A Comprehensive Report on Human Resource Management at ALDI

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at ALDI, a major retail grocery chain. It begins by outlining the core functions of HRM, including recruitment, selection, training and development, and employee motivation, emphasizing their importance in achieving organizational objectives. The report then delves into the strengths and weaknesses of internal and external recruitment methods. Furthermore, it examines the benefits of effective HRM practices, highlighting their impact on employee motivation, productivity, and profitability. The report also explores the effectiveness of HRM practices in increasing productivity and profits at ALDI, supported by examples. It highlights the significance of good employee relations in influencing decision-making and the key elements of employment legislation, concluding with the application of HRM practices in a work-related context. The report underscores the importance of innovative employees, effective execution, effective rewards and constructive communication in ALDI's success.

Human Resource
Management

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Purpose and functions of Human Resource Management...................................................................3
P2 Strengths as well as weaknesses of recruitment & selection approach...............................................4
TASK............................................................................................................................................................5
P3 Benefits of Human Resource Management practices.........................................................................5
P4 Effectiveness of HRM practices in increasing productivity and profits of ALDI...............................6
TASK 3..........................................................................................................................................................7
P5 Importance of good employee relation in context of influencing decision making.............................7
P6 Key elements of employment legislation and its affect on decision making.......................................7
TASK 4..........................................................................................................................................................8
P7 Application of HRM practices in work related context......................................................................8
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................10

INTRODUCTION
Human Resource Management is a vital concept that is very useful in every organization.
it is a function that is basically concerned with recruiting and selecting skilled individual who is
able to achieve objectives of company (Armstrong and Taylor., 2014). Major responsibility of a
human resource manager is to assess present needs and anticipate future requirements. Once the
gap is identified, they recruit e candidates in order to fill this gap. Apart from this, it is also
necessary to assess training needs of manpower and an appropriate training programme is
designed to enhance potential of employees which enable them to fulfill objectives of company.
In the present report, chosen organization is ALDI which a retail grocery store of United
Kingdom. It is biggest discount supermarket chain which is headquartered in Essen, Germany.
This assignment includes various purposes, scope and functions related to human resource
management. It also defines about strengths and weaknesses of several approaches to recruitment
and selection. Along with this, benefits of HRM practices and its effectiveness in raising profit as
well as some employment legislations are defined. Apart from this, significance of employee
relation and application of human resource management practices are defined in this report.
TASK 1
P1 Purpose and functions of Human Resource Management
Human Resource Management includes various functions such as recruitment, selection,
employee relation, training and development, compensation, performance appraisal, wages and
salaries etc. All these functions are performed by manager in an organisation. This department
mainly emphasize on assessment of present needs and forecasting of future needs. Managers first
identify the gap between them and then feel this gap by hiring of candidates. Skills,
competencies and experience are the main basis on which individuals are selected and hired in
the organisation. Human Resource Management is a process in which manpower and resources
are coordinated by managers in order to attain objectives and targets of company. This is
achieved by utilisation of process, personnel and technology that’s mainly focus on internal part
of enterprise instead of external (Armstrong and Taylor., 2014). It creates a bridge among
management and employees.
There are many purposes of human resource management on which productivity and
profitability of company depends. Effective policies and strategies are designed and execute by
administrator which is necessary to to attain and retain work force. Workforce planning is very
necessary for every business concern as its growth and success highly rely on it. So, it is
important for managers to do proper planning for hiring employees in organisation. In ALDI,
major responsibility of human resource manager is to recruit employees who are capable to attain
objectives of company. They also design effective training program that helps manpower in their
future growth and development. This training program helps them in performing their duties in
well manner and attaining objectives of firm in an effective and efficient way.
Functions of Human Resource Management:

Recruitment and selection: It is a crucial function of every business enterprise to recruit
and hire skilled manpower in company so that objectives can be attained. It is very necessary for
managers of ALDI to carefully assess human resource need in an organisation and fulfill this by
recruiting right number of employees at right place on right time. Managers need to ensure that
proper planning should be done before Hiring employees. A criteria is set and on the basis of that
individual is selected and hired at weekend position of firm. It is necessary to select an
individual who have the ability to attain objectives and targets of company. Candidate must have
proper knowledge and required skills that I needed to perform job duties in an appropriate
manner (Berman and et. al., 2012).
Training and development: it is one of the crucial function of an organisation which
should be followed by every form in order to attain high growth and profits. It is very necessary
for manager of ALDI to determine training needs and design an effective training program that
assist employees in performing their job roles. Training and development increase the capability
of Manpower and motivate them. All this helps in performing their duties in well manner and
attain business objectives. An effective training session increase potential of employees and
provides them an opportunity to develop their skills and knowledge that is very necessary to
perform their duties well (Nickson, 2013). So it is very necessary to develop an effective training
program so that employees are able to work towards accomplishment of goals and objectives of
company.
Employee motivation program: Managers of ALDI needs to conduct various programs
and activities that increase motivation level of Manpower. Motivation level of workforce put
direct impact on performance of company. So it is required by managers to conduct various
activities on regular basis so that moral of employees keep high and there would encourage to
work towards attainment of predetermined goals and objectives of company.
P2 Strengths as well as weaknesses of recruitment & selection approach
Internal method: Under this approach, individuals are selected internally rather that
outside the organization. the employees who are already working in firm are selected on the basis
of their working and participation in activities of firm. There skills and competencies are an
important that is considered by manager of ALDI before recruit them internally (Boella and
Goss-Turner, 2013). Promotions and transfers are the main methods used in internal recruitment
of candidates.
Advantages Disadvantages
 It is a faster process & consumes less
cost.
 It enhances the motivation level of
workforce.
 This practice is less risky.
 Promotes engagement and increase
commitment of employees towards
organization.
 Increase conflicts among workforce.
 Restricts the enterance of fresh blood
within firm.
 Sometimes, person may not be
cherished or respected by other
employees.

 Reduce worker turnover as employees
feel happy and satisfied.
External source: In this, firm invite applications for interested candidates to hire an
individual on vacant position. Candidates are recruit from outside the firm and selection in done
on the basis of set criteria (Boselie, 2010).It ensures entry of fresh talent within firm and
promotes innovation and creativity among employees. By external recruitment, firm have a
choice to select candidates from large pool of talented people. This method of recruitment
provides firm an opportunity to gain competitive edge over competitors.
Advantages Disadvantages
 Employees are qualified more and are
highly skilled.
 Provides competitive edge to firm over
its competitors as fresh talent is entered
in the organisation.
 Promotes innovation &creativity.
 Encourage new talent.
 It is a more expansive procedure as it
consumes high cost.
 It is a time consuming process as more
time is wasted in this process.
 Lower down confidence and motivation
of existing employees.
 Promotes unhealthy work environment.
TASK 2
P3 Benefits of Human Resource Management practices
A human resource management practice provides benefit to both employer as well as
employee. Good employee relation influence performance and profitability of firm. In order to
ensure that operations of firm are performed in better manner, it is very necessary to maintain a
healthy relationship among management and employees. Human resource is considered as an
important part of every business enterprise that highly contributes in profitability and success of
company. It increase motivation level of workers and they are more engaged in activities of firm.
Increased involvement of Manpower ensures high growth of company (Boxall and Purcell,
2011).
Effective practices of HRM highly influence performance of workforce as well as
employees. Implementation of these assists in maintaining healthy work environment within
organization which in turn results in high employee morale. If morale of workforce is high, they
encourage working in more effective and efficient of manner and are able to easily accomplish
objectives of company. Human resource practices improve operations of firm and ensure high
profitability and productivity of company. it also improves coordination among workers and
enable them to work in team. Team working ensures timely completion of tasks and goals of
business enterprise in an effective and efficient way (Purce, 2014).

P4 Effectiveness of HRM practices in increasing productivity and profits of ALDI
The practices of Human Resource Management has always proves to be successful ALDI
in context of increasing companies productivity and growth. They have accomplished number of
milestones because of its effective HRM practices as it enable company to attain growth and
success within a short time frame. In addition to that the company also gain high competitive
advantage over its rivals because of the effectiveness of its different HRM practices. Discussed
below are the various perspectives whose involvement has influence ALDI's growth are as
follows:
Innovative and creative employees: ALDI is promoting healthy working environment that
motivates their employee to work incredibly hard so that business objective can be achieved
within stipulated time frame (Daley, 2012). Motivated workers yields high profitability ratio for
the organisation and also assist in capturing large market share as well. If workers are motivated
their productivity level also increases and they work more efficiently (Mok and et. al., 2013).
Effective execution: Both managers and leaders equally contributes towards achieving
business goals and target. The also actively participate in formulating company's objective,
goals, purpose etc. Of the workplace. The main role of ALDI's HR manager is to put right
employee on right place at right time as they are the one who generates maximum profit of the
company. It is important to aasign work or task to workers on the basis of their specialised skill
and knowledge so that they can complete it properly (Sparrow and et. al., 2016).
Effective rewards impact performance: Every employee works in an organisation for their
personal benefit i.e. Salary and incentives. Every company is liable to pay reward to its employee
on the basis of their work performance. There are two ways rewards can be given to workforce
one is monetary and other is non monetary. In monetary, rewards and benefits are measured in
terms of money such as higher pay, extra incentives etc. On the other hand non monetary factors
includes sense of recognition, sense of achievement and praise. Such types of strategies assit in
retaining workers for longer period. If employees are satisfied, then only they can work
dedicatedly towards achieving companies objective.
Team and individual goal with constructive communication: ALDI makes policies and
strategies for the employer and employee but it requires to be delivered among them through
effective communication channel. There are certain situation information is not correctly reached
among employee and employer because of ineffective communication channel. Sometimes due
to wrong selection of communication channel performance of employees hampers that ultimately
impact overall functionality of organization (Gospel and Sako, 2010). Therefore, every company
needs to have better and effective communication channel that directly connect management and

employees. Also the main responsibility of ALDI's HR manager listen what other worker is
saying then take a decision by providing best possible solution to the given problem.
TASK 3
P5 Importance of good employee relation in context of influencing decision making
Employees of ALDI shares special relationship with each other. This is mainly because
the companies promoting open and healthy working environment that that encourages workers to
work more effectively towards achieving organisational objectives. Their workers talk and
discuss with each other and take decision mutually or with the consent of every worker. This
makes them feel important and valued (Heizer, 2016). In addition to that they treat employee as
their colleagues not as their rivals. Ring rd significance of employee relation in ALDI:
Work become easy if it is shared among all workers equally: ALDI is promoting positive and
healthy working environment that reduces the workload of employees and makes them feel
motivated which reduces the chances of higher productivity and profitability. It is difficult for
one single person to achieve all task effectively. Therefore work must be divided among
employees on the basis of their skills and knowledge so that chances of completing it within
given time frame increases. Moreover if workers shares good rapport with other co-worker tasks
are become much more easier.
Discouraging conflict among workers: It has been believed that if employees shares good
relation with one another chances of conflict among them automatically reduces. Moreover they
start trusting each other blindly and and also help each other in their performance is well.
Loyalty of employee: With interactive working environment it become easier for business
entities to develop loyal workers who remain with the company for longer period. When working
environment is favourable, motivation of employees increases and they start performing
incredibly hard which ultimately helps the company as chances of their growth and development
increases promptly.
P6 Key elements of employment legislation and its affect on decision making
Employment: This legislation is related with hiring and selecting most talented and
skilled employer for the company who with their effectiveness and efficiency companies goal in
structured and thorough mannet. ALDI is liable to select desirable candidate on the basis of their
skills, knowledge, competency without discriminating among them on the basis of sex, gender,
race etc.
Wages and renumeration: Every employee works in an organisation so as to get higher pay and
benefits for their performance (Hoque, 2013). Every company is liable to pay minimum wages to
workers. ALDI is providing both monetary and non- monetary benefits that retain and motivated
them for longer period.
Equality: Under this legislation, ALDI is obliged to provide equal and fair opportunities to all its
employees so that all can get a chance of both personal and professional development. Moreover

equal treatment to all employees chance of feeling biasness among others workers that ultimatly
promotes healthy and open working environment in the company.
Working condition: At the time of recruitment, HR manager of every company is liable to
disclose all terms and condition regarding their working hours. They are also required to discuss
about rules and regulation regarding vacation, probation period, regulation for young
employment, special provision regarding maternity period of women etc.
Data protection: Employee of ALDI is not allowed to share companies confidential data with
third person does not belong to the company as well (Jiang and et. al., 2012). If in case they
found doing so he/she will have to bear the consequences for the same. It is illegal in the eyes of
law to share data or information of one company with worker of other rivarl company.
Health safety and welfare: HR manager also need to discuss regulation concerned with health
and safety of employees. For example: There should be one clinical room must available in
every company.
Position: The company also needs to define roles and responsibilities of selected candidate so
that they he can set his mind accordingly. By defining roles and responsibility to them makes
easier for them to perform and work incredibly hard achieving organisational objectives.
Above mentioned are all the legislations made by government which needs to be adhere
by managers of ALDI and implement those within organization so that employees stay motivated
and operations of firm can be performed in well manner and business objectives can be attain
(Marchington and et. al., 2016).
TASK 4
P7 Application of HRM practices in work related context
Person specification:
Job Title: Human Resource Manager
Location: United Kingdom
Job Responsibilities:
 Conduct various activities and programs within firm.
 Develop an instructional plan.
 Frame effective policies and strategies.
 Supervise workforce.
 Prepare salary slips.

 Performance appraisal.
Qualifications: MBA in related field, i.e., in Human Resource Management
Skills Required:
 Individual should have excellent communication skills.
 Have ability to work in intense deadline situation or under pressure.
Experience: Candidate is required to have experience of minimum 4 years.
Salary: 70,000$ - 80,500$
Job description:
Title: Human Resource Management
Pay Grade: 800000 - 950000
Reporting person: Senior Human Resource Manager
Duty hours: 8 hours
Shifts: Day
Working Days: 6 days
Job Summary: Develop plans and policies, compensation plans, conduct training sessions,
performance appraisal, coordinate with various other departments and various other functions.
Qualifications &skills required: MBA in Human resource department with excellent
communication skills in various languages.
Job responsibilities & duties:
 Coordinate with departments.
 Assess performance of employees on continuous basis.
 Develop & modify policies and strategies.
 Conduct various programs to motivate employees.

CONCLUSION
As per the above mentioned report, it has been concluded that HRM is an important
aspect of every business firm which contributes a lot in attaining its objectives. Human resource
manager performs various roles and duties in performing its activities. They analyse manpower
needs of firm and conduct recruitment process so that skilled employees can be hired. Various
strengths and weaknesses are associated with this which managers needs to be considered. They
should follow all the legislations made by government and implement them within firm so that
no discrimination can takes place. It is very necessary that a good relationship is maintained
between employer and employee so that operations of firm can be run smoothly.
REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Berman, E. M. and et. al., 2012. Human resource management in public service: Paradoxes,
processes, and problems. Sage.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Boselie, P., 2010. Strategic human resource management: A balanced approach. Tata McGraw-
Hill Education.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Daley, D. M., 2012. Strategic human resources management. Public Personnel
Management. pp.120-125.
Gospel, H. and Sako, M., 2010. The unbundling of corporate functions: the evolution of shared
services and outsourcing in human resource management. Industrial and Corporate Change.
19(5). pp.1367-1396.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Hoque, K., 2013. Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.

Jiang, K. and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of management
Journal. 55(6). pp.1264-1294.
Marchington and et. al., 2016. Human resource management at work. Kogan Page Publishers.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.