Importance of Local Culture in HR Practices

This article explores the importance of local culture in HR practices and its impact on organizational performance. It discusses how local culture influences hiring, workforce management, and performance improvement.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
Examining how value was created by Aldi by using human resource strategies........................3
TASK B...........................................................................................................................................4
Analysing the impact of regional and national culture on HRM practice in Aldi......................4
TASK-C...........................................................................................................................................5
organization's model of employment..........................................................................................5
TASK-D...........................................................................................................................................6
Difference between HRM and personal management using storey's 27.....................................6
TASK-E...........................................................................................................................................8
Importance of local culture in HR practices...............................................................................8
TASK-F............................................................................................................................................9
Good HR practices that is used by Aldi using examples............................................................9
Task-G............................................................................................................................................10
Recommendation to employees regarding HR practices .........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is one of the most essential and helpful departments in the
companies. It contributes to gain competitive edge and bring more benefits for a brand, which
are quite valuable. The current assignment will be based on Aldi, which falls under the category
of leading supermarkets in the European Union. Aldi is operated in the countries like Denmark,
France, Spain, Poland, Australia and china. The study will explain how value was created by
company by utilizing HR tactics and will also define the impact of national & regional culture on
practice of HRM. Furthermore, the assignment will justify organization's model of employment
and levers utilize by brand to create value. It will describe the differences between personal
management and human resource administration and will also state what is being practices by
company in African/Asian nation HRM policies or personal management or both. The report will
explain that when it comes to firing and hiring do HR manager consider significance and
importance of local culture and HR administration practice need to be undertaken in usual and
practices need to carry out by them in trans-national or international subsidiary.
Moreover, the study will justify differences in terms of employment laws when
international HRM modify local venture systems. It will also explain corporate examples of
companies that used good HR practices and will also define suggestions in context of employers
regarding human resource management to assure that organizational performance is high.
TASK A
Examining how value was created by Aldi by using human resource strategies
In the business world, there are many companies accessible that have utilized varied
approaches and strategies to sustain venture for longer and retain skilled applicants with them,
which is quite important and beneficial too. Human resource tactics are one of them, which
provide many benefits to Aldi in term of creating value for workers as well as its business.
Organization has used key tactics that was helped to create great value for it. The following
examples of HRM strategies are-
High performance management-
It is one of the best strategic HRM concept that help Aldi to create the best value for
workers and its company as well, in term of managing the performance of applicants which in
return increase the productivity of venture (McClean and Collins, 2019). This kind of practice

includes incentive pay systems, recruitment & selection, relevant training, development or
growth opportunities etc.
Employee's engagement-
In order to increase the productivity and performance level of applicants at workplace,
which also created value for workers, Aldi has used current human resource management tactic
in term of engaging employees in context of decision-making procedure (Harrell-Cook, Levitt
and Grimm, 2017). It includes treating each candidate as partners or stakeholders that have right
to share thoughts and creative ideas with management. Employee engagement contribute to build
trustworthy relationship between top authority and all the applicant.
Training and development in context of relevant competences-
Supermarket along with the above human resource management strategies, may use the
current, that contribute to creating value for its business and staff members as well (Sareen,
2018). Through training, an applicant get chance to enhance their performance level and develop
new competence which they don't have. Employees skills and knowledge development
strategies, allow HR manager to create value for them within company in term of making them
able to grow at personal and professional level.
Performance appraisal-
It is the best strategic HRM concept that Aldi has utilized to create value at workplace in
context of staffs (Peerzadah, Mufti and Nazir, 2018). It helps to boost the morale and
performance of workers even better than last few years or months. Bonus, incentive, employer of
the choice etc., are included in list of approaches that may use in regard to performance
appraisal.
TASK B
Analysing the impact of regional and national culture on HRM practice in Aldi
National culture is defined as norms, beliefs, values and behaviour shared by population
of sovereign country. While European culture describe as sum of environment and cultural
practices carried out therein that is fostered and created by residents of any region.
Both put impacts effective and useful practices of human resource management within
Aldi in varied manners. For example, when firm plan to enter into Asian country where the
culture of local people is different from the beliefs that its existing workers have, may put
negative impact on each practice. In simple term, the culture differences bring challenges for

HRM, which they may deal by changing the way HR manager work and develop tactics such as
employees training & development. Local culture have direct impact on the compensation policy
set by the organizations that are related to various aspects that is tax, Cost of living, retirement
policy and pension scheme etc. Local culture are used by the mangers to motivate their
employees regarding their performance and organizational objectives. National culture have
impacts on corporations policies that includes performance appraisal, leadership style,
development opportunities and employee relations. In china the company have strayed it
business in 2017 by inspiring the customers to use hand-picked products in their living and
shopping in smarter way. Also, have launched by TMall global flagship store in china. National
culture are related to finding values, behaviours and attitudes of the people who are working on
the same workplace which also defines the characteristics of the Asian country. This also have
impact on the national culture at the time when the organization are entering into international
markets. Local culture are related to achieving the organization by focusing on different
strategies and styles that are made by the business or company. Local culture have different
impacts that is Recruitment policy which are depended on the cultural attitude of employment.
At the time of selection they follow slow and short process to hire the best employee which will
add value to their organizations. Local culture have direct impact on the training and
development policies that every employee has to undergo to understand the work, company and
its culture. The national culture becomes a very crucial factor when it comes to designing the
content of international human resource management. National culture is the content of HRM is
clearly defines the fact and concept that are related to comparative human resource management,
special segment that helps the company to know what is the difference of HRM in context for
different countries to know the characteristics of national culture.
TASK-C
organization's model of employment
Employment model is used by company to provide opportunities and job training to its targeted
clients that also includes high barriers that is homeless, at-risk youth etc.
There are different types of employment that are used by organizations that are Single tier, two-
tier and three-tier model (Ahammad, Glaister and Gomes, 2020).

Aldi uses three-tier employment model that means the company have to capture information
related to employment in different forms and tiers. Company use this model in form of multiple
employment terms with multiple assignments. That means there is work relationship between
employment status by giving them one or more assignments. Employment terms and associated
assignments are done automatically by manually adding terms which are belonged to exist
outside. Aldi uses different organizational levers that are used to create value. There are nine
different level that are used to for value creation but Aldi company uses this three levels:
Expertise: This is used by Aldi to develop skills, capabilities by access of data management
(Creating Value from Analytics: The Nine Levers of Business Success. 2021). The leaders of the
company share the subject matter of projects that are related to analysis the formalized roles that
clearly defines the career experience and paths investments that are used to develop the skills.
Culture: There are different culture for different organization. In Aldi they make their half o the
decision based on their data and analytic. In this level the company uses three-tier employment to
take new and innovative ideas from employment by giving them multiple assignments.
Trust: The main motive of the company is top create trust among their employees to build up
relationship between the individual employees and management. Trust helps them, to reduce the
cost and risk of conflict between different levels. This level helps Aldi employees to freely
communicate, express their ideas in different ways, they come up with new and innovative ideas
with solutions.
TASK-D
Difference between HRM and personal management using storey's 27

Belief & assumptions HRM Personal management
Management role The role of the human resource
management is
transformational leadership
(Beijer, and et.al., 2021).
Management role of personal
management is transactional.
Key relations Human resource management
works on having relationship
between the employees and
customers of company.
They have relation between
their labour management.
Corporate plan Human resource management
uses central plan for their
corporate plans.
Marginal plan is used by the
personnel management to
develop their corporate plan.
Behaviours and managerial
tasks
Human resource management
performs their tasks using
values and missions to develop
the growth of organizations.
In personnel management
tasks are performed using
norms, customs and practices.
Speed of decision-making The decision power of human
resource are very fast as the
operations of business are
working on their procedures.
Decision making is slow as
compared to human resource
management.
Focus of development
attention
The focus of HRM is learning
what are the cultural and
structural of company related
to its strategies that are made
for the growth of
organizations.
Personal management have
full attentions on courses that
have provided by the
company.
Job design The role of human resource is
developing the teamwork that
are created by giving
The job of personal
management are related to the
division of labour that means

employment opportunities to
the employees of the company.
the work is divided in different
forms and to the person who
are expert in that work.
Aldi is the Asian company that uses human resource management practices for its organization
practices. Human resource management are the approach that is used to manage employees,
culture and environment of company (Carnevale and Hatak 2020). The human resource
management are related to planning of training, development and performance management that
are used by Aldi to performs it operations. In Aldi human resource management have purpose
that is to create organizational, individual and societal goals. In 2017 Aldi have operated its
market in china with the flagship that is named as TMall global. In china it have grown its
business rapidly and also have won the trust of the Chinese customers. The human resource
management practices helps Aldi in different forms that are building their organizational culture,
planning for change, helps in training and development, gives information regarding health &
safety lastly helps in building goof relationship between the people of the organizations. These
helps company to make different strategies and plans that will develop the growth of company.
Human resource management in the company believes that people are the key of success for
Aldi. The main role of using this practices in Aldi is it helps in developing polices and
employing them by giving training related to the workplace.
TASK-E
Importance of local culture in HR practices
In organization culture are defined as collective behavior, beliefs, desires, actions prospects of
human beings in working environment. Local cultural play an important role in development
outcomes (Labella-Fernández, 2021). Instead, culture is often viewed as an outgrowth of a
particular region and dependent upon economic and other experiences, not an independent force
Culture is important form in Hr practices because it is:
 It helps in defining the way of living that is related to values and actions.
 At the time of hiring company uses this practices knowing the individual thoughts and
behavior in environment.

 By using this practices thing are managed very easily with less diversified workforce that
will affect the performance of organizations.
 Local culture result in improving performance both in term of individual and
organization.
 Function helps in identifying the rural residents and local communities that are related to
traditions, understandings, and values which are important for organizations at the time of
planning and improving well-being.
Employment rights act 1996: In this employment law Aldi covers variety of topics and
legislation that are related to the employment contracts, unfair dismissal, redundancy and family-
friendly leave (A comprehensive list of employment legislation in the UK. 2021). That are all the
rights which is give by the organization to its employee who are working with them in same
workplace. On context of international business this law means that rights given to the employee
are not to be dismissed unfairly. If the employees of the organization have to take leave then they
have to give written terms.
National minimum wage act 1998: This law are related to legally-enforced that says that
employees are paid on the basis they deserved to accord to their workplace. Aldi pay wages to
their employees as per the regulations set by the government of UK. As compared to
international business this law are used to set out or giving the minimum amount to the workers
according to their pay which is entitled to per hour. The wages are paid b y the company
according to their age. It is the legal requirement that is followed by both international and local
business.
Transfer of undertaking (protection of employment) regulations 2006: As per the
government of UK regulations and laws ensure the rights during a business transfer. This law is
very complex as compared to others as it ensures that staff receives fair treatment from the
employees. Further, in comparison of International business this law provides employment rights
to employees in context of changes and transfer of undertaking.

TASK-F
Good HR practices that is used by Aldi using examples
Human resource practices are used by the organization to develop their leadership in
staff. The best HR practice that is used by the HRM are related to the process and actions
at the time of making business strategy (Liu, Qingqing and Liu, 2021). For example
working with the management for ongoing performance evaluation can give benefits to
the business in various forms that are:
 Higher rate of employee productivity: Working with management in their performance
can give higher rate of productivity to the employees. At the time of performance the
supervisors and mangers pay more attention as compared to the practices on daily basis.
Working with management will help the employee to finish their work in more efficient
manner as compared to the employees who are still learning (Joyce and Vijai, 2021).
 Maintain organizational culture: At the time of performance the employees of the
company will have direct impact on the culture of organization. It is the duty of human resource
to see that are all the employees are performing better that will suit the company culture. At the
tome of working with management employee will obtain employee retention, good reputation by
increasing productivity and quality.
 Training and development: working with management will improve the skills and
performance of employee that are fit for business strategy. This will also help them to bring
valuable and innovative ideas that will result in growth of the company.
 Increases employee satisfaction: If the management of the company will make their
employees to work with them then this will result in form of motivation, support and good
experience.
Task-G
Recommendation to employess regarding HR practices
Aldi follows different HR practices which have resulted in growth and development that is
increasing employee satisfaction by giving proper training and development (Diaz‐Carrion,
López‐Fernández and Romero‐Fernandez, 2021). It can be recommended that Aldi can also use
this practices improving the productivity of the company that are:

 Providing security to employees: The HR can provide security to employees by giving
them regular opportunities. Company can give security in form of work, health and
safety.
 Selective hiring: The company must hire the employee who will add value to their
organizations. Is must have full knowledge and skills as per the wants of the Aldi. The
hiring person must be fit for the job that will bring new and innovative ideas for the
operations of the business and will also create the competitive advantage. It will also
include the ability, train-ability and commitment.
 Self managed and effective teams: It can be recommended that the employees of the
company are self managed which will result in good team work. Higher performance of
employee will result in growth and development at the workplace. It will also help
company to bring innovative ideas which will result in achieving the goals on faster
basis.
 It can be recommended that the managers or human resource must provide fair
compensation to the employees so that add value to the company. They can also use
different techniques that are related to selective hiring, benefits to employment and by
providing therm security.
 Aldi can also trainee their employees by bringing challenging assistants, developing
relationship and coursework. They can also give bonus to the employees who have
worked hard to achieve organization that will make them one step ahead from their
competitions (Collins, 2020).
 Aldi can also come up with different tasks or activities on weekly basis which will
increase the interest of employees. They can also give different section to employees on
daily basis that are ten minutes yoga or meditation on daily basis which will increase the
working power of the employees, and they can work in more attentive way.
CONCLUSION
From the above report it has been concluded that human resource management is one of
the most essential and helpful departments in the companies. Aldi falls under the category of
leading supermarkets in the European Union. The above studies reflected the value that were
created by Aldi in developing strategies that are high performance management in term of
managing the performance of applicants which in return increase the productivity of venture.

With the assistance of report analysis of local and national culture of Human resources are
written. Along with this organization's model of employment and difference between HRM and
personnel management are described using storeys model. By the evaluation of project
Importance of local culture in HR practices and good HR practices are explained using
examples. Lastly by the analysis of the report recommendations related to employment in HR
practices are given that can be used by the Aldi to grow their business operations.

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