Human Resource Management Report - ALDI - HRM Practices Analysis

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on their functions, benefits, and impact on organizational performance. The report uses ALDI as a case study, examining various HRM functions such as recruitment, selection, training, and development. It explores the strengths and weaknesses of different recruitment and selection approaches, highlighting the importance of employee relations in influencing decision-making. The report also discusses the benefits of various HRM practices for both employees and employers, emphasizing how effective HRM can raise organizational profits by fostering a positive work environment, improving employee performance, and ensuring legal compliance. Furthermore, the report delves into the significance of employee relations and the impact of employment legislation on HRM decisions, providing a well-rounded overview of the subject.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions and purpose of human resource management.......................................................1
P2 Strengths and weaknesses of various approaches of selection and recruitment....................2
TASK 2............................................................................................................................................4
P3 Benefits of various human resource practices for employee and employer..........................4
P4 Effectiveness of various HRM practices in terms of raising profits of organisation.............5
TASK 3............................................................................................................................................6
P5 Significance of employee relations in influencing decision making related with human
resource management..................................................................................................................6
P6 Main factors of employment legislation and its impact on HRM decision making..............7
TASK 4............................................................................................................................................8
P7 Application of human resource practices in a work related context......................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Concept of human resource management relate with the actions of managing workers and
their actions at workplace. This is a combination of various functions such as performance
evaluation, recruitment, selection, training and development of employees and many more (Song
and et. al., 2010). One of the main advantage of this is that help manager in formulate effective
HR policies which help enterprise in betters satisfy needs and wants of employees. All this help
manager in increase morale of employees motivate them to perform well. ALDI, a leading
grocery retailer based in United Kingdom is taken in this report for study. At present the
company is offering its services in more than 20 countries. Main purpose and function of human
resource management and its benefits to both employers and employees is all included in this
report. Further, importance of employee relations in a firm and its impact on decision making
process with key elemets of employment legislations is all given in this.
TASK 1
P1 Functions and purpose of human resource management
Human resource management is one of the essential element of every enterprise as this
relate with employees working in company. With help of this concept managers can formulate
better policies and business plans for company. One of the main benefit of this concept is that it
help company it utilise all its resources at maximum level. Main purpose of HRM is to provide
support to manager to hire right candidate for right job. Skilled employees help enterprise in get
competitive advantage (Surroca, Tribó and Waddock,2010). One of the main feature of this
concept is that it give opportunity to manager to evaluate performance of employees and
encourage them to contribute more in company's success. With help of this concept manager of
ALDI can hire best and capable candidate to perform roles in enterprise.
Functions of HRM Recruitment: This is one of the main function of human resource management. Manager
is the one who so advertisement about the vacancy in enterprise to attract number of
capable candidates to fill the same. Concept of HRM guide manager during whole
process of recruitment. For example: manager first evaluate the skills of applicants in
order to choose the best one. After that manager take the final decision by current skills
of individuals and the skills required to perform the job.
1

 Relation with employees: In present business scenario, workers are seen as one of the
valuable assets of every enterprise as these are the one who provide their support to
company to execute complex tasks (Teece, 2012). For this reason it is one of the main
responsibility of human resource management to create and maintain good relation with
workers ion order to get their support and commitment. Concept of HRM help manager
in doing the as this encourage employees to conduct programs in which employees can
discuss the issues and problems. All this enhance morale of employees and their
commitment towards their jobs. Conduct training and development: Different practices of HRM are there which ensure
performance evaluation of workers on timely basis. This help help manager in identify
the gap between current and standard skills of employees. After that, conduct training
programs in order to fulfil the identify gap is one of the main function of human resource
management.
 Compliance: Formulate policies for human resource of company by consider various
related with employment is one of the main and important function of HRM. Main
advantage of this is that it support and guide manager to take legal action for the issues
which take place in enterprise.
All these are the main function of human resource management. It is very essential for manager
of ALDI to perform all these in an effective way to achieve maximum outputs.
P2 Strengths and weaknesses of various approaches of selection and recruitment
Recruitment is known as the process of attract large number of skilled candidate to fill
vacancy in an enterprise (Yamamoto, 2011). This is known as one of the main most important
and effective function of every enterprise because the employees are the one which contribute in
success and growth of company. Different approaches of recruitment are there which can be
choose by managers of ALDI to hire skilled candidates to perform complex jobs in company:
 Internal approach of recruitment: In this approach of recruitment manager give chance
to existing employees to fill higher jobs in company. For this manager first evaluate the
skills and capabilities of workers and than workers who pass the criteria given a chance
to get promotion. This approach has number of strengths and weaknesses which include
the following:
Strengths
2

One of the main benefit of this approach is that it save company's cost of advertisement.
In this existing employees are given chance of promotion which motivate them to perform well
and increase their commitment and loyalty towards enterprise. This help in create a positive and
healthy work environment and increase productivity of whole organisation. Not only this, this
save the company's cost invested in training and development activities for new workers.
Weaknesses
One of the weakness of this approach is that it blocks new talent and innovation at
workplace. Sometimes it become difficult for manager to choose the right individual for
promotion. This demotivate the employees who fails to get promotion and decrease their
satisfaction and morale.
 External approach of recruitment: This is one of the most popular and effective
approach of recruitment. Under this manager do advertisement about the vacancy in
enterprise and attract skilled candidates to apply for the same (Yates and Paquette, 2011).
After that manager identify and evaluate the skills of applicant with the skills require to
perform the job. Following are the main strengths and weakness of this approach:
Strengths
In this manager choose candidates from outside the enterprise to fill vacancy which
brings innovation and fresh talent in company. This increase both profits and productivity of
company. This provide an opportunity to manager to choose the best candidate from all
applicants which help enterprise to achieve better achieve its set goals and objectives.
Weakness
This approach of recruitment is very time consuming and costly. As company invest its
funds in advertisement to attract candidates. Along with this, this approach demoralise existing
workers and give rise to conflicts among new and existing workers.
Selection: After invite number of applicants with the purpose of fill job, select the right one for
fulfil the vacancy is known as selection. Following are the main approaches of selection: Systematic approach: In this manager of company follow a sequence of steps to evaluate
capabilities of individuals and choose a strategy to select the right one. One of the main
feature of this approach is that it eliminate biasness from the process of selection.
 Unsystematic approach: Under this manager choose a CV of applicant randomly and do
comparison of his skills with the capabilities require to perform a specific job.
3

TASK 2
P3 Benefits of various human resource practices for employee and employer
Various activities of HRM concept provide benefits to the employees and the
organization in order to maintain the positive work environment. There are are follows:
Benefits to employer Creative positive work environment: The main benefit of HRM concept within the
organization is to make effective policies which follows by the employees in order to
create positive work environment (Allen and et. al., 2011). It helps in encouraging
workers morale so that they perform their best and achieve organizational goals and
objectives in systematic manner. Help to manager in taking future decision: One of the best advantage of human resource
management is to evaluate the employees activities in order to decide the future action in
effective manner. With the help of this manager take better decision for their future
activities. Provide support to evaluate the policies of organization: HRM practice provide better
opportunities after measuring the job satisfaction of the employees which helps in
improving the efficiency of the worke4r at the workplace. With the help of this manager
doing all the necessary changes in their policies to maintain better environment within the
organization.
 Helps in building team: One of the main benefit of the HRM is to provide better
opportunities to the manager to evaluate all the process in order to achieve their target
(Armstrong and Taylor, 2014). It also helps in making an effective team so that they
provide better services to large number of customers to satisfy their needs.
Benefits to employees: Improve employees performance: HRM practice is one of the best process which helps in
encouraging and creating positive work environment. This aid in encouraging the
employees morale towards work and also increase the performance level at the workplace
in appropriate manner.
4

 Understand various needs of employees: The main advantage of HRM is to identify the
employees need at the workplace (Boxalland Purcell, 2011). It also provide guidance to
the manager to evaluate performance of the employees and organize training and
development programs as per employees needs. It helps in improving employees skills
and knowledge in effective manner.
 Create healthy working environment: HRM is effective practice which helps in
providing risk free working environment to the employees and also give fair
compensation in order to improve their quality performance within the organization.
P4 Effectiveness of various HRM practices in terms of raising profits of organisation
Human resource department is known as one of the one of the most important function of
every enterprise as this undertake various activities in order to increase employee's contribution
in company's success. One of the main benefits of various human resource practices is that it
give direction to both managers and employees. Further, it brings cooperation and coordination
among various activities of company.
Effective HRM practices help in give rise to healthy and positive work environment
which motivate employees to perform well. With help of these practices company can better
utilise all its resources which increase profits of company (Carter and Liane Easton, 2011) .
Further, various activities related with HRM encourage employer to provide better working
conditions to employees and all this increase employees output. In an enterprise want to achieve
its set objectives and targets than it is very essential for company to have support and
commitment of workers and this can be achieve by manager by satisfy their needs and wants.
Concept of human resource management help manager in do this in an effective way. All this
encourage morale of workers and motivate them to give their best which increase both profits
and productivity of company. Concept of human resource management encourage performance
evaluation of workers on timely and on basis of collected information manager conduct training
and development programs for them so they can perform well. This help enterprise in complete
all complex tasks in minimum amount of time and provide competitive advantage to company.
Overall various HRM practices encourage both managers and employees to perform well
by give direction to them.
5

TASK 3
P5 Significance of employee relations in influencing decision making related with human
resource management
For achieve set objectives and targets every enterprise require skilled and capable
candidates. Not only this it is also very essential for employer and managers to maintain good
relation with them (Davis and Adam Cobb, 2010). For create maintain good relation with
employees it is very essential for employer to offer healthy and risk free working conditions to
them. Main things which can be done managers of ALDI to create good relations with
employees can be understood by following points:
 Managers should encourage participation of employees in decision making process. With
help of these both managers and employees can set mutual goals and objectives.
 Employers should treat all employees in a friendly manner.
 Feedback of lower level employees should be encouraged by managers in order to known
about the problems and issues face by them.
 Appraisal of employees who perform well should be done by managers on timely basis so
they can be motivated to give their best.
 Equal opportunities of growth should be offer to all all employees as this help in create a
positive environment at workplace.
All this can be done by managers of ALDI for create and maintain good relations with
employees. One of the main benefit of good relations with employees is that it provide
employee's support to company. Good relations with employees encourage manager in relevant
decision for business. When enterprise do number of activities for employees than they perform
their roles and responsibilities with full dedication. On the opposite of this when management
fails to create and maintain a good relation with employees than it affect the activities of business
(Ernst Kossek, Lewis and Hammer, 2010). To get number of advantages of good relation with
employees manager of ALDI should offer them fair remuneration for work they do and at the
same time should offer them safer and healthy working conditions all this motivate employees to
perform well. Along with this, proper training ad development programs must be conduct by
managers of ALDI to enhance skills of employees so they can achieve end goals in an effective
way.
6

P6 Main factors of employment legislation and its impact on HRM decision making
Employment legislation is a body which consists various rules and regulation which
define basic rights and duties of employees at workplace (Halbesleben, 2010). Basically this
define responsibilities of both employees and employers towards each other. Main factor of
employment legislation which affect the decision of managers related with employees include
the following: Employment right act: This act explain all rights and basic facilities which should be
offer by employer to employee during his working hours. This act states that minimum
wage and healthy working conditions should be offer to every worker so he can perform
well. Equal pay act: As per this act, employer of an enterprise is liable to offer same pay to
individuals who have same kind of qualities and who perform same kind of job in
company (Sarkis, Gonzalez-Torreand Adenso-Diaz, 2010). This help in create a positive
environment at workplace and at the same time increase morale of workers. Same should
be consider by manager of ALDI in order to motivate workers to perform well. Employee discrimination act: According to this act, it is responsibility of manager to
treat all workers with dignity and respect or should not do discrimination with workers on
basis of their colour, age, culture, religion and gender (Glover and et. al., 2011).
Discrimination hamper productivity of workers and emotive them so it should be remove
from workplace. Minimum wage act: Government of every country decides a rate of wage as per the
condition exist in market. That rate is known as minimum wage rate. As per this act,
employer of every enterprise is liable to offer wage to workers as per this rate so they can
fulfil basic needs of routine life such as food, shelter and cloth. Working time directive act: This act of employment legislation is related with the
working hours of an employee. As per this, an employee is responsible to complete
minimum hours of working in order to get legal existence of his employment (Hobfoll,
2011). As per this 48 hours are the minimum working hours of an employee in a week.
Worker can work for more hours as per his own will. Employee relation act: It is clear that today workers play a big role in enterprise. This act
state that it is responsibility of every employer to create and maintain better relations with
7

employees. This help enterprise in get their commitment and support. Employer can
create better relations with employees by offer them fair remuneration and healthy
working conditions.
 Worker disability discrimination act: This act state that employer should not
discriminate with the disable workers who work in company (Luthans and et. al., 2010).
As per this act, all services and basic facilities should be offer to these employees as this
increase their morale and motivate them to increase their productivity.
All these are the main factors of employment legislation which should be consider by manager
during formulation of policies related with employees. All this affect the decision making
process of company relate with workers.
TASK 4
P7 Application of human resource practices in a work related context
ALDI is one of the popular leading grocery brand based in United Kingdom. Presently
company is thinking to open a new branch to increase number of its profits. But for achieve this
firm is facing number of issues such as lack of skilled manpower, increase number of customers
complaints, decreasing quality of its products and many more (McWilliams and Siegel, 2011) .
In order to get solutions of all these problems company can apply HRM practices in following
areas: Manpower planning: It is very essential for manager to first decide the number of
employees require to execute business operations. With help of this manager of ALDI
can hire adequate number of employees to handle business operations in an effective
way. Training and development: Conduct training and development programs for employees
is very essential for company (Pfeffer, 2010). By this company can enhance skills and
abilities of workers through which they can find better solutions of business problems.
Overall, this increase performance of whole enterprise. Create vision and mission: Activities of human resorts management helps in evaluate
skills of workers. This guide manager about current skills of whole enterprise and also
guide him create mission and vision of company.
 Maintain quality of products: Increase number of customers is one of the main issue
which ALDI is facing and this can be handle by enterprise by evaluate performance of
8

employees (Pierre, 2016). Further manager can conduct training programs for enhance
skills of employees and to make them able to produce quality products for large number
of customers.
All these are the main factors on which manager of ALDI can apply HRM practices for
eliminate issues from workplace and to increase number of satisfy customers.
CONCLUSION
From the above report it can be summarised that workers play a big role in overall
success of a company. In today's business environment it is very essential for managers to create
and maintain good relations with employees. This can be done by managers by formulate
effective policies and by consider all legislations related with employees.
9

REFERENCES
Books and journals
Allen and et. al., 2011. Adaptive management for a turbulent future. Journal of environmental
management. 92(5). pp.1339-1345.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Carter, C. R. and Liane Easton, P., 2011. Sustainable supply chain management: evolution and
future directions. International journal of physical distribution & logistics management.
41(1). pp.46-62.
Davis, G. F. and Adam Cobb, J., 2010. Chapter 2 Resource dependence theory: Past and future.
In Stanford's organization theory renaissance, 1970–2000 (pp. 21-42). Emerald Group
Publishing Limited.
Ernst Kossek, E., Lewis, S. and Hammer, L. B., 2010. Work—life initiatives and organizational
change: Overcoming mixed messages to move from the margin to the mainstream.
human relations. 63(1). pp.3-19.
Glover and et. al., 2011. Critical success factors for the sustainability of Kaizen event human
resource outcomes: An empirical study. International Journal of Production
Economics. 132(2). pp.197-213.
Halbesleben, J. R., 2010. A meta-analysis of work engagement: Relationships with burnout,
demands, resources, and consequences. Work engagement: A handbook of essential
theory and research. 8. pp.102-117.
Hobfoll, S. E., 2011. Conservation of resource caravans and engaged settings. Journal of
occupational and organizational psychology. 84(1). pp.116-122.
Luthans and et. al., 2010. The development and resulting performance impact of positive
psychological capital. Human resource development quarterly. 21(1). pp.41-67.
McWilliams, A. and Siegel, D. S., 2011. Creating and capturing value: Strategic corporate social
responsibility, resource-based theory, and sustainable competitive advantage. Journal of
Management. 37(5). pp.1480-1495.
Pfeffer, J., 2010. Building sustainable organizations: The human factor. The Academy of
Management Perspectives. 24(1). pp.34-45.
Pierre, J. ed., 2016. Partnerships in urban governance: European and American experiences.
Springer.
Sarkis, J., Gonzalez-Torre, P. and Adenso-Diaz, B., 2010. Stakeholder pressure and the adoption
of environmental practices: The mediating effect of training. Journal of Operations
Management. 28(2). pp.163-176.
Song and et. al., 2010. Limits of predictability in human mobility. Science. 327(5968). pp.1018-
1021.
Surroca, J., Tribó, J. A. and Waddock, S., 2010. Corporate responsibility and financial
performance: The role of intangible resources. Strategic management journal. 31(5).
pp.463-490.
Teece, D. J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of
Management Studies. 49(8). pp.1395-1401.