Importance of Employee Relations in HRM Decision-Making

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.