Benefits of HRM Practices in ALDI

This article discusses the benefits of HRM practices within ALDI for both employers and employees. It highlights the importance of providing a safe workplace environment, fair compensations, and training and development opportunities.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and function of HRM in relation with workforce planning and resourcing.............1
M1 Assessing the role of HRM functions in providing talent and skill which assist in fulfilling
business objectives......................................................................................................................2
P2 Explaining strengths and weaknesses of approaches to recruitment and selection...............3
M2 Analysing strengths and weaknesses of different approaches to recruitment and selection
chosen by ALDI managers..........................................................................................................5
D1 Critical evaluation of strength and weaknesses of different approaches of recruitment and
selection.......................................................................................................................................5
TASK 2............................................................................................................................................5
P3 Analysis of benefits of HRM practices within ALDI for both employer and employee.......5
P4 Evaluation of effectiveness of various HRM practices in relation with increasing profits of
ALDI...........................................................................................................................................7
M3 Examining different methods of HRM practices used by ALDI..........................................7
D2 Critical evaluation of HRM practices and application within ALDI....................................8
TASK 3............................................................................................................................................8
P5 Analysing the importance of employee relation in context of influencing HRM decision-
making.........................................................................................................................................8
P6 Identifying key elements of employee legislation and their impacts on HRM decision-
making.........................................................................................................................................9
M4. Evaluation of the key aspects of employee relations and also legislation in the decision
making of an organisation.........................................................................................................10
TASK 4 .........................................................................................................................................10
P7 Illustrating the application of HRM practices in work related context................................10
M5 Provide a rationale for the application of HRM practices..................................................11

D3. Critically evaluate the employee relations and practices of HRM which influence the
decision making of HR..............................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Human resource is the significant function of an organisation as it is useful in order to
improve the performance and morale of employees. They also create positive working conditions
for employees in which they can work in a flexible manner and provide healthy working
atmosphere to them. Every organisation need human resource department in order to grow in the
dynamic business environment as it is important for employees to identify the skills and abilities
to improve their performance. In HRM, various responsibilities include such as recruitment and
selection, performance appraisal, training and development etc. to retain their employees in an
organisation for longer period of time (Armstrong and Taylor, 2020). Therefore, in the
development of company and employees both HR manager plays a significant role in order to
bring them to the next level of an organisation. In this report functions of HR is defined and
various methods of recruitment and selection is identified. In addition to this HRM practices are
mentioned and their benefits for both the employees and employers are justified. Different
legislations of HR is described in order to smoothly run the working of ALDI which is the
common supermarket chain which is owned and operated by German family and has around
10,000 stores in 20 countries.
TASK 1
P1 Purpose and function of HRM in relation with workforce planning and resourcing
Human Resource Management (HRM) is defines as a formal system which is used by the
HR managers of an organisation in order to manage staff and potential human resources. HRM
main purpose is to maximise the productivity of employees in order to make optimal use of
human resource present in the entity and indirectly increase the efficiency. Human resource
management is a strategic approach which is used in order to enhance and improve the
performance of employees effectively so that long-term objectives of organisation can be
achieved (Hitka and et. al., 2018). The main duties which are involved in HRM and which are
performed by HR managers are related to recruiting and selecting workforce, direct them
towards organisational objectives and control them effectively. HRM has different roles and
functions for achieving various purposes which are described below in context of ALDI: Human Resource planning- First and foremost role or function which HR managers of
every organisation plays is of planning human resource structure on behalf of company.
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This human resource planning is done in accordance with the needs and requirements of
the company and for which managers have to conduct thorough study. HR managers of
ALDI also perform this action for bringing and filling all vacant position in company
with potential staff and human resource. Human resource planning is dependent on the
size of the entity and in relation with the nature and structure. Recruitment and Selection- Once planning is done and human resource needs of
company is identified by the HR managers than the process of recruitment and selection
takes place. This process of recruitment and selection is very crucial and essential,
including various stages and very expensive in nature. The purpose of performing this
function is to attract and select all potential workforce in order to execute all plans and
strategies developed by the top level management (Chelladurai and Kerwin, 2018) . Training and Development- After recruitments are done successfully and potential staff
is acquired by managers as needed by organisation. Now, managers need to introduce
them to the company, its operations, environment and the aims and objective. For
performing this function they have to conduct training and development programs for the
recruit staff in order to increase their knowledge and skills. ALDI managers will also
conduct different training sessions for the new appointed staff in order to increase their
knowledge and development programs are conducted for the existing employees.
Development programs are provided by company to workforce for creating better skills
and updating the knowledge of personnels.
 Rewards- Once all functions are performed now HR managers role is to give rewards to
employees on the basis of their performances. This function is very important as it is
necessary for organisation to retain skilled staff with them for longer period of time and
that is done by providing them effective compensations and rewards (Collings, Wood and
Szamosi, 2018) . The purpose of this function is to motivate workforce in order to give
their best and work willingly with utmost potential by providing them appropriate
rewards which positively motivates all employees.
M1 Assessing the role of HRM functions in providing talent and skill which assist in fulfilling
business objectives
HRM is a very crucial activity which involves various function and all those functions are
explained and elaborated in above section. These functions which HR managers of ALDI will be
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performing provide all existing and new appointed staff various talents and help in improving
their skills (ERWIN, ABUBAKAR and MUDA, 2018). Trainings are provided to new
employees which gives them clarity about the organisation, how it works and what exactly is
expected out of them. Development programs which are conducted with aim of updating the
skills of existing workforce and making them more effective. All these actions which enhance
the expertise each employee is holding and practice them in organisation which will help it to
attain all predetermined objectives and goals more effectively and effectively. Also, better targets
can be achieved by the entity enabling it to attain more powerful position in marketplace.
P2 Explaining strengths and weaknesses of approaches to recruitment and selection
Recruitment and selection are two separate process which HR managers of ALDI
performs in order to bring the best talents and skilled labours in organisation. Recruitment is a
process of creating a pool of skilled and favourable candidates from which selection can be done.
This a method having positive nature and involves various ways in order to complete recruiting
best potential candidates (Anderson, Fontinha and Robson, 2019). Once, recruitment actions are
done than selection process starts which is a negative process. Selecting is picking most efficient
and potential candidates from the pool of people which are required by the company and fulfil all
the needs. HR managers opts various measures for recruiting and selecting which has their
strengths and weaknesses.
RECRUITMENT
Internal recruitment is refers to the situation when HR mangers looks for recruiting staff
internally by promoting and transferring existing employees to fill vacant position. In other
words, it is basically fill post from existing workforce.
Strength:
1. This a cost effective method, as it involves very low cost and less complicated procedure
of recruitment.2. Internal recruitment enables a tool of motivating staff and workforce by promoting them
and giving them higher position. This ways employees get their encouragement to work
harder and with their full potential.
Weakness:
1. The limitation of internal recruitment is it stops the inflow of new ideas and skilled staff
members and limits the number of potential employees in the organisation.
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2. By promoting or transferring employees from one post to another creates vacancy for
another position and creates rigid environment in company.
External recruitment refers to process of bringing new talents in organisation and filling
vacant positions with new and fresh talented candidates from the outside. This is more effective
way of recruiting and brining better candidates in company and making the workforce more
stronger and efficient.
Strength:
1. More skilled and experienced staff is brought towards the company proving more value
to it and making workforce stronger.
2. Fresh and updated knowledge and ideas starts flowing in the company which render
better understanding of marketplace.
Weakness:
1. External recruitment is more expensive and time consuming method which is very
complicated and complex to conduct (Stewart and Brown, 2019).
2. This process may not be competent enough for selecting the best candidates and potential
employees.
SELECTION
Online applications, through this method the interested candidates apply for the vacant
position through online medium. The candidates needs to fill a application form which contains
several questions and about the personal and professional skills of the person.
Strength:
1. It enables managers to collect all personal and professional details of the candidate at
once without nay mistakes and misunderstandings.
2. Through online applications it becomes easy for managers to sort and screen different
candidates according to the need of the company.
Weakness:
1. It is a very costly procedure and includes huge amount of investment in developing the
online resources (Kanki, Anca and Chidester , 2019).
2. It also, sometime irritating for some people to fill the forms which stops potential
candidates to move towards the organisation.
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Interviews are conducted of the screened candidates who are sorted by the mangers from
online applications and enables according to their skills. This interviews contains several
questions which are asked by the interviewer to analyse and evaluate the skills of the candidate.
Strength:
1. Through interviews it becomes easy and allows interviewer to assess and analyse the
whole personality of the candidate.
Weakness:
1. The time duration of interview is short which is not enough for interviewer to conduct
thorough analysis and for candidates to show all their skills and talents.
M2 Analysing strengths and weaknesses of different approaches to recruitment and selection
chosen by ALDI managers
All the different approaches which are used by ALDI, HR managers of recruiting and
selecting are appropriate for the company (Morgeson, Brannick and Levine, 2019). But they
possesses some strengths and weaknesses which hinder and foster the objectives of company.
External recruitment is a better technique for ALDI, as it will allow it to acquire more and better
candidates. These candidates will bring new and fresh ideas in the company and adding more
value to the operations of ALDI. Although, it is complex methods involving huge costs and
crucial stages, but it is more effective for the organisation. Also, for selection interviewing the
candidates is better way of appointing potential staff.
D1 Critical evaluation of strength and weaknesses of different approaches of recruitment and
selection
Recruitment and Selection both the techniques are very basic to HRM, these are very
sensitive and involves strict monitoring and supervision. Recruitment can be done from internal
and external sources depending upon the need and nature of the company. For ALDI better
method is external recruitment and bringing fresh talents towards the company. This involves
various stages such as screening, evaluations of candidates and providing training etc. It refers to
the process of attracting, screening and selecting the best and potential employees (Sheng and
McDonough, 2019).
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TASK 2
P3 Analysis of benefits of HRM practices within ALDI for both employer and employee
HRM practice are set of tools and techniques which are used by HR managers or some
actions which are taken by managers universally. Some HRM practices are also undertaken by
the HR managers of ALDI which are useful and effective for the company. Theses practices are
explained below and their benefits are also highlighted in context of employees and employers.
Providing safe and secured workplace environment- This is is the first HRM practice
which needs to be performed by ALDI managers to manage motivate staff. Every employees
expects a safe environment to work in and a secured place where there is no harm to their mental
and physical health (Rigby and Ryan, 2018).
Employee benefit: It is beneficial for staff too as they get a positive environment in
which they can work with their full potential and develop better skills and talents which stays
with them for lifetime.
Employer benefit: Creating a healthy and safe workplace environment will ensure that
employees are stuck with company for longer duration and which reduced the employee turnover
ratio of ALDI.
Fair and performance based compensations- Next, very essential HRM practice is
giving compensations to workforce. But, HR manager should make sure that these
compensations which are providing to employees are based on their performances and activities
they are performing in order to fulfil organisational goals.
Employee benefit: When everybody is treated the same way and rewarded regularly it
will rise the will in employees to work appropriately and stick with company for longer period.
Employer benefit: These compensations and rewards which are awarded to employees by
ALDI, motivates them and satisfies their needs (Huemann, Keegan and Turner, 2018). Different
individuals have different motivating factors and for enhancing their performance rewards plays
a vital role.
Training and development- This is very important and essential practice which needs to
be performed by HR managers of ALDI. They conduct training programs for the employees in
order to improve their skills and knowledge and encourage them to use best ways and practices
while executing plans of organisation.
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Employee benefit: Render employees to develop better expertise which are helpful to
them in present and these skills will stay with them for longer period.
Employer benefit: ALDI, will be having the best employees which are motivated enough
and holding utmost expertise which enables company to attain competitive advantage over others
in market.
P4 Evaluation of effectiveness of various HRM practices in relation with increasing profits of
ALDI
All those HRM practices which are used by managers of ALDI while managing staff and
appointing more people, it enables the company to more units of profits and be more productive.
Some of the factors which are involved in these practice are mentioned and discussed below:
Increases the productivity of ALDI- At the time of recruiting and selecting candidates
which are suitable to the organisation, increasing the productivity of company and adding value
to it is one element which is considered. From all the different HRM practices such as providing
training and conducting employee development activities will enhance the skills of employees
which automatically will adds value to company. The workforce will work more potentially and
render better services to company (Boon and et. al., 2018). They perform all assigned tasks and
duties with more expertise, practising better knowledge and applying more effective skills, by
which productivity is maintained and even increases of ALDI.
Increases the profits of ALDI- This is another factor which is kept in mind by HR
managers while practising different HRM activities in order to manage staff and providing best
to entity. Earning profits is the main aim and objective of all organisations which are performing
activities and rendering various goods and services to marketplace. The human resource are the
backbone of ALDI and even all entities and satisfying needs of workforce and motivating them
effectively by using best practices and performing action in their favour will encourage staff
(Samson, Donnet and Daft, 2018). The workforce will be working more effectively and
willingly, they serve their best to the company and stay with it for longer duration which will
improve the employee retention ratio and automatically have positive impacts on the profit units
which ALDI is earning.
M3 Examining different methods of HRM practices used by ALDI
HR managers of ALDI uses various practices to manage personnels and recruit new staff.
All these actions which is undertaken by management will assist ALDI in enhancing their
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productivity and number of profit units they are earning. Therefore, it is very important that HR
managers choose their HRM practices very carefully and after analysing all the needs of the
organisation. Training and development is one of the practice which is performed, in which
training secessions are conducted for all the new joining staff for addressing their queries and
providing them better understanding of ALDI. Also, development programmes are conducted for
existing employees in order to update their knowledge and improve their skills. Therefore, HRM
action which managers undertakes are very essential to motivate staff and making them with
their full potential.
D2 Critical evaluation of HRM practices and application within ALDI
On the basis of above analysis of unique HRM practices which can be used by ALDI
managers to motivate workforce and manage them effectively. It is very clear from above
discussion that all these actions works in favour of the entity by adding value to company and
enabling it to be more productive and earning better profits (Tang and et. al., 2018). These
actions are beneficial for both the organisation and the employee or workforce. As new talents
and fresh ideas flows in the company improving all the operations which company is performing.
Also, employees gets the benefit as they get to learn new things and acquire more expertise
which will enhance their skills and support them in future. Therefore, HRM practices which are
used by management works in their favour of firm and employees both benefiting both the
parties.
TASK 3
P5 Analysing the importance of employee relation in context of influencing HRM decision-
making
Employee relation refers to the efforts which are made by both the personnels and the
management in order to develop and maintain good relations with one another and having a
health environment of work. In other words, employee relations are the attempts and which are
made by personnels and managerial staff for having good relationships with one another.
Employee relations and healthy work atmosphere in company is the foremost requirement which
will drive company towards success and growth. Strong employee relations will result in high
performance of workforce, as they always be motivated and feel important and consider
themselves as an essential part of organisation. Another outcome of effective employee relation
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will be increased and improved productivity of company. Therefore, maintaining good employee
relation is must for ALDI for benefit of both the entity and the workers. Importance of employee
relation are as follows:
Reduction in conflicts- The management works at upper level who develop all the plans
and strategies for ALDI. Employees and workforce are the once who execute all the plans in
order to attain organisational objectives and fulfilling all predetermined goals. So, effective
communication is required between the management and workers which will enable them
communicate all the tasks and requirement properly to personnels (Longoni, Luzzini and Guerci,
2018). For having effective communication it is compulsory to have good employee relations in
so that less conflicts will be there amongst the management and staff and resulting in completion
of all work in time along with acquiring effective results.
Improved level of engagement of employee- It is important and responsibility of
managers to increase engagement of employees in organisation. This will motivate staff and
make them feel and important member and part of the company. Once employee are feeling
important and motivated they automatically start getting more involved in the operations, serve
better and present their viewpoints in from of managers. This will bring and flow new and fresh
ideas in the company which can be very beneficial and effective for ALDI. More engagement of
employee and openly suggesting ways and ideas for improving practices of organisation will
only be possible when good relationship is exist between personnels and management.
P6 Identifying key elements of employee legislation and their impacts on HRM decision-making
Employee legislation are the laws and regulations which are established by government
for protecting the rights and benefits of individual employees. These divers elements of
legislation and laws which are concerned about workforce are governed and supervised by
political authority. All these legislations are compulsory for organisations to follow and HRM
decision-making is also affected by it (Meyer and Xin, 2018). The HR managers of ALDI also
have to keep these regulations in mind while appointing staff and making policies related to
workforce management. Few employment legislation which are implemented by HR managers
of ALDI are as follows:
Sex Discrimination Act, 1984: This act is for protecting the rights of employees and
rendering them workplace which has equal opportunities for all staff members and no
discrimination is done on the basis of their gender. Manager of ALDI made various decisions in
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order to remove gender discrimination from the environment of their organisation and provided
equal opportunities to employee having same level of expertise and experiences who are
performing with equal competence. There were no discrimination taking place in ALDI between
female and male staff, even if at some point employees feel ignored or less important they can
freely communicate this to their superiors and proper measures are taken in relation with the
same.
Health and Safety Act, 1974: This act states that an entity is entitled to and have an
obligation to provide all safety addition to security concerns to workforce at all time. ALDI
managers have kept this legislation in mind and in relation to it, they have kept all equipments
which are necessary to be there in an organisation in order to protect the health and provide
safety to personnels working in company (Järlström, Saru and Vanhala, 2018). HR management
decisions are affected positively with application of this legislation as healthy working
environment is created for staff.
M4. Evaluation of the key aspects of employee relations and also legislation in the decision
making of an organisation
From the above discussed legislations and benefits of the relations of employees it is
examined that ALDI use appropriate legal standards and suitable approaches in developing the
relations of employees which is used in increasing the performance and productivity of
employees. It terms of employee relations, it include various components which helps in
increasing the productivity of an organisation, useful in retaining the talented employees and
motivate them for the prosperity and growth of the company. In addition to this, it has various
drawbacks which can create many barriers in the communication which can negatively impacts
the decision making of HR manager.
TASK 4
P7 Illustrating the application of HRM practices in work related context
Person specification is a document which contains the skills, qualifications, knowledge
and other attributes which are required by the company in a candidate who is applying for the
specific vacant position (Papa and et. al., 2018). The requirements which are addressed in person
specification must be possessed by the candidates in order to perform the roles and
responsibilities assigned to them and fulfil all their tasks and duties.
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PERSON SPECIFICATION
Job Title: Store manager
Description: Store managers job is a very crucial role to perform involving huge
responsibilities and attentiveness. Store managers play vital role in making the operations
effective and moving the store towards accomplishing all aims and objectives.
Reporting to: Administrative Manager
Essential Attributes:
 Effective Communication skills Best knowledge in managerial field
Desired Attributes:
 Best knowledge of management Team and time management skills
Qualification:
 Bachelor's degree in management
 Post graduation degree in management and business ethics
 Certificate in computer knowledge and skills
M5 Provide a rationale for the application of HRM practices
From the preceding section, HRM practices is examined and their efficiency is described.
Additionally, person specification is made for the specific role which carry lot of details about an
individual such as their qualification, desired skills and essential skills and many more. Person
specification is a document which carry some information about an individual (Moutinho and
Vargas-Sanchez, 2018) . Moreover, it also describe the advantages and disadvantages of using
external recruitment methods which is useful for the HR manager of ALDI.
D3. Critically evaluate the employee relations and practices of HRM which influence the
decision making of HR
By considering the preceding information, employees relations helps in order to eliminate
the conflicts and improve the involvement of employees in an organisation. This relation is
useful in improve the communication and development of various ideas among the supervisors
and workforce of ALDI. It is applicable on the company by analysing the benefits of HRM
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practices for company in order to attract more and more employees which is helpful in
improving the revenues as it positively impacts the decision making of HR.
CONCLUSION
The above report is based on HRM and its different practices which are used by the
organisation to manage its workforce in an effective manner and make them work with their full
potential. HRM is a very critical and time consuming process which includes various actions and
practices for motivating staff. Recruitment and selection process are the main actions which are
performed by HR managers of company for bringing the best talents and expertise in the
environment of company. These actions which managers perform have their strengths and
weaknesses which benefits them in accomplishing all goals. HRM practices have huge influence
on the decision-making of managers which helps them to take better decisions and make the
operations more efficient and profitable by increasing the productivity of company.
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