HR Management Practices and Organizational Effectiveness

The given assignment is about Human Resource Management (HRM) practices and their effect on organizational performance. It involves analyzing the relationship between HRM practices, employee well-being, and organizational effectiveness. The assignment requires referencing relevant studies and literature to support the arguments made.

Human Resource Management
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Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................4
P1) Purpose and function of HRM about workforce planning and resources in Aldi.................4
P3) Benefits of different HRM practices in Aldi for employer and employee............................9
P4) Effectiveness of different HRM practices for profit and productivity................................12
TASK 2..........................................................................................................................................14
P5) HRM decision making and employee relation....................................................................14
P6) Key elements of employment legislation and impact on the HR decision making............16
P7) Applying HRM practice in the work-related context of Aldi.............................................18
Conclusion.....................................................................................................................................20
Referencing....................................................................................................................................21
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Introduction
Human resource management is the term used to describe the formal system device for the
control of people within the organisation. In this study, Aldi has played an important part as an
organisation to explain the functions of HRM. The importance of HRM is to improve the
potential ITI of the employees for different achievements with objectives and goals. The
interactive out the personnel management has controlled the employee who was considered as
the general theory for managing the employees. The revolution has brought through HRM by
gaining satisfaction in the employees as well as in the organisation. As HRM is a vital part of the
organisation nowadays, so the first segment has introduced the function of HRM with different
approaches to selection and recruitment. The HRM practices have helped to understand the
organisational profit and productivity. Also, the application of HRM practices and legislation
about work has helped to give a broader view of benefits of HRM.
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TASK 1
P1) Purpose and function of HRM about workforce planning and resources in Aldi
Aldi has realised that the critical success of the business is the people and the employees. It is
essential for an organisation to understand amount an efficient HRM system that has focused on
delivering an industry by leading the training packages. The large business of Aldi about
resources like materials, equipment, Technology, employees and customers has aimed to have
the right skills to achieve the aims and objectives of the company (Armstrong, and Taylor, 2014).
Human Resource Management is the business function that has focused on the aspect of Aldi.
The department had and showed the efficient management among the employees by delivering
the overall business plan and productivity.
The term workforce planning and succession planning are often used interchangeably. It has
helped the management of Aldi with a specific way of alignment in the workforce with the
business plan and addresses the current and future workforce issues.
The primary functions concerning workforce planning and resources of Aldi are:
Benefits and compensation: The human resource development department have introduced
good salary and training to the Employees. It was also benefit is the Employees with insurance in
the job, bonus, pension plan, commission as well as medical assessment for family andownself.
Improvement in the department as well as among the employees: Aldi has a decentralised
organisation structure so the organisation should enable on expanding the Human Resource
Department and improve the composition. It can be more cost-effective and train the employees
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with fun. It will contribute to the professional development of the employees as well as the
Human Resource Department (De Bruecker et al. 2015).
Planning: The organisation focus on the appropriate numbers of the candidates at proper time
and place. The planning Process has helped to manage the correct individuals for the
organisation and with the current workforce and resources.
Recruitment: Aldi generally Looks for eligible candidates with diligence, honesty, educated,
dedicated and the team player.
Staffing: The stuffing of right can be reduced very necessary however Aldi always invested in
graduating the training program to the fresh graduates. This can help to improve the proficiency
in the work.
Selection: The recent development strategy has aimed to fill at least 200 graduate position for 25
new stores in a year. Aldi will do this with smarter shopping employment opportunities, and Brie
tells competition in the Australian communities.
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Figure 1:Functions of HRM in the organisation
(Source: De Brueckeret al. 2015)
P2) Explaining the strength and weakness of different approaches to recruitment and
selection.
Recruitment can be termed as the fundamental method of the Human Resource Management
with a defined planning process to meet the objectives of the business (Marchington et al. 2016).
In Aldi, the primary function of Human Resource Management in recruitment was to understand
the job design, performance appraisal and Management, career planning, promotion and transfer.
Aldi has focused on two different approaches Internal and external recruitment. Internal
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recruitment is the process in which a company will use internal sources of recruitment to fill the
vacancy with an existing employee of the business. The method of external recruitment deals
with a new search for new candidates outside the organisation so that the position can be filled.
Figure 2: Recruitment approaches
(Source: Marchington et al. 2016)
Both the recruitment approaches of HRM and has few strength and weakness:
Internal recruitment External recruitment
Strength Weakness Strength Weakness
The internal
recruitment process is
much more
comfortable and
Aldi has lost new ideas
or energy coming into
the business through the
internal recruitment
Aldi with innovations
of Technology and
products has brought
new calendar new
The processes were
quite expensive with a
cost for advertising the
job and arranging the
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quicker to identify the
high calibre candidates
from various
candidates.
The process is, and
thus Aldi has
advertised the job
through internal
recruitment.
The organisation has
adopted to promote the
candidates through
IJPs and promotions
which is the process of
internal recruitment.
The recruitment
process has helped the
management to
understand the mind
and the hard work of
the employees.
process (Mayes et al.
2017).
After promoting the
employees, most of the
employees left the
organisation and object
for a better
organisation.
The internal recruitment
limits the potential
number of candidates.
It has created
resentment among the
employees who feel that
they were overlooked
for the promotion.
ideas to the business
through external
recruitment.
In external recruitment,
Aldi has chosen the
best candidates as there
is no limit to the
number of candidates
for screening.
The company has
exposed the diverse set
of skills and
experiences(Olander, et
al. 2015).
Aldi has used the
recruitment agency,
referrals and
Advertising in the
social media.
interviews.
It has taken a long
process for the
organisation to choose
the best candidate.
The organisation has to
take a risk as the
management were
unknown about the
potentiality of the
candidates in the work
culture.
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The selection process refers to the steps that are involved in closing the desired people with right
qualification to fulfil the current or future job openings. After recruitment, Aldi follows aptitude
test, quick test, personality test and face to face interview to understand the candidates better and
select the desired candidate. This has helped the organisation to predict the future performance of
an individual by following the standard tools and eliminating the biases in the selection process
and has adopted two approaches.
Reliability: The selection process was validated and was measured by different statistical
methods. The organisation has presented the correlation and Coefficient from which has
arranged from 0-1. However, the disadvantage is that the test can be sometimes hectic and
improper as most of the candidates get tensed. But it always helps to reduce the error in
measurement as much as possible (De Bruecker, et al. 2015).
Validity: The term validity refers to the test measure which was closely linked with the intended
focus. Certification test can help the employees to understand the specific job or occupation and
the organisation to understand the competitiveness of the individual. This processor has helped to
identify the job task and behaviours, however, the disadvantages that it cannot measure the task
or skill accuracy of the individual.
P3) Benefits of different HRM practices in Aldi for employer and employee
The human resource management is used by both the employers and employees in Aldi. It is
done so that there can be a control in the activities and improve the performance of the
organisation. The typical activities of HRM in Aldi include training, employee benefits
administration, paying, hiring and also firing.
The benefits of different HRM practices in Aldi are:
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Retaining qualified employees: Organisation has provided easy access and flexibility with
employee benefits so that they can manage the risk and burden in the organisation. A good hike
and promotion facilities have helped to retain the qualified employees (Guest, 2017).
Positive behaviour: Aldi has provided the positive working environment unfavourable benefits
for the employees through the practice of HRM. It has helped the employees to get motivated
and improve with the more productive in the organisation. The culture of the organisation has led
to complete satisfaction which standard laws and regulations.
Developing the employees: HRM Practice has satisfied Aldi by increasing the employees and
employers with edit values in the competitive market. The training and certification courses
especially in the Lean Six Sigma, has raised the knowledge of the employees and skills.
Improving the performance: Aldi has motivated the employees with various rewards according to
their performances. This helps maintain the alignment between the employers and the employees
and has helped the organisation to recognise the potentiality among the employees (Landy, and
Conte, 2016).
Developing relationship: Maintaining a good relationship in the work environment has helped
every individual to a game on success for their career. Thus, Aldi has implemented different
games like quiz competition, interoffice challenges etc. to maintain a strong bond with every
employees and employer. It has helped to increase the performance and take necessary action if
there is any conflict.
Building a flexible workplace: In Australia, Aldi focused on the current workers of the
organisation with different conditions and needs of the employees. The department understood
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the diversity and the skills of the employees and thus has adopted strategies to mention more
flexibility. It was also focused on the safety of the employees by implementing safety regulation
laws for the workers so that it can bring positivity in the work environment (Price, 2016). The
composition of the teamwork and accountability method has helped in customising the aspect of
the job for their lifestyle.
Motivating the workers: The managers in the organisation has maximised the performance of the
employees so the employers are trying to recruit and promote managers who can manage to work
effectively and efficiently. Aldi with different nature and practices has motivated speech Walkers
in a positive way which has increased the thinking of being unique.
Figure 3: HRM practices in Aldi to satisfy the employees with different benefits
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(Source: Price, 2016)
P4) Effectiveness of different HRM practices for profit and productivity
The effectiveness of HRM for Aldi has helped with increased profits and productivity. The
practice of best human resource management has not only focused on the productivity of current
year but also has focused and development in the future.
Figure 4: Profit of Aldi
(Source: Boxallet al. 2016)
Innovation and high-performance employees: HRM has promoted an innovative environment
and motivated their employees for better facilities in Aldi (Boxall et al. 2016). Dealing with the
vendors and operating in the back office my understanding the employee-customer-profit chain
has helped the performance of the employees. Introducing of incentives has also contributed to
motivate the employees who have increased the production of the organisation.
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The effectiveness of direction and execution: The leaders and the managers in Aldi have set a
proper course to achieve the goals and the roles of the workforce. This has helped to recruit the
appropriate managers for the right place and the excellent location with profit and productivity
(Timming, 2015).
Team and individual goals with effective communication: The HRM practices in Aldi have
helped individual and organisation to meet the goals and the requirements of the stores quickly.
The communication process of the organisation is minimal and has provided the active mode of
communication. The fulfilment of effective communication at the end of the day has helped to
make a living and making compensation for becoming the most critical aspect of a job.
Effectively rewards drive performance: The nature of the work environment of Aldi is quite
fun as in each deadline the managers help with different goodies. The constant motivation from
the high-level management and the department has developed the skills of the employees
including their performances.
Collaboration: The productivity and profitability of Aldi have improved and our forecasting to
enhance shortly with the help of cooperation in the best market share. The best ideas and
contribution tools of HRM has helped to develop formal methods to increase the sharing process
in the organisation (Delery, and Gupta, 2016).
Non-monetary factors: The managers, leaders and the team Walkers provide nonmonetary
factors to increase the employee excitement, energy, motivational loyalty in Aldi. The factors
include praising, recognition, exposure, challenges, feedback and learning opportunities.
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TASK 2
P5) HRM decision making and employee relation
The employees in Aldi share the particular relationship with the fellow workers. Interaction with
every employee has helped the workplace and the employees to be motivated by fun and
emotionally. It is very essential to identify that people are comfortable with each other and work
as a single unit towards a common goal. Employee relationship with the practice of HRM and
decision making has helped to identify the standard terms in the organisation of Aldi.
Working quickly in the organisation with all workers: In Aldi, the healthy relationships
among the worker have eased the workload of the store (Valentine, and Fleischman, 2018). The
work is equally distributed to every member walking in the store, and the desired task is readily
achievable in the assigned time. The ability to assist and help each other has made the job easy.
The employee engagement to the HR in decision making has helped to make the workers happy
in their performances. The effect of work relationship on Aldi and commitment has increased the
quality relationship and boosted the engagement and productivity by creating a healthy coworker
relationship.
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Figure 5: Employees are working together at Aldi
(Source: Valentine, and Fleischman, 2018)
Removing the conflict among workers: The mitigation issues between the workers of different
backgrounds can be challenging in the work environment. Aldi in Australia has taken the right
time to solve the conflicts with evidence and proof for the support of the statement (Gall, 2017).
This has reduced the chance of conflict by assisting the performance in fulfilling the goals. The
productivity does not get affected due to this conflict and helps the HRM to make better
decisions for the company.
The loyalty of the employees: The high quality and exceptional value to the different customers
have helped the organisation to lead in the market in Australia. The loyalty programs adopted by
Aldi for the employees have helped to increase the performance continuously and thus have
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presented more than 500 stores in Australia (Timming, 2015). The decision making of HRM has
improved with proper remuneration for the employees.
Figure 6: Employee loyalty and satisfaction
(Source: Timming, 2015)
Ensuring equality by communicating effectively: Effective communication is the key to
success in every organisation. The top-level managers of Aldi always correspond with the
employees so that they can understand the needs and problems of the employees. This has not
only solve the issues of conflict but also help in ensuring equality with higher management and
lower management. The proper communication has also improved the Human Resource
Department to take an appropriate decision at the right time.
P6) Key elements of employment legislation and impact on the HR decision making
Legislations, loss and other regulations such as the employment rights act, equal pay act, sex
discrimination act, the national minimum wage act and the disability discrimination etc. are
compiled in Aldi for making decisions for HRM. The choice is changed with the plan which is
set up by the HR department for the benefits of the employees (Gall, 2017). The Human
Resource Department of Aldi is responsible for the multitude of employment and workplace-
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related laws. It has helped the organisations for maintaining discipline and ensuring the
requirements are effectively used throughout the company.
The fair labour standards act implemented in the organisation for maintaining the minimum
wages and overtime pay for the employees which is over 40 hours in one week. The child labour
laws are also implemented in the field label standard which has helped the management and
human resource management of Aldi to explain the business aspect. The occupational health
and Safety Act was enacted in 1970, and Aldi is compliant in utilising this law for the protection
of workout from unsafe work environments. The Human Resource Department has kept all the
required documents for the hazardous material, injuries or deaths etc. and has helped to give
proper training for any dangerous jobs in the workplace to the Employees (Strong, and Howard,
2017). The Civil rights act enacted in 1973 was introduced in Aldi immediately to protect the
employees from discrimination based on race, colour, religion, national origin or sex. The equal
pay Act has helped the organisation to make and identify the illegal works based on the gender
of employees of the same position and responsibility level.
The age discrimination act has not only helped in protecting the employees and applicants over
the age of 40 but also help with the proper benefits of the organisation. Aldi has utilised this for
the people who have achieved their long-term service and has helped Aldi to grow. Aldi has an
excellent medical benefit for the employees who are working over there as well as their family.
By enforcing the act, the family medical leave act which was introduced in 1993 has helped the
employees to work efficiently. This is one of the strong points of Aldi which has diminished the
attrition level (Makokha, 2018). The acceptable reasons for taking leave including the birth of a
child, care of the child has helped the employees to enjoy the benefits of Aldi and has also
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supported the organisation with best services. The human resource management has also focused
on the wages and remuneration, trade unions and other industrial relationship, welfare, social
security, affirmative actions etc. by considering all the laws and regulations.
The impact of employment legislation when HR managers decide on the job is regarding the
workplace design and the safety measurement of the workers. The HR personnel comply the
relationship with the Minimum requirements and means of the workers in the store. The
principal objective of the legislation is shielding workers from the discrimination and inequality,
so Aldi has a firm rule taken by the HR managers which has formulated according to the plan in
the workplace and has managed the policies easily (Armstrong, and Taylor, 2014). The
legislation also regulates the payroll policies and other remuneration and benefits plans in line
with the working time. According to the HR decision in Aldi the employment legislation act has
impacted in the social security plans of the company and has helped with the situation and job
nature easily.
P7) Applying HRM practice in the work-related context of Aldi
The changes in the Technologies are the current trend in the environment. The purpose of
attaining the work is directly connected with the whole world. The impacting on the recruitment
of the employees by taking help of technology through HRM practices has developed an
essential feature in the organisation.
Social media recruitment: The HR managers have taken help of the social media to make the
recruitment process easy and can get the desired employees quickly (Ramanathan et al. 2017).
The media sector has helped Aldi to make the best use of the recruitment by making use of the
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referral sources. The analysis of this context has helped the organisation to increase the
recruitment process 30% successful till 2016.
Mobile recruiting: The more significant portion of the organisation is not ending to mobile
drafting that can help the HR managers to save time and to understand the basic idea of the
candidates. In Aldi, the HR managers initially take an interview in mobile and then they decide
for the second interview if they fill the candidate is eligible for the post.
Career pages and job boards: Most of the recruitment of the Aldi has done by the new
recruitment process through different portals of the jobs (Price, 2016). The application of
Technology has helped to meet the effective utilisation of the recruitment tool. The career pages
are optimised which has supported the messages to get a transfer from each particular individual.
System tracking: The system tracking is most helpful technology that has impacted on the
process of recruitment. The hiring managers and the recruiters of Aldi have found it as one of the
useful tools for making a rigorous scan of the resumes (Gall, 2017). This is the best way that
Aldi has an implement for getting more accurate resumes and by savings time.
The outcomes of implementing the technology to increases tools have helped to maintain
proficiency and positive correlation with the employees as well as with the HRM department.
This application has helped to increase the productivity and the long-term organisational
performance of Aldi. The HRM practices and job satisfaction has correlated with the turnover of
Aldi efficiently (Clegg, et al. 2015).
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Conclusion
In this study, the aspect of human resource management has been discussed with consideration
of the effectiveness of HRM in Aldi. The impact of decision making with good employment
relation, the different employment acts or the legislative power of the worker has been described
in the details. The study has drawn the line defining the various terms of HRM and the impact
effectively. The strength and weakness of recruitment and selection have not only helped to
identify the critical elements of HRM but also has focused on the internal and external factors.
After the evaluation of the project, it is evident that the human resource management in Aldi has
helped the organisation to take better decisions for achieving the strategic goals.
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