Importance of HR Management

This assignment delves into the significance of Human Resource Management (HRM) for businesses. It emphasizes the importance of HRM functions like training, development, employment law compliance, and conflict resolution in driving organizational growth and success. The document highlights how effective HRM practices contribute to a positive work environment and enhance overall business performance.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Purpose, importance, roles and responsibilities of the HR function..................................1
2. Assessment of various approaches of HRM.......................................................................3
3. Examine the different methods used in HR practices........................................................5
4. Approach to effectiveness of employee relations and employee engagement...................7
5. Key aspects of employment legislation..............................................................................8
6. Evaluation of employee relations and employment legislation in decision making..........8
TASK 2............................................................................................................................................9
7. Application of HRM practices in a work-related context..................................................9
8. Improvement for the recruitment and selection process...................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource department deals with various process and employees for enhancing the
productivity of the organisation. Main role of HR function is to recruit and select potential
candidate, provide training and development programmes, maintaining relations among the
stakeholders etc. The HR manager needs to perform their roles and responsibilities in an
effective manner so that the productivity and performance of employees can increase which will
also improve the profitability of the organisation. The taken firm in this assessment report is Aldi
which is a retail firm of UK. This report will discuss the purpose and importance of HR function
along with the strengths and weakness of different approaches. Further, this report will explain
the key approach to effectiveness of employee relations and employee engagement along with
the key aspects of employment legislations. In the end, suggestions for improving the
recruitment and selection process and Job description and Person Specification will be prepared
for the vacant position in the organisation.
TASK 1
P1. Purpose, importance, roles and responsibilities of the HR function
Purpose of HR function
Training and Development: It is the important purpose of HR function in which they
need to offer training sessions to the workforce for enhancing the knowledge, skills and
capabilities in order to perform well at the workplace (Alarcon, 2011). The HR manager of Aldi
also provides such development sessions to the workers for polishing their skills and efficiency.
Staffing Needs: HR departments is known for recruiting new candidates for the
company. Staffing refers to the hiring of suitable candidate for the available position of Job in
the firm. The purpose of HR department of Aldi is to hire suitable candidates who can perform
better at the workplace for raising the organisational profitability and for resolving the conflicts
among the workforce.
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Source: HR management. 2018
Importance of HR function
Strategy implementation: The HR department is important to any firm for managing the
resources properly. The HR department is also important for developing and implementing the
strategies for the betterment of organisation and employees (Albrech, 2011). Through these
strategies, workers can effectively accomplish their organisational as well as personal goals in an
efficient manner.
Salary and pay: The HR department is also important for deciding the salaries and wages
given to the employees. The managers of Aldi need to provide effective salaries to their
employees based on the experience and knowledge without any discrimination. The manager of
Aldi needs to ensure that they are following the Equal pay act, minimum wages act etc. while
providing the salaries.
Roles and responsibilities of HR function to meet business objectives
HR function is responsible for effectively utilising the employees for achieving the
desired organisational goals. The major role of HR function is to hire, select, compensate and
utilisation of employees in an organisation. The HR functions helps the Aldi in achieving the
objectives of company in a proper manner. HR department is responsible for recruiting and
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Illustration 1: HR Management

selecting the potential employees who has the required skills, knowledge and expertise in the
field of vacant position. HR department assist the firm in acquiring the right candidates. It is the
duty of HR department of Aldi to recruit suitable candidates for maintaining a healthy working
environment at the workplace. Also it is the duty of HR department of Aldi to treat their
employees properly for their welfare and to resolve their issues in less possible time. Through the
resolved issues, employees can perform their duties effectively for executing their assigned work
in the given deadlines which will help the firm in achieving its desired goals and objectives in an
efficient manner.
P2. Assessment of various approaches of HRM
There are various recruitment and selection processes which are used by the HR
department of the Aldi for recruiting the employees. Some of these approaches are discussed
below:
Workforce planning approach: There are 3 approaches which are related to the planning
of workforce. These approaches are contingency, workload and workforce approach. Aldi is
using the workload approach which is discussed below: Workload approach: Through this approach, the managers can determine the required
number of workers in an organisation (DuBrin, 2011). This approach states the strategic
inputs which can be used in recruitment process. This approach is also useful in
developing the process and structure of organisation.
Development and training approach: This approach is used for increasing the
knowledge, skill and confidence among the employees for delivering maximum efforts and
performance. There are various approaches of training i.e. reactive approach, systematic
approach and proactive approach. Proactive approach is used by the Aldi which is discussed
below: Proactive approach: In this approach, Aldi search for various measures for improving the
organisational performance. This method is mostly used by the Aldi when they are
focusing on expanding the training to wider section of organisation.
Performance management approach: This approach is concerned with the evaluation of
workers in terms of performance and efficiency. It is basically measured by evaluating the
contribution of employees in the success and profitability of the firm. There are several
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approaches i.e. attribute approach, comparative approach, result approach, quality approach and
behaviour approach. Aldi is following the comparative approach which is discussed below: Comparative approach: This approach is used for ranking the employees based on the
performance. In this, employees are ranked from higher to lower level based on the
obtained performance. The techniques used for this measurement is paired comparison,
forced distribution etc. which will help the Aldi in evaluating the performance and
growth of their workers.
Reward system approach: In this rewards are provided to employees based on their
performance and efficiency. Various approaches include in this are incentive approach,
traditional approach and merit approach. Aldi is using the incentives approach which is discussed
below: Incentive approach: In this approach, managers of Aldi provides the rewards to
employees based on their efficiency, performance and working. The incentives are
provided excluding the salary of employees.
Recruitment approach: There are two types of recruitment approaches which are used
by the Aldi as discussed below: Internal recruitment: In this approach, the employees are selected within the
organisation for the vacant position (Flamholtz, 2012). There are both informal and
formal techniques which are used by the managers of Aldi for selecting the candidate
from within the firm.
 External recruitment: In this approach, candidates are assessed and recruited from
outside of organisation. Through this approach, the firm can hire skilled and qualified
workers for the vacant job. The HR managers of Aldi can search for the talented
candidates from a pool of applicants for filling the vacant position.
Strengths Weakness
Internal recruitment Internal recruitment are useful
in lowering the cost and time
for recruiting potential
candidates.
This method uses old ideas due
to which the changing needs
and demand of clients may not
fulfilled by the firm.
External recruitment This method is useful to hire This method is both time and
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fresh and talented candidate
for the vacant position
cost consuming as employees
are recruited from outside of
organisation.
Selection approach: There are various approaches through which the managers of Aldi
selects the candidates such as interview and aptitude tests. These are discussed below with
advantages and disadvantages:
Interview: This method is mostly used by the Aldi for selecting the candidates. In this
method, several questions associated with the position are asked by the interviewee. After the
final score from the interview, desirable and talented candidates are selected by the firm.
Strength Weakness
Interview Through this method, Aldi
selects the candidates
according to their skills and
qualities observed in the face
to face interview.
This method is fast due to
which there are chances that
the candidates are not judged
properly based on their skills.
Sometimes due to lack of
confidence or communication
skills, talented candidates are
not selected.
P3. Benefits of different HRM practices within an organisation for both the employer and
employee
Aldi is a big organisation which is dealing in various types of products such as Food,
Beverage, Household essentials, Sanitary Products etc. There are various departments such as
Finance, HR, operations etc. in Aldi which are necessary to perform the business operations in an
effective manner. HR department is responsible for recruitments and providing training to
workers for enhancing their working efficiency and performance (Glendon, Clarke and
McKenna, 2016). There are several HR practices such as providing training and compensation,
recruitment and selection etc. which are necessary to maintain the proper working environment
at the workplace. helps in maintaining an appropriate working atmosphere within an
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organisation. The HR manager needs to ensure that they are properly implementing the HR
practices in the company as discussed below: These is one of the major HR practice which includes skills training, orientation and
professional development etc. Through this, Aldi can improve the efficiency and
performance of their employees which will also improve the productivity of the firm. The
methods included in this are On job and Off job training. The importance of this practice
for the employees and employer is as follows:
Employer Employee
Employer will get the benefit from this training
and development as the skills and knowledge
of the employees will improve due to which
they can perform their work in an effective
manner for achieving the organisational goals
effectively.
Employees will get the benefit from the
training and development as they can perform
their work better and properly due to the
improvement in skills and knowledge. This is
also beneficial in getting the promotions and
recognition at the marketplace.
 It is the monetary or non-monetary benefits which are provided to employees in return of
their working in the firm (Post and Preston, 2012). These compensations are more than
the regular salary of employees. Aldi needs to provide fair compensation to the
employees so that they can perform their work with full capability and efforts in
achieving the organisational aims and objectives. The benefit of this practice for both
employees and employer is as follows:
Employer Employees
Through the rewards and compensation,
performance of the employees will improve
due to which they will perform their work
effectively. This is beneficial for firm in
retaining the employees as well as to enhance
the profit and productivity of the company.
This practice is also beneficial for the
employees as they will get more benefits from
their working in terms of monetary and non
monetary rewards on improved performance.
This will bring motivation in them through
which they can achieve higher performance
and efficiency.
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P4: Effectiveness of HRM practices
HRM practices are implemented by the HR department so that they can perform their
assign job roles effectively for enhancing the profit and productivity of the organisation. The
effectiveness of different HR practices implemented at Aldi are as follows:
Training and development session: Through this HR practice, HR department of the
Aldi can achieve their organisational goals of raising the productivity and profit of the
organisation. This is because the employees are provided with training due to which their
efficiency and performance will improve and they will perform their work in an effective
manner. However this practice is costly for the company as huge amount of money and time will
be consumed on conducting training for the employees which will also decrease the profit of
company. So it can be said that this practice is effective for Aldi in enhancing the productivity
and profit of the company as improved skills and capabilities of employees will improve their
performance too.
Providing compensation and rewards: The compensation is very helpful for the HR
managers of Aldi as it will motivate the employees to work hard in order to get the compensation
or rewards. This is beneficial in accomplishing the improved productivity and profit in an
effective manner by the employees as they will perform the work hard for getting the rewards.
However this practice is costly for the Aldi as their profit margin will decrease due to the
consumption of funds in rewards. This practice is effective for the Aldi in improving their profit
and productivity as the monetary benefit is provided to employees due to which they will
perform their work effectively in hope of getting the rewards.
P5. Importance of employee relations and employee engagement
Maintaining employee relations are very helpful for any firm for sustaining an excellent
relationship with the employees and employer in an organisation. The managers of Aldi need to
maintain good relations with employees for resolving their issues in effective manner. When
these relations are not good then it will negatively impact the productivity of firm (Gruman and
Saks, 2011). The managers of Aldi need to involve the employees in decision making process for
increasing their value within the organisation. Through this, the employees can engage in the
various activities of the organisation. This is helpful in better coordination among the employees
as well as in enhancing the productivity and performance at the workplace.
Effectiveness of employee relation and employee engagement
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Employee relation: There are several approaches which are related to employee relation.
One of the approach which is used by the Aldi is the flexible working hours and through this
approach, employees of Aldi can come to workplace at any desired time and needs to execute
their assigned work in the deadlines. Effectiveness of such approach is that, it can lead to
flexibility in the process of organisation as the employees can come at any time but the assigned
work needs to be completed within the given deadlines. This is considered as a flexible working
practice in which the higher authorities or management does not exert pressure on the employees
to follow the rules.
Employee engagement: It refers to the level up-to which the employees of an
organisation connect themselves with their success and work. There are several approaches of
employee engagement. This approach is focused on the welfare of the employees on a priority
basis. Due to the welfare, workers feel motivated and encouraged and takes part in the business
operations and activities (John Wiley, 2014). Effectiveness of this approach is that it increases
the employee’s participation in the organisational activities because of which the organisational
environment improves along with the flexibility in the operations of firm. Due to this
engagement, the employees can work with flexibility as feels comfortable in doing their work.
P6. Key aspects of employment legislation
Employee legislation refers to the laws and regulations which are helpful in governing
and managing the employment and employees in a company. These laws directly impact the
employees and employer of the firm. Several legislations are discussed below: Sex discrimination Act, 1975: This act was implemented by the UK government in 1975
for eliminating the sex based discrimination at workplace. Manager of Aldi needs to
follow this act and also needs to ensure that the firm is not discriminating among the
employees based on their sex. The managers need to implement new policies for
eliminating such discrimination in the workplace. Equal pay Act, 1970: This act was established by the UK government in 1970 so that he
firms can pay equal salary and wages to the employees without any discrimination based
on sex, caste, and nation (Klingner, Llorens and Nalbandian, 2015). The managers of
Aldi needs to ensure that they are providing equal salary to the employees. When equal
salaries are provide to employees, then they feels motivated which will also helps in
increasing their efficiency and performance. The managers needs to specify the chart for
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providing the salary. Through this, the issues of workers associated with salary and pay
can be resolved easily.
Evaluation of employee relations and employment legislation in decision making
Employees relations refers to the relations among the employer and employee within an
organisation. Employees legislation and relations plays a crucial role in the decision making
process of an organisation. The HR manager of Aldi needs to ensure that they are following the
rules and regulation of employment such as equal pay act, Sex discrimination Act etc. These
laws assist the firm in performing their operations and activities in an effective and ethical way.
The manager of Aldi needs to consider such laws in order to avoid the huge penalties from the
government. The managers need to consider the changes in such laws and needs to implement
proper policies accordingly (Knies and Leisink, 2014). Through the, the firm can increase its
brand image among the customers and other stakeholders. If such laws are avoided in the
decision making, then it can negatively impact the working and taken decision of managers.
Due to following the legal laws, the relations among the employees and employer can
improve which assist the firm in improving the standard of their product and services. These
relations must be good for formulating effective strategies which will benefits the managers and
employees. Due to the good relations, employees will also follow the implemented policies
which will increase the profitability and revenue of the Aldi.
TASK 2
P7. Application of HRM practices in a work-related context
Job description for the position of HR manager
Job Description
Position: HR manager
Department: Human Resource Department
Qualification requirements:
 MBA or PhD in Human Resource Graduation from any discipline
Experiences
 A minimum experience of 3 years in Human resource department
 Experience of minimum 2 years in developing and implementing strategy
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 2 years of experience in the recruitment and selection process
Skills
 Excellent communication skills i.e. both oral and written
 Ability to work under pressure.
 Active listener
 Ability of multitasking at the same time Team player
Duties
 To hire potential and talented candidates for the firm.
 To develop and implement appropriate strategies for the betterment of employees.
 Managing and organising fun activities.
 Queries and grievances handling of employees
The questions to be asked in job Interview:
 Why should we recruit you in our organisation?
 What are your strengths which are beneficial for this position?
 What is your family background?
 Why did you want to join this organisation? What is the reason behind quitting your previous Job?
Person specification for HR manager
Person specification
Skills and abilities
 Must have understanding regarding the management theories and concepts.
 Must have excellent English communication skills and problem solving skills.
 Must have creative and innovative thinking.
Qualification
 MBA in Human resource
 Needs to have management skills
 Graduate with minimum of 6.0 CGPA
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Experience
 Must have 2 years experience of working with MNC firms.
 Internship and training from a certified institute or organisation
Expertise
 Ability to manage and coordinate the team.
 Ability to lead the employees.
 Ability to develop and implement new and improved strategies.
Based on the above given job description and person specification which was posted on
LinkedIn, Two prospective candidates are selected for the position of HR manager by the Top
management after the interview. The candidates were asked several questions and one candidate
got the selection from interview and questions score. The selected candidates is provided with a
offer letter for the vacant position as discussed below:
Offer letter
Jeremy wigs
Waterside House, 35 North Wharf Road,
London W31NE UK
[e-mail]
February 13, 2019
Mr. Mewar Applicant
143 Main Street
Any town, CA 12345
Dear Mewar,
I am writing this offer letter with great pleasure for the position of HR manager in Aldi. I hope,
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your skills, knowledge and confidence will be proved as a valuable asset for our organisation.
Please find attached the offer letter document in which the salary, incentives and other benefits
along with your annual package are mentioned for the HR manager position. We will stay in
touch with you regarding the remaining paper work and the expected joining date.
We are looking forward to welcome you in our organisation.
Regards,
Jeremy wigs
Senior manager
Aldi Corporation
8. Improvement for the recruitment and selection process
HR practices are very useful in recruiting the potential candidates for an organisation.
The chosen candidates must have the skills, qualifications and knowledge for performing better
at the workplace (Messersmith and et. al., 2011). Firms such as Aldi can use the digital platforms
and social networking sites for posting the job and to attract large number of candidates for the
vacant position in the firm. Through the advertisement on social media, candidates get the
desired information regarding the pay, benefits, skills required etc. for the position.
Technology also plays an essential role in improving the recruitment and selection
process as by using the suitable technology, firm can hire and attract the potential and talented
applicants in an effective manner. The online, digital and social media platforms are appropriate
for advertising the job vacancy in proper manner. Through these online platforms, firm can hire
individuals who has he knowledge and skills for using the online platforms effectively (Ployhart
and Moliterno, 2011). Also the youth and candidates are more active on social media then on any
other platform. Through the social media, firm can determine the social status of the candidates
based on the likes, comments and posts. Through these platforms, firm can determine whether
the candidates are suitable for the job or not and even the firm can determine whether the
candidates possess the technical skills required for the position.
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CONCLUSION
It has been concluded from the above report that HR management is very crucial for any
organisation in recruiting talented candidates. The major purpose of HR function is to retain and
retain employees, offering training and development, implementing strategies etc. which are
helpful for the firm in getting the growth and success at the market place. Employment laws and
legislations needs to be considered by the management for eliminating the conflict among the
employees and for avoiding the penalties from government.
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REFERENCES
Books and Journals
Alarcon, G. M., 2011. A meta-analysis of burnout with job demands, resources, and attitudes.
Journal of Vocational Behavior. 79(2). pp.549-562.
Albrech, S. L., 2011. Handbook of employee engagement: Perspectives, issues, research and
practice. Human Resource Management International Digest. 19(7).
DuBrin, A. J., 2011. Essentials of management. Cengage Learning.
Flamholtz, E.G., 2012. Human resource accounting: Advances in concepts, methods and
applications. Springer Science & Business Media.
Glendon, A.I., Clarke, S. and McKenna, E., 2016. Human safety and risk management. Crc
Press.
Gruman, J.A. and Saks, A.M., 2011. Performance management and employee engagement.
Human Resource Management Review. 21(2). pp.123-136.
John Wiley & Sons.Storey, J., 2014. New Perspectives on Human Resource Management
(Routledge Revivals). Routledge.Human Resource Management Review.23(4). pp.337-
340.
Klingner, D., Llorens, J. J. and Nalbandian, J., 2015. Public personnel management. Routledge.
Knies, E. and Leisink, P., 2014. Linking people management and extra‐role behaviour: results of
a longitudinal study. Human Resource Management Journal. 24(1). pp.57-76.
Messersmith, J. G. and et. al., 2011. Unlocking the black box: exploring the link between high-
performance work systems and performance. Journal of Applied Psychology. 96(6).
pp.1105.
Ployhart, R.E. and Moliterno, T.P., 2011. Emergence of the human capital resource: A multilevel
model. Academy of Management Review. 36(1). pp.127-150.
Post, J. and Preston, L. E., 2012. Private management and public policy: The principle of public
responsibility. Stanford University Press.
Online
Employment law. 2019. [Online]. Available
Through :<https://www.cipd.co.uk/knowledge/fundamentals/emp-law>
HR Management. 2018. [Online]. Available
Through :<https://www.vacancycentre.com/advice/hr-management>
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