Aldi: HRM Practices, Recruitment, and Employee Relations Report

This report provides a comprehensive overview of Human Resource Management (HRM) practices within Aldi, a UK-based supermarket chain. The report begins with an introduction to HRM, outlining its purpose and functions, followed by an analysis of the strengths and weaknesses of various recruitment and selection approaches, including internal and external methods. The report then delves into specific HRM practices, such as learning and development programs, flexible working options, performance management, and reward systems, evaluating their benefits for both the employer and employees. Furthermore, it examines the effectiveness of these practices in raising company profits and productivity. The report also explores the significance of employee relations and the impact of employment legislation on HRM decision-making. Finally, it examines HRM practices within a work-related context, offering a holistic view of HRM strategies and their implications for Aldi's success. This report offers valuable insights into the strategic importance of HRM in achieving organizational goals.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Purpose and functions of Human Resource Management...............................................1
P2: Weaknesses and Strengths of various approaches to recruitment and selection..............3
TASK 2............................................................................................................................................5
P3: Benefits of various HRM practices for employer and Aldi............................................5
P4: Effectiveness of different HRM practices in terms of raising company's profits and
productivity.............................................................................................................................6
TASK 3............................................................................................................................................7
P5. Significance of employee relations and its impacts in HRM Decision making...............7
P6: Key elements of employment legislation and their influence on HRM decision-making8
TASK 4............................................................................................................................................9
P7. HRM practices in work related context............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
There are various departments in an organization such as operation, human resource,
marketing, finance department etc. which contribute their maximum efforts in achieving desired
goals and objectives within pre-determined period of time. Among all departments, HRD play an
important role in fulfilling the requirements of human resource through conducting recruitment
programs and selection. For this, HR manager is liable who perform several functions for the
betterment of human resources which include conducting training programs, appreciation
through giving rewards, performance appraisal etc. The present assignment report is based on
Aldi, a supermarket chain of UK which deals in offering grocery products. The project includes
purpose and functions of HRM, In addition with this, strengths and weaknesses of recruitment
and selection approaches are also discussed under this report. All other aspects of HRM has also
been briefly described under this report in context of Aldi (Bloom and Van Reenen, 2011).
TASK 1
P1: Purpose and functions of Human Resource Management
Human resource management is formed with an objective of helping company to get
skilled and knowledgeable employees who contributes maximum efforts in achieving their
desired goals and objectives within given time frame. For this, HR manager of Aldi is liable to
perform several functions in order to enhance the capabilities of employees. It can be done
through adopting various HRM practices which includes training and development programs,
rewards and compensation etc. Employees are as asset of company thus must essentially required
to identify their needs at workplace of Aldi so as to improve their performance.
Strategic planning: It refers to the process in which the managers of an organisation
determine their vision for future as well as identify the main objectives for the organisation. On
the basis of which proper strategies and decisions are taken in order to direct their human
resources to perform well.
Following are the some functions of HRM:
Recruitment and selection: The main function that HR manager need to perform is to
recruit skilled and more qualified employees with an objective of getting maximum support from
them in achieving company’s desired goals. Recruitment programs need to be conducted in
which invitation has been given to eligible candidates to apply for the vacant job offered by
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company. After clearing all stages of recruitment process, candidates has been selected through
giving them job offer letter which contains all information regarding employability.
Orientation: It is such a programs which is conducted to make good relations among
existing and new employees. In such program, mission, vision of Aldi has informed to new
candidates with an objective of motivating them to perform their delegated roles and
responsibilities in better way.
Creating healthy work environment: Identifying needs of training through collecting
feedbacks from employees at workplace and fulfilling them on right time help in establishing
healthy atmosphere at workplace of Aldi. It help in retaining experiences employees with
company for longer period of time (Daley, 2012).
Training and development: Analysing the performance of each employees help HR
manager of Aldi to know about low and high performer of an organisation. Due to this, training
programs has been provided to enhance the capabilities and skills of low performer. It help them
to compete with their rivals in company in an effective and efficient manner.
Managing employee relation: Giving appreciation to employees through giving rewards,
compensation, promotion are the techniques to maintain employee relation. After proper analysis
of their previous performances help HR manager in maintaining better relation with their
employees. It increases the chances of retaining them for longer period of time.
Soft and Hard HRM
Hard HRM
 Minimum regards to human sources requirements in the department
 Providing maximum emphasis on quantitative aspects. It is the fact of being pre-eminent or crucial need of business.
Soft HRM
 Employees should be well trained to generate profit in order to get competitive
advantage.
 Significance of behavioural aspects of an individual those are working at organisation
premises.
P2: Weaknesses and Strengths of various approaches to recruitment and selection
Recruitment and selection are two crucial activities which are performed after each other.
Firstly, the recruitment programs has been conducted in which HR manager publishing
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advertisement about job vacancy in an organisation along with the job and person specifications.
After clearing all stages of recruitment, HR manager of Aldi select well qualified and skilled
candidates through offering them job offer letter which provide all information related with
employability. These two activities are briefly discussed under the below:
Recruitment: It is the process which start from invitation made to eligible candidates
through publishing advertisement on company’s website, newspaper etc. which contains all
information about vacant job. This will grab an attention of large number of applicants to apply
for the vacant job. As Aldi is reputed organisation thus can easily attracts candidates to apply.
Recruitment consists of two approaches which are given as below:
Internal approach: In this approach, recruitment process has been made within an
organisation. The existing employees are given an opportunity to apply for the vacant job in
order to achieve higher designation in company (Guest, Paauwe and Wright, 2012). It can be
done in form of promotion, extension of services etc. Such approach has some strengths and
weaknesses which are listed below:
Strengths Weaknesses
 Existing employees are much aware
about working environment which
become easy for them to adjust
within less time.
 Not required to invest more money
on conducting programs as
promoted employees are already
having work experience.
 Maintaining healthy work
atmosphere due to having better
relation with co-workers.
 Restriction on recruiting candidates
outside of an organisation restrict
company to get new and innovative
ideas due to which existing working
procedure remain the same.
 Non-promoted employees may feels
demotivated and dissatisfied.
External approach: Under this approach, invitation has been given to outside of an
organisation with an objective of providing job opportunity to new candidates which are more
skilled and qualified (Halbesleben, 2010). Invitation can be made through giving advertisement
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on newspapers, company’s official website etc. It has also some strengths and weaknesses which
are determined as below:
Strengths Weaknesses
 Providing job opportunity to new
candidates can help company in
getting new and innovative ideas
which enable them to compete with
their rivals in an effective and
efficient manner.
 Due to having large number of
applicants, it become easy for HR
manager to recruit best candidates
for vacant job.
 Entrance of new candidates brings
lots of energy at workplace which
makes positive impact on existing
employees as well.
 It consumes more time and money as
inviting new candidates through
advertisement is very lengthy process.
 Poor support from existing employees
may bring disadvantage to company.
Selection: This is the final stage of recruitment process where the candidates who cleared
all stages of recruitment are selected for vacant job through giving them job offer letter. Such
letter contains all informations related with their employability. It consists of two methods which
are given as below:
Systematic: In this, a systematic procedure has been followed while selecting best
candidates. It involves several steps which need to be followed such as job analysis, person
specification, short listing, selecting, offer letter, joining date of selected candidates.
Unsystematic: In this, no systems or procedure are followed by HR manager as new
candidates are selected on random basis. For example, selecting CV randomly from huge number
of applicants and given them job opportunity (Manroop, Singh and Ezzedeen, 2014).
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TASK 2
P3: Benefits of various HRM practices for employer and Aldi
Human resource management practices: HRM practices includes various activities
which are essentially required to to be conducted for the betterment of their human resource with
the expectation of getting maximum output from them. Such activities includes training and
developing programs, flexible working options, rewards system etc. which are an effective way
of encouraging employees to contribute their maximum efforts. HRM practices brings
advantages to Aldi as well which are briefly described as below:
HRM practices Benefits to employees Benefits to Aldi
Learning, training and
development programs
Conducting learning and
training programs adding the
skills and capabilities to the
employees which make them
more capable to bring
profitable outcome from the
allotted task.
The overall performance of
company are wholly depend on
the contribution of employees.
Thus, training and learning
programs increases the
knowledge of employees to
perform in different field due
to which they gives maximum
support to company in
increasing their sales figures
and revenue.
Flexible working options Providing flexible working
options enhances the
willingness of employees to
focus on their allotted work
and perform in better way.
Due to having different nature,
different employees are willing
to perform in different shifts,
hours etc. thus giving them
such options maximise the
Flexible working options
maximises the working
behaviour of employees due to
which they contribute
maximum efforts which in
result increases in productivity
of company.
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working behaviour of
employees which in results
increase their performance
level as well.
Employee performance
management and monitoring
Performance analysis help HR
manager in identifying the
more skills and capabilities of
employees. This will enable
manager to conduct training
programs in order to increase
the potential of low skilled
employees which increases
their chances of their
promotion as well.
Monitoring the performance of
employees help HR manager
to know which employee
brings more profitable
outcome to company. Thus
become easy for them to
provide promotional
opportunities in an
organisation.
Payment and reward
management
It is such a practice which is
adopted to appreciate the
performance of employees
through giving them rewards
and extra monetary payments.
It brings their motivation and
confidence level.
Reward and payment
management increases the
working behaviour of
employees due to which the
company can able to retain
experiences employees for
longer period of time.
P4: Effectiveness of different HRM practices in terms of raising company's profits and
productivity
HRM practices includes learning, training and development programs, performance
appraisal and rewards system, flexible working options etc. which makes positive impact on the
revenue and productivity of Aldi. Their contribution towards organisational goals and objectives
are given as below:
Learning, training and development programs: This is the practice which supports
employees in increasing their potential and knowledge so as to make them more capable of doing
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allotted task in an effective and efficient manner. This will increases the contribution of
employees towards organisational goals due to which the chances of earning profits are more.
Flexible working options: It also enhances the working behaviour of employees which in
result increase their performance level. As giving option to employees regarding working at their
own choice hours increases the efficiency level of employees due to which the chances of
achieving growth and success of Aldi are more (Pierre, 2016).
Payment and reward management: It is considered as an effective HRM practice which
brings motivation and confidence among employees to work hard and perform their allotted roles
in an effective and efficient manner. Appreciation given in form of rewards, extra salary,
incentives etc. encourages employees to bring out best among them which help Aldi to achieve
desired goals and objectives of Aldi.
TASK 3
P5. Significance of employee relations and its impacts in HRM Decision making
In every organisation, it is necessary to make healthy relationship among each
department as well as staff. This must be the primary role of managers to make proper balance
among people in must be comfortable with every one for increasing productivity of the company.
This relationship among employer and concern parties can have valuable responsibility to
everyone that can help them to attain the objectives set through the organisation in more
effective manner. It is important for an organisation to succeed in particular firms must take into
emphasis on strong employee relations. In order to maintain positive employer and staff’s
behaviour can have key to make ultimate growth of an organisation in respect to attain more
benefits in near future time. ER assist in overall communication so that all tasks can be maintain
in effective ways in right time (Ployhart and Moliterno, 2011).
 Proper decision making: It assist in better decision making by collecting specific
information about all those matter those are collected from the department. Appropriate
feedbacks and reviews can be gather from employees that can only be retained, if there
are positive relations between management and employees.
 Easy to evaluate work performance: Positive relations among employees of an
organisation i.e. Aldi will be helpful to communicate and make effective decision with
everyone that can useful to analyse performance in proper manner.
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 Work become more simple, if it is shared between all: A healthy attitude and relations
can be expected from worker in more easy manner to load on company and increase
overall productivity of Aldi company. All responsibility must be categorised into team
members to attain the allotted tasks within the stipulated time period.
 Providing reliable solution to analyse behaviour of an employees that assist in enhancing
loyalty and dedication of employees due to which they can provide them better facilities
to the company for longer period of time.
 It would be helpful in attracting current employees as well as after collecting knowledge
regarding overall treatment under the present employees of Aldi Ltd. This will be helpful
in management in attainment of appropriate knowledge to get desire aims of an
organisation during the time (Storey, 2014).
P6: Key elements of employment legislation and their influence on HRM decision-making
Employment legislation: It is the law which governs employment at workplace with the
employees who are working in an organisation. It includes safety measures which protects the
interest of employees at workplace in an organisation. There are some acts formulated by
government need to be implemented by ALDI so as to maintain healthy environment at
workplace. Such Acts are described as below:
Employment rights act: Such act indicates that every employees irrespective of the
position in company have equal right to receive basic facilities offered by an organisation. No
discrimination are allowed as the HR manager are liable to provide advantages of the services
offered by Aldi (Surroca, Tribó and Waddock, 2010).
Minimum wage act: This act states that minimum wage which should required to be
atleast paid by company to the employees who get legal employability. Such minimum wage can
be changed due to political and economical factors. As Aldi has employed large number of
employees due to which it is compulsorily for them to implement such atc in order to maximise
the working behaviour of their emplyees.
Workers discrimination act: It is the act which states that employees should not be
discriminated on the basis of their caste, religion, colour, gender etc. as all employees are eligible
to treated equally. While promotional programs, all the employees should be given equal priority
after considering their performance instead of their caste, region etc.
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Working time directive: This act described the minimum working hours which should be
completed by employees who gets legal employability. According to this act, the employees are
directed to work at least 48 hours in a week. Thus, Aldi need to focus on implementing such act.
Health and safety act, 1974: Such act states that the employer are liable to think for the
betterment of health of their employees. While performing at workplace of Aldi, accidents may
happen due to which precaution should be made in order to prevent them from any damages
(Wright and McMahan, 2011).
Data protection Act: Such act directs organisation to protect the crucial information
about their employees, loyal customers, rival's strategies etc. so that no one can misuses their
information for their own benefits.
Influence on employee legislation: Such employment legislation may influences the decision
making made by the management which are given as below:
Record of minimum pay: It is the responsibility of HR manager to maintain and keep all
records of payment given to employees so that funds available with company are easily
identified. This influence decision-making of management regarding allocation of resources.
Maintaining working hours records: It is an essential to maintain records of working
hours completed by employees so that the decision has been made regarding giving flexible
working options.
TASK 4
P7. HRM practices in work related context
HRM practices is compulsorily required to adopt by every organisation as it includes
several activities such as formulation of an effective strategies, plans, recruitment programs etc.
Such practices help Aldi to enhance their capabilities and potential of employees which brings
profitable result to them in near future. The practices which are required to be adopted by Aldi
are given as below:
The staff members of an Aldi at stores doesn't require to assist customers in purchasing
their products as particular section are there for different clothing products which makes easy for
customers to buy their preferable clothing products. This will reduces the cost of employing
more and more staff.
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Human resource information system: HRIS provides all information relations to the
several functions and activities performed by HR Manager of Aldi. It is considered as a strategic
tool of the company.
Healthcare Benefits: Employees are an asset of company thus required to concerned
about maintaining their health through providing them medical facilities. It feels them safe and
secure due to which their overall contribution towards organisational goals are increased. Aldi is
known retailer organisation which has attained huge customer strength due to charging low
prices on their products and services. They also support minimum amount of packing. For
example, the products company offered doesn't contain shrink wrapping plastic and they have
their own recycling station too which minimises their amount of wastage. Aldi is the first
supermarket which is introducing National Pricing Policy. According to such policy, an
organisation is required to pay extra than the market rate in order to retain experiences
employees with company for longer period of time. They keep their different product in different
section which makes easy for customers to select their preferable goods (Functions of HRM,
2018).
CONCLUSION
It has been concluded from the above project report that an organisation can achieve
growth and success when it has attained more skilled and knowledgeable employees with the
help of HR manager who are liable to conduct recruitment programs and selection. HRM is
formed for the betterment of an organisation thus it is their responsibility to adopt various HRM
practices on regular basis so as to bring motivation and confidence among human resource.
There are different employment legislation such as equality act, 2010, health and safety act etc.
which are require to implement within an organisation in order to prevent from any penalties
which may imposed by government of such country in which the company has operated its
business.
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REFERENCES
Books and Journals
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook
of labor economics. 4. pp.1697-1767.
Daley, D.M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
Guest, D. E., Paauwe, J. and Wright, P. eds., 2012. HRM and performance: Achievements and
challenges. John Wiley & Sons.
Halbesleben, J. R., 2010. A meta-analysis of work engagement: Relationships with burnout,
demands, resources, and consequences. Work engagement: A handbook of essential
theory and research. 8. pp.102-117.
Manroop, L., Singh, P. and Ezzedeen, S., 2014. Human Resource Systems and Ethical Climates:
A Resource‐Based Perspective. Human resource management. 53(5). pp.795-816.
Pierre, J. ed., 2016. Partnerships in urban governance: European and American experiences.
Springer.1021.
Ployhart, R. E. and Moliterno, T. P., 2011. Emergence of the human capital resource: A
multilevel model. Academy of Management Review. 36(1). pp.127-150.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Surroca, J., Tribó, J. A. and Waddock, S., 2010. Corporate responsibility and financial
performance: The role of intangible resources. Strategic management journal. 31(5).
pp.463-490.
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
Functions of HRM. 2018. [Online]. Available through: <https://www.keka.com/5-major-
functions-human-resource-management/>.
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