Report on HRM at ALDI: Functions, Employee Relations, and Legislation

This report provides an overview of Human Resource Management (HRM) functions and practices at ALDI, a leading grocery retailer. It discusses the purpose of HRM, including recruitment, selection, training, and development, and its impact on organizational goals. The report examines external and i...Read More

HUMAN RESOURCES
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1. Functions and purpose of human resource management......................................................1
P2. Approaches of selection and recruitment with their strengths and weaknesses...................2
LO2..................................................................................................................................................4
P3. Benefits of HRM practices to employer and employee of enterprise...................................4
P4 Effectiveness of HRM practices in raising profits and productivity of organisation............5
LO3..................................................................................................................................................6
P5 Importance of worker relation to influence human resources management decision making
.....................................................................................................................................................6
P6 Elements of workers legislation and its effect on decision making.......................................7
LO4..................................................................................................................................................9
P7 Application of HRM practices in work related of an organisation........................................9
CONCLUSION .............................................................................................................................10
.......................................................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Human resource management is a process of managing workers and their activities at
workplace. It helps director in give guidance to employees for achievement of organisational
goals. HR department of an enterprise recruit, select and fill the vacancies of organisation for
attainment of set objectives. Process of HRM helps manager in hiring skilled candidate for
performing the roles of company. It is designed to increase candidate’s performance for the
achievement of organisational objectives. Also, HRM provides direction and motivation to staff
members through providing legal advice and training. Concept of HRM include performance,
evaluation of worker's skills and talent which help manager in conducting training
preprogrammes for them. It helps in bring coordination among all activities of enterprise
department(Albrech, 2011). It guides manger in making policies regarding the management of
employees in organisation. This report is based on ALDI which is one of the leading grocery
retailer companies in world. They have more than 7000 stores across 70 countries. Here, there
will be discussion on different functions and purpose of HRM. Firm start its operation in 1946
and come into existence in 1913. Present report is based on functions and purpose HRM. Impact
of this function on other organisational activities and application of this in various activities of
business organisation is given under this report. It helps in enhancing the skills, knowledge and
abilities of employees along with making effective policies related to human resource
development.
LO1
P1. Functions and purpose of human resource management
In every organisation there are various objectives that are required to be achieved. this
purpose it is important that proper persons should be hired.
The purpose of HRM is to select, recruit, develop and train the employees. Development
programs and effective training assist employees to improve their skills, knowledge and
performance.
This system assists managers in selecting and recruiting innovative candidates for
specific as well as right job position(Armstrong, and Taylor, 2014). It save large numbers of
resources and evaluate different tools and techniques of a company. It is essential function of
every enterprise because all departments managers use this. Manager of ALDI can use this
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function because it is very beneficial to select and recruit right knowledgeable candidates. Apart
form this function assist enterprise in adapting many change in firm environment.
Function s of HRM: There are different functions of HRM It can help to enhancing new
candidates are as follows:
 Selection and recruitment: Both are HRM functions which are important for every
organisation. It is more effective giving supporting things and raw materiel to owner.
Before executing the activity of selecting and recruiting every organisation should make
and synthesis about hoe many workers they need this job(Boxall, and Purcell, 2011).
They are depend on short and long term goals of a ALDI
 Maintain and build better working place: In current business environment there
employees wants to work under a hazardous and uncertainty work place. It is a important
role and responsibilities of HR manager to giving healthy working conditions to their
subordinates. Unsafe environment not motivate employees but also increase product
productivity.
 Training and development: It is one of the essential functions of HRM to increase
worker’s current skills and knowledge. It is the best way by which candidates survive and
face in competitors
 Managing good relations with workers: Employees are needed for every organisation’s
success and it is very important for the manager of ALDI HRM helps in maintaining
better relationship with their employees. They play an essential role that would increase
the performance and productivity of employees.
 Orientation: It is the best program in which firm to assists new applicants to learn about
enterprise climate and culture(Brewster, and Hegewisch, 2017). They provide
information on how they can get their short and long term objectives.
P2. Approaches of selection and recruitment with their strengths and weaknesses
Human resources management function are recruitment and selection, it is very essential
of every enterprise. This process more effective for job description and specification to assist of
manager. Owner of Aldi need to understand the function essential to select and recruit right and
perfect applicants as well as candidates. For recruitment organisation can exercise the followings
steps are :
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External approach of recruitment: It is an essential approach of recruitment by which
manager fulfils job vacancy from outside the enterprise. Related to this techniques workers are
recruited and selected by company from external the environment(Guest, 2011). It means human
resources department regard outside factor by promoting select and recruitment of an individual
with the assist of television, newspaper, radio and pamphlets etc. Therefore HR department plays
important role and fill the vacant position by viewing outsider.
Strengths Weaknesses
Appointment of skilled and experience
candidates.
Advanced cost for selecting and recruiting
process. There are requirement of maximum
capital.
Availability of opposition Orientation and induction cost.
Development of innovative and creative plan
or opinions which is very essential such as
beneficial for whole growth and improvement
of a business.
Aldi has high rate of employee turnover and it
is very lengthy process.
Internal approaches of recruitment: According to this approach an enterprise may
appoint and select their workers with the help of exiting employees(Chelladurai, and Kerwin,
2017). It may define job vacancy which are fulfil human resources directors. Aldi by promoting
their exiting candidates either for motivate their objectives and goals.
Strengths Weaknesses
It requires minimum and low cost of promotion
tools.
lower number of candidates as well as
applicants are available.
Familiar with establishment work environment. Related to communication channel there is
experience of another vacant job position
which is essential to filled needs and wants.
Aldi already aware about their disadvantages
and advantage of a candidates and applicants.
. lack and absences of innovative and new
ideas. There are lack of communication.
Requirement of advertising and promotional Interrupt the present environment of an
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opportunities. enterprise.
Selection approaches: It is the process of selecting new and right candidates for
respective vacant positions. The manager of Aldi can use different approaches which are as
follows:
 Systematic approach: In this, managers follow a series to measure the candidate’s skills
and knowledge. This approach is essential to assist in selecting right and perfect
candidates for filling the job position.
 Unsystematic approach: Under this process, company adviser does not follow a series
to select personnel for playing the job.
LO2
P3. Benefits of HRM practices to employer and employee of enterprise
Individual management plays a very important role and responsibilities in growth and
development of employees and employer. Basically victory of an enterprise be conditional on
higher and lower level because all the activity and task are monitored and managed by workers
and employers(Guest, 2011). Aldi provides many benefits and facilities to their HR .
company also does HRM to bring coordination among various business activities. These
policies and practices are beneficial to both employees and employers of enterprise. There are
different points which can be understood like:
Benefits to employer:
 Create a positive work environment: Management activities creates an effective as
well as positive working environment. It is needed to increase employee's productivity. It
helps in creating a positive work culture in the firm.
 Assist in measure policies: HRM practices give opportunities to advisor in evaluating
the best policies due to management of employee’s activities at workplace. It is important
to make non-stop changes for getting the best outcomes.
 Team building: It assists the director in creating common goals which provide and rise
in team building(Huselid, and Becker, 2011). Productivity of a group in much important
such as better than an individual person. It makes the organisation capable to complete its
targets and goals at nominal cost.
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 Assist director in taking planned decision at workplace: Human resource department
advisor evaluates the performance and activities of employees or other departments of
Aldi. These provide correct and relevant information to director to assist him in crucial
coming activity.
Benefits to employees:
Create a health work environment: . HRM understand this activity and need to make best
structure of workplace free from uncertainty. It not only increase productivity of employees but
attract high number of actual members.
Identify development and training need of staff members: The director of HR department
would perform and evaluate workers working condition. ALDI was conducting the tanning
programs and their manager increase knowledge and skill of their employees.
Bonus: On special events and programs ALDI was offering bonus and other benefits to their
employees and supervisors which is also type of tools and techniques(Jiang, and et. al., 2012). It
is very important to maintain the employees healthy relation and good environment between the
lower level and higher regulatory.
Identify development and training need of staff members: The director of HR department
would perform and evaluate workers working condition. Company was conducting the tanning
programs and their manager increase knowledge and skill of their employees.
Motivate employee: Positive and healthy working environment is very important to achieve
goals and objectives. All this supported and motivated workers to execute their best which gain
the overall performances of an organisation.
Retirement benefits: It is very essential because every workers get retirement benefits after
outlay their past years for betterment of a business. Like mortgage benefits, provident fund, and
schemes after donning their services period.
Advisor of business can give these profits as well as benefits to employer and employees.
This is very essential that the through should be applied an an effective manner. All those
elements are needed because it fulfil candidates needs and wands.
P4 Effectiveness of HRM practices in raising profits and productivity of organisation
Aldi is continuously improving its HRM practices in order to achieve its enterprise
targets and goals by increasing their performance as well as productivity(Kehoe, and Wright,
2013). Human resources management practices like training development, workers involvement,
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award system and compensation etc. The main purpose is to increase the employees living
standard by taking different techniques of improvement and enhancement of skills and
knowledges. Human resources department wants to select and recruit talented candidates as well
as applicants for increasing their productivity. HR manage plays an important role in a growth
and development of an enterprise in various ways are as follows:
Recruitment: Related to practices of human resources an enterprise plays a Vidal role in
recruiting and selecting skilled candidates according to their ability. It is very essential for
increasing the company productivity.
Job analysis: HRM is responsible to evaluate the specify job before giving for effective planning
of all organisation in fulfilment of objectives and goals.
Development and training: Under this factor also liable in increase of profit by raise the skill
and talent of an individual persons or employees by controlling improvement events to motivate
them towards professional and personal objectives (Kusluvan, and et. al., 2010). Related to this
training and development program are an enforced by human resources department of Aldi to
modify labours learning skill and knowledge.
Workers involvement: Lifting of productivity is much depended upon employees related to
their duties in increase of profit. Overall activities and task are monitored and regulated by HR
because they are force to done it in a least time duration.
Reward and Compensation: Apart form this practices of human resources management an
enterprise wants to treasure workers. It is needed to achieve organisation goals and objectives
and try to assist up their team spirit.
Above mention practices which are define different roles and responsibilities of human
resources department in maximising the performances and productivity of an enterprise. HR
manager is very important person in this organisation because it play essential role and
responsibilities regarding to recruitment and selection.
LO3
P5 Importance of worker relation to influence human resources management decision making
Every personal tasking in an enterprise supporting to make a better as well as positive
relation with their employees. An individual being are not machine. They need parents and
relatives to share their views for decreasing their tension (Lengnick-Hall, and et. al., 2011). No
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individual are ready to task along because many person are needed to work in a group for
achieving the particular objectives as well as goals. The main reason of success of an enterprise
is healthy relation between the workers because it motivated personal and professional workers.
The positive relationship in between employees is very essential because there are different
reasons are as follows:
Productivity: It is very essential to creates a present condition surrounding of Aldi. It is helpful
in increasing product manufacturing process. Listed of this company expended expenditure on
workers relation events to maximize their productivity by pleasing their employees wants and
need.
Employee loyalty: It is one of the major essential of healthy relations of workers it means it was
creates a loyalty and standard towards enterprise and supporting to rising the organisation by
increasing their profit.
Reduction of misunderstanding: Working environment is much beneficial and positive to
automatically decrease the conflict (Marchington, and et. al., 2016). In way of a mutual
perceptive between higher regulatory and lower level is very essential and useful for all
enterprise. It create a healthy interaction and environment between them.
Effective communication: It is also very important factor which plays vital role and
responsibility in a decision making activity because proper relation is very much vital for correct
and quick decision.
Hedging uncertainty: It is very useful and helpful in monitoring the future uncertainty. It is
needed to motivate workers to face hard situation by overcoming exiting issues and problems of
an enterprise. Therefore positive relationship is essential because it gain company success.
Apart form employees relationship play an important role it has been understood to make
decision process related to their role and responsibilities.
Role of trade union: There are different type of trade union which are as follows:
Negotiating collective agreements: Trade union in the workplace that help in employment to
bargaining due to terms and condition. It will considers whole employees and workers to achieve
goals and objectives. Main purpose of this in order to advance and protect members interests.
There are also several activities which are involves in this such as:
 Negotiate agreements and consent with managers on conditions and pay.
 Discuss main modifications to the company such as big scale.
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 Give their staffs with financial and legal advice.
Consulting and informing: It is define as the role and responsibilities of workers if they sell or
buy all products. Voluntary agreement which is essential to consult and inform union regarding
workplace and business problems on a daily basis.
P6 Elements of workers legislation and its effect on decision making
Employment legislation it is also know as laws and regulation which define basic duties
and rights of workers at workplace. It also specify the relationship between employee and
employer. It also describe workers responsibility . There are different acts are as follows:
Employment rights act: Under this act define all primary facility which should be give by
worker to an employee at workplace (Meredith Belbin, 2011). It is very beneficial act because it
provide minimum wages for the employees. Rules and regulation are complete their basic needs
other than this healthy and safe working environment it should be maintain by workers to
increase employees productivity. All tasking terms and conditions of an enterprise should be told
to members before join the business.
Employees discrimination act: This legislation define the workers responsibilities to manage
all members in a same and fair way. In this company where many workers which should not be
differentiate on basis of culture, age, gender, lifestyle and colour etc. growth and success are
provide equal opportunities. Jettison of discrimination will assist director of Aldi in creating best
healthy and positive work environment which will raise employees productivity.
Equal pay act: According to this act, there are more that two people are doing the same job
should be welfare fro the equal wages. It was supported of different activity as well as creativity
of employees and motivate than to get best.
Working time directive act: This act said to minimum working hours of an employees at
workplace in day. Employees are achieve legal existence, it is bound to done her/his minimum
running time which is 48 hours in a week (Purce, 2014). The other members can do task for
more time as well as hours at their own will.
Minimum wages act: Apart form this act there government plays important role to decide the
minimum amount of salary given by manager to all workers. According to this amount is decided
by several ways like inflation rate. This act is very helpful to workers in completing their basic
wants and needs.
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Employees relation act: Under this act determine the employer responsibilities to maintain
better relation with company members to achieve enterprise goals and objectives. This can be
complete by giving them better working compensate and conditions them in a fair way. Loyalty
of workers gain whole performances of an enterprise.
Workers disability act: In this act every one was responsible to give equal facilities . It will also
increase Aldi company performances and create goodwill in the customers mind.
` All these law can be used by firm director and make ethical and effective HR policies
(Wright, and McMahan, 2011). All legislation are necessary because it assist in creating
positive and healthy working environment. It increase subordinates and employees productivity.
LO4
P7 Application of HRM practices in work related of an organisation
Aldi which is one of the leading grocery company in Germany. Business was is now
facing a several issues like increasing conflicts and decreasing productivity of employees at
workplace. To reduce this issues and make best productive in work environment. The director of
company can apply different human resources management practices are as follows:
Human resources planing: HR department of an organisation collect applicable data about all
performances of an economy and assist director in knowing about how many employees as well
as candidates are required to perform enterprise goals and objectives.
Development and training: Director of Aldi can conduct several programs and events related to
training and existing employees an organisation(Guest, 2011). It will assist to increase their
performance and productivity. Example : as per the case scenario, there are not proper training
and development programs, which is main issue. In this HRM practice help in reducing all
problems with the use of training section.
Creating mission and vision: Assessment of candidates skill and knowledge which assist to
control. It very important for the manager to deciding mission and vision for leading company.
Examples: Company can face different issues and problems in their stores such as poor
productivity, lack of experience and other, so in this business can achieve their vision and
mission in short time.
Maintain quality of company activity: To attract large number of buyers and getting a greater
market share. It is very essential for many organization to create better quality goods to fulfil
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customers needs and their wants. Human resources management assist in making business
standards and their activity. An organisation have different power to deliver products and service
quality.
Performance management: It is one of the main elements and essential of human resources
activity as well as function. This assist director in deliberate about the current knowledge and
skill of employees. It also help in assign manager duties in a proper way. Examples: Poor
performance which are existence in this company. So human resource management practices
also help in developing better performance in the organisation.
HRM function is needed, which can be applied on these factor such as area of an
enterprise other than it assists director in knowing about all barrios. Problem and issues facing by
company all workers at workplace. Manager take best action to reduce and solve the
misunderstanding at a workplace(Jiang, and et. al., 2012). Aldi is a one of leading company and
their manager can apply these techniques on best location. It is needed to solve critical problems
and to increase the power of different activities of whole division. All this can assist in making
actual condition of the business much better.
CONCLUSION
As per the above information it can be concluded that director of Aldi required to keep
better working relations with employee and employer. In non-attendance of good working place
feel dissatisfy. It assist to increase enterprise and employees performances as well as
productivity. Skilled and knowledgeable employees bring a lot in success of a company so it is
duties of workers to conduct different programs and events relate to training. In this company
manager plays important role by considering all rules and regulation of employment legislation.
In this report there director support motivated workers and ethical work practices to perform
well. Understanding the human activity at a work environment is one of the important task of
every HR manager. For this director can use different techniques as well as tools. Human
resource practices and policies assist to advisor in directing and influencing employees activity
towards enterprise success.
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REFERENCES
Books and Journals
Albrech, S.L., 2011. Handbook of employee engagement: Perspectives, issues, research and
practice. Human Resource Management International Digest. 19(7).
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.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource
Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Huselid, M.A. and Becker, B.E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jiang, K., and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6) .pp.1264-1294.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviors. Journal of management. 39(2) .pp.366-391.
Kusluvan, S., and et. al., 2010. The human dimension: A review of human resources
management issues in the tourism and hospitality industry. Cornell Hospitality
Quarterly. 51(2) .pp.171-214.
Lengnick-Hall, C.A and et. al., 2011. Developing a capacity for organizational resilience through
strategic human resource management. Human Resource Management Review. 21(3).
pp.243-255.
Marchington, M and et. al., 2016. Human resource management at work. Kogan Page
Publishers.
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource
Management International Digest. 19(3).
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Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
Online
Bachelor of Science in Human Resource Management. 2017. Available
through:<http://jindal.utdallas.edu/osim/bs-hrm/>. [Accessed on 11th July 2017].
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