Analysis of Human Resource Management at Aldi Company Report

This report provides a comprehensive analysis of the human resource management (HRM) practices at Aldi Company. It begins by defining HRM and then explores the strategic choices made by Aldi to create value, including talent management, recruitment, and employee development. The report then examines the impact of regional and national culture, particularly in Germany, on Aldi's HRM practices and how these practices influence employee satisfaction and turnover. It details the organizational levers used by the company, such as the causal model of HRM, to achieve strategic direction and foster a positive work environment. The report also outlines Aldi's personal management policies, including contract policies, behavioral references, and conflict resolution strategies, as well as the company's approach to hiring in transnational and international subsidiaries. Furthermore, it highlights the differences in employment law and provides suggestions for improving organizational performance. Finally, the report concludes with a summary of key findings and recommendations for Aldi's continued success in HRM.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION.................................................................................................................................3
Task.......................................................................................................................................................3
Values created by firm using HR strategies.......................................................................................3
Impact of regional and national culture on HRM practices................................................................4
Organisation levers used by company...............................................................................................5
Personal management policy of company..........................................................................................6
HRM in transnational and international subsidiary............................................................................7
Differences in employment law.........................................................................................................8
Example of company following good HRM practices.......................................................................9
Suggestion for improving organisation performance.........................................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
Human resource management is defined as managing the human resource related need
and requirements of business entity. This report is based on the case study of Aldi Company
in content to its human resource management practices. The organisation was established in
the year 1946 by the founders Karl and Theo Albrecit. Company owns its stores at
approximately 11235 locations at a global level including Africa and Asia. Headquarter of
company is located in Germany. This report will discuss the human resource management
practices of business entity. Henceforth, report will emphasis over the process to create
values with support of strategic choices under human resource management. Impacts create
by regional and national culture over HRM practices in other country will also discuss in this
project. Appropriate organisation model will discuss related to employment and state the
organisational lever used by firm will discuss in this report. Furthermore, project will do a
critical level of analysis in respect to Storey’s 27 points difference between HRM and
Personal Management as a benchmark to evaluate HRM practices of company in Asia and
Africa retail market. Various employment laws will also discuss in this project.
Task
Values created by firm using HR strategies
Human resource department at the Aldi Company follow practice of strategic
development in respect to its HRM. Under this department follow the professional evel of
practices in which Under the strategic human resource management Aldi Company follow the
practice comprises with developing through understanding of company’s objectives,
evaluation of HR capabilities, analysing current HR practices in context to company’s
objectives and many other approaches.
Developing through understanding of company’s objectives
Human resource department channelizes such policies suitable in context to the
business objectives of Aldi Company. It becomes necessary for the entity to assess the
objectives of the organisation before formulating any policy related to the management of
human resource at the organisation. Aldi Company utilises all concepts such as talent
management, internal, external recruitment and all other practices to achieve best strategic
growth of the employee part of the organisation.

Evaluation of HR capabilities
Evaluation is also done in respect to human resource capability of business entity.
Under this human resource department assess the overall potential and capability of the
organisation. Human resource team analysis about the capability organisation holds over a
continuous basis (Abdeldayem and Aldulaimi, 2020). This provides a right strategic direction
to business entity which allows the organisation to achieve best level of growth perspectives
under organisation.
Analysing current HR capacity
Analysis also done in respect to current human resource capacity hold by business
entity. This clarifies the human resource team about the internal capability of the business
entity. It becomes essential that organisation assess its capacity. Once the business entity
understand what are the potential it hold it provide a strategic overview in respect to all
different options available in front of the business entity.
Estimation of future requirements
While the human resource team at the Aldi Company design the strategic policy to
entertain business objective it needed to estimate the future expected need and demand of
business entity. It becomes necessary that organisation assess what are the expected need and
demand of the organisation in context to its human resource. Based on future goals human
resource team develop strategic policies and implement such practices.
The above mentioned practices are a part of strategic human resource management
practices implemented by the business entity. It becomes essential to achieve high
organisation goal through different strategic choices available in front of the organisation.
Impact of regional and national culture on HRM practices
Regional and national culture of country affect all practice used by the human
resource team. Regional and national culture is very positive of Aldi Company which further
guides the company to approach the volatile strategic choices that can motivate the overall
success and growth of business entity. The regional culture of Germany is very open and
gives huge respect to the human resources as they contribute in overall growth and
development of business entity. In Germany human resources get huge respect of
organisation as companies and management feel that without effort of employees associated

with the organisation it is impossible for the company to achieve overall growth and
development objectives. The domestic culture of Germany has further influenced the human
resource practices of the Aldi Company by guiding the company to channelizes different
practices like incentives, talent management, training and development and many other that
can support the employee to grow not only at an internal level of organisation but externally
as well (Carbery and Cross, 2018). Domestic culture always influence and impact over the
business practices implemented by company as any entity always try to follow the same
policies for all its organisational practices. Regional and national culture positively affect
over business operations of organisation that has further created a positive impact over Aldi
Company achieving customer satisfaction level. Regional and national culture always
remains a backbone of business entity it always influences every single operation practice
entertained by company. In Asia and Africa market company own a strong position
irrespective of level of competition due to the emerging market. Employee turnover is also
low of Aldi Company which further reflects about the high level of employee satisfaction in
business practices operate by the organisation.
The major impacts regional and national culture of Germany created in form of
employee satisfaction organization has addressed. Practices like incentives, talent
management, internal recruitment and much such created positive influence over the
domestic and internal growth addressed by company. Employee is the sole reason behind the
growth and development potential business entertain in respective market. This makes the
company more compitet to address all its different business objectives.
Organisation levers used by company
Human resource team at the Aldi Company follow the standard casual model of HRM
which comprises with overall strategy, HR strategy, HR practices, HR outcomes, improved
internal performance and improved financial performance. They are the possible flow of
activity under the human resource related model follow by the Aldi Company. This strategic
tool favoured the company to approach all different levers respected to the business
environment. Company could achieve best level of strategic direction that favoured the most
prominent talent management functions to the Aldi Company (Edwards, 2017). Matrix could
further resolve all kinds of issues employees of company are facing. Communication also
become strategic due to this practice that is further supported the overall growth and
development of business entity. This model also made the hiring more strategic in favour of
the business entity.

Today the organisation culture is progressive in nature of Aldi Company due to
application of the model. Relationship building has also strengthen with all different
stakeholders like employees, customers, investors and all other internal and external
stakeholders associated with the business entity. Colleague empowerment also supported by
the Aldi Company due to the implication of the model of strategic choice by the company.
Work empowerment is another prominent lever associated with the business entity that is
fulfilled due to the application of this model of strategic human resource development.
Employee well being has also achieved by the Aldi Company in the best way possible which
further contributed in the overall growth and development of the company in respective
market (Fesharaki and Sehhat, 2018). Casual model of human resource management could
favour the company to address all areas of lever with support of different human resource
management practice implemented by the business entity. Levers strategically define the
possibility of organisation to address growth possibilities under respective market.
Organisation lever are the different satisfactory areas company try to underpin as a part of
strategic development of practices and choices. Human resource model used by the Aldi
Company is diversified that cold favour the business entity to address all key demand and
requirements part of business entity as a strategic choice. Organisation has tried to achieve
bets strategic growth for itself as a business venture along with the employees and other
stakeholder’s part of organisation.
Personal management policy of company
Personal management practices followed at the Aldi Company is directly associated
with the human resource management at the organisation. Company follow the below
mentioned practices under the Asian and African market along with other business areas as a
part of personal management of the human resources.
Contract policy
Aldi Company follow the practice in which is form contracts with the work force.
This policy allows the organisation to ensure the work force the respective period of
employment mentioned in contract. Employee can work without being pressured of leaving
the job. This makes the employment of work force more secure at work place (Flynn,
Valentin and Meglich, 2021). Contract clearly mentions all policies company follow so that
employee faces no confusion in respect to term and conditions associated with the
employment opportunity of business entity.

Behaviour referent
Human resource team at the Aldi Company follow the practice of behaviour referent
under the Asian and African countries. Under this company try to frame policies, customs
based on the behaviour of the work place. Culture of the respective location also contribute
massively in this while forming policies of the respective location (Han and et.al., 2019).
Company provide holidays over all regional festivals of location that further contribute in the
employee satisfaction level at work place.
Conflict strategic aspects
Company also prioritises solving any conflict at the work place. In order to achieve
best level of employee satisfaction solving conflicts and issuers play dominating role. With
support of conflict solving practices company try to ensure the best level of organization
culture. This played a huge role for the Aldi Company to address growth under the Asian and
African market.
Initiates
Human resource team follow the various new initiatives to achieve best level of
growth possibilities in the Asian and African market. Different initiates like employee
grievance cell, outing of employees and many other initiates have been taken by the Aldi
Company (Khan, Rasli and Qureshi, 2017). All these practices contributed massively in the
overall growth and strategic development of the business entity.
Other
There are other approaches also that could support the overall strategic development
of the Aldi Company. Management role are also inclusive in Aldi Company. There are
different policies such as selecting; job categorisation and many other that match up with the
Storey’s 27 point of different between HRM and Personal Management (Kravariti and
Johnston, 2020). This becomes crucial in respect to the organisation to grow strategically
with support of work force. All these approaches could favour the best level of organisation
culture of Aldi Company that could offer massive growth opportunities for business venture.
HRM in transnational and international subsidiary
Hiring employees are the main role human resource department play in organisation.
When it comes to hire the work force Aldi Company always try to prioritise local or regional

talent to be promoted at its business location. Company follow the practice of both national
and international level of recruitment. In case of regional recruitments company appoint local
peoples at different designated position company hold. Local culture always influences the
Aldi Company in hiring and firing people. As company always try to keep it work force. In
many circumstances has been noticed where the organisation did not fire the employees who
are not capable enough just because of the local culture of Asia and Africa. Cultural
significance always crucial at any location as it provide a strategic direction to the
organisation when it comes to hire the best potential employees and fire the work potential
employees. Local influence always affect all kinds of strategic decision making company
undertake as a part of its policy (Lussier and Hendon, 2017). This practice has also supported
the company to grow at all its business location. This practice motivated the organisation to
keep the local people at all its branches that could provide a clear understanding of market.
Strategic growth is only possible if the company understand its market. This practice could
support the organization to keep its work force and transform them an asset for the business
venture through different practices like talent management, training and many others.
Differences in employment law
Legislations are associated with the national boundaries. Every country contains its
own laws and legislations based on the need and requirements of the individual territory.
Employment laws are also different in Asian countries and also in Africa. Changes are
usually witnessed in context to the employment law in respect of the provisions. Other than
that similarity can be seen in the employment legislations like equality law, anti
discrimination laws and all other legislations are almost similar in Germany and Africa or
Asia. Minimum wage payment act contain different amount of salaries in the legislations of
different countries (Pham, 2020). It can be stated that when any business entity expand at the
international level it required facing changes in legislation. Also the laws and regulations are
the requirements that in any case companies required to meet. In context to the employment
laws the major changes are related to the provisions and conditions in respect to such laws
and act. Implication related changes are the basic modification that is seen in different
countries. Aldi Company is operating its business operations at approximately 11235
locations for its business.
Every time company expand its business at any of the international location it needed
to face changes in the legislation. As company required employees and human resources at
any of the location it expands. In such a situation while appoint employees over different

designated roles in the organisation structure company required to cope up with the
employment laws and legislations. Majority of employment legislations are similar at any of
the international location Aldi Company operate its business function. Changes it witness is
in respect to the application of such legislations and provisions associated with such laws.
Imprisonment is also different in all such laws at all international locations in case of breach
of such laws. Changes needed to be addressed by the business in order to achieve a smooth
follow of operation at international location.
Example of company following good HRM practices
Human resource team at the Aldi Company follow different practices like talent
management in which company try to polish the human resources it holds. Talent
management practice allow the company to strategically address the human resource related
need and requirements of business entity. Company also follow the practice of training and
development. In this Aldi Company channelize precise training program that work over the
capability and potential of human resources associated with the organisation. Training
program work over the capacity and potential ability of the work force associated with the
company. It could also improve the employee satisfaction at the job (Shahreki, 2019). There
are other practices also human resource team of Aldi Company follow that demonstrated as
internal recruitment. This practice allows the company to motivate employees for perfuming
best efforts. Under this company promote employees at higher designated positions both at a
regional level and international locations. International transfers always attract and motivate
work force to put extra efforts for addressing the organisation goals and objectives.
Different human resource practices followed at the Aldi Company allow the business
entity to grow at domestic and international level. Company’s growth and development is the
indicator of the effectiveness of the practices follow by business entity (Zaim and et.al.,
2018). It becomes important for any business entity to follow right practices related to
management of its human resources as the practices undertaken by company create a direct
impact over the work efficiencies of such employees. All different practices and policies Aldi
Company utilise created positive impacts over employee sustainability as well.
Suggestion for improving organisation performance
Aldi Company is one of the major brands associated with the retail sector operating
business operations at the international level. Company hold a precise management for its
human resources. The practices are already effective and efficient enough that favoured the

company to achieve high growth possibility in both domestic and international market.
Suggestion can be given in respect to salary increments. Company can increase the increment
rate so that more talent could get attract towards the company (Wood and et.al., 2018).
Organisation can also follow the practice where it can offer quality incentives to all its
productive employees. It becomes essential for all productive employees to get rewarded
against the productivity they have proved. This will motive other employees in company to
put extra efforts to achieve best level of work efficiency.
Company can also take action against the employee grievance policy. It should make
changes in its employee grievance policy where company can limit the total expected time to
solve any of the employee issue. It become essential for organisation to take limited time to
address the problems or issues employees are facing at work place. This will boost the
employee satisfaction and also allow company to achieve growth at different level. All these
are the potential changes that Aldi Company can introduce which will allow the business
entity to meet all its objectives and goals of delivering business objectives.
CONCLUSION
Human resource management demonstrated as managing the organisation need
related to work force along with meeting up the need and demand of employees’ part of the
organisation. Different policies like incentive policy, fast issue solving policy, internal
recruitment practice and many other are follow by the business entity to achieve better
growth in the respective market. There are plenty of legislation further applicable over the
company such as equality act, anti discrimination law, minimum wage payment law and
many other act that are directly applicable over company. All these legislations are applicable
at all business locations associated with the Aldi Company. Organisation follow the casual or
traditional structure to manage the human resources associated with business entity.

REFERENCES
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