Aldi's HRM Practices for Quality & Performance

This assignment delves into the application of Human Resource Management (HRM) practices at Aldi to maintain high-quality products, manage employee performance effectively, and create a skilled workforce. It covers areas such as maintaining product quality, managing performance, creating mission and vision, human resource planning, and training & development. The task is to analyze these aspects and provide recommendations for Aldi's managers to enhance productivity and profitability.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Functions and purpose of HRM.......................................................................................1
P2. Different approaches of recruitment with their strengths and weakness.........................2
TASK 2............................................................................................................................................4
P3. Benefits to employer and employee from different practices of HRM............................4
P4. Effectiveness of HRM practices.......................................................................................5
TASK 3............................................................................................................................................7
P5. Importance of employee relations in influencing the decision making of organisation. .7
P6. Employment legislation and its impact on organisation..................................................8
TASK 4............................................................................................................................................9
P7. Application of HRM practices at the workplace .............................................................9
CONCLUSION and RECOMMEDATION.................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management is the process of managing employees, their actions and
activities at workplace. It is done to maximise the performance of workers in order to increase
organisational effectiveness. Staff members are the main elements of success of every enterprise
and so, it is essential to give them proper guidance and this can be effectively done by HRM
practices (Huselid and Becker, 2011). For this, various methods and tools can be used by the
firm. Number of legislations and laws are there which help or guide enterprise to make HRM
practices more ethical and effective. Aldi is one of the biggest and leading grocery retailers in
world. Company provides its services through more than 500 stores and generate a large amount
of revenue every year. Present report contains essential information about purpose and functions
of human resource practices in organisation. Different methods of recruitment with their
strengths and weakness are studied in this essay. Along with this, benefits of HRM practices to
both employees and employers along with various legislations which affect the employment
practices are also mentioned in this report.
TASK 1
P1. Functions and purpose of HRM
Managing employees and their actions is one of the most important tasks of every
enterprise. HRM practices are used by the firms for having effective management of human
resources. Main reason behind use of this approach is to recruit right people for the right job. It
helps in describing the roles and responsibilities of each job of company which helps manager in
recruiting skilled candidates for performing complex roles at workplace (Human resource
management, 2017). This practice makes the process of recruitment more effective so that
qualified candidates can be chosen by firm.
Main functions and purpose of human resource management in Aldi can be understood as
follows: Recruitment and selection: It is one of the main and important functions of HRM.
Recruitment is a process of evaluating skills and abilities of all candidates applying for a
vacancy (Armstrong and Taylor, 2014). Selecting the best and most suitable candidate for
a vacant position is known as selection. Human resource practices help in making this
process more effective by defining all roles and duties of a particular job.
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 Training and development: Identification of training needs of subordinates and
conducting same for them comes under the duty of human resource department. It helps
workers in enhancing their skills and making them more efficient. Training should be
provided to new workers in order to make them able to understand the working methods
and environment of enterprise. Orientation: Orientation programmes help newly hired candidates to learn and adjust in
the working environment of company. This programme is conducted to give information
to new candidates that regarding the way he/she can achieve success in the firm. This can
be done by managers of Aldi. Maintaining good relations with employees: Healthy relations with workers help
organisation in achieving both short and long term goals. Workers play an important role
and contribute a lot in the success of enterprise. So, it is important to maintain healthy
relations with them in order to get their commitment (Boxall and Purcell, 2011). This can
be done by making their compensation plans more attractive and eliminating favouritism
from the workplace.
 Provide and maintain healthy work environment: To attract skilled workers in
organisation, it is very important to provide them healthy conditions to work. No one
wants to work in a hazardous and risky work environment. This motivates employees in
giving their best and increasing the productivity. It helps in increasing the satisfaction
level of workers. Managers of ALDI can do the same to attract large number of skilled
candidates by applying HRM practices in an effective way.
All these functions of HRM should be performed well by the enterprise. By performing
all these, Aldi can increase the effectiveness of its organisational activities. Managers of
enterprise should understand the impact of HRM function and give attention to these for gaining
desired results.
P2. Different approaches of recruitment with their strengths and weakness
Recruiting candidates for a job is one of the main tasks of every enterprise. Success of
enterprise depends on its workers and the skills they possess. It is very important for mangers of
Aldi to hire skilled candidates and this can be done by using following sources of recruitment.
Internal sources of recruitment: Under this, enterprise get vacancies filled from people
within the organisation (Brewster and Hegewisch, 2017). This is one of the most popular
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approaches of recruitment in which skilled workers of enterprise are promoted to next higher
level. This helps in increasing the skills and knowledge of subordinates. Following are the main
benefits of using this approach:
Advantages: This method of hiring saves cost of advertisement and training. It is a fast
process of taking recruitment decisions. This increases the commitment and morale of workers
and motivate them to perform their best.
Disadvantages: This method of recruitment fails to bring innovation and new skills in
enterprise. It is a complex method because it creates complexity and confuses manager for
choosing the best candidate for right job. Also, it demotivate workers who fail to achieve
promotion
External sources of recruitment: It is opposite from internal approach of recruitment.
Under this, manager hires or fills the vacancies from outside the organisation (Bratton and Gold,
2012). Under this, enterprise does advertisement and invites capable candidates for filing the
vacant positions. This can be used by Aldi to hire innovative and capable people to fill the
vacancy.
Advantages: This method brings fresh and innovative talent at workplace. It gives
additional knowledge to enterprise. Along with that, it makes the environment of enterprise more
competitive as well as increases the overall productivity and performance of firm. Managers of
ALDI can make a competitive and better environment of work by using this approach.
Disadvantages: It is a lengthy process of hiring people and a costly method too. This
creates complexity between new and old employees of the enterprise. This method demotivate
existing workers of organisation.
One method of hiring new candidates is not effective all the time. Both methods can be
used time to time to increase effectiveness of recruitment process and to hire skilled and
qualified candidates (Guest, 2011). Managers of Aldi can use both methods to fill vacancies at
workplace and to increase the productivity or performance of enterprise.
TASK 2
P3. Benefits to employer and employee from different practices of HRM
Practices of HRM bring consistency and increase effectiveness of all activities. Apart
from this, these provide various advantages to employers and workers working in enterprise.
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Aldi can also use these practice to provide various benefits to its employers and employees.
Benefits to employer can be understood by the following information: Guide and support managers: One of the main benefit of HRM practices is that it
provide support and guide managers in making effective decisions in enterprise (Jiang
and et. al., 2012). This gives shape to all activities of organisations for enhancing its
performance. Help in making planned decisions: It helps manager in doing planning for future actions
of the firm. One of the main advantages of this is that it helps in utilisation of resources
and decreases the cost of business operations. Help in developing plans and policies: HRM practices bring important data to managers
about the performance of every department and employees which help employers in
making and deciding organisational plans more effectively (Wright and McMahan,
2011). Circulation of formal information: HRM helps in analysing the performance of all
workers and various departments of organisation which makes the manager aware about
what's going on at workplace. This can Help managers of Aldi in planning future
activities. It helps managers in collecting relevant and important formal data which help
managers in taking better future decision.
 Bettering employee relations: It helps in improving employer and employee relations in
the firm. This can be achieved by offer growth opportunities to employees and by treat
them in a fair way.
Benefits to employees: Solving conflict: These practices help in defining appropriate actions of workers at
workplace which support in making the work environment more effective. It helps in
eliminating all confusions and issues rise at workplace (Lengnick-Hall, Beck and
Lengnick-Hall, 2011). Also, it encourages and helps in building a healthy work
environment which leads to improve the performance of employees. Negative work
environment gives birth to insubordination, negative work attitude and other
unacceptable behaviour of workers. Contribute in making healthy and favourable work environment: Healthy working
environment influences and motivates employees to perform their best. Human resource
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practices help in making the business environment free from any hazard which improves
the satisfaction level of workers and their performance. Favourable work environment
increase the productivity of workers.
 Help in identifying development and training needs of employees: By continuously
analysing the activities of employees, HRM practices help in conducting training and
development programmes for workers (CHUANG and Liao, 2010). This helps in
improving their skills and making them more able to survive in the competitive market.
HRM practices help in making positive business environment and encourage workers to
give their best. It helps organisation in generating a large amount of revenue every year. These
practices increase the effectiveness of communication process which help in telling every
employee about their roles and responsibilities. All these create and make healthy working
environment, boost morale of workers and provide numerous benefits to both employer and
employee. Employers and employees of Aldi can be benefited from these benefits by effectively
applying HRM practices at workplace.
P4. Effectiveness of HRM practices
Practices of HRM increase effectiveness of all activities of a firm. Profits and
productivity of organisation can be measured to calculate the effectiveness of these practices.
Activities of human resource department brings coordination among all departments and
activities of firm which help in reducing the cost of operations. This helps enterprise in getting
competitive advantage in the market (Purce, 2014). It provides various growth opportunities to
workers which result in increasing their satisfaction and commitment. This motivates or
encourages various practices including fair treatment and compensation to workers. It helps in
eliminating confusion arise in the minds of workers at workplace and solving various critical
issues.
Subordinates are the important ingredients of every enterprise's success and activities of
HRM create and provide healthy working conditions to workers which enhance their satisfaction
level and productivity. Managers of Aldi can use these practices of human resource management
in identifying needs and wants of workers and can increase their performance. It brings
consistency among all the operations of organisation and this makes the firm able to achieve
efficiency among all commercial activities (Bloom and Van Reenen, 2011). It encourages
employees to give their best which increases productivity and profits of the firm. These practices
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motivate ethical activities at workplace which increase the goodwill of company in public,
decrease employee turnover and attract potential candidates to work with company.
Practices of human resource should be applied in a correct and effective way so that
overall performance and productivity of workers could be maximised (Daley, 2012). Effective
performance of workers increase overall productivity of firm which helps in delivering quality
products to a large number of customers and achieve their satisfaction level. It helps company in
capturing high market share and generate more revenues than its competitors.
Managers of Aldi can use or apply all HRM practices in an effective way for the
fulfilment of all set objectives and aim. This maximizes the market share of company which
increases cash flows of the organisation. Overall HRM practices can be used in different ways to
increase organisational profits and productivity. It helps the manager in planning ahead by
collecting relevant data which helps in decreasing cost of various operations.
In absence of this practice, enterprise could not achieve its objectives in an efficient way.
So, it is essential for every firm to implement this concept and proper attention should be given
to all needs and wants of subordinates (Kehoe and Wright, 2013). Through skilled and talented
workers, company can better satisfy the needs and wants by customers by offering them
innovative and featured products.
For increasing the effectiveness of ALDI managers need to give emphasis and should
encourage the participative decision making. This will help employees in feeling an important
part of organisation and this way they will give their best which will enhance the effectiveness
of all commercial activities of ALDI.
TASK 3
P5. Relevance of employee relations in influencing the decision making of organisation
Building and maintaining healthy relations with workers is the key element of
organisational success. It helps the firm in gaining trust and increase commitment of employees.
Managers of Aldi can maintain good relations with workers by following:
All subordinates should be treated in a fairly manner.
 Treatment based on favouritism should be eliminated from the workplace.
 Involvement of workers in decision making process should be encouraged.
 Friendly treatment with workers should be done and threats should be eliminated.
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 Ethically and fair practices should be encouraged.
 Appreciation of well performed employees will motivate them to perform best in the
organisation.
 Effective communication should be there in between all departments of firm so that
everyone can have knowledge about their roles and responsibilities.
 Feedback from workers should be encouraged. This will help managers about problems
and issues faced by subordinates at workplace.
 Job rotation should take place as this will make the workplace environment more
competitive, interesting and challenging.
All these ways can be adopted or used by Aldi to make good relations with workers. In
today's business environment, it is very important for every firm to create and maintain healthy
relations with workers (Crook and et. al., 2011). It enhances the performance of employees and
increases organisational ability to achieve set objectives or targets. Number of opportunities
should be given to employees for the growth of firm. Pay for performance help in maintaining
good relations with workers and influence them to perform better.
Proper appreciation and incentives should be given to employees who perform as per
what is expected from them. This increases the commitment of workers and they will get
motivated to perform their best. It will help in creating a positive work environment. Stress
management techniques and effective redressal system should be there at workplace of Aldi to
solve critical issues. Effective solutions to problems help in increasing smoothness among all
operations at workplace.
Unhealthy relations with subordinates give rise to negative and wrong attitude of workers
which will increase the cost of business activities, decrease employee's morale and their
productivity as well. So, it is necessary for every firm to create and maintain healthy relations
with workers at workplace (Vörösmarty and et. al., 2010). This will create the goodwill of
company high in mind its shareholders and public at large.
P6. Employment legislation and its impact on organisation
Employment legislation is a combination of various laws which define or help in
safeguarding the interests of workers. It guides employers in making effective and fair
compensation plans. Following are the laws related with employment legislations:
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 Employment rights act: This is the main and an important act of employee legislation.
This act defines basic rights and benefits of a worker. This act defines that an employee
should be benefited with minimum wage. Along with this, proper and healthy conditions
should be provided to workers (Ployhart and Moliterno, 2011). All conditions of work
should be told to subordinates in a written document before joining the organisation. Equal pay act: This act states that same remuneration should be given to all individuals
doing or performing the same job. This will create a healthy and positive working
environment which is necessary for a firm for the attainment of objectives. Discrimination act: This act defines that every worker in enterprise should not be
discriminated on the basis of his/her gender, age, colour, culture and on any other factor.
Fair treatment and equal opportunities should be given to every individual (Gruman and
Saks, 2011). Discrimination should not be there in areas like promotion, recruitment of
candidate, providing training and development facilities to them as well as on every other
basis. Elimination of Discrimination will make positive work environment at Aldi. Minimum wage act: This act decide the minimum wage or salary which should be given
by every employer to employee working in the firm (Employment legislations, 2017).
This wage is necessary to fulfil the basic needs and requirements. This minimum amount
is decided according to the inflation rate existing in market. Employee relations act: This act states that every manager is liable to maintain good
relations with employees. This helps the enterprise in attainment of objectives with
minimum cost and within a specific time period. Employee relations can be maintained
by offer growth opportunities to employees and by treating them in a fair manner. Working time directive: This act says or describes the minimum working hours of a
subordinate at workplace which is 48 hours. Employees can work for long hours if they
want.
 Disability discrimination act: This act states about the number of facilities that should be
provided by an organisation to disabled workers. It save rights of disabled people at
workplace and tells that special working conditions should be provided to them.
All these legislations should be used by managers of Aldi because it help employer to
make effective policies regarding various benefits and compensation of subordinates (Brewster
and Hegewisch, 2017). It increases employee’s productivity and performance of overall
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enterprise. These laws help the manager in making effective HRM practices and encourage
employees to work ethically.
TASK 4
P7. Application of HRM practices at the workplace
Practices of HRM help in increasing the effectiveness of organisational activities. Aldi
can apply these practices in following areas: Maintain quality: Maintaining quality of business products is necessary to attract a large
number of customers towards company's products and to satisfy their needs and wants
(Bratton and Gold, 2012). Human resource management helps in maintaining the quality
of business activities and products by timely evaluating them. Management of performance: Managing performance of employees and various
departments is one of the major tasks done through HRM. It helps in taking remedial
actions if required and enhances the performance of enterprise Creation of mission and vision: Worker’s qualities and skills affect the process of
achieving vision and mission (Jiang and et. al., 2012). Skilled workers help the enterprise
in achieving objectives of organisation efficiently and effectively. Human resource planning: Practices of HRM help the manager in designing recruitment
plan or workers also need to perform various activities. It helps in reducing the cost of
hiring best suitable individual for right job and reducing the cost of recruitment.
 Training and development: HRM practices help in identifying training and development
needs of employees. Skilled employees help the enterprise in delivering better services to
its customers and gain competitive advantage in market.
Effectiveness of these areas can be can be enhanced by managers of Aldi proper applying HRM
practices in whole organisation.
CONCLUSION and RECOMMEDATION
From the above information, it can be concluded that managing employee's actions is
necessary for every firm to achieve success. These are the one who make end products for the
customers and so, proper training should be given to them. It has been assessed that this is
essential for every firm to hire skilled and talented workforce for performing various tasks in an
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effectual manner. Concept of HRM is a critical one because it includes understanding different
needs and wants of all employees. It is the responsibility of every employer to maintain healthy
relations with subordinates by providing them strong and positive working environment.
Practices of HRM bring coordination among various departments of organisation. Managers of
Aldi can increase profits and productivity of their business operations by effectively applying all
practices of human resources. Every subordinate of organisation should be treated and
compensated in a fairly manner. Therefore, it can be said that HR manager should apply all
legislations while making policies related with human resources.
Managers of ALDI can increase the quality of its products by effectively applying the
concept of HRM. As this will help in satisfying the needs and wants of employees working in the
organisation and a satisfy individual do or give his best. By making ethical policies regarding the
management of workers and their compensation managers of ALDI can maximise the overall
performance of organisation.
REFERENCES
Books and Journals
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