Aldi's HRM: Recruitment, Selection, and Employee Relations

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Human Resource Management 1
Human Resource Management

Human Resource Management 2
Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Overview of Organization...............................................................................................................4
LO1 Purpose and Scope of HRM....................................................................................................4
P1 Purpose and functions of HRM..................................................................................................4
M1 How functions of HRM can offer talent in attaining objectives...............................................6
P2 Strength and weakness of different approaches of recruitment and selection............................6
M2 Examine strength and weakness of recruitment and selection with example...........................7
LO2 Effectiveness of Key elements of HRM..................................................................................8
P3 Benefits of different HRM practices for both employer and employee.....................................8
P4 Effectiveness of different HRM practices..................................................................................9
M3 Different methods used in HRM practices..............................................................................10
LO3 Evaluation of internal and external factors affecting to HRM decision –making.................10
P5 Importance of employee relations in context of affecting HRM..............................................10
P6 Determination of key elements of employee legislation and its impact on HRM decision –
making...........................................................................................................................................11
M4 Key aspects of employee relations management and legislation and critical analysis of
employee relations and applications of HRM practices in decision making.................................12
Task 2.............................................................................................................................................13
LO4 Application of human resource management practices in context of work relations............13
P7 Application of HRM practices in work context.......................................................................13

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M5 Rationale of application of specific HRM practices in an organization.................................21
Conclusion.....................................................................................................................................23
References......................................................................................................................................24

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Introduction
The main purpose of this assessment is to explore the practices of human resource management
in context of the business operations. This assessment has been separated into two parts in which
one is report and another part is reflection. With reference to this report, Aldi business has been
elected to analyze the human resource practices. The report emphasis on the purpose of functions
of human resource management with the key roles and responsibilities of HR functions. Along
with this, the approaches of recruitment and selection are also examined with its strengths and
weaknesses. The report also includes the benefits of HRM practices for employees and
employers along with the importance towards increasing productivity and profit. On the other
hand, the significance of employee relations is also examined that can affect the HRM practices
in decision –making with determining the key aspects of employees relations and legislation.
Further, the application of HRM practices are also applied with relation to the work- related
aspects.

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Task 1
Overview of Organization
Aldi is the leading grocery store among 70 countries with more than 7000 stores. The growth and
success of the business organization are attributed to the commitment in building the efficiencies
at every level related to distribution, construction of store. The every aspect of reinventing the
operational activities assists in maximizing the quality of the products along with the saving for
the consumers. Aldi is one of the world’s largest privately owned business organization along
with its stakeholders such as suppliers, consumers, employees along with the societies in which
company operates. Company is delivering qualitative products to the consumers at a best price.
LO1 Purpose and Scope of HRM
P1 Purpose and functions of HRM
Human resource management describes as a procedure of making plans, embryonic as well as
administering the policies along with the development program related to human resources in
ALDI. HRM is concerned with effective utilization of HR as it helps in attaining the effective
results. The company needs to take the actions by maintaining the relationship between
employees along with the employers. The main purpose of HRM includes:
• Enhance the efficiency along with the effectiveness of human resources.
• They need to ensure about the positive relationship among the staff members and employers of
Aldi (Armstrong and Taylor, 2014).
• HRM helps in individual development of human resources.

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As a leading grocery store, Aldi assist in ensuring about the effective HRM at a workplace. HRM
in Aldi aims in increasing the efficiency along with the effectiveness of staff members. This will
assist in attaining the advantages or benefits in the high competition.
Functions of HRM:
Human Resource Management at Aldi need to perform the following functions to attain the pre-
decided goals and objectives. It includes:
• HR Planning: It is essential in managing the human resources at the workplace. It assists in
knowledge, skills along with the abilities which are essential for the operational activities of
business organization. Aldi is a grocery store as it requires human resources so that they can do
their operations effectively. With the effective planning of Human resource, Aldi can enhance
the overall performance of human resources (Goodman et al., 2015).
• Recruitment and selection: The HR of the business organization needs to use effective strategy
for recruiting the employees. Aldi provide effective focus on this function as it helps in
enhancing the efficiency and productivity.
• Training and development: This process helps staff members of Aldi in increasing performance
and productivity level by improving the knowledge and skills of employees as it assist in
enhancing the sustainability level.
• Job analysis and work design: This procedure is essential for the HR manager of Aldi as it
succours in identifying the job nature as well as need to examine the specific knowledge, and
potentialities of HRM. Apart from this, HR of Aldi need to prepare the job description which
help in assessing the duties along with the responsibilities of staff members (Melchor, 2013).
HR manager of Aldi need to manage the workforce planning effectively as HR needs to examine
the requirements of resources so that they can implement the strategies and hire the effective

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individuals. In the company, HR needs to prepare the job description and documentation for the
different job role.
M1 How functions of HRM can offer talent in attaining objectives
It is necessary for the HR manager of the business organization that needs to fulfill the
requirements of staff members of Aldi, for example, if employees face any issue in completing
the task then they needs to offer the training to them which help them in working effective and
efficiently. The main key function of Human resource management is recruitment and selection
because it helps in fulfilling the needs and requirements of staff members. Another function is
performance management as it helps HR manager in reviewing and examining the activities of
staff members at Aldi (Armstrong and Taylor, 2014). The management of the business
organization should examining the current performance of the staff members as well as need to
take appropriate and effective actions so that they can cope up with the issues. These functions
help HR manager in offering the talent so that goals and objectives can be attained.
P2 Strength and weakness of different approaches of recruitment and selection
Recruitment and selection describes as a key functional area which provides the effective
assistance to Aldi so that company can enhance the image and reputation in the competitive
market. There are different approaches of recruitment and selection includes:
Internal Approach: This approach helps Aldi in recruiting the staff members internally as HR
Manager of business organization need to adopt different strategies so that they can hire effective
and valuable candidates. Different internal source include performance management, reward
system, development and training (Greenidge et al., 2012).
Strength:
 Recruitment can be done within a short time.

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 Hired employees work effectively by getting the rewards and transfers to other posts.
 There is no risk of hiring the staff members which are unqualified.
Weakness:
 It may create discrimination among the staff members.
 Can limit the opportunities for the employees and this impact on innovation level
 This approach can provide de-motivation to employees who cannot get rewards or promotion.
External Approach: This approach helps HR in uploading the information about job vacancies
on different media so that outside recruitment can be done with effective workforce planning.
Although to hire the employees from outside is a time consuming but help in attaining the
effective outcomes (Greenidge et al., 2012).
Strength:
 It helps in promoting the brand Aldi externally.
 It assists in hiring the new and creative staff members which are beneficial for the company.
Weakness:
 It incurs the high cost.
 This approach includes the high risk and also requires the maximum time to recruit employees.
M2 Examine strength and weakness of recruitment and selection with example
According to Absar (2012), it has been examined that the internal approach in recruitment and
selection is performance management, reward system, development and training, transfer and
promotion. For example, Aldi promotes the staff member for a vacant position which helps in
getting the applicants from existing employees. As in this, employees can hire without any
interview of staff members and this requires the more time. As commented by Absar (2012), it
has been examined that external approach includes the workforce planning but it requires the

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more time to recruit the employees as it requires that interview and aptitude test need to conduct
which help in hiring the best and valuable employees for Aldi so that targets can be
accomplished.
LO2 Effectiveness of Key elements of HRM
P3 Benefits of different HRM practices for both employer and employee
There are different HRM practices that are job analysis, recruitment, job design, and training and
performance management as these practices help in attaining the maximum advantages to both
employees and employers. It includes:
HRM practices Benefits to Employees Benefits to Employers
Job analysis It offers the first hand
information related to job.
Provide the guidance through the
performance evaluation and
appraisal process.
Help in establishing and
implementing the effective hiring
practices.
Assist in examining the training
and development needs.
Recruitment It helps in filling the positions
with the internal candidates. It
also assists in hiring the new and
creative employees.
Effective screening
Reduce the turnover rate and
enhance the morale.
Job design Increase the productivity
Enhance the quality of work
(Bratton. and Gold, 2012).
Less supervision required
Easy hiring
Less production time
Training Employees become efficient.
Increases the skills and
knowledge.
Increased productivity
High morale
Economy of operations.

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Help in ignoring the mistakes
(Bratton. and Gold, 2012).
Performance management Clarity in roles and
responsibilities
Opportunities in developing new
skills.
Decrease mistakes or errors.
Increased productivity
Cost saving
P4 Effectiveness of different HRM practices
HRM practices in Aldi helps in managing the good and effective relationships with the other
staff members. It helps in increasing the profitability and productivity of the business. Different
HRM practices in Aldi include job analysis, recruitment, job design, and training and
performance management. Apart from this, it includes rewards and recognition system as it helps
in improving the motivation level of staff members. If Aldi has the effective HRM practices,
then it assists in decreasing the turnover rates of employees. The employee turnover assists in
hampering the performance of organization (Basarab Sr. and Root, 2012).
The above describe HRM practices helps in decreasing the employee turnover as well as assists
in maintaining effective performance. If a staff member leaves the Aldi, then company lose the
skilled employees and this profitability hampered. To retain the employees, company offers the
flexibility to satisfy the employees. Thus, the effectiveness of HRM practices of Aldi aid in
enhancing the profits along with the productivity level.
M3 Different methods used in HRM practices
As stated by Elnaga and Imran (2013), it has been examined that there are different methods
which are utilized by Aldi in HRM practices includes offering security to the staff members,
hiring the right people, training and development, job analysis, and self-managed teams. Training

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is necessary for the staff members of Aldi because it helps them in dealing with the issues and
accordingly they can accomplish the targets and it will help Aldi in attaining their objectives.
Aldi also offer the flexibility to staff members as it help in creating effective bond and manage
the time schedule (Root, 2012).
For example, as a large grocery store, Aldi HRM practices adopt the external sources of
recruitment and selection. This will helps in hiring the innovative and creative staff members.
Thus, HRM at an Aldi will provide effective contribution in the development of a brand name.
LO3 Evaluation of internal and external factors affecting to HRM decision –making
P5 Importance of employee relations in context of affecting HRM
The employee relations are very important for the Aldi business as employee relations are crucial
in context of affecting HRM decision. The decisions of organization are affected due to the
acceptance or rejection views of employees. Additionally, the cooperation in between the
decision of management and employees leads to the increased performance of organization.
Additionally, healthier positive relations are significant to drive satisfaction at the workplace
which also directly linked to the increased productivity of workforce (Shields et. al., 2015).
Further, the employee relations can also be effective in context of resolving the conflicts in
between the employees which will create a positive environment. On the other hand, if the
employee relations are not good than the resistance might occur while implementing a change
and decision can be influenced in adverse manner. Overall, it can also be stated that the mutual
relations with employees will also be supportive to increase the chances for attaining the centric
goals of organization (Storey, 2014).

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P6 Determination of key elements of employee legislation and its impact on HRM decision
– making
The employment legislations are vital aspect for the business as these are concerned about the
governing of employees at workplace and apply the rules and regulations over the working
people. The employee legislations influence the employer and employees in significant manner.
These employee legislations are valuable to protect the employees against the policies of
organization and legislations defend the interest of employees (Hood et. al. 2016). Major
employee legislations in UK are as follows
Equality act 2010
This act is concerned with the assurance of equal opportunities to all the employees in order to
protect the employees from discrimination in terms of salary, or work experience. Aldi follow
the rules and regulations otherwise, regulatory bodies can terminate the business operations.
Employee protection act 1978
This act is related to the protection of information of employees such as salary, working hours
and so on. Aldi offers the effective salary structure to employees otherwise, Aldi declares the
company under breach of law (Hood et. al. 2016).
Health and Safety at Work 1974
The HR manager of the Aldi needs to manage the effective health of staff members by offering
the effective work environment as well as appropriate opportunities. This helps in managing
effective employee relations.
There are different things which need to maintain by Aldi under the Health and Safety at Work
Act, 1974 includes:
 Aldi needs to manage their operational system along with the appropriate working environment.