ALDI's HRM Practices and Success

This assignment examines the role of human resource management (HRM) within ALDI. It delves into relevant employment laws like equal pay acts and anti-discrimination legislation, highlighting their purpose in safeguarding employees. The report then analyzes the effectiveness of ALDI's HRM practices, focusing on their contributions to the company's product quality and growth. Finally, it emphasizes the crucial role of human resources in helping enterprises reach their objectives.

Unit 3
HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Purpose and functions of HRM........................................................................................3
P2. Strengths and weaknesses of various approaches of recruitment and selection..............5
M1...........................................................................................................................................7
M2...........................................................................................................................................7
D1...........................................................................................................................................7
TASK 2............................................................................................................................................7
P3. Benefits of employees and employers..............................................................................7
P4. Appropriateness of HRM practices for maximizing profit and productivity...................9
M3.........................................................................................................................................10
M4.........................................................................................................................................10
D2.........................................................................................................................................10
TASK 3..........................................................................................................................................10
P5. Importance of relations of employees to influence HRM decision making...................10
P6. Legal laws and norms for employees and its impact on HRM decision making...........11
TASK 4..........................................................................................................................................12
P7. Application of HRM practices in a work-related context..............................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Human resource management is an effective method of managing the overall staff
working in an enterprise with the help of different tools. In fact, they are accountable for
appointing or selecting eligible or deserving candidates to fill the vacancy of an organization.
Basically, human resource is a modern term used by recent companies whereas personnel is a
traditional word indicating duty of HR department towards managing whole enterprise. ALDI is
a leading company famous for its qualitative and standardized products by adopting various
useful tools of improving learning skills of their employees to run the business smoothly
(Armstrong, 2014).
Therefore, this report is going to highlight the main purpose and functions of HRM during
planning, recruiting, and selecting process. In addition, it also describes the benefits of employee
and employer as well as roles of legal authority in protecting the rights of employees. Apart from
this, report throws lights on importance of employee relations for an enterprise because it has
high impact on the decision-making process. At last, it describes effective application of HRM
practices related to work with the help of examples.
TASK 1
P1. Purpose and functions of HRM
ALDI is a common brand having its branches across national boundaries whose main
motive is to manufacture qualitative product for capturing the minds of millions of customers.
(Taylor, 2014). Main purpose of an HR department of an enterprise is to appoint deserving and
talented employees to fill their vacancy of a company. Apart from this there are number of
purpose which are mentioned below: -
 Resolving problems: One of a main aim is to solve all the disputes or conflicts of an
enterprise in between higher and lower authority which have a greater impact on decision
making process.
 Create a friendly environment: Surrounding of an enterprise motivate employees
towards their personal and professional goals (Boxall, 2011). Basically it creates a
positive relation in between employees working in an organization.

 Act as an advisor: HRM department conduct various counselling programmes to guide
their employees by boosting their morale as well as they appoint specialised persons for
advising their employees.
 Recruit and select: - One of the main reasons for a HR unit is to direct enrolment
programs for choosing the best candidates by considering important elements which are
extremely fundamental to play out a specific employment.
 Assigning of a job: Department of human resource oversees assigning perfect individuals
at a correct position according to their ability as well as aptitudes of satisfying the request
of employment in a successful way (Purcell, 2011).
Apart from all this above HRM department of ALDI believes in enhancing the
knowledge and skills of their employees by performing various essential functions. According to
refereed company employees are one of an indispensable resource because they complete all the
task and activities only. Instead of all this, personnel managers of a cited enterprise have
performed various major functions to run their business smoothly which are mentioned below: -
1. Organising: Primarily, function is to organize all the activities and task in a proper
manner to attain its goals and target in each period (Bratton, 2011). Managers are liable
for overall management of a company which means they conduct all the promotional and
motivational programmes.
2. Staffing: According to this function they are responsible to assigning right persona t a
right job based on their knowledge and talent to perform their job role.
3. Controlling: HRM are responsible to estimate future cost to control extra and unused
wastage of a company by utilising all the resources in efficient manner.
4. Coordinating: It helps employees to work in a friendly environment without any stress
by cooperating in between each other.
5. Motivation:-HR department also act as a motivational factor because they are responsible
to conduct various programmes for encourage their employees towards their personal and
professional goals.
6. Decision making:- One of a major function which is perform by personnel manager is
that maximum decisions are taken by them only and subordinates have to follow them. In
fact they are liable for making effective plans and policies for entire organizations.

7. Human resource allocation:- Lastly, HR department of ALDI is responsible to allocate
all the resources in a proper manner so that they can attain their set objectives as soon as
possible. Basically resources are one of a mandatory part of a company because all the
task and activities are directly or indirectly depend upon it.
P2. Strengths and weaknesses of various approaches of recruitment and selection
Selection and recruitment process is an appropriate process of appointing deserving and
knowledgeable candidates to fill the vacancy of an enterprise. ALDI is an international
organization with having its branches across national borders. So, it is essential for them to
recruit the best alternatives from a pool of applicants (Gold, 2012). Basically, during selection
process, they must consider all essential terms and conditions which are required at the time of
recruitment process. Company has adopted various approaches for appointing skilled candidates
but each one has some positive and negative sides which affect the overall enterprise in every
manner. ALDI uses techniques of recruiting employees which are mentioned as below: -
 Internal approach: - According to this technique, HR department of ALDI appoints
employees within organization according to their skills by promoting them at higher
position. Therefore, employees are familiar with the environment of a company and
knows everything about place where they are working (Chillador, 2017). But this
approach also has some strengths and weaknesses which affect the whole enterprise in
different manners as stated below: -
Table 1 Name Please extend all tables
Strengths: -
 Employees are familiar with organization and can easily perform their task. It means
employees who is promoted from lower to higher are already get aware about
surrounding due to which they will not face any problem while performing their roles
and responsibility.
 Get aware about company’s advantages and disadvantages which means they are
updated about strength and weakness of a company which is beneficial for them .
 Internal approach is a very short process because in this there is absence of
advertisement programmes and proper recruitment process.
 Another strength is that this approach will consume minimum time period and minimum

costs. Requires minimum capital.
Weaknesses: -
 Maximum chances of conflicts
 Due to promotion of existing employees, other positions get again vacant
 Disturb the working environment
 Absence of new ideas
 External approach: - According to this approach, organization needs to select
employees from outside the enterprise by advertising its vacant positions with the help of
different methods. For example: television, magazines, newspapers, etc. Strengths and
weaknesses of external technique of appointing employees are mentioned as below: -
Table 2 Name of table
Strengths: -
 Existence of large number of choices
 Emergence of new and innovative ideas
Weaknesses: -
 Very long process
 Large amount of capital is required for conducting this method
 Third party approach: - In this approach, ALDI needs to consult any other agency or
third party who may recommend any individual for the job or position (Erwin, 2017).
Basically, there are many more agencies available who act as a consultant in between
candidates and company who are known as third party.
Strengths: -
 Innovative ideas
 Availability of experience persons
Weaknesses: -
 Very long process
 Expensive approach as compared with internal and external

 Creates confusion due to existence of third person.
M1
HR department plays a very eminent role in accomplishing objectives of an enterprise by
performing their functions in a proper manner as well as enhance the knowledge of employees
so that they can resolve their problems in a minimum time period. It means personnel managers
act as a encouragement tool for entire organizations.
M2
Recruitment and selection is a process of hiring knowledgable candidates to fill the
vacant position of an enterprise by considering their skills and eligibility for a job. Therefore
they adopted different kinds of approaches for appointing talented employees to perform specific
job role.
D1
Hiring is a very long process which executed with the help of three different types of
approaches and these are stated as follows:-
 Internal approach
 External approach
 Third party method
These above methods are very much appropriate way of hiring skilled employees to fill
the vacant position of an organization.
TASK 2
P3. Benefits of employees and employers
For establishing a successful organization, ALDI needs to enhance the knowledge and
skills of their employees and employers by implementing various useful methods. Basically,
human resource is one of the indispensable tools of ALDI because they control all tasks and
activities only (Daley, 2012). Therefore, HRM of organization provides basic facilities to their
employees and employers which are mentioned as below: -
Benefits of employees- Training and development: - According to this, organization conducts various growth
session for uplifting their knowledge and skills by appointing specialised person. The

main motive of training session is to enhance learning of exiting employees to perform
their job effectively and efficiently. ALDI is a leading company who believes in raising
the standard of their workers to live life more comfortably (Fee, 2014). Conduct motivational programs: - It is essential to motivate employees towards their
personal and professional goals to achieve its objectives within minimum time. Apart
from this HR department has also adopted various motivational theories to encourage
their workers to develop their own personality which attract numbers of customers.
 Special provisions: - Additional benefits are also provided by company for the
betterment of their employees and organization as given below: -
1. Flexible hours for sharing their opinions and views
2. Create friendly and healthy surroundings to establish stress free environment
3. Availability of equal opportunities for improving their learning skills (Guest, 2011)
Benefits for employers: - Compensation and remuneration: - Employers are liable to complete the target of an
organization to maximize their profit within given time by fulfilling the needs and wants
of domestic as well as foreign consumers. Therefore, after fulfilling the demand of
enterprise, they get compensation for their extra efforts. Medical facilities: - Permanent employers also get secured by medical insurance which is
very useful for employees because it protects them at the time of any sudden injury. Conveyance: - ALDI also provides vehicle facilities for travelling.
Retirement benefits: - Employers also get retirement facilities at the stage of retirement for
example pension schemes, mortgage, disability insurance, etc. which secure individuals
financially (Herzing, 2010).
 Bonus: - Employers get bonus on special occasions for example on Diwali, due to
working extra or overtime, etc. which motivate them towards their personal goals and
targets. Sometimes, it acts as an appreciation tool for the employer which is beneficial for
individuals as well as organization.
P4. Appropriateness of HRM practices for maximizing profit and productivity HRM practices play a vital role in raising profit and productivity of an enterprise
by enhancing the knowledge and skills of their employees and employers with the help of
motivational programs. Basically, it acts as an indispensable tool in fulfilling the demand

of desired consumers by considering their tastes and preferences and try to manufacture
products according to their choice (Pennington, 2010). HR department believes in
staffing right person in right job based on their talent for attaining goals of a company.
Therefore, various HRM practices are available which play an eminent role in
maximizing the profit and productivity as mentioned below: - Employee involvement: - All other resources are controlled and regulated by personnel
managers in which employees play an important role in attaining the goals of enterprise.
It means that they are liable for-profit maximization by manufacturing qualitative
products according to customer’s demand. Enhancement programs: - This term is also one of the major roles of HR department
because it acts as an indispensable tool of encouraging workers so that they can enhance
their learning. The main motive of this practice is to conduct various activities (Hendry,
2012). Job rotation: - ALDI rotates job of employees according to organization’s demand for a
change in the environment which is essential for betterment of company.
 Job assessment: - According to this technique, they need to analyse the job for
appointing individual’s due to demand of position so that selected employees may fulfil
the requirement of specific job.
 Selection and recruitment: - Appointment and selection of knowledgeable candidates to
fill the vacancy of an enterprise which is essential to achieve their target in a minimum
time. Apart from this, it is helpful for overall enterprise in raising the productivity of
organization (Huselid, 2011).
Instead of all this, HRM practices play an eminent role in profit maximization by
producing unique and innovative products for attracting millions of customers. All these above
practices perform its roles and responsibility in different manner for example: -
 Gather accurate data and information for manufacturing various creative items
 Appoint skilled and experience people for implementing impressive strategies to reduce
loss as well as become ready to face future challenges
 Hedge the risk

M3
There are numerous methods used by personnel manager to to increase their productivity
and profit of a company by enhancing the learning of employees by conducting various
programmes and sessions. In fact there are number of HRM practices are available in a company
plays a very eminent role in solving issues of employees as well as entire associations.
M4
Employees relations act as a major tool in creating a healthy environment of a cited
enterprise as well as increase the productivity of a overall corporations by considering relevant
facts and figures. Mutual understanding between higher authority and lower is very much
essential to achieve set objectives in a minimum time period.
D2
According to Purce, (2014) employees relations between supervisors and subordinates
act as a indispensable tool in decision making process by making effective strategy so that they
can easily resolve their issues and barriers.
TASK 3
P5. Importance of relations of employees to influence HRM decision making
Positive relationship between employees is very much essential for maintaining the
healthy environment in organization as well as friendly relations with higher authority. Workers
play a significant role in the decision-making process because all resources are regulated and
controlled by them only (Becker, 2011). Therefore, mutual understanding in between employees
act as a useful tool in attaining the goals and objectives of an enterprise within given period
without wasting available resources. Their main motive is to utilise resources in an effective and
efficient manner. Along with this, it is having high impact on the decision-making process
because they are liable for every type of loss and wastage which affect overall profit of an
enterprise.
Importance of employee relations is mentioned as below: - Allocation of resources: - One of the major reasons behind healthy relations between
employees is utilisation of available resources because it is a useful factor during
manufacturing process.

 Attainment of objectives: - Positive dealings affect the target of company in a different
manner as it acts as an impressive tool in fulfilling the requirement of organization by
achieving its goals as soon as possible (Jackson, 2011). Satisfied customers groups: - Consumers are known as end user because products are
finally consuming by them only. In fact, for ALDI, satisfaction of consumers is at utmost
priority because products are manufactured based on customer demand. Development and growth of ALDI: - Success of an enterprise mainly depends upon
positive relations in between employees because they do activities only. Friendly environment: - Stress free surroundings have a great impact on the
development of an enterprise which occurred due to healthy relations in between various
staff members.
 Build goodwill of organization: - According to this, friendly surroundings are also very
helpful in building the image of an enterprise at international level (Schuler, 2011).
Apart from this, all these factors influence the decision-making process due to their broad
concept with full of complexity in nature. In addition, while taking decision, an organization
considers opinions of their employees as well as share views with the staff of company because
all roles and duties are performed by them. At last, relations at different level is a mandatory part
due to their value for enterprise.
P6. Legal laws and norms for employees and its impact on HRM decision making
Legal authority plays a vital role in protecting the rights of employees as well as prevent
from getting exploited (Werner, 2011). Therefore laws, norms, beliefs, rules, and regulations are
very much essential in creating an environment free from inequality and differences between
labours. Whole industry needs to adopt legal norms amended by legislation while establishing
their business across national boundaries because laws are applicable on whole industry whether
it is a small or large organization.
In addition, governing bodies want to establish a nation a free from any kin d of
discrimination which means they want to implement a secularism across national borders by
maintaining peaceful environment. Apart from this, legal authority wants to create a mutual
understanding in between different countries for exchanging goods and services in an efficient
manner (Meredith Belbin, 2011).

Along with this, legal authorities have enacted many more laws for the protection of
employees as mentioned below: - Equal pay act: - According to this act, every employee has authority to get equal pay
working at same level without any discrimination based on gender, sex, and colour
because they also have high impact on the decision-making process. Sex discrimination act: - This act is very much indispensable for every enterprise
because it creates equality in between gender and male or female are treated based on
their talent and knowledge. Disability discrimination act: - According to this act, disabled persons are provided with
special provisions due to their disability (Purce, 2014). Employment equality regulations: - All the rules and regulations are equally applicable
on every employee either he is working at higher or lower level. It means that there must
be absence of partiality in between workers at the time of performing activities.
 Equal remuneration act: - Compensation and remuneration is offered based on talent,
knowledge, and skilled persons without discriminating between employees.
All these above acts a have a greater impact on a decision-making process of ALDI due
to their broad concept with full of complexity (Storey, 2014).
TASK 4
P7. Application of HRM practices in a work-related context
HRM practices play an eminent role in organization while opening a new branch which
requires skilled and experienced people for executing the tasks for achieving their target within
minimum duration. Basically, ALDI is going to establish their business across national
boundaries for maximizing their profit with the help of different plans and policies. For example:
to run business efficiently, they need to recruit and select talented individuals to run the business
smoothly (Wright, 2011). Recruitment process is not an easy task which requires experienced
person for selecting the best alternatives to fill vacant positions in company. Major step is to
understand the job specification which requires mandatory documents to take part in the
interview process. HRM practices act as useful tools while executing tasks and activities in a
proper manner by considering essential micro and macro factors which also affect the
recruitment process due to its roles. In other words, selection process is going through various
stages which is essential in this process for effective running of an enterprise. For example: job

specification, job description, induction process and assigning of right person at a right job based
on their talent and skills.
Apart from this, HRM practices play an important role in the success of ALDI by
expanding their business across national borders by applying effective strategies and policies.
HRM practices like involvement of employees, job assessment process and job rotation means
that all factors of personnel management act as useful methods in executing tasks and activities
by fulfilling the demand of organization within limited time (McMahan, 2011). At last, it has
been understood that these practices are liable for attaining the objectives of ALDI by appointing
talented and knowledgeable candidates by considering various essential factors of selection
process.
CONCLUSION
By concluding this report, it has been understood that human resource management is
indispensable for every enterprise either small or large due to their essential roles towards
success of enterprise. It has been assessed that the major purpose of HRM is to assign right
person at a right job by encouraging their existing employees for developing own skills and
knowledge by attending various motivational programs. Apart from this, impact of various
employment laws like equal pay act, sex discrimination act, etc. are also highlighted whose main
motive is to prevent employees from exploitation or misconduct. Instead of all this, report also
covers effectiveness of HRM practices which is used by personnel managers of ALDI
organization popular for its qualitative products in their development and growth of company. At
last it describes the effective roles of human resource in achieving the target and objectives of an
enterprise.

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Human Resource Management. 2017.[Online]. Available through<https://www.inc.com/logan-
chierotti/self-made-billionaire-john-paul-dejoria-shares-2-facets-to-becoming-a-
successful.html>. Accessed on [7th July 2017].