Human Resource Management and Performance

This assignment delves into the crucial relationship between Human Resource Management (HRM) practices and an organization's overall performance. It requires students to analyze various HRM strategies, their effectiveness in enhancing employee engagement, productivity, and ultimately, organizational success. The analysis draws upon provided academic articles and case studies, highlighting the challenges and achievements within the field of HRM.

HUMAN RESOURCES
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Importance of HRM along with its purpose and functions in an organisation................1
P2. Strengths and weaknesses of approaches for recruitment and selection process.............2
TASK 2............................................................................................................................................3
P3 Benefits of HRM for employer and employee in ALDI...................................................3
P4 Evaluation on effectiveness of different HRM practices..................................................5
TASK 3............................................................................................................................................6
P5 Importance of workers relations to influence HRM decision-making..............................6
P6 Key element of employee's legislation and its impact on decision making process of HRM
................................................................................................................................................7
TASK 4............................................................................................................................................9
P7 Application of HRM practices..........................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An organization consist many departments who performs different activities but with
common purpose is to achieve business objectives and goals within specific period of time. The
main role behind success of a company is efforts of people. Therefore, they are the most valuable
assets of enterprises. Introducing manpower into workforce, providing them benefits and make
them able to work accordingly are all done by human resource management of a firm. HRM
performs various activities like staffing, planning, controlling and coordinating the organisations.
These processes help companies to gain productivity of workers as well as high return on
investment. In order to recognise importance of HRM in organisations like ALDI following
report has been made. This company deals in retailing sector having 7000 stores in more than 70
countries. It has more than 2million employees in outlets so, to manage those managers of this
company use various methods ((Heikkilä and Smale, 2011). This assignment entails main
functions of management along with purpose in present company. It also describes role of
managers in enhancing profitability and productivity of organisation.
TASK 1
P1. Importance of HRM along with its purpose and functions in an organisation
The main function of human resource management in an enterprise is to recruit best
talented persons in workforce. HR managers always engage in planning workplace which states
that a team having required skills and abilities to work according to company’s desire (Kaufman
and Miller, 2011). With the help of these workers, employers become able to achieve business
goals and objectives on time. Along with this, managers used to provide essential training
programs to employees to make them more capable. Some major functions of management in an
organisation like ALDI can describe as below:
Functions of HRM:
Recruitment and Selection: As stated earlier HRM uses many methods of recruitment
and selection to fulfil vacancy of a company. In context with, ALDI Company, its managers use
online procedure to recruit employees who consists effective knowledge of customer service.
Training and Development: HR managers of ALDI provide essential training programs
to not only new persons but also existing workers also. This company is known for its prosperity
at UK marketplace, so such type of programs help in enhancing skills of employees. This would
1

make them able to provide customer service as well as to work on new techniques with full
efficiencies.
Compensation & Benefits: This firm is also facilitates workers with compensation and
benefits (Keegan, Huemann and Turner, 2012). It includes flexible working hours, casual leave,
life-term insurance etc. so that employees can work with enthusiasm. This would assist company
to get their retentions.
Ensuring Legal Compliance: Along with providing compensation, HR managers of
ALDI inform recruiters about terms and conditions of working organisation and rights of them in
company.
Performance Appraisal: In order to make employees happy and generate job satisfaction
in them, superiors of ALDI provide performance appraisals. It includes extra bonus, holiday
trips, incentive etc. which appreciate workers for their performance.
Purpose of HRM
Since human resource management performs various activities and functions in
enterprises but, main purpose behind all these is to maximise productivity of workers. Skilled
and high qualifies workers help in enhancing profitability of company as well as achieve set
goals within limited period of time (Heikkilä and Smale, 2011).
P2. Strengths and weaknesses of approaches for recruitment and selection process
Human resource management conducts various methods to recruit high skilled and
qualified workers in ALDI by concerning on its objectives i.e. to provide good customer service.
In context with recruitment which states a process of hiring persons through internal and external
resources, they used both methods for fulfilling vacancies in organisations. Some major
advantages and disadvantages of these processes can be described as:-
External source: This process includes advertisement procedure for recruiting
candidates in firm. HR managers, therefore, used to make job specification, questionnaire format
etc. procedure for recruitment. Along with this, they use campus interviews, employment
exchanges, and online methods etc. for searching best candidates (Guest, Paauwe and Wright,
2012).
Strength Weaknesses
 This process helps in providing a list of  The main weakness of external source
2

interested candidates for a specific
position in a firm. These applicants
have possessed all eligibilities required
to fulfil vacancies.
 External method assists companies to
get persons having fresh and innovative
ideas.
of recruitment is that it requires lot of
capital and time.
 It requires a long procedure like
screening resumes of various
candidates, legal verifications of them
and more for recruitment.
Internal source: It entails managers to recruit persons from within an enterprise. In this
management used to transfer job of employees by giving promotions or demotions to them
(Gomes and et. al., 2012).
Strength Weaknesses
 Through this process, managers can
provide job satisfaction in employees as
well as brings their morale up.
 Getting new positions in company
motivate workers to work with full
enthusiasm.
 It generates competition among people
of firms which impacts on their relation
too.
 Employees expect much when they get
new position from organisation which
sometime not possible to give by
managers.
.
Sources of Selection method in ALDI Company: Managers of this firm uses internal
and external procedures for recruitment according to requirement of jobs. They use online
procedure also which requires many documentation like posting job requirements on web
portals, in newspapers etc. But this method needs much time for further selection procedures.
TASK 2
P3 Benefits of HRM for employer and employee in ALDI
Practices of HRM are essential part of companies especially for big organisation; it helps
in managing situations of workforce. Human resource activities help enterprises to enhance
productivity of employees which assist in accomplishing set targets on time (Benefits of
employee and employer through HRM practices. 2017). Through practices, employer and
3

employee get various benefits like sharing views and opinions, developing new skills and
knowledge’s etc. In ALDI Company, benefit of these practices can be explained as:-
Employee’s Benefits
Training and Development: In order to develop abilities of workers, HR managers of a
company used to provide trainings programmes to them (Kim and Bae, 2017). It facilitates
workers to widen their knowledge’s in a particular field so that they become able to work in a
desired manner. ALDI Company provides training like apprenticeship, on-the-job etc. to
organise its existing workers and new recruiters with changing technologies. This will help
employees to provide effective services to employees.
Resource of Information: With technological changes, it is necessary for all firms to
adopt latest techniques in operations. It helps them in making innovations in products or services
through which they can gain competitive advantages and sustainability at marketplace.
Therefore, HR practices involve methods like inform employee about changes at workplace as
well as keep them update with the same. In context with ALDI, its management used to organise
conference meeting with workers to communicate them about new techniques.
Stimulate Employee: In this process, managers used to provide different appraisals
programs in order to appreciate workers for their efforts in achievement of company's success. It
includes safe and healthy working environment, extra wages, flexible working hours etc.
Through these benefits, employees feel happy and motivated as well as retain in a firm for long
time.
Employer’s Benefits
Enhance benefits of Organisation: Getting commitment of employees and retain them in
long time in companies help employers to gain high return on investment and revenues. It
increases their performance and productivity at marketplace (Kultalahti and Viitala, 2015).
Organisational Culture: The management of ALDI provides diversities in organisational
culture. Diversification provides fair, transparent and high performances of employees. This
would help owners to gain honest and hard-workers at workforce through which they can gain
sustainability easily.
Decisions Making Assistance
4

Human resource manager of ALDI provide flexible working hours to employees as well
as supportive and healthy atmosphere of workers. Friendly atmosphere assist workers to share
their views and opinions through which employers can get their feedback in decision-making
process. Including employees in such procedures reduces chance of resistance also.
P4 Evaluation on effectiveness of different HRM practices
The best HRM practice in an organisation is to frame activities like training. These
practices proved to be effective if employees can work in desired manner. In retailer companies,
like ALDI, through training programs workers become able to handle complaints of customers in
own way. They can fulfil demand of people in outlets on time as well as interacts with them in
efficient manner (Lamba and Choudhary, 2013). Thus, through these practices of HRM
employer can raise productivity of workers which enhance profitability and growth of business
as well.
Improvement in Abilities and Skills of Employee
In order to improve abilities and skills of employees, HR managers of ALDI not only
give training programs but also used to perform some entertainment activities for freshness of
their minds. They provide timely picnics, holiday tours, yoga activities and more which help
workers to get some relaxation from hectic schedule of work. This would help people to
overcome from workload pressure also.
Effective connection grouping personal and team
HR managers of ALDI organise various activities to involve workers in team. They
always try to engage people in group so that they can share their views and opinions to each
other. This process helps managers to generate good relationship among workers. Along with
this, working in team assist companies to reduce conflicts between people (Nijssen and Paauwe,
2012). Through which employees can accomplish target on time as well as increase sales
performance, customer service etc.
In terms of Return on investment
Training programs like apprenticeship, systematic and structured are used as techniques to
make workforce high talented. Since ALDI Company used to adopt latest technologies on
regular basis to carry its operations successfully, therefore, these programs help workers to work
5

on new system in a desired manner. Thus, through this practice of HRM, enterprises become able
to gain high return on investment as well as to increase sales performance.
TASK 3
P5 Importance of workers relations to influence HRM decision-making
Employees are the most valuable part of all types of companies whether they are dealing
in manufacturing and retailing sectors. Contribution of workers in achievement of success cannot
be neglected as these persons always support organisations to achieve their goals as well as stay
with them in all conditions. Therefore, it is a duty of human resource management to provide
them all benefits. For increasing productivity of workers HR managers should maintain
employee relation with employer in adequate manner so that they can help in accomplishment of
business targets (Vermeeren, Kuipers and Steijn, 2014). Relationship among people plays an
important role in decision making process of human resource managers. If HR department has
got success in maintaining good relation among employees then they can take proper decision
regarding working procedure and organisational culture of enterprises. But if they fail to manage
the same then it will arise conflicts and employee resistivity within business as well. Along with
this, impact of workers relations on operations of company including ALDI can be described as:-
 In big companies like ALDI, taking actions in change management is not possible by an
individual. So, HR managers need to discuss about changes with employees and
communicates with them in a proper way. This would help in getting reviews and
opinions on implementation of alterations.
 Include workers in decision-making procedure help management to bring up morale of
them as well as motivate to work hard.
 Good relations among workers and employees with management assist companies to
eliminate chances of conflicts.
 Along with this, HR team can easily identify needs and requirements of workers for
accomplishing a task. This will aid them in formulating policies and according to
employees.
Therefore, management of ALDI Company has used many methods to maintain relation
of employees like bargaining and consultation. Through collective bargaining, HR managers
used to take opinion and views of workers on a certain point and according to their feedback they
6

make decisions (Gheiratmand and et. al., 2015). This procedure helps in generating feelings of
equality and equally important like other persons in employees which brings their productivity in
companies. Along with this, for understanding needs of people, HR manager has elected a
representative of each department who inform them about demands of workers. Moreover, on
regular basis superiors used to consultant these representatives about how to generate healthy
and friendly relations among employees. It also promotes effective employee relation in an entity
for their betterment and growth.
P6 Key element of employee's legislation and its impact on decision making process of HRM
In order to provide equality in workers and protect them from humiliation, Government
of UK has made employee legislations. It includes structure and guidance for organisation which
states rights of employees. For eliminating discriminations occur on the basis of sex, age, gender,
caste, colour and nationality etc. from workplace, regulatory bodies has made mandatory for
organisations to comply their business with employment legislation. These regulations normally
impact on decision-making process of human resource management (Ganopoulos and et. al.,
2013). Therefore, HR managers are required to aware existing and new employees at the time of
recruitment and selection about their rights in company including appraisals, dismissals and lay-
offs procedure. These legislation impacts on decision-making process in following ways:-
 Employee legislations has made compulsory for companies to provide healthy and safe
working environment to workers. They much used safety equipments and precautions
to secure people who are working in their workplaces. If they didn't do so then
government can take necessary actions against them (Importance of employment
legislations on organisation. 2018).
 HR managers have to provide essential training and development programs to existing
and new workers in order to make them able to work in a desired manner. At the time
of recruitment, they should entails new workers about terms and conditions of
enterprise, pay scales, appraisal period as well as provide them inductive training for at
least three month. These programs help recruiters to become familiar with new working
organisation.
 Such regulations impact on CSR (Corporate Social Responsibility) of firms.
Employee legislations include various laws and regulations in order to create equality
among workers as well as protect them from all type of discriminations and harassment
7

(Ehrnrooth and Björkman, 2012). Such laws include Employment Rights, Minimum Wage Act,
Sex Discrimination Act, Equal Pay Act etc. All acts has different meaning but have same
purpose i.e. to generate equality among people in industries
Sex Discrimination Act 1984: This act has establishes in order to protect workers from
unfairness which occur on the basis of their gender, marital status, sexual orientation and
personal identifications. It also preserves employees from harassment and humiliations which
includes inappropriate behaviour with them by another person. If any such activity has done in
office that make persons uneasy and insecure while working then its responsibility of HR
management to take action against these. Along with this, if harassed persons think that no action
has taken then they can lodge complaint in regulatory bodies. Currently, ALDI has 7000 stores in
various countries in which millions of people are working (Durão and et. al., 2012). Apart from
large working organisation, its management always try to provide equality among workers.
The Employment Right Act: This law defend employees from unfair dismissals, heavy
workload and redundancy. It strengthens the right of workers to get flexible working hours and
parental leave in workplace. As stated in Section 86 of this Act, it is amendable for all
enterprises to give notice period to employees with proper reason before termination. Any firm
cannot terminate a worker without specific reason if they do then will be legally penalised by
government. Section 135 Act include redundancy payment that provides the right to
compensation for an employee. An employee can demand compensation if his job becomes
obsolete. This redundancy payment can be calculated on basis of employees experience in a
company as well as his age also matters in the same.
Equality Act 2010: This is the most powerful act established in 2010 which replaces all
previous laws of employment legislations. Through this law, UK government gets much success
in eliminating illegal discrimination, harassment and humiliations from workplace of
organisations (Costea, Amiridis and Crump, 2012). Equality Act provides various rights to
employees like equal opportunities for all people to get jobs according to their skills and
qualifications. Therefore, HRM of ALDI provides equality among workers by giving equal
salaries on the basis of their jobs, flexible working hours in order to reduce stress and heavy
workload pressure. Along with this, for their retentions managers provide appraisals like
incentives, holiday tours, insurance and pension scheme etc.
8

TASK 4
P7 Application of HRM practices
A retailer company like ALDI can achieve its objectives only with the efforts of workers.
This company has main goal is to gain high retention of customers, therefore, it needs to replace
CRM (Customer Relationship Manager with) with new one who has possessed all required skills
and knowledge. With this assistance, its HR manager has made job specification and further
documents to recruit best person for this job in the following manner:-
Job Specification
Job Details
Post: Customer Relationship Manager
Department: Customer Relationship Management
Job Purpose
 Maintain relationship with customers in order to optimise long term value
 Manage demands and complaints of customer efficiently
 Determine ways through which workers can enhance experience of each customer so
that they can retain with firm.

Roles & Responsibilities
 Assign workload to employees according to their skills in order to meet project on time
 Develop short-term goals for achievement of long-term targets.
 Set bold aims and objectives with clear vision for development of customer relations.
 Formulate strategies by concerning on issues related to consumers.
 Engage employees in group and leads them proper by providing appropriate facilitates.
 Enhance sales performance
CV:
Curriculum Vitae
Name:
9

Address:
e-mail id:
Contact No.:
Objectives:
Aggressive Customer relationship manager in big retail companies who assess an effective deal
of information to provide best services. Worked with sales and customer service departments
so, able to update policies regarding consumer services.
Qualification:
 Master of Business Administration
 PhD
 Graduate in commerce faculty
Experience:
Ten Years of experience in CRM as officer
Skills:
 Excellent Corporate Communication skills
 Dedicated to create high customer service
 Interact consumers to get their feedback with full efficiencies
 Ability to resolve conflicts between workers
 Believe in providing ongoing training to all associated workers.
DNA:-
 Driven and energetic
 Sense of urgency
 Competitive nature
Creation of Structured Interview: After getting list of applicants by advertising job
specification on websites, newspaper and other resources of social media, HR managers have to
formulate some questionnaire for further interview procedures (Chang, Chiang and Han, 2012).
This process will help committee to choose a right candidate for specific position of CRM
department. Therefore, Managers and other committee members has made following
questionnaires to judge skills of candidates:-
 Introduce yourself into one line.
10

 According to you what qualities a customer relationship manager should have?
 How can you manage conflicts among large number of employees in a workplace?
 What can you maximise productivity of workers?
 Elaborate the term CRM.
Offer Letter: Through analysing skills and knowledge of candidates, HR managers will choose
a right candidate (Bondarouk and Ruël, 2013). So, it is a duty of them to provide offer letter to
selected applicant who includes roles and responsibilities of CRM manager in retail industry, pay
scales, working hours, joining date and more. This would help new recruiter to know duties as
well.
CONCLUSION
From this report, it can be summarised that human resource management is main department
of an organisation whose main function is to provide workers. HR managers used many methods
to recruit best talented workforce within workplace. Along with this, managers manage people of
all departments as well as their activities and provide them various facilities so that they can
work in a desired manner. Efforts of workers assist companies to achieve success and growth in
business appropriately. Therefore, managers used to create healthy and positive working
environment which help them to perform their job roles adequately. Superiors of human resource
management concerns on employee legislation and comply workforce accordingly.
11

REFERENCES
Books and Journals
Bondarouk, T. and Ruël, H., 2013. The strategic value of e-HRM: results from an exploratory
study in a governmental organization. The International Journal of Human Resource
Management. 24(2). pp.391-414.
Chang, A., Chiang, H. H. and Han, T. S., 2012. A multilevel investigation of relationships
among brand-centered HRM, brand psychological ownership, brand citizenship
behaviors, and customer satisfaction. European Journal of Marketing. 46(5). pp.626-
662.
Costea, B., Amiridis, K. and Crump, N., 2012. Graduate employability and the principle of
potentiality: An aspect of the ethics of HRM. Journal of business ethics. 111(1). pp.25-
36.
Durão and et. al., 2012. Bone regeneration in osteoporotic conditions: healing of subcritical-size
calvarial defects in the ovariectomized rat. International Journal of Oral &
Maxillofacial Implants. 27(6).
Ehrnrooth, M. and Björkman, I., 2012. An integrative HRM process theorization: Beyond
signalling effects and mutual gains. Journal of Management Studies. 49(6). pp.1109-
1135.
Ganopoulos and et. al., 2013. Barcode DNA high‐resolution melting (Bar‐HRM) analysis as a
novel close‐tubed and accurate tool for olive oil forensic use. Journal of the Science of
Food and Agriculture. 93(9). pp.2281-2286.
Gheiratmand and et. al., 2015. The effect of mechanical milling on the soft magnetic properties
of amorphous FINEMET alloy. Journal of Magnetism and Magnetic Materials. 381,
pp.322-327.
Gomes and et. al., 2012. HRM issues and outcomes in African mergers and acquisitions: a study
of the Nigerian banking sector. The International Journal of Human Resource
Management. 23(14). pp.2874-2900.
Guest, D. E., Paauwe, J. and Wright, P. eds., 2012. HRM and performance: Achievements and
challenges. John Wiley & Sons.
Heikkilä, J. P. and Smale, A., 2011. The effects of ‘language standardization’on the acceptance
and use of e-HRM systems in foreign subsidiaries. Journal of World Business. 46(3).
pp.305-313.
Heikkilä, J. P. and Smale, A., 2011. The effects of ‘language standardization’on the acceptance
and use of e-HRM systems in foreign subsidiaries. Journal of World Business. 46(3).
pp.305-313.
Kaufman, B. E. and Miller, B. I., 2011. The firm's choice of HRM practices: Economics meets
strategic human resource management. ILR Review. 64(3). pp.526-557.
Keegan, A., Huemann, M. and Turner, J. R., 2012. Beyond the line: exploring the HRM
responsibilities of line managers, project managers and the HRM department in four
project-oriented companies in the Netherlands, Austria, the UK and the USA. The
International Journal of Human Resource Management. 23(15). pp.3085-3104.
Kim, D. O. and Bae, J., 2017. Employment relations and HRM in South Korea. Taylor &
Francis.
Kultalahti, S. and Viitala, R., 2015. Generation Y–challenging clients for HRM?. Journal of
Managerial Psychology. 30(1). pp.101-114.
12

Lamba, S. and Choudhary, N., 2013. Impact of HRM practices on organizational commitment of
employees. International Journal of Advancements in Research & Technology. 2(4).
pp.407-423.
Nijssen, M. and Paauwe, J., 2012. HRM in turbulent times: how to achieve organizational
agility?. The International Journal of Human Resource Management. 23(16). pp.3315-
3335.
Vermeeren, B., Kuipers, B. and Steijn, B., 2014. Does leadership style make a difference?
Linking HRM, job satisfaction, and organizational performance. Review of Public
Personnel Administration. 34(2). pp.174-195.
Online
Importance of employment legislations on organisation. 2018. [Online] Available
through:<https://www.coursehero.com/file/p5t90lv/P6-Identifying-the-key-elements-of-
employment-legislation-and-the-impact-it-has/>
Benefits of employee and employer through HRM practices. 2017. [Online] Available
through:<http://smallbusiness.chron.com/effects-hrm-workplaces-41697.html>
13