Human Resource Management at ALDI

The assignment examines the critical role of Human Resource Management (HRM) in addressing challenges faced by discount supermarket chain ALDI. It highlights how implementing effective HRM practices in areas such as manpower planning, decision making, worker development, product quality maintenance, performance evaluation, and vision creation can help ALDI enhance its operations and customer satisfaction. The document emphasizes the need for ALDI managers to prioritize HRM activities to create a positive work environment and improve overall business performance.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions and purpose of HRM........................................................................................1
P2. Weaknesses and Strengths of various approaches of hiring and selection......................3
TASK 2............................................................................................................................................4
P3. Advantages of practices related to HRM to employers and employees...........................4
P4. Effectiveness of HRM practices in raising organisational productivity..........................5
TASK 3............................................................................................................................................6
P5. Significance of ER influencing decision making process of HRM ................................6
P6. Elements of legislation of employment and their affect on decision making of HRM ...7
TASK 4............................................................................................................................................8
P7. Application related to HRM practices in context to work related...................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
HRM is a procedure of managing worker's performance for achieving the set goals of
organisation. By making effective or transparent HR policies, manager can increase the morale
of workers and can motivate them for giving their best to firm (Armstrong and Taylor, 2014).
For bringing co-ordination among all activities of business and to get the commitment of
workers, it is necessary for every firm to effectively apply HRM concept at the workplace. ALDI
is one of the largest retailers in UK dealing in grocery products. Present report contains
information about various purposes and functions of human resource management with respect
to ALDI. Along with that, impact of HRM practices on the profits and productivity of firm is are
detailed here. Further, various elements of employment legislation and their effect on the
performance of workers are also mentioned under this report.
TASK 1
P1 Functions and purpose of HRM
Main purpose of HRM is to recruit the right candidate for specific vacant job position. It
is used by managers for increasing the effectiveness of staffing function and to hire skilled or
capable candidates from a large number of applicants (Bloom and Van Reenen, 2011). It helps in
ensuring that whether every worker is satisfied with the working environment and compensation
given by company. This concept helps or guides the manager in making effective or ethical HR
practices. Basically, it is used by the manager for making compensation packages for workers.
Manager of ALDI can use this concept in order to attract a large number of potential candidates
and to satisfy the needs and wants of existing staff members.
Functions of human resource management: Development of human resources: This includes conducting training programmes for
giving knowledge to workers for performing their current job. It gives guidance to
employees for their career planning (Functions of HRM, 2017). Enhancement of
employee's skills and knowledge increases the efficiency of business operations and help
organisation in achieving its goals easily. Provide healthy and safe working environment to subordinates: It is the responsibility
of employer to provide healthy or risk free working conditions to employees at
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workplace. Safe environment increases the productivity of subordinates which provide
various benefits to firm in the long run. Developing good relations with employees: Developing and maintaining healthy working
relations with employees is one of main functions of HRM. It helps employers in getting
the commitment of workers and increasing their overall performance. Compensation and rewards: Workers join any enterprise for getting compensation. An
employer is liable to compensate workers in a fair way (Boxall and Purcell, 2011). Other
than basic salary, all rewards and benefits should be given to workers in right time. By
doing this, managers of ALDI can satisfy their workers and maximise their performance.
 Staffing: Workers are one of the most important elements of organisation's success. It is
an important task of manager for recruiting right candidates for performing various jobs
in enterprise. Department of human resource helps manager in increasing the
effectiveness of this process by doing job analysis, planning of human resources required
as well as recruitment and selection. Same can be used by the managers of ALDI for
hiring right candidate in the firm.
 Planning: This is known as one of the important function of a HR manager. He is the one
who decide future activities of business and collect the resources required to implement
those activities.
 Organising: Manager is the one who organise all resources in a way so that employees
can utilise at an optimum level. This help in manager cost of business operations.
 Direction: Manager not only assign wrok to employees but also provide them direction to
complete the same.
 Staffing: Manager of enterprise is the one who evaluate the capabilities of applicants to
hire the right one for perform job in company.
 Coordinating: Managers bring coordination among different activities of enterprise so
company can achieve its set objectives and goals.
 Controlling: Manager is the one who control different activities of enterprise such as
performance of workers, evaluate the quality of firm's product and identify the gap to
fulfil the same.
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These functions of HRM not only increase the effectiveness of various processes of
organisation but also creates a healthy and positive working environment. Same can be done by
the managers of ALDI by properly performing HRM.
P2. Weaknesses and Strengths of various approaches of hiring and selection
Recruitment refers to a procedure of influencing or attracting large number of potential
candidates for filling the vacancies in enterprise (CHUANG and Liao, 2010). For hiring right
candidates, managers of ALDI can use one from the following approaches of recruitment:
Internal approach of recruitment: Under this approach of recruitment, managers
evaluate the capabilities of existing employees for filling vacancies. Existing subordinates get a
chance of promotion by showing their skills or talents under this approach. Strengths: This approach saves time and cost of organisation on training and
advertisement activities. It is one of the fastest approaches and give a lot of choices to
manager for choosing the best one. This approach increases the morale of workers and at
the same time, enhances their satisfaction level as well. As the existing workers are
already friendly with work environment, this saves cost of the firm on conducting
orientation and training programme. Weakness: As vacancies are filled from the existing workers of enterprise, this blocks the
entry of new or fresh talent in organisation (Daley, 2012). Role of manager becomes
complex under this as he has to choose the best one from large number of workers. This
approach demotivates the subordinates who fail to get promotion.
External approach of recruitment: Under this method of recruitment, manager invites
candidates from outside the firm to fill vacancies. Strengths: It brings new or fresh talent in the enterprise and increases their productivity.
As new candidates are more skilled, it saves the cost of entity on providing training to
them. This makes workplace more challenging or interesting as well as maximises the
performance of employees. For increasing the efficiency or effectiveness of business
operations, manager of ALDI can use this approach of hiring.
 Weakness: This is a lengthy or costly process of recruitment. This approach fails to give
the best results always and manager's role becomes more complex under the same. This
gives birth to conflict among new or existing staff members of the firm.
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Managers of ALDI can use one from the following approaches to fill vacancies in
enterprise.
Selection is a process of choosing or selecting the right candidate from large number of
applicants (Gruman and Saks, 2011). For selecting a deserving candidate, manager of ALDI can
use one from the following approaches: Systematic approach of selection: Under this approach of selection, recruiter follow a
sequence of steps for selecting a capable individual.
 Unsystematic approach of selection: Under this approach, recruiter does not follow a
sequence for hiring a skilled candidate but he randomly chooses a resume and compares
skills of that candidate from qualities required for performing the job.
TASK 2
P3. Advantages of practices related to HRM to employers and employees
Practices of HRM helps in creating a positive work environment in organisation by
bringing coordination among all activities. This improves the performance of workers and
encourages ethical practices at work. All this provides a large number of benefits to both the
employers and employees of firm. After implementing this concept, employer of ALDI can get
the following advantages: Building team: Effective human resource practices help the manager in creating mutual
goals for both; organisation and its employees (Guest, 2011). All this helps in building a
team that produces better results in enterprise than an individual. Evaluate HR policies: Human resource management activity helps manager in evaluating
the policies regarding development of staff members. Evaluation of these practices help
manager in taking remedial actions or changes if required. Create positive or healthy work environment: While making the policies regarding
management of human resources, employer has to comply with number of legislations.
All rules or laws ensure that safe conditions should be provided to employees for
performing their routine jobs. By creating a risk free environment, managers of ALDI can
maximise the performance of their employees.
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 Helps in making future planning: Activities of human resource department helps the
manager in collecting relevant information from all departments of enterprise. All this
collected data helps manager in making the future plans of business.
Benefits to employees: Training to employees: Different practices of human resource management help the
employer in identifying training needs of workers (Huselid and Becker, 2011). Training
programmes help individuals in enhancing their skills and making them more able to
survive in the competitive business environment. Increase the efficiency of worker's performance: Healthy and positive work
environment of organisation improves the performance of workers. All this decreases the
cost of business operations and helps firm in providing quality products to its customers
at low prices.
 Motivate workers: Ethical practices of human resource management encourages or
influences fair work practices in the firm. Fair treatment or compensation from
employers motivate employees in doing their best. All this increases the overall output of
the entity.
Managers of ALDI can provide these benefits to employers and employees by effectively
applying this concept. All these benefits help in increasing the morale or satisfaction level of
workers and help employers in getting the commitment of employees in achieving success.
P4. Effectiveness of HRM practices in raising organisational productivity
Profit is one of the main motives for which an entrepreneur undertakes large number of
activities. To generate high profits every year, it is important for every manager to plan HRM
practices effectively because these affect the profits and productivity of organisation in various
ways (Jiang and et. al., 2012). These practices help in defining the process or method of
managing human resources and activities related with them. Under the human resource policies,
training and development programmes should be encouraged because these help individuals in
enhancing their skills and at the same time, improves quality of their work. This helps the
enterprise in making high quality products to its customers and generate a large amount of profits
every year. Managers of ALDI need to understand the practices of HRM and revenue of
enterprise is directly linked with it. Effectiveness of HRM practices helps entrepreneur in
generating more profits and increase the productivity.
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Practices or activities of HRM affect the process of employees of completing the assign
task and this affect the quality of final product made by the workers. So in order to increase the
profits and productivity managers of ALDI need to increase the effectiveness of policies
regarding the management of HR. Different practices of HRM ensure formulation of training
programs for employees which results in enhancement of workers skills and knowledge. When
an employee apply this knowledge at workplace than this increase his productivity as he find
new and more ways to complete a assign task. Along with this, concept of human resource
ensure formulation of fair compensation packages for workers which enhance their morale and
satisfaction towards their jobs. All this increase their productivity and profits of company.
TASK 3
P5. Significance of ER influencing decision making process of HRM
Employees contribute a lot in the success of any organisation. These are the one who
made final products for a large number of customers. It becomes necessary for the manager of
every enterprise to maintain healthy working relations with workers (Kehoe and Wright, 2013).
Quality of these relations directly affects the performance of subordinates which put a direct
impact on the success of firm. For achieving success in today's complex business environment, it
is necessary for managers of ALDI to make various efforts to build or maintain positive working
relations with the staff members. All this affects the decision making process of enterprise.
Commitment or support of workers help the manager in taking complex decisions and achieving
success. Following can be done by the managers for maintaining strong relations with
employees:
 Manager of ALDI should follow an open door policy so that employees can discuss these
matters or issues faced by them at the workplace.
 Involvement or participation of workers should be encouraged so that mutual goals can
be created by the manager.
 Job rotation should take place in enterprise on continuous basis that will help or give an
opportunity to the manager to learn something new.
 Feedback of subordinates should be encouraged in order to eliminate the hurdles.
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 Strong and effective communication should be there among all the departments of
enterprise. This helps in eliminating confusion and defining the roles and responsibilities
of every individual clearly.
 Employer of ALDI should treat all his employees in a friendly manner.
 Healthy and risk free conditions should be provided to employees. Along with this, fair
compensation and treatment should be encouraged.
 Appreciation or promotion should be given to the workers who perform their tasks above
the set standards that will motivate other workers to put more efforts.
 Effective training and development programmes should be conducted by employer for
enhancing the skills of workers.
All these can be done by the managers of ALDI for building or maintaining positive
working relations with workers. Strong relations help the employer in getting commitment or
trust of workers which influence the productivity of organisation in a positive way (Lengnick-
Hall, Beck and Lengnick-Hall, 2011). Healthy and safe working conditions increase the morale
of workers and enhance their productivity. By maintaining healthy relations with employees,
enterprise can attract a large number of potential workers to join the firm. So, in today's business
environment, for achieving success or for taking effective decision, it is necessary to maintain
healthy working relations with workers.
P6. Elements of legislation of employment and their affect on decision making of HRM
Employment legislation is a combination of various laws describing the basic rights and
duties of workers at workplace. All these rules define the responsibilities of employees and
employers towards each other. For making an effective policy regarding the management or pay
of workers, managers of ALDI needs to comply with these laws. All these deal with the
safeguarding of rights of workers. It includes the following: Employment rights act, 1996: This act defines the duties or rights of a worker at
workplace. According to this, an employer is responsible for providing basic facilities to
all subordinates. Equal pay should be given to workers and manager should provide safe
working conditions to staff members (Ployhart and Moliterno, 2011). Subordinates are an
important asset of every company and so, manager should do protection of their rights for
creating a positive work environment and to get their support.
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 Minimum wage act: A rate which is decided by government and every employer is
responsible to give that minimum amount to employees is known as minimum wage. This
amount is timely changed by government according to inflation rate prevailing in the
market. This minimum wage helps employees in fulfilling their basic needs of routine
life. Worker's discrimination act, 1948: As per this act, no worker should be discriminated on
the basis of their religion, colour, caste, gender, age or on any other basis. Equal
opportunities should be given to all subordinates for the promotion and achieving growth
in their career. Equal pay act, 1963: This act states that in an organisation when two individuals do same
kind of job having same capability or skills, they should get same wage by the employer.
Same should be done by the managers of ALDI for increasing employee's performance
and to make or create a positive work environment. Woking time directive, 1998: This act describes that for getting a legal existence of
employment, an employee is responsible for completing the minimum working hours in
an organisation (Human resource management, 2016). Minimum working hours of a
worker is 48 hours as per this act.
 Disability discrimination act, 1995: This act states that disabled people working in a firm
should not be discriminated. All basic facilities should be given to them for performing
their tasks.
For making an effective policy regarding development or management of human
resource, managers of ALDI need to consider all these laws or should comply with all these
legislations.
TASK 4
P7. Application related to HRM practices in context to work related
As employees are becoming a valuable asset of every enterprise, this increases the scope
of human resource practices at workplace. It can be used by the managers for solving various
matters or issues faced by workers. At present, ALDI is facing a decrease in the overall profits
and quality of their products. Employee turnover is increasing at a higher rate which affects the
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image of company. To make this situation a better one or to solve other critical issues, managers
of ALDI can apply the practices of HRM in following areas: Planning of manpower required: Practices or activities of HRM help manager in
deciding the number of employees required for performing various kinds of jobs in
organisation (Wright and McMahan, 2011). Recruitment of skilled candidates will help
ADLI in performing all business operations effectively and in maintaining the quality of
their business products. Decision making: Being a manager of human resource department of any organisation,
various activities help top authority in collecting the relevant information like main
causes behind the problem and many more. All this can be done by the managers of
ALDI for taking a corrective action or decision for solving various issues arise at
workplace. Development and training of workers: By collecting relevant information, managers can
conduct training programmes for improving the current skills of workers. All this help
enterprise in preparing their employees for facing the future competitive world. Maintaining the quality of business products: As ALDI is facing the quality issues from
large number of its customers, practices of human resource management can be applied
on this complex area for deciding the methods of doing work or for setting quality
standard for products. Performance evaluation: Evaluation of worker's skill help manager in identifying the
capabilities they have and this helps him in assigning the duties or tasks. It helps in
increasing the quality of company's product and in satisfying the needs of its customers.
 Creation of vision or mission: Identification of worker's skills helps top management in
give shape to the vision and mission of organisation (Purce, 2014). It helps the employer
in making an effective business plan for achieving the desired results and ensuring proper
utilisation of available resources.
For making the current situation better and to increase satisfaction level of consumers,
manager of ALDI can apply or implement the activities of HRM in an effective way.
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CONCLUSION
From the above information, it can be concluded that in today's business world, it is
necessary to manage the activities of workers in a firm like ALDI. By applying this concept,
managers can increase or maximise the performance of various departments. Practices or
activities of department affects all activities of various departments and this is the reason because
of which these activities should be giving with proper consideration by manager. It has been
assessed from the report that employer is responsible for making attracting compensation
packages for workers and at the same time to provide risk free conditions to workers for
increasing their productivity. Therefore, manager in ALDI needs to give due emphasis on all
rules or laws included in employment legislations for making or designing effective work
practices.
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REFERENCES
Books and Journals
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