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Human Resource Management 1
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Table of Content Contents Contents...........................................................................................................................................2 INTRODUCTION...........................................................................................................................3 Main Body.......................................................................................................................................3 P1 Purpose and functions of human resource management........................................................3 P2 Discuss the approaches of HRM with their pros and cons.....................................................4 P3 Benefits of HRM practice in perspective of both employer and employees..........................6 P4 Determine the effectiveness of HRM to raise profits.............................................................7 P5 Importance of employee relations..........................................................................................7 P6 Discuss elements of employee legislation..............................................................................8 P7 Discuss the application of HRM through examples...............................................................9 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................13 2
INTRODUCTION Human resource is considered as an asset in an organisation as it is a broader term that includesrecruitment,selection, training, performancemanagementand many more which involve making planning so that goal is attained within a shorter time (Ashton, Maguire and Spilsbury, 2016). This report is based on Aldi which is a retail chain as it deals with groceries, food products as well as household essentials which tends to satisfy the needs and criteria of customers across the globe. This report consists of scope and purpose of human resource management and it consist of internal and external factor that affect HRM decision making which raise profitability. Lastly it cover several legislations and application of HRM practice in relation to chosen company. Main Body P1 Purpose and functions of human resource management HRM is a process of management as it determine the need to recruiting the best candidate and tendstopolish theirskillswithapprenticeshipprogrammesasseveralelementsare considered such as creativity, knowledge, talent and potential for contributing towards business objectives (Bondar, Hsu, Pfouga and Stjepandić, 2017). The purpose of HRM is to fill the vacant position and apart from this it performs several other functions such as compensation, appraisal, training as it has become crucial aspect for any business enterprise. In respect to Aldi, the scope and function are as follows: Purpose of HRM Effective recruitment and selection strategy:The manager of Aldi would place more emphasise on hiring the right person at the right job in a proper time period.By recruiting the efficient person would provide the growth of a firm as it renders new and excellent ideas which ensure a vast success within the confines of retailing industry. Performance appraisal:The main motive of HRM is to appraise the performance of their subordinates so that they could work with greater efficiency and zeal and thus bring a desired 3
level of output in a workplace. The HR manager of Aldi would tend to recognise the efforts by sense of appreciation and providing them with financial incentives which encourage them to work hard and thus they reach their targets in a respective time period. Talent management:The senior authority of respective firm would tend to retain the attractive workforce as their constant efforts and wise decision making would generate the productivity and help in ensuring the growth of a firm with a set time frame. Functions of HRM Planning:This is first and foremost function of HRM in which the manager would make planning by deciding the best alternatives from the various course of action available so that goal is accomplished within specified time (Chen, Su and Zeng, 2016). The senior manager of Aldi would form an appropriate strategy as it would make plan so as to facilitate better decisions as it ensure long term growth and sustainability for a long term. This accelerates the firm to avoid uncertainties and aids in setting standards which maximise their performance. Organising:the manager of Aldi would organise the work in a most systematic manner and delegate the task as the supervisor would divide the work among their subordinates in accordance of their talent and skills which promote specialisation and increase their level of job satisfaction and thus improve their morale. By allocation of resources in an efficient manner would assist in eliminating overlapping of activities which depict transparency in a workplace. Effective training:The training and development programmes is essential as it help in building skills and knowledge level of employees and develop confidence and determination among them. The manager of Aldi would render on the job training to their staff so that they could accept the changes and could handle sophisticated machines which maximise their skills and improve their knowledge level as ensure a greater path of success in their career. Therefore, there is greater scope of HRM in a corporate world as it performs numerous function which renders an effective growth and ensure sustainability in a long term. P2 Discuss the approaches of HRM with their pros and cons There are two approaches of human resource management, namely recruitment and selection as these are detailed below: Recruitment:It is the process of searching a prospective candidate as the respective position is filled for an appropriate role (Dipboye, 2017). There are of two kinds that is internal and external source of recruitment. 4
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Internal source:The HR manager of Aldi would conduct internal hiring so that it could place them for higher authority with additional responsibilities. It can be in the form of promotion and transfers which provide a greater success in their career and provide an opportunity to candidate to grow. StrengthWeakness It is considered as less costly method as no expenditureisincurredontraining programmes. This boost the confidence of existing staff as they work in a efficient manner so that such opportunity could be grabbed. There is reduction in scope of fresh talent as their capabilities and skills are not taken into consideration. It is limited as no new ideas would be provided in an organisation. External source:The manager of Aldi would consider outside employees to fill the respective position as this method is preferred when there is search of new talent. Also, this provide an opportunity to them as they aware of technical awareness and are creative in nature. StrengthWeakness This method would develop competitive spirit as new employees are competed by existing staff which enable better performance. The manager got wider options to choose from which is one of the greatest strengths. It is time consuming and costly process as expenditure is incurred on rendering training them with sophisticated machines. Sometimes, new staff does not get adjust into new environment which lead to more turnover. Selection:It can be understood as the process in which position is filled by a suitable candidate which is most crucial step of HRM (Gallie, 2017). The manager of Aldi would conduct several interview and medical examination test so as to assess the ability of individuals which ensure a systematic working procedure in a workplace. StrengthWeakness Throughinterview,themanagercould determinethebehaviourandgetbetter knowledge about them. Selection of efficient employee would aid the Sometimes,thereischancesthatcompany losses the most efficient employee. There could be biasness in selection procedure which may hamper their performance. 5
company to ensure growth as their talent is utilised which proves to be beneficial. P3 Benefits of HRM practice in perspective of both employer and employees The practice of human resource provides advantages to both employer and employees which provide a better environment and thus ensure effective relation among them. In relation to Aldi, the same are given as follows: Benefits of employer: Learning and development programme:The manager of Aldi would render specialised training to their staff so that employee’s performance could be enhanced as this develop positive attitude and confidence among them (Mahadevan and Kilian-Yasin, 2017). Employees know what is expected from their employers so they would work beyond their potential so that targets could be attained within a shorter time period which prove to be advantageous for firm like Aldi. Effective relation with employees:By making a formal relation with their staff would help them in solving their problems and listening their grievances as this ensure long term growth and sustainability. This promote a harmony in a respective firm as employees would feel satisfied and gain maximum productivity. Benefit of employees: Training and development:The leader of Aldi would provide training with proper guidance among their employees so as to make them capable of accepting challenging roles and obligations. This help in boosting their self-confidence which tends to avoid hesitation and thus provide a superior growth. Performance management:In this, the performance of employees is determined on the basis of their results. The manager of Aldi would provide several financial and non-financial benefits such as compensation benefits, monetary aspects, rewards and appreciating their efforts which enable employees to work hard so that such benefits could be availed. This ensure positive attitude which aid employees to improve their performance and work in a most effective manner so that desired results could be attained (Marchington and et.al., 2016). Proper work life balance:If there is proper work life balance promoted then employee would highly feel satisfied as they could ensure more productivity. Improper work life balance lead to more stress which tends to reduce their creativity as they could feel excessive workload 6
and thus affect their overall performance and this led to high turnover. There is proper balance in work and personal life in case of Aldi which make their co-workers to feel satisfied and help in retaining the for a longer time period. P4 Determine the effectiveness of HRM to raise profits Use of effective HRM practice in a systematic manner would promote transparency which determine the level of growth and depict fairness and transparency (Noelke, 2016). The manager of Aldi would determine the use of HRM practice through following ways which raises profits: Promote open atmosphere: The senior manager of Aldi would tend to promote an open atmosphere as it tends to render a best solution of complexities so that fast decision could be taken. It also invites employees to provide their suggestions and innovative ideas which assist the concerned firm to ensure prospects of growth and thus build a greater culture and cooperation. But it could lead to delay in decision making and thus lead to delay in undertaking the overall activities of an organisation (Ployhart, Schmitt and Tippins, 2017). Team building skills:The leader would promote a peaceful environment as it provides equal opportunity to their team members to express their views and opinions so that better decision could be taken. The leader of Aldi is highly influential in nature as it tends to listen their staff properly as it makes use of HRM practice more efficiently which improve the overall productivity. But at the same time, due to change in opinions and language barriers would result in arise of conflicts and disputed which hamper their performance. Excellent training programmes:In a dynamic environment, the leader would provide great training to their subordinates so that they could get knowledge regarding the transformation taken place and also, they would be aware of new and advanced technologies as this ensure a reasonable level of growth to an ultimate level. The manager of Aldi would ensure that they could work with greater efficiency by contributing towards their best so that their performance could be enhanced (Rees and Smith, 2017). It is time consuming procedure which require several formalities and also heavy expenditure is incurred on it. P5 Importance of employee relations Employee relation is the process of creating mutual relation among both employer and employee as this involve proper and fair treatment to employees in order to generate greater 7
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loyalty (Roth and et.al., 2018). With reference to Aldi, the significance of employee relations is prescribed below: Employee engagement:The leader of Aldi would continue engage their staff by making continuous update which involve sharing of information as it promotes open communication so that issue could be identified and tackled properly. The manager of a respective firm would involve the participation of employees and encourage them in decision making procedure as they would feel that they have worth in a workplace and make them delighted. Boost productivity:The manager of Aldi would assign them task in such a manner that their skills matches to their work and provide several monetary benefits to them as this prove improve their overall performance. They promote a unity of command and follow the principle of authority and responsibility which help in accomplishment of goals successfully. This in turn maximise the level of productivity and provide an utmost growth of a firm in retailing industry. Employee retention:The senior manager of Aldi would consider employee relation as the most crucial aspect so that it could minimised the turnover of employees. The staff of Aldi are highly efficient and trained as they are provided with several benefits such as promotion, bonus and paid leaves and so on which ensure that they are satisfied (Sarvaiya, Eweje and Arrowsmith, 2018). This boost the morale and motivation of employees which provide greater degree of accuracy to them. Furthermore, this improves employee retention and ensure greater transparency in a workplace. Also, the manager would abide all rules and regulation and follow all laws and legislation that promote the interest of workers and thus boost their satisfaction level. Employee empowerment:In this, the manager of Aldi would give certain degree of freedom or autonomy to their workers which assist firm in achieving their targets in a shorter time period. The top authority of concerned firm would understand the vision and mission of company which is possible through effective communication strategy so that they could work with their level best which contribute greater success. Manager tends to trust their staff so that better atmosphere could be provided as this ensure reasonable growth. P6 Discuss elements of employee legislation Severallawsand legislationsplayan importantrole whichdeterminetheoverall functioning of business entity as the manager abides all rules and regulations in a systematic manner which improve the overall operations of a corporation (Scullion and et.al., 2016). The 8
HR of Aldi ensure that they abide all policies and procedures which facilitate smooth conduct of activities as they tend to manage the overall working procedure in an efficient manner. In respect to Aldi, the several laws and legislations are described as follows: Equality act, 2010:This law deal with promoting the equality in a workplace so that the practice of discrimination is eliminated. The manager of Aldi would abide such law by promoting the interest of workers as equal opportunity must be provided to men and women in terms of equal pay and so on. The HR would design their policies in such a manner so that effectiveness could be gained and thus promote a positive atmosphere. Health and safety law, 1974: Thislegislation is used by manager of Aldi to promote safe and secure environment to their workers so as to ensure welfare. They provide several safety measures necessary toolkit to them which ensure sustainability and utmost confidence among them. Also, the HR manager of a concerned would form a strategic planning and organise the work more appropriately which bring proper delegation and thus improve the overall efficiency. Data protection act, 1998:This element deal with rendering highly protection of personal details of employees such as their contact number, address, bank details and so on. The manager of Aldi maintains confidentiality of such information so as to build their trust as leakage of personal information would break their performance and this affect the brand image. The HR manager has to be careful and provide several intellectual rights and take necessary action so as to prevent such misuse of information. The HR manager would tend to design policies in a most appropriate manner so that better output could be gained. The manager would follow all laws so as to maintain effectiveness and fairness while facilitating smooth conduct of activities. P7 Discuss the application of HRM through examples The human resource manager of Aldi would hire a candidate for the position of HR assistant but for this candidate must possess several skills and good knowledge level which determine the overall efficiency as it help in attainment of targets within set time frame (Storey, 2016). Job description:This document is prepared which consist of all necessary details related to job as it describes the nature of job and skills which must be possessed by candidate. In respect of Aldi, the same is given beneath: Job Description 9
Name of Company:Aldi Division:Human Resource department Job title:Human resource assistant Location:London, United Kingdom Summary The manager would have vacant position of HR assistant as it must have good command over English and must be responsible for managing and carrying the task. They have to be discipline and punctual and must have ability to render an effective solution to their subordinates. Role of Job Must abide all regulations and policies of company Should conduct induction programmes Assist in recruitment procedure Maintain proper record of employees Person specification:This is a formal document which involve several skills and criteria that an individual must possess. It is given below: Person Specification Name of organisation: Aldi Job title:HR Assistant Qualification:MBA Essential criteria: oProblem solving skills oGood command over English oQuick Decision-making ability Desired criteria: oMinimum three-year experience oAffluent verbal skills oAttractive personality 10
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Interview Questionnaire document:This is a process in which interviewer tends to ask several questions from interviewee so as to determine the ability of individual as the way they are answering for questions. Interview Questionnaire: 1)Tell me about yourself. 2)Describe your previous job experience. 3)Where do you want to see yourself after five years? 4)Provide a situation when you experienced conflict and how you deal with it? Offer letter:This is the final step in which letter of appointment is provided which consist of several details such as probation period, hours of work, salary, pay allowances, working hours and so on. Offer letter Date: 20 June 2020 Name: Shreya Address: 34, Blue Ocean, United Kingdom Dear, We would like to congratulate you on having fared so well in the interview process and for having made a definite impression in the minds of those who have interacted with you during the interview process. We believe that you will contribute along with our team of highly dedicated and motivated professionals. A short synopsis of our conversation is underneath: Date of joining: 1 August 2020 Designation: HR Assistant Reporting time: 9:30 am Working days in a week: 6 days working Thanks and regards, Mr. ABC HR manager 11
CONCLUSION From the above information, it can be comprehended that human resource is most important element which ensure that hiring the right person would render an opportunity to a firm to grow. Various functions are performed by HR such as planning, organising and directing the overall activities by judging the accuracy of standards. Several laws and legislation such as employment laws, food and safety laws and data protection act has been discussed in this report. 12
REFERENCES Books and Journals Ashton, D., Maguire, M. and Spilsbury, M., 2016.Restructuring the labour market: The implications for youth. Springer. Bondar, S., Hsu, J.C., Pfouga, A. and Stjepandić, J., 2017. Agile digital transformation of System-of-SystemsarchitecturemodelsusingZachmanframework.Journalof Industrial Information Integration.7. pp.33-43. Brewster, C. and Hegewisch, A. eds., 2017.Policy and practice in european human resource management: The Price Waterhouse Cranfield survey. Taylor & Francis. Chen, L., Su, Z.X. and Zeng, X., 2016. Path dependence and the evolution of HRM in China.The International Journal of Human Resource Management,27(18), pp.2034- 2057. Dipboye, R.L., 2017. The selection/recruitment interview: Core processes and contexts.The Blackwell handbook of personnel selection, pp.119-142. Gallie, D., 2017. The quality of work in a changing labour market.Social Policy & Administration. 51(2). pp.226-243. Mahadevan, J. and Kilian-Yasin, K., 2017. Dominant discourse, orientalism and the need for reflexive HRM: Skilled Muslim migrants in the German context.The International Journal of Human Resource Management,28(8), pp.1140-1162. Marchington, M., and et.al., 2016.Human resource management at work. Kogan Page Publishers. Noelke, C., 2016. Employment protection legislation and the youth labour market.European Sociological Review.32(4). pp.471-485. Ployhart, R.E., Schmitt, N. and Tippins, N.T., 2017. Solving the Supreme Problem: 100 years of selection and recruitment at the Journal of Applied Psychology.Journal of Applied Psychology.102(3). p.291. Rees, G. and Smith, P. eds., 2017.Strategic human resource management: An international perspective. Sage. Roth, S., and et.al., 2018. Multifunctional organisation models.Journal of Organizational Change Management. Sarvaiya, H., Eweje, G. and Arrowsmith, J., 2018. The roles of HRM in CSR: strategic partnership or operational support?Journal of Business Ethics.153(3). pp.825-837. Scullion, H., and et.al., 2016. Talent management.Employee Relations. Sharma, R.C., 2016.Industrial relations and labour legislation. PHI Learning Pvt. Ltd.. Storey, J., 2016. What is Strategic Human Resource Management? 13