Human Resource Management Challenges

This assignment delves into the complexities of human resource management (HRM) by examining various challenges faced by organizations. It analyzes topics such as recruitment and selection processes, the impact of high-performance HR practices on employee attitudes and behaviors, and the role of evidence-based HR practices. Furthermore, the assignment considers the influence of a multigenerational workforce on HRM practices. The provided sources offer insights into these challenges and potential solutions within the field of HRM.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions and the purpose of HRM..................................................................................1
P2 Pros and Cons of different approaches to recruitment and selection................................3
TASK 2...........................................................................................................................................4
P3 Positive effects of different HRM practises within an organisation for both the employer
and employee. ........................................................................................................................4
P4 HRM practises for upraising entity's profit and productivity............................................4
P5. Analysing the importance of employee relations which influence HRM decision making..5
P6. Key elements of employment legislation and the impact it has on HRM decision making. 6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resources are the most unique and valuable assets known to an organisation. The
management becomes successful only when entity's human resources are dynamic in nature and
willing to attain a challenging work, specially when the world became a global place and
societies are in an edge of flux. . Vanishing of useful resources and raising the modern day
worker's reckoning makes the management more complex in nature. Even though HR functions
are specific in nature and are responsibilities of HR department, managers of an entity are the
actual bodies who uphold the responsibility of the human resources .
Organisation which has been chosen is ALDI. Its a German company established in 1946
by two brothers KARL and THEO ALBRECHT by taking over their mother's store who was
founded in 1903. In present, it has over 10,000 stores in 18 countries with an estimated turnover
of approx 50 billion Euros.
There are various number of things which are going to be covered in this assignment
which are related with HR management. It is an essential thing which enable an entity to grow
and developed in an appropriate manner. Along with this , at workplace there are different
interest of mangers who work on the HR management cycle. Hence, every employee have to
actively participate in an entity and take involvement for the things which are taking place in an
entity.
TASK 1
P1 Functions and the purpose of HRM
To run an entity effectively, human resource department has to be structured in proper
manner so as to avoid tough times and manage most valuable resources – the employees
(Barney, Ketchen and Wright, 2011). There are several functions which are performed in ALDI
but most of it there are six major functions which are being performed in ALDI and even a small
business can perform it in order to achieve the growth rate of success and soothing environment.
Recruitment:
The fulfilment of the positions taken to fulfil them are the ways by which the success of
recruiters can be found (Boxall and Purcell, 2011). Recruiters whose workplace is house
are key role players as they have the major proportion in providing recruitment and staffing
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services. They advertise job postings, candidates sourcing, screening of the applicants,
conducting preliminary interviews and hiring for the final selection of candidates.
Welfare:
Under safety's act 1970 , ALDI have a duty towards the welfare of the staff members
(Brewster and Hegewisch, 2017). HR needs to provide a safety training and effective
knowledge about injuries and fatality errors a staff member can face. To manage the entity's
compensation issues HR safety and risk specialists often work closely in order to maximize the
benefits.
Employee Relations:
In non-ionised environment of work , HR's function can be can be added and managed
two HR specialists with specific expertise in each area . To run ALDI in a smooth manner HR
need to combine the labour relations and Employer relations. In employee- employer relation HR
plays a vital role as he/she is the only person who communicates from both sides and express the
thoughts of opposite end through job measuring satisfaction, employee engagement and
resolving workplace conflict (Buller and McEvoy, 2012). Development of management
response, Campaign , collective bargaining , negotiating labour's union contract issues may be
included in labour relations functions.
Benefits and Compensation:
The compensation part of HR can be handled by a person who has dual expertisation. In
this sector , HR manager constructs a compensation structure and keeps check on the payment
practises which are being used to compensate workers. Group health coverage rates can be
negotiated by the compensation and benefits specialist with the insurers and coordinate activities
with the retirement savings fund administrator. Major component of the compensation section in
payroll, however administrative functions like payroll are outsourced by employers.
Concession:
Its a critical HR function concussed with labour and employment laws. Non-concession
can have hazardous results on ALDI as there will conflicts among employers and employees
which will result in unfair practises of employment, unsafe working conditions which will affect
productivity and ultimately profitably will be an outcome (Chelladurai and Kerwin, 2017).
Training and development:
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Every HR department provides leadership training and professional development. Mostly
leadership training is provided to those who are newly hired or who has been promoted as leader
but does not have an experience of it . Professional development are provided to staff members
who are looking for opportunities or employees who want to achieve tasks given to them. ALDI
provides such type of programmes and invites the employees who are in need within the
entity. Tuition assistance and reimbursement are the programs which are considered as HR
training and development area.
P2 Pros and Cons of different approaches to recruitment and selection
Recruitment is the fundamental process of the HR management by which company
resources are allocated (Harzing and Pinnington, 2010). Recruitment can be of two types , one is
internal recruitment where an employment can be fulfilled from inside, second is the external
recruitment which is recruiting of filling employment from outside.
Internal recruitment has a strong point and that is quick decision making. Higher authorities fulfil
the vacancies by transferring an employee from one department to another, in this way vacancy
is fulfilled and reward is also given to the particular employee (Hendry, 2012). One more factor
that comes is job rotation which again is the strong part of the internal recruitments the employee
will get the knowledge of the different departments. It saves the cost of training , recruitment,
and ensures a come back investment. Now the question arises the employee is transferred from
one department to another then the left vacancy will be fulfilled by whom, another weakness
comes that employee may not perform as expected to another section like he/she was in previous
department (Keep and James, 2010). Now the external recruitment benefits that it gives an
opportunity to the ADLI that they can recruit a better and deserving person or a post rather than
transferring someone but that comes with a weakness that this procedure will take time and
involves cost as well.
So it have positive and negative as well. Both can be applicable and suitable for the company
but it varies from situation and recruitment of job.
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TASK 2
P3 Positive effects of different HRM practises within an organisation for both the employer and
employee.
It promotes positive behaviour and creates favourable conditions for both employees and
employers to work up to their capabilities in ALDI (Kehoe and Wright, 2013). Every person
working in Aldi has the responsibility of cooperating not only with colleagues but with authority
or lower division as well which includes that HRM practises reinforce and reward desired
employee behaviours. The opposite side of wall includes that mangers do not encourage or
ignores the unwanted behaviour of any level of employee. Staff members knowledge and skills
increases business competitive advantage so ALDI provides resources for employee education
and training chances to use and spread knowledge.
A flexible workplace is always a advantage of a company who has larger number of employees.
To retain workers strength ALDI constructs flexible design of work environment , work
locations , the alignment of team workers and customize the section of their job in order to
flexibly their lifestyle and that is the reason why employers hire the managers who have the skill
of polishing the employee talent. Staff members who have positive managers tend to feel more
motivated.
P4 HRM practises for upraising entity's profit and productivity
First and foremost major practise is recruitment in which the employer recruits according
to the vacancy as when vacancy is out recruiter in HR appoints the one who fits into that space,
not more not less because both will not end well (Makri, Hitt and Lane, 2010).
Selecting the appropriate person who has the good knowledge will helps in increasing
productivity.
Motivation of the staff members will helps to increase their working capabilities and will boost
their stamina and way of thinking. Proper motivation from time to time will always give a
positive impact on the workers who might be exhausted or are unwilling to complete the task and
thus it will increasing the productivity. Another point which can help in increasing the
productivity is welfare of the staff members . Managers or the HR management can always talk
to the members and can discuss if they face any issue and track their safety (Rees and Rumbles,
2010). Listening to the members and resolving their issues and sharing the things will always
help the management to connect with their employees and that's what ALDI exactly do.
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Time to time training and development internally in ALDI to the staff members will
polish their performances and will give more set of skills which will help them to perform better
in an effective and efficient manner. If benefits are being provided like for example incentives
and bonus then it will motivate the employee to work hard and get the opportunity of earning
more (Renwick, Redman and Maguire, 2013).
If any of the employee gets injured and ALDI provides compensation then that will give
a positive effect on the member and thus these positive effect somewhere will improve the graph
of productivity of the enterprise. Hence These different practises will effect the productivity of
the company in a positive manner.
P5. Analysing the importance of employee relations which influence HRM decision making
To deploy business demographically and geographically, it is significant for an
organisation to manage their employee relations. Now the contribution of worker in decision
making process have been interested after the revolutionary changes catered by the European
Unions which is Industrial democracy in the market to protect the rights of worker within an
enterprise. Labour are very crucial body of an organisation as the are responsible for proper
execution of any strategies more effectively. Human resource manager adopt those techniques
and methods for implying in workplace which can lead to success and enhancement in
operations. Here are importance of in HRM practices affecting their decision making process:
Sharing of Work
Assigning the work in sub groups assist an organisation in meeting the objectives of
enterprise and provide convince in accomplishing a work. By executing the practices in effective
way, employee helps an organisation to meet the desired results for the company. HRM of ALDI
make the decisions according to the employee a in o0rder tom motivate and stimulate them for
making a better environment of work.
Reducing Conflicts among Workers
Conflicts and issues can be hindered by the organisation through maintaining effective
communication among the members of staffs. This increase their morals and values that increase
the level of performances with more confidence and freshness. HRM designs decisions
accordingly in regard of their worker who can render better and efficient quality of products.
Human resource manager organise the activities and undertake those approaches which can aid
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them in maintaining good relation such as suggestion strategy, effective tools of communication
etc.
Earn the Loyalty
Flexible and more indulgent work surroundings renders a effective workforce in an
enterprise which guide the employee toward the more knowledgeable and curious information.
For this the HR manage the whole environment in a systematic away as well as provide them
chances to evolve basic abilities and skills. It helps employee in developing as well as increase
the overall productivity of organisation and sales. Human resource manger evolve those
techniques which can earn their credibility in so they can get longer commitment from their
employee as well retain theme with the company.
Interact Effectively to Ensuring Employment Legislation
Administration is essential to certify that the employment laws are followed by the
framework of an organization to provide them their fundamental rights. Human resource
manager provide the employee right and treatment for making sure that their needs and
requirements are being strategies. Thus the employee relation is influencing their upcoming
strategies which should be according to the legislation. HRM interact constantly with their
worker to make an influence over them creating a relationship with employer.
Thus, the process of HRM play a vital role in decision making procedure affected
majorly by ER activities of enterprise's workplace. Managing the communication among
workforce is the major motive of HR of cited firm.
P6. Key elements of employment legislation and the impact it has on HRM decision making
European Unions as well as trade unions have carried out some laws and acts which was
enacted by the state of UK to protect the fundamental rights of employee while working with an
organisation. They have introduced this new terms which is called Industrial democracy
according which employee have facilitated some right among workplace which a company can
not exploit. These are few of those laws and rights explained as below:
Minimum Wage Act
This act was introduced by the government in 19998 in which they have set some amount
of salary which every company have to comply to their employee minimum. These amount have
been delimited according to the basis of age according which people above 25 age should be
getting minimum 7.50 Euro, under 18 mus be paid 5.60 Euro and above 21 to 25 should be paid
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minimum 7.05 Euros minimal. In case of not lesser amount of wage, employee can claim on the
organization for exploitation.
Equal Pay Act
This act was made to provide justice to women in the business sector for which it was
formed in 1970 passed by the parliament of Britain. This act states that men and women should
be allotted same payments for the work and no discrimination should be done on the basis of
gender. Everyone who work the same have rights to have same wage. This provision to change
the rights is relay on condition.
(Source1: ' Brexit' – the impact on employment rights and benefits, 2016)
Worker Right Act
In this law, some rights and regulation re assigned for the betterment of workers which
involves health and job security, minimum vacations, proper promotional and compensation
rights etc. this was formed in 1996 that have been altered by the parliament according to the
trends.
Equality of Employee Act
On the replacement of Race relation act 1976,it was amended in 2010 which supports to
employee to get equal chance to develop and evolve their abilities related to work. An
organisation can not discriminate their employee on the basis of race, gender, age or culture or
nay other element. Entity have to pay remedies in respect of punishment in case if being
victimized by any one.
Disability Discrimination Act
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To offer the disables respects at the workplace, the parliaments of Britain come up with
the idea of disability discrimination act which was enacted in 1995. According to this act, it is
said that no disables should feel inappropriate behaviour or elimination in the workplace. If in
case they feel such attribute, enterprise have to face the consequences.
Work Time Act
According to this act, the minimum working time are 48 hours for every employee. It was
introduced by the British parliament in 1997 which have been modifies by the parliament with
time. If the enterprise need the work for more than minimum time, they can demand for extra
wage of compensation.
Legislation and laws of employment is required to comply by organisation in their
policies which affect the decision making of human resource management. These not only help
state and employee of enterprise but also assist cited organisation in developing and maintaining
the employee relations reducing issues in workplace. HR of ALDI lead their activities for both
benefit i.e. workers as well as enterprise itself. This restrain HRM by limiting them to develop
those activities which is not in favour of employee.
CONCLUSION
From this above report it can be concluded that human resource management has a vital
role in functioning of internal workplace of an organisation. They manage the recruitments,
staffing, promotion,training and development process order to control and monitor entire
personnel of an enterprise. While formulating any activities and policies, HR make sure that the
legislation ad rights of employee are complied in the document for managing the relation with
workers as well as trade unions. It is the duty of human resource manager to reduce the issues
from workplace which is accomplished by organising team work practices, occasional programs
which assist them creating flexible and friendly environment as well as increase the employee
involvement in decision making process. HRM not only helps organisation in increment of
productivity and profitability but also benefits the employers and labours of enterprise.
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REFERENCES
Books and Journals
Barney, J.B., Ketchen Jr, D.J. and Wright, M., 2011. The future of resource-based theory:
revitalization or decline?. Journal of management. 37(5). pp.1299-1315.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource
Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Buller, P.F. and McEvoy, G.M., 2012. Strategy, human resource management and performance:
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.
Human Kinetics.
Harzing, A. W. and Pinnington, A. eds., 2010. International human resource management. Sage.
Hendry, C., 2012. Human resource management. Routledge.
Jiang, K., Lepak, D.P., Hu, J. and Baer, J.C., 2012. How does human resource management
influence organizational outcomes? A meta-analytic investigation of mediating
mechanisms. Academy of management Journal. 55(6). pp.1264-1294.
Keep, E. and James, S., 2010. Recruitment and selection–the great neglected topic. SKOPE
Research Paper.88.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-391.
Makri, M., Hitt, M. A. and Lane, P. J., 2010. Complementary technologies, knowledge
relatedness, and invention outcomes in high technology mergers and acquisitions.
Strategic Management Journal. 31(6). pp.602-628.
Noe, R. A. and et. al., 2012. Fundamentals of human resource management. McGraw-Hill/Irwin.
Rees, G. and Rumbles, S., 2010. Recruitment and selection. Rees, G. and French, R. Leading,
Managing and Developing People. pp.169-190.
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).
pp.1-14.
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.
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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).
pp.93-104.
Online
The Impact of a Multigenerational Workforce on Human Resources Practices. 2013. [Online].
Available Though:<http://www.ngenperformance.com/blog/hr-training/the-impact-of-a-
multigenerational-workforce-on-human-resources-practices>. [Accessed on 29th
September 2017].
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