Human Resource Management at ALDI: Wembley Branch Case Study

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Organizations

Contents
Task 1...............................................................................................................................................2
1. Overview of ALDI...................................................................................................................2
2. Human Resource Function......................................................................................................2
3. Various Approaches of HRM..................................................................................................3
4. Effectiveness of HRM.............................................................................................................6
5. Factors affecting HRM............................................................................................................7
6. HRM Practices which affects the decision making process..................................................10
Task 2.............................................................................................................................................11
Application of HRM Practices.......................................................................................................11
1. Job Specification:...................................................................................................................11
2. CV for the Post......................................................................................................................12
3. Documentation of preparatory notes for interviews..............................................................13
4. Job Offer for the selected Candidate.....................................................................................14
5. Rationale for the Application of Specific HRM....................................................................15
Conclusion.....................................................................................................................................16
Reference.......................................................................................................................................16

Introduction
The approach for managing the Human resource of an organization is called Human Resource
Management (HRM). The practice of HRM helps in the process of recruitment, training,
development and selection of new as well as existing employees. For a successful business, it is
important to manage the employees properly with good skills and talent. In this assignment, the
different aspects of HRM Practice has been discovered and analysed with the help of various
examples and theories. It includes- roles and responsibilities, benefits to employer as well as
employee, employee relation and engagement, etc. The last part introduces with the application
of HRM Process in the organization and the justification for using the practice of HRM. (Noe,
2017)

Task 1
1. Overview of ALDI
ALDI is a brand of supermarket chains which is owned by two German Families. It has more
than 10000 stores in around 20 countries. It was established by Karl Albrecht and Theo Albrecht
in 1946. In 1960, the single brand separates into two and named as Aldi Sud and Aldi Nord. Its
main headquarter is situated in Mulheim and Essen, Germany. Worldwide, Aldi Nord have its
branch in France, Denmark, Poland, Portugal, the Benelux countries and Spain, whereas Aldi
Sud have branches in Hungary, Great Britain, Italy, China, Slovenia, Austria, Australia, Ireland
and Switzerland (Brinkey et al., 2019). The Aldi Nord and Aldi Sud both operate in US market
with more than 1600 stores. In their store they provide customers with- food, grocery, beverages,
household essentials etc. It also has subsidiaries and joint ventures in providing Alcohol
products, Network Operating and Petrol.

2. Human Resource Function
Human resource includes the people who work for any organization. They are the precious asset
of the company. The department of Human Resource of ALDI maintains the employees. The
main purpose of Human Resource Function is to satisfy the need of employees in the
organization for the Wembley branch of ALDI. The roles and responsibilities of Function of
Human Resource are as follows:
1) The primary responsibility of the Human Resource Department is identifying and fulfils
the requirements of the employee in a business. For this, they participate in the process of
recruitment and selection of the candidate.
2) This function handles the procedure of training and development of the employees within
an organization. It establishes a training program for the new employees and
development programs for the existing employees. (Noe et al., 2017)
3) The Human Resource Function maintains the relationship with and among the employees
and the organization with the help of communication process.
4) They decide and introduce the rules and regulations for maintaining high performance
and satisfaction level among the employees of the organization.
5) It recognizes the reward and pay according the activities performed by the employee.
6) The Human Resource Department is responsible for the appraisal of the employees by
analysing the performance of the employees.
The Human Resource Management can provide the skill and talent to the organization and
help in achieving the goals. This function helps ALDI to get qualified employees that are needed
by it to achieve the objective. It provides the right environment to the employee to develop and
use their skills and talent in completing the tasks. The Human Resource Department assist the
employees to improve their performance level and increase the progress of the organization with
the help of various performance based methods like feedback, job evaluation etc. they maintain
the relationship of employer and employee in the organization to work with harmony. With the
help of different programs of development and training, the HRM Department enhances the
quality of the skill and talent of the employees which in turn is helpful in the achievement of the
organizational goal. (Stewart et al., 2019)

3. Various Approaches of HRM
Workforce Planning
It is the result of work performed together of HRM and Finance. Workforce Planning is defined
as to identify and analyse the existing and future needs of employees in different fields of the
organization and evaluate the best method of recruitment. It is a systematic method which help to
understand the behaviour of the employees which includes reviewing the pattern of promotion,
turnover and checking the process of recruitment. It may be long, medium or short term. The
steps involved are- Scanning the business environment, evaluating the present and future needs
of people in the organization and the qualification required by these employees, identify any
gaps and review the whole process. (De Bruecker et al., 2015)
Source 1 (De Bruecker et al., 2015)

Recruitment and Selection
Recruitment and Selection is an activity of HRM through which needs of human resource is
fulfilled in an organization. There are several aspects which affect this process like the laws and
regulation, decision making, the hierarchy of organization, organization type, and the criteria for
selection. The steps that need to be followed in this process starts with evaluating the present and
future needs of the employees in the organization, then these vacancies are analysed which
means requirement of the job is calculated, after the analysis candidates are attracted to join the
ALDI branch Wembley of the organization which is followed by screening, interviews and
process of selection, then the employees selected are trained and induction takes place and the
evaluation of performance of the employees goes on. (Dany and Torchy, 2017)
Source 2 (Dany and Torchy, 2017)

The recruitment process for the Wembley branch of ALDI can be carried out by the following
ways:
Strengths and Weaknesses:
The process of recruitment and selection in ALDI may be internal or external and every source
has its own strength and weakness within them which makes them different. Quick decision
making is one of the biggest strengths of internal source. With the help of direct appointment
with the internal source, the management take quick decision which saves time as well as cost. It
also increases the level of loyalty among the employees as they will be informed of the
promotional techniques for recruitment. The external recruitment provides new blood to the
organization which will have new ideas and will come with fresh outlook towards working in the
organization. (Russell and Brannan, 2016)
The recruitment and selection through the external source is a lengthy process which takes lots of
time and strength of the management in selecting from wide range of list. It also increase the cost
to the organization due to heavy advertisement and interviews and sometime it may not be very
effective as there is probability that the selected candidate is not best for the organization. The
internal recruitment bars the organization to bring new talent within the organization. And it may
also disappoint other employee who doesn’t get promotion and reduces their productivity level.
Training and Development
It is an important function of HRM in order to recruit the individual in the Wembley branch of
ALDI. Training is the process to enhance the skills, competency and knowledge of the employee
with the help of various programs, whereas development focuses on the long term goals and
refers to growth of the employees in reference to the education and personality to achieve long
term goals and objective. Both the process helps in better utilization of HR, increases the profits
of the organization, reduces the employee turnover and develops a positive attitude among the
employees and helps the employees in achieving better opportunities in their career and being
motivated to face the challenges in front of them. (Kadiresan et al., 2015)
Performance Management and Reward System

Performance management refers to the method of identification, measurement and development
of employee’s performance in the organization. It helps the employee to evaluate their
performance which helps them to improve their skills and knowledge. The reward has a very
important part in the management of performance as it supports in the motivation of employees
towards the working for the organization. Reward may be monetary or non-monetary, for
example, salary, bonus, promotion, status etc. (Shields et al., 2015)

4. Effectiveness of HRM
Benefit HRM to employees and employer
HRM has many responsibilities in an organization as they have to protect interest of both the
employees and the organization. They benefit both of them and these are as follows.
Employees
 They solve the conflicts or disputes arise between the employer and employees or among
the employees (Cascio, 2015)
 It facilitates the training and development of the employee which enhances their skills
and knowledge.
 The HRM maintains the relationship with the employees and act as information resource
to them.
Employers
 It helps in improving the employee turnover in the organization by recruitment of people
with right qualification.
 The employer need not to stress out to maintain connection with the employees as the
HRM does it for them. (Bratton and Gold, 2017)
 They manage the performance of the employees to achieve the organizational goals.
Effectiveness of HRM practices in raising the profit and productivity of an organization
The HRM Practices of ALDI is connected with the output and profit of the organization. The
various practices of HRM have different approach to the effectiveness of performance of the
organization. The recruitment and selection process helps in providing organization with best
employee with best skills and knowledge. Development and Training helps in increasing the
skills and ability of the employees of ALDI to attain the organizational goals and perform to
increase the output and performance level of the organization. They help in retaining the
employee, and maintaining the level of performance of the employees and held programs for the

talent management. It is directly connected with the growth of the organization. (Masa’deh et al.,
2016)
5. Factors affecting HRM
There are different factors which affect the process of HRM of an organization. It may be
internal or external. These are as defined as follows:
Internal Factors:
 Organizational Structure is one of the factors which affect the HRM internally. HRM
needs to evaluate the requirement of the employees in the organization, for they need to
take the structure of ALDI in the focus which highly influences the decision making in
HRM process.
 Budget affects the HRM as it is on the basis of the budget HRM departments appoints
and promotes the employees in ALDI. The pay and other rewards of an employee are
directly connected with the budget of the organization. (Brewster et al., 2018)
 Skill Level of employees also affects the process of HRM as it defines the level of
programs related to training and development of employees.
 Policies of the organization also affect the HRM internally as the decisions taken by the
Human Resource Department should be in balance with the policies of the organization
which affects it as whole.
External Factors:
 Advancement of Technology affects the HRM as it requires procuring more skilled and
knowledgeable in the field of technology. And it is the duty of the HRM to fulfil the
human needs of the organization. (Stone et al., 2015)
 Economic Factor which encourages the process of HRM includes the suppliers,
competitors, customers, globalization and advertisement. These affect the finances of the
ALDI which also affects every department of the organization including HRM.
 Workforce Demographic means the sector of the employees which belongs to different
age, gender, etc. Therefore, the HRM department has to arrange for packages according

to these divisions to attract different candidates and have to maintain a working
environment which is suitable for all.
 Legal factors include various laws and regulations which affects the level of
employment in a country. In UK there are various laws which affects the employment,
data protection, discrimination, equality, health and safety, maternity, work and salary,
pension, recruitment etc. the HRM has to follow all the laws which recruitment, selection
and training and development of employee within an organization. It decides the relation
of employee-employer relationship within ALDI.
Employee Relation Management
Employees are the most important asset of ALDI as they are likely to be recruited for the branch
Wembley. The relation of employee and employer should be healthy in order to maintain a
healthy environment in the organization. They have to work in coordination in order to achieve
the common objective of the organization. Employee Relationship Management means a process
used by the organization to manage different employees and the relation with them. Human
Resource Department helps the organization in this with the help of these pillars:
Communication is the key to any relation. For any organization it is required to communicate
with the employees for any activity. The HRM department of ALDI should ensure that the
communication process is open in the organization and no employee hesitates in expressing their
view in front of the employers. (Albrecht et al., 2015)
Recognition helps the employees to feel their importance in regard to the organization. It helps in
maintain a good relationship with the employees and motivate them by increasing their morale.
Feedback assists in knowing the view of the staff in relation to the ALDI. By allowing them to
give their opinions about the work, employees and employers helps them in increasing the
motivation and the organization comes to know of the real working within it.
Investing in the employees who means showing the employees that the organization and the
employers care for them is the best way to maintain a healthy relationship with them. When a
person knows that you care for them, they will be self-motivated and helps in accomplishing the
objectives of the organization (Waddock and Bodwell, 2017)