retail Manager
 Schroedinger: Worked as a learn leader in retail store located at Durham.
For hiring suitable candidates, managers can follow different HRM Functions like
planning, recruitment, selection, training, etc.
Planning: By appropriate planning, managers can easily identify different job positions
and can make list of characteristics that should be present in the candidate to perform that job.
This can managed with proper planning and coordination.
Recruitment: Manager implement recruitment process in order to attract talented people
for their company which have desired skills and knowledge that can maximise company's profits.
Selection: It involves selection of short listed candidates which fulfil all criteria of
managers.
Training: If any employee lack desired skills, then managers provide them with
necessary training in order to enhance and improve their skills and talents. This help in smooth
working b employees.
CONCLUSION
From above assignment, it has been summarized that Human Resource Management is
very crucial fro company as they help them in all vital aspects like providing information,
recruiting and hiring, providing leaves and holidays, compensation and benefits, building
performance appraisal systems, etc. They work very hard in order to make their company
successful and establish a strong position in market. Aldi is one of the leading company and is
well known organisation. This was possible because of hard-working of employees and
management of HR department. Managers of Aldi identifies key areas where they can improve
their activities and skills and work in the direction of making it perfect. They also implement
different HRM functions and practices in their strategies or business plans in order to maximise
their productivity and profitability. With the help of these functions and practices, company can
achieve their all mission and ultimate vision and can satisfy target customers as well as
employees who are working for them. HR managers can recruit candidates which consist of
desired skills and talents to perform a particular task with efficiency. Behind every successful

business there is a constant support of their managers, leaders and employees who work hard to
make success happen.