Running Head: Essay Introduction:The modern environment of operation for the organizations is highly dynamic and is constantly changing. According to this change, the companies keep changing their policies, rules, and processes. It means that if a company has to survive, remainrelevantandbecompetitive,ithastodevelopstrategicplans.Withthe introduction of various strategies in the company, the functioning of various departments gets affected. One such department getting majorly affected by these plans is a human resource. In this essay, critical examination of Aldi, UK human resource management, various functions of human resources, and key principles of human resources will be discussed.Howthehumanresourcesfunctionshelp ALDI,ingainingcompetitive advantage will also be discussed. This essay will cover the nature and characteristics of HRM, Aldi UK people management strategies, procedures, and tools. The current trends and patterns of the Aldi UK will also be discussed. In the end, the conclusion will be drawn. Human Resource Management:Company profile: Aldi is a global retailer in food segment and it started its operation in 1913. It is a reputable retailer, operating in various countries like USA, Germany, Australia, and the UK. It has more than 7000 outlets and storesinternationally. Aldiisaheadofitscompetitorsbecauseitprovidesquality products to its consumers by operating a competitive pricing strategy.The company is a flat organization and in the UK it is split into 5 regions, where every region operates at an individual level(Loewer, 2013). There are only 3 levels between the MD of the region and the store assistants. Quality, service, and qualityare the main three focuses of ALDI, UK. This makes it important for the HR of the company to attract and select those people who possess right skills, abilities, knowledge, and attitude. It is essential for the HR manager to employ an Area manager for the company who would qualify and fit in the 1
Running Head: Essay business, as area managers hold a crucial role in the operation of the company. It is the job of the Area manager to have a complete control of the stores, by motivating their subordinates and inculcating the culture of the company into them. HRM Nature and characteristics:The understanding and application of those policies and procedures which directly affects the workforce of Aldi, UK is known for its human resource management. It is very crucial for the company to remain in the business, by hiring and retaining qualified and knowledgeable staff at all levels. It can also be defined as a coherent and strategic approach to the ALDI’s working force management on an individual and collective level, which will ultimately lead to the achievement of the objectives(Ruddick, 2015). Basically, HRM is a part of a management process, so it draws the principles, techniques, andconcepts of management and apply it in the HRM. All levels of the ALDI are permeated in the process of HRM. In the store operation function of ALDI, there are only 2 HR Managers. The area managers of the company are trainedinHRandtodealwiththeissuesrelatedtorecruitmenttotrainingand development and performance management. The main HR manager of the company makes sure that all Area Managers are up to date according to the policies and legislation of the ALDI. The company has adopted a grandfather technique for its HRM, where the store managers focus on the stores' operations and deal with employees and the line manager reports to the Area Manager for the HR related issues(Rasel, 2015). People are put in those jobs which are fit and apt for them according to their skills and abilities so that they can yield results. The results produced are later compensated by the ALDI, in the form of bonuses, incentives, and promotions. Aldi is a flat organization 2
Running Head: Essay This function motivates the employees, to give their best to the company. With the help ofrationalpolicies,theproblemsofemployeesaresolved.Thefullpotentialof employees is developed by imparting proper training and development programs on a timelybasis.Thecompanymakessurethattheemployee’stalentisusedinthe accomplishment of the goals. It is a performance oriented function which focuses on the results. People are encouraged to give 100% and this helps the ALDI, in attaining a competitive advantage over its competitors. By providing proper techniques and tools to the workforce and managing them effectively, HRM is directed towards the achievement of the goals of the company. To gain competitive advantage Aldi must manage its human resource effectively and efficiently. More importantly, it should leverage its human capital for achieving the strategic objectives of the business, which in turn can help the company in gaining considerable success in the market(Mankad, 2015). People management, strategies, and tools:Extreme focus is placed on productivity and efficiency in ALDI, UK and due to this, the company is trialling using an HR agency in the Neston Region of the country so that a major amount of company’s HR function can bedone.ThisagencyperformsalltheHRfunction,likerecruitment,induction, development, payroll, etc. This helps the company in saving money, as Area managers and Line managers can focus on their area of operations. In ALDI, the HR department is aligned according to the strategic plans. This alignment between the HR, strategies, and performance helps the HRM in developing a potential workforce and developing ALDI’s competitive advantage.Every employee of the ALDI is promised a rewarding career, where they will be provided an atmosphere and opportunities to develop and evolve as a better professional. This motivates people to get committed towards their task and they take ownership of their responsibilities(Shaw, 2007).ALDI’s focuses on three core areas, 3
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Running Head: Essay productivity, service, and quality. HR of the company recruits such people who have the required skills, knowledge and abilities and are best suited for the required position. More than 85% of the ALDI’s Directors are recruited from within the company, through promotion. This shows that the company invests in training, development and reward performance of the employees. With the constant training, employees are up to date and succession plans are placed in all the stores. For example, if an assistant manager is sick, deputy manager can perform the task in his absence. Line managers also play an effective role in effectively delivering the strategy of the HRM. The responsibility of translating the policies and plans into actions are given to the line managers. This helps in sustaining a link between the corporate strategy, HR strategy, and organizational performance(Group, 2018). ALDI has developed training programs which are of high range and structures so that employees can be trained to fulfil their assigned tasks. Managers are assigned the task of motivating the employees, rewarding the employee who is performing excellently and continuous improvement of the company.Training helps an organization in increasing its business efficiency as well as also motivates the workforce by increasing the job satisfaction. Training is only for the short-term purpose, but development program of ALDI is meant for building the capabilities of the employees for a long duration of time. The employees gain knowledge, learn new techniques and skills and a wide range of attributes are developed. In this way, they can become adaptable according to the ever- changing and dynamic market conditions and can take actions immediately(Loewer, 2013). Also,withtheassessmentsandinterviews,the Areamanagersidentifythe 4
Running Head: Essay candidates who have precise competencies and skillsin the openings. ALDI also imparts training programs to young people known as apprentice scheme. This is an on-the-job and off-the-job training program. Another training program of the company is Retail Apprenticeship. To leverage the human capital of the company and attain the competitive advantage various strategies and tactics are implemented by the company. The company competes in the market by offering lower prices. ALDI make sure that the operational expenses are kept as low as possible so that the profit can be maximized. This is done by deriving the human capital from a pool independent contractor. Lucrative ideas can be yielded by a variety of perspectives in respect of product differentiation. ALDI, allows the employees to take part in short-term training and projects according to their interest. A superior product can be offered to the customers by the highly skilled employees. Companies like ALDI, compete on the basis of the quality of products and services. It can cost to the company to invest in the training and retention of the highly skilled employees, but it can be passed to the consumer in the form of premium pricing. Another source of ALDI’s competitive advantage is operational effectiveness. Operating margins can be increased by a skilled employee who knows how to reduce the internal costs. Due to the strong cultureprevailinginthecompanycanboostthemoraleoftheemployeesand engagement, which in turn leads to the rise in productivity and in the end leads to a rising in the profits(Mayhew, 2017). 5
Running Head: Essay Organizational implications and contributions of HRM in practice:The self-directed work team is implemented by the company by the HR, where members are aware of their roles and responsibilities. They work as a team to fulfil the company’s objectives. This ultimately helps the company management in reducing the time required to micromanage each unit. Without the external supervision, the component units run smoothly in the company(Leeming,2015).TheHRMalsomakesensurethatALDIpossessesa knowledge management system, where every employee is able to gain and share the available knowledge. The company also implements soft sell motivational strategies and hard sell strategies. In soft sells, individuals are advised and praised, whereas in the hard sell, incentives and promotion within the company are done(Rodionova, 2017). These two strategies are used by the ALDI, for the regular performance appraisal and giving rewards. Successful employees are provided further training and later are promoted. The workers of the company are highly empowered, motivated and well trained. The strategy of the HR is that company’s strategies are executed properly by the employees and they help the company in delivering the desired results. Detailed and clear job descriptions are produced ALDI so that people withthe right skills can be hired(Harry, 2016). 6
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Running Head: Essay Problems faced by the ALDI:In the past few years, the companies have faced few issues related to its HRM. Few of the ALDI’s employees have accused the company of job security and job satisfaction. But the company has responded to this accusation by saying that it is providing a great ambiance to its workers to work and grow personally and professionally. One ex-manager complained regarding facing discrimination at the workplace because he was HIV positive. He accused his seniors of asking him to leave the job(Jefferson, 2015). Also, complaints about the long working hours, work-life imbalance, late shift changes, poor health and safety and unrealistic productivity targets assignments have been made by the employees. In response to this, the HR of ALDI said thateveryemployeeofthecompanyiskeenfortheopportunitywheretheyare guaranteed for additional hours and additional income can be earned. The limit is for 38 hours plus. The company also claims to be one of the supermarkets who offer highest hourly rates and active feedback from the employees(Rahman, 2018). Conclusion:ADLI make sure that its customers get the quality products at competitive prices. It also believes in operational efficiency, for which it has employed skilled and competent staff. In the UK alone, ALDI is expanding and making progress in the market. New stores are being opened and due to the rise in sales, more staff needs to be hired. It is the time for the company to introduce a robust selection and recruitment process and policies. To achieve competitive advantage, it is essential the goals of the employees and the company are aligned into one. This is the job of the HRM, to hire skilled people and train them into much better work personal. The company provides various kinds of training and development programs. Too much emphasis is put on the training of people. 7
Running Head: Essay Toconclude,thecompanytreatsitsemployeesasvaluableassets.Empowerment, authority, and personal responsibility are provided to the employees. This helps in motivating the employees in working towards achieving the organizational goals and ultimately leading to competitive advantage. 8
Running Head: Essay References Group, A. S., 2018. Strategy for sustainable business, Available at: https://cr.aldisouthgroup.com/en/cr-report/strategy/ Harry, R., 2016. Insights into in-house recruitment: ALDI, Available at: https://www.changeboard.com/article-details/16367/insights-into-in-house-recruitment-aldi/ Jefferson, A., 2015. Aldi staff reveal what it’s really like working at the discount chain, Available at: http://www.heraldsun.com.au/business/companies/aldi-staff-reveal-what-its- really-like-working-at-the-discount-chain/news-story/0aa79321dbcb9931d273717712cf9b49 Leeming, R., 2015. Aldi defends HR practices after scathing Channel 4 documentary, Available at: http://www.hrreview.co.uk/hr-news/strategy-news/aldi-defends-hr-practices- scathing-channel-4-documentary/60055 Loewer, S., 2013. Gain a Competitive Advantage through Workforce Management, Available at: http://smallbizclub.com/run-and-grow/human-resources/gain-a-competitive-advantage- through-workforce-management/ Mankad, D., 2015. 10 Most Important Characteristics of Human Resource Management, Available at: https://www.linkedin.com/pulse/10-most-important-characteristics-human- resource-dirgha-mankad Mayhew, R., 2017. Ways HR Planning Can Enhance a Firm's Competitive Advantage, Available at: http://smallbusiness.chron.com/ways-hr-planning-can-enhance-firms- competitive-advantage-60313.html Rahman, M., 2018. SWOT analysis of Aldi – Aldi SWOT analysis, Available at: https://www.howandwhat.net/swot-analysis-aldi/ 9
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Running Head: Essay Rasel, 2015. 6 Characteristics of Strategic Human Resource Management, Available at: http://bankofinfo.com/6-characteristics-of-strategic-human-resource-management/ Rodionova, Z., 2017. What is it like to work at Aldi? Employees reveal long hours, poor work-life balance…but good pay, Available at: https://www.thesun.co.uk/money/3729239/what-is-it-like-to-work-at-aldi-employees-reveal- long-hours-poor-work-life-balance-but-good-pay/ Ruddick, G., 2015. The battle is only just beginning for Britain’s 'big four' supermarkets, Available at: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/ 11590348/The-battle-is-only-just-beginning-for-Britains-big-four-supermarkets.html Shaw, J., 2007.Competitive advantage through HRM,Available at: https://www.polyu.edu.hk/mm/jason/book/Shaw%202007%20Managing%20HRM%20in %20NA.pdf 10