P4 Effectiveness of human resource practices in increasing productivity and profit

HUMAN RESOURCE
MANAGMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Purpose and functions of human resource management........................................................1
P2 Strength and weakness of various approaches to recruitment and selection ........................3
TASK 3 ...........................................................................................................................................4
P3 Benefits of different HRM practices for both employee and employer ................................4
P4 Effectiveness of human resource practices in increasing productivity and profit.................5
TASK 3............................................................................................................................................6
P5 Importance of employee relation in influencing HRM decision making..............................6
P6 Key components of employment legislation..........................................................................7
TASK 4............................................................................................................................................8
P7 Illustration of various HRM practices....................................................................................8
CONCLUSION ............................................................................................................................10
REFERENCES ...............................................................................................................................1

INTRODUCTION
Human resource management is one of the fundamental functions of firm which plays
important part in managing and developing employees. Contribution of this department is high in
success and growth of company (Armstrong and Taylor., 2014). HR manager are responsible for
recruiting employees and select best one of them which best meets the defined criteria of firm.
They also have the responsibility to administer training to manpower so that they enable to
develop their skills and competencies. In the present assignment, chosen organisation is ALDI
which is leading supermarket chain that offers goods and services to customers at discounted
rates. The report covers purpose as well as functions of HRM along with merits and demerits of
recruitment and selection approach. Apart from this, benefits of HRM practices and effectiveness
of these in raising profits and productivity is defined. In addition to this, key components of
employment legislation and importance of good employee relation are also discussed in this
project.
TASK 1
P1 Purpose and functions of human resource management
Human Resource Management is defined as a strategic approach to proper and effective
management of employees so that they assist the firm in gaining competitive advantage in
market. This department is designed for the purpose of maximizing performance of workforce as
well as organisation. HRM refers to the practice of recruiting, selecting and managing workforce
within firm. The main responsibility of human resource manager is to ascertain requirements of
business enterprise and hire right number of candidates who have excellent skills and good
knowledge. Skilled employees assists in effectively attaining goals and objectives of company
and leads it towards growth and success. One another aspect that is associated with this
department is training and development of workforce. Managers of firm design training
programmes as per the skill requirement of manpower and administer them so that they enable to
develop their knowledge and increase their potential (Berman and et. al., 2012). This helps
workers in performing their duties in appropriate way and attaining objectives and targets of
company.
In ALDI, manager are responsible for ascertaining need of employees within firm and
then do proper workforce planning in order to high right numbers of workers within company.
Candidates are selected as per their skills and abilities and assign them right position which

enables them to perform their duties in well manner. Training session is also conducted by them
so that employees get opportunity for enhancing their knowledge and skills. It also supports in
increasing their motivation and workforce feel satisfied with that and work towards attainment of
objective of company (Boella and Goss-Turner, 2013).
Functions of Human resource management:
Several functions are associated with human resource management which are applicable
in workforce planning. At the time of manpower planning, manager of ALDI consider 2 major
activities which are defined below:
Recruitment and selection: It is the process that every business enterprise use in order to
select skilled and talented candidates within firm. This is an important aspect that should be
considered by manager of company when they do workforce planning. In this, manager of ALDI
first identify employee needs of firm and then invite applications in order to fill vacant position
of firm. A definite criteria is set by them for each position and on the basis of that they select
candidates which best meets set criteria. By this, managers have the choice to select individual
from large pool of candidates. This helps in them in hiring best candidates who have excellent
knowledge and skills. Skilled individuals helps in increasing productivity of firm and achieving
its set objectives and targets.
Training and development: In workforce planning, another activity which needs to
consider by manager of ALDI is training and development of their workforce. In this, the first
and foremost responsibility of manager is to determine skill needs of manpower. This helps them
in designing appropriate training programme which assist in developing all the skills that are
required in order to perform a particular task in an effective and better manner. By providing
training programme, employees get an opportunity for increasing their potential and developing
their knowledge regarding various aspects of other areas. Training provides an ability to
manpower for performing their responsibilities in appropriate way and attaining predetermined
objectives of company (Boselie, 2010). It assists in maximising profits and productivity of firm
and leads it towards long term sustainability in market.
The activities mentioned above are considered by manager of ALDI when they are
planning of workforce. Proper planning helps them in hiring right number of employees within
organisation which ultimately assists in attaining goals and targets of company.

P2 Strength and weakness of various approaches to recruitment and selection
Human resource considers as the main asset of business entity. Thus, it is important to
search and select suitable candidate for the company who with their effective skills and
knowledge attain organizational goals within its defined period (Boxall and Purcell, 2011). Both
recruitment and selection play key role in finding and selecting appropriate candidate for the
respective company.
Recruitment can be termed as a procedure that aid in searching most competent candidate
and stimulate them to apply for vacant job opening in the company. On the contrary, Selection
means choosing most talented and qualified candidate from the pool of applicants. Generally
there are two sources of recruitment and selection namely Internal and External. Internal means
when employees are recruited within the company only such as promotion, transfer etc. External
mean selected candidate from outside source such as direct interview, Walk-ins, employment
exchange etc. With the assistance of these two sources, ALDI is able to get most qualified,
knowledgeable and competent personnel who gives better results in the form yielding higher
profitability ratio. However, each source is having its own strength and weakness which are
discussed below:
INTERNAL SOURCE
Strength :  In this, ALDI select suitable candidate for the given job vacancy
within its company only. As a result, this method help in saving time
and efficiency.
 It is cost effective method
 It help in increasing the morale of existing employees
 No extra cost is associated with induction, orientation
 Organisational goals and objective can be attained in an effective
and efficient manner as selected worker is already familiar with
policies and procedure of respective company.
Weakness :  With this method, company cannot recruit new candidate. As a
result, there is lack of fresh talent in firm.
 There might be chances that existing workers may lack of high end
technology and are less aware of about changes take place in market

or environment.
 This method creates another vacancy in the company.
 Promotes favouritism which results in arising conflicts or disputes
between employees.
 It put limit on selecting new candidates.
EXTERNAL SOURCES
Strength :  This method promote fresh talent and new blood in the company.
 Due to unique and creative ideas, chances of earning higher profits
significantly increases.
 There is no limit on selecting candidates.
 It help in improving diversity which enable company to gain high
competitive edge in the market place.
 Selected candidate might have wide range of experience.
Weakness :  Reduce promotion opportunities
 It is a time consuming process
 There might be chances that company may make mistake while
hiring new candidate.
 Existing employees gets demotivated as their opportunities has been
given to some new person
TASK 3
P3 Benefits of different HRM practices for both employee and employer
In order to attract, motivate and retain employees for longer period there are various
human resource management practices such as providing healthy working environment,
employee relation, training and development that play key role in enhancing their overall
performance and productivity of company and its workforce (Daley, 2012). Such practices
benefits to both employee and employer. Application of these practices ensure execution of
business activities and operation in a structured and through manner. In ALDI, implementation

of these HRM practices alleviate smooth running of firm's operation. Following are the benefits
that these practices provide to both employee and employer are as follows:
Benefits to Employer:
1. Help managers in decision making process: HR practices help managers in formulating
effective decision concerned with plan and procedure of respective company. With the
application of these practices, employer can contribute tremendously towards
organisational growth and success (Gospel and Sako, 2010). In addition to that, it also
make much easier for manager to frame decision.
2. Maintains healthy working environment: Healthy working environment play key role
in motivating and encouraging employees so that they can work incredibly hard towards
attaining company's goals and objectives within specified time frame. ALDI is promoting
healthy and positive working environment that increase the morale of their employees. In
addition to that, it also help in improving their overall productivity and efficiency. If
manager are satisfied, then only they will be able to fulfil the needs of employees in a
proper manner.
Benefits to Employee:
1. Improves Performance: With the help of HRM practices, ALDI can enhance the
performance of their workforce. Morale of personnel is increased and as result, they work
hard towards completing defined task or target within its given time period. As a result,
contribute vastly towards generating higher revenues for the firm.
2. Employee Relation: With the proper application of these practices, managers are able to
support their employees who feels that their rights are breach or violated. It help in
maintaining stronger relationship between employee and employer which leads to carry
out all business activities and operation in a systematic manner.
P4 Effectiveness of human resource practices in increasing productivity and profit
Human resource practices are the means by which personnel can develop leadership of
staff. Application of these practices helps firm in maximising its productivity and profit ratios. It
also assists in increasing motivation level of employees and encourage them to work for
attainment of goals and objectives (Heizer, 2016). These practices facilitates manager in
formulating appropriate plans and policies related to employees. Several strategies are also
formulated by them which assists implementing those plans in proper and effective way. These

plans administers guidance as well as directions to managers for their future course of action.
Practices of human resource management includes training and development, health and safety,
salaries and compensation, maintaining healthy workplace etc. All such practices facilitates
manager in satisfying their staff members (Hoque, 2013).
In ALDI, implementation of human resource management practices assist in maintaining
positive and healthy work environment. It promotes strong work culture within firm which will
ultimately increase its productivity. A sense of satisfaction is created among workers which
encourage them to work for accomplishment of goals and targets of company. HRM practices
also helps in increasing participation of workforce in activities of company which promotes team
work. It allows workers to work in team with proper coordination and cooperation. Team
working helps them in performing their duties effectively and in completing their work on time.
It enhance productivity of both, ALDI as well as its employees and leads it towards growth and
long term success.
There are many challenging situations in front of manager such as employee conflicts and
others, in which manager needs to take various decisions. These practices helps them in taking
effective decisions which improves performance of manpower. In ALDI, a healthy work
surroundings is maintain by proper implementation of these practices. Manager also emphasize
on providing effective training sessions to their personnel so that their skills and competencies
can be enhance they enable to work for attaining goals of company. Training helps in increasing
productivity of employees as well as firm and contributes in increasing its productivity. So, in
this way, effective practices of company assists in increasing productivity and profits of firm and
leads it to higher growth as well as long term sustainability.
TASK 3
P5 Importance of employee relation in influencing HRM decision making
Employee Relation can be defined as relationship that exist between management and
employee of the company. For smooth running business operation, it is important for an
association to maintain healthy working relationship among employee and employer as the
contribution of both parties are extensive in organisational growth and development (Jiang and
et. al., 2012). Managers of ALDI shares strong rapport with its workforce which promote
friendly working environment in the company. Managers involve them in their decision making
process which makes them feel valued and important. Along with this, it also ensure improved

performance of workers and as a result, increase their satisfaction level. ALDI ensure to provide
equal and fair opportunities to all its employees that aid in their future growth and development.
Also it allow workers to freely interact with management and openly share their opinions and
suggestion which help ALDI in formulating effective decision and strategies (Marchington and
et. al., 2016). This in turn improves co-operation and co-ordination among personnel and
chances of raising higher profitability increases. Some of the importance of maintaining healthy
employee relationship are mentioned below:
 It assist ALDI's manager in encouraging and inspiring their staff members so that they
can contribute significantly towards achieving organizational goals and objectives.
 Working in a team increases the possibility of generating maximum profits.
 Equal and fair participation of employees ensures smooth running of business activities
and operation.
 Participation of workers is increased in carrying out business activities if they share good
rapport with each other. This indicate that they trust each other blindly.
 If employees relation are good, pre-defined goals and objectives can be accomplished in a
structured and through manner.
 Good relationship among employer and employee ensure long term sustainability of firm
and also high growth in the market.
P6 Key components of employment legislation
All kinds of protection measures of employees are covered in employment legislations
which are necessary to be followed by every business firm. These legislations helps in protecting
interest of workers of being exploited. Some important components of these enactments are
defined below:
Equality: The prime responsibility of every business firm is to treat their manpower with
equal respect and dignity. It ensures optimum utilization of human resource in cost effective
way. It is required by manager of ALDI to render equal opportunities to all their workers so that
all are feeling happy and satisfied. They are not liable to made any discrimination among
workforce on the basis of religion, caste, culture, gender etc. So, it is important for firm to treat
all their staff members in equal and fair manner (Mok and et. al., 2013).
Data protection: As per this act, workers are not liable to share any confidential
information or data of respective firm with other person who is not belong to firm. If a person

finds to do so, they might be face many consequences for the same. So, it is require by
employees to not share any kind of data with third party.
Health and safety: This is one of the employment legislations that is related with health
and safety of workforce. As per this act, it is necessary for every business firm to provide health
and safety measures to their employees at workplace (Nickson, 2013). This will assists in
satisfying workers and increase productivity of company. For instance: ALDI is concerned about
their workforce in terms of administering them washing, drinking, cleanliness and other facilities
and also provide them learning sessions regarding this.
TASK 4
P7 Illustration of various HRM practices
JOB SPECIFICATION
Organisation: ALDI
Job title: Assistant Human resource manager
Qualification:- MBA or PGDM mainly specialize in human resource management
Essential Criteria:
 Ensure proper coordination among team and its members.
 Adequate knowledge of theories and management concepts related with human
resource.
 Potential to deal with all situations in an effective manner.
Desirable Criteria:
 Minimum 3 years of experience is required
 Strong interpersonal and communication skill
Job Description
Organisation Name ALDI
Job Designation Assistant HR Manager

Location England, UK
Reporting To HR Manager
Roles and Responsibilities  Maintain proper records of employees.
 Arrange adequate training and development
program for workers that improve their
performance.
 Contribution in making payroll
 Formulate effective policies keeping in mind the
welfare of employees.
Working Hours 9: 30am to 6:00 pm
Salary 20,000- 30,000 US$
Working Facilities Provide flexible working hours, compensation and
benefit, healthy working environment.
CURRICULUM VITAE
Curriculum Vitae
Name:- ABC
Address:- United Kingdom
Phone No:- 4247584554
Job Objective:
Looking for a platform that provide excellent opportunities in terms of growth and development

and where I can utilize my skills, knowledge and competency in an effective and efficient
manner.
Educational Qualification:-
 B.Com (Hons)
 MBA or PGDM
Specialisation:
 Human Resource Management
Declaration:
I hereby declare that all the above information provided is accurate and best in my knowledge.
Date:
Place:
CONCLUSION
According to the above mentioned report it can be concluded that growth and
development of any association depend upon how effectively their human resource contributes
towards achieving business goals and objectives within defined time period. Employees are
consider as the main asset of the company and thus it is important for organization to select
skilled and competent candidate for the company. Along with this, there are different HRM
practices such as training and development, recruitment and selection, orientation that help in
maximising overall profitability and productivity of the firm. There are various key employment
legislation such as data protection, working condition, fair and equal wages that needs to be
properly taken into account as it assist in motivating and encouraging employees to work
incredible hard towards accomplishing pre-defined target in an effective and efficient manner.

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Berman, E. M. and et. al., 2012. Human resource management in public service: Paradoxes,
processes, and problems. Sage.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Boselie, P., 2010. Strategic human resource management: A balanced approach. Tata McGraw-
Hill Education.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management.
pp.120-125.
Gospel, H. and Sako, M., 2010. The unbundling of corporate functions: the evolution of shared
services and outsourcing in human resource management. Industrial and Corporate
Change. 19(5). pp.1367-1396.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Hoque, K., 2013. Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.
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.
Marchington and et. al., 2016. Human resource management at work. Kogan Page Publishers.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.

Online
Functions of HRM. 2017. [Online]. Available through: <https://www.keka.com/5-major-
functions-human-resource-management/>.
Role of Managers in Employee Relationship. 2018. [Online]. Available
<https://www.managementstudyguide.com/role-of-hr-in-employee-relationship.htm>

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