Importance of Employee Relations in HRM Decision-Making

This article analyzes the importance of employee relations in influencing HRM decision-making and its impact on organizational success. It discusses strategies for building and improving employee relations and engagement. The HR managers of ALDI focus on developing trust, motivation, and reducing conflicts among employees.

Human
Resource
Management

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1................................................................................................................................................3
P1. Explain the purpose and functions of HRM that are applicable to workforce in planning and
resourcing organisation......................................................................................................................3
P2. Describing the strength and weakness of different approaches of recruitment and selection.......5
TASK 2................................................................................................................................................6
P3. Describing the benefits of different HRM practices within organisation for both employer and
employees..........................................................................................................................................6
P4. Evaluate the effectiveness of various HRM practices in terms of raising organisational profit
and productivity.................................................................................................................................7
TASK 3................................................................................................................................................7
P5. Analyse the importance of employee relations in respect to influencing HRM decision-making 7
P6. Identify the key elements of employment legislation and impact it has upon HRM decision
making...............................................................................................................................................8
TASK 4.................................................................................................................................................9
P7. Illustrate the application of HRM practices in work-related context, using specific examples....9
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12

INTRODUCTION
Human Resource Management is defined as the planning decision taken by the
managers for maximising the employee performance to achieve organisation goals and
objectives efficiently. The organisation which is selected for this project is ALDI being
common brand of two German family-owned discount supermarket chains. This project
explains the purpose and functions of HRM that are applicable for workforce planning and
resourcing organisation (Armstrong and Taylor, 2020). It further describes the strength and
weakness of different approaches for recruitment and selection with the benefits of different
HRM practices in organisation for both employer and employees. Additionally, it evaluate
the effectiveness of various HRM practices in terms of raising organisational profit and
productivity. This project also identifies the key elements of employment relations,
legislation which impact upon HRM decision making with illustrating the application of
HRM practices in work-related context.
TASK 1
P1. Explain the purpose and functions of HRM that are applicable to workforce in planning
and resourcing organisation
Human Resource Management (HRM):- It is defines as the strategic decision
making procedure implemented by managers of organisation to achieve organisation goals
and objectives. The HR managers of ALDI implement HRM as to gain competitive
advantages in order to remain stable as compared to its competitors.
Functions and activities of HRM:- The functions of HRM are classified into five
categories are explained with reference to ALDI are as follows:-
 Planning:- This is referred as the first procedure for an organise to develop
innovative idea for strategic decision-making as it affects the business positively to
attain success by competing with rivalries. The HR manager of ALDI strategise new
idea as it improve their internal strength to overcome weakness by collecting,
analysing and identifying the current and future needs of consumers (Brewster and
Hegewisch, eds., 2017).
 Organising:- It is the process in which every member are organised with their tasks
and activity which they have to perform in achieving its target efficiently. The HR
managers of ALDI decentralise the activities in various departments which increase
effectiveness by performing task with specialisation.
 Staffing:- This procedure consists of recruitment, selection, training and development
of employees which emphasize organisation by properly filling the vacancy that
reduce delay in accomplishment of goal. The HR managers focus on this function by
recruiting and selecting the right candidate for specified vacancy with prescribed job
details.
 Directing:- It is the process which directs and manage the actions performed by
employees for proper maintaining the quality as to satisfy needs, desire and wants of

consumers. The HR managers of ALDI directs employees to complete their task with
motivation and time management as to be awarded by monetary and non-monetary
terms.
 Controlling:- This is explained as the procedure to control the actions performed of
employees by monitoring the errors which are to rectified by new idea through
corrective measures. The HR manager of ALDI monitors the activities as to
accomplish target with effectiveness that leads to attain success efficiently (Brewster
and et.al., 2016).
The comparison between Best Fit Approach and Best Practise:-.
Best Fit Approach Best Practice
It is considered as the contingency approach. It is referred as universal approach.
This is mostly based upon selecting the
effective Human Resource Policies.
This depends upon matching the policies
appropriately in accordance with
organisation environment.
Workforce Planning:- It is the regular process which never ends as it is keeps on
performing one after the other by analysing the needs and priorities of workers performing in
organisation. The HR manager of ALDI focus on their workforce planning as to meet the
legislation, regulatory, service and production requirements for achieving the objectives of
organisation (Cascio, 2015). There are various types of labour market which are as follows:-
 Physical and Mental labour
 Skilled and Unskilled labour
 Productive and Unproductive Labour
The various trends of labour market are further explained with reference to PESTLE analysis
for the HR managers of ALDI is:-
PESTLE Analysis:- This framework analyse the changes in macro-environmental
factors that affects growth of business either positively or negatively. These are:-
 Political factor:- The HR managers of ALDI are adversely affected as they have to
implement innovative ideas with change in political leaders. This impact for
instability in business as it creates delay in achievement of goal and objectives.
 Economic factor:- The HR managers of ALDI are negatively impacted by fluctuating
foreign exchange rates which affects the business in economic growth and its stability
for retention in performance of labour (Cascio, 2015).
 Social factor:- The HR managers of ALDI are positively affected as they have to
provide job opportunities in society who are educated that will increase efficiency of
business.
 Technological factor:- The HR managers of ALDI are positively affected in
positioning goods to consumers that maximise revenue and profits with quality
management of employees.

 Legal factors:- The HR managers of ALDI are negatively impacted as they have to
pay minimum wages to employees for performing well in their business which reduce
their maximisation of revenue and profits.
 Environmental factors:- The HR managers of ALDI are positively impacted by
reducing environmental issues through taking corrective measures to solve them
which increase consumer support and loyalty (DeCenzo, Robbins and Verhulst,
2016).
P2. Describing the strength and weakness of different approaches of recruitment and
selection
Recruitment:- This is described as the procedure of attracting, short-listing, selecting
and appointing right person for right job and place within an organisation. The HR managers
of ALDI fulfil the vacancy of business by posting the new candidate in place of existing
death and retirement. There are various types of recruitment which are as follows:-
 Internal Sources:- This consists of transfer and promotion within an organisation
that retires or transfers and promoting their candidates from lower to upper position.
HR manager of ALDI attempts to fill vacancies of employees through promotion, re-
hiring, etc.
 External Sources:- It is the process which consists recruitment of employees from
outside the business through recruiting at factory gate, advertisement, educational
institutions, labour contractors, telecasting, etc. The HR managers of ALDI focus on
employment agencies and exchanges which increase efficiency by division of work
through specialisation (Guest, 2017).
Selection:- This is referred as the procedure to select the candidates which are
suitable with the vacancy of business through analysing their qualification, job experiences,
etc. The HR managers of ALDI pick the selected candidate by varieties of interview and
background referrals for determining the right person at right job. It is further classified into
different methods of selection which are explained with reference to ALDI are as follows:-
Selection Tests:-
 Strength:- It focus on selecting the candidates application which is suitable for
vacancy.
 Weakness:- This increase time consumption as to focus on each and every
application applied by the job seekers.
Reference and Background Checks:-
 Strength:- This focus on reference of candidate which determine its personality and
background for analysing any case in previous life which may impact the business.
 Weakness:- It affects the trust and social status of candidate and delay in goal
achievement.
Job Offer:-

 Strength:- The selected person is facilitated with job which fulfil vacancy and
increase efficiency in business with division of work.
 Weakness:- The candidate has to be trained and developed with specialisation of
skills which creates high cost.
On-Boarding and induction:-
The issues affecting successful induction and socialisation of employees are
continuous improvement in their performance by motivating them with monetary and non-
monetary terms. This increase engagement and involvement of workers while performing
their task which results in achievement of goals efficiently (Jackson, Schuler and Jiang,
2014).
TASK 2
P3. Describing the benefits of different HRM practices within organisation for both employer
and employees
Learning is defined as the ability to keep on acquiring and updating the knowledge,
behaviour, skills, values, etc. Development refers as to generate growth, progress, positive
change of physical attitudes, etc., which develops active behaviour of employees to ascertain
target with motivation. Training is described as to undertake workforce with course of action
in preparing their abilities with development of skills by exercising regularly that increase
their efficiency with specialisation.
Reward management:- This refers as formulation and implementation of policies
and strategies to motivates employees for performing their task with eagerness, involvement
and engagement. The intrinsic rewards include personal achievement, professional growth,
sense of pleasure, etc., whereas extrinsic reward involves motivation based on tangible
methods with bonus, incentives, etc.
The link between motivational theory and reward is the process which motivates
the employees either with intrinsic or extrinsic rewards that leads to achieve success
efficiently for competing with rivalries (Kramar, 2014).
Series of job design-job extension techniques includes rotation, enlargement and
enrichment of work to solve problems for achievement of target.
Benefits to employers:- The employers are benefited by the extrinsic rewards which
consist of bonus, profit sharing, medical, life insurance, paid vacations, sick leaves, etc.
The HR managers of ALDI provide benefits to its employers for their proper direction
and control which leads to achieve goal efficiently.
Benefits to employees:- The employees are advantageous by the intrinsic rewards of
organisation through health care, retirement, wellness program, etc. The HR managers of
ALDI attempts to facilitate workforce by non-monetary terms which increase their
motivation to perform effectively for specific task.

P4. Evaluate the effectiveness of various HRM practices in terms of raising organisational
profit and productivity
Performance management:- It is the procedure to perform certain actions in order to
meet the requirements of consumers as they are the king of organisation. The HR managers
of ALDI focus on performance management of employees as it create opportunity for growth
of business to remain stable in economy. This leads to achieve organisation goals and
objectively by proper utilisation of scarce resources with less time consumption. Some
methods for performance management are described to monitor employee work as:-
 Management by objectives (MBO):- This is considered as the appraisal method
where the task is performed collaboratively with managers and employers by
identifying the plan, organising and communicating goals (Purce, 2014). The HR
managers focus on the performance of employees by monitoring the mistakes and
solving it with corrective measures that reduce delay in goal achievement.
 360-Degree Feedback:- This process is described as the ability of employees to be
motivated and to appraise its managers, peers, customers, suppliers with self-
evaluation that results in improvement of performance. The HR managers analyse the
activities with their involvement, determination and engagement to accomplish the
certain specified goal.
The various types of reward payment system have mentioned with reference to ALDI are as
follows:-
 Tangible rewards:- It consists of bonus, incentives, etc., which specifically needs the
use of money to appraise workers. The HR managers of ALDI focus performance
appraisal by motivating their employees for tangible rewards which leads to increase
effectiveness by building employee relations.
 Intangible rewards:- This refers as to provide prizes, awards, vacations, shields,
trophies, etc., which develops annual celebrations for exceptional performance. The
HR managers of ALDI facilitate their workers with intangible rewards as to develop
motivation which results in co-ordinations by reducing the conflicts.
TASK 3
P5. Analyse the importance of employee relations in respect to influencing HRM decision-
making
Employee relations:- It refers to the company efforts for managing the relationship of
workers through co-operation by performing their actions collaboratively towards the specific
goal (Sparrow, Brewster and Chung, 2016). The HR managers of ALDI focus on employee
relation as it develops trust and faith among one another which reduce conflicts and restricts
delay in goal achievement.
Strategies for building and improving employee relations and engagement are
described with reference to managers of ALDI are as follows:-

 Improve trust and confidence:- It develops the trust and confidence by co-
ordination among employees. the HR managers of ALDI focus on developing
relations by accomplishing their task with division of work for specific target.
 Increase motivation:- the employees are motivated by completing their activities for
bonus, incentives. the HR managers of ALDI motivates their workers through
performance appraisal.
 Reduce conflicts:- the employee relations reduce conflicts through proper
understanding, managing actions, developing interest to work, etc. the HR managers
of ALDI reduce conflicts by managing their actions which further eliminates
The purpose of employment law are mentioned below:-
 Fair wages and hour:- the employment law focus on distributing fair wages
according to hours performed. the HR managers of ALDI monitor the actions
performed by employees with their time consumption to analyse wages with bonus,
incentives, etc.
 Equality among employees:- the employment law concentrates on managing
equality in workers by avoiding partiality which further generates jealousy. The HR
managers of ALDI attempts for equalisation as it develops motivation to perform
actions for the organisation by reducing jealousy (Stone and et.al., 2015).
P6. Identify the key elements of employment legislation and impact it has upon HRM
decision making
Employee legislations:- This is defined as legal and lawful objectives implied by
government in order to develop relation between employee, employer and union. The HR
manager of ALDI focus on employment legislation as to treat every worker equally by
providing them minimum wages in order to survive their livelihood. The Key legal issues and
constraints mainly depends upon the equality, data protection, health and safety, redundancy,
dismissal, employment contracts, etc. Some of these employment legislations are described
below as:-
 Collective agreements:- It is the procedure for employers and employees to perform
their task collaboratively as a team to achieve certain specific goal. The HR managers
of ALDI focus on collective agreement as to achieve organisation goals effectively
and efficiently.
 Discipline:- This law determine the disciplinary process of employees while
performing their activities with reduction of conflicts and misunderstanding. The HR
managers of ALDI manage discipline among employees which increase effectiveness
and efficiency for achievement of success.
 Grievances:- It refers with the problems or complaints that employees describes
regarding their employers for their partiality or inequality. The HR manager of ALDI
concentrates on legally binding process for employer to handle the grievances at work
(Wilton, 2016).
 Redundancy:- It is the format which consists of dismissal from job on their
retirement and death of worker which reduce their workforce. The HR managers of
ALDI attempts to meet the code of conduct for achieving the desired goal without
much delay to compete with rivalries.

TASK 4
P7. Illustrate the application of HRM practices in work-related context, using specific
examples
Recruitment procedure:-
Job analysis:- This procedure is used to determine the vacancy of job at what specialisation
for which duty and responsibility. The HR managers of ALDI recruit the new candidate at
right job and place.
Job description:- It refers to describe the new joinee about the job and interact with
surroundings and explain its duties and responsibilities which are to be performed with
specialisation .The HR managers of ALDI narrates the roles of worker which are to done with
effectiveness and efficiency by interfering with environment of business.
Job Title Team Leader
Job Purpose  Should be able to analyse and
determine the future goal for which
the action has to be taken by team.
 Leader must communicate actions by
division of work to their employees in
accordance with specialisation.
Job Duties  The leader must play the major role in
helping their managers by providing
the effective result with their team at
particular duration.
 Leader must be aware about the
product is meeting the requirements
of consumers or not.
Skills and Qualification  Good knowledge of work
 Self - Motivated
 Tolerance
Personal specification:- The selected candidate is further introduced to its sub-ordinates,
colleagues, supervisors, managers, etc. The HR managers orient the employee with personal
description.
Curriculum Vitae
Rowan Cowell
99, City Road, London
Email Id: edward.xyz @gmail.com

Career Objective: The aim is to develop innovative ideas that provide scope to utilize my
talent and increase competition with hard work and determination as being part of the group
which will certainly lead to achieve organisation goal.
Qualification:
Master of Business Administration in Human Resource and Finance from a well known
university.
Bachelor of Commerce.
Work experience:
1 year teaching experience as professor in an University by taking lectures of subjects in HRM
related organisational behaviour, motivation, employee relations and performance measurement
and appraisals
Skills:
Effective communication skill.
Good listener
Hobbies and Interest:
Learning different languages
Competency framework:- This model broadly identifies the excellence of activities
performed by various employees which includes large number of competition for multiple
occupational roles. The HR managers of ALDI determine the knowledge, skills, attributes
implied to complete the task.
The Questionnaire is described below:-
Questionnaire
Q.1 ) describe us about yourself ? Ans.1) My name is Rowan Cowell and have
completed my post graduation in Master of
Business Administration in Human
Resource and Finance with graduation in
Bachelor of Commerce.
Q.2) The reason behind leaving your past
job ?
Ans. 2) The reason behind leaving the
current job is to explore and learn more
about different organisations.
Q.3) Why do we select you for our job ? Ans.3) The reason to select is experiences
and the best reviews of my job and assurity
that you will also be satisfied with my

performance.
CONCLUSION
From the above discussion it have been concluded that human resource management
is very essential for an organisation to determine the needs of employees for motivating them
to increase their effectiveness. This project determines the purpose and functions of HRM
that are applicable for workforce planning and resourcing organisation through planning,
organising, staffing, directing and controlling. It further describes the strength and weakness
of different approaches for recruitment by internal and external sources and selection through
reference and background test and job offer. It analyse the benefits of different HRM
practices in organisation for both employer and employees. Apartly, it evaluates the
effectiveness of various HRM practices in terms of raising organisational profit and
productivity. This project also identifies the key elements of employment relations,
legislation which impact upon HRM decision making with illustrating the application of
HRM practices in work-related context through ethical and social responsibilities.

REFERENCES
Books and journal
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in european human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C., and et.al., 2016. International human resource management. Kogan Page
Publishers.
Cascio, W. F., 2015. Costing human resources. Wiley Encyclopedia of Management. pp. 1-1.
Cascio, W. F., 2015. Managing human resources. New York: McGraw-Hill.
DeCenzo, D. A., Robbins, S. P. and Verhulst, S. L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
Guest, D. E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal. 27(1). pp.22-38.
Jackson, S. E., Schuler, R. S. and Jiang, K., 2014. An aspirational framework for strategic
human resource management. The academy of management annals. 8(1). pp.1-56.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human
resource management the next approach?. The International Journal of Human Resource
Management. 25(8). pp.1069-1089.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Stone, D. L., and et.al., 2015. The influence of technology on the future of human resource
management. Human Resource Management Review. 25(2). pp.216-231.
Wilton, N., 2016. An introduction to human resource management. Sage.