Human Resource Management Analysis: Aldi's Practices & Strategies

This report provides a comprehensive analysis of human resource management (HRM) practices within Aldi, a multinational supermarket chain. It begins with an introduction to HRM, outlining its core functions like recruitment, selection, and employee development, all tailored to Aldi's operational context. The report then delves into Task 1, exploring the purposes and functions of HRM, including recruitment, training, safety, compensation, employee relations, and compliance with employment laws. It evaluates the strengths and weaknesses of different recruitment and selection approaches, such as employment agencies and internal versus external recruitment strategies. Task 2 examines the benefits of specific HR practices, including recruitment, performance appraisals, employee welfare, training, and job design, for both employees and employers. The report discusses how these practices contribute to improved employee motivation, performance, and overall organizational success. The report further explores the importance of employee relations and the influence of decision-making in the workplace. The report concludes by summarizing the key findings and implications of HRM practices within Aldi, highlighting how these strategies contribute to the company's overall goals and objectives. This assignment demonstrates the application of HRM principles in a real-world business setting, providing insights into how Aldi manages its workforce to achieve efficiency and productivity.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................................................1
TASK 1...........................................................................................................................................................................1
P1...............................................................................................................................................................................1
P2...............................................................................................................................................................................2
TASK 2...........................................................................................................................................................................4
P3...............................................................................................................................................................................4
P4...............................................................................................................................................................................5
TASK 3...........................................................................................................................................................................6
P5...............................................................................................................................................................................6
P6...............................................................................................................................................................................8
TASK 4...........................................................................................................................................................................9
P7...............................................................................................................................................................................9
CONCLUSION.............................................................................................................................................................11
REFERENCES..............................................................................................................................................................12

INTRODUCTION
Human resource management refers to manage the people of the organisation in an
appropriate manner and it includes some of the main functions such as recruitment, selection and
it also involves to hire the people and develop them as per the requirement of the company.
Present report is based on the Aldi a supermarket chain that is headquartered at Germany and
their stores in 18 countries and engaged in grocery. This report covers the the main purpose and
functions of human resource management that is applicable to the planning of workforce and to
resourcing the management of Aldi(Mondy and Martocchio, 2016). Further it also covers the
various strengths and weaknesses of the approaches to the process of recruitment and selection
for the stated organisation. It also includes the various benefits of the different practices and
effectiveness of those in order to raise the profit and productivity of Aldi. There are some of the
importance of the employee relations for the influence of decision making at workplace.
Moreover, the elements of the employment legislation and the effect on he decision making of
the stated organisation. Thus, the use of application of the human resource management at
workplace(Hendry, 2012).
TASK 1
P1
There are some of the main functions and purpose of managing the human resources
which helps to manage the resourcing and workforce planning at Aldi. The structure and ability
in order to meet the requirement of the employees of the organisation as it is an important aspect.
It is essential for achieving the appropriate level of efficiency and the management of workforce
and the resources of he company(Armstrong and Taylor, 2014). It includes that there are some of
the major functions and purpose of human resource management which are described below:
Recruitment- The success of an organisation is based on the appropriate process of recruitment
and selection of employees at Aldi and to fill the positions of the company as per the knowledge
and skills of the candidates which is an important aspect of the recruitment. This plays an
essential role in order to develop the different employers at workplace. In context of Aldi, the
human resource development as they advertise the posting of job, source the candidates and
screening of the applicants and them they conduct preliminary interviews so that the final
decision is taken by the managers(Bratton and Gold, 2012).
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Training and Development- In order to make the employees more efficient at workplace they
provided training and development in which they learn new aspects related to the work. It helps
the employees of Aldi to develop the opportunities as they can achieve the goals and objectives
of the organisation(Brewster, Mayrhofer and Morley, 2016). There is requirement of leadership
training to the new employees so that it helps in supervising and managing the team members in
an organisation.
Safety- It is another main function of the human resource management in which safety of the
workforce under the Safety and Health Act of 1970 in which they have obligation to provide a
safe environment of working to employees. The main function of HR is to maintain the security
and safety of the employees.
compensation and Benefits-This function is managed by the HR department as it includes the
setting of the structure of compensation and to evaluate the pay practices of the
management(Storey, 2014). Payroll is a components of the compensation and benefits by Aldi
which is provided to the employees.
Employee Relations-The relations between the employees must be appropriate so that it helps in
achieving the goals and objectives in an effective and efficient manner at Aldi. Employee and
employer relation should be stronger so that it leads to the job satisfaction and it helps in
resolving the different issues at workplace which is essential for them. The proper relation
between the employees and the management of the organisation helps in providing appropriate
results and it also includes the agreements of the collective bargaining(Budhwar and Debrah,
2013).
Compliance- It is a critical function of HR as the compliance with the employment and the
labour law as it provides a proper practices of the employment at workplace. In context of Aldi,
the staff of HR must be aware about the employment laws such as Labour standards Act, an the
many other regulations for the employees(Hoque, 2013).
P2
Recruitment and selection is a process in which the department of the human resource
recruit the candidates who have desired skills and knowledge a it helps in selecting the
appropriate candidates in order to manage the work at Aldi. In order to evaluating the strengths
and weaknesses of the different approaches to the recruitment and selection at Aldi. There are
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different approaches to the process of the recruitment which includes the employment agencies
and the internal recruiters as there are some of the strengths and weaknesses which involves that
there are some of the advantages such as the agencies are expert and provide appropriate
guidance which also provide the feedbacks and they promote also(Buller and McEvoy, 2012).
There is requirement of getting a proper job for an individual as this is an appropriate manner to
build the experience. Further, it also includes that the employment agencies as they have proper
contact with the organisation which is helpful for them to provide recruitment. They are helpful
to the employers as well as to the other candidates and provide the benefits of this. However,
there are some of the weaknesses of this which involve that the agencies are not keeping the
contact as they are connected wit the client and the employer(Ulrich, 2013). The agencies
charges a high fees from the different candidates as they get paid from the employer for the
registration and the other deposits.
The approach of internal recruitment in which it provides opportunities for the
employment only inside the business. This approach offers the different changes in the position
of the job. In context of Aldi, the management of the organisation offers to the present
employees for the various vacancy as the retired employees and other people as a main source of
the internal recruitment. There is one of the main strengths of this approach is to take the quick
decisions by the direct appointment and different promotion by the management as per the
policies. It also helps to transfer the employees from one department to other with the help of job
rotation. It also helps in the reduction of the cost in the recruitment and ensure the comeback
investment in the training and development of the management of Aldi. On the other side the
weaknesses of the internal recruitment involves that it does not bring new skills and knowledge
and due to this there is reduction in the chances of innovative ideas(Bamberger, Biron and
Meshoulam, 2014).
In addition to this, external recruitment is other approach as it involves the new face of
the company. There is one main strength of the approach as it gives the broad experience and
wider choice of recruitment for the employees of Aldi. It also helps to increase the productivity
and the new ideas and concepts are beneficial for the company. On the other side, the
weaknesses of the approach as it includes that it is a long process and take lots of time from the
function of HRM to handle the different candidates in the process of recruitment. The people
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from the external recruitment as it s dynamic in the workforce and creates problem to the
existing employees of Aldi.
TASK 2
P3
There are some of the HR practices which provides benefits to the organisation and this
practices helps in order to deal with the different issues which arise in the organisation. In
context of Aldi, there are some of the key functions of the HR and the benefits of those practices
which are described below:
Recruitment and selection- This practice of HR helps to bring the efficient candidates for the
organisation and with the help of this the management can select the best employees for Aldi.
This provides benefits to the company for the improvement in the quality of and power to source
the employees and so that they can stand in the competition. This process helps to manage the
work at Aldi.
Performance appraisals- This is another practice of HR which helps in order to determine the
performance at an appropriate level and enhance it with the help of different aspects.
Performance appraisals are used to employees growth and to manage the goals as per the
requirement of the organisation. It also helps the managers so that they can use best strategies for
the employees and they perform in an appropriate way at Aldi(Ulrich, 2013).
Employee Welfare- This function of the HR provide the benefits to the employees and their
services and different facilities which are given to the employees for their performance a
workplace. The benefit of employee welfare as it helps to increase in the level of motivation of
them and enhancement in the performance. It also helps to the management of Aldi to provide
them appropriate environment for the work in the organisation.
Training and Development- This function of HR helps the employees to get the knowledge and
skills for performing their work effectively in the organisation. The programmes of training and
development are organised for the employers as well as the employees at workplace so that it
helps for them to learn new things and prepared themselves for the different role and
responsibilities. The benefits of the training and development helps to increase in the capacity for
adopting the new methods and technologies. It also helps to increase the morale and job
satisfaction to the employees.
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Job analysis and design- It is the process in order to describe the nature of job and the
requirements of human including experience of work and qualification for performing the job.
The benefit of this practice is helps to decide the benefits and compensation to the emplpoyees at
Aldi.
Benefits to Employees
 With the help of HR practices the employees gets benefits of training and development as
it helps in order to determine the proper methods and give them as per the requirements.
This helps in improving the knowledge and skills in the current positions of the
employees as it leads to increase in the value of the stated organisation(Brunckhorst,
2013).
 HR practices helps the employees in order to resolve the conflicts which occurs at Aldi.
The management and the employees of the company as they have to follow appropriate
policies and the procedure which provides the proper environment of working at the
organisation. It also helps in managing the employees of different department of
Aldi(Mitchell, 2013).
 The employees are provided an appropriate bonus which is based on the performance and
it shows that their performance is evaluated by the department of human resources. In
order to reward the employees it leads to encourage them for performing in a better
manner and it also brings competition among the other employees of the company(Smith,
2014).
 With the help of HR practices it gives the employees proper compensation and benefits
which is helpful to motivate them towards the work in the organisation and it is to be
done on the basis of the work of employees(Kerzner, 2013). HR practices gives information regarding any aspects as it is a responsibility to convey
all type of information to all the employees so that they can get benefits of the practices.
Benefits to employers
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 It includes that the employers also get some of the benefits of the benefits of the HR
practices which involves that the employers have the opportunities to to motivate the
employees regarding the work and enhance the performance of employees(Ford, 2014).
 With the help of HR practices ass they provide the increase in the access and benefits of
the flexibility through this they can recruit and retain the qualified employees in the
organisation. It helps the employers to increase in the productivity of their employees
which is essential at workplace(Salvendy, 2012).
 The employers of the company are able to make and develop the effective plans and
provide it to the employees such as pension scheme and other benefits which are given to
the employees at Aldi.
 The employers have the power to give appropriate knowledge to their employees which
is required to them as well as beneficiary and which is helpful in order to get all the
information regarding any issues at workplace(Ward and Peppard, 2016).
P4
The practices of HR which are described above and their benefits to the employees of the
organisation. In context of this, the effectiveness of the practices includes that the practice of
recruitment and selection helps to identify the candidates who have the potential to work in the
organisation and select the efficient people for the workplace. Further, training and development
is also effective at workplace in order to provide knowledge and skills and learn new things for
adoption of the new responsibilities(Ward and Peppard, 2016). It also includes that the practice
of employee welfare and the effectiveness of this helps to motivate the employees for the
purpose of productivity. Moreover, the performance appraisals practices helps to provide the
appropriate work to the employees and it leads to identify the potential and enhancement in the
performance.
HRM practices plays an essential role in order to increase in the productivity of the
organisation and which can also influence the level of performance of the employees. The
managers are works as a source at Aldi and helps in improving profit and productivity and it
have also some of the different sources through which the company can enhance the profit as
which are described below:
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Encourage flexible schedule- Practices of human resource management includes to provide the
flexible working environment at workplace which is the major attraction for the employees at
Aldi. The department provides the flexibility which leads to the enhancement in the productivity
and profit of the enterprise(O'riordan, 2014). The employees get benefits of this flexibility as
they work in an appropriate manner. As the organisation have to retain their employees so that
flexibility helps to provide the work schedule, proper methods of accountability and the team
work. It is important for the employees to have a flexible environment at workplace.
Promote positive behaviour- With the help of appropriate HRM practices it creates a positive
environment at Aldi among the different employees as it provides a favourable advantages in
order to keep the employees happy and satisfied. It helps the employees of the organisation to
work in a positive manner which is important for the company(Mondy and Martocchio, 2016).
Motivating employees- In order to maximise the performance of employees so that the
employers must ensure and promote those managers who can handle the work in an effective
manner. The proper HRM practices are implemented by the managers and it helps the people of
the company as it have the positive impact on the management of the Aldi. The employees who
are work under the positive mangers as they are get motivated and so that perform in an
appropriate manner(Hendry, 2012).
Developing employees- With the help of HRM practices as it helps in order to encourage and
satisfy the employees so that they can contribute maximum of them to the company which leads
to enhance the skills and knowledge. Improvement in the employees provide a better
opportunities and it is positive effect by the practices of human resource management. In context
of Aldi, they also provided appropriate resources such as training to employees in order to
increase in the knowledge and skills(Armstrong and Taylor, 2014). To develop the employees of
Aldi in the appropriate manner so that it leads to the growth and development of the organisation
as well.
Incentive programmes- For achieving the goals and objectives of the company HRM plays an
important role which increases the productivity and profit of the organisation. There are some of
the initiatives taken by the department of HR as they make the proper plan for the incentives for
the employees who are performing as per the requirement of the organisation.
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Thus, these all are some of the factors which helps in evaluating the effectiveness of the
practices of the human resource management for increase in the profit and productivity of the
Aldi.
TASK 3
P5
Employee relations can be defined as the relationship between the employee and
employer in an organisation as the proper relation provides a fair and the equal treatment to all
the employees at workplace so that the are loyal towards their work. It plays an important role in
order to enhance the productivity of the organisation(Bratton and Gold, 2012). It is essential to
manage appropriate relations at workplace which provides the positive outcomes. There are
some of the importance of the employee relations which helps in taking proper decisions at
workplace which are described below:
 In context of Aldi, there are some of the issues for which an individual employee can not
take the decisions as it required a group of people so this can be done with the help of
different workers. The employees came up with the different ideas and opinion which
helps in taking decisions on the basis of goals and objectives of the company(Brewster,
Mayrhofer and Morley, 2016).
 With the help of share the information to the other people it becomes easy for them to
manage the activities of the organisation and it helps to increase in the level of
productivity. The different tasks are assigned to the various department of the company
as they have to perform in an appropriate manner within the time frame and this can be
done with the help of proper employee relations at Aldi.
 Healthy employee relations leads to he reduction in the conflicts and issues which are
created at workplace as it helps in managing the time which provides opportunities and to
enhance the performance of the employees(Budhwar and Debrah, 2013).
 With the help of proper employee relations, all the employees in the organisation are feel
motivated towards the work and it helps in order to enhance the level of performance at
Aldi. This helps in creating a appropriate environment of the organisation as they can
work positively with the motivation.
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 Employee relation helps in order to carry out and manage the relationship with the other
people of the organisation which leads to the appropriate outcomes so that it is beneficial
for the company they can take proper decisions at workplace. The decisions of the
organisation must be carry out in an effective manner and handle properly so that it leads
to increase in the productivity of the business.
 It is essential for the management of the Aldi to provide a comfortable and mainly
focuses on the areas of decision making with the help of relationship between the
employees at workplace. This helps in creating the positivity within the environment of
the business which is beneficial for the organisation(Buller and McEvoy, 2012).
 Thus, with the help of proper employee relation at workplace it provides a positive work
environment and helps to take the decisions of the company which is useful for the
management of the organisation. It highly motivate the employees and as they can work
in a friendly environment so this leads to proper approach to the organisation.
It can be stated that employee relations are very important in terms of decision making and long
terms success of companies such as Aldi. The term employee relation focuses on developing
strong and effective relationship between both employer and employees. This helps in carrying
out more appropriate and result oriented strategies and decisions which are beneficial for overall
success of the selected business enterprise. Apart from this, an employee relation is important in
decision making because it creates sense of satisfaction among workers by considering their
views and opinion in the process(Smith, 2014). Sometimes the decision related to strategies,
action plan and other related business practises gets influenced by employee relation and this
result in making the HRM practises of company more complex. The most important benefit
linked with employee relation is that it helps the selected company to develop more effective
strategies which can be used to gain competitive advantage over other players in the market.
P6
Employment legislation can be defined as that which provide the benefits with the
security and protection for the job of the employees towards the various malpractices of the
workplace. Being a employer at Aldi, as there is a contract which helps to protect the employees
and the organisation. There are some of the elements of the legislation of the employment with
the contract which are described below:
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Define the position- The contract of employment gives a potential to the employees with the
proper understanding of the requirement of job as it also involves the position name and the
duties which are essential. This contract also includes the place and hours of the employment
with the appropriate language as this can be done as an employer.
Performance-In order to review all the requirement of the performance which is considered as to
establish the skills and upgrade at the time of contract which includes the goals of production and
enhancement in the revenue which is needed. At the position of the sales base there is insertion
of the volume of sales and to recruit the new clients(Knowles, Holton and Swanson, 2014).
Compensation- There is proper negotiation of the salary with figures as it should be mentioned
in the contract and it also includes the basic wages with the payment method. It also involves the
payment of commission with the appropriate percentage and effect of termination on the pending
contracts. In the contract it must be clearly mentioned the main objectives of the incentive
programmes along with the retirement benefits which is provided by Aldi.
Length of agreement- At the time of preparing the contract it always includes the elements of
both the parties and the contract of employment so that the proper conditions which are
applicable to the employees of the organisation.
Benefits- This is another element of the employment legislation as it includes the different
benefits which are provided by the organisation. It covers the health and other insurances and it
also involves the benefits of premium in percentage which is payable to the employees at
workplace. The benefits also includes the different items such as sharing of profit, holidays and
the plan of retirement which is provided by the company(Bamberger, Biron and Meshoulam,
2014).
Therefore, this all are the elements of employment legislation which include in a contract
between the employee and an organisation such as Aldi. These all are helpful in order to protect
and secure the people who are working at stated organisation. With the help of contract it
provide appropriate security to the employees and so that it ensure the safety of their
job(Brunckhorst, 2013). It also involves all the aspects of the relationship at the employment
such as the regulation of the wages, compensation to the workers and the insurance of the
income of the retirement. This law also helps in order to protect the employees form the religious
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