Human Resource Management and Performance

This assignment provides an in-depth analysis of human resource management and its impact on performance. It includes a list of relevant articles, journals, and online resources that discuss the importance of HRM in various contexts. The articles cover topics such as strategic human resource management, high-performance HR practices, and the role of HR in organizational resilience.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Main purpose and functions of HRM....................................................................................1
P2 Weakness and strengths of different approaches of recruitment and selection.....................3
TASK 2............................................................................................................................................4
P3 Benefits to employer and employees from the practice of HRM..........................................4
P4 Effectiveness of HRM practices in raising profits of organization........................................5
TASK 3............................................................................................................................................6
P5 Importance of employee relations in affect decision making process of enterprise..............6
P6 Key legislation of employment and its impact on HRM decision.........................................7
TASK 4............................................................................................................................................8
P7 Work related practice of HRM in organization.....................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Human resources management is an effective process to manage the staff workers and
their activities in organization. In this process, various steps are involved to attain success in an
appropriate manner. In this, recruitment, selection, placement, training and development,
motivation as well as many more benefits are involved to increase employee’s productivity in
market. It defines the best utilization of resources in their organization which improves the
performance of employees at workplace (Armstrong and Taylor, 2014). Main purpose of HRM is
to take the best talent in their business process which helps in managing work effectively. This
function focuses on the best policies and systems that assist in organizing and managing people.
It is crucial for every organization to manage human resources effectively in order to run their
business in the long term. Main purpose of HRM is to increase productivity of their employees
and enhance overall performance of business in the marketplace. Present report is based on the
ALDI which is one of the biggest leading retail companies that is having more 1000 stores in
different countries. In this report, various functions of human resources management are defined
along with describing employment legislation which affect the decision making process of firm.
TASK 1
P1 Main purpose and functions of HRM
Human resources management is one of the essential functions of business which
improves the overall performance of employees at workplace. It helps in increasing workers’
productivity in order to attain the best results within stipulated time period. The manager of
ALDI uses this approach which assist in using all resources effectually and reduce cost of
operations of business (Bloom and Van Reenen, 2011). The main function of HRM is to hire
right people for right job so that they will be able to complete their work on time along with
achieving organizational objectives in an effective manner. This process defines the skills and
knowledge of candidate and hire the best quality of person at particular job. Manager of ALDI
evaluates various benefits with the help of using HRM function in their organizational process.
Function of HRM: Recruitment: This is the main and important function of human resource management
which assists in filling up vacancies through advertising the job. They collect application
and then conduct interview for selection the able candidates. Main concept of human
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resource management is to recruit right people for the right job. Manager of Aldi defines
the job responsibilities which assist in evaluating skills and knowledge of applicant at
workplace. Employee relation: In today’s aggressive working environment, it is an important
function of management to maintain healthy relations within workers to attain the best
results (Boxall and Purcell, 2011). In this concept, human resource management
evaluates job specification, involvement of employees and the best policies to resolve
conflicts in business process. It helps in conducting union campaign, negotiation and
interpretation to get positive results at the workplace. Compensation and benefits: Preparing and managing compensation of employees is also
an important function of human resources management. In this function, the manager
defines effective and positive work environment at the workplace which assist in
improving the performance of employees. Human resource practices are essential for firm
which assist in eliminating favouritism from the workplace. In this, compensation is the
major issue which affects the performance of workers. Manager of Aldi tries to make
transparent pay system so that they can achieve satisfaction of employees in an effective
manner and get positive results by them. Training and development: Providing training and development to workers is one of the
important functions which define effective performance of workers. This function helps
employees in order to enhance their skills (CHUANG and Liao, 2010).
 Compliance: According to the legislation, firm takes the best decision and provides
compensation to the workers is called as compliance. When in organization it is absence
then employee complaints are arise and the work environment also become negative.
This is very important function to maintain healthy environment in the organization
workplace. Human resource management practice are essential to take positive decision
to set rules and regulation at workplace.
All these functions of human resource management is very effective for the organization
to maintain a positive work environment which provided proper consideration to the workers in
order to attain higher satisfaction and also, to achieve objectives of the firm in an appropriate
time period.
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On the other side, the main purpose of HRM is to effectively manager the workforce
within the organization which helps in enhancing the performance level of the company.
Basically it is related with improving the contribution of people in which they done their task in
more appropriate way in order to attain better results. In this context there are some important
purpose of HRM in ALDI are as follows:
 HRM helps in reducing the personnel costs within the organization.
 It also provide better planning for development of the workers at the workplace.
 HRM improve strategic plan in order to take better decision.
 It promote awareness at all the level of the organization.
 It also provide better tools for appropriate evaluation.
 HRM create various opportunities for their staff members in which they easily enhance
their productivity level.
P2 Weakness and strengths of different approaches of recruitment and selection
Recruitment is an effective process which is used by the every firm in order to attract
large number of applicants and selecting the best one for filling up vacancy of the business.
Manager of Aldi can use two approaches of recruitment for hiring the applicant:
1. Internal source of recruitment: This approach includes promotion and transfer. Manager
evaluates skills of workers which are already existing in the organization (Crook and et.
al., 2011). When the organization fulfilled their higher position than the manager
evaluate the skills of employee to the lower post.
Strengths:
In organization, when employees get promotion then they increase their morale to
increase their performance at workplace. In this approach, manager takes decision at a fast speed.
They do not waste time in this process. It defines loyalty of workers which assist manager to take
the best decision. The main benefit of this approach is that it evaluates the development of
employees by promoting of the high level.
Weakness:
In every organization, all employees are selected within the enterprise so that it reduce
the innovative from outside of the business.
2. External source of recruitment: In this approach vacancies are fulfilled from the
outside. In this process manager of ALDI use various sources for attracting and inviting
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the candidates. They include advertisement to go the colleges and universities for hiring
the people in their business.
Strength:
The important strength of using this approach is it provide and give a choice to select the
best one in the large number of applicants. By using this approach firm define new and
innovative ideas in their workplace (Daley, 2012). Selected new candidates are capable and
having more knowledge which help business to achieving its objectives in appropriate manner.
Weakness:
In this approach lots of funds and time are wasted. It also demotivate of existing workers
and create more conflicts in new candidates and existing employees.
By defining and evaluating of the strength and weakness of the approaches of recruitment
of the company. Aldi can use both approaches according to the situation in order to get positive
results in appropriate time period.
Selection is a best process of choosing the best candidates who have quality of the
particular job which is define by the company (Gruman and Saks, 2011). Job description and
specification is assist to the manager to select the best one for doing the job.
Approaches of selection: Systematic Approach: It is one of the important and popular approach which is related to
the selection process. In this process the manager of Aldi follow systematic approach
which assist in selecting the deserving applicants. It also helps in removing biasness of
the management in the organization process.
 Unsystematic Approach: In this process the manager select one resume from the all
applications and than it compare from the skills and ability in order to perform the job
which is vacant in the business organization.
In these approaches, manager of Aldi use systematic approach to define selection process
in effective manner and select the best one to their business process and attain maximum results
in appropriate manner.
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TASK 2
P3 Benefits to employer and employees from the practice of HRM
In human resource management include recruitment, selection, performance management
of employees which assist to the business organization to optimum uses of resources. It also
achieve efficiency which reduce the overall cost of the production. Human resources
management practice define benefits to the employees and employer to attain higher profitability
in their process (Guest, 2011). Manager of Aldi use this practice of HRM in order to provide
benefits to its workers effectively. There are some benefits of the employer and employees by
applying this concept: Helps in making planned decision: In organization activities of workers are provide
useful information to the top level managers which assist in deciding the future activities
of the organization in order to achieve best results in appropriate time period. Future
planning helps in reducing the cost of production and maintain ordination in all the
activities of business organization. Manager of Aldi focus on this function to achieve
maximum profit in its enterprise. Create healthy and good working environment: Best and ethical practice are more
effective to encourage the concept of human resource management. It also assist in
satisfying needs and wants of the employees at workplace so that they are able to increase
their performance level (Huselid and Becker, 2011). It help in making healthy and
positive environment in organization. Motivate workers and their productivity: Ethical human resources management practice
are effective which increase the satisfaction level of the employee in organization. It also
motivate the workers in order to increase their productivity in positive way. With the help
of this practice ALDI motivate their workers to increase the quality of products and
service at workplace. Develop skills and knowledge of workers: The manager of Aldi provide training and
development of its employees so that they are motivated and enhance their skills which
helps in organization to utilize its resources at optimum level. Create flexible work environment: Manager of Aldi analysis the business environment
which assist in changing the policies and process in order to doing work in minimum
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time without wasting time. This practice assist in business which capable to adopt the
change in effective speed.
 Create and promote positive environment at workplace: It is one of the best benefits in
HRM practice which helps in satisfying the needs and wants of the employees. It also
eliminate the discrimination and same time they encourage to the employees to improve
their performance level at workplace (Jiang and et. al., 2012). It assist in maintaining the
positive environment in the organization. Same can be done by the manager to attain best
results and maintain positive environment at workplace.
P4 Effectiveness of HRM practices in raising profits of organization
In every organization practice of HRM play important role to maintain coordination
among all the business activities. Absence of this practice in organization they can not able to
attain its goals and objectives in appropriate manner. It is very important process which h is used
by the manager of ALDI in order to achieve competitive advantage. With the help of this they
offer and provide quality of products and service at low cost price to the customers. In this
context there some effective HRM practices which helps in improving the performance level and
also contribute in increasing profitability of the company. Which are as follows:
 Job analysis: In this process of HRM practice manager determine whole detail
information of the jib in front of people so that they understand as well as aware about all
the responsibilities.
 Job design: In this manager make decision towards the employees tasks and their specific
job in order to improve the profitability level of the company.
 Recruitment: In this practice of HRM, manager recruit capable candidates as per their
skills and knowledge.
 Selection: In this practice, management of the company determine the applicant skills and
ability. By this they easily select best one for their operational activities.
 Training: It is a planned efforts in which company provide training to their workforce as
per their job position in order to enhance their skills and behaviour towards the work and
job.
 Development: It define the acquisition of skills, behaviour and knowledge which helps in
improving the performance level of the employees at workplace. With the help of this
ADLI attain their desirable goals and objectives.
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 Performance management: It is one of the effective practice of HRM which helps in
ensuring about employees performance and activities. By this workers easily attain their
objectives in appropriate time scale. It also helps in maintaining better relations with the
labour and employees.
Basically human resources management is essential to define future activities which
assist in reducing the complexities in the organization. It also maintain positive environment at
workplace which motivate the workers to achieve maximum benefits by doing their work with
efficiency. All this helps in defining the strengths and use of best way to get competitive
advantage in marketplace (Kehoe and Wright, 2013). The application of human resources
management practice helps in making effective strategies and policies which is used by the
organization to fulfilled their vacant vacancy by capable candidates. This process define best
recruitment and selection process to choose the capable and skilled candidates for its process
which helps in achieving the organizational goals and objectives in appropriate manner. In order
to increase efficiency and productivity Aldi use their practice which also affect the employees
performance to attain higher success at marketplace. All these helps in increasing the
profitability level and performance level of the employees which is more important to the
organization to attain positive success.
TASK 3
P5 Importance of employee relations in affect decision making process of enterprise
Employees are the main part of success of every organization activity. So that it is a
important responsibility of manager of ALDI to maintain positive and healthy environment at
workplace. In organization maintain healthy and good relation with employees,s manager
provide various facilities are as follows:
 Provide compensating employees in appropriate manner.
 Healthy and effective working condition should be provided to the employees.
 Employees should be motivated to tale part in decision making process.
 Treat its employees in a effective manner, it is main responsibility of a top level manager
and also eliminate threat from the workplace.
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 Feedback should be provide to the workers so that they manager identify the issues which
is faced by the staff member and take best action to resolve the problem (Lengnick-Hall,
Beck and Lengnick-Hall, 2011).
 Provide training and development to employees on continuous basis which helps in
increase the skills of the employees in effective manner.
 Job rotation also done by the company which assist in improving the skills of the workers
and make interesting environment at workplace.
 Effective and good communication also take a place at workplace so that it can improve
the effectiveness in their process (Ployhart and Moliterno, 2011).
 Reward system is given to the employees in order to appropriate them which assist in
increasing the other workers also to done their work effectively.
With the help of all these things manager of ALDI maintain good and effective working
environment. All these are assist in getting commitment of workers in order to increase their
loyalty ion effective manner. Better relation reduce the employee turnover and also increase the
goodwill of the company at market place.
In every organization employees are the important asset to attain success in appropriate
manner. To identify their needs and wants and also satisfy them, it is a most important
responsibility of the manager. Satisfied employees are define productivity of the company which
assist in improving the performance and attain best results in effective way. So that manager of
ALDI needs to do same process to maintain good and healthy relation with their employees at
workplace.
P6 Key legislation of employment and its impact on HRM decision
Employment legislation is a mix of various rules and regulations which guide employer
of an enterprise while making policies regarding the management of employees at workplace. It
define the relationship of a employer and employee and define the responsibilities of both
towards each other. Following acts are included under the employment legislations: Employment rights act: this act define the basic facilities which should be provided to
an employee by his employer at the workplace. According to this act minimum wage and
and safe or healthy working conditions should be provided to all workers (Purce, 2014).
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 Workers discrimination act: Every employer is liable to proper growth opportunities to
all his employees ion equal basis. An employer should not discriminate his workers on
the basis of their age, colour, gender, colour and on any other basis. Equal pay act: According to this act, when two individuals having same education and
skills do work in the n enterprise than it is the responsibility of employer to pay them
equally.
 Minimum wage act: Government of every country decide the rate of wage, as per the
inflation rate exist rate in the market and every employer became responsible to pay that
amount to his workers so that they can fulfil the basic requirement of their daily life.
All these acts should be considered by the manager of ALDI while making policies
regarding HRM for better satisfying the needs and wants of customers.
TASK 4
P7 Work related practice of HRM in organization
There are various number of HRM practices which are used by the ALDI manager in
order to increase the efficiency in the organization (Vörösmarty and et. al., 2010). These practice
define best decision and action which is taken by the manager to maintain the positive
environment at workplace. There are various areas where HRM practice can be applied: Planning of manpower: Every organization need large number of workers in order to
completing operation task in appropriate time. Human resource management helps to
manager to recruit capable candidates for doing the job. It assist in define the
responsibilities of each job which helps in hiring the capable candidates. Helps in maintaining quality of business operation: Concept of HRM is important to
define the roles and responsibility of the employees which assist in coordinating in all the
activities of workers to maintain the quality of products and service in effective manner. Help in creating vision and mission: Human resources management activities are assist
in define the capabilities of the workforce which helps in setting the organizational goals
and objectives. Decision making: Manager of human department they manage all the activities which are
related to the workers in business organization. All activities are helps in define the
strength and weakness of the company. On other hand it also helps in analysing the
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competitors in the marketplace. They collect the relevant data to take best decision
regarding the business.
 Training and development: HRM concept is focus on the employees. This function is
used by the manager who conduct the training and development program to its workers
which assist in increasing the skills and knowledge of the workers (Wright and
McMahan, 2011). It also include the achievement of the objectives in appropriate
manner.
All these are important function for every organization which applied HRM practice in
their process. By applying concept of human resources management organization can enhance
their business operation in effective manner. With the help of these function manager of Aldi
increase overall performance of the business.
CONCLUSION
In above mentioned report can be concluded that human resource management is very
important to the every organization to manage all the workers in effective manner. It also
maintain and control its employees which helps in achieving the organization goals ans
objectives. Manager of Aldi use HRM practice which assist in maintain the healthy and good
working environment in their business process. This practices define effective process to
encourage the workers to do all the work effectively and achieve positives results in their
business which is more important to the firm to improve their performance level at marketplace.
All the human resource management increase the productivity of the workers to get maximum
outcomes.
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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.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook
of labor economics. 4. pp.1697-1767.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
CHUANG, C. H. and Liao, H. U. I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
psychology. 63(1). pp.153-196.
Crook, T. R and et. al., 2011. Does human capital matter? A meta-analysis of the relationship
between human capital and firm performance.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
Gruman, J. A. and Saks, A. M., 2011. Performance management and employee engagement.
Human Resource Management Review. 21(2). pp.123-136.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Huselid, M. A. and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jiang, K. and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
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Lengnick-Hall, C. A., Beck, T. E. and Lengnick-Hall, M. L., 2011. Developing a capacity for
organizational resilience through strategic human resource management. Human
Resource Management Review. 21(3). pp.243-255.
Ployhart, R. E. and Moliterno, T.P., 2011. Emergence of the human capital resource: A
multilevel model. Academy of Management Review. 36(1). pp.127-150.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Vörösmarty, C. J and et. al., 2010. Global threats to human water security and river
biodiversity. Nature. 467(7315). pp.555-561.
Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
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