Human Resource Management

Human Resource
Management
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
A) HR strategies and concept of strategic HRM ........................................................................3
B) Impact of regional and national culture on the practice of HRM in EU countries ................4
C) Organization’s model of employment and organizational levers used by the firm to create
value.............................................................................................................................................5
D) Using Storey’s 27 points of difference between HRM and Personnel Management state
what is being practiced by firm in the Asian / African Country- HRM policies or Personnel
Management.................................................................................................................................6
E) Importance and significance of local culture and HRM practices in
transnational/international subsidiary for hiring and firing process............................................7
F) Differences in terms of employment laws when international HRM changes local business
systems. .......................................................................................................................................8
G) Corporate examples of firms using good HR practices and literature....................................9
H) Recommendations to employers regarding HRM practices ensuring organizational
performance is high ...................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Human Resource Management is defined as department which takes hold of all the
functions and is responsible for employee and company's issues (Bratton and et.al., 2017). Lidl is
a multinational retail chain which operates in providing products and services to customers
through supermarket chains.
The report will analyse the value created by the firm by using HR strategies and concepts
of strategic HRM. Analysis will be done on the impact of regional and national culture on the
practice of HRM in Africa. Organizational model of employment will be described along with
organizational levers used by Lidl to create value. By using Storey’s 27 points of difference
between HRM and Personnel Management practices in the African country will be determined
whether they use HRM policies or personnel management. Importance and significance in
consideration with hiring and firing of local culture and HRM practices in general and HRM
practices in transnational/international subsidiary will be explained. Differences in terms of
employment laws when international HRM changes local business systems will be examined.
Further, Corporate examples of firms using good HR practices and literature will be justified.
And finally, recommendations will be made to employers regarding HRM practices ensuring
high organizational performance to be effectively and efficiently achieved.
MAIN BODY
A) HR strategies and concept of strategic HRM
There are many strategies which has created value of the firm.
HR strategies for Lidl organization is -
Investment in Corporate Social Responsibility:
As Lidl deals in retailing business, the company invested in Corporate Social
Responsibility activities which created more awareness and has generated attention towards the
essential elements of the delivering the services in the social context which is related to the
customers (Saha and et.al., 2017).
Transparent and Regular Communications:
Lidl has intensified its HR strategies by regulating transparent communications. This is
the main HR strategy which has been formed by the organization so that there is proper flow of
communication in company.
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Employee Engagement:
Lidl has created value for the firm by engaging employee massively. The organization is
creating its success over the years as the employee engagement process of the company is
beneficial both for the organization and the employees progressing effectively and efficiently.
Corporate Image:
Lidl has ensured that the corporate which it holds has created a good reputation on the
external market structure (Paauwe and et.al., 2017). This has proved an essential point in which
the corporate image of the company has lead to success and development at large.
Strategic Human Resource Management:
It provides a framework linking people management and development practices to long
— term business goals and outcomes. It focuses on longer — term resourcing issues within
organization's goals and evolving nature of work. Different HR strategies, such as, reward or
performance are determined on basis that how they are incorporated into the overall business
strategy.
The business objectives are achieved on the basis that proper strategies are framed by
organizations to achieve goals and objectives effectively and efficiently. There are many
responsibilities which HR contributes to the Lidl success and progress. Strategic HRM helps in
planning, framing and implementing different strategies which are required by the organization
or company (Aust and et.al., 2020). Smart Human Resource Management helps in achieving
desired goals and objectives which are set by organization to achieve it successfully and
effectively. Human Resource Management of Lidl ensures that strategies are framed in such a
manner that progressive and positive results are achieved by the organization.
B) Impact of regional and national culture on the practice of HRM in EU countries
National culture influences many aspects of an organization, including resource
administration, strategic decision-making, leadership style, performance appraisal, provision of
developmental opportunities, and the management of employee relations. The HRM practices
which are inculcated in the EU countries impacts the national culture over all the essential
aspects of the organization (Yap Peng Lok and et.al., 2019). The Human Resources Management
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practices drive the organization's success (Sammarra and et.al., 2017). Different cultures and
practices affect the organization's culture.
Practices of HRM are impacted by the policies and regulations that are being inculcated
by national culture. Understanding culture is the most important thing for the organization as
HRM is exposed to diverse range of employees in the organization. Therefore, HRM practices
are framed in consideration with the diversified cultures which are existing in the organization.
Practice of HRM in EU Countries considers different religions and cultures. HRM of Lidl values
the employees which come from different backgrounds and cultures. This is one of the strengths
of organization that employee engagement in the company is increasing day by day. Therefore,
culture plays major role during the practices of HRM.
Regional Culture impacts the practices of HRM as different individuals come from
different backgrounds and culture. Different cultures specially regional cultures have impacted
the HRM practices and have influenced their process and procedures as most of the employees of
organization vary on the basis of their culture. Lidl is a diversified organization having
employees which come from diversified cultures and origins. Cultural differences changes the
systems and practices of HRM (Podgorodnichenko and et.al., 2020). Also, considerations of
different cultures has changed the ways in which HRM practices in EU Countries run. HRM of
Lidl focuses on the rules and regulations which are framed by the company and the employees
follow those rules and practices.
Therefore, impact the regional culture on the practice of HRM affects the organization on
large. Employees are important assets of the organization and therefore the HRM department of
organization avails opportunities of employment to them. Thus, the EU Countries focus on the
growth and development of organizations. This also provides vast opportunities through different
skills and abilities which employees from different cultures render to organization.
C) Organization’s model of employment and organizational levers used by the firm to create
value
Employment is generated by the organization which provides opportunities to the employees.
Employees play an important role in the organization as they are a main asset of the
organization. Organization structure includes coordination, supervision, task allocation which
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benefits the organization in achieving its objectives and goals. The main model of organization
model is -
Line and Staff organization model — Line and staff organization model denotes that the
responsibilities and authorities of both line and staff (Kot-Radojewska and et.al., 2018.). The
process and the procedure of staff of the company is coordinated with the line organization. The
responsibilities are followed by the staff and the employees of the organization and accordingly
all work is been processed which inculcates key aspects in various departments. The line and
staff organization deals with the important details and information which is to be transferred
from one individual at position to another. Therefore, the company or the organization maintains
effective communication which involves the functions of different individuals set up in line and
staff organization. Coordination is important for organization to be more efficient.
Organizational levers used by the firm to create value - Reduction in Accounts — It’s counter-intuitive for sales personnel to focus on fewer
accounts. In contrast, Lidl organization define the Ideal Customer Profile (ICP) and stay
focused on clients. This enables the organizations to maximize their share of wallet and
move from vendor to partner within the most profitable consumers. Auto Attach — Sales department do not present an inclusive deal to customers of
organization. Whether implementation services, maintenance, adjacent or enhanced
products, sales personnel follow the path of the least resistance to close deal. All
proposals should include add-on. If declined, customers will have an increased
appreciation for potential of the product (Blyton and et.al., 2017).
 Outsource Sales — Sales is core to your company and cannot be outsourced. Aspects of
sales can be outsourced. Lidl organization has optimized routes to market with the
appropriate selling motion. Inside sales, the commonly outsourced function, is outsourced
to generate leads, execute campaigns, and support field sales. Lidl organization have full-
scale quota carrying inside sales personnel outsourced to market leading providers.
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D) Using Storey’s 27 points of difference between HRM and Personnel Management state what
is being practised by firm in the Asian / African Country- HRM policies or Personnel
Management
Using Storey's 27 points of difference between HRM and Personnel Management it is
stated that Lidl follows line management which ensures that the effectiveness and the efficiency
of organization lies in levels which the department resides. There are Storey's 27 points based on
which the firm in Asian/African Country practices is the HRM policies as they develop policies,
manage risks (Horwitz, 2017). The employees of the organization follows rules and policies
which are set by the Human Resource Management and department. The Storey's 27 points of
difference consist of the aspects such as -
 Beliefs and Assumptions — This factor consist of contract, rules, guide to management,
nature of relation, conflict, behaviour referent, managerial task vis a vis labour,
 Strategic Aspects — This factor consists of corporate plan, initiative, key relations,
speed of relation.
 Line Management — This consists of prized management skills, communication, key
managers, management role, standardization.
 Key Levers — Selection, pay, conditions, labour management, Thrust of relations with
Stewards, job categories and grades, communication, job design, conflict handling,
training and development, foci of attention for interventions.
HRM policies are practised by Lidl which denotes that the company is specifically
focused on the employee performance. The HRM policies which are being practised are
combined by the rules and regulations which are being set by the HR Management. The policies
are made in such a manner that they benefit the whole organization and the company's internal
structure which consists of employees performance, company's recruitment and selection process
etc.
Lidl following different HRM Policies helps the company gain advantage in its business.
Along with this, there are young worker and child labour policy which ensures that children are
not involved in the manufacture of the products that the company is producing. Proper law is
followed by company ensuring that the policies are being followed by employees. This law
which is made is in full compliance with local law relating to workers. Therefore, HRM policies
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ensures that all the practices of Lidl works effectively and efficiently and enables work which
helpful in progressing with the economy along with focusing on changes company incurs.
E) Importance and significance of local culture and HRM practices in transnational/international
subsidiary for hiring and firing process
Local culture of the country plays an important part in hiring and firing of employees of the Lidl.
The culture from which the employees come in the organization is significant to what their job
role is (Mtembu, 2019). This is in accordance with the basis that the employees of Lidl are more
concentrated in their hiring process. The reason for hiring and firing of the employees is affected
by the local culture from where the individuals belong. Various HRM practices need to be
carried out in such processes which ensures that smooth functioning in the organization is done.
These practices are need to be carried out in the transnational/international subsidiary
assuring that the HRM practices in the procedure are carried off well and the organization is still
indulged in the recruitment and selection process. There are terms which are in consideration to
HRM such as — Recruitment and Selection that manages the competencies of employees and
according to that hiring and firing of employees is done, training is provided to the employees
for performing better and adaptability in new culture. Lidl was initially considered indigenous to
more economically advanced countries.
Lately, while keeping the native habitat of MNC's, most of those companies have
invested with and conduct trading operations all over the world especially focusing on African
and Asian continents. The company faces difficulties when it trades in different continents which
affects the effectiveness and efficiency as whole. In this scene, the Human Resource (HR) plays
an essential role in the process of internationalization by contributing to the performance of
MNC's. With this significance of HRM in determining the success of MNC's. Entry strategies
within market has been identifies, analysed and evaluated on the basis of company's success and
this also improved productivity and cross culture management, global leadership development
and diversity management (Bansal and et.al., 2018).
Lidl maintains corporate integration through central procedures, planning, hierarchy and
rules. However, there are some evidence that Lidl with a long operating tradition in subsidiary
country apply several strategies to identify crucial talent pools and to develop these employees
by strategic integration in their organizational structures and methods.
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F) Differences in terms of employment laws when international HRM changes local business
systems.
There is a lot of difference in the terms of employment laws when international HRM Changes
local business systems. This not only affects the HRM practices of the organization rather also
the company's policies and procedures are also affected. There are various parts of the business
which are being affected in the whole system. The employment laws are different in international
HRM of the organization. Employment laws are changed according to the countries in which the
organization is operating in (Katrini, 2018). This is the main point through which the policies
and the employment laws are identified by the employees and their rights are being clarified in
process of how organization works.
International HRM when changes the local business systems affects the employees of the
country. Employees then follow the rules and policies which are directly been applied or implied
to them for their job role. Changes in the local business systems also affects the economy of the
country as many factors are related to it such as the political factors, legal factors, social factors
etc. HRM practices are followed in organization to assure the process of business and the work is
being significant and effective enough for the growth and development of the company on large
scale. When the HRM of the counties changes the employment laws in business, it helps the
organization analyse the economic structure and the employment opportunities which are being
made available to the individuals (Allen and et.al., 2021). Various employment standards are
considered and in regard to that the business is changed. This insures whether the employees of
the organization are satisfied as they are the main asset of the company.
Economy is largely impacted by the changes which are done in the employment process
of Lidl. Therefore, there are lot of differences which are observed when international HRM
changes local business systems. These changes help in diversification of the economy by making
the economic system more prone to changes. Therefore, employment laws are different in
different countries. International HRM policies vary on the basis that they have been played an
important role in both the economy and in increasing potentiality of business.
G) Corporate examples of firms using good HR practices and literature
Some corporate examples of firms using good HR practices are as follows -
Example 1 — Google -
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Google is one of the most popular search engine. The company is well-known for its
innovative breakthroughs and technological front. Google's culture and HR policies are also best
ever served to employees of organization. HR practices at Google are named as 'People
Operations' (Khoreva and et.al., 2018). Google's HR department focuses and tries to build the
employer — employee relationships. Google collects and examines data to evaluate how an
original or current HR practice benefits employee. HR practices, for example, employee on
boarding, act as backbone to create Google’s strong workplace culture.
Example 2 — Accenture —
Accenture is a leading multinational, professional service company. Accenture is the first
company to obtain a successful HR practice index value. The focus of HR of organization is in
the re — invention of performance (Rana and et.al., 2017). The HR practices the best technique
which is that they concentrate on the efforts of one employee at a time. This is the best HR
practice that organization is concerned about performance of one employee at a time. This
ensures that company is focused on accelerating performance generated returns rather than
quantity generated results.
H) Recommendations to employers regarding HRM practices ensuring organizational
performance is high
 Business strategies of the organization should be aligned with the external and internal
factors.
 Ensure talent strategy aligns with the company's overall plan.
 Provide training to the employees properly so that they are able to deliver their best
performance.
 Various capabilities of organization's workforce should be assessed accurately by the
HRM which allows the employees to achieve their annual appraisals and reviews
regarding their performance is made clear to them.
 HR of Lidl should focus on providing safe, happy and healthy workplace.
 360 degree performance management feedback system should be in practice with the
employees.
 Fair evaluation system should be practised by HR so that the employees are satisfied with
the organization and are not felt cheated on any terms.
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 Open house discussions should be done along with proper feedback mechanisms which
involves the issues and problems to be solved from the employee's side.
 Lidl should ensure that knowledge sharing in the organization becomes most prior factor
so that there are no miscommunications among the employees and the employers.
 The company should create list of high performers and make it visible through company
intranet, display boards etc. so that other employees of the company are encouraged to
perform better and effectively.
 Rewarding the employees should be practised by the organization which will motivate
them to continue their progress and will help them in assuring the results that they have
achieved are fair enough in the eyes of organization.
 Information should be easily accessible to the employees so that they are known with the
rules and regulations which Lidl follows.
Therefore, these are the suggestions/recommendations which Lidl should follow so that the
company is effectively and efficiently prone towards growth and development. Along with this,
the loopholes will also be identified for the benefit of company and employees on overall basis.
CONCLUSION
Thus, it is concluded from the above report that value was created by the firm by using
HR strategies and concepts of strategic HRM was explained. Analysis was done on the impact of
regional and national culture on the practice of HRM in Africa. Organizational model of
employment was described along with organizational levers used by Lidl to create value. By
using Storey’s 27 points of difference between HRM and Personnel Management practices in the
African country was determined whether they use HRM policies or personnel management.
Importance and significance in consideration with hiring and firing of local culture and HRM
practices in general and HRM practices in transnational/international subsidiary were explained.
Differences in terms of employment laws when international HRM changes local business
systems were examined. Further, Corporate examples of firms using good HR practices and
literature were justified. And finally, recommendations were made to employers regarding HRM
practices ensuring high organizational performance to be effectively and efficiently achieved.
Therefore, Human Resource Management of the organization plays an important role in
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identifying what are main key areas and aspects which are to be evaluated. This also helped
company in assessing the performance of employees effectively is achieved or not.
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REFERENCES
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Blyton, P. and et.al., 2017. A flexible future?: prospects for employment and organization (Vol.
30). Walter de Gruyter GmbH & Co KG.
Bratton, J. and et.al., 2017. Human resource management: theory and practice. Palgrave.
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Katrini, E., 2018. Sharing Culture: On definitions, values, and emergence. The Sociological
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Khoreva, V. and et.al., 2018. HR practices and employee performance: the mediating role of
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Kot-Radojewska, M. and et.al., 2018. Employee loyalty to the organization in the context of the
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Mtembu, V., 2019. Does having knowledge of green human resource management practices
influence its implementation within organizations?. Problems and Perspectives in
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Paauwe, J. and et.al., 2017. Strategy, HRM, and performance: A contextual approach. Oxford
University Press.
Podgorodnichenko, N. and et.al., 2020. The role of HRM in developing sustainable
organizations: Contemporary challenges and contradictions. Human Resource
Management Review.30(3).p.100685.
Rana, M.H. and et.al., 2017. Impact of human resource (HR) practices on organizational
performance. International Journal of Islamic and Middle Eastern Finance and
Management.
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Saha, N. and et.al., 2017. Organizational agility and HRM strategy: Do they really enhance
firms’ competitiveness?. International Journal of Organizational Leadership.6.pp.323-
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Sammarra, A. and et.al., 2017. Enhancing knowledge sharing in age-diverse organizations: The
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