Human Resource Practices and Organizational Performance

This assignment delves into the crucial relationship between human resource (HR) practices and an organization's overall performance. It examines various HR practices, such as talent acquisition, training and development, performance management, and employee motivation, analyzing their influence on key organizational outcomes like productivity, innovation, and customer satisfaction. The assignment encourages critical thinking about best practices in HR management and their role in driving organizational success.

HRM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 The purpose and the functions of HRM, applicable to workforce planning and resourcing
in the ALDI.............................................................................................................................1
P2 The strength and weakness of different approaches to recruitment and selections in ALDI.3
TASK 2............................................................................................................................................5
P3 The benefits of different HRM practices within ALDI for the employer and the employee.5
P4 Evaluate the effectiveness of difference HRM practices in terms of raising the Aldi profits
and productivity......................................................................................................................7
Task 3...............................................................................................................................................8
P5 Analysis the importance of the of employee relations in respect to influencing HRM
decision making for Aldi........................................................................................................8
P6 The key elements of the employment legislations and the impact it has upon HEM decision
making for Aldi.....................................................................................................................9
Task 4.............................................................................................................................................10
P7 Illustrate the application of HRM practices in a work related context in Aldi...............10
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................12

INTRODUCTION
Human resource management is considered as one of most essential factor for
organisations because it helps in managing workforce. The different function of the HRM will
applicable to the workforce planning and it will help in the resourcing of the organisations. The
purpose of the human resource management is to maximise the performance of the ,employees in
the organisations. . . If the evaluation has been made for the human practice it will direct impact
on the productivity of the organisation and the profits will be increase due to the extra efforts
made from the employees. sometime employee relation influence the decision of the
management which will bring confusing situation in the organisation. Employment legislation
will also consider for the human resource management decision making process otherwise it
will be direct impact on the employees. Aldi has better human resource practice regarding the
working conditions which is most important aspect for the employees.
Task 1
P1 The purpose and the functions of HRM, applicable to workforce planning and resourcing in
the ALDI.
 Overview of the organisations: It is the fourth largest retail super market. Which is also
deal in the grocery products. ALDI has 10366 stores at different locations and number of
skilled diversified employees are the key success for firm.
 HRM: The human resource management focuses on the maximisation of overall
productivity of employees in the organisations with use of different human resources
practices.
 Purpose of the HRM: To any organisation human resource management has different
purposes. In Aldi the main purpose of the human resource is to achieve the business
objectives with right work force (McMichael, 2011). Human resources management
focus on the internal environment which bring changes in the organisations and to make
employee effective and the efficient.
 Functions of HRM: Every organisation the human resource management have different
function. From recruitment to the retirement they have the exact planning for the
employees and make the organisations more effective. But in ALDI human resource
management have the function as follows:
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Recruitment and Selection: This is the main function of the human resource management is to
recruitment of the new employee in the organisation and to fill the vacant position in the
organisation. The recruitment is the process to find the new employee with different practices
(Boselie and Paauwe, 2007). ALDI upadte their new vacancy on companies website. . Once the
recruitment has been done the next step will be selection of the employees. selection will be
done through the process as such personal interview, aptitude test and the behaviour interview.
Orientation and induction: in this function, the organisation welcome the new employees in
which the key person from the management will briefing about the organisation of their mission,
vision and the other goals (Barney and Clark, 2007). Induction is mainly conducted for the new
employees to understand about their roles and responsibilty and create a habitual practice to
coordinate with organisation..
Maintain the organisation environment: If the organisation environment is not in the proper
structure employees might be not satisfied with the management for unsafe working
environment . It is the responsibility of HR management to make working condition better.
Maintain the relation with employees: This also the main function of the human resource
management to maintain the relationship with the employees with proper communication and
solve their personal issues.
Training and Development: If the employees are facing any problems to operate any software
than the human resource management has to give training to the employees. Because training is
the most important part to make productivity workforce. Sometimes the overall development of
employees may be required for benefits of the organisation. The behavioural training or some
skill development workshop can arrange by the human resource management for employee
overall development.
The workforce planning means to make the systematic objectives to bring changes in the
employees to achieve the organisational goals. From the two approaches the workforce planing
can be done as such the strategic work force planning and the operational workforce planing. In
Aldi the human resource management use both the approaches for managing their workforce.
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P2 The strength and weakness of different approaches to recruitment and selections in ALDI
To every process there will be a strength and weakness. The recruitment and selection is
the key function of the human resource management and it is challenging for them.
Recruitment can be done through the two approaches as follows:
 Internal Recruitment: The internal recruitment refer to finding the new candidate from
the employee’s reference or to transfer the existing employee from other department in
the organisation. Which can makes the easy work for the human resource management
and they get the right employees from inside the organisations without any difficulties.
But the internal recruitment have some strength and weakness as well.
Strengths: It gives suitable candidates from the organisation.
The other employee will give reference to their friends or any family members to fill the vacant
position in the organisations.
Management save their time as well the cost behind the recruitment process incurred.
Weakness: If the management will recruit the internal employee than existing employee
position will be vacant. To fill that positions organisation to start the recruitment process
again.t.
The working environment may affect if any employee refers to their close friend which
can cause the working environment.
 External Recruitment: It is the process of recruitment in which the organisation
recruitment from the different sources. To find the candidate from the job portals, college
campus etc. From the external recruitment the organisation have chance to get the best
possible candidates from tier one and tier two institute where the students level is high.
But it has some strength and the weakness.
 Strength: Mass hiring will be easy with the external recruitment.
Get the most suitable candidates from the best institutions.
 Weakness: Time and cost will be more from the external recruitment.
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Stability of the candidates can be the major factors from the external recruitment. .
The selection has been depend on the human resource management from their organisational
process. There are various method of selection to find the right candidates as follows:
Telephonic interview: This is the common selection methods in which the recruiter will call the
candidates and ask certain questions to judge the speaking etiquettes and education background.
Strength: It saves time of the management to arrange interview in the organisations.
Weakness: From the telephonic interview it may be possible that the other person can
received call in behalf of the candidates and that might be harm to the organisation if it is
selected on the basis of wrong judgement . Also the behaviour and attitude can’t be judge in this
selection process.
Personal Interview: It is the way of selecting the new candidates by face to face meeting. In
which the HR manager takes the interview by asking the set of questions and candidates can be
judge on the basis of that answers.
Strength: If the personal interview has been followed it is easy to judge the candidates attitude
and the behaviour.
Weakness: From the personal interview several set of question can not judge the overall
personality of the candidates.
TASK 2
P3 The benefits of different HRM practices within ALDI for the employer and the employee.
Human resource practice in every organisation is to get the possible outcomes for the
employer as well the employees. This practices are to achieve the organisation goal. The
following practices which are benefits to the employee and employer are.
 Job analysis: This the main practice of the human resource management that they have
to analysis the job in the organisation and fulfil the requirement (Knowles, Holton and
Swanson, 2014). To hire right employees for the right jobs is the motive for analysis.
Benefits to the employees: From the job analysis the employee get chance to promotion
or get better opportunity. .
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Benefits to the employer: The Job analysis bring new employees and the employer get
the best suitable employees which will contribute in the organisational goals.
 Maintaining and utilizating the resources.: This the also the main practice from the
human resource management in which they have to make working condition better and
utilize the resource for the organisation to achieve the objectives.
 Benefits to the employee: if the proper working condition will be theie in the
organisation than employee will be safe and healthy.
 Benefits to the employer: utilization of the resources in the organisation will effect on
the productivity and the employer get best possible outcomes.
 Performance Appraisal: From this practice the human resource management will give
feedback to the employees and the performance will be measured (Sirmon, Hitt and
Ireland, 2007). The appraisal will be depend on the organisation structure. Aldi use the
360 degree performance appraisal.
 Benefits to the employee: They will get proper feedback of overall performance
from the management. Which can lead to get basic idea to the employee to
improve the performance in the different areas.
 Benefits to the employer: Employer get the underperform employees list which
they can warn or tell to boost their performance which can enhance the
productivity.
 Rewards and Recognition: From the performance appraisal the employee will get the
rewards and recognition to the performer employees and it is done by the management to
boost the performance. From which they employee may appreciate by providing
monetary or non-monetary benefits.
Benefits to the employees: From the reward the employees will efforts on their
work if they get the monetary reward.
Benefits to the employer: The rewards and recognition will direct effect on the
employee’s productivity and the employer get best suitable manpower for the organisation..
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 Training and Development: To Those who are not able performed they can get the
training session as per the requirement of the employees and the proper development will
be done with the help of trainer or the special person (Dowling, Festing and Engle,
2008). The main aim of the training and development is to improve the employee
performance and develop their personality.
Benefits to the employees: They will get a chance to improve their performance from the
workshops from training sessions.
Benefits to the employer: If the proper training will be given than the employer has
option for the underperformed employee to make them effective.Time and cost will be save to
hire new employees.
P4 Evaluate the effectiveness of difference HRM practices in terms of raising the Aldi profits
and productivity.
The most important task is to improve the performance of the organisation with these
practices which can be implemented for the organisation benefits as well the employee’s
benefits. Such practices are to achieve the organisational goals. Due to human resource practice,
the organisation has chance to compete with the competitor in terms of revenue as well to set
the brand value in the market. Different human resource practices have good impact on the
organisational productivity and revenue will increase such as follows:
 Employee development will enhance the productivity of the organisational: If the
employee will get better training. The outcomes will enhance the productivity and over
all development to enhance the performance of the employees.If the employees will be
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Illustration 1: Human Resource Practices

performed better than the production will increase and the more production lead to
availability of products in the market. Which will bring to get more customer and then
chance of selling will be increased (Cardon and Stevens, 2004). The cost will be saved in
terms of the underperformed employees will be trained and their performance will lead to
generate more production in the organisation. The work efficiency will be increased. The
attitude and behaviour of the employees will change the organisational culture.
 Compensation management: This is the important factor to make organisational more
effective in terms of cost saving. remuneration will also improve the productivity and
profit of the organisation. As employee get the rewards and better pay will change the
work efficiency of the employee. They will do their work with more confidence in
effective manner. the compensation management will also help to boost the
organisational performance. The organisation can cut the underperform employee
remuneration. . Meanwhile the Aldi has to be focus on the other human resource
practices also to bring the change in their super market business more profitable. The
suppliers are from the local market. . Though this have major impact on the productivity
and the profits will increased. Human resource management have to bound the the
employee to get the better work from them because the organizational performance will
be depend on the employees and the code of conduct made from human resource
management with different practices.
Task 3
P5 Analysis the importance of the of employee relations in respect to influencing HRM decision
making for Aldi.
Human resource management have key responsibility to maintain the employee’s
relations. Because employer are the goodwill of the organisation. But sometimes the Human
resource manager has to take decision against the employees which can influence on the
employee relations. But Aldi have different HR practices which can not make much impact on
their decision and the employee relationship will not get affected.
 The productivity may affect: If any decision has been taking against the employees in
terms of rule and regulation which may affect the productivity of the employees. The
relationship with the HR may have chance to give some flexibility in the work and that
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may lead to affect the decision making of the HR. Because HR has to see all the
parameter for their decision.But at the end the employees are the target. Employee can
go on the strike also if any decision has been not taking back. The more the decision are
rigid the employee relation always affect.
 Rewards and recognition: This is the best way to make employee relations in which
they can not influence the decision of the HR. Because the rewards can be given in
public and it will depend on the performance of the employees. But if the reward has
been given to the underperformed employee and then it will be opposed from the
employees those who are not able to get any rewards. This may influence the decision
and the management has to take such decision carefully (Engle, Festing and Dowling,
2008). On the other hand recognition will bring confusion among the employees and HR
has to plan before giving any recognition to the employees.
 Changes in the policies: if any policies has been change in the organization in context of
the employees than it will be direct impact on the decisions of the management. The rigid
policies will bring the employees more stress and the relation with the employees will
also affect with such decisions. So human resource is not for making rigid decisions they
have to think for the employees. The relation is the most important aspect for the HR
because if the employee are not satisfied than HR decisions will be influence.
 Decisions related to the privacy: The HR is basically have to make more privacy
decision which may influence the relationship with the employees. Because the employee
want to know each and everything from the management. The proper communication
will bring change in the employee relations (Horton, 2000). But some are the decision
has to be in favour of the organisation and which may affect to the employees.If the
employee will get the private things related to the profits and other investment decision
that may affect to the organisation and the management has to pay huge loss but the
decision have be in the private. If once the decision has been disclosed than it will impact
on the employee’s performance and the organisation productivity.
P6 The key elements of the employment legislations and the impact it has upon HRM decision
making for Aldi.
To make better organisation the legislation have the most important role play and the
human resource management has to focus on such laws which are more employment
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legislations. The impact will be on the human resource decision. The Aldi is the well established
brand the and it has highest number of employees which will be impact on the economy. The
employment legislation also the has some involvement to emphasis the decision of the human
resource management such key element are as follow:
 Harassment to the worker: the employment laws are protecting the employees
from the harassment in the workplace. Such laws have to be considered when the
decisions are making for the employees (Finegold and Frenkel, 2006). If any
worker has been harass than it will direct impact on the human resource
management.
 Social security: The employment laws also focus on the social security which
brings to secure the employees terms of therein status in the organisation has been
not be criticise. The more the social security will be done than the employees will
be work better.
 Safety in the organisation: The employee have to be secure and the human
resource have the responsibility to make their decision with employees safety in
the organisation. The proper infrastructure and the other factor has to be consider
for employee’s safety (Hafeez and Aburawi, 2013). That will be direct impact on
the organization as well the performance of the employees.
 The leave and employees work life balance: If the employee are not getting
proper leave in the organisation for their personal work. This may lead to be over
performance in the organisation and the it has to be considered for the human
resource management that they have to be focus on the leave of the employee for
their personal works. Because if the work life balance will not be considered than
the employment laws are may be affected.
 Wages and remunerations: The employment legislation also focus on the wages
and remuneration of the employees. Every employees should get proper wages
and remuneration according to their capability and the working hours. The major
factor that the human resource are considering for the decision on the wages and
salary of the employees. The more the wages has been given the better the quality
work will get. But sometimes the wages and remuneration may impact on the
organisation budget and the organization has never want to decrease their budget.
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It will direct impact on the profit sharing. But as per the laws the employees
would get the fixed wages for their daily working hour.
 Trade union and other industrial relationship: For every negotiation done by
trade union leader for employee benfits with the human resource management
will considerer. The industrial relationship always make impact on the decision..
The overall industry will bring change in the decisions.
Task 4
P7 Illustrate the application of HRM practices in a work-related context in Aldi.
The human resource's manager of Aldi's work in manner to focuses on few management
practices which is not inclusive of following department like marketing, public relation,
information system. The various kinds of human resource practices are defined in following
manner are as-
 Recruitment and selection- This term is refereed as evaluation process of many
kinds of employees of business enterprise. This work in manner to hire right
person for the correct job. The human resources' manager wants to have qualities
in candidate like education, honesty, dedication, high will power, and diligence
etc. In this, business mainly focuses on recruitment through many United
Kingdom universities. It allows to have effective hiring of employees so that
better values can be provided (Huemann, 2007). The organisation provides
effective training to their worker so that they can be more skilled. It also allows to
have work in more productive and effective manner. The motive of the
recruitment is to save the cost.. In this way, they are taking many steps in order to
promote the growth of business enterprise by hiring number of suitable
candidates.
 For example- At the time of global financial crises even Aldi's took steps to offer
job to at least 150 candidates and they offered them 50 percent higher salary as
compare to last few years.
 Training and development- This is the core functioning of an organisation. It
came after the process of recruitment and selection. It is essential to provide
effective training facilities to employees so that they can have continuous
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improvement in terms of performance while working in an organisation. It is also
beneficial to enhance profitability and productivity of business enterprise. The
firm used to provide leaning session to employees so that they came to know
more about company working structure. If the training and development has been
considered as the poor implementation than it will impact on the performance. So,
it is necessary for manager to have identification of training need so that better
support can be offered to employees (Collins and Smith, 2006.). The main object
behind this method is to is to take steps in manner to develop their work
efficiency, training sessions are inclusive of following factors. Classification of
factors can be as perform function of product training, store operation, property
management and financial stability.
 Performance management- The main purpose behind bringing of performance
management is take initiative in order to motivate employees of business
enterprise. The organisation like Aldi's uses 360-degree method to evaluate the
performance of staff members. Then corrective action is to be taken on the basis
of information collected through supervisors on their particular feedback so that
firm can perform their activities in more efficient way.
CONCLUSION
From the above report, it is concluded that human resource management is responsible
for the coordination among the employees in the organisations. In Aldi, the employees don't
have coordination and proper communication. Internal and external recruitment will assist
business firm to have effective acquisition of workforce so that better outcome can be attained. It
also helps in control the cost and ensure that key objectives are being accomplished properly.
The key function of then human resource is to maintain relationship with the employee.
Performance appraisal also facilitate in ensure that identification of underperformed employee is
being taken into account properly. Reward and recognition is the important aspect of the
organisation which will boost the performance of the employees and this will also benefit the
firm in productive manner. Development of the employee will bring change in the organisational
performance. Training will also make impact on the performance of the employees and that will
help to improve the productivity which also bring the profits for the organisation. Employment
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legislation such as safety of the employees si also necessary to consider by the management. It
helps in identifying safety related issues so that proper decisions can be considered. It is
important for every human resource management to ensure that the workplace standards are
being designed ethically otherwise decision wise effect on the organisation. Also some practice
of the human resource has to be in the context of work which has to be safe and healthy
environment.
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