Evaluating HRM Practices: A Case Study of ALDI's Operations

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at ALDI, a UK-based grocery chain. It begins with an introduction to HRM and its functions, emphasizing the importance of employee motivation and organizational policies. The report then delves in...Read More

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions of HRM which applicable in planning.............................................................1
M1...........................................................................................................................................3
P2 Evaluate strength and weakness of recruitment and selection process.............................4
M2...........................................................................................................................................5
D1...........................................................................................................................................5
TASK 2............................................................................................................................................6
P3 Benefits of different HRM practices of employer and employee.....................................6
P4 HRM practices for increase organisational profit and productivity..................................7
M3 ..........................................................................................................................................8
D2 ..........................................................................................................................................9
TASK 3............................................................................................................................................9
P5 Importance of employee which influence HRM decision making....................................9
P6 Element of employment legislation and impact of HRM decision making....................10
M4 ........................................................................................................................................11
TASK 4..........................................................................................................................................11
P7 Evaluate HRM practices in work location......................................................................11
M5.........................................................................................................................................13
D3.........................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management is a crucial parts of an organizational structure which
functions the whole personnels by controlling or organising various activities. It deal with
organising, designing, implementing or determines company policies and terms in order to
maintain the relationship with the employees and employer of a company. They are responsible
for various process coordination such as recruitments, lectins, promotional and many other to
stimulate workers confidence and performance (Alfes, and et. al., 2013). This is the duty of HR
to allocate the task among the employee for accomplishing he set target of organisation.
ALDI is UK based largest grocery stores which facilities wide range of services including
grocery, apparels, equipments, kids toys etc. This was firstly formed in 1913 after which is has
expanded its trading more than 70 countries owning approximately 70,000 stores. This report
will study about the difference functions and plans of Human resource management in ALDI as
well as examine the positive and negative aspects of selection and recruitment procedure that
company utilize for employing workers. It will analyse the different legislation in regard of
employee and its impact on HRM decision making process.
TASK 1
P1 Functions of HRM which applicable in planning
Human resource management is responsible for organising and coordinating various
development activities including training, rewarding and others in order to keep motivating and
stimulating the employees of organisation. This is very significant to understand the expectation
and preferences of employees in matter of workplace environment to solve their issues and
conflicts in a effective manner (Renwick, Redman and Maguire, 2013). Human resource manage
negotiate some functions within ALDI to improve the status of organisation and develop in trade
of UK. Here are their purpose and function briefed as below:
Policies Evolution
Human resource management determines the policies of organisation deciding the
limitation and rights required to provide to maintain the relationship of organisation with the
government and workers. HR keep amending those terms according to the market trends and
requirements of worker which create a positive image of ALDI among consumer assist in
meeting the target. These policies includes:
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 System of uniform
 Values and morals of ALDI
 Structure of discipline
Source 1: Difference Between Personnel Management and Human Resource Management ,
2015
Staffing
Staffing is a very crucial process undertakes by the HR of ALDI which helps in
allocating specific employee in appropriate place according to their abilities and skills to get
maximum profits out of the activities. Staffing process requires some design and process to
function more effectively which is as below:
Selection
The HRM utilize whole selection process that involve test, group discussion, analysis,
interviews and training and development programmes for accurate operating.
Designing of Staffing Process
HRM is responsible for build a plan for proper staffing of employee in order to select the
worker for anticipated profile to satisfy consumer as well as them.
Multicultural Activities
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HR of ALDI focuses over the diverged workplace culture of employee in order to
optimize various creative concepts over specific point while required.
Final Hiring
This is the stage in which company finalise their employee according to their talents and
skills.
Compensation and Profit Administration
This is the requirement of every organisation to manage an encourage the morals and
confidence of an employee for increasing overall benefits and product quality (Kehoe and
Wright, 2013). For this they perform various rewarding activities including the bonus, incentive,
compensation, compensation, and other awarding schemes etc. They also facilities various other
offers such as security and health insurance, job security, life insurance etc. this is very useful
function that human resource manager perform to make increment in competitive advantages.
Training and development
This is the most essential function the HRM plays develop the abilities and skills of
workers of ALDI to satisfy consumer needs according they market trends as well as increase the
knowledge of employee. To introduce with the new technologies or to familiarise the workers
with the company workplace this activities is being organised by HR which aid a better quality
of services to consumers. Here are some grooming and training operations which are as
followed:
 To enhance the abilities of work
 To develop the communication skills
 To supply some skills of technical Dept.
Retention of Workers
Retention of employee is very necessary as it save the cots of new recruitments as well as
make them commit wit organisation for a longer period. The rewarding and compensation
policies help workers in retaining the worker within the ADLI. Also, cited enterprise provide
promotion and other facilities to the employee to refrain them with the company.
M1
Employee relation is a process of managing worker and their relations and resolve issues
of workplace which is organised by HRM of an organisation. Human resource managements is
utilize various approaches to get to the depth of talent or skills for the organisation. Cited
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enterprise seek the skills and talents from world wide by the selection and recruitment process.
The provide development and training programmes and choose those applicant who score higher
in these activities. Through policies evolution compensating the worker, they retain the employee
in the organization for keep evolving and betterment of them as well as enterprise. By
developing the policies with time they satisfies consumers. These assist in accomplishing routine
operations as well as reaching the target which indirectly helps in meeting the business
objectives of ALDI.
P2 Evaluate strength and weakness of recruitment and selection process
Selection and recruitment procedures is undertake by the HR of an organisation which
refer to the hiring of employee according to the requirements of an enterprise by selecting on the
basis of abilities and skills. The approaches of ODF selection and recruitments includes
interviews, job description, multi steps hiring, skills inventor. The hiring approaches includes
external recruitments and internal recruitments etc. These process have their positive and
negative aspects which ALDI have to face whole employing new workers. Here are few of those
places:
Strength
The selection methods helps in seeing best able or skilled employee or the anticipated job
profile as well as provide diverged ideas and concepts to the organization. On the other hand, the
hiring process approaches helps in seeking new talents In which external seeks qualified
candidates from the social environment whereas internal recruitments saves the cost of
recruitments process facilitating already trained and familiar worker to the company despite of
amateur (Jiang and et. al., 2012).
Weakness
If their are positive aspects of a process than their will be negative aspects too. The
approaches that is used for recruitments process in which internal hiring process restrain
organization to meet with new concepts and ideas whereas external process is too expensive
consuming process which lead to loss of money in case the new employee left the job.
Selection process is a hectic process including interviews which is not a reliable test,
consumes time and efforts. And other process restrain the the whole environment growing in
case of inappropriate selection.
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M2
Selection and recruitment procedures have some positive and negative impacts according
to the needs of an enterprise
Weakness
The process of recruitments and its approaches are too expensive. The external
recruitments is expensive, hectic and lengthy process which lead to loss of money when it comes
to employee dissatisfaction. Internal whereas limit the creativity and skills of enterprise. And the
their party is not reliable and credible resource of selecting worker.
Strengths
Main strengths of these approaches is new skills and abilities establishments in the
organisation. External facilities fresh creative thoughtful candidates. Internal hiring a saves the
cost of training and development. The third party saves the time and money of the recruiter and
HR.
D1
Approaches of recruitments and selection make the process of hiring more easier and
tangible to access for the make of ALDI. Cited organisation has deployed in global level with
unique brand recognition which optimize different process of hiring and selection for the
employee hiring.
Strengths
These approaches provides various intangible profits to the organisation by rendering
ease in pursuit of new skills and abilities with less expansion of wealth and time. ALDI utilize a
different recruitment and selection techniques in order to increase the effectiveness of the entire
process. The approaches of selection and hiring have their own benefits.
Weakness
ALDI growth restrained after the increase of older employee the company begin
recruiting young worker for their organization. The external approach drawback higher cost of
organising and length process which required to have an effective methods for selecting betters
applicants. The internal approaches limited the talents and skills to the enterprise and restrain in
accessing more qualified and creative applicants from the external environment.
5

TASK 2
P3 Benefits of different HRM practices of employer and employee
HRM manages the entire personnels of organisation by facilitating them various offers to
developing them emotionally and professionally which also provide company increase sales and
overall benefit gain. HR makes sure that the employer an employee communicating in an
effective manner to influence the workplace more efficiently. These practices which HR organise
in ADLI helps in gaining the productivity of organisation making creating the whole
optimization of adopted strategies. Human resource management provide some positive
advantages to both entities: employer and employee (Hendry, 2012). Here are some of impact of
these activities to worker and manager explained as below:
Benefits to Employee
Inspire Worker
The activities and programmes that human resource manager organise is coordinated to
stimulate and inspire workers and their morals, confidence. This increase the ALDI's overall
performance and lead the organisational to achievement path. The cited company develop some
terms and guidelines in regard of worker employed for encouraging them.
Training to Workers
HRM monitor and control the practices that can assist in meeting the main objectives and
mission of ALDI. For that, they provide the training and development programs for their
employee (including new candidates and professional) to familiarise them with the new
technologies and trends of market that enhance their skills and knowledge.
Innovation in Employees Proposal
This is essential for an organisation like ALDI to innovate their ideas and concepts for
developing in market as well as increment in the performance of their workers. This aide them a
better experience with UK's largest retailing chain ALDI that turns them from mature to
professional.
Benefits to employees
Strengthens Team Working Abilities
Human resource management is responsible for organising various events, activities and
team work practices within ALDI to increase the interaction of employer with the employee.
These activities create a positive environment of workplace transforms into friendly,flexibile and
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more cosy (Chelladurai and Kerwin, 2017). This strengthens the team working spirits among
worker the facilities new ideas, thoughts and concepts to the employer related to a specific topic.
Effective Performance of Worker
Better performance of employee working in ALDI renders more quality products and
services. HRM manage the external as well as internal environment, majorly focus over the
worker's satisfaction of requirements and expectation which encourages their morales. This
create a better bond between organization and employee supporting it effective quality of
operation. Employer get convenience in accomplishments of goals and objectives of enterprise
with the help of HR.
Aids in Process of Decision Making
An HR employ the worker according to the needs and requirements of employer for
which they go through the entire recruitment and selection procedure. HRM manages the
relationship of organization with their workers helping in gaining their participation in decisions
making process through using various approaches and techniques. This provide support to
employer in creating or building strategies facilitating diverse ideas, concepts and opinions over
a particular subject.
Thus both employer and employee have some benefit out of all activities that an HR
coordinate within cited organisation which have led this to heights of achievement enabling
ALDI third largest grocery retailers in all UK (Buller and McEvoy, 2012).
P4 HRM practices for increase organisational profit and productivity
Human resource manager play a crucial role in maintain and controlling the personnels of
an organisation as they organise hiring,staffing, training, development, promotion and other
programmes. It affect revenues in many ways in which some of the techniques are explained as
below:
Improve Employee Abilities and Performance
HRM main purpose is to improve the abilities and qualities of worker that is working in
enterprise and reduce the conflicts situation. For aiming that they develop those activities and
approaches for worker that can evolve their basics.
Execution and effective direct Settings
7

This is essential for an organisation like ADLI to have appropriate terms and guidelines
for contouring their visions, mission, objectives and goals. HR helps in recruiting or selecting the
perfect manager or leader for the organisation that helps in leading the overall entity.
Effective communication grouping individual and team
This is the duty of Human resource manager to create an effective communication within
the workplace of an enterprise. For this they form various groups and teas to encourage their
performance influence the overall operation positivity.
Compensation for Increase Performance
When HRM of ALDI use this rewarding strategy to maintain their relationship with their
workers, it automatically increase their profitability and productivity (Brewster and Hegewisch,
eds., 2017). Organisation perform it in non-monetary or monetary system for which the
employee work more purposely.
Sharing and Cooperating
The enchantments of performance of cited organisation raise when some other enterprise
or inverters share funds in regard of ALDI. GRM create or strengthen the relation with the
shareholders and stakeholders which crate a positive image of firm in market. This indirectly
increase the demands and share value of organization.
Improve Worker Skills
ALDI may haver to face some threat because of competition which are providing the
same in lower cost which is impacting on the profitability of cited organisation. For creating a
unique impact as well as increasing in the competitive market, the company require to evolve in
market which can be done by developing the initial skills of employee.
M3
Human resource management utilize various techniques for the development or
maintenance of worker within the organisation for the evolution of enterprise. Here are major
methods of HRM practices which they perform to get overall increase performance.
1. Recruitment and Selection
Organise the hiring and selection process in ALDI for retaining the employ and
employing skilled people for the organisation top develop and evolve.
2. Training and Development
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Coordinate various programme for improving their abilities and skills and familiarise the
with the working environment of ALDI.
3. Employee Reactions
To manage the employee relation with the employer as well as enterprise, HR negotiate
various terms and manage events, plans schemes team work activities for retaining their curiosity
within the work.
D2
Human resource management coordinated practices directly influence
the profits amount and productivity of organisation straightly and indirectly.
They Improve workers skills of cited organisation and enhance work
qualities of employee. This helps in directing the worker for the rights
direction to maximizing the results of implied strategies. Team work
activities carte a friendlily environment within the enterprise that create
they interest for work among employee. Various processes helps in several
situations provides assistance in the organisational development. Training
and development improve the skills and abilities of worker whereas
recruitment and selection aid in accessing and hiring best worker for the
organisation and job profile. Management of employee relation helps the
enterprise like ALDI to create a positive and flexible work place and make
the better an effective relation with the worker of the company.
TASK 3
P5 Importance of employee which influence HRM decision making
Employee relation helps in satisfying consumer by encouraging the morals an values of
employee indirectly or indirectly (Boxall and Purcell, 2011). For managing those relations,
industrial democracy have catered the new era in which is compulsory to comply by Companies
of UK. Worker of ALDI is the main reason of its success and HRM ensures the decisions making
activities is made according to that.
Sharing of Work
To render convenience in the entire operational activities,. Employer allocate assignments
different little tasks which helps an organisation to accomplish competitive objectives are
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advantageous of ALDI. For this HR performs some activities to crate a friendly and better
environment of company. HR perform those activities which can stimulate the basics of
employee.
Avoid Issues of Employees
Effective communication lead to good relations with the cited organisation of employee
that indicates to minimum conflicts and issues of workers. HR makes the decisions in favour of
those consequences that can reduce those issues and disputes and helps in proper functioning of
activities.
Gain the Credibility
proper workplace retain the worker within the organisation working more pleasantly and
potentiality. This helps in gaining the loyalty of them in regard of organisation. HR develop
those activities and terms which can stimulate them which indirectly help in increasing the
dedication.
Interact Effectively to Ensuring Employment Legislation
Management of ALDI insures either the laws are being comply while formulating
policies and terms (Barney, Ketchen and Wright, 2011). HR makes sure the all rules and acts are
covered while determining decisions related to the policies.
Thus, the activities of HR is maintained according to the employee relations and terms
which is major purpose of ADLI human resource management while performing in cited
organisation.
P6 Element of employment legislation and impact of HRM decision making
To protect the rights and legislation of an organisation, state have provided some laws
and rights to workers which every organization including ALDI have to follow during
determining the policies and terms of company undertook. This activities affect the decision
making process of Human resource management as they have to consider all these legislation
under the consideration while making any decision.
Minimum payment act
According to this act, state of UK have set minimum wage according to the base of age
which the organisation have to pay their employee (Armstrong and Taylor, 2014). Nude the
determined amount payment, employee can claim against the company.
Equal wage act
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To reduce the wage discrimination ion the basis of gender, region and other factors, this
law was introduced in which every worker have rights to have the equal pay on the same profile.
Employee right act
This acts includes few rights for worker to reduce the exploitation and unemployment of
youth from the country. According to this act every worker have some rights including job and
health security, life insurance etc.
Employee Equality act
To avoid distinctiveness on the basis of religion, culture, gender etc., workers can not
differentiate among the workplace. They have right to be treated equally to their fellah.
Disability discrimination act
To facilitate a proper treatments to the disables this acts was formed according to which
no disables should be behaved wrong fully on the workplace.
Working time deliver
According to this the time of working is 48 hours maximum, after which the organization
have to pay to employee in case if they want them to work.
These rights should be remind to HR whole making the company policies and terms. In
case any strategies and plans are being organised in the office environment, HR have to make
sure tat no rights of them is being discriminated. All decision making activities is made
accordingly to treat employee right in the era of industrial democracy.
M4
The Human resource manager implement those strategies in the internal environment
which can help the in improving the overall performance but also make sure the environment
rules are being followed. While building the strategies for the enterprise, HR involve these
employment laws and legislation and make the decisions of them according to the state acts and
laws. This is how it affects the decision making of cited organisation's HRM practices.
TASK 4
P7 Evaluate HRM practices in work location
HRM is significant for large organisation like ALDI because it is too complicated to
control all 70,000 employee in various places of world (Rousseau and Barends, 2011). HRM
examine all activities which is being implemented for maximizing their influence over the
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operation to create a strong internal environment of for competing the competitors. For
deploying business it is necessary to have a positive image of organisation among society for
which ALDI include the HRM within the organization. Human resource manager helps in
satisfying employee that indirectly affect the consume. For example skilful consumer facilities
those services which non- qualified can not. HRM make sure that the workplace is fully positive
and systematic that can increase the profitability of enterprise by raising the quality of services
and products that company provide.
Human resource manager of ALDI coordinate effective techniques in systematic way that
can maximize the productivity of operation which is functioning in the organisation. They recruit
most skilful or talented employee suitable according to the company and job profile to meet the
target in a period of time. Here are some impact that HRM plays in achieving goals on
workplace:
Recruitment and Selection Process
HR of ADLI helps the employers and leaders in seeking best and qualified employee who
can aid in expansion of revenues and trade of cited organisation. HRM organise these activities
by using effective approach of hiring that assists them in attaining the competitive objectives
(Thompson, 2011).
Acquiring of Experts
HR of organisation builds a creative workplace filled with talented employee which are
select by performing recruitments and selection process. Through this procedure they select most
qualified employee for the jobs profile of enterprise so they can helps in accomplishing the
organisational goal and objectives.
Resolve Conflicts
This is role of HR to avoid the issues or conflicts emergence within an organization by
undertaking all activities and laws of employee in the policies of ALDI in an effective manner.
This helps in proper functioning of workforce.
Grooming and Training
For introducing the employee new technologies and methods which is trending in the
market, ALDI organise training and development programmes for their worker which build a
fresh environment of work (Wright and McMahan, 2011).
Create a Flexible Workplace
12

HR of ALDI helps the manager in creating the workplace flexibility and friendly
environment by performing some brain storming activities.
M5
The workplace management is done by HR of cited enterprise which helps them in in
increasing their business. This is the duty of HR to control the issues and workplace disputes and
build a proper environments for the employee. ALDI is giving the credits if their success to their
employee which is working hard for accomplishing the target which have been given by the cited
enterprise.
D3
Employee relation management is necessary elements for which
Human resource management work for the organization. Through
complying the employment laws and legislation in the policies and events of
enterprise, HR manage the ER of company which affect their decision
making ion various ways. The determination guidelines of ALDI, events and
programmes planning, training and development process is influenced on
the basis of ER and its nature which is the duty of HR. Employee relation manage
the better and effective workplace for which the human resource manager develop the activities
which are more in favour of them. The have to comply the lass and legislation of government
and according to which ALDI's HR take the decision and set the guidelines of their company.
This is how the decision making of a firm relay on the employee relation administration of an
organisation.
CONCLUSION
According to the above report it can be concluded that the human resource management
is the backbone of organisation which functions to manage the entire employee by staffing,
compensating them for maximizing performance of organization indirectly. HR of a company
organise various activities including training and development, recruitment and selection as well
as rewarding facilities in order to maintain the relationship with the workers for strengthening the
connection of employers and employee. To reduce they conflicts issues related to the
organisational policies they perform negotiation and bargaining process which not only enhance
the productivity and profitability of organisational as well as maintain the secrecy of confidential
13

content that portray a better image of company among society. Thus, it plays a vital role in
increasing overall performance of employee and enterprise.
14

REFERENCES
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practice. Kogan Page Publishers.
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Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
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Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
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Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
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practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
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Rousseau, D. M. and Barends, E. G., 2011. Becoming an evidence‐based HR practitioner.
Human Resource Management Journal. 21(3). pp.221-235.
Thompson, P., 2011. The trouble with HRM. Human Resource Management Journal. 21(4).
pp.355-367.
Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’ back into
strategic human resource management. Human Resource Management Journal. 21(2).
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