Human Resource Management Practices

This assignment delves into the crucial role of Human Resource Management (HRM) practices in shaping organizational outcomes. It examines various HRM practices, their influence on employee attitudes and behaviors, and ultimately, the impact on overall organizational effectiveness. The assignment draws upon relevant literature and research findings to provide a comprehensive understanding of the relationship between HRM and performance.

Human Resource Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and Functions of HRM........................................................................................1
P2 Strengths and Weakness of different recruitment and selection methods.........................2
TASK 2............................................................................................................................................4
P3 Benefits of HRM practices................................................................................................4
P4 Effectiveness of HRM practices .......................................................................................5
TASK 3............................................................................................................................................6
P5 Importance of Employee Relation in reference with ALDI Inc........................................6
P6 Element of Employment Legislation and its Impact on Decision Making.......................8
TASK 4............................................................................................................................................8
P7 Application of HRM practices..........................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resources management refers to efficient managing of people working in an
organisation so that there lies maximum efficiency and effectiveness within tasks performed by
them (Jiang and et al. 2012). It has become essential to efficiently manage human resources as
they lead to organisational success. ALDI is private retail organization which provides grocery
products at low price to consumers across the world. ALDI is one of most preferred company to
work with and this report presents a brief about human resource practices such as functions,
roles, working conditions, the labour market and various practices adopted by ALDI for
improving its business environment . Human resource management is a vast field altogether and
in contemporary times it stands the essential as well.
TASK 1
P1 Purpose and Functions of HRM
Human Resource management is managing people of organisation in such a manner that
goals of organisation are met. It is pervasive, result oriented and aims to help employees to
explore their potential. Human resources management involves recruitment, policies, employee
benefits program, appraisals, counselling and conflict resolution of employees (Wright and
McMahan, 2011).
Purpose of HRM
HRM practices in ALDI aims at enhancing performance of an employee working for
them (Jiang and et al. 2012). HRM practices support entity in increasing satisfaction level of
workers and improving their business performance. Orientation is another purpose for human
resource as they should know the task which are to be performed by them. It is duty of HR
manager ofALDI to make sure they have best working environment and should be harmonious as
well. Training and development also stands crucial as they help in overall development of
employee and enhance their level of satisfaction towards organisation (Tooksoon, 2011).
Functions of HRM
Recruitment
Recruitment refers to selecting best suitable candidate for organisation who can fulfil the
task assigned in an efficient manner. The aim is to attract qualified candidate who can fill in
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vacant position in the organisation. At ALDI Inc. after selection of your resume there will be 3-4
rounds of interview before they finally hire an applicant (Thompson, 2011).
Orientation
Orientation is an important process which revolves around making employee familiar
with organisation. It also focuses to aid employee to have a better understanding of his tasks and
duties assigned to him and adjust into workplace environment
Work environment
Human Resource manager is responsible for providing employee with a suitable working
environment. Having a positive work environment not only enhances productivity but also
motivates employees to perform better. The level of maturity and discounts availed at products
are the highlight of the working environment of ALDI Inc (Jiang and et al. 2012).
Harmony
A harmonious environment is crucial as employees with better relations with each other
creates synergy. Harmony stands necessary because it is believed that two minds are better than
one. ALDI should organise activities which facilitates it.
Skill development
“One thing is constant in the business world is change” so the company should focus on
equipping employee with right set of training and knowledge so they are able to handle transition
process and develop their skills. ALDI needs to give professional learning to its workersl which
is used by many of its employees for the purpose of skill development (Jiang and et al. 2012).
ALDI Inc. concentrates on employees needs and make strategies which can help in
meeting with their requirements. cares for their employees and treats them as human beings
however there were some reports earlier stating that there have been some issues with in work
environment at ALDI Inc. (Rubery, and Urwin, 2011).
P2 Strengths and Weakness of different recruitment and selection methods
Recruitment
There are a number of selection and recruitment techniques used by ALDI for hiring
purposes. Recruitment is the process of selecting right candidate among number of options
available through internal as well as external sources of recruitment. ALDI majorly uses internal
sources of recruitment as they are comparatively inexpensive and time saving whereas the other
side to is that it is confined to the number of choices that a company will have going with this
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source of recruitment. The common methods are promotion and recommendation (Jiang and et
al. 2012). External sources of recruitment are expensive as well as time consuming which
involves recruiting a candidate through company's network, job portals, advertisement, external
recommendations which leaves company with a wide no of choices. But before coming onto
recruitment organisation have to identify the skill and competency level of eal suitable employee
along with its description of task to be performed by him.
Source 1: Chapter 1 PowerPoint, 2013
Source: (Alfes and et al. 2013)
Selection
.It involves inviting maximum no of application of interested individual for a particular
profile. By looking upon their resumes company can select most skilled candidate and can move
them for further interview round. Candidate rejected at this stage was not provided with an
opportunity and company may miss out on a good candidate. ALDI provides career option on its
website in order to get resumes of skilled employees
Interview is part of recruitmetn which involves one on one interaction with candidate, it helps to
create better understanding and help us in recruiting right person for the right post. By this way
skilled employees can be able to perform well in the welfare of the workplace (Jiang and et al.
2012).
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Test is another crucial method for selection in which applicants are judged on the basis of their
competencies, analytical and problem-solving skills. “cut-offs” is a tool which can be
manipulated depending on the circumstances to retain good candidates. But there are some cases
where tests do not fit which stands as a drawback for the same (Renwick, Redman and
Maguire,2013).
TASK 2
P3 Benefits of HRM practices
Human Resource Management is crucial for an employee as well as for employer. It has
variety of benefits which help in achieving the targets of the organisation in an efficient manner
(Renwick, Redman and Maguire,2013).
Motivation
Motivation is a critical component for an organisation not only it builds positive
environment. Effective HRM policies tend to motivate employees to work harder to achieve
goals. Monitory and non monitory rewards are given by ALDI for motivating the employees
Flexibility
With the help of effective HRM practices cited firm will be able to provide flexible
working environment to its staff members which will support in increasing their satisfaction
level. provided environment should be flexible which help employees to custom their way of
working (Advantages and disadvantages of flexible work for employers, 2015).
Fellowship
A Positive working environment promotes fellowship in the organisation. The care and
concern for each other helps create a productive and an understanding environment which shows
better outputs (Renwick, Redman and Maguire,2013).
Development of employees
Employee favouring HRM practices creates a positive environment in the organisation
and the employers use that environment in the best possible manner to achieve the desired
results. The need of training is assessed by the employer and if he believes that training is
required the employer will provide employee with adequate education or training so that
employee will be able to accomplish their task in best possible way. ALDI only relies on the
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performance of the employee and the results being brought (Renwick, Redman and
Maguire,2013).
Training and development
Development refers to overall growth and knowledge of the individual. It is a long-term
process which is not confined to job but it is crucial on the career front.
Training is one of the common concept in business world which means employee is
provided with skill to perform job more competently. It is a short-term concept which is confined
to the current circumstances. The employee is provided with a trainer who trains him on job
related in competencies.
Training can be categorized in on the job training (Job rotation, Coaching, internship, job
instruction) and off the job training (lectures, seminars, role pay, simulation etc,). Once the
training has been complete, trainer will evaluate whether people are improving their skills or not
and on the bases of this they will modify training programs.
P4 Effectiveness of HRM practices
The HRM practices have a substantial share in ALDI Inc. productivity and profits. It
involves various practices such as employee relations, recruitment, compensation, HR planning
and analysis of design and work. The HR practices in an organisation has capacity of bringing
unprecedented results only if they are applied in the suitable manner (Renwick, Redman and
Maguire,2013).
The first practice that shows significant improvement in the results can be working
environment and workplace design. Workplace design refers to the manner in which activities
are designed or organised in the organisation and assessing that they match to attributes to the
employee. For instance, “no fixed seating, movable desks, music room are some latest workplace
design used by ALDI and other leading software companies. The reason being it is not good for
collaboration and it kills creativity. Intersection of ideas of people with various background can
help generate potential ideas which further enhances the productivity and profit generation
capabilities. (Kehoe, and Wright, 2013.)
Flexibility in an organisation is crucial as it provides the employees with opportunity of
looking at personal and work requirements in a proportionate manner. Flexibility can be majorly
categorised in to three types:
1. functional Flexibility
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Functional flexibility refers the freedom to employee to choose his working hours for an
organisation. Flex time, flex place and sharing of work are the commonly used practices which
can help with the space issues and provides the freedom to perform and improve the
productivity.
2. Structural flexibility: is a structure that provides flexible machines, factories and
equipment with help of cross trained employees it can help enhance the productivity of
the organisation.
3. Numerical Flexibility: this is the fixed labour market in which the firm has the ability to
fixed the no of workforce in the organisation.
The another most important tool of HRM practices is the Compensation. The can act as
biggest motivator and have a direct result at level of productivity. Performance management is
process of evaluating performance of employees and ensuring that their goals are directed
towards the organisational' s objectives and providing a feedback for the same. Observation,
accountability, goal oriented approach and 360-degree appraisal is to be done. On ensuring that
work done by employee is appreciable the HR manager should reward him with monetary or
non- monetary benefits. The reward can be non-financial such as appreciation, recognition where
as in financial it can be rewards, bonuses, incentives etc.
TASK 3
P5 Importance of Employee Relation in reference with ALDI Inc.
Employee Relation is a root of organisation. The success and the failure of organisation
solely relies on human resources of organisation. It means relation an employee shares with its
colleagues at organisation. The relationship between employees of organisation is very crucial. If
employees working for an organisation share a good rapport with each other there will be a
visible improvement in productivity whereas frequent situation of conflict will only happen to
hinder performance of organisation.
Employees comfortable with each other will boost a positive environment within
organisation. Good employee relations will boost morale of employees to strive better and
achieve the defined goals. If environment is at par with expectations of employee and he does
not take it as a burden then he will definitely enjoy his work and form a relation with
environment thus reducing the employee turnover. A satisfied worker will not create unnecessary
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hindrance for the manager if he feels like he belongs to that environment and will try his best to
adjust to circumstances and compromise as much as he could (Guest, 2011).
Strategies to build employee relations.
Value every member of organisation
It is very necessary to give importance to each and every member of organisation. The
employee should not feel left out and should be involved and should be assigned task
considering his potential (Hendry, 2012).
Bonding
It is essential for the employees to bond with each other at a personal level during the
lunch hours. This helps develop better employee relations if people with same mindset bond
together. Spending time together during parties or picnics organised by the company will give
them a better understanding. Of each other.
Communication
Communication is most effective tool in a organisation. It can be within employees or it
can be with superior and subordinate. Effective communication can help develop good relation
within the organisation.
Employee relation is an indispensable part of organisation. ALDI Inc. values its
employee as they are a great source of achieving results which they are reaching to. ALDI is
believed to have very high standards for its employees. The CEO of ALDI stays updated with
progress in regards to human interaction team and provides great emphasis to employee
relations. At ALDI people are tested to their limits and provides them with equal opportunity to
bond with each other as that carries a high share in productivity and profitability of business.
(Brewster and Hegewisch 2017).
P6 Element of Employment Legislation and its Impact on Decision Making
Employment law and employee relations share a great deal of HR practices. The
employment laws on the United Kingdom regulates working environment of organisation. It also
focuses on relationship shared between employer and employee. The laws established by the
government is to protect interest of the employees and reduces scope of exploitation. Trade
Unions are here to prevent the casual labour from the exploitation.
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The ethical and social responsibility is being fulfilled by the employment legislation such
as abolishing of unethical work practices, compensation, unbiased evaluation, unfair termination
etc. (Bratton and Gold 2012).
Various laws established by government to protect the interest of the work force are:
Equal Law
This law enacted by the government to protect employees from discrimination being
faced by them at work and help them to strengthen their situation at work.
Health and safety law
This law enacted by government to make sure employees are provided with a safe
environment and regular consultation is to be done.
Redundancy law
Redundancy model states that a employee will be a given a notice period of pre-defined
period before he is made redundant for that organisation.
Data Protection Act
This act states defines under what circumstances personal information of an individual
can be used and ask for a prior permission for the same.
Dismissal
This law states when an employer ends or terminates the services of an individual he
should carry a reason with himself and able to justify the same (Boxall and Purcell 2011).
TASK 4
P7 Application of HRM practices
Human resource management is one of the essential part of business unit, it is essential
for the HR manager that to manage its human resources effectively. That can assist in meeting its
organizational goals (Jiang and et al. 2012). There are various practices of HRM which are as
following: Selection of right person for the right post: It is one of the main practice of human
resource management in which HR manager has to select right candidate in the
workplace. By hiring skilled workers, it will be able to manage its operations effectively.
ALDI adopts internal and external recruitment procedure for selecting skilled employees
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in the workplace. This method helps the entity in getting talented people in workplace
those who can contribute well in achieving goals of the company. Training and development: It is another HRM practices of ALDI in which HR manager
arranges training sessions for new candidates. It gives them appropriate training so that
they can improve their knowledge and can perform their duties effectively. Training
programs makes them familiar with working environment and they become able to
perform their responsibilities significantly (Bratton and Gold, 2012). Performance management: IT is another HRM practice in which human resource
manager review performance of each workers. According to their performance individual
gives them reward. This helps in identifying strengths and weaknesses of staff members. Reward and recognition: It is another HRM practice in which ALDI gives reward to its
best employees. It encourages them and boost their energy. Manager identify their needs
and accordingly it provides them monitory and non-monitory rewards. By this way
energy of individual gets increased and person becomes loyal towards the brand. By this
way they put their hard efforts to improve company's performance. Service quality enhancement: Human resource management have to look upon the
services which are provided by the firm to its valuable consumers. For improving service
quality HR manager of ALDI work for improving production and operations (Jiang and
et al. 2012).
 Payroll management: It is one of the important part of HRM practices, HR manager is
responsible for giving salaries and wages to the staff members. ALDI needs to give
salaries to its staff members as per their skills and experience. If someone is performing
really good then individual have to provide them proper incentives and cash bonuses. It
makes individual satisfy and person contribute well in the success of organization.
CONCLUSION
This report magnifies role of human resource management in company. The role that
human resource practices have in organisation and their influence on profitability and
productivity of the company. Organisation prefers best fit approach in their working environment
which further helps employees to fit in accordingly and to bring out results that matches
expectations of company. Later analysis on the recruitment and selection techniques been done
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and seen that an organisation goes with various job portals. At last it is evident role played by
employee relations is significant and leads to greater productivity which further increases the
revenue for a company.
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REFERENCES
Books and Journals
Alfes, K. and et al. 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model. The international
journal of human resource management.24(2). pp. 330-351.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave
Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource
Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp. 3-13.
Hendry, C., 2012. Human resource management. Routledge.
Jiang, K. and et al. 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp. 1264-1294.
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp. 366-
391.
Renwick, D.W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1). pp. 1-
14.
Rubery, J. and Urwin, P., 2011. Bringing the employer back in: why social care needs a standard
employment relationship. Human Resource Management Journal. 21(2). pp. 122-137.
Thompson, P., 2011. The trouble with HRM. Human Resource Management Journal. 21(4). pp.
355-367.
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Tooksoon, H. M. P., 2011. Conceptual framework on the relationship between human resource
management practices, job satisfaction, and turnover. Journal of Economics and
Behavioral Studies.2(2). Pp. 41-49.
Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human ‘back into
strategic human resource management. Human Resource Management Journal. 21(2). pp.
93-104.
Online
Advantages and disadvantages of flexible work for employers, 2015. [Online]. Available
through:<https://www.ukessays.com/essays/economics/advantages-and-disadvantages-of-
flexible-work-for-employers-economics-essay.php>. [Accessed on 16th September]
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