Comprehensive Report on Aldi's HRM Strategies and Cultural Influences

This report provides a comprehensive analysis of Aldi's human resource management (HRM) strategies, exploring how the company creates value through effective practices. It examines the impact of regional and national cultures on HRM, contrasting the approaches needed for the German headquarters and its Indian operations. The report delves into Aldi's organizational model of employment, the differences between HRM and personnel management, and the significance of local culture in international HRM. It highlights how Aldi navigates employment laws across different countries and provides examples of good HR practices. The report discusses value creation through HRM, recruitment, training, career planning, and the importance of aligning HRM with cultural nuances to foster employee satisfaction and operational efficiency, including the role of work-life balance and employee incentives.

INDIVIDUAL ASSESSMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
(A) Value creation with the use of HRM strategies.....................................................................1
(B) Impact of the regional and national culture on the HRM practices.......................................2
(C) Organization's model of employment....................................................................................3
(D) Difference between the HRM and Personnel management...................................................4
(E) Significance of the local culture on the HRM practices that needs to be undertaken in the
international organizations...........................................................................................................4
(F) Differences in the employment laws from the international HRM to the local business
systems.........................................................................................................................................5
(G) Corporate examples having good HR practices....................................................................6
(H) Recommendations.................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Aldi is one of the largest supermarket chains that is headquartered in Germany, a country
of the European Union. It was founded in the year 1946 and has now expanded its operations in
more than 20 countries round the world. It offers the healthy and hygienic food at low prices to
its customers and undertakes the process of value creation and competitive advantage in the
industry. The project shall be highlighting the HRM strategies and the practices that are followed
by the company and with the use of this strategic human resource management technique the
company is able to derive the value for its brand. Apart from that it shall also analyse the impact
of the culture and the national beliefs on the HRM practices. It shall further assess the
organizational model of employment that is followed by the company and the various
organizational levels creating value for the company's products. The report shall be reflecting the
difference between the concept of the human resource management and personnel management
and which among this is preferably followed by Aldi in India and how is it impacting the value
of the products and services. Further it shall also be elaborating on the significance of the local
culture and it thereby impact the practices of HRM which shall be undertaken by the company
cross border. Lastly it shall be addressing the various employment laws that are framed in
reference to the change in the local system as a consequence of the international HRM policies.
TASK
(A) Value creation with the use of HRM strategies
The human resource strategies that are formulated by the company is one of the major
determinants of the success of the supermarket chain. The management of the company has
realized the fact that its manpower is the crucial contributor to the success of the company, and
so they need to be efficiently managed such that their level of satisfaction can be boosted with
the operational efficiency of the company (Lopez-Cabrales and Valle-Cabrera, 2020).
One of the most prominent strategies is used within the recruitment and selection process
that is undertaken by the company. It carries an effective recruitment procedure where the most
talented and optimistic employees are chosen who stay self-motivated and thereby boost the
operational efficiency. Apart from that it is one of the leading training and developmental
packages and the activities which is responsible for increasing the morale and confidence in the
employees further contribution to the efficiency in the operations of the company.
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The career planning practices as conducted in Aldi is also one of the factors that has
contributed in the human resource growth and development in the organization (Malik and et.al.,
2019). Various progressions are undertaken internally within the premises of the company so that
the employees can learn from what they do and do not get bored of the repetitive work.
These several strategies that are incorporated in Aldi has been successfully managing its
employees by reducing the labour turnover and also keeping them motivated to perform better
for the company. All these efforts have been crucially contributing to the value creation for the
customers of the organization by offering them with the better quality products and services and
also at a cheaper cost which shall be affordable by all. It helps in generating worth for the money
spent by the customers, worth for the time spent by the employees and the worth for the
trustworthiness that is showed by the society towards the establishment.
Creating value for the customers is also a must as this shall be helpful for the company in
deriving the competitive advantage in the industry and building a strong brand reputation in the
market (Aust, Muller-Camen and Poutsma, 2018).
(B) Impact of the regional and national culture on the HRM practices
Aldi is a multi-national company which operates in the varied countries based on the
geographical locations and other characteristic traits. It can be assessed that the employee base of
the different countries have different regional and the national culture that affects the human
resource management practices that are undertaken in the business.
The regional culture of Germany where Aldi is headquartered and that of India where it
has expanded its operations are very distinct in nature. So the company has to apply varied HRM
practices that are suitable for the set of employees that are present in both the countries. Major
distinction is that in Germany people are fond of keeping their personal and their professional
lives separate and don't like to mix them in any possible circumstance. In order to deal with this
the HR department has to undertake the various practices that shall endure a proper maintenance
of the work life balance (Horwitz, 2017). On the contrary it can be observed that no such concept
is present in India and here comfortably people tend to mix both their personal and their
professional lives, so no such practices are required and with good incentives the employees
shall be ready to hamper their personal lives.
The German culture is with the mentality that they will first plan and in accordance with
that they will execute the various activities. On the other hand Indians believe that it is not
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necessary to plan rather they think that along the process the improvisations can be done as the
operations of the business proceed. So in accordance with that the German are to be provided
with proper guidance, blue print and training and developmental programmes in advance so that
they can start with their work.
Also the work culture of Germany suggests that they work for regular hours with the
optimum capabilities and the capacity that they have whereas the Indians work with breaks and
continuous interval. Since, a German is working regularly for long duty hours in that case the HR
has to plan proper entertainment activities and mood refreshing tactics so that further the
operational efficiency of the business can be improved (Mehta and Mehta, 2017).
(C) Organization's model of employment
The various organizational levers constitute the organizational model of employment that
is applied in the business model of Aldi and competitive advantage is developed based on the
employed staff of the company. The aim and the objectives of the company helps it formulates
the strategic directions that needs to be followed by the officials of the company. Apart from that
the effective lines of communication that are established for the business are also relevant to the
organizational growth and success (Abidi and et.al., 2017). This is an important part of the
employment model as they define the human relationships that are there in the company between
the staff that are there in Aldi.
The organizational culture of the company is one of the essential requirement which shall
be determining the employee satisfaction level and the morale of the company. The
organizational culture must be suitable for the employees to work in respect of the working
conditions, job security, guarantee and the safety measures that are undertaken in the business.
The better the organizational culture the higher the performance of the employee and better shall
be the overall productivity of the organization.
Apart from that employee developmental and growth policies that are designed by the
employees in the HR department are also the crucial factor that shall be establishing employee
loyalty and trustworthiness with the organization (Ayentimi, Burgess and Brown, 2018). Their
all round development and based on that the appraisal programmes and the incentives are also
the important to govern the relations with the company.
All these factors and the formulated strategies that are associated with it shall be useful in
defining the organization's model of employment.
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(D) Difference between the HRM and Personnel management
As per the Storey's 27 points of differences it can be assessed that human resource
management and the personnel management are based on the same idea but do have different
conceptual background. It can be assessed that the concept of personnel management is
focussing upon the proper rules and regulations that define their code of conduct and the roles
and responsibilities that are to be performed by them. Whereas on the contrary human resource
management has no specific boundaries or limitations that are to be met by the company but it
goes beyond that.
The conceptual background of personnel management discloses that it is restrictive in
nature and human resource management policy focusses on providing freedom and flexibility to
the staff of the company in terms of the operations, procedures and the rules that are to be
followed. Further it can be ascertained that in personnel management the staff has controlled
access to other opportunities where the division of labour is undertaken in a structured manner
and the capabilities are also decided prior hand according to which the recruitment and selection
of the employees is conducted.
It can be understood that the better learning and growth opportunities are provided under
the human resource management where 'can do' approach is used for satisfying the mission,
vision and objectives of the company. They have initiative taking capacity on the contrary it can
be realized that in case of personnel management the attributes are fixed in nature and not much
scope is provided in regard to growth and the learning opportunities.
In context of Aldi that has expanded in India, it can be seen that they are following the
human resource management policy. It hires the employees having the optimistic 'can do'
approach and are ready to face all the challenges that are arising on their way. These employees
are talented in multiple ways and also are keen to learn new undertakings so that their overall
personality enhances.
(E) Significance of the local culture on the HRM practices that needs to be undertaken in the
international organizations
The local culture is diverse across the international borders, different culture have
different culture, tradition and the beliefs of the people. In accordance with this culture the
human resource management shall be governed for any country. Since, Aldi is operating in the
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multiple countries round the world where there are different cultural practices and because of this
reason the company shall have to design the HRM practices and strategies accordingly.
When the management of the company is planning to recruit the employees or are firing
them from the company, they have to consider the cultural background from which these
employees are coming to the company. All their work in the organization shall be decided in
accordance with that and also the various policies that are formulated for their management will
be affected by the mentality and the thought process that is followed by the company.
The local culture of India is quite different from that of the native place of Aldi which is
Germany as the people and their choices differ in both the place. The people over there are
regular and dedicated to the work and also are particular about the personal life and its time. So
to meet these expectations of the employees the HR department of the organization has to frame
the work life balance accordingly, and they also have to recruit the employees so that the existing
employees does not feel excess pressure of the workload that is existing in the company. The
local perspective in India is that if benefits are provided to the employees then they shall be
ready to work additionally to boost the efficiency of the company. For them the performance
appraisal is more important human management practice.
In Germany the unity and harmony can easily be fostered in the company because there is
not much diversity in the culture and tradition that are followed by the company. On the other
hand if compared with India it can be ascertained that there is huge diversity and this vast diverse
cultures the human resource of the company is to be effectively managed. This can take place by
efficient policies like removing the linguistic barriers, effective lines of communication and
generating awareness about the diverse attitudes and beliefs of the people. So it can be
ascertained that the local culture plays an important role in the internationalization of the
company.
(F) Differences in the employment laws from the international HRM to the local business
systems
The employment laws also differ for an organization when they conduct their operations
in the variety of countries following the different legal systems. Certainly for Aldi that is
headquartered in Germany the employment laws are different and so the HRM practices shall be
governed in accordance with that (Employment law, 2021). Apart from that when it expanded the
business and started running the business in India the employment laws that are followed here
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are completely different. This poses the challenge on the management in determining the various
HR strategies and practices that are to be applied in the business.
There are some set of employment laws that govern the functioning of business in India
like if a worker shall be working post 9 hours a day or 48 hours a week, then he/ she shall be
paid with overtime. The female working hours are from 6am to 7pm. Apart from that there are
several rights and responsibilities that are provided to the employees in any organization and if
they are violated in that case they shall be punished or fined by the government. The employees
have right to safe and secure work environment, child labour is not permitted and job security is
to be provided to all the employees in the country.
As per these norms the company and its management has to formulate the policies and
practices that are to be followed by the company.
On the contrary it can be analysed that in Germany the company can have only five
working days in a week and eight hours per day. If they are providing overtime to the employees
in that case also the maximum limit is 10 hours a day. There are several rights that are provided
to the employees which of are violated shall lead to repercussions for the company.
(G) Corporate examples having good HR practices
There are some companies that have executed the best HR practices and for this reason
are able to successfully generate the operational performance in the company. Corporate
businesses like Google, Adobe, Accenture, Facebook and Delta Airlines are having the best
policies in respect of the management of the human resources in the organization and motivate
them to give their best performance for the achievement of the organizational objectives of the
business.
The performance index that has been derived for Adobe Pdf is because of the HR
practices that are undertaken by the business. It has one of the best hiring practices which
ensures that the best employees in the business are employed and can contribute to the market
success of the company (Delery and Roumpi, 2017). It conducts several rounds of the interview
and the selection process which is evaluated by the diverse panel of the company.
Another company that has proven in the field of managing the human resources of the
company is Google who has outperformed. They have named their department as the 'People
Operations' which is been functioning for the betterment and the development of the people that
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are employed in the company. They have been innovative in their approach towards the
management whereby they first collect the relevant information or data and then analyse to
design effective policies that are able to satisfy the employees and boosts their morale to perform
for the business.
The performance and the management of the people in Accenture is with reference to
their passion and the interests. This makes them filled with the enthusiasm, and they are able to
give the better performance. The talent management is conducted on the basis of the skills that
are possessed by the employees in the business and their respective capabilities.
These corporate examples show the innovative approach that is used by the different
companies for managing the human resource in the company and capitalizing by bringing the
best efficiency out of them.
(H) Recommendations
There can be some major recommendations that Aldi can follow in respect of the HR
practices that are undertaken by the company:-
 One of the most significant HR practice is to regularly undertake the performance
appraisal of the employees in respect of the operations that are undertaken by them. The
bonuses and the incentives that are provided by the company to its employees must also
be as per the performance or their contribution in the fulfilment of the objectives of the
company. Apart from that the recognition, appreciation in case of positive aspects and the
punishment in case of the negative aspects in also the HR practice that shall help in the
improvement of the operational efficiency in the company (Kim and et.al., 2019).
 The talent management is another HR practice that must be followed by the company so
that they can be able to manage the operations of the company effectively. The various
training and developmental programmes, supervision and guidance that needs to be
provided to the employees so that the efficient skills can be developed.
 Proper techniques of the recruitment and the selection of the employees are to be
conducted by the organization so that they can recruit the best possible employees for the
company which can contribute to the operational efficiency of the business.
 Providing proper guidance and support to the employees shall be beneficial for the
employees as well as the company. They also can assist the employees and provide them
with the guarantee and security that is required in the company.
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CONCLUSION
It can be summarized from the above project that it is very important to provide proper
HRM practices and strategies that can help the workforce of the company and boosts their
morale so that they can perform better in the future. Managing the human resource effectively
helps in avoiding the extra costs related to the labour turnover, wastages and wear and tear of the
resources of the company. Also, if people management is done effectively in the organization
they shall get motivated to perform better and help in the achievement of the organizational
objectives.
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REFERENCES
Books and Journals
Lopez-Cabrales, A. and Valle-Cabrera, R., 2020. Sustainable HRM strategies and employment
relationships as drivers of the triple bottom line. Human resource management
review. 30(3). p.100689.
Malik, A. and et.al., 2019. Implementing global-local strategies in a post-GFC era: Creating an
ambidextrous context through strategic choice and HRM. Journal of Business
Research. 103. pp.557-569.
Aust, I., Muller-Camen, M. and Poutsma, E., 2018. Sustainable HRM: A comparative and
international perspective. In Handbook of Research on Comparative Human Resource
Management. Edward Elgar Publishing.
Horwitz, F., 2017. International HRM in South African multinational companies. Journal of
International Management. 23(2). pp.208-222.
Mehta, P. A. L. L. A. V. I. and Mehta, K. H. U. S. H. B. U., 2017. Green HRM practices and
organizational culture. International Journal of Human Resources Management. 6(1).
pp.1-6.
Abidi, O. and et.al., 2017. Diversity management and its impact on HRM Practices: Evidence
from Kuwaiti companies. Eurasian Journal of Business and Economics. 10(20). pp.71-
88.
Ayentimi, D. T., Burgess, J. and Brown, K., 2018. HRM development in post-colonial societies:
The challenges of advancing HRM practices in Ghana. International Journal of Cross
Cultural Management. 18(2). pp.125-147.
Liu, Y. and Meyer, K. E., 2020. Boundary spanners, HRM practices, and reverse knowledge
transfer: The case of Chinese cross-border acquisitions. Journal of World
Business. 55(2). p.100958.
Farndale, E. and et.al., 2017. A vision of international HRM research. The International Journal
of Human Resource Management. 28(12). pp.1625-1639.
Delery, J. E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal. 27(1). pp.1-21.
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Kim, Y. J. And et.al., 2019. The effect of green human resource management on hotel
employees’ eco-friendly behavior and environmental performance. International
Journal of Hospitality Management. 76. pp.83-93.
Online
Employment law. 2021. [Online] Available through:
<https://iclg.com/practice-areas/employment-and-labour-laws-and-regulations/india>
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