Impact of HRM on Employee Engagement and Performance

This assignment delves into the crucial role of Human Resource Management (HRM) in organizational success and employee well-being. It examines how HRM practices, including decision-making involvement and relationship building, impact employee engagement, performance, and overall workplace dynamics. The analysis considers the significance of treating employees as valued assets and fostering a positive work environment through effective communication, problem resolution, and employee development initiatives.

EMPLOYEE
RELATION

INTRODUCTION
The employee’s relations are defined as the management of relationship between employees,
Working in organisation. The objectives of the employee relations for business success is to develop
and maintain good relationship between the workers and management for more productivity and
achieving goal of organisation. Maintaining employee relationship is basic requirement of any
successful organisation it helps the firm in achieving their goal. Without managing these relations,
the company would not able to reach their aim (Buttliere and Buder, 2017). Strong employee
relations give better productivity, it creates employee loyalty, it helps in conflict reduction,
employee relations help in motivating employees. Aldi company has been selected in this study.
Supermarket chains with more over 10,000 stores in 18 countries. Aldi has more than 30,000
employees working in UK. This report is based on Aldi's employees’ relations. This report, will
discuss on the various topics, which are beneficial for the Aldi's worker's relationships and help to
improving productivity of business.
TASK 1
1.1 Explain the unitary and pluralistic frames of reference
There are two different perspectives of employees relations such as unitary and pluralistic
frames of reference. Both are having different perceptions and views, for employee’s welfare in
Aldi company. Unitary frames of references are a style of thinking, values of assumption to
determine employee relations in company. The management think that workers and employers work
together for common goal, value and interest (Effective Workflow for Collaborative Decision
Making, 2009). Value chain activities are developed by evaluating individual’s interest and action
chosen by employees of Aldi. Unitary process helps in analysing different types of teams that will
be beneficial for organizational goals and objectives which will increase efficiency of company.
organisation's management and all the employees are common objectives, purpose to achieve goal.
Sometime conflict starts from two people in organisation it effects other employees as well in firm
Pluralistic frames of reference are a refer that collections of different set of values, beliefs,
behaviours and attitudes. Organisation have different powerful subgroups, each group has its own
lawful loyalty, their objects and leaders. It helps in providing organisational and personal objectives
as well as the benchmark for effectually, efficiently functionally of Aldi to describe their employee’s
relations. Pluralist occurs when disagreements between managers and workers due to
misconception and lack of communication in company. it can be both rational, inevitable form
managerial and employee groups. Company is adopting polices and structures according to
worker’s values, perceptions, attitude and behaviour. Unitary and pluralistic frames play most
important role in Aldi company for development of the employees and organization in different

ways, it is helpful for generating better results and analysis. However, to protect the values and
interest of employee, the workers have their trade union which is the association that aims at
protecting the right of workers in any circumstances. These unions stand for staff against
employees. In this the union are effective because the members of association focuses on
negotiating with management for the sake of employee benefits and interest.
1.2 Alteration in trade unionism which affect employee relations.
Trade union is considered as a society where employees and labours unite. The objective of
this to providing and promoting their interest and goals. It focusing on development of the
employee relations. It helps to improving attraction and growing the relations in manpower. Trade
union affects the social policies and those factors that makes balance of workforce. Different
changes in trade union have direct impact on the employee relationship in Aldi (Brett and
Thompson, 2016). These changes mainly relate to the evolution of employee relations in the
organisation and its unification with industrial relations. This is on relating to the traditional concept
of industrial relation that merely indicated the formation of those institution that regulates the
occupation with a prime objective of determining the employment related rules.
It was much focussed on the procedures of collective bargaining that later developed
towards the system of rewarding the workers as a way of appreciating their efforts. This is referred
to be a major change in trade union that positively impacted upon the concept of employee
relations. As a result, to which, Aldi is now required to protect the interest of their appointed
workers and regulate their treatment to avoid any state of partiality at the workplace (Stilwell and
et.al., 2016). Such type of development has also resulted in deterring several aspects of HRM with a
focussed approach of dealing the employees in the most effective manner. It together resulted in
much developed organisations that duly consider the welfare of their employees and leads the work
in a participatory manner. The employee related policies are much more developed in terms of fairly
remunerating the workers and engaging them in the process of decision making.
1.3 The role of the main players in employee’s relations
It is not simple to maintain good relationship between the employers and employees. Firm is
a group of individuals that people are effort simultaneously to attaining the goal. There are some
important key players in organisation to maintain the employee’s relationship. They are most
essential for the company. The Aldi also has some crucial member for managing workers.
11 Role of the manager: - The managers in Aldi company play the many more important works
that is good for organisation as well as the workers. There are following essential role of the
manager in the organisation.
o The manager should behave equally with all the worker in workplace, they should

avoid partiality.
o Communication system should be open and feasible to all.
o To promote the healthy competition at the organisation.
o Manager should give the new ideas about new projects.11 Role of worker: - Aldi company's employees have very important duty, they dealing with the
costumer in proper manner and preform their task perfectly (Ferreira, 2017). Therefore, they
are liable for the follow the rules and regulations in their supermarket. The Company's
retail-worker of organisation is should have skills and knowledge of stocks. shelves. Besides
that, they have proper knowledge of assists customer in their supermarket.11 Role of government: - Government develops the difference rules and regulation that
organisation have to follow those rules and regulation. The rules and regulation involves
taxes, federal trade commission and department of labour law (FTC).
TASK 2
2.1 Procedures ALDI should follow when dealing with different conflict situations
ALDI Retailer company was founded on 1948 in the mining town of Essen, Germany as a
small food store by Anna Albrecht. After they open a self-service store in 1957.
Conflicts Situation: -
Personal Relationships with suppliers: - The fair & lawful business practices. The selection of good
suppliers must have made on the objective of the organisational criteria that includes integrity,
quality, price, delivery, because that affect the production.
Conflict within the individual: - An individual conflict is that conflict which affect the entire the
organisation later on.
Interpersonal Conflicts: - It involves the conflicts between two or more organisational individuals.
There may be two managers comparing the limited capital & manpower resources or the conflicts
between the lower level subordinate to their superiors (Sanoff, 2016).
Conflicts between the individual & the group of the organisation: -
The individual may disagree to goal is or the maximization of profits & earnings will occur the
groups.
Inter-Organisational conflict: - The conflict occurs between the organisation which is depend on the
overall organisation objective. This may occur between buyer & suppliers about the quality,
quantity & delivery issues & the production is not on the basis the customer satisfaction level.
Dealing with the organisations conflicts: -
Deal with calm & observing nature: - Each and every organisation faces the conflicts whether it is

small organisation or the multinational company. This is very essential behaviour which rationally
work on the business reputation. An observation within the organisation & on their competitors is
very much essential.
Carefully understands the organisational needs & the customer’s needs: - The understanding the
needs & the satisfaction level of the internal organisation & the external customers will also
important.
3 A's in the internal management: -
An individual can use 3 A's as Appropriation, Acknowledge, Apologise. These three aspects of the
manager will affect in the hierarchy of the organisation.
Focus: - One can be focussed on their tasks, priorities are the elements, planning the future by
analysing the past experiences & the competitor’s strategy will help the organisational work.
Set Boundaries: - Understanding the culture across the boundaries then introduce the product that
strategy will help to remain in the market world (Guest, 2017).
Keep communicating & follow up strategy: - The follow up with the customers is another essential
aspect which issued by the organisation by resolve the conflicts.
2.2 Explain key features of employee relations in a selected conflict situation
Performing in competitive work environment, many situations can take place which creates
different types of conflicts such as if the work is not properly assigned or an issue may arise for
systematic allocation of work. Here the employees may feel that lower division employee are
getting loads of work as compared to upper level subordinates, in this situation collective
bargaining can take place between the employees to reduce the conflict situation (Swailes and
Blackburn., 2016). Discrimination between the employees will also raise a question and employees
will face difficulties and conflict situation will be created, this will be against the company's ethics
and arguments between the employees and subordinates. In this situation employees at different
position are affected and they can't focus on delivering proper results with their work and a decrease
in their potential and that might affect the sales and profit of the company. The best way to manage
conflict is negotiating keeping in mind interest of employees and organisation. Therefore, for
handling employees conflict, the management focus on analysing the root cause of problems. Apart
from this the employer discusses issue with every employee separately to develop critical
understanding. Then comes mutual discussion in which the management aims at making employee
understand the problems and importance of working together. Developing understanding among
workers on common goals and work by negotiating with interest helps the employer in resolving
conflicts.
Apart from this, conflict situation arises when employees start complaining. If the upper level
management want that the store works properly and their business is not affected they need to

answer the employees question and resolve their problems and create a healthy working
environment. Another issue that might raise conflicts is the workplace injury to the workers. This is
the managers look out to keep a check in the workplace safety measures and provide a good
workplace and take measures for it in employee’s favour (Ackers, 2017). However, if this situation
arises it is also because of employee’s misconduct towards the work and not taking safety measures.
This situation can be resolved by providing medical assistance to the employees and compensation
in the part of injuries and giving pay which the employee will lose due to medical assistance. These
measures need to be taken care of as they have to make a healthy relationship and a good work life
balance.
2.3 Evaluate the effectiveness of procedures used in a selected conflict situation
On considering the conflicted situation, the top level administration of Aldi is responsible to
consider applying various effective measures that tends to resolve the dispute in a suitable manner.
Though, in order to overcome such conflicted circumstances, the managers can together consider
implementing certain dispute handling techniques. In which, they can refer to provide a suitable
place to discuss upon the reasons behind the conflicted situation among the workers and their
employers (Gupta, 2017). Herein, they should together acknowledge the use of an ethical
communication with clear and honest instructions to make it easy for the employees to understand
the same. Each and every worker at the workplace must understand their accountabilities and
obligation towards the task and act accordingly. Thus, the workers can be provided an opportunity
to share their views and thoughts to solve the problem and the rising conflict in an appropriate way.
This is mainly to take suitable measures and quickly resolve the situation. Beside this, the workers
together have a prior right to raise their queries in front of their employers and receive proper
response for the same.
Procedures: -
Formal way: - Under this the business organisation will advise with the specialised & the expertise
personalities on specific conflicts. Conflicts are natural part of life and in corporation it is natural.
In this concern, Human resource professionals will they to resolve the issues or management will
consult with the expert consultants. Human resource are the professionals who understand the
specific reason of the dispute & try to find out the solution with consulting with expertise and
specialised personalities. In this, the firm focus on developing understanding over the conflict and
issue raised in conflict. Further, the management focuses on mutual discussion in order to negotiate
for the sake companies and employees interest at same time. Delivering the best solution to resolve
issue on one common interest keeping mind interest of conflicting parties.
Informal way: - Under this conflict will resolved by within the organisation strategy. where
corporate level managers will take decisions regarding the conflicting issues (Jauro and et.al.,

2017). In this, they provide seminars, workshops and personal interaction with each and every
employee on the basis of their requirements obstacles they face in the organisations.
Negotiation: - The traditional dispute resolution process of the civil justice process is considered.
Analysing with the civil justice system litigation and trial with the judge or jury will take decision
who is right or wrong. The negotiation general meaning is settle the differences and conflicts. It is
basis on the back forth communication between the parties of differences with the aim of find the
solution of disputes. Negotiation is the method of the choice for resolving the problem which is
mutually acceptable by both the parties.
TASK 3
3.1 Understanding collective bargaining and negotiation process
Negotiation is different from consultation as consultation means only to exchange of opinions
between workers and their employer not to reach out any decision. The main aim of negotiation is
to reach out to a decision and to create agreements. On the other side, collective bargaining is the
process of negotiation between the employer and the employee whenever any dispute arises
(Timming and et.al., 2017). The employees always rely on their union members who certainly
represent them during the bargaining process. The issues which form a part of bargaining and
negotiation include working conditions, employee safety, training, wages and lay-offs. Whenever
any employee or the group of employees face any such kinds of mentioned problems they can go to
the employee unions the employee union to the employer and then the process of bargaining and
negotiation starts.
The collective Bargaining process mainly includes five major steps:
 Preparation- this means to choose the negotiation team and the representatives from both the
union and the employer side. The both the parties should have full knowledge of all the rules and
regulations should be that much skilled in negotiation and labour laws. The should also examine all
the available information to determine the strong standing for negotiation.
 Discussion- both the parties have to meet at a certain place to make the rules for the collective
bargaining negotiation process. ALDI also make their negotiation teams from both the side to
discuss the problems faced by the employee side (Khoreva and et.al., 2017).
 Proposal- the representatives from both the side in the ALDI make their opening statements,
outlines their options and possible solutions to the issue at their end. They need to study the
situations carefully to make the outline of their proposal. Without the full knowledge of the
situations we cannot came to a specific solution.
 Bargaining- after the proposals are made parties discuss the potential compromises. Then the

parties in ALDI bargains to create agreements that is acceptable to both the parties. Then the parties
make the draft agreement which is certainly not binding instead a stepping stone to come to a final
collective bargaining agreement (Gold, 2017).
 Final agreement- once the agreement is made between both the parties of ALDI it must be put in
a writing not it the drafted form, signed by the parties and put into the effect on as possible. The
final agreement is duly signed by both the party leader as is the new set rules.
The collective bargaining plays an important role in determining the problems faced by the
employees in the working conditions. As the working hours are certaining been reduced from 7
hours to 8.5 hours they can also start the night shifts. To come to the specific decision, the company
need to follow the proper procedures otherwise a chow will be created. There will be no specified
decision to be made and the problem will pertain as it was (Low, Bordia and Bordia., 2016). ALDI
should first make out what is the actual problem without knowing the problem or the reason of
dispute agreement cannot be made. Then ALDI should choose the negotiation team and the
representatives from the team. They should then discuss what should be done they both meet to set
the grounds rules which should be followed during the procedures. They must then present the
outline of the matter which they will be negotiating. They will be allotted some time to discuss
about problem. Then again, the both teams meet for further discussion with each-other. They will
then do the bargaining from the following proposal the parties then will discuss over the points. The
rough draft then would be formed according to the discussion between them. After the rough draft
the final agreement would be created which is necessarily to be put in writing, duly signed by both
the parties and put into force a soon as possible.
3.2 Identifying the impact of negotiation strategies for ALDI
One of the negotiation strategies are collaborating style is involved to ensure both the parties’
needs are meet. It has its own strengths and weaknesses and can be used in various types of
situations.
As by the employee side the main problem faced by them is of working hours. They need the
working hours to be reduced to 7 hours instead of 8.5 hours. Due to this, job of personnel become
exhaustive for them due to continuation of 8.5 hours working. The collaborating style will impact
the situation of working hour strategies. For the smooth functioning of operations ALDI requires to
ensure that needs of both company and employees are fulfilled. Moreover, if employee of the
company will not be satisfied by the agreement then it influences the sales negatively. Thus,
management team of ALDI is required to make decisions that offer benefit to both employer and
employee. There should be cooperation between both the parties without which the set agreement

can't be made.
Both the parties should always listen to each other viewpoints to come to a decision.
According to the workers side the working hours should be reducing in such a way that the
company monthly targets are achieved. The supermarket is not hampered by the decision of
reducing the working hours (Buttliere and Buder., 2017). While doing collective bargaining the
team member should see that no other dispute arises because of the discussion. They both should
keep their viewpoint in a well-behaved manner avoiding any further dispute. All the possible points
should be elaborated in front of each other. Because of the reduced working hours ALDI can suffer
the decreasing sales of the product. Decreased sales will largely impact the revenue generation part
of the company this will in turn decrease the profit of the firm.
TASK 4
4.1 Assessing the influence of EU on industrial democracy in UK
Because of present of EU influence a new partner based relationship where unions and
management work towards same goal exist in the British industry. The Unions are now taken as an
institution where it educates management and the employees the benefit of involvement of the
workers in the decision-making process (Aslani and et.al., 2016). EU helps ALDI in setting their
long-term objectives and also suggest strategies for betterment of the business. The European
Monetary Union can increase the wage dumping which is a practice of paying worker less than the
standard rates which are set by the industry. An arrangement which involve workers in making the
decision, sharing the responsibilities and authority in the workplace is known as Industrial
democracy. European union regulation aims at protecting human rights in which the government is
focused on providing healthy and safe work environment to employees. The regulations are focused
on promoting employee in decision making process. In accordance to EU every company is liable to
par employee as per minimum Wages Act. Apart from this, the EU regulation are focused on
enabling free wand flexible working environment to all employees.
From early 1970s EU is attempting towards harmonization of employee participation in the
industrial democracy. Employee also involve in the decision-making process of the economy which
will increase their performance and also enhancing their contribution in the growth of organisation.
The direct participation will give more rises to high employee involvement. If the employee is
directly participating in the decision making then the organisation will know that what worker
actually want, what are the problem faced by them and how can they both solve the problems. In
UK industrial democracy was introduced by European Union. For the growth of the individual and
the organisations including ALDI employee participation is necessary. Without the participation of

the employee the higher authority will not be able to identify the problems of the employee.
4.2 Analysing methods to be used to increase worker’s engagement and participation in the
decision-making process in Aldi
Engagement of employees in decision making process contributes in successful value
creation in various companies. Through this extent worker should involve in organizational
decision-making process. Some of the workers and trade union leaders say that participations with
administration bodies as balanced partners.
There are several of ways through which workers can engaged by ALDI in decision making
processes: Participation at the board level: Representation of workers at the board level is famed as
industry democracy. This can be plays significance role in securing the interests workers.
Trade union leader can put whole the problems and issues of the workers in front of
administration bodies and suggest them to invest in workers benefits and introduce
employee’s beneficial scheme (Petrou, Demerouti and Schaufeli, 2016). Engagement with the help of Ownership: Another way of ensuring employee’s
engagement in organizational decision making is devising share of the company. Involving
them to purchase equity share advancement of salary and some other financial benefit to
keep them involved in decision making. Participation with the help of suggestion schemes: -Motivate and encourage organization
workers to come up with innovative ideas can working with higher efficiency and
effective manner within the company. In various matters like, cost cutting, waste
management, safety measurement and reward systems management suggest them for
effective working (Sanoff, 2016). Involvement through job enrichment: Aldi management encourages workers in terms of
expanding the job content and used such motivational tools and rewards to the current job
profile in a better way to keep employee’s participation in managerial decision making.
Job enrichment offers freeness to the workers to accomplish their desires and use their
experience for handling daily basis organizational problems.
 Engagement through quality circle: Quality circle is a group of five to ten people who are
experience and experts in a specific area. They accomplish regularly basis target and solve
the problems in which they are expert (Timming and et.al., 2017).
Employees can be engaged in company’s decision making through many of the processes

discusses above. Therefore, others ways such as financial participation, involvement through team
working, TQM, which they can contribute their view in making the companies as better working
place.
4.3 Evaluate the impact of HRM on employee relations
HRM plays a significant role in organization’s success and employee's involvement in
decision making. On the other hand, the spirit of good attitudes towards work by workers can be
increased, if employee’s engagement in decision making is enhanced. The discussion on HRM rules
and regulations, its depends on the organizations and it will differ from one organization to another
(Aslani and et.al., 2016). Therefore, the soft-version of HRM concern treating workers as valued
assets. In order to finding-out impact of human resource management on workers' relationship, the
researcher must realise that the human resource of a company belong with management and
employee. When the top management allows workers to be participate in decision making on
matters which business concern them and the Aldi, it rises the commitment of workers. It is
contract, in which includes employees making decisions, rules regulations, authority in the
workplace.
Human resource management impact on employee's performance and efficiency and
behaviour to words motivate themselves for working in an effective manner and achieve the set
target of the organizations. The Human Resource Management of the company has taken a
significance steps in recognizing the value of relationship with the employees (Khoreva and et.al.,
2017). In order to try to resolve their problems and concerning to trade union leaders about the
rules and regulations or HRM policies and practices. HR manager also taken action on employee
issues and problems regarding working at the workplace and resolve their problems. Aldi invest
huge amount of money into employee development and career growth. Through this it will improve
their employee's skills and ability, in which they unable to perform their role and responsibility in
achieving the organizational aims and objectives.
CONCLUSION
In this report it is concluded that main objective of negotiation is to reach out to a decision
and to create agreements and Collective bargaining is the procedure of negotiation among the
company as well as the workers, whenever any dispute arise within the organizations. EU helps the
company in set-up their long-term objectives and also suggest strategies for betterment of the
business. Employees engagement in decision making process contributes in which they can
contribute their view in making the companies as better working place. Impact of human resource

management on workers' relationship, the researcher must realise that the human resources of Aldi
belong with management and employees and their impact on employee's performance and
efficiency and behaviour to words motivate themselves for working in an effective manner and
achieve the set target of the company.

REFERENCES

Online
Effective Workflow for Collaborative Decision Making. 2009. [Online]. Available through:
<http://makeitrational.com/features>. [Accessed on 2nd October 2017].