Strategic Human Resource Management

This document discusses the current trends and development that impact an organization's HR strategy, including manpower diversity, globalization, advanced technologies, competition for talent, and changing skills. It also explores the external and internal factors that influence HR strategy and practice, such as market trends, laws, environmental change, and availability of funds. The document further delves into theories and concepts for the growth and development of strategic HR management, including performance management, universalistic theory, and contingency theory. Additionally, it covers how HR outcomes can be measured and monitored, and evaluates effective HR management and development techniques.

Strategic Human
Resource Management
Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................5
P1 Current trends & development that impact on organisation's Human Resource strategy......5
P2 External & Internal factor influence Human Resource strategy and practice........................6
M1 Analysis effect of external & contextual development on Human Resource strategy of an
organisation.................................................................................................................................7

D1 Evaluation of impact of external & contextual development applying theories as well as
concepts.......................................................................................................................................7
TASK 2............................................................................................................................................7
P3 Theories & concepts for growth and development of strategic Human Resource
Management................................................................................................................................7
M2 Analysis of how HR theory relates to an organisation.........................................................9
D2 Evaluation of how HR theory relates to organisation context..............................................9
TASK 3............................................................................................................................................9
P4 Change Management models ................................................................................................9
M3 Justifications of change model and how it supports Human Resource strategy.................11
D3 Critically Evaluate change management model and strategies ..........................................11
TASK 4..........................................................................................................................................11
P5 How Human Resource outcomes can be measured and monitored with an example..........11
P6 Evaluation of effective HR management and development which can support sustainable
performance...............................................................................................................................12
M4 Suggestion for Human Resource development techniques................................................12
D4 Evaluation of how monitoring & evaluating techniques contribute towards growth and
sustainable performance of company........................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
INTRODUCTION
Strategic Human Resource management is deciphered as a process of attracting,
rewarding & retaining staff members for the goodness of both employees as well as organisation.
In another words, it is a procedure of interrelate functions of HRM with organisational objectives
and goals. In this practice, strategies and actions is developed in order to optimally utilize human
resource of an organisation. This assist company to enhance their performance level and raise
their level of profits (Armstrong and Taylor, 2020). Human resource department of an

organisation maintain effect relationship with employees that assist company to retain their staff
members for longer time period. The other functions that is performed by Human Resource
involves recruitment, selection, Training & development, performance management and many
more. In the present report, ALDI is chosen as a base company. The company was established in
the year 1913 by Karl & Theo Albrecht. The existence of the company is in more than 11,000
locations globally which is the reason behind its large market share. ALDI deals in products such
as Household essentials and variety off groceries. The report covers current trends that effect on
the human resource strategy of an organisation along with its impact on external and internal
factors. Moreover, Theories and models associated with strategic human resource management is
discuss in this project.
TASK 1
P1 Current trends & development that impact on organisation's Human Resource strategy
In this dynamic world, it is important for an organisation to be flexible & keeps n
changing their policies and strategies that assist companies to maximise their effectiveness level.
In context to ALDI, it is determined that company care and value their employees and focuses on
providing them positive culture in the premises (Brewster, 2017). In order to retain employees
and to deal with changing trends, ALDI require to give interesting future opportunities to all the
staff members. Some of the current trends that influence on Human Resource strategy of an
organisation is defined below:
Manpower Diversity: It is defined as people who belong from different places, culture,
is working at one place. It is important for companies to have diverse manpower which assist in
improving the efficiency and help in gaining competitive edge at marketplace. With reference to
ALDI, its higher authorities express human resource manager to recruit candidates of different
culture, religion, age and ethnicity. This will assist company to be more innovative &
competitive in market that directly leads to growth and development of ALDI.
Influence of Globalisation: Globalisation assist company to expand their business
activities and increase the level of profitability. In relation to ALDI, the company has existence
in more than 11 countries but in order to enhance their operations globally they require to bring
some innovative and creative idea in market so that they can sustain in market of other countries
in an effective manner.

Advanced Technologies: Nowadays, technology is changing rapidly that effect on the
overall strategies of an organisation. In context to ALDI, its human resource manager requires to
use new methods of recruitment and selection which help company to hire effective and talent
candidate for the organisation (Chadwick, Super and Kwon, 2015). Nowadays, many technical
software is developed in order to select candidates which directly effect on the overall
organisation HR strategy.
Competition for Talent: Due to increase in competition, companies are focusing on
hiring talented and effective employee who can perform activities in a proper and effective
manner. In relation to ALDI, the company provides many benefits to employees and emphasise
on satisfying their needs so that they can attract fresh talent for the company which effect on the
overall efficiency of ALDI in positive manner. It is essential for human resource manager of
ALDI to change their strategies and policies in order to hire talent candidate for the organisation.
Changing skills: With the passage of time, the requirement as well as needs of
employees is changed so it is essential for ALDI to make innovation in its Human resource
strategy that will help in gaining desired goals in a desired manner.
Continuous emphasise on improving customer experience: In this competitive world,
it is important for an entity to provide to provide high customer experience as it sales as well
profit is totally depend on them. In order to achieve this, ALDI need to enhance productivity of
staff members who provide effective and on time service to customers.
P2 External & Internal factor influence Human Resource strategy and practice.
External factors involve elements which influence on the overall operations and
functions of an organisation. The external factors are technological changes, economic
conditions, change in legislation & policies, social factors and many more. This element
indirectly or directly effects on operations of an organisation which in turn impact on the overall
objectives of the company. The external factors that influence on practices and strategies of HR
is mentioned below:
Market Trends: Change in market trends effect on the overall activities and operations
of a company. The market trends are changing due to change in technology, perception as well as
buying behaviour of customers (Delery and Gupta, 2016). In order to deal cope with the
changing market trends, it is important for companies to change their level of production
processes and services. In relation to ALDI, it is important for Human Resource manager to give

appreciation and rewards to employees so that they can bring innovative idea for company that
strengthen position of ALDI globally. It will also assist company to gain competitive edge at
marketplace and fight with their rivals in a proper manner.
Laws: There are many legislations and policies that effect on the functioning of a
company. In relation to ALDI, the company head office is in United Kingdom and according to
their laws it is essential for all the organisation to maintain personal data of employees. Change
in laws and policies impact on overall practices & strategies of Human Resource as they need to
alter their policies which assist company to function in a smooth and effective manner.
Environmental change: Nowadays, people are more conscious towards their health and
protect the environment. With reference to ALDI, it is plan to offer herbal products in market in
order to contribute towards protection of environment and builds positive brand image in market.
Technical change: The technology is changing continuously that affect on the buying
behaviour of customer as they prefer to consume innovative and new things. In context to ALDI,
it is important for higher authorities to use advanced techniques in its process as it decline the
overall cost and increases profits of company.
Internal Factors involves employees, stakeholders, funding, investment opportunities
and so on (Delery and Roumpi, 2017). All these factors effect on operations and functions of a
company which in turn effect on the strategies and practices developed by the Human Resource
manager of an organisation. The internal factors that effect on activities of ALDI are as follows:
Availability of Funds: In order to smoothly function out business activities, it is
important for an organisation to have enough and enough funds available in the company as it
assists in formulation of policies and strategies in a proper manner. With relation to ALDI, its
higher authorities ensure that funds are available to all the departments of a company. If it is
talked about human resource department, lack of funds impact on the practices and strategies that
is developed by them as they are not able to perform activities in a proper manner. This will
directly affect on the overall organisational objectives and goals in a negative manner.
Relation with Employees: Human Resource manager of an organisation build strategies
in order to maintain effective relationship with employees that help company to retain their
employees for longer time frame. In context to ALDI, its HR manager emphasise on developing
good relationship with staff members which motivate them to work with full potential and
enhance productivity and profitability of company.

HR generic strategies: The human resource generic strategies include three factors that is
differentiation, focus, and cost leadership. This are given below with relation to company.
Cost Leadership: In this strategy, the main focus is on providing high quality goods and
service in market at lower rates. It help ALDI to gain competitive advantage at marketplace and
reaches to leading position.
Differentiation: Herein, the main focus is on providing unique and different service in
order to attract maximum number of people prevailing at marketplace. This strategy will assist
ALDI to develop strong brand position that leads to increase in sales and profit of company.
Focus: it involves two strategies that is cost focus and differentiation focus that is
providing unique and different goods in market at lower rates.
From the above discussion, it has been analysed that ALDI should adopt differentiation
strategy as it help company to attain competitive edge at marketplace.
M1 Analysis effect of external & contextual development on Human Resource strategy of an
organisation.
External factors such as political, legal, social , economic and many more impact on the
strategies develop Human Resource manager (Liu, 2017). Along with this, Advancement in
technologies, increase in market competition, workforce diversity also effects on the plans and
Human Resource strategy. In order to cope up with the changing environment, it is important for
HR department to be flexible and dynamic that help company to hire talented candidate which in
turn raise the productivity as well as profitability level of an organisation.
D1 Evaluation of impact of external & contextual development applying theories as well as
concepts
It is important for an organisation to make development in their strategies so that
monitoring & controlling of staff members can be done effectively. ALDI can use strategic
model like performance management which affect positively on the productivity of employees.
This will also help company to gain competitive advantage at marketplace and attain their
desired goals within the specified time period.

TASK 2
P3 Theories & concepts for growth and development of strategic Human Resource Management
Different types of theories and concepts help organisations in developing and improving
the whole procedure of SHRM (Marchington, 2015). In the present context of ALDI, it has been
said that they offers their goods and products across the whole wide world and capture huge
market share. The current environment within the workplace has been identified that there is
inequality in the pay structure of staff members which creates conflicts and disputes as well as
affect the whole environment in a negative manner. For resolving such issues, top management
team of ALDI adopt some theories & concept with the aid of which they can accomplish their
goals and objectives effectively. These theories are going to be discussed as follows:
Performance Management concept:: It refers to a procedure of examining the whole
performance of employees so that they can provide them wages and salary accordingly and aid
them in attaining their desired objectives as well as goals. Basically, it is a unique process which
help in improving and building the efficiency of staff members so they can effectively contribute
their best for fulfilling organisational goals within specific period of time. In reference to ALDI,
management team of the company use this concept within their organisation which helps in
enhancing and improving the efficiency and effectiveness of employees. For example, ALDI is
an organization serves their products and services across the world, for this different types of
employees perform their work on various levels. Managers adopt this concept so that they can
easily examine the performance of their staff members. This will assist them in providing wages
according to their performance and motivate them to perform better in near future (McClean and
Collins, 2019). This will also assist them in order to enhance productivity as well as efficiency of
employees which directly raises their profitability at the competitive marketplace.
Universalistic Theory: It defines as a theory which is related with internal resources of
the company as well as their relationship with the performance of organisational activities. This
is the theory which will assist business organisation in order to develop effective and appropriate
plans and strategies. In the present organizational context of ALDI, HR manager and top
management team of the company adopt this theory in order to create recruitment as well as
selection procedure in effective and appropriate way. In addition to this, managers of ALDI
bring new, unique and creative ideas in the business organisation which will leads them in

enhancing their goodwill, efficiency as well as profitability of the company at the competitive
marketplace.
Contingency Theory: This is a theory which signifies contingency or uncertainties
which occur in the business organisation anytime so it is recommended to the management team
to adopt this theory. According to this theory, no single theory or concept is best suitable to the
organisation as every situation is different from each other. In reference to ALDI, it has been said
that if managers of the company adopt contingency theory higher authorities will take effective
decisions at the time of uncertainties arise in near future. This will help them in attaining their
organizational objectives in an effective manner within given period of time.
Flexible working arrangements: Staff members of the company get flexible working
hours facilities which increases the productivity level as well as efficiency. This will turn in a
positive manner as it helps in raising the profitability as well as productivity of the company
(Ostroff and Bowen, 2016). In the present context of ALDI, it is said that management team of
the company adopt this concept which will help them in motivating staff members as they will
get to do their work according to their requirements. Also it will aid in balancing personal as well
as professional life of the staff members which leads to increase the efficiency of ALDI.
With the help of above mentioned, it has been concluded that all these theories as well as
concept help managers of ALDI in managing their human resource in an effective manner which
leads to increase the productivity of employees.
M2 Analysis of how HR theory relates to an organisation
All these theories acquired by ALDI assist in motivating employees due to which their
efficiency and productivity level increases. This will help ALDI to achieve organisational
objectives within given time period that leads to increases in profits of company. Along with
this, by applying theories company can make optimum use of human resources which affect
positively on the efficiency of ALDI.
D2 Evaluation of how HR theory relates to organisation context
HR theories help managers of an organisation to motivate their staff members which
affect positively on the productivity and performance of a company. Contingency theory suggest
that no particular strategies is effective for an organisation as it is changed according the
circumstances arises at workplace. Universalistic Theory assist an organisation to bring
innovative and unique idea that further help company to gain competitive advantage at

marketplace. In order to solve issue of payroll structure, the company uses performance
management concept which assist in evaluating performance of staff members in a effective
manner. It also show results that is contribution of employees towards organisation objectives
and goals of company.
TASK 3
P4 Change Management models
Change is a regular or continuous process which need to be considered by the manager of
the company. Managers are required to be flexible and can easily adopt changing environment
arise at the workplace. This as a result aid management team of the company in attaining their
organizational objectives by developing dynamic strategies and policies (Reiche, 2016). There
are different change management models which is adopted by the management team of ALDI so
that they can develop as well as prepare human resources strategies. Along with this, this is the
model which will assist the higher authorities of ALDI in managing their employees effectively.
The models are defined below in relation to company:
Kotter’s 8 Step change Model: This is the model which was coined by John Kotter who
is a professor in Harvard Business school. It is a model which includes some steps which are
going to be discussed as follows:
Introduce Urgency: It defines as developing need and requirement for change with the
assistance of putting a sense of urgency among the mind of staff members. Along with this, it is
setting the importance of project within the mind-set of employees so they feel positive and
finish all the work on a urgent basis and produce effective outcomes. Also by creating the
atmosphere where employees perform all their work on a urgent basis which will leads to
produce positive results in an effective and appropriate manner. Furthermore, this will aid the
management team of ALDI in order to examine the performance of staff members as well as
appreciate them for their work.
Build an effective Team: It is quite difficult for the management team of company in
order to bring change in the business organisation, it is very important for the managers to
develop an effective team which help in directing others so they can effectively cope up with the
changes arise within the organization. In context of ALDI, higher authority of the organization
develop a team which assist in executing all the functions and activities in a positive and

appropriate manner. This as a result will assist management team of ALDI in order to bring
positive outcomes and create effective goodwill of the organization at the competitive
marketplace.
Develop Vision: For making the concept of change understandable by the staff members
of the company, managers are required to develop an effective vision which is related with the
organisational goals and objectives of the company. This will help them in developing the mind-
set of employees working within ALDI which will help them in attaining their objective by
performing their task within given time period.
Communicate Vision: After developing the vision, it becomes essential for the
management team to communicate about the vision and their role. It is necessary for the
management team of the company to motivate and encourage their employees for effectively to
adopt change in an effective manner and accomplish all the objective and goals of the company
(Shields, 2015). This will assist the team members in order to clarify requirements of task which
needs to be adopt when implementing change at the workplace in an effective manner. In the
present context of ALDI, there are various communication mediums adopted by the management
team when vision is required to communicate with staff members.
Remove Hurdles: Above mentioned four steps are quite essential for the business
organisation for initiating change within the workplace. Along with this, there are some hurdles
and barriers which need to be reduced by the management team of the company after adopting
change. In context of ALDI, it is very essential for the managers of the company to examine all
the obstacles in an effective manner and within given time frame so that they can effectively
adopt changes in a positive as well as effective manner.
Create short term wins: Process of change take some time period which creates the
mind-set of staff members that all their efforts and work are not wasted. For dealing with this, it
is very essential for the management team of the company in order to create short term targets
and goals which will motivate staff members for working with full zeal & contribute towards the
attainment of organizational objectives (Taylor, Doherty and McGraw, 2015). It will help in
developing level of confidence within employees with the help of which profitability as well as
productivity will raises which directly affects the goodwill of the company at the competitive
marketplace. For this managers of ALDI, develop short term targets so they can easily be
achieved by them which motivates and encourage to perform their work positively.

Build on the change: It is said that sometimes change process failed which as a result
the whole project will not be completed in a proper manner. For this, it is required by the
management team of ALDI to stick with change they wants to bring until they accomplish the
objectives developed by the managers. Along with this, higher authority of the company
focusing on improving their work when they failed which assist them in order to raise their
profitability.
Nudge Theory: It refers to a theory which is associated with behavioural science which
creates positive behaviour as well as attitude of staff members towards change which is taken
place within the business organisation. This is a theory which will assist organisation in order to
accomplish aim and objectives of change management in effective and appropriate manner. In
context of ALDI, Top management team of the company adopt this model within their
organisation which assist in the development of positive and strong behaviour of employees
which directly leads to accomplish their organisational objectives and goals within given time
frame (Stewart and Brown, 2019).
Lewin's Theory: Lewin's theory includes 3 step procedure which are unfreeze, change,
freeze. This theory assist companies in order to make high level of improvements that ledas to
incraese in productivity of an organisation in an effective manner. In the unfreeze stage, the
changes that is required is clear to employees. In the change stage, employees adopt the changes
that is needed to improve conditions of company. In the last stage, changes take place in an
organisation that leads to attainment of organisational objectives within time frame.
M3 Justifications of change model and how it supports Human Resource strategy
The change model that can be adopted by company is Kotter's 8 step model. This model
states how changes can be handle and how to motivate employees to adopt changes. Along with
this, it states that managers of ALDI can focuses on improvements rather than getting failed on
bringing change in company. Moreover, this model supports Human Resource strategy in a
positive manner as it helps an organisation to stick with the changes and raise their level of
efficiency as well as productivity.
D3 Critically Evaluate change management model and strategies
Change management models & strategies assist company to deal with the changes and
decline the level of problems arises in future. Along with this, the benefit of using change model
is it increases the efficiency of employees due to which the overall productivity of company

increases. The disadvantage of change model is it consumes a lot of time of managers which
distract them due to which sometimes projects is not completed on time.
TASK 4
P5 How Human Resource outcomes can be measured and monitored with an example
Sustainable growth: It is refer as raise in sales percentage which is consistent.
Organisations achieve this by developing effective strategies and plans that helps companies to
sustain in market for longer time period.
HRM support sustainable business performance and growth: Human resource
manager of an organisation focuses on maintaining good relationship with employees which help
company to retain staff members for longer time period. In addition to this, HR manger motivate
employees that raise performance and productivity of employees which directly leads to increase
in profits of company.
The HR outcome is measured by analysing performance of staff members, their productivity and
efficiency level and to identify their ability of complete project on time. Along with this, it can
be monitored if company attain objectives within the budget and on time period. It assists
company to save their cost and generate higher profits within short span of time. The positive
outcome of Human Resources assist company to build effective strategies and brings
improvement in the efficiency and productivity of company. In relation to ALDI, outcome of HR
can be measure by identifying employee performance, employee relation, profit level, revenue
generation and many more (Yong and Mohd-Yusoff, 2016). Along with this, it can be measure
by checking the performance of employees with the expected performance. Moreover,
Monitoring of Human Resource strategies assist company to identify their weaknesses and then
make improvements that help company to implement business activities in an effective manner.
Moreover, the higher authorities of ALDI can measure HR outcomes by analysing the profit of
past years with the current years or by identifying the efficiency level of staff members with their
past performances. For example, if conflicts arise in ALDI among the employees and how it is
handle by the HR of company is assist company to measure their outcomes.

P6 Evaluation of effective HR management and development which can support sustainable
performance
HR management & development is helpful in organizations for recruiting skilled and
talented employees that can work according to organization's overall requirements. Human
resource department in every organization has the responsibility to increase level of
performance so that overall competitive position can be maintained and ta same time there is
higher level of performance some tools used for achievement of such objectives is
mentioned below:
 Bench marking: It is a type of business process that is helpful fort companies in
comparing performance with other similar organizations. This tool is very helpful n
determination of actual performance so that it can measured with set standards. Aldi
is comparing its performance with other big competitors that are helping in
understanding of deviation in their performance level (Zikic, 2015).
 KPI: Key Performance Indicators help various business in making a detailed
evaluation of their performance with comparison to external market. It will be very
helpful in making improvements on certain areas that determine key aspects of
performance for a organization. Some of key performance indicators can be market
share, customer satisfaction level etc.
M4 Suggestion for Human Resource development techniques
It is suggested that company can make use of performance appraisal technique which
help in evaluating the efficiency of employees in an effective manner. This will also help
company to make improvements that further assist company to sustain in market for longer time
period and to achieve higher growth.
D4 Evaluation of how monitoring & evaluating techniques contribute towards growth and
sustainable performance of company
Performance appraisal technique help company to enhance the productivity level of
employees. Along with this, it also helps company to encourage staff members so that they can
put efforts to achieve organisational objectives (Delery and Roumpi, 2017). Moreover,
achievement of goals on time frame will help an organisation to remain in market for longer time
frame and gain higher growth effectively.

CONCLUSION
From the report above it is concluded that strategic management of resource sin a
organization especially human resources is very helpful in improvement of overall performance
of organization. With the analysis of present market trends there are various human resource
strategies that organization formulate for purpose of achievement of set goals. Different theories
have been formulated and developed that assist human resource managers in effective
management of human resources in an organization. This is most critical function in effective
and smooth functioning of all functional departments in each organization. Further, human
resource strategies are also very useful in achievement of goals in the specified time frame.

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