Human Resource Management Theories

This assignment delves into the core theories and practices of human resource management. It examines various perspectives on HRM's influence on organizational performance, drawing upon research by prominent scholars like Guest, Jiang et al., Wright & McMahan, and Bloom & Van Reenen. The assignment also discusses strategic HRM's role in building organizational resilience and addresses contemporary issues such as talent management and work-family balance.

Unit 3. Human-resource-
management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Purpose and functions of HRM applied at workforce...........................................................4
P2 Strength and weakness of approaches to recruitment and selection......................................5
TASK 2............................................................................................................................................6
P3 Benefits of HRM practices to employee and employer.........................................................6
P4 Effectiveness of HRM practices in raising profit and productivity.......................................8
TASK 3............................................................................................................................................9
P5 Importance of employee relations and its influence on decision making process.................9
P6 Key elements of employment legislation and its impact on decision making.....................10
TASK 4..........................................................................................................................................11
P7 Application of HRM practices in work related context.......................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management consist of everything which is related to relationship
between employee and employer as well as management of people working in an organization to
perform their job role. Basically, it is an indispensable function of an enterprise which is helpful
in achieving the objectives of a company in each period. Main motive of HR department is to
enhance the learning skills and talent of their employees working in an organization. This report
about ALDI is a common brand of supermarket famous for its qualitative grocery items for
example fresh food, drinks, and household items (Avey, and et. al., 2011 ).
Therefore, this assignment is going to highlight the effective role and responsibility of a HR
department towards success of a company. Basically, it throws some light on impact of
employees relations on decision making process and various rights enacted by legal authority for
protecting the workers from any exploitation or discrimination. Apart from this it also shows
different approaches of selecting and recruiting deserving or eligible candidates to fill the vacant
position of a company. At last HRM practices plays a very eminent role in attaining the
objectives in a minimum time.
TASK 1
P1 Purpose and functions of HRM applied at workforce
HRM practices are very much indispensable at workplace during planning process
because they are liable to managing all the activities. Basically, main purpose of HRM practices
are to enhance the knowledge and skills of their employees with the help of different methods or
techniques. ALDI wants to run their business smoothly across national boundaries by fulfilling
the demand of their desired customers by manufacturing qualitative products. Therefore, HR
department of ALDI wanted to manage and control all the activities in a proper manner by
applying useful methods. Apart from this they also perform various effective functions which are
mentioned below:-
 Recruitment and selection:- It is an effective process of selecting potential and
knowledgeable individuals to fill the vacancy of a company. Main motive of this
function is to capture the attention of a qualified applicants and judge based on their
talent or eligibility for a particular job. HR department of ALDI conduct this program
because it is very important for every organization either small and large.

 Orientation:- It is a fundamental step of a HR whose main aim is to help newly
appointed employees to adjust themselves in a unfamiliar environment. It means this is
an appropriate method of introducing employees in front of whole staff and motivate
them towards their personal and professional goals (Hammer, and et. al.,2011).
 Maintaining good working conditions:- One of a major responsibility of a personnel
managers are to provide impressive working conditions to every employees working in a
company. Basically, friendly environment is very much essential for whole enterprise to
complete their set target and objectives in each period without facing any obstacles and
barriers.
 Management of employee relations:- Positive relations between higher authority and
lower level is very much indispensable because it have a greater impact on decision
making process. Therefore, positive relationship between employees creates a healthy
surrounding which act as a motivational tool for whole enterprise.
 Training and development:- HR department are liable to conduct enhancement program
for employees by implementing various improvement sessions. They also appoint
specialised and skilled persons to improve the learning skills of a workers working at a
workplace.
Apart from this one of a major purpose and functions of HRM practices are to assign a
right person at a right job with the help of different approaches.
P2 Strength and weakness of approaches to recruitment and selection
ALDI adopted various strategies for selecting potential and qualified candidates by
conducting appropriate methods of recruitment. Basically human resource managers of ALDI are
liable to recruit and select employees to fill the vacant position of their company by adopting
various useful methods which are mentioned below :-
 Internal approach:- According to this method personnel manager of an enterprise fill
vacant position by transferring existing workers from one branch to another for example
posting, promotion etc. Basically, it is very useful technique for large organization
because it safe time and it will take minimum time (Tarique, 2010).
Strength :-

1. Employees are familiar with environment of a company for example if customer executive is
promoted as a sales manager then they can easily manage all the task because they are
comfortable with surrounding .
2. Consume minimum time period for instance customer executive is already available in a
company due to which it will not consume maximum duration.
3. Required minimum capital because there is absence of advertisement cost.
4. Short process due to the unavailability of promotional programmes.
Weakness :-
1. Create another vacant position for example promotion of customer executive as a sales
manager create another empty position of consumer executive.
2. Chances of disputes and conflicts like if one customer executive is promoted then it creates
contentions between other executer because they also want appreciation.
3. Absence of innovative ideas for example if same employee get upgraded at higher position
then there is lack of new thoughts.
 External approach:- According to this approach human resource managers select
candidates by conducting advertisement or from external factors. It means employees are
recruited from outer world without consulting any existing employees. ALDI conduct
various promotional programs for capturing the attention of millions of unemployed
peoples.
Strength :-
1. Emergence of new and innovative ideas for example if fresh and new employees get hired by
recruiter then they come up with totally creative ideas.
2. Availability of experience and skilled persons for example appointment of knowledgable
person.
Weakness :-

1. Unfamiliar with environment for example newly appointed candidates are unknown for
organization.
2. Long process due to advertisement and promotional programmes.
3. Requires maximum fund because of long process as well as recruiter team is going to
conduct many more programmes which will consume maximum capital.
 Third party approach:- In this approach personnel managers of ALDI recruit employees
by taking help with any third party for example agency or any consultant which act as a
mediator in between employees and referred company. There are number of consultant
are emerging which trained individuals to perform their job role by improving skills of
employees.
Strength :-
1. Emergence of talented and knowledgeable employees.
2. Experience employees.
Weakness :-
1. Chances of confusion due to emergence of third party for example if an organization is going
to hire new employees with the help of mediator then it automatically creates confusion.
2. Very long process due to the presence of agencies or consultancy team.
3. Requires maximum fund for example if ALDI is going to use this approach then they need to
pay commission to consultancy team for hiring experienced and talented candidates.
All the above approaches are used by ALDI company for selecting and recruiting best
alternatives for performing job (Schuler, 2010). Therefore, human resource managers are
responsible for setting all the activities of an organization in an efficient manner.
TASK 2
P3 Benefits of HRM practices to employee and employer
HRM practices plays a very eminent role in providing extra facilities to their employees
and employer in different manner. Therefore they implemented various strategies and policies to
render special facilities to their employees which are mentioned below :-

Benefits of employees:-
 Training and development:- According to this policy an organization is going to provide
enhancement session of employees with the help of specialised and skilled persons.
Human resource managers are appointed counsellor to motivate their workers towards
personal and professional goals by encouraging them.
1. Improvement programmes:- ALDI believes in improving the capability and learning
skills of employees by implementing various sessions. Therefore, it act as a useful tool
and technique of improvement. According to cited company employees are one of an
essential resource because all the task and activities are controlled or regulate by them
only.
 Personality development:- With the help of training and development an employees can
also enhance their overall personality which attract numbers of customers as well as
organization. In fact, outer look of any employee is very much important because first
impression is the last impression that's why ALDI believes in improving whole
personality of employees.
 Flexible hours:- For removing mental stress of an individual’s flexible hours is very
much important and useful because somehow it also motivate employees as well as
reduce their stress level ( Wright, 2011).
Benefits and employer:-
 Compensation and remuneration :- Employers of an organization have a right of getting
compensation due to overtime. It means ALDI provides extra benefits based on
impressive performance of any employer working in a company. In fact, sometime
company uses this trick to encourage employees.
 Appreciation or appraisal programs: - Appraisal session is also one of an effective
method of motivating employers in short intervals. Basically, it acts as an indispensable
tool for encourage them to continue their job role for longer period of time.
 Medical insurance:- According to this benefits an organization also provide medical
facilities to their employees because future is uncertain and incident always happen
suddenly. In fact, government of country enforce this that every private or public
company must provide medical facilities to their permanent employers.

 Health and security:- Safety of health is a utmost priority of every employers working at
a workplace because health is a wealth (McMahan, 2011). Therefore, HRM practices of
ALDI implemented many more schemes of protecting their employees from harmful and
dangerous effect.
 Retirement benefits :- There are number of laws are enacted by government to provide
retirement benefits for their employers for example pension schemes, mortgage, death on
duty etc. ALDI also provides retirement facilities to their employers after spending their
precious years in same company.
 Leave:- Employers also get leave facilities for example sick leave, emergency, planned ,
paid leave etc.
All the above facilities are very much important and indispensable for employers and
employees so that they can perform their roles and responsibilities in efficient manner by
achieving the objectives of a company.
P4 Effectiveness of HRM practices in raising profit and productivity
HRM practices plays a very eminent role in maximizing the profit of a nation by
implementing various useful schemes or strategies. In fact, ALDI believes in adopting various
techniques or methods of profit maximization which is very useful in attaining target of a
company. Therefore various effective HRM practices are mentioned below which are useful in
raising profit and productivity of an organization:-
 Recruiting and selection:- According to this recruitment process an organization is going
to appoint eligible and talented individuals to increase their profit by manufacturing
qualitative products for attractive millions of consumers. HR department must consider
all the relevant factors during selection process which is require in increasing
productivity of a company. For example if ALDI appointed person who is specialised in
marketing they can easily promote their product across national boundaries which
automatically increase the productivity of a company.
 Training and development:- ALDI also trained their employees in an effective manner to
improve their learning skills and knowledge so that they can perform their specific task in
a proper way. Basically, employees are one of an indispensable resource for cited
company because it enhance the overall personality of employees which is very useful for
profit maximization (Jiang, 2012). For instance if employees are fully trained then they

can easily convince customers and know how to deal with different clients which resulted
in a profit maximization.
 Performance management:- HR department of ALDI plays a very eminent role in
enhancing the performance of workers in a proper way. It means they are responsible for
managing or controlling the presentation of labours by adopting various useful tools.
 Job rotation:- HR manager of a company rotate employees on the basis of their talent and
skills to reform the environment of an organization. In fact, job rotation is a useful
technique of moving employees from one task to another for gaining experience. Main
motive of this impressive technique is to provide satisfaction to labours by moving them
from one job to another. Like if employees are rotated from one position to another then
it automatically increase their learning which is beneficial for ALDI.
 Measuring performance:- According to this technique personnel managers of
organization are responsible to measure the performance of employees working in ALDI
to improve their capability and learning skills. Therefore, main motive of a performance
measurement is to increase their productivity as well as profit by manufacturing
innovative products.
 HR planning:- Planning process is a most important and useful strategies of estimating
future cost by minimizing the losses. Therefore, HR department of ALDI prepare an
effective plan to set all the activities so that employees can easily perform their roles and
responsibility. Main motive of a planning process is to minimization of losses as well as
maximization of profit by hedging their risk. For example if all HR department of ALDI
plans all the activities in a proper manner then it helps company in minimizing their
losses which indirectly increase their productivity.
TASK 3
P5 Importance of employee relations and its influence on decision making process
Positive relationship between employees is very much indispensable because it affects
environment of whole industry in different manner because all the activities are managed and
regulated by labours. Therefore, it has a greater impact on a decision-making process due to their
roles and responsibility towards success of organization. In additional relationship between
employees plays a very eminent role in achieving the objectives of a company in each period by

satisfying their customers with qualitative products. Relationship between employees is
important due to many reasons which are stated below :-
 Healthy surroundings:- Environment of an organization have a greater impact on
performance of employees in every manner. Stressful surrounding demotivate labours of
an organization which influence decision making process.
 Effective communication:- Proper interaction between higher and lower level is very
much indispensable because during decision making employees also take part by sharing
their views and opinions (Lepak, 2012).
 Proper allocation of resources:- Products are manufactured with the help of necessary
resources so it is very important to utilise resources in an efficient manner. Employee
relations plays a very eminent role in converting raw materials into finished goods.
 Works become easy:- Sharing with various employees works become much easier and it
completed in a fastest way by attaining goals of an enterprise.
Importance of employee relations are mentioned below :-
 Reduces risk:- It affect decision making process of an organization by minimizing risk
and employee relations is also useful in facing the challenges of company.
 Every employee feels comfortable if there is a friendly relationship between higher
authority and lower level.
 Achievement of company objectives in a minimum time with the help of various
techniques and methods.
 Enhancement of employee’s knowledge and skills by healthy interaction in between
labours by appointing experienced persons.
For example if employees and employer of ALDI is having a healthy and positive
relations then it automatically influence success of company because workers are one of a
indispensable asset of an enterprise.
Apart from all this it has been understood that positive relations in between employees is
very much useful and effective for betterment of company because it acts as an impressive tool
in attaining objectives of a ALDI. Healthy relations are a sign of positivity which also attract
millions of customers towards their qualitative product. At last it proves that employee relations
are very important.

P6 Key elements of employment legislation and its impact on decision making
There are several employee legislations which affects human-resource-management's
decision making. The different acts are there which will assist in providing directions which will
support in effective decision making by HRM. A law body has made employer/employee
relation and different employee and employers right as well. These legal regulations include:
Employment Rights Act: It is the most significant act and involves entitlement of national
minimum wage and pay statement. It also involves all the necessary conditions and terms of
working must be there in written which assist HRM in giving job description. According to this
act every employees have rights and authority to claim for their necessary demands.
Sex Discrimination Act, 1975: It helps to protect employees in regards with any kind of
discrimination which is based on gender, employee selection, promotion of employees and
opportunities which are given in development and training.
Equal Pay Act, 1970: It explains that man and women must receive equal amount of pay in order
to do same work in an organization.
Race Relations Act, 1976: This type of act explains that there must be no discrimination on the
basis of gender, religion, sex etc. According to this act they manager of company required to
create sovereign environment because it helps them in creating a mutual understanding between
staff members.
Disability Discrimination Act, 1995: This type of act is applied to an organisation which are
having more than 20 people. It is important to make accommodation of disabled needs and must
determine right of access in transport, education and several areas for the person who is not in
good condition. This kind of act describes discrimination related with disability, when the
disabled person in not treated properly.
National Minimum Wage Act, 1988: Each and every employee is responsible to get minimum
amount of wage in an organization. The minimum wage must be maximized each and every year
so as to maintain living cost.
TASK 4
P7 Application of HRM practices in work related context
HRM practices plays a very eminent role while opening a new branch of ALDI across
national boundaries by adopting appropriate strategies for conducting all the activities in a proper

manner. For example, during expansion of a company they need to appoint skilled and
experienced persons so that they can perform all the activities in a minimum time period.
Basically, applications of HRM practices act as a useful tool during execution of work to achieve
their target in a minimum time (Hu, 2012).
Apart from this, while selecting or recruiting deserving candidates an organization need
to follow appropriate procedure. Initially they need to specify the job then they need to assign a
job right person at a right job.
For instance noteworthy arrangement is required while leading instructional courses for
assistant of five star lodging which is portrays as takes after :- Upliftment in identity:- Initial stride is to build up the general identity of secretary by
helping her towards improvement of their external look since it is justifiable that early
introduction is consider as a last impression. Consequently chief intention is to educate a
representative for elevating her identity by dressing legitimately to seek the consideration
various of guests. Communication skills :- Secondly, it is fundamental to figure out how to cooperate with
various customers so they get pulled in towards chose inn. It implies she needs to manage
customers in an exceptionally pleasant manner. Resistance level :- High persistence level is fundamental so representative may work in
an unpleasant surroundings without over responding. Persuading power:- In hospitality division it is exceptionally fundamental to know how
to persuade guests commonwealth by fulfilling their requirements and needs.
 Negotiation skills :- At last, it is additionally exceptionally required to improve their
transaction aptitudes for sharing or examining about terms and states of an undertaking
with a few clients with no dithering.
CONCLUSION
From the above report, it has been concluded that, this report is all about effective role of
HRM practices in achieving the target of an enterprise. Basically, it highlighted the HR
department of a multinational company named as a ALDI which is popular for its food items
with household things. In fact, main motive of this assignment is to show the actual functions
and purpose of a human resource management as well as their role played in success of a
company. Therefore, HR department is an indispensable part of every company either small and

large because it has a greater impact on decision making process. At last it has been understood
that employees are one of a major resource for ALDI that's why they believe in enhancing
knowledge of a workers.
REFERENCES
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