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

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Human Resource Management
ALDI

Contents
INTRODUCTION.....................................................................................................................................0
1COMPANY OVERVIEW.....................................................................................................................0
2 PURPOSE OF THE HR FUNCTION AND KEY ROLES AND RESPONSIBILITIES OF HR...........................0
3 ASSESSMENT OF APPROACHES AND EVALUATION OF STRENGTHS AND WEAKNESSES OF
DIFFERENT APPROACHES TO RECRUITMENT AND SELECTION WITH THE HELP OF EXAMPLE...........3
4 ASSESSMENT OF APPROACHES TO WORKFORCE TO PLANNING, RECRUITMENT AND SELECTION.5
5 ANALYSIS OF INTERNAL AND EXTERNAL FACTORS THAT AFFECT HUMAN RESOURCE
MANAGEMENT DECISION-MAKING...................................................................................................6
6 EVALUATION OF EMPLOYEE RELATIONS AND THE APPLICATION OF HRM PRACTICES.................10
7 APPLICATION OF HRM PRACTICES IN A WORK-RELATED CONTEXT, USING SPECIFIC EXAMPLES. 15
CONCLUSION.......................................................................................................................................16
REFERENCES..........................................................................................................................................0

INTRODUCTION
Human resource is the most important asset to an organization. Successful management of
human resource is a very challenging task. The competitive business environment has
created a scarcity of talented employees. In order to retain them for a longer period, the
organizations must ensure that they adopt effective human resource management policy.
The HRM department plays a very vital role in an organization. As stated earlier the HR
carries out various functions such as the recruitment, selection, performance management,
planning, controlling etc. There are various different benefits of HRM. It is beneficial for
both the employee and employers. Organizations should make sure that they adopt
effective HRM practices within their organization. The main aim of this report is to
understand various functions of HRM within ALDI.

1COMPANY OVERVIEW
ALDI Group is a German food retail company. The company was founded by two brothers
Theo and Karl Albrecht. Aldi is one of the top grocery and food retail chain. The company
holds the top position in the European food retail industry. Aldi was established in 1913.
Since its inception, the company has grown to a big global brand. Generally, the company
use approach which is known as the limited assortment stores or hard discounter. The
company use a scanty selection approach to its product selection. Usually, the company
stores are small as compared to other brands. ALDI has successfully expanded to Global
markets. From its inception in 1913, the company gradually expanded its business into
European countries. With 260 stores and sales of more than 1 billion, the company was very
successful in Belgium. During the early 1990s, the company was able to gain significant
share in the Netherlands. The company set up 130 stores in Austria and another 110 stores
in Denmark. By the 1980s the company was able to gain significant market share in the
retail and grocery business. During 1970 and 1980 the company started its international
expansion plan. Initially, the company attempted to launch its business in the US, UK and
France.

2 PURPOSE OF THE HR FUNCTION AND KEY ROLES AND RESPONSIBILITIES
OF HR
MEANING OF HRM
Human resource management refers to the area of the business that helps the organization
to recruit, deploy and manage the workforce of the organization.
FUNCTIONS OF HRM
RECRUITMENT-This is one of the prior function of HRM. This refers to the process of
searching and finding the appropriate candidate for the specific job it can be from outside
the organization or within the organization (Bratton and Gold, 2017).
SELECTION-This is a series or process of selecting the right kind of candidate in order to fill
different positions in the organization. This is considered a negative process because it
involves rejecting a candidate who is not suitable for the job (Armstrong, et al, 2016).
RECRUIT
MENT
SELECTIO
N
TRAINING
AND
DEVELOP
MENT
REMUNER
ATION
POLICY
FORMULA
TION

TRAINING AND DEVELOPMENT-This is the most important function of HRM. After selecting
the right candidate for a particular job the next is to provide the appropriate training in
order to make them able to perform a job inadequate manner (Cohen, 2017).
ROLES AND RESPONSIBILITIES OF HR DEPARTMENT
Roles
To conduct an induction program in order to make employees familiar with the
environment of an organization.
To evaluate the performance of employees on the basis of the expected level and actual
level performance for this purpose HR department have to develop a performance appraisal
system.
Forecasting the labour requirement of the organization and managing employees in the
situation of surplus and deficit.
Motivate employees for doing their job on time and in an accurate manner.
Manage complaints of employees and provide a relevant solution to the problem of
employees (Sherrie Scott, 2019).
Responsibilities
The HR department is responsible to select right kind of people for the organization and it is
very important to select right kind of candidate for a right kind of job because people are
the real asset of the organization (Audra Bianca, 2019).
ROLE AND RESPONSIBILITIES OF EACH FUNCTION
RECRUITMENT AND SELECTION-Role of this function are to find out employee surplus and
deficit in ALDI and then fulfil the hiring requirement by selecting the right kind of candidate.
TRAINING AND DEVELOPMENT-Roles and responsibility of this function is to enhance and
improve the productivity and performance of an employee by providing adequate training.
REMUNERATION-This function of HRM responsible for providing right pay to employees
according to their designation and work.

POLICY FORMULATION-This is responsible for making appropriate policies, rules and
regulation that ensures discipline in the organization.
HRM FUNCTIONS PLAY IMPORTANT ROLE TO ENHANCE SKILL AND TALENT IN THE
COMPANY TO ACHIEVE OBJECTIVE OF COMPANY
HRM functions explained above and these functions help an organization to hire candidates
those are fit for the job, the functions of HRM also include providing appropriate training to
employees this help employees of the organization to develop their skills and give an
opportunity to grow within the organization. When employees perform very well then to
motivate them by providing various types of rewards and awards is also an HRM function.
OBJECTIVE OF ALDI AND HOW THESE FUNCTIONS HELP TO ACHIEVE IT
OBJECTIVE OF ALDI-
HRM functions help ALDI to achieve these objectives by formulating such policies for
employees, which help to create flexible working hours and to develop an environment at
the workplace that encourages employees to do their best. The free environment allows
employees to think innovative and creative that will help the organization to create more
best quality products with minimum price and this, in turn, helps the organization to achieve
its objective of making customer delight and satisfied (ALDI, 2019).
3 ASSESSMENT OF APPROACHES AND EVALUATION OF STRENGTHS AND
WEAKNESSES OF DIFFERENT APPROACHES TO RECRUITMENT AND
SELECTION WITH THE HELP OF EXAMPLE
Planning-In HRM planning refers to developing programs for personnel that includes finding
out the requirement of labour for the organization, Planning requirement of the job,
description of the job and finding the source of recruitment.
Recruitment and selection-This enable ALDI to find out candidate for the position and
choose the right candidate for the required position.

Development and training-This help employees of ALDI to improve their abilities and
enhance performance and productivity. This also helps to improve satisfaction and morale
of the employee.
Performance management-Evaluation of employees of the organization will be on the basis
of performance. Performance management is a continuous process between the supervisor
and employee (Armstrong, et al, 2016).
Reward system-It refers to the set of standards, procedures and rules that are followed to
provide compensation and benefits to an employee of the organization. It may consist of
financial and non-financial components/rewards.
IMPORTANCE
All above-mentioned areas are important to the organization because it helps to identify the
hiring requirement of the ALDI. Enables the ALDI to search and select an appropriate and
deserving candidate for a job. Performance management helps ALDI to achieve a strategic
objective. All these functions help the organization to improve performance and
effectiveness.
STRENGTH AND WEAKNESS OF APPROACH INVOLVED IN RECRUITMENT AND SELECTION
There are different approaches used by ALDI for recruitment and selection
PRE-HIRE TEST-HR department of ALDI uses pre-hire test to find basic skills before making a
commitment to the candidate. This help to know technical knowledge of candidate but in
this employer of ALDI not able to know the communication of a candidate (Dany and Torchy,
2017).
INTERVIEW-ALDI implements this approach to recruit and select a candidate for a job. This
means a face-to-face meeting with the candidate to know about his/her competences and
ability and it also helps to know how much a candidate effective to communicate (Perera,
2019).
GROUP DISCUSSION-This is a method in which there are a group of 8-15 people and
evaluator give them a topic for a discussion all the candidate has to discuss a topic and talk
relevant about it (Dany and Torchy, 2017).

4 ASSESSMENT OF APPROACHES TO WORKFORCE TO PLANNING,
RECRUITMENT AND SELECTION
EMPLOYEE RELATIONSHIP-It refers to the efforts of the organization to maintain and
manage the relationship between employers and employees. A good employee relationship
leads the ALDI towards consistent and fair treatment to all employees this makes the
employee more committed towards their work and helps to create loyal employees for
ALDI.
EMPLOYEE ENGAGEMENT-This refers to the practice of HRM that enhance and increase
productivity across all levels of the organization. It has an impact on employee retention and
wellbeing (Bailey, et al, 2017).
FLEXIBILITY AT WORK-It means ability and willingness of employees to respond quickly
towards changing circumstances and situation at the workplace.
APPROACH TO ACHIEVE EMPLOYEE ENGAGEMENT, EMPLOYEE RELATIONSHIP AND
FLEXIBILITY AT WORK IN ALDI
REWARDS AND RECOGNITION
This can be considered as one of the best approaches to achieve employee engagement in
the ALDI. Awarding employees of the organization for performing excellent, motivate them
to keep doing best work and ensure that employees are committed to the goal and
objective of the ALDI (Albrecht, et al, 2015).
ARTICULATES GOAL AND RESPONSIBILITY
This is very important to achieve employee engagement, employee relationship and
flexibility at work. This helps employees to know what they really have to do, what is their
job in the organization and for this specific goal they are making efforts (Albrecht, et al,
2015).
HUMAN RELATIONS APPROACH
This approach helps the management of the ALDI to understand the behaviour of
employees at work and then modifying and implementing such behaviours towards the

accomplishment of the objective of the organization. The nature of this approach is inter-
disciplinary (Albrecht, et al, 2015).
METHODS IN RELATION TO EMPLOYER ENGAGEMENT, EMPLOYER RELATIONSHIP AND
FLEXIBILITY MANAGEMENT IN ALD
GIRI APPROACH
This approach to employer relationship and engagement helps to settle disputes and
conflicts (Green, et al, 2015).
HOLD REGULAR SOCIAL GATHERING
This is one of the methods to achieve employer relation and engagement. This includes
weekly gathering with superiors, this helps the employer to know each other on a personal
level.
OPEN CULTURE
This helps to maintain flexible management at ALDI. The culture where everyone is free to
share their views and opinions. This also encourages innovation and creativity in the work.
5 ANALYSIS OF INTERNAL AND EXTERNAL FACTORS THAT AFFECT HUMAN
RESOURCE MANAGEMENT DECISION-MAKING
Legislation that affects HRM decision-making in the given scenario
There are various factors that can have an effect on the HRM practices. These factors can
be cauterized into internal and external factors.
Internal factors

Internal factors are referred to as the factors that have a direct influence on the
organization. These factors generally lie within organizations. Due to this the company have
greater control over internal factors. Through effective management, the company can
easily remove influence due to internal factors.
Figure 1: Internal Environment
Internal factors that can have a significant influence on HR practice within ALDI
Vision and Mission of the company: every organization have a specific mission which they
want to achieve. The mission statement defines the overall business objective of the
company. The mission statement defines why a business exists, how it is going to make
impact the purpose of its existence. The mission statement of ALDI includes simplicity,
responsibility and reliability. It is clear from the above discussion that the mission and vision
of the company can have a great impact on the working of the organization (Noe et al.,
2017).
Policies: The organization policies provide a guide to the working of an organization. Policies
are used to give direction through which the employee can achieve the organizational
objectives (Boxall and Purcell, 2011).
Major policies that have an impact on the HR
Policies that have an impact on the working of the HR are given below;
 Provide a safe working environment for the employees
 Encourage the employee to achieve their full potential

 Provide a competitive salary package that can encourage them to achieve a high
level of performance
 Provide a promotional opportunity to employees
Organizational culture: It is referred to the belief, values and working habits that are
present within an organization. Understanding the organization culture is very important to
form HR policies (Armstrong and Taylor, 2014).
Organizational structure: Basically there are two different types of organizational
structures, Tall and flat. The flat organizations follow the decentralization of decision-
making authority. The organizational structure can have a huge impact on HR practices.
External Factors:
Government regulations: The government all over the world nowadays have placed various
regulations on organizations. With these regulations, the organizations are constantly under
pressure.
PESTEL analysis of ALDI
Political: The rise in conflicts and political situation with many countries poses a threat to a
global organization. Since most of the store of ALDI is present in the USA and Europe. These
areas are free from conflicts hence the threat of conflicts are low on ALDI (Bratton and Gold,
2017).
Economical: Due to Brexit the prices in the UK have risen. This is in favour of ALDI. The
company is offering discounts. Support from discounters has helped the company is growing
at a faster rate. The rise in inflation has also worked in favour of the company as large
numbers of customers are looking to use discounts.
Social: The Company is regarded as one of the best-paying companies. Higher wages help in
improving the motivation level of employees. It also helps in improving the living standard
of employees. The company is aware of its social responsibility. The aim is to teach 1.2
million children about healthy eating habits (Huselid and Becker, 2011).
Technological: The supermarket organizations are adopting the latest technology for their
effective management and operations. Technology can help the company in effective