Human Resource Management Practices at ALDI

The assignment details the importance of human resource management in effectively managing business activities, including various roles and responsibilities of leaders and managers. It also discusses different recruitment and selection approaches used by the company to enhance employee performance at work. Furthermore, it highlights the benefits of HRM practices in supporting both employers and employees at workplace to develop their performance level.

Human Resource Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and the function of HRM.....................................................................................1
P2 Strengths and weaknesses of different approaches to recruitment and selection..............2
TASK 2............................................................................................................................................5
P3 Benefits of different HRM practices within an organisation for both the employer and
employee.................................................................................................................................5
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.............................................................................................................................6
Different methods used in HRM practices.............................................................................7
TASK 3............................................................................................................................................7
P5 The importance of employee relations in respect to influencing HRM decision making.7
P6 Key elements of employment legislation and the impact it has upon HRM decision making
................................................................................................................................................8
TASK 4..........................................................................................................................................10
P7 Application of HRM practices in a work-related context...............................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management consider as a strategic approach which help in managing
entire workers and organizational activities in effective manner. By this firm can easily attain
competitive advantage at market place. Along with this, it is also known as the HR department
which designed with the aim of maximizing employee performance at workplace. In this context,
HR manager also play as an important role in managing both employees working activities and
resources as well (Armstrong, 2011). Mainly, it consider three major areas such as staffing,
destining work and employee benefits. All these areas may directly contribute in attaining set
goals in objectives of the company at market place. Present report is based on ALDI, is famous
retail company which serve food items to its customers in various countries. Project discussed
about function and purpose of human resource management which perform by the HR
department. Different recruitment and selection methods with its strength and weakness will be
discussed in this project. Along with this, benefit of of HRM to workers and employer is cover in
this project. At last, employee relation and various legislation related with employment will be
discussed here.
TASK 1
P1 Purpose and the function of HRM
Human resource refers to the important part of business organization to improve their
performance level. It is a procedure of recruiting and processing employees for their work profile
so that they can prove to be a valuable asset for the organization in the future. In simple language
it is the process which involves recruiting, selecting, deploying and managing the workers so as
to achieve organization objective on time.
Workforce planning: It is a strategy used by the top manager so as to evaluate workers
needs and preferences and to deploy workers effectively, usually with innovative human
resource technology (Bamberger, Biron and Meshoulam, 2014). In addition to this, it is a core
business process which involves ensuring of whether the organization has the right people who
uses their skills and talents at the right time or not for achieving the target goal on time.
Purpose of HRM: The main purpose of Human resource management of ALDI company
is to generate and hold on right quality and right quantity of contended manpower so as to
accomplish organizational aims and objectives. Second purpose is to improve the productive
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contribution of individuals to the organization in a ways that are strategically and socially
responsible to improve quality of work.
Functions of HRM: There are three major function of HRM which are stated below:
Managerial function: Human resource management is the part of ALDI company and its
the responsibility of HR manger to perform the basic managerial function so as to achieve
organization objective on time (Bloom and Van Reenen, 2011). Managerial function like
planning, organizing, directing and controlling. All this are the important function which need to
be performed by the HR manger , because without this company cannot achieve its aims and
objectives.
Operative function: This function are very much essential in order to retain their
workforce so as to accomplish organizational objective. This are those task and duties which are
generally entrusted to the personnel sector of an organization. This function include, to employ
proper number of person which are necessary to achieve organizational objectives within a given
stipulated time period. In addition to this it include giving proper training and development
services to their employees. As well as to look after the compensation and working environment
benefits provided to their worker so that they get motivated and would like to work for the
organization.
Advisory function: This is an important part of an ALDI company without this company
cannot achieve its target goal. While performing this function HR manger should be specialized
in education and training so as to manage human resource. The manger should be expert in
giving advices related to human resource of an organization. One of the major function is to give
advice to the top management regarding formulation and evaluating of policies and procedures.
Second important advisory function is to give advice to the departmental head regarding job
analysis, recruitment, placement, training and development (CHUANG and Liao, 2011).
P2 Strengths and weaknesses of different approaches to recruitment and selection
It is important for business organization to hire skilled and capable workers so that they
can perform their task in effective manner. For this company use various approaches like:
Recruitment
It is an important procedures of inviting, shortlisting, selecting and appointing best and
able candidates for the job according to their skills and capabilities.
Different types of approaches for recruitment
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Internal Recruiting
It is the process when recruitment are done inside the organization. It is the processes of
filling the vacancies by the organization's employees who are doing work within the organization
(Farndale, Scullion and Sparrow, 2011). Different types of Internal recruitment are, transfer and
promotion.
Transfer
In this When the employee of the organization are relocate to other department in
organization. Aldi can transfer their employees to another areas which motivate workers to
enhance their productivity level. Transfer is, when the employee shift on the upper level cause of
his knowledge, skills and experience and get increased salary and extra responsibilities.
Promotion
If the employees performance is up to the mark, the head of the organization give chance
to them. In this workers to Aldi apply job for within the organizations if the person matches the
requirements of the job.
Strength and weakness of internal recruiting
Strength
It takes less time as the candidate are already available. It Motivate the employees to
work harder and get promotion. Internal recruitment save money because there are no need to
any advertise and training.
Weakness
The employees have all knowledge about the company's policies and practices. Internal
candidate understand the hiring process and they about the skills they might have get success in
the future.
External Recruiting
It is the process of selecting candidates from outside of the organization when the
existing employees are not suitable for the job of the company (Flamholtz, 2012). There are
different source of external recruitment such as
Advertisement
It the common and best source of external recruitment. In it the ads, are give through
newspaper, professional journals, TV, radio, related to organization detail, type and nature of
job, qualification , skills and experience.
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Employment at factory level
In it the applications for vacancies are presented on bulletin boards on the the
organization's gate. In the workers are recruit for short term period.
Employment agencies
These agencies is important source for recruitment (Hendry, 2012). These are
professional companies which are doing recruitment and employment of people to the other
organization.
Strength and weakness of external recruiting
Strength Satisfactory candidate can be selected through external recruiting for the specific jobs .
Fresh ideas can be get by them to the organizational growth.
Weaknesses
 This process takes time and could be expensive for the company.
Selection
It is the process of selecting the right person from number of candidates through
recruitment. Mainly it is a long process and that taken by the HR team. There are different types
of selection such as personality tests,panel interview and skill testes.
Personality testes
In this tests it is analyses that how the candidate intact with other, comfortable speaking
with strangers and capable to resolve the conflicts (Kehoe and Wright, 2013).
Panel interview
It is a technique in which a group of people take interview of candidates and analyze
their knowledge.
Skill testes
In this technique the company do evaluation of an employee's competencies in
performing in a activity or a job function.
Strength and weaknesses of selection process
Strength The candidate who are selected, they use their skills, talent, capabilities and experience
for the growth of the organization.
Weaknesses
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 It demotivate those employees who are not selected for the job.
TASK 2
P3 Benefits of different HRM practices within an organisation for both the employer and
employee
HRM practices has been consider as an effective system which help in attracts, develops,
motivates and retain workers in business organization for longer period of time (Kusluvan and et.
al., 2010). Along with this, HRM is used in Aldi for controlling all the activities which are held
inside the organization and improve the performance of the organization. If there are no
coordination between employees and employer and they are dissatisfied, HRM controlling them.
HRM practices
Training and development- In Aldi training provide to the employee for improving their
specific skills,abilities, knowledge and performance. Technical, quality, skill, professional,team
and managerial training are provide by the organization to the employees for the organization
growth. Development is related to learning opportunities which are gain through organizational
session and senior's experience.
Learning- It is for increasing the level of knowledge and skills and improving the
individuals and groups performance. It help the employees to learn those skills which are
beneficial for the organization's growth.
Human resource planning- It is the most important managerial function of an
organization. In this planning the head of the organization have right to choose right type of
people, at the right time and place and in right numbers or the organizational growth.
Employee compensation- It is related to the benefits such as cash, vacation and intensives
etc. which are provided to the employees by the organization for their good work and services.
Aldi pay different types of compensation to their employees such as cash compensation,
recruitment plans, employer paid health insurance, life insurance and paid leave for vacation and
sick days etc.
Flexible working: It is an effective way of working that is directly related with the
workers needs. This will help business organization to improve their workforce. For example,
having flexible working hours is also beneficial for employees to improve their efficiency level
at workplace.
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Benefits of HRM practices
These practices encourage employees to learn new skills and knowledge through training
which help in achieve their goals. And the motivation which they gain through their heads and
leaders increase their productivity and performance (Lengnick-Hall, Beck and Lengnick-Hall,
2011). The performance management system help them to get reward. If the work culture is safe
and clean, it helps in bringing the best employees and create high job satisfaction.
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity
Effective practice of human resource management will benefit both the employee as well
as the employee and is essential to increase the profit and productivity of the firm. The main
human resource practices is been discussed.
Training is the process to develop the employees skills and provide training to them to
increase their performance at the organisation. Training and development is a necessary factor to
improve a employee's performance. At Aldi , it focuses on giving training and in the
development of the employees to increase the firms sustainability.
Employees work in a company to get a good amount of compensation. Compensation
boosts the morale of the employees. Human resource management at Aldi focuses on giving
effective compensation packages which will motivate them and help in increasing their
performance level. This will also enable the company in increasing their profit and productivity.
Planning is necessary to manage the personnel of the organisation. Through effective
human resource planning Aldi's enable to improve the over all performance of the employees.
Effective use of human resource management practices helps in increasing the efficiency and
effectiveness of the company. This is the reason Aldi provides its employees with flexibilities as
it satisfy the employee which encourages them which lead to increase in higher profits for the
firm. The employee satisfaction helps a person to evaluate, improve and increase his work
performance.
The Aldi company also focuses on employees loyalty and motivation. Effective practices
helps in reduction of the turnover of the company which can increase the performance of the
organisation. Employment learning is done so that employees have the knowledge about the
tasks , goals and objectives of the company (Mossholder, Richardson and Settoon, 2011). When
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a person has knowledge about the tasks he do it with full enthusiasm which will eventually
increase the productivity of the company.
Different methods used in HRM practices
It is the process of recruiting, selecting, performing. The different methods of HRM
practices are:
Selection Method
Selection method is the process of selecting suitable candidate for the given post. It
includes preliminary screening, phone interviews and face to face. It helps in getting all required
information about the candidates.
Training Method
It is the process through which company provide training to the selected candidates. The
selected candidate knows more about company profile, designation, mission, vision. It can be
done through coaching, case study, job instructions, internship etc (Ployhart and Moliterno,
2011).
Induction Method
Induction method is the way to welcome new candidates to company. All the members of
organisation are introduced to the new employees.
TASK 3
P5 The importance of employee relations in respect to influencing HRM decision making
It simply refers to the relationship between the employees-employees, employer and
employees. Their is a adage that Happy employeees are productive employees. Good relationship
with colleague leads to employee satisfaction in context of workplace. Aldi should try to
organize informal events where they can familiarize with other employee. Main hurdle of bad
relation is communication so Aldi should remove this hindrance as soon as possible as it affects
the productivity.
Importance of employee relation is as follows,
1)Productivity: Atmosphere plays an important part in motivating the employeees to work
harder. Conflict between the employees makes the environment BAD/horrible. Aldi should
organize employee relation program regularly so that no conflict will be arise in the future.
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Relationship between employees is proportionate to productivity. Therefore good relation leads
to higher productivity and that again leads to profits for the business.
2)Conflict reduction: When the working environment is pleasant and friendly then employees
would be able to focus on their specific work. Therefore efficiency of the employee will
increase. In reference to Aldi, if there is no conflict then every employee would be able to give
their valuable views in the decision making process (Werner and DeSimone, 2011). By this
better decision can be taken.
3)Retention: When there is good relationship between the employees then it automatically
boosts the loyalty among employees also. This will lead to the employee retention. Aldi should
follow this as through employee relation, employee turnover would decrease for a certain level.
That will benefit the organization for long run.
4)Individual learning: If the employee relations are good then employee can also focus on their
individual learning and professional development also. It indirectly benefits Aldi as the
workforce knowledge is improving gradually.
Strengths and weakness of different approaches to recruitment and selection supported by
specific example
1)Transfer: Aldi can transfer their employees within the organization according to their location
preference. Through this the motivation of the employees will remain high as they get their
preferred location and that can also leads to decrease in employee turnover. But those who did
not get their hand picked location will get demotivated. So Aldi should try to reimburse their
unhappy employees with other means.
2)Advertisement: Aldi can give their recruitment ads on national newspaper or on the online
platform. Company can choose the best out of so many employees who have applied for the jobs.
But the cost incurred for the whole process is high plus it is time consuming also.
3)Group exercise: There is a difference between performing non fictitious task and doing a role
play. It is not mandatory that the individual who perform well in role play will also perform well
in the real scenarios and vice versa. So Aldi should monitored the role play very closely and take
the decision according to the job requirements.
P6 Key elements of employment legislation and the impact it has upon HRM decision making
Employment legislation is type of law which governs the employees who works in
workplace. It is the right of employees and employer. It directly affects unions, employer and
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employees. The laws which affect decision making of HR includes labour laws, equal
employment opportunities etc. The key elements of employment legislation and its impact on
HRM decision making are:
The Fair Labour Standard Act
This act is also called FLSA which manage minimum wages and overtime pay. It was
enacted in 1938 for first time. All the employees working in an organisation should be given at
least minimum amount. If any subordinates work for more than 40 hours week should be
provided with overtime money. The worker of Aldi greatly influence by this act. It motivates
them to work for the company and overtime. It also helps in achieving the set goals and
objectives.
Occupational Health and Safety Act
This act come in 1970 for the worker's health and safety. The rules and regulations of this
legislative are look after by the Occupational Health and Safety Administration. It ensure
company to compliance with law and provide safety to the employees at workplaces. It is the
duty and responsibility of Aldi's HR to keep check on hazardous material, injuries of
subordinates. If employees are fit then they work properly for the organisation. All the protection
of health and safety of workers lies in the hand of company. As per this act, Aldi should maintain
these following points:
 Aldi should check operation system and good environment for working
 Safe entry and exit system Treatment facility at primary level.
The Equal Pay Act
The equal pay was enacted in 1963 for those company who give unequal pay to their
employees. In this the organisation should provide equal pay to all employees without gender
discrimination based on same responsibility and position. All workers working under same post
should be provide same pay scale. This helps in achieving company's goals and objectives and
employees are motivated too. Aldi should follow this act for maintenance of standard and
penalty.
Employment Protection Act
This act came in 1978 for providing protection to employment in terms of salary,
commencement of job, working hours, pension. Aldi human resource should give salary
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structure to the employees. All workers work for the money to fulfil their basic needs if those are
not fulfilled cannot work properly and efficiently.
The employee relations management and employment legislation is very important for all
types of organisation. It helps in making decision for the company. Here, Aldi should comply
fair labour, occupational health and safety, equal pay and employment law. It ensure employees
to follow the guidelines and perform very actively for achieving company's goals and objectives.
It also helps in motivating the staff as well as team. It creates good image for organisation in the
minds of employees. Similarly, if such acts are not applied by the firm then employees may take
serious actions such as strike, lockout, riots etc. Thus, it is both employer and employees duty to
work according to the acts and apply in real life.
Diversity and equal opportunities: It is an important practice for workers to enhance their
productivity level. In this manager of the company is responsible for promoting diversity at
workplace by providing equal opportunities. This will contribute in making workforce more
productivity. By this company easily enhance their performance at market place.
ACAS practice: This type of code play vital role in business organization as it is based in
the disciplinary and grievance process that help in handling the issues at workplace. With the
help of this employees can easily improve the overall performance.
TASK 4
P7 Application of HRM practices in a work-related context
Human resource practice plays a crucial role for ALDI company as it helps in accomplish a
growth in market through efficient exercise of resources. ALDI company exercise several HRM
practice which are stated below:
Job Specification: It is an primary written communication by the ALDI company which
specifies and denote the psychological feature, ability and the power which are needed for the
specific job profile. For example:
Job Specification
Organisation: ALDI Plc
Job Title – Human Resource manager
Qualification – MBA (Human Resources)
Location- UK
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Essential Criteria:
 Cognition related with tools and technique of an administration.
 Ability to handle employees relation with other in an organization.
 Should posses the quality of effective team building.
 Ability to communicate.
 Ability to coordinate.
 Ability to motivate workers.
Desirable criteria:
 At least 3 year in management
 Should possess charismatic personality trait.
Job description: It includes detail of selected duties and responsibilities required for a particular
job in organization.
Job Description
Organisation: ALDI Plc
Division: Human Resource Department
Job Title: Human resource manager
Job Location: UK
Job Summary
The controlling body is searching for expert and creativity people who able in performing the
requirements of the company and its position as well. The candidate must possess intellectual
feature towards the respective HRM practices.
Role
 Ability to recruit talented and expert people for an organization.
 Capable in handling and motivating human resource.
 Ability to carry out impressive training and development programmes .
Curriculum Vitae: It is a written biodata of the candidate which specify about the individual
experience,educational qualification, working experiences for a specific job. For example:
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Name:
Address:
Contact Number:
Email ID:
Carrier objective:- Looking for the profile in which the company offers opportunity to me for
developing and innovating my skills.
Academic Qualification:
 Graduation MBA Experience: 1 year experience in management
Personal Skills:
 Team working
 Self motivated.
 Able in handling complex situation
 Positive attitude. Ability to communicate and coordinate.
Declaration:
I hear by declare that the above informations is bonafide to my knowledge and evaluation.
Evaluation of employee relations and the application of HRM practices on decision-making
Employees relation and various application of HRM practices of ALDI company plays a
vital role in achieving the target goal on stipulated time period. A well as they positively
influence on decision making of an organization (Werner and DeSimone, 2011). Some of the
application of HRM practice are recruitment and selection, training and development,
performance appraisal, reward system and many more. If the employees get proper
compensation and incentives plan then they will get motivated which will indirectly result in
increasing the productivity level efficiency level of the workers of ALDI company. Employees
relationship totally depend on the reward system provided to them, there should not be any
biasnes while setting up of reward system. Every workers should get the reward on the basis of
their performance level so that the workers get influence and would like to work for more hours
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in order to increase the performance level. Thus it will result in accomplishing of ALDI
company goal on a stipulated time schedule.
CONCLUSION
As per above discussion, human resource management play crucial role in effectively
managing business activities that may help in making brand image positive. In this, different
roles and responsibilities of leader and manager also played important role in developing as well
as implementing all the activities of the company in effective manner. Apart from this, various
recruitment and selection approaches are also used by the company with the aim of enhancing
employees performance at workplace. This will directly contribute in attaining improving
productivity level of the company. Benefits of different HRM practices is also describe in project
which provide support to both employer and employees at workplace to develop their
performance level. Furthermore, employment legislation and the impact it has upon HRM
decision making is also may contribute in making workers performance high.
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REFERENCES
Books and journals
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Online
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