HRM Practices and Organizational Performance

This assignment delves into the crucial relationship between Human Resource Management (HRM) practices and organizational performance. It examines various HRM practices, such as talent acquisition, training and development, and employee motivation, and their impact on organizational success. The analysis draws upon academic research and real-world case studies from diverse industries to provide a comprehensive understanding of how effective HRM strategies contribute to enhanced organizational outcomes.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 Purpose and the functions of HRM......................................................................................1
P 2 Strengths and weaknesses of different approaches to recruitment and selection. ..............2
TASK 2............................................................................................................................................4
P 3 Benefits of HRM practices for both the employer and employee.......................................4
P 4 Effectiveness of different HRM practices in organisational profit and productivity ...........5
TASK 3............................................................................................................................................6
P 5 Importance of employee relations in influencing HRM decision-making............................6
P 6 Employment legislation and the impact it has upon HRM decision-making......................7
TASK 4............................................................................................................................................9
P 7 Application of HRM practices in a work-related context.....................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Today, in competitive environment, every business organisation need effective workforce
to execute its activities and tasks to achieve goals in long term. There are different purposes of
human resource management like better productivity, effectiveness and maintain employees
which are applicable to workforce planning and their resourcing. Recruitment and selection
process help in choosing the most suitable candidate for company to perform a particular task. So
there are different approaches of them which have positive as well as negative impact on
business outcome in term of customer satisfaction and profit maximisation (Warner, 2014).
Human resource management practices benefit to employer and employees to achieve their own
individual goals. Organisational profit and productivity of employees can be raised by
effectiveness of HRM practices of business organisation. Company like Aldi which is a private
supermarket firm needs to maintain employee relations as they affect decision making of Human
resource management in long term.
TASK 1
P 1 Purpose and the functions of HRM
Human resource management is most important part of business organisation like Aldi
which is one of world leading grocery retailer having 7000 stores across 70 countries. Bering a
big brand in market, it has to mange its employees. Followings are some major purposes of it.
Purpose of HRM
 One of the most crucial objective or purpose of human resource management is to make
full use of workers to improve company performance.
 Proper management of employees is done to resolve any types of conflict among human
resource so that they will not feel unsecured at workplace.
 Another purpose of HRM is to uplift performance of employees so that they can make
their full efforts to execute their responsibilities in company.
 This aspect has a main purpose to satisfy different needs of employees like psychological,
self esteem and recognition to motivate them to work harder in future (Van De, Voorde
Paauwe and Van Veldhoven, 2012).
 Company uses human resource management to build strong bond between employees and
their team members.
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 There are different acts which are followed by HR manager to makes suer that no
employee is treated with partiality or any types of discrimination basis of colour, religion,
language or native place.
 Another purpose of proper management of employee is to establish sound and efficient
structure within company to provide best quality product and services to its customers in
long term. Thus there are many different purpose for which HRM is is used in busienss
organisation like Aldi.
Functions of HRM
 Managerial functions-As every employee is a an important asset for organisation, they
have to be managed in such a way that their more utilisation can be possible ion long
term (Thompson, 2011). These functions include planning of employees in which supply
and demand of all required employees in future for particular position in enterprise is
evaluated. Another managerial function is organising in which manager designs structure
to conduct various operations. Third function of HRM in this category is directing which
includes encourage employees to perform with improvement. Final function is
controlling in which all activities are regulated by HR manager to shorten the gap
between desired and real goals achieved.
 Operative functions- These are also important aspects which should be done by HRM.
They are related to integration, compensation, development and employment for
company. Maintenance of employee is also come in this category at workplace.
 Advisory function-these are regulated by human resource management to advise top
management for formulating and evaluating personal programs for employees to motivate
them. HR manager gives suggestion which are related to policies and procedures of
company. Thus there are many crucial functions which are performed by HRM to
accomplish organisational goals and objective of profit maximisation and revenue
generating with effectiveness and efficiency in long term.
P 2 Strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and selection process are one of the most important things at workplace of
Aldi (Snape and Redman, 2010). Being a leading brand in retail industry all over the world, it
has to select suitable and skilled employees to maintain its standard of product and services.
There are many approaches which are used in these process like internal, third party, interview
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and external sourcing. These techniques have their own strength and weakness for company as
followings.
Strength
 Main benefit of approaches of recruitment and selection process is that it scrutinise many
candidates to get the best one among them.
 Interview process in internal sourcing approach provides cost effective option for
advanced work within company.
 By applying different types of approaches in recruitment and selection process, company
can improve its product quality by utilising best talent of selected employee.
 Highly qualified and adroit candidates can be chosen through these approaches to avoid
any type of mistake in planning.
 When business organisation uses external approach, it has a huge number of options in
term of applicants (Rees and Johari, 2010). It provides a fresh talent as it is not in current
workforce of company.
 E recruiting approach benefits the enterprise by covering and connecting with unlimited
candidates all over world.
 When current employee is recruited on higher position for critical task, he gets motivated
through special recognition.
Weakness
 One of the major negative point of recruitment and selection process is that sometimes it
takes long time for manager to conduct search for right candidate for right designation.
They might use wrong tools which may lead unsuitable candidate for company in future.
So it it sometimes difficult to access effective employees.
 Companies which use only internal sourcing approach to select skilled workforce for
particular task and activity. This may limit chances to get then best person as ther are
fixed number of employees with certain qualities (Reddy, Estrin and Srivastava, 2010).
So it is considered as narrow idea to find the best people for work.
 When business organisation like Aldi uses external sourcing for selecting candidate, it
may increase cost as it spends expenses for getting data. This process is also a time
consuming which makes it less effective and slow for company. Unlike internal sourcing,
it takes money in term of advertising and marketing to invite applicants. Enterprise pays
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some amount to recruiter to seek candidate for it. Thus many recruitment and selection
approaches can hinder or foster growth of firm inn long as well as short term.
TASK 2
P 3 Benefits of HRM practices for both the employer and employee
Human resource practices play a vital role in proving different benefits to employees as
well as employer in Aldi company (Moideenkutty, Al Lamki and Sree Rama Murthy, 2011).
Being a leading company in supermarket, it gives many facilities or advantages to its employee
in term of money, reward and recognition to motivate them. Following are some advantages of
HRM practices.
Benefit for employer
 One of the most important benefit of HRM practice for employer is that they can monitor
all performance of employees and take appropriate actions if any drawback is found.
 It provides real outcome from workforce efforts whether they are beneficial for company
or not so that employer can make justified decision.
 It helps to analyse different factors which can affect business progress in long term to
accomplish organisational goals.
 Employer can control the gap between real and desired performance of human resource
for betterment of company.
 There are different rules which have to be obeyed and HRM practices provides
information about them like discrimination act, employment act and minimum wages act
(Katou and Budhwar, 2010). These are described in human resource management code of
conduct.
 Employer tries to create a healthy bond among workers so that they can feel familiar and
give their best to achieve company goals of profit maximisation and best quality product.
 For better performance, reward can be given and punishment or demotion can be done in
case of bad effort of employee.
 It benefits to employer to understand conflict among workforce and resolve them in time.
Benefit for employee
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 Human resource management practices make suer that policies and procedures related to
of enterprise are suitable for company strategic plan. Balance between workforce and
business strategy leads to a healthy environment so that workers can improve their
performance in long term.
 Another benefit of practices related to human resource management of Aldi is that it
creates camaraderie among employees to work together for company objective and add
value to it.
 Third benefit of HRM practices to workers is that they get all legal rights and facilit3esd
like minimum salary and insurance (Jose, Chiappetta and Jabbour, 2011).
 All employees are providing training and development so that their qualities can be
sharpen and their performance can be improved for long term.
 Their individual needs are fulfilled by human resource management practices so that
worker feel secured and valued at workplace.
 If any employee feel their right is being violated, then HRM practices helps to protect
them to boost their morale. Thus there are various benefits to employer firm as well as its
employees in many different ways.
There are different types of HR practices used by the enterprise in order to attain organizational
goals and target in an effective manner. These practices can be involving:
Workforce planning: This is one of the key aspects of HR where a company required to plan
their staff requirement in advance. For instance, ALDI plan to expand its business in to other
parts of the world in order to increase their market share and profitability.
Training and Development: It is essential for a company to maintain performance of their staff
which leads to sustain their business in the market. ALDI needs to identify weakness of their
staff and provide training on regular basis. It will help to increase efficiency and effectiveness
and gain competitive advantage in the market.
Employee relation: Every firm is required to maintain healthy relation with their staff which
very crucial for their long term success. It is responsibility of HR department is to solve various
issues of their employees. It will help to create a harmonious relation with them and generate
staff trust in the longer run.
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P 4 Effectiveness of different HRM practices in organisational profit and productivity
Human resource management practices are those activities and tasks which are done by
HR manager for welfare of employees. Effectiveness of them can be seen as satisfaction level of
workers which consequently benefit to organisation in term of profit ans productivity. Following
are some points which ca help in understanding effectiveness of HRM practices.
1. One of the most important practices of HRM is recruitment and selection which makes
sure that suitable candidate is chosen for company that will contribute in profit in future
(Huselid and Becker, 2011). This includes many efficient methods like direct interviews
and tests which helps in evaluating quality of candidate.
2. Another practice of HRM is training and development which helps employees to improve
their skills and improve it so that they can uplift standard of product and services of
company like Aldi which is a leading brand in grocery industry.
3. Productivity of workers is also increased by providing different motivational methods
like appraisals and rewards in term of money or other facilities. For example, promotion
in designation is provided to best employees in team.
4. Recognition and incentive are anther important practices which motivate worker to
maintain and improve their productivity to con tribute more in profit gain and capturing
position ion market in future.
5. Retirement system is also a major part of HRM practices in which company provides
different benefits to employee who retires from Job (Hendry, 2012). Effectiveness of this
process can be analyse by conducting survey within organisation. Being a large company
in retail sector, Aldi makes sure that its employee gets all benefits after giving his all
effort during the job at time of his evacuation.
6. Communication is also a main part of human resource management as it resolves various
conflicts among workers of firm. It also helps in making effective decision for better
productivity of company by improving quality standard of product to get maximum
customer satisfaction in long term.
7. Legal framework also play a vital role in maintaining a healthy environment at
workplace of Aldi by which effectiveness of HRM practices can be evaluated. For
example, sometimes employees face partially or discrimination which can down their
morale to work with enthusiasm. So to prevent this situation, many legal acts are implied
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by government authorities. Thus there are many aspects which helps in monitoring
efficiency of human resource management on employees as well as on company profit
and productivity.
TASK 3
P 5 Importance of employee relations in influencing HRM decision-making
Employee relations affects organisational goals and objectives in many ways as it can
hinder or foster the growth of Aldi (Giauque, Resenterra and Siggen, 2010). So it tries to make
harmony between employer and employees. Following are some explanation related to
importance of worker relationship in influencing human resource management decision-making.
 If employees have any types of conflict with each other, they might get demotivated
while working and their performance can be weaken Which will lead to loss of
productivity and revenue in long term in future.
 Trade unions in business organisation like Aldi helps to protect rights of workers which
makes them happy and they can work with each other with positive mind. They make
sure that there is no favouritism by company with employees. So every worker feels
equal ans important which motivates them to work more to generate quality in
productivity in future.
 Delegation of tasks provide opportunities to tech various things from superior officer as
guidance (Fratričová and Rudy, 2015). This well structured aspects acknowledges
strength and weakness of employees in which task are assigned and roles &
responsibilities are allotted with clear explanation.
 A harmonised relationship among human resource is also an important part of company
as it uplifts productivity of them which leads to more revenue generating by providing
quality product and services to customers and get their maximum satisfaction.
 Employee loyalty is an outcome of good connection among workers in business
organisation. For example, of a person feels like member of company and more satisfied
with work, he will be retained in long term
 A good team creates great strategic plans for achieving organisational goals of profit
maximisation and revenue generating.
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 A fully satisfied employee of form will make his efforts to make sure that his company
gets a lion share in market of retail,business in future. For example, if he is happy with
their peer and superiors then he can freely participate in important activities with positive
energy. Thus employee relationship is an inseparable factor which have a major impact
on growth of company s well its profit and productivity in long term.
P 6 Employment legislation and the impact it has upon HRM decision-making
Being a reputed firm in retail market, it has provides many different legal facilities which
help in protecting their rights at workplace (Delbridge, 2010). There are many acts which are
implied by legal and government authorities which can be described as followings.
1. Equality act 2010-This legal act is implied at workplace to treat all employees with
equality. They should be promoted or demoted on basis of their work performance. This
legal framework makes company to avoid any privilege to any worker.
2. Equal pay act 2010-This legal obligation establishes a justified scenario at workplace as
it provides equal distribution of pay to employees as per their performance. Aldi HR
manger makes sure that every worker gets same salary if others is on same designation
with similar task assigned.
3. Disability discrimination act 1995- No employer or other peer can treat differently to
any person at workplace due to his physical or metal disability as it can down his morale.
So this act enables human resource management to protect disabled person right while
working.
4. Sex discrimination act 1975- There are sometimes, when female employees are
provided less salary whether they are at same position and have equal skills like male
worker (Brewster and Mayrhofer, 2012). To prevent this types of discrimination, this act
is applied which crates positivity in all employees.
5. Employment act 2002-This act is an effective legal aspect which enables HR manager to
provide employees right in term of minimum wages and fixed working hours which
company has to follow.
6. Employment relation act 2004-This act is also an important framework as it makes suer
of string relationship among workers in company like Aldi. For example, good and
healthy terms leads to a positive environment and customers get best response from
employees who represent whole company in front of them.
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7. Health and safety at work act 1974-This act is implied by legal authorities on business
organisation like Aldi to make sure that every health risk is covered by company and
make suer that it provides a safe atmosphere to workers. For example, if any employee
gets injured from equipment at workplace then firm will be liable to compensate it. Thus
there are many rules and regulations which are to protect employees at workplace so that
they can contribute in company profit and productivity in long term.
TASK 4
P 7 Application of HRM practices in a work-related context
Aldi uses many human resource management practices to organise every activity and
tasks so that it can achieve its goals and objectives with accuracy (Bratton and Gold, 2012).
Recruitment and selection is also a major part of this. For selecting a suitable person with
specific skills, a job specification is very useful tool. For example, the mentioned business
organisation wants to hire a qualified marketing executive. Following is a format for position and
some important question which will be asked in personal interview.
Job specification
Marketing executive
Company name ALDI
Reporting to Marketing Manager
Skills required He should possess oustanding writtena and
verbal skills.
Focused and targeted.
A good team leader quality.
Fine communicator and a good strategy maker.
Innovative and aggressive in making plans for
better productivity.
Major responsibilities He will be responsible for a good market
research to predict demand.
Education qualification He must be a degree holder in marketing. For
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example, Master in Business Administration.
Following are some questions which will be asked in interview.
1. Tell me about a marketing campaign in which you were participated and it did go well.
2. Give an example when you completed an marketing activity with a shiort time limit.
3. Are you familiar with target market or not?
4. For our grocery product, would you make more effective marketing strategy to promote
it?
5. Have you use online marketing tools in previous campaign?
CONCLUSION
From the above report it can be concluded that workforce is a soul or foundation of every
company. To improve existing performance of company in term of product and services, HR
manager has to establish a balance among human resource. Aldi has to analyse some major
factors which can affect human resource management decision making related to employment
legislation. This is to protect worker rights so that they can put their full efforts in achieving
organisational goals and objectives in long term. Thus human resource management helps in
proper planning, training and development of employees to sharpen their skills which can be
used for organisational purpose.
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REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Arrowsmith, J. and Parker, J., 2013. The meaning of ‘employee engagement’for the values and
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24(14). pp.2692-2712.
Avey, J.B., Luthans, F. and Peterson, C., 2012. Impact of employees' character strengths of
wisdom on stress and creative performance. Human Resource Management Journal.
22(2). pp.165-181.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Brewster, C. and Mayrhofer, W. eds., 2012. Handbook of research on comparative human
resource management. Edward Elgar Publishing.
Delbridge, R., 2010. The critical future of HRM. Reassessing the employment relationship,
pp.21-40.
Fratričová, J. and Rudy, J., 2015. Get Strategic Human Resource Management Really Strategic:
Strategic HRM in Practice. International Journal of Management Cases. 17(4).
Giauque, D., Resenterra, F. and Siggen, M., 2010. The relationship between HRM practices and
organizational commitment of knowledge workers. Facts obtained from Swiss SMEs.
Human Resource Development International. 13(2). pp.185-205.
Hendry, C., 2012. Human resource management. Routledge.
Huselid, M.A. and Becker, B.E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jose Chiappetta Jabbour, C., 2011. How green are HRM practices, organizational culture,
learning and teamwork? A Brazilian study. Industrial and Commercial Training, 43(2),
pp.98-105.
Katou, A.A. and Budhwar, P.S., 2010. Causal relationship between HRM policies and
organisational performance: Evidence from the Greek manufacturing sector. European
management journal. 28(1). pp.25-39.
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Moideenkutty, U., Al-Lamki, A. and Sree Rama Murthy, Y., 2011. HRM practices and
organizational performance in Oman. Personnel Review. 40(2). pp.239-251.
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sensing data collections. In International Conference on Pervasive Computing (pp. 138-
155). Springer Berlin Heidelberg.
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of strategic organizational change: Case study evidence from a public sector banking
institution in Malaysia. Journal of Organizational Change Management. 23(5). pp.517-
536.
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Thompson, P., 2011. The trouble with HRM. Human Resource Management Journal. 21(4).
pp.355-367.
Van De Voorde, K., Paauwe, J. and Van Veldhoven, M., 2012. Employee well‐being and the
HRM–organizational performance relationship: a review of quantitative studies.
International Journal of Management Reviews. 14(4). pp.391-407.
Warner, M. ed., 2014. Confucian HRM in greater China: Theory and practice. Routledge.
Online
Ruth Mayhew, 2017.Six Main Functions of a Human Resource Department.[Online].Available
through:<http://smallbusiness.chron.com/six-main-functions-human-resource-
department-60693.html>.[Accessed on 23th June 2017].
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