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

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Human Resources Management
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Table of Contents
INTRODUCTION........................................................................................................................3
LO1........................................................................................................................................... 4
PURPOSE AND FUNCTIONS OF HRM AT ALDI APPLICABLE TO WORKFORCE PLANNING......4
HRM FUNCTIONS PROVIDES TALENT AND SKILLS APPROPRIATE FOR ATTAINING BUSINESS
OBJECTIVES.......................................................................................................................... 6
STRENGTHS AND WEAKNESSES OF APPROACHES OF RECRUITMENT AND SELECTION........7
LO2......................................................................................................................................... 10
BENEFITS OF HRM PRACTICES AT ALDI FOR EMPLOYER AND EMPLOYEE..........................10
EFFECTIVENESS OF DIFFERENT HRM PRACTICES LEADING TO RISE IN PROFITABILITY AND
PRODUCTIVITY....................................................................................................................13
LO3......................................................................................................................................... 14
IMPORTANCE OF EMPLOYEE RELATIONS IN INFLUENCING THE HRM DECISION MAKING. 14
KEY ELEMENTS OF EMPLOYMENT LEGISLATION AND IMPACT ON DECISION MAKING AT
ALDI.................................................................................................................................... 17
LO4......................................................................................................................................... 19
APPLICATION OF HRM PRACTISES IN WORK RELATED CONTEXT.......................................19
CONCLUSION.......................................................................................................................... 23
REFERENCES........................................................................................................................... 24
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INTRODUCTION
For effective management of the resources and attaining the effectiveness in the retail
industry, human resource management should be ensured so as to enhance the customer
loyalty of the customers and ensure a strong brand name in the industry.
This assignment will focus on the effective management of the human resources in the retail
industry which will be undertaken over Aldi. For the same, the scope and purpose of HRM
will be disused and at Aldi different methods of the recruitment and selection process will
be gained insights about that will help in reflecting the strengths and weaknesses of the
same. This report will also reflect the factors that affect the business decisions making by
considering the internal as well as external factors affecting Aldi. At last, the application of
different HRM practices in work-related context will be reflected and its effectiveness will
also be evaluated.
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LO1
PURPOSE AND FUNCTIONS OF HRM AT ALDI APPLICABLE TO WORKFORCE
PLANNING
Human resource management
This term describes the management and development of the employees in the
organisation. Human resource management deals with the procurement, allocation and
efficient management of the human resources in the organisation so that their performance
can be improved to achieve organisational goals effectively and that also helps in achieving
competitive advantages (Bratton, 2017).
Three functions of HRM and roles and responsibilities of each function
There are many functions performed by the HRM to manage the human assets of the
organisation so that they can work efficiently to drive the ALDI organisation towards great
success.
Planning
Planning is the function in which the procurement and allocation of the resources are done
by the HRM. Identification of human resource need is necessary for the ALDI organisation to
fulfil various job requirements in the organisation (DeCenzo et al., 2016).
Roles and responsibility
 Identify the total vacant post available in the ALDI
 Determine the sources from where candidates can be recruited
 Outline a suitable recruitment and selection process to hire the candidates
Directing
it is the responsibility of the HRM to give direction and guidance to the employees in their
work. The setting of the performance standard and clear guidelines to perform various job
roles are determined by the HRM of ALDI (DeCenzo et al., 2016).
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Roles and responsibilities
 Day to day assistance to the employees in their work
 Lead the team to achieve specific goals of ALDI
 Support and direction to the employees to complete their task effectively
Controlling
Performance of the employees needs to examined and evaluated in order to improve their
performance level. Other activities of the employees are also controlled by this function of
HRM. Such as the behaviour of the people at the ALDI (DeCenzo et al., 2016)
Roles and responsibilities
 The setting of a performance standard to evaluate the performance of the
employees
 The setting of the target to meet with the desired standard
 Feedback and reward system to improve the performance of the employees
 Clear guidelines and code of conduct to control the activities of the people
Role and responsibilities of the HR department
 The HR department of ALDI is responsible for procurement of new talent in the
organisation
 The HR department of ALDI design and develop training and development programs
of its staff and workers
 Performance of the employees controlled by the HR unit of the ALDI
 Compensation plans and policies are decided by the HR team of the ALDI
 HR unit of the ALDI is responsible for providing job security and good employee
relations for its staff
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HRM FUNCTIONS PROVIDES TALENT AND SKILLS APPROPRIATE FOR
ATTAINING BUSINESS OBJECTIVES
Role of functions to enhance skills and talent in Aldi to attain business objectives
Training and development programs
The HR department of ALDI organizes training and development programs for the
employees to improve their skills and knowledge that results in developing the employees
to perform more effectively in the future (Noe et al., 2017).
Recruitment and selection
HRM designs efficient recruitment and selection process to hire new talent with new skills in
the organisation so that their utilization can help into the growth of the ALDI (Noe et al.,
2017).
Performance management system
HRM department of ALDI is managing the performance of the employees by an effective
control system. Employee’s performance is evaluated with the predetermined standard to
improve the performance level of the staff (Morgeson et al., 2019).
Business objectives of Aldi
 Better customer support
 Guidance and support to the customer in their shopping
 Deliver best customer service by resolving each query of the customers
 Increase the wealth and reputation of the ALDI by delivering the best shopping
experience in the store
Ways the HRM functions helps in attaining the above business objectives of Aldi
Training and development of the staff improve their knowledge and skills that help in
delivering the best customer services in the stores. Effective performance management
system determines performance standard for the staff which controls their performance to
do their best while delivering customer services. Recruitment and selection of best staff help
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in increasing goodwill and reputation of the ALDI. HRM functions of the ALDI helps in
achieving overall organisation goals effectively
STRENGTHS AND WEAKNESSES OF APPROACHES OF RECRUITMENT AND
SELECTION
WORKFORCE PLANNING
This mainly deals with the planning of human resources in the ALDI. Assessment of current
and future need of staff is done by the HR team of the ALDI and then they find out the
sources for selecting the best staff for the organisation. Workforce planning is the process of
preparing an outline for the total human resource requirement in the organisation to attain
the goals of ALDI.
RECRUITMENT AND SELECTION
In the recruitment, process candidates are invited to apply in the organisation to fulfil the
job positions and selection process helps in selecting the most suitable candidate for a
required job role. The HR team of the ALDI takes responsibility for conducting the
recruitment and selection process.
Approaches to recruitment and selection
There are basically two types of method or approaches are used to recruit and select the
employee to fulfil the vacant post.
Internal approaches
In this approach, candidates are recruited and selected from the organisation itself. The HR
team of the ALDI takes responsibility for analysing the internal sources of recruitment and
selecting the best one from them. For example promotion from a junior level position to
senior level position to fulfil the vacant post or transfer of an employee from one store to
another to fulfil the job requirement (Cascio, 2015).
 Transfer
 Employee referrals
 Promotion
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Strengths
 Cost effective method
 Reliable and trustable employees
 Already familiar with the company
policy and objectives
Weaknesses
 Lack of new talent in the organisation
 Absence of new skills and new
knowledge
 Not applicable for all job positions
External approaches
In this approach, candidates are selected from external sources because candidates are
available at the outside of the organisation. HR team identifies various external sources and
select the candidate to fulfil the job requirement (Cascio, 2015).
 Assessment Centres
 Interview method (telephonic, face to face, in-person)
 Online recruitment process
 College and university campus
 Recruitment Consultancies
Strengths
 The large qualified talent pool
 Skilled and knowledgeable staff
 New idea and innovation
Weakness
 Higher cost for recruitment
 Expensive training program
 Sometimes online recruitment
method is not reliable
TRAINING AND DEVELOPMENT
Training is provided to learn the job roles in the organisation. It is basically provided to the
new staff to familiarize them with the organisation and to make them understand their
duties and responsibilities. Development relates to developing new knowledge and skills to
improve the performance of the staff so that they can achieve their career goals (Cascio,
2015).
PERFORMANCE MANAGEMENT
In this approach, the employees are encouraged to increase their job involvement and
motivate them to work effectively. Performance standards help in assessing the
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performance of the staff and if they perform well reward is provided to them and if they do
not perform well than corrective action are taken by the HR team (Cascio, 2015).
REWARD SYSTEM
This system improves the satisfaction level of the employees because employees are
rewarded for their performance. Reward system in the ALDI organisation helps in motivating
the employees. Rewards are given in the monetary terms to the employees like bonuses,
incentives (Cascio, 2015).
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LO2
BENEFITS OF HRM PRACTICES AT ALDI FOR EMPLOYER AND EMPLOYEE
EMPLOYEE RELATIONSHIP
Employee relationship indicates the relationship between employees and employer it could
be formal or informal. Good employee relation motivates and encourages the employees to
work efficiently and it also results in a harmonious relationship between them. an effective
employee relation can be established by the equal and fair treatment of the staff and
workers (Griffin et al., 2015).
Approaches
 Fair treatment and justice on equality basis
 Social security and other benefits
 Use of good words and positive attitude towards the employees
EMPLOYEE ENGAGEMENT
This refers to the fact that how much the employees are involved in their work. Employee
engagement indicates that employees are committed and dedicated to the attainment of
business goals (Albrecht et al., 2015).
Approaches
 Motivation with the increment in salary and incentives
 Recognition and reward system
 Flexibility in the working pattern
Flexibility at the work
There should be flexibility in the work environment of an organisation so that employees
can feel satisfied and relaxed in the atmosphere they work. It is all about making suitable
working conditions for them so that employee can make the balance in the work and
personal life (Kossek and Lautsch, 2018)
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Approaches
 Good working conditions
 Adoption of changes in the working arrangements
Employer of the choice
The employer who can provide a flexible working environment, working culture with good
working conditions and other arrangements can be termed as the employer of the choice.
This type of employer focuses on the retention of the employees and attracts them to work
more productively (Tanwar and Kumar, 2019).
METHODS TO ATTAIN EFFECTIVE EMPLOYEE RELATIONSHIP, EMPLOYEE ENGAGEMENT
AND FLEXIBILITY AT WORK
Interpersonal communication with the staff
The employer of the ALDI communicates with its staff and workers on a daily basis just to
ensure that employees are doing well. They provide assistance in the work resolve their
query and try to make them feel comfortable using a positive attitude towards them (Griffin
et al., 2015).
Moral obligations
Equal treatment and justice are the top priority of the employer. They are required to treat
each and every employee equally which helps in establishing a good relationship with them
also improves their job involvement (Griffin et al., 2015).
Uncovering strengths
Employer of ALDI identifying the strengths of the staff and motivate them to use their
strength in their work so that they can work in a better way (Griffin et al., 2015).
Motivation
Motivation is the power that influences the employees to do their best in the work. ALDI
organisation is providing rewards and other incentives as well as social security to motivate
the employees (Griffin et al., 2015).
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