HRM Practices and Employee Management

This assignment focuses on the significance of Human Resource Management (HRM) practices in managing employees effectively. It discusses various aspects of HRM, such as training and development, employee counselling, and reward management. The report emphasizes the importance of HRM in ensuring employee satisfaction and compliance with regulations. By analyzing the benefits of HRM for both employees and employers, this assignment provides a comprehensive understanding of HRM practices and their impact on organizational growth.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organisation.................................................................................................................................1
P2 Different approaches to recruitment and their strength and weakness..................................2
LO 2.................................................................................................................................................4
P3 Benefit of different HRM practices for employer and employees.........................................4
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.................................................................................................................................6
LO 3.................................................................................................................................................7
P5 Importance of employee relations in respect to influencing HRM decision making............7
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making..........................................................................................................................8
LO 4.................................................................................................................................................9
P7 Application of HRM practices in a work-related context, using specific examples..............9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human Resource Management (HRM)involves management of employees in the company to
assist an organisation in achieving organizational goals. ALDI is a supermarket giant based in
German and has its store spread out all over the world. This report highlights the purpose and
functions of HR management applicable in the organisation and different approaches of HRM
practices have been detailed. Further this report highlights various benefits for employer as well
as employees in ALDI; effectiveness of HRM practices and importance of employee
relationship. Lastly, the laws supporting human rights and application of HRM practices have
been detailed.
LO 1
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organisation.
Human Resource Management is associated with various functions like HR requirement and
planning, selection, training and development, managing personnel etc. Various functions of
HRM has been explained below :-
RECRUITMENT :- Recruitment process involves identifying the potential employees meeting
their requirement criteria and then selection of the best candidates. HR at ALDI hires the best
and deserving candidates from all the available ones selecting them on the basis of their
professionalism, integrity, dedication etc.
TRAINING AND DEVELOPMENT :- Every new employee joining the organisation, needs
training so that employees can become flexible with the work culture, working conditions and
understand the environment of the organisation. At ALDI, training and development is mainly
used for the purpose of developing skills and increase the efficiency of the employees at the
workplace. In ALDI, the employees are given training in mainly two ways :- On-the-job and Off-
the-job. On-the-job training is imparted to employees during their working hours i.e. when they
are on the role (Brewster and Hegewisch, 2017). Off-the-job training is the training imparted to
employees when they are off the role i.e. to enhance heir expertise and intellectual skills in
research or equipment handling etc.
PERFORMANCE MANAGEMENT :- After the employee has been selected and trained, his
performance is regularly evaluated by the HR Department. HR at ALDI uses various methods
like self evaluation, performance evaluation, peer ratings and target meeting abilities of the
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employee thus measuring the employees output. HR takes all these efforts to ultimately boost the
knowledge gained by the employee and improve his experience with ALDI. Based on the
performance of the employees, they are given daily appraisals or even monthly reviews by HR at
ALDI.
REWARD MANAGEMENT :- The monetary as well as non – monetary benefits, incentives,
awards, appraisals etc. which are given to the employees on the basis of their performance which
is evaluated by the HR come under reward management. Monetary benefits includes bonus,
allowances etc. and non monetary benefits include promotions, gifts etc. At ALDI, rewards are a
key tool used for motivating employees and enhance the job satisfaction that they derive thus
improving the efficiency of the organisation. Efficient employees also ensure that the targets set
by the company are completed timely and they work towards achievement of goals.
P2 Different approaches to recruitment and their strength and weakness.
Companies have to implement various approaches in order to manage people in
organisation effectively. These approaches are helpful in accomplishing the goal of business
successfully.
Workforce planning
It can be defined as having talented people those who have necessary skills and
experience of performing the job effectively. The main approaches of workforce planning are
described as below:
 Workforce approach: It helps in examining employee’s abilities to perform the task and
analysing the number of individuals required to perform specific project.
 Workload approach: This method concentrates more on effective utilisation of resources
in order to finish the required task within stipulated period of time (Chelladurai and
Kerwin, 2018).
 Competency: It involves criteria of workforce and workload approach both, as it
considers number of people alone with their competencies. So that company can
accomplish its goal successfully. ALDI implements competency approach of workforce
planning at workplace.
Strength Weakness
It supports in effective succession planning.
It aids in utilisation of resources and skills of
It emphases lesson leadership as it only
concentrates on capabilities of employees and
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individual in significant manner. work performed by them.
Recruitment
It is the process of hiring candidates in organisation, there are two main approaches:
internal and external. Internal approach is the tool in which entity selects person from existing
workforce in order to fill that vacant post. Whereas in externa; approach candidates are selected
from outside environment. ALDI follows external recruitment process for hiring the best person
in the firm.
Strength Weakness
It is beneficial in bringing fresh people in
business who have great experience and
knowledge.
Company has unlimited choice as large pool of
candidates are available if it takes support of
external recruitment sources.
It is time consuming and longer process.
Cost of hiring individual from external
environment is quite high.
Selection
It is the process of picking up the most deserving candidate out of large pool of
applicants. Interview, selection test etc. are so methods of selecting the most talented people in
the enterprise. ALDI takes support of interview method and analyses the capabilities of person
by conducting interview session.
Strength Weakness
It is beneficial in analysing skills and ability of
candidate face to face effectively.
Through interview HR team of ALDI can
collect supplementary information as well.
It is costly and time taking process.
If HR does not have knowledge about
interview process, then through this method
company will not be able to judge capabilities
of candidate.
Development and training
Training is the method of raising skills of person so that new employee can perform their
work in organisation significantly. On the job and off the job are two common techniques of
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training which is applied by each firm. ALDI uses off the job training method in which it uses
role play method.
Strength Weakness
As employees are getting trained separately
hence firm can enhance error free production
rates.
It is time saving technique.
Person become non-effective because during
the training session employees don’t perform
any task.
Performance management
Measuring and managing performance of employees is very important for organisation.
There are several methods such as 360 degrees, result approach etc. ALDI takes support of 360
degree method in its workplace.
Strength Weakness
This is beneficial in gathering different
perspective about the workers in order to
analyse their performance.
It emphases more on core competencies of
person hence promotion decision can be taken
significantly.
It is unable to assess performance of individual
honestly.
It is time consuming process.
Reward system
Monetary and non monetary reward systems are two main approaches. ALDI implements
monetary approach in its workplace.
Strength Weakness
It fulfils needs of person by giving them extra
incentives, bonuses etc.
It supports in improving employee retention
rate in business.
It is impossible to satisfy needs of each
workers in ALDI because some of them have
recognition needs.
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LO 2
P3 Benefit of different HRM practices for employer and employees.
HRM PRACTICES EMPLOYEE BENEFITS EMPLOYER BENEFITS
Training and
Development;
Learning Practices
To enhance their working skills and
to make the employees understand
their duties carefully, training and
development as well as learning is
imparted to the employees at ALDI
to boost their confidence. The
employee feels a sense of
belongingness to ALDI and this
motivates him to work harder.
Improvement on skills and
motivation level of the
employees lead to enhanced
productivity in ALDI and this
benefits the employer
ultimately. This has also led to
reduction of employee turnover
rate at ALDI.
Flexible Working
Practices
A human being is a social animal
having various responsibilities. Flexi
work timings supports this basic
notion by allowing the employees to
work as per their convenience and
with a peaceful mind at ALDI. This
enhances the quality of an
employee's work.
When an organisation supports
flexi work timings, it attracts
more talented employees. At
ALDI, their support to their
employees has helped them in
attracting and maintaining a
very dedicated personnel at their
service.
Monitoring the
performance of
Employee
HR at ALDI gives regular feedback
to their employees regarding their
performance at work between fixed
time durations. Sometimes, when
they over perform or underperform,
then they are appropriately rewarded
or punished (Guest, 2017). This
keeps a check on the efficiency level
of the employees and motivates them
to perform better. This has also
Performance monitoring helps
the management at ALDI in
identifying their employees'
skills and assigning them work
as per their expertise. It helps
them in analysing the current
situation at the work and
directing employees to increase
their productivity and guide
them towards achieving ALDI's
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improved the communication as well
as enxcourages relationship building
between employer and employee at
ALDI.
goals.
Reward Management ALDI's practice of giving rewards
and benefits to the employees
increases their morale and the
motivation to work harder. It also
helps employees in adapting
themselves to the environment
quickly and it also increases their job
satisfaction level at ALDI.
Regulating employee friendly
practices at ALDI has helped
them in attracting a larger
number of candidates and this
helps the HR in selecting more
qualified or better personnel for
ALDI. This ultimately enhances
the productivity. Also, giving
rewards to the employees
increases their retention level
and thus reduces the employee
turnover rate.
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.
Training and Development; Learning Practices :- To increase the performance of the
employees, HR Management focuses on improving their skills and efficiency level. They do this
by educating them about their duties and responsibilities and training them accordingly so that
they can increase their output thus enhancing the productivity of their employees. For the benefit
of ALDI in the long run, employees being the major internal factor acting as an input to the
organisation, they play a key role in enhancing their productivity by improving performance.
This increase in performance leads to profit generation for ALDI thus benefiting them in long
run (Nankervis and et.al., 2016).
Flexible – Working practices :- to enhance the productivity of the company, it is important that
the employees off that organisation feel motivated and to work with motivation, they need to be
comfortable in the organisation and its surroundings. At ALDI, flexi – work option encourages
employees to work as per their convenience and comfort. Flexi work helps them in creating their
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own preferred schedules and work timings. This helps them in completing the task assigned to
them with a vigour's and fresh mind thus energizing them to work more effectively. Increase in
productivity leads to increase in the profitability of the company and at ALDI, their attractive
flexi work timing options attracts a lot of suitable candidates. This gives ALDI a lot of options
amongst the candidates to select those which are more proficient or suitable ones who will
benefit more to the organisation through their skills (Human Resource Management Good
Practices, 2017).
Monitoring the performance of Employee :- Regular monitoring of the performance of the
employees helps the management at ALDI in keeping an eye on the employees and their
productivity. It also helps them in identification of key skills of their employees. Then the
management at ALDI task their employees as per their key expertise. This benefits the company
in multiple ways as it correctly exploits the resources available wit them in the form of
employees and it also enhances the productivity of the company thus enhancing their profit of
the company (Noe and et.al., 2017). This also points out to the management at ALDI about those
employees who are not performing their tasks efficiently and thus eliminating such employees
who are wasting their resources without generating benefits.
Reward Management :- The basic purpose of giving rewards is to motivate the employees of
the company and increase their productivity. Giving rewards to the employees of ALDI, makes
them feel appreciated. This has over the period of time increased the retention rate of employees
at ALDI. Also, the added incentives and other benefits make the employees work harder to
achieve such targets which will validate them to allow such benefits or incentives.
LO 3
P5 Importance of employee relations in respect to influencing HRM decision making.
At ALDI, every employee shares a different bond with different employees. It is the basic
tendency of humans to interact with other humans. To achieve the shared organisational goals, it
is mandatory for the employees to feel comfortable with each other. Following points illustrate
the importance of the employee relations in an organisational setting :-
Effective Communication :- To ensure that the management of ALDI does not practice
discrimination within its employees whether intentional or unintentional, it is crucial to have an
effective communication system. Effective communication clears the picture for the HR of the
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company and helps them in making proper decisions (Wilton, 2016). This motivates the
employees of ALDI to work harder in order to achieve the tasks assigned to them.
Shared Work :- At ALDI, strong relationships exist between the employees of the company.
This encourages proper distribution of the work load in the company. The division of work
amongst the team members helps the employees in working efficiently towards achievement of
the targets assigned to them. Also, at ALDI, team leaders have good relationships with their
employees which helps them in assisting the employees and making their task easier.
Conflict management :- Encouraging good relationship building in the company has reduced
the conflicts arising at ALDI. Good rapport between the employees has fostered trust amongst
the employees. They rely on each other and instead of competing amongst themselves, they
focus on achieving the goals of the organisation together. This increase in productivity as a result
of excellent relationships, helps the HRM in ALDI to take better and timely decisions.
Employee Loyalty :- The employee friendly environment at ALDI has encouraged their
employees to remain loyal to the organisation. The company gets benefited due to more profit
generation as employees work dedicatedly trying to give back to the organisation as much as
they are receiving. They willingly try to fulfil the tasks assigned to them efficiently which has
ultimately been favourable for ALDI. This increased loyalty of employees also leads to reduction
in the employee turnover and thus cuts the down the recruitment cost of the company (Brewster
and et.al., 2016).
Clarity of Mind :- When the HR of any organisation is well versed with the habits and the
capabilities of its employees, then it automatically leads to a much effective decision making. At
ALDI, the HR understands the mindsets of their employees and good relationship build up
between the employees help them in taking decisions accordingly.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making.
Health and Safety Act, 1970 :- This Act ensures that employee gets a safe work environment in
the company. It is the duty of the HR Department at ALDI to ensure a healthy and safe
environment. They also have to ensure the safety of the employees during their training period if
the nature of such training which is imparted is dangerous in nature (Bratton and Gold, 2017).
HR has to ensure that the environment is not hazardous and employees can work healthily.
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Anti-Discrimination Law, 1964 :- As per this law it is prohibited that any discrimination is
being made between the employees based on their colour, sex, creed, gender, religion or
nationality. All the organisations employing more than 15 employees for over a period longer
than 20 weeks in the previous or present year. At ALDI, employees are given every right and
treated fairly. HR management ensures that employees are not harassed and the work culture is
excellent.
Equal Pay Act,1963 :- At ALDI, HR management ensures that the male and female employees
of the organisation at same position having same workload receive equal wages i.e. no
discrimination is carried out on the basis of gender. This ensures fair decision-making in the
company.
Family Medical Leave Act, !993 :- This Act states that an employee working for more than a
year is legally entitled to take leave for 12 weeks in case of a medical emergency if any, arises in
the family or with oneself. Childbirth, family illness, entitlement to foster parenting are some of
the key causes of taking benefit under this Act. At Aldi, this Act is applicable and if any
employees seeks leave due to any of the purposes mentioned in the act, then he is entitled to take
leaves and HR should ensure that they are benefited (Berman and et.al., 2019).
LO 4
P7 Application of HRM practices in a work-related context, using specific examples.
Job Title Human resource officer
Reports to CEO
Roles & Responsibilities Training and Development, Recruitment of employees.
Qualification Bachelor's Degree in Human Resource Management
Title of the job Human resource assistant
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Date: 5/06/2019
Qualification required Essential Desirable Met
Minimum requiremnt is
Bachelor's degree in
Human Resource
Management
(Compulsory)
Relevant Courses or
degrees in HR
(Preferred)
Yes
Yes
Need of Experience
Minimum Experience
required id 3 Years in
the Relevant Field
Yes
Personal characteristics
& conduct
Leadership Quality
Good Communicant Skill
Authority
Quick Decision Making
Ability
Yes
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Integrity
Sympathetic Attitude
Patience
Roles and
Responsibilities
Recruitment of Employee
Training and
Development of
Employee
Performance Monitoring
Reward Management
Yes
Interview Questions
 Tell us about your position at the previous organization and your responsibilities.
 According to you, what would be the best strategy for simplifying the recruitment
process?
 As HR Manager, what are your views on the benefits of regular counselling of employees
regarding their problems?
 What strategy would you formulate to handle the employee and the situation in case
he/she behaves negatively?
 How would you identify if there is requirement of employee training in the company?
Rationale for conducting HR Practices :-
HR management is necessary in any organization as it controls the workforce and
strengthen the business operations throughout the company (Banfield, Kay and Royles, 2018).
Some functions performed by them are :- 'analyse benefits to be provided to employees',
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'determine wages and salaries', 'ensure safety and risk management', 'training and development',
'maintain compliance', 'employee satisfaction' etc.
CONCLUSION
After going through the research carried out in above report, it can be summarized that at
ALDI, HRM is an important function and highly influences an organisation's capacity by hiring
the work force. The report also concludes that HRM practices benefit both employees as well as
employer and are essential for an organisation's growth. Employee legislation along with
relationship ensure the peaceful working in an organisation.
REFERENCES
Books and Journals
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management. Oxford
University Press.
Berman, E.M. and et.al., 2019. Human resource management in public service: Paradoxes,
processes, and problems. CQ Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and et.al., 2016. International human resource management. 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.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
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.
Nankervis, A.R. and et.al., 2016. Human resource management: strategy and practice. Cengage
AU.
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