ALDI HRM Practices: Workforce Planning and Resourcing

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HUMAN RESOURCE
MANAGEMENT
ALDI
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Table of Contents
INTRODUCTION........................................................................................................................3
TASK-1...................................................................................................................................... 4
LO1....................................................................................................................................... 4
P1 EXPLAIN THE PURPOSE AND THE FUNCTIONS OF HRM, APPLICABLE TO WORKFORCE
PLANNING AND RESOURCING AN ORGANIZATION..........................................................5
P2 EXPLAIN THE STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO
RECRUITMENT AND SELECTION.......................................................................................6
LO2....................................................................................................................................... 9
P3 EXPLAIN THE BENEFITS OF DIFFERENT HRM PRACTICES WITHIN AN ORGANIZATION
FOR BOTH THE EMPLOYER AND EMPLOYEE.....................................................................9
P4 EVALUATE THE EFFECTIVENESS OF DIFFERENT HRM PRACTICES IN TERMS OF
RAISING ORGANISATIONAL PROFIT AND PRODUCTIVITY...............................................10
LO3..................................................................................................................................... 11
P5 ANALYSE THE IMPORTANCE OF EMPLOYEE RELATIONS WITH RESPECT TO
INFLUENCING HRM DECISION-MAKING.........................................................................11
P6 IDENTIFY THE KEY ELEMENTS OF EMPLOYMENT LEGISLATION AND THE IMPACT IT
HAS UPON HRM DECISION-MAKING..............................................................................11
TASK2..................................................................................................................................... 13
REFLECTION........................................................................................................................13
CONCLUSION.......................................................................................................................... 20
REFERENCES........................................................................................................................... 21
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INTRODUCTION
This project report is based on human resource management and the application of human
resource practices in the workplace to achieve the desired targets. The first part of the
report will be dealing with the HRM functions, the strengths and weakness of selection and
recruitment approach, the importance of HRM practices that the employer and employee
feel through employee relations building. How the HRM practices help in raising the
productivity and profitability of the organization with employment legislation are also
explained in this first task. The second task will be including the reflection or the application
of the learning that was done in the first part of the report.
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TASK-1
LO1
OVERVIEW OF THE ORGANISATION-
ALDI is a German-based food and supermarket chain that operates mostly in Europe and in
the United States. It is owned and run by two families and there are 20,000 stores of ALDI in
20 countries, and 620 stores in the UK and Ireland. This supermarket chain has the record of
holding 1300 different items each day in every one of its stores in the 20 countries. The aim
of ALDI is to provide the customer's product that ensures the highest quality with a low
price guaranteed. This company aims at providing high price value to its consumers and
make them shop in a more smarter and easier way. Thus currently ALDI is partnering with
new suppliers regularly and creating better options for the customers so they can buy easily
and have a variety to choose from varied options. The company was started in the year 1913
and also at that time they were the cheapest wholesaler or the supermarket at that time.
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P1 EXPLAIN THE PURPOSE AND THE FUNCTIONS OF HRM, APPLICABLE TO
WORKFORCE PLANNING AND RESOURCING AN ORGANIZATION
Purpose of HRM-Purpose of HRM is to maintain the low labor turnover and motivate the
employees to achieve higher targets together. Human resource management is the heart of
an organization and the human resource manager has the responsibility to organize and
maintain the human capital and motivate them towards the achievement of the
organizational goal.
Role and responsibility of HRM- the role and responsibility of HRM is to organize and
manage the human resource capital, the main aim is to maintain the quality employees at
ALDI and the role is extended to-
1. Make policies- for maintaining peace at the workplace environment the policies to
ensure that no employee or the employer gets loss or is exploited so HRM has to
build the policies regarding reporting, communication, leaves, salary and behavioral
ethics of the company.
2. Implementation and control- the HRM has the role to implement these policies at
the work place and to ensure that all employees follow the same to maintain the
decorum at the workplace.
Functions of HRM-
1. Planning – the first and the foremost function of HRM is to plan the workforce
requirement of the company in its varied branches and thus ALDI has launched its
new branch at Wembley Central so at first, it has to plan that how much of the
human capital will be required for the new branch and what type of workforce is
required, that is to be planned in advance (Patel and Cardon, 2010).
2. Organizing- the organizing function of HRM includes arranging and managing the
human resource capital, the organizing function of the HRM is very important at and
repetitive and continuous cycle that is always to be maintained as there are always
some of the employees who leave the organization and some will join so to make the
targets achieve on time the human resource management function has to maintain
and retain the employees at the Wembley Central branch (Patel and Cardon, 2010).
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3. Recruitment, selection- the main function of HRM is to recruit and select the best
candidates as the employees of the company. For ALDI the HRM has the objective of
recruiting the best employees through various sources and select the right person
for the right job, at ALDI at the new branch at Wembley Central the employee is
recruited and selected on the basis of their ability and experience criteria (Patel and
Cardon, 2010).
4. Controlling and rewarding- the HRM has the function to measure the individual
performances of the employees and compare the same with the desired targets if
the deviation is negative and the employees are performing badly then they should
be motivated to work better and their level best and if the employee over achieves
their target then he should be rewarded and appreciated for the same, as at ALDI
the majority of the staff is the newly recruited staff and the new branch Wembley
Central so the targets will be achieved slowly or the low performance is expected
(Patel and Cardon, 2010).
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P2 EXPLAIN THE STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO
RECRUITMENT AND SELECTION
Workforce planning is forecasting the number of employees which will be required at the
workplace and after identifying the quantity of the human capital required at the new
branch of Wembley Central the next step is to plan and organize the requirement with
current employees and the gap is to be filled up by recruiting the new employees. For ALDI
as the new branch at Wembley Central is being opened so only few employees will be old
and the rest will be recruited and these employees are to be recruited from outside the
organization.
Recruitment means to collect the candidates and their CV applications for a specific job
profile so that the maximum and the good quality candidates apply for achieving
employment at the company.
Approaches to recruitment-
The recruitment can be done through various ways mainly internal and external sources.
Internal approach- The internal sources include appointing the existing employee from the
company to the vacancy post. The internal approach induces the motivation within the
employees and creates a healthy competition between the employees, the disadvantage of
internal approach is that no new talent is being brought to the organization but at ALDI’s
new branch in Wembley Central it needs the existing employees because at the new branch
some experienced employee is needed to follow the legacy of ALDI.
External approach- external recruitment is to call the candidates from outside the
organization. The external source includes website and recruitment through job portals and
applications. This approach is very much important for ALDI. Website is a very economical
recruitment approach, through the ALDI’s own websites it can attract the candidates and
can approach for the vacancies at the company at Wembley Central branch and thus the
interested candidates will apply for the same. This is a very authentic and time-saving
approach to reach a greater audience all at once (Girard and Fallery, 2011).
Strengths-
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 Very economical and very easy approach for ALDI to recruit as compared to
third party recruitment and the best candidates they can aspire for.
 The second strength of this approach is that the audiences or the interested
candidates across the geographical borders can be reached without any extra
cost.
 The other benefit of this approach is that the inappropriate applications can
be rejected just by looking at their CV online no need to call the candidate at
the office and waste the time of both the parties (Girard and Fallery, 2011).
Weakness-
 This approach has the weakness that there any be some of the candidates
that are not available online and so they will be unable to apply this can
create a loss of the talented candidates.
 This approach has another weakness that the applicants may apply to the
fraudulent sites and the application may not reach to the actual company
(Girard and Fallery, 2011).
Third party Recruitment or agencies-this approach means that hiring an agency or give
money to the recruitment apps that can bring the candidates that are interested and
looking for a job at ALDI Wembley Central branch , these agencies have the contacts that
help them in reaching to the desired job providers.
Strengths-
1. This approach has the advantage that only quality applications are received
through the agencies they also match the job profile with the skills of the
candidates and the suitable candidates only reach to ALDI.
2. The HRM team doesn’t have to engage in the recruitment process and the time is
being saved also the energy is utilized in the productive and other activities at
the workplace (Girard and Fallery, 2011).
Weakness
1. This approach is very expensive and the company has to rely on the choices of
the recruitment agencies.
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2. The recruitment agencies may seek more applications so that they get
commission and they may not be providing actual details that may create
chances of rejecting the candidate (Girard and Fallery, 2011).
Selection is the process of choosing the right candidates amongst the applied candidate on
the basis of criteria that is required from the job profile. There are various approaches for
selecting a candidate-
INTERVIEW-
Interview process is the most popular and mostly used by the companies, this process
involves face to face interaction of the employer and the candidates that are being
shortlisted through the recruitment process at the Wembley Central branch of ALDI, the
candidate is to be finally selected after interviewing his skills through an interview and this
includes asking questions mostly open-ended and identifying the communication and other
skills of the candidate which are relatable to the required profile or not (Ho et al., 2010).
Strengths –
1. Helps in identifying the communicational and professional skills of the candidates.
2. There is no possibility of cheating or falsification of knowing the skills (Ho et al.,
2010).
Weakness
1. This is a very lengthy process and each candidate requires at least one hour to be
interviewed which makes this approach very time consuming and hectic for both
employer and candidate.
2. The interviewer may be biased because he may avoid listening to the further
candidates as at the beginning he may find the best candidate so other candidates
were not given chance to present themselves properly (Ho et al., 2010).
APTITUDE TESTS-
Tests include aptitude test or analytical tests that are either conducted online or either
offline mode or all the candidates together can give tests at the same time. ALDI need not
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use this approach as there is no technical requirement required except for finance
department functioning (Ho et al., 2010).
Strengths-
 The major strength is that it is easy and not time-consuming approach as all the
candidates are examined at the same time (Ho et al., 2010).
Weakness-
 The biggest weakness is that there are significant chances of biases and cheating
which may result in the selection of the wrong candidate.
 The speaking or the communication skills of the candidates cannot be analyzed
through this and for ALDI this skill is highly mandatory.
 ALDI should follow the interview approach of selection and both internal and
external recruitment approach for the recruitment process (Ho et al., 2010).
At ALDI with the new branch being opened at Wembley Central some internal
recruitment is to be done and majorly the external recruitment approach is to be chosen
and for choosing the external approach most preferred one is through agencies.
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LO2
P3 EXPLAIN THE BENEFITS OF DIFFERENT HRM PRACTICES WITHIN AN
ORGANIZATION FOR BOTH THE EMPLOYER AND EMPLOYEE
Benefits of HRM practices for the employer-
1. Increase in productivity- the HRM practice of motivating the employees, orienting
them to the new organization as ALDI (Wembley Central branch) has to motivate and
provide orientation to the newly appointed employees, this will help them to
perform better and thus the old employees also will be performing with their highest
efficiency and effectiveness (Cascio, 2015).
2. Labour turnover reduction- the function of HRM is to provide for all the basic needs
of self-actualization needs, basic needs and other needs so this creates employees
trust towards the company, they become committed to ALDI and will not be leaving
ALDI (Wembley Central) branch (Cascio, 2015).
3. Cost saving – through the HRM practice of training, selecting the right candidate for
the right job will help to increase the efficiency of employees and will result in less
wastage and fewer mistakes thus indirectly contributing to the reduction in cost for
ALDI at the newly opened branch in Wembley Central (Cascio, 2015).
Benefits to the employee-
1. Development of skills- through the HRM process of training and development the
skills of the employees are developed and these skills help the employee in gaining
knowledge for current and future career options (Cascio, 2015).
2. Efficiency- through appreciation, rewarding system, motivational activities of the
HRM develops the creativity and efficiency of the employees and thus their
professional and personal skills like time management, communication skills,
decision-making skills, experience gaining and the ability to work in a team all are
developed at ALDI (Cascio, 2015).
3. Ensuring safety and security- the HRM practices at the workplace ensure the interest
of employees and save them from being exploited and the HRM practices of
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implementing the laws and regulations of the country will help the employees at
ALDI (Cascio, 2015).
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