Human Resource Management Report: ALDI Company Practices Analysis

This report provides a comprehensive analysis of human resource management (HRM) practices within ALDI, a German-based discount supermarket chain. The report begins by defining HRM and outlining its core functions, such as recruitment, selection, training, and employee relations, with a focus on ALDI's approach. It explores the purpose and scope of HRM, highlighting the importance of training and development programs, including on-the-job training methods like coaching, mentoring, and job rotation. The report then delves into the strengths and weaknesses of internal and external recruitment processes, as well as the selection methods used by ALDI. Furthermore, the report examines the HRM practices followed by ALDI, including manpower planning and performance management systems. It also differentiates between soft and hard HRM approaches, emphasizing ALDI's adoption of a soft HRM approach. The analysis provides insights into how ALDI's HRM practices contribute to employee motivation, productivity, and overall organizational success, providing a detailed overview of the company's strategies for managing its workforce effectively.

Human resource management

INTRODUCTION
The human resource management is defined as the process of analysing the efficiency of
employees and increasing the performance of whole organisation. The various functions that are
included in HRM includes controlling, planning, selecting, giving orientation, providing training
and development and appraising performance of employees. The main aim of HRM department
is to motivate employees and increase the productivity of employees. In the following report, the
company which is considered is ALDI. This is a brand started by two German family owned
discount supermarket chains. It has around 10,000 stores in 20 countries. The owners of this
company are two brothers naming Karl and Theo Albrrecht and this was founded in the year
1946. The headquarters of the company are in Germany and products offered by this
organisation are beverage, food items, sanitary products and household essentials. The following
report will describe purpose and scope of HRM. Also this will include the strength and weakness
of recruitment and selection approaches. This report consists of HRM practices and employee
relation in ALDI.
TASK 1
P1
Human resource management is process for managing and handling the activities of
employees in achieving goals and objectives of the company. The different functions involved in
the human resource department is hiring, recruiting, motivating and providing trainings to
employees for better functioning of the company (Banfield, Kay,and Royles, 2018). It is
essential for the managers of ALDI to ensure that all needs and requirements of employees are
fulfilled by the company. Various trainings are given to employees of ALDI for improving their
performance and abilities. The main functions of HR management in ALDI are described below-
Training and development – There are various training and development programs that
are given to the workers of ALDI. Training and development sessions are given to employees for
improving their performance and knowledge. There are different types of trainings provided to
employees which includes on the job training and off the job training. On the job training is
defined as the training which is provided to employees while working in the organisation. The
main objective of such training is to provide skills while working in the company. There are
various ways of on the job training provided in ALDI -
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Coaching – This is defined as training which is given to employees by an experienced
member who is more skilled and have more knowledge about the operation and activities of the
company.
Mentoring – Each and every trainee is provided a mentor in team who helps in better
understanding of tasks and activities of the company.
Job rotation – This is helpful for employees as this helps in developing skills of
employees. This helps in growing skills and abilities of employees and making them competitive
in market.
Recruitment and selection – This is an important function of the human resource
management of the company. In context of ALDI, it is said that it has a good recruitment and
selection process by which this company is able to hire right candidates who can perform
effectively in the organisation. For any organisation it is very important to hire the best candidate
and hire him so that the productivity and efficiency of the company can be increased. The main
objective of ALDI's HR managers is to hire skilled and capable individuals who can attain goals
and objectives of the company in specified time frame (Bratton, and Gold, 2017). This company
selects the best way for recruitment and nowadays recruitment is done through online portals
and social media advertisements.
Purpose of HRM functions along with their roles and responsibilities Maintaining effective employee relations – HRM function has a major aim for
maintaining an effective relation among employees in the workplace. This will help in
maintaining a positive environment in the company and thus efficiency and productivity
of the customers will increase. The HR manager has the responsibility to increase
employee engagement and employee involvement. Other duties of a HR manager
includes building morale of employees and motivating them to work hard. Training and development – Training and development is provided to employees of the
company for making them work effectively in the company. These trainings will enhance
the skills and knowledge of employees. The main advantage of giving training and
development sessions in ALDI is that employees will become competitive in business
world. On the job training is given to employees of ALDI and they are made competitive.
Approaches of HRM
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Human resource department of the company makes several initiatives to increase the skill
and knowledge of existing employees and hiring talented individuals. It is essential for the
managers of ALDI to provide good support to its employees and help them in achieving the
goals and objectives of the company. The HR department is responsible for providing trainings
and motivational sessions that help in supporting and guiding employees how to work better and
increases performance. There are following two types of approaches followed by the HR
managers. They are listed below
Soft HRM in this kind of approach employees are treated as the main resource of the
organisation for sustaining competitive in business world Managers who follow this approach
always focus on the enhancing of employee's skills and abilities. I context of ALDI, all
employees are given support and guidance for doing well and achieving their targets in given
time.
Hard HRM this approach is one in which employees are treated as machinery or building.
In such cases employees are treated in such a way as they are not affected by any harsh treatment
(Brewster, 2017). Employees are made compatible by using such approach. In such approaches
there is a strong link between business plans and resources required for the company. ALDI does
not uses this kind of approach in their workplace.
A soft approach is used by managers and leaders of ALDI because this helps in removing
gap between employee and employer by increasing communication between the two.
Communication plays an important role in the organisation as it helps in better understanding of
goals and objectives to employees.
Purpose of HRM functions along with their roles and responsibilities Maintaining effective employee relations – HRM function has a major aim for
maintaining an effective relation among employees in the workplace. This will help in
maintaining a positive environment in the company and thus efficiency and productivity
of the customers will increase. The HR manager has the responsibility to increase
employee engagement and employee involvement. Other duties of a HR manager
includes building morale of employees and motivating them to work hard.
 Training and development – Training and development is provided to employees of the
company for making them work effectively in the company. These trainings will enhance
the skills and knowledge of employees. The main advantage of giving training and
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development sessions in ALDI is that employees will become competitive in business
world. On the job training is given to employees of ALDI and they are made competitive
.
P2
There are different ways by which the human resource managers of the company hire and
recruit employees of the company and this is the best way to increase the productivity of the
company (Friedman, 2017). If talented employees are working in the company then it is easy to
make them understand goals and objectives of the company and earn profits basically there are
two types of recruitment process followed by different companies i.e. internal recruitment and
external recruitment.
Internal recruitment process: The internal recruitment process is defined as the process
by which candidates are selected for job vacancies from within the organisation. This process is a
less expensive method for selecting employees for filling the job positions. This process is
beneficial as it helps the management of ALDI in managing and handling functions of the
company.
Strength Weaknesses
This method helps in motivating employees
because they are promoted to higher
designations.
Internal recruitment enhances the expectations
of employees from the organisation. A
company cannot promote all employees and
thus it has to promote the best individual who
can effectively work in the company.
Internal recruitment is helpful in saving time
and money that is required for filling the job
vacancy of the organisation. Otherwise in
external recruitment process a lot of money is
invested
When employees are promoted it demotivates
the employee who is not promoted in the
company. This also leads to conflicts and
fights.
External recruitment process: according to this process the employees are hired from
outside the organisation. In these cases new talents are hired from outside through colleges,
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recruiting companies, job portals, etc. There are strength and weaknesses of hiring employees
from outside the organisation and theye are discussed below –
Strength Weaknesses
This method is cost-effective. It is not beneficial for candidates who do not
have knowledge about computer.
Methods of selection in ALDI Company - HR managers of ALDI uses application form for
selecting the best candidate from the applicants and this will help in increasing the efficiency of
the company.
Strength Weaknesses
 Ease of comparison for employers.
 Standardized format
 Complete details of candidate can be
gathered without any misses.
 This method is time consuming.
 Details of candidates can be untrue.
 Some test may be complicated.
TASK 2
P3
ALDI is a supermarket chain and it is working at a big level. This company thinks that
when employees are provided good facilities then they will work more effectively. An
organisation can develop and grow if employees are working and putting their best potential for
achieving goals and objectives of the company. Some of the HR practices involved in ALDI are
listed below - Recruitment and selection – Recruitment and selection are both important functions of
the company. This is defined as the process by which applicants are selected for fulfilling
the job vacancy. ALDI has a well structured recruitment process for hiring and recruiting
employees. There is a five step recruitment process that is followed in this company for
hiring best talent across the world. The recruitment process analyses and evaluates people
5

effectively so that best candidates can be hired for company. This is best way for
recruiting employees so that they can achieve goals and objectives in less time.
 Training and development programs – The human resource management of the
company must provide training and development to its employees for increasing the
skills and abilities of them. This helps them in achieving goals and objectives of the
organization in less time. (Brewster, Brookes and Gollan, 2015). The human resource
management of ALDI is responsible for organising different training and development
programs for development and growth in career of employees of the company. Also
various motivational programs are introduced for employees in order to increase
productivity and efficiency of the company.
Benefits to employees Benefits to employers
 Training and development programs
helps in building skills of the employee
for betterment and making them
competitive in business environment.
 HRM practices helps the management
of ALDI in giving positive
environment while working.
 Employers are able to increase
efficiency and profits of ALDI.
 HRM practices help to retain
employees.
 Recruiting and selecting appropriate
candidate for ALDI help in achieving
organisational goals in specified time
frame.
P4
The various HRM practices followed in ALDI are mentioned below - Manpower planning- This is an important function of HRM and according to manpower
planning, an action plan is prepared. It includes good strategy and plans that helps in
making good decisions for the company. This helps in improving performance of
employees and workers who are working in the company.
 Performance management system- This is a process used by HR department that is
responsible for analysing performance and work of employees working in ALDI. The
HR management of ALDI is responsible for aligning the vision, mission and goals of the
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company with HR strategy. The performance management system evaluates the skill and
competencies of an individual and on this basis the HR managers provide effective
trainings and learning sessions for employees.
TASK 3
P5
Employee relation and engagement: a collaborative approach
According to this approach, employees are referred as the essential part for the success of
the company. If there is a good relation among workforce, then there will be less conflicts and
fights. This will increase employee engagement and involvement. In this way, employees work
with full dedication and support the company in increasing growth and development of the
company (Harrison, and Lock, 2017). In context of ALDI, the various approaches used for
achieving profits and goals provide benefits to the organisation's performance. The effectiveness
of approach is given below-
 ALDI can easily manage the employee relation and enhance bond and affection that is
shared among employees and employers. This reduced the conflicts and fights in the
organisation and increases the performance of the company.
 The employee relation approach helps ALDI in building relationship among employees
and collaborative and collective working of employees so that efficiency and
effectiveness of employees will increase.
Employees are valuable assets that a company has. These are individuals who work hard
for achieving the goals and objectives of the company. If there is a positive relation in the
workplace then there will be no conflicts and employees can work more efficiently. It is
important to keep employees of the company happy and satisfied so the HR managers of ALDI
provide compensations and incentives for increasing the satisfaction level of employees. The
benefits that good employee relation has on the decision making of ALDI is given below-
 If there is a good relationship among employees then they will be able to achieve the
goals and objectives of the company in specified time.
 A strong bond between employees and employers will help in reducing conflicts and
misunderstanding between workers who are working together.
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 A good employee relation helps workers to effectively work and achieve the assigned
targets in less time.
It is concluded that HR managers of the company will work upon building positive
relation among employees and avoiding fights and conflicts so that goals can be achieved in less
time. The human resource management should imply effective plans and policies in the
organisation so that workers can be given incentives and benefits for increasing profit and
productivity of the company.
P6
The employee legislations and relations is defined as the framework for go earning and
ruling different workers and staff people in the company. The managers and leaders of ALDA
follows several laws for protecting the rights of employees and giving them a positive
environment where they can work freely. There are various kinds of employment legislation
which are followed by different organisations. This is done for making the environment of
workplace such that all employees are treated equally and they are given equal benefits. Workers
which are working in an organisations should be given some benefits which are our under some
rules and regulations (Lu, K., Zhu, J. and Bao, H., 2015). Some of the rules and regulations
followed in ALDI are given below
Equality right act- this right was given in the year 2010 and according to this act all
employees must be treated equally in the company. This law says there should be no
discrimination of employees in the workplace and leaders have to manage and take care that such
activities must be stopped. In context of ALDI this rule is strictly followed and all employers and
employees are given equal treatment and they are not discriminated on the basis of gender ,age
or colour. All workers whether men or women must be treated equally and there should be no
bad treatment.
The Employment right Act 1993 and 2003- according to this law, employee should be
entitled to an salary slip and National Minimum Wage. All employees must be given an
agreement for working in the company and this agreement should include all protection
statements for employees that company is responsible for safety of employees.
Health and safety Act – According to this act it is the responsibility of employers to ensure
that employees are working in a good environment and they are not having any health related
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issue while working on the company. On context of ALDI the management of company ensures
that all safety measures are taken for improving the health of employees and that should not get
affected by equipments used in operating function of the company.
TASK 4
P7
Application of HRM practices in Marks and Spencer is mentioned beneath -
ALDI is a big firm that has around 10,000 stores in 20 countries. It is important for this
company to handle and manage all tasks and activities in an effective manner. A good HRM
helps the company in hiring new employees who are talented and skilled (Marchington, M. and
et. al., 2016). A good HRM practise will help in improving the performance of company by
using performance management system (PMS). The Application of this system for workforce
will help ALDI in achieving objectives of departments and aiding in delivering trainings and
coaching for building competency in staff members. Moreover, HRM practices help in good
decision making by the managers. The performance management system is needed by ALDI and
this will help in improving the performance of employees.
Job Description
Job Details
Post : HR manager
Company : ALDI
Job Purpose
The HR manager has the responsibility of making good employee relation. This individual has
to motivate employees by providing effective trainings and coaching to employees. The human
resource manager has to satisfy employees of the company and make them achieve their targets
in less time.
Roles & Responsibilities
 Maintaining current HR files and databases
 Updating and maintaining employee benefits, employment status, and similar records
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 Maintaining records related to grievances, performance reviews, and disciplinary
actions
Person Specification
Post: HR Consultant
Department: HR department
Key: This show that what is required when like an evidence:
(A): Application form, (I): Interview, (R): Role
Attributes Essential Desirable
Qualification & Experience  A post graduate or
diploma in
management
 3-4 years experience in
HR field
A good experience in human
resource and management
so that all tasks and
activities should be
managed effectively.
Skills or knowledge  Good communication
skills both verbal and
non verbal
 Good decision making
ability
Ability for adopting changes in
the management and
effectively handling all
employees.
Creation of Structured Interview – Interview is defined as a structural form which includes
certain questions that are asked to the applicant who come for interview. In ALDI an
interview is conducted for the HR manager and there are some questions which are asked to
applicants
 Tell me something about yourself?
 What are major responsibilities of HR Consultant?
 How you will develop positive relationship among employees at workplace.
 Skills you have that makes a better deserving candidate
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Job Offer Letter
Mr./Ms.LastName
Address
City, State Zip Code
Dear Mr./Ms. Last Name,
The ALDI organisation is happy to inform you that you are chosen for working with our
organisation. As per our requirements, you are the perfect candidate for doing operations for HR
consultant. This is to inform you that as discussed before your joining date will be July, 01. the
salary offered to you is $20,000. The benefits given to you during this job will be medical perks,
conveyance allowance, all kinds of leaves, etc. health insurance and ESIP will be provided by
the company.
If you are interested for the above offer. Kindly sign this letter and email it on [e-mail].
Sincerely,
First-name,Last-Name
Director,Human-Resources
ALDI
____________
I hereby accept the HR Consultant, HR department position.
_____________________________
Signature _____________________________
Date ----------------------------
Different companies are using latest technology and techniques in recruitment and
selection process such as advertising the job vacancies on social networking sites, web portals,
company website, etc. This helps the management of ALDI work efficiently and invite a lot of
people for the job vacancy. This helps company in inviting thousands of applicants at the same
time. It decreases the work load and increases efficiency. New skills are developed in individuals
as they have to compete with new and organised ways of selection.
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CONCLUSION
From the above report , it has been concluded that human resource management is
essential in formulating strategies and plans that will help in growth and development of the
company. The organisation must follow good HRM practices for better performance of the
company. Employee legislations are followed in organisation for providing various benefits to
employees who are working in the company. This will help in building morale and increasing the
motivation of employees. Such employees will help in increasing the productivity and efficinecy
of the company.
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