Impact of HRM on ALDI's Profitability and Productivity

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HUMAN RESOURCES MANAGEMENT
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Table of Contents
INTRODUCTION........................................................................................................................3
OVERVIEW OF COMPANY.........................................................................................................4
TASK 1 (LO1-LO3)..................................................................................................................... 5
PURPOSE AND FUNCTIONS OF HRM WITH ITS ROLES AND RESPONSIBILITIES.....................5
STRENGTHS AND WEAKNESSES OF SELECTION AND RECRUITMENT APPROACHES.............7
EVALUATION OF STRENGTHS AND WEAKNESSES.................................................................8
BENEFITS OF HRM PRACTICES FOR EMPLOYER AND EMPLOYEE AND ITS EFFECTIVENESS
FOR RAISING PROFIT AND PRODUCTIVITY............................................................................9
EFFECTIVENESS OF EMPLOYEE ENGAGEMENT AND RELATION IN ORDER TO ADOPT
FLEXIBLE WORKING PRACTICES IN ORGANIZATION AND THEIR IMPACT ON DECISION
MAKING..............................................................................................................................11
INTERNAL AND EXTERNAL FACTORS AFFECTING DECISION-MAKING OF HRM INCLUDING
EMPLOYMENT LEGISLATION.............................................................................................. 13
TASK 2 (LO4)........................................................................................................................... 15
JOB ADVERTISEMENT..................................................................................................... 15
JOB DESCRIPTION........................................................................................................... 16
CURRICULUM VITAE....................................................................................................... 17
PREPARATORY NOTES.................................................................................................... 18
JOB OFFER LETTER..........................................................................................................19
RATIONALE......................................................................................................................... 20
CONCLUSION.......................................................................................................................... 21
REFERENCES........................................................................................................................... 22
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INTRODUCTION
This assignment will carry 2 tasks which will deep insight upon human resource
management by focusing upon its functions, purposes and key responsibilities and roles.
This assignment will evaluate key element's effectiveness of HRM in ALDI for achieving the
business goals. This will show the process of recruitment and selection in approach to
workforce planning, training and development, performance-based reward system and will
also evaluate its strengths and weaknesses.
This assignment will base on the company ALDI which is a retail industry deals in household,
beverages, food, and sanitary products in Germany. This assignment will outline the
importance of human resource management in the organization. This will highlight the
approaches of employment effectiveness and employee’s relation by exploring practices of
HRM and the effect of employment legislation on the decision-making of human resource of
the organization. At last, this will also add the practices of HRM applications and rationale in
the context of working.
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OVERVIEW OF COMPANY
The company ALDI is a chain of discounted supermarkets with more than 10000 stores in 20
states all over the world. The company have 2 own brands of a German family which were
founded on 10th July 1946 by Theo Albrecht and Karl and split in the year 1960 by naming
Aldi Nord and Aldi Süd in 1962 and the company Aldi Nord is headquartered in Essen,
Germany and Aldi Süd in Mülheim, Germany. The company ALDI which is a retail industry
deal in household, beverages, food, and sanitary products in Germany. Aldi Nord has 2500
stores in eastern, northern, and western Germany and Aldi Süd has 1600 stores in southern
and western Germany.
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TASK 1 (LO1-LO3)
PURPOSE AND FUNCTIONS OF HRM WITH ITS ROLES AND
RESPONSIBILITIES
According to Banfield (2018), Human resource management is an approach to manage the
culture of work and employees for enabling the workforce to contribute to achieving the
objectives effectively and efficiently. HRM plays an important role in ALDI as its purpose is to
hire the best employee for the betterment of the company in order to make more profit.
The functions of HRM play an important role in both the organization and an individual
(Bratton and Gold, 2017).
PURPOSE AND FUNCTIONS OF HRM
 Recruitment: this is the primary function of HRM for hiring the best and effective
employee for the company ALDI. The HR manager role is to choose the best for the
company for increasing its productivity and sales in order to increase the profit.
 Training and development: the aim of the HR department is to train the newly hired
candidates and help them in adjusting in the working culture and environment in
order to work properly and effectively for obtaining desired results (Cohen, 2017).
 Professional development: this function played by HR of ALDI in order to develop
the skills of the employees personally and professionally both for his/her benefit
which results in a positive response to the wealthy business environment.
 Performance appraisal: after providing training to all the existing and newly
appointed employees at ALDI, this is the duty of HR manager to choose the best
performer and rewarding him/her in order to motivate them and inspire others.
 Advisory functions: the HR manager advises to the top level management in context
to formulate policies and procedures. This also involves maintaining the relations of
employees and increases the morale of the employees for attaining goals of ALDI.
 Managerial functions: the purpose of the HR manager is to plan for the policies,
objectives and procedures. To design and develop the structure of the organization.
To direct and inspire the employees and controlling the planned activities of ALDI.
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Functions of HRM in achieving business objectives
The above functions of HRM help the company ALDI in achieving the objective of the
business. The objectives of the business are to satisfy the customers' needs by increasing
their base and productivity. It is important to hire a talented workforce for achieving the
objective and HR function of training and development help the employees in performing
well (Bratton and Gold, 2017).
Roles and responsibilities of HRM:
 To develop the policies and strategies for the business (Bratton and Gold, 2017)
 To develop the plans and procedures for the growth of the business
 To guide and inspire the employees to work effectively for increasing productivity
(Bratton and Gold, 2017)
 To train and develop the capabilities of employees for achieving objectives of ALDI
Scope of HRM at ALDI: it involves planning process, designing job, offers placement,
motivates employees, provides safety and health benefit, maintains industrial relations etc.
(Bratton and Gold, 2017).
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STRENGTHS AND WEAKNESSES OF SELECTION AND RECRUITMENT
APPROACHES
Selection process: it is the process of shortlisting and selecting applicants for the vacant job
profile at ALDI by emphasizing on applicant’s education and experiences. This process is
different from the department to department and company to company (Holm, 2018).
Recruitment process: it is the process of aiming to search for the best candidate for the
right place at the right time. This process helps in bringing new and innovative talent in the
company for increasing productivity and profitability (Holm, 2018). Types of recruitments:
 Internal recruitment: this includes hiring from the existing workforce of ALDI by
giving them a priority and opportunity to prove themselves (DeVaro, 2016).
Strengths Weaknesses
 This is a convenient process for the
HR of the company
 It supports employee and employer
relation (DeVaro, 2016)
 It inspires employees to work hard
 This process limits other option to
choose (DeVaro, 2016)
 It increases competition and
decreases work efficiency
 It promotes idleness
For example, it allows ALDI to choose a
talented existing employee.
For example, it impacts negatively on
employee and manager relation at ALDI.
 External recruitment: this includes hiring form the outside sources in order to gather
new and innovative talent the company for increasing productivity (DeVaro, 2016).
Strengths Weaknesses
 This helps in qualitative hiring
 This support to new knowledge and
innovation
 Availability of many candidates in
pool selection
 It reduces the morale of existing staff
 It is time and high cost consuming
process
 It involves high risk in fitting with the
role of job
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For example, it helps in increasing profit and
productivity of ALDI.
For example, it results in demotivation and
less productivity at ALDI.
EVALUATION OF STRENGTHS AND WEAKNESSES
The procedure of selection and recruitment at ALDI involves two main approaches for
recruitment which includes external and internal recruitment. The HR manager selects and
hires the operative and fit applicant for the available job profile. After evaluating both
internal and external recruitment, the best approach for recruitment is to hire from the
internal working force as they are highly motivated and trained employees and know how to
increase the productivity of the company (DeVaro, 2016).
The approaches like workforce planning help in hiring the best employee and training and
development help in inspiring and encouraging employees to work. The approach of
performance-based reward motivates the employees for doing best for the resulting best.
The internal recruitment is best of ALDI in order to maintain the flexibility at the workplace
in between the employees and employer for reaching towards the desired objectives of the
company (DeVaro, 2016).
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BENEFITS OF HRM PRACTICES FOR EMPLOYER AND EMPLOYEE AND ITS
EFFECTIVENESS FOR RAISING PROFIT AND PRODUCTIVITY
Effectiveness of approaches to HRM practices:
Workforce planning
This approach has been adopted by the company ALDI which helps in making decisions for
workforce planning. This is used to take the decisions of the company through the HR
managers so as to recruit the number of employees etc. This is an important approach of
making decisions for the company so as to maintain the superiority of product and increase
the profit and productivity (Squires, et al., 2017).
Recruitment and selection
The HR manager of ALDI selects and recruits the best employee for the company in order to
increase its productivity and sales to increase the profit. This tactic helps the company in
collecting the greatest and innovative talent in the workforce. Selecting best and effective
employees for the company can help in increasing the productivity which results in
increasing profit (Holm and Haahr, 2018).
Training and development
This approach is used by the HR department for training the newly hired candidates and
helping them in adjusting in the working culture and environment in order to work properly
and effectively for obtaining desired results and resulting in enhancing productivity and
increasing profit (Cohen, 2017).
Performance management
This approach is used by the manager of ALDI for motivating and inspiring the employees for
giving their best performance for enhancing productivity and increasing profit. This is the
role of the manager to manage the performance of the employees within the organization
(Veth et al., 2017).
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Reward system
This is the role of HR at ALDI to give rewards to the employees on their performance which
results in proper working and this encourages the employees to maintain the effective
working for gaining the rewards and other benefits in the organization. This results in
increasing the productivity and profit of the company (Veth et al., 2017).
BENEFITS OF HRM PRACTICES
The practices of human resource management provide many benefits to the employer and
employees, which are adopted by ALDI in order to maintain the relationship between
employer and employee and to maximize the profit and productivity of the company (Veth
et al., 2017).
The benefit to the employee:
The approaches of HRM provide benefits to the employees by the employer by providing
them with the effective working environment, easy scheduling of working for the
employees, the solution to grievances, extra pay and bonus (Veth et al., 2017). For
completing the targets for production, employers provide the benefit of safety and health
and accommodation to the employees and flexible working environment in order to make
them comfortable which leads to generating profit and productivity (Countouris, 2016).
The benefit to the employer:
The approaches of human resources practices provide benefit to the employer when they
do not like the working environment and unhappy with the employees, slackness etc. and
the HRM practices benefited to the employer as they have problem-solving authority at the
time of any dispute and provide effective salaries to employees, fewer hours of working and
flexible working environment which encourages them to work well and this helps the
company in increasing profit, good of the company as well as growth in the market share
(Countouris, 2016).
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EFFECTIVENESS OF EMPLOYEE ENGAGEMENT AND RELATION IN ORDER TO
ADOPT FLEXIBLE WORKING PRACTICES IN ORGANIZATION AND THEIR
IMPACT ON DECISION MAKING
Employees are the key persons of the company ALDI as they share their relationship with
the management and other employees in order to discuss the effective and essential
decisions which are required to take in the organization (Freedland et al., 2016). The
company managers have to keep the environment of the working area interactive and
motivate the employees so that it gets easy to share the profit into the monetary term
between the employees by their equal engagement. So for the company ALDI it is important
to coordinate with the employees in achieving the organizational objectives (Freedland et
al., 2016).
Employees’ engagement: The employee’s contribution is very essential as it is important for
the company as well as for the employees to get engaged in the activities and practices of
the organization for increasing the output and profit of the company and maintain the
relationship with the management and others (Mone and London, 2018). The engagement
of employees helps them in increasing belongingness towards their work for achieving the
desired objective of the business. Their engagement directly effects on the decision-making
of the company (Mone and London, 2018).
Employees’ relation: It is important to maintain the relationship in between employer and
employee for working together effectively and by proper communicating with each other by
sharing problems and issues in order to maintain an effective relationship which results in
enhancement of profit and productivity (Countouris, 2016). The employers provide the
benefit of safety and health and accommodation to the employees and flexible working
environment in order to make them comfortable which leads in generating profit and
productivity and decision-making for solving the conflicts occurs in between the employees
(Countouris, 2016).
HRM practices include:
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 It is needed to have a proper flow of communication for sharing information
between employer and employee and making an effective plan for attaining the
objective of ALDI (Freedland et al., 2016)
 It is compulsory that employees must pay equal and effective remunerations
 It is needed for the employer to provide a flexible working environment to
employees (Freedland et al., 2016)
 Provide training and authority for gaining competitive advantage
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