Human Resource Management in ALDI: Strategies and Practices

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Human resource management
1

Contents
Introduction....................................................................................................................................................2
LO1................................................................................................................................................................2
LO2................................................................................................................................................................5
LO3................................................................................................................................................................8
LO4..............................................................................................................................................................12
Conclusion...................................................................................................................................................16
References....................................................................................................................................................16

Introduction
Human resource management is the most important part of any organization because it deals
with the planning, recruitment and managing the human resources in the organization. Human
resources are the most important assets for an organization because it is the people who maintain
the overall performance of the organization (Boxall and Purcell, 2011). In this assignment report,
the discussion will be done various human resources practices applied in an organization in the
context of ALDI. It will also reflect the better understanding of roles and functions performed by
the organization to manage the human resources and different work-related practices of human
resources will be discussed in that report.
ALDI includes discount supermarket chain in the combination of two German families and it has
more than 10000 stores in almost 20 countries. The company is earning an estimated turnover of
more than 50 billion. ALDI have provided 25000 new opportunities for its staff and managers.
The employees of the company are focused on achieving common goals. The employees of the
company include store employees, warehouse employees, district managers, office employees,
and IT employees (ALDI, 2019). The recruitment process of the ALDI is done by the online
application or in person interview depends upon the requirement of the job (ALDI, 2019)

LO1
Human resource management
HRM includes a strategic approach to managing the performance of the people in an
organization which results in achieving competitive advantages. Basically, it is dealing with the
planning, allocation and managing the human resources in the organization to achieve the
business objectives (Bratton and Gold, 2017)
Roles and responsibilities of the HR department
 Planning and recruitment related decisions are taken by the HR department of the ALDI
 Management of the performance of the employees is done by the HR department
 The setting of compensation plan including remuneration and incentives decided by them
 Training and development programs are organized by the HR department of the company
 The HR department is focused on maintaining employee relations
Functions of the HR department
Hiring and recruitment
Hiring is the process of attracting new talent pool towards the vacant post in the organization and
their recruitment is done by the application form and interview process. Selection of the best
candidate is done by this function in the organization (Cabellero and Walker, 2010)
Objectives of ALDI
ALDI is highly focused on providing the best customer service and for that purpose, the
organization needs skilled staff. The hiring and recruitment process helps in bringing suitable
employees in the ALDI
Training and development

HRM process helps the employees to acquire new knowledge and skills and development of the
employees also results in the development and growth of the employees. The performance level
of the employees improved by efficient training and development programs (Cohen, 2017)
Objectives of ALDI
Improved knowledge and skills of the employees to use the new technology in the organization
which will help in assisting the customers
Compensation and performance management
Remuneration and incentive plans for the employees decided by human resource management.
HRM ensures that the performance of the employees met with the desired performance level.
Employees feel satisfied and encourage themselves to perform more efficiently (Cascio, 2015).
Objectives of ALDI
ALDI wants to improve the performance level of the employees to provide effective customer
services that will improve the brand reputation of its supermarket chain stores and it is also
deciding effective compensation plan for its staff
Purpose of the HRM
 To facilitate an organization with a qualified talent pool
 To manage the performance level through an effective reward and feedback system
 It focuses on smooth running and functioning of the organization
 Management and control on the human resources to create various opportunities for them
Assessment of different approaches
Workforce planning
This related to the looking and identifying the current and future needs of human resources in the
organization. This helps ALDI to identify the requirement of human resources in the

organization to perform different job roles. Planning for human resources is necessary for ALDI
because it helps in fulfilling the vacant post in the organization (Islam, 2018)
Recruitment and selection
Recruitment is the process of attracting a large pool of talent perspective towards the vacant post
and selection is the process of selecting the right candidate from the large talent pool. This
process helps in bringing out the new skilled and qualified talent in the ALDI (Noe et al., 2017)
Development and training
Training is provided to the employees to create an understanding of their job roles and
development is provided to improve their knowledge and skills. This helps in improving the
performance of the talent in the ALDI organization
Performance management and reward system
Performance management is the process of measuring and evaluating the performance of the
employees to enhance their performance so that the overall performance of the organization can
be improved (Mone and London, 2018). Rewards are provided to the employees for their
outstanding performance in their work. An effective reward system helps in keep motivate the
employees of the ALDI (Chowhan, 2016).
Approaches to recruitment and selection
Internal approaches
In this approach, the employees are sourced from the organization itself. Identification of the
new employees is done by the internal analysis of the ALDI. Recruitment and selection process
is applied for the employees who are already working in the organization. For example, ALDI
can fulfill the senior job position by giving promotion to an existing lower-level employee
(Hunter et al., 2017)

Strengths
 Creates new opportunities for the
existing employees
 Quick and fast recruitment
 Knowledge of business and its process
Weaknesses
 Limited access to talent
 Absence of new knowledge
 Lack of innovation
External approaches
In this approach, the recruitment and selection process is applied for those candidates who are
available at the outside of the organization. Candidates are sourced through the effective
recruitment and selection method such as face to face interview, online interview, telephonic
interview, assessment centers, etc. ALDI uses external approaches to select the skilled and
qualified candidate the requirement of job position in the organization. Choosing the best
approach of recruitment depends upon the situation in the organization. For example the online
recruitment process for IT managers (Ahmar et al., 2017)
Strengths
 Qualified talent pool
 Absence of internal politics
 New knowledge and skill can be
utilized
Weaknesses
 Expensive methods
 Difficulty in the management of large
talent pool
 The threat of untruthful presence of the
candidate

LO2
Employee relationship
This refers to the relationship exist between employee and employer of an organization. ALDI
organization is always putting efforts to maintain an effective relationship with its employees.
The good relationship between them is possible through equal and fair treatment of the
employees (Jamali et al., 2015)
Approaches
 Day to day communication with the employees
 Equal and fair treatment of staff and managers
 Developing Harmonious relation with the employees
Employee engagement
It is considered as the property of the relationship exit between an employee and the
organization. Basically, it refers to the involvement and engagement of the employees in their
work which can easily be observed by the employer. People in the ALDI involve themselves in
their job to achieve the organization interest and reputation (Morgeson et al., 2019)
Approaches
 Reward and recognition of the employees
 Bonuses and incentive plans for the employees
 The flexibility of the work environment
Flexibility at work
It refers to the availability of the efficient working condition and working environment that is
provided by an organization. The work conditions and environment should be flexible enough so

that employees can adjust themselves. Flexible working condition in the ALDI helps in
encouraging the job involvement of the staff (Timms et al., 2015)
Approaches
 Effective work environment and working condition
 The flexibility of the working hours
 Quick adoption of the changes in the work
Employer of choice
It refers to an employer who is able to provide a good working culture and workplace
environment that attract the workers and also helps in their retention. To be an employer of
choice the ALDI organization maintaining the wellbeing of its staff and customers (Noe et al.,
2017)
Methods of employer relationship building and employer engagement
Communicate with the employees
Daily interaction with the employees helps in providing assistance in their work. to establish a
good relationship with the employees the employer need to involve them in day to0 day activity
by establishing internal personal communication with them (DeCenzo et al., 2016)
Moral obligations
To protect the welfare of the employees the employer is needed to follow moral obligation
regarding them. it is the responsibility of the employer to provide equal treatment and fair justice
to their employees (DeCenzo et al., 2016)
Uncovering strengths
To establish a strong employer and employee relationship it is essential to recognize the
strengths of the employees and motivate them to use this strength to achieve business goals
(DeCenzo et al., 2016)

Motivation
Motivation helps to encourage an employee to improve his performance. The employer is needed
to motivate the employees in the way they want it will create positivity atmosphere among them
(Albrecht et al., 2015)
Being sensitive to the emotional state of employees
The employer of ALDI must be able to understand the emotional needs of its employees. Like
social security, social interaction. Employer should be more sensitive towards them and should
provide empathy if needed. to establish a pleasant relationship between employees and employer
of ALDI there should be reorganization of each other' resistance to stress (DeCenzo et al., 2016).
Knowing the management style
The management style of the employer plays a big role in establishing a good relationship with
the employees. Directive and supportive style improves job performance of the employees
(DeCenzo et al., 2016)
Methods for flexibility management
Job sharing
It is the process when two employees are performing the same job roles and share their work
with each other to reduce the workload. in the absence of one employee, another worker can
perform the same job. in ALDI if any employee is sick than management may align the same
task for another person (Zammit, 2017)
Flexible scheduling
when an employee is not able to complete his full-time duty due to any reason that the
organization should be able to make necessary changes in the working schedule for example if
an employee is not able to attend the office of ALDI in the morning. the management can
provide be any night shift.
Flexible work environment

There should be a flexible and healthy work environment in the organization so that any changes
in the working conditions of the employees can take place. it reduces workload and pressure
from the employees and also will result in good relationship development between employee and
employer (Schumacher et al., 2016)
Remote work
In case if a staff member of ALDI is not able to come office management can assign him remote
work so that he can stay at home and can perform his work properly

LO3
Analysis of internal and external factors that affect human resource decision making
SWOT analysis of ALDI
strengths weaknesses opportunities threats
low price for
qualitative products
lack of employee
satisfaction
take the preferences
of the customer in its
account
high competition
development of a
strong ecosystem by
convenient shopping
poor margin through
sales
expansion of the
supermarket chain
economic shortage
and problems
large customer base poor penetration in
the high-level income
group
partnership with more
suppliers
ineffective legislation
system
effective product mix
and cost saving
availability of the
many discount
supermarkets
development of
online business