Management at Aldi: Challenges, Leadership, and Change Strategies

This report analyzes the management and leadership practices within Aldi, a prominent supermarket chain. It identifies key challenges faced by managers, including high staff turnover, the need for innovation, conflicts, time management issues, and effective hiring processes. The report then explores different leadership styles, such as autocratic, participative, and laissez-faire, and their respective impacts on employee motivation and organizational performance. Furthermore, the report delves into the skills and knowledge required for managers to effectively manage changes in the workplace, emphasizing the importance of technological advancements, communication skills, and problem-solving abilities. The study compares Aldi's performance with competitors like Nisa and Barretts, highlighting the influence of leadership styles on overall business outcomes, and the importance of adapting to market needs through workplace modifications.

MANAGEMENT AND
LEADERSHIP

Managers and leaders are essential part of business unit. They motivate employees, trine them,
review their performance and make them able to enhance their working performance. Managers
are responsible to manage the business practices whereas leaders are responsible to lead team in
the corporation (Boin, Stern and Sundelius, 2016). Present study is based on Aldi which is
popular in the supermarket industry. Report will discuss key challenges faced by managers in
the organization. Furthermore, it will explain different leadership styles. Assignment will
include skills and knowledge that are required in managers to manage changes effectively in the
workplace.
Key challenges faced by
managers in the organization
managers are the key players
in the organization, they
have to manage employees
and business activities so
that overall organizational
goal can be accomplished.
Key challenges that are faced by manager in the Aldi are as
following:
 High staff turnover: It is considered as one of the main
issue that is recently faced by the cited firm. As there are
many companies such as Tesco, ASDA etc. those which
are offering high salaries to skilled and experiences staff
members (Shin and et.al, 2015). In such condition people
are taking more interest to join such firm. This is the
major problem that is faced by the manager of entity
recently because now it has become difficult for them top
retain skilled labour in the workplace for longer duration.
 Bringing innovation in workplace: Aldi aims to expand its
business across the world. For that managers have to

Aldi is the medium size firm
that provides different kinds
of grocery products to the
consumers. In the recent
time due to high competition
company has to face huge
difficulty, that create
challenges for the managers
as well to manage operations
significantly (Pontin, Havard
and Snelling, 2016).
implement innovative ideas that can support cited firm in
enhancing its performance. It is difficult to create
innovative teams in the organization until unless workers
give their full support to the managers (Bolman and Deal,
2017).
 Conflicts: It is considered as one of the major issue in the
Aldi. As dispute between employees, between employer
and employee take place in the workplace. In such
condition it becomes very difficult for managers to
resolve these conflict situation and run operations
smoothly. In such condition workers do not perform their
duties well and manager fail to complete the task within
stipulated period of time.
 Time management: It is another major problem that is
faced by managers of Aldi (Boin, Stern and Sundelius,
2016). All employees have to perform various tasks and
managers have to look upon all these activities and have
to monitor their performance. Managers have to look at
the marketing team, have to communicate with logistic
department as well. In such condition time management
becomes the major challenge for management.
 Hiring: It is most important aspect of business unit,
company has to recruit skilled candidate in the workplace

those who have necessary skills to perform the given task
well (Shin and et.al, 2015). Recruiting candidates is the
big decision. Mangers of cited firm has to analyse skills
of applicant and their knowledge. On the bases of this,
managers of Aldi have to take decision. Any wrong
decision can create difficulty for the manger to run the
operations in smooth manner.

2. Leadership styles
Leadership refers to
the skills and ability of
leaders to manage people,
direct and motivate them so
that they can perform well
and can contribute well in
accomplishing goal of
business unit (10 Leadership
styles with examples, 2017).
All these kinds of leadership
are helpful to the managers
and leaders of the
organization in conducting
operations in smooth
manner. Implementation of
leadership style depends
upon the size and nature of
organization. On the bases of
these elements' management
has to adopt leadership style.
Different leadership styles are discussed as below:
Autocratic leadership
It is the type of style in which leaders possess all the
power to make any decisions. It is the type of style which
concentrates more on clear division between leaders and
followers. In this type of leadership approach workers do not get
power to involve in the decision making process and share their
views. They have to follow instruction of higher authorities. In
this, workers have to follow rules and regulation strictly
(Leadership Styles, 2017). This type of leadership style in
beneficial in the big size organization such as Tesco, Asda where
higher authorities have to make quick decisions. But such type of
leadership demotivate staff members because they have to work
under hard environment. This demoralise them and they think to
leave their job soon. Thus, autocratic leadership enhances
absenteeism and turn over of staff members.
Participative leadership
It is the type of leadership in which leaders involve
employees in decision making process. They provide clear
guidance to the workers sand provide them flexible working
environment so that people can perform their duties well (10
Leadership styles with examples, 2017). Such type of leadership
helps the leaders in bringing innovation in the workplace and
encouraging employees to perform well in organization. Aldi
follows participative leadership style in the workplace.
Employees feel that they are important and valuable to the
business unit thus, they retain in workplace for longer duration.
Participative leadership style boosts employees and they support
the higher authorities whenever any change occur in the
organization (Boin, Stern and Sundelius, 2016). But some times
flexible environment and high involvement affect efficient level

of employee's performance to great extent. They do not take their
jobs seriously that impact on overall performance of the firm.
Laissez- faire leadership
It is also known as delegative leadership style. In this,
leaders of the entity delegate responsibilities among all
employees. Leaders allow the leaders to make their own choice
of way of performing the task. This helps in bringing innovation
and creativity in the organization. This is the strategy that make
them person able to be self motivated (Shin and et.al, 2015). But
this leadership requires close supervision and careful monitoring
so that mistakes can be resolved on time.
Aldi follows participative leadership styles but as compare to
Aldi, Nisa retail firm is also a small size firm that implements
laissez fair leadership style. It is the biggest competitor of the
cited firm. Laissez faire leadership support the entity in
delegating responsibility of all workers as per their skills so that
they become able to perform well. That is why Nisa is
performing well in the market. But Aldi implements participative
leadership that creates some times difficulty in managing people
well because employees take their job fore-granted. Barretts (St
Neots) is another competitor of Aldi which adopts autocratic
leadership style. That helps the firm in minimizing wastage and
utilizing resources well.

3. Skills and knowledge used
in workplace to
manage changes
In the modern era
companies have to face huge
issues that creates difficulty
for the business unit to
sustain in the market for
longer duration. It is very
important for the firms that
to make changes in
workplace time to time and
manage these changes
effective so that entity can
sustain in the market for
longer duration. One of the
major challenge for the Aldi
is technological traducement
(Goetsch and Davis, 2014).
Technological up-gradation
create pressure on the cited
Furthermore, managers and leaders of Aldi are required to have
adequate knowledge about these technologies and market
condition. By this way they will be able to organize training
programs for employees. This will support entity in improving
skills of workers and making them conformable to work in
changed environment. Some times change creates conflicts
situation in workplace. For that managers and leaders of cited
firm are required to have problem solving skill. In such condition
individual is use their problem solving skills so that resistance of
workers can be managed significantly (Hornstein, 2015). If
individual fails to manage programs well then it may impact on
operational and practical practices of business unit. It may be
possible that people fail to perform their work effectively this
will impact on brand image of entity to great extent.
Changes are part of business, it may be operational
changes or technical changes. In order to manage the changes in
workplace managers ad leaders of Aldi need to have out centric
leadership skills (Hayes, 2014). Leaders must be able to lead
team well and making them comfortable. Leaders are required to
be out centric and individual must pay attention on developing
skills of individuals so that they can perform in the new
environment significantly. In addition, manager and leaders of
the cited firm need to have soft skill assessment capabilities.
Managers have to evaluate performance of each staff members in
organization. If employees of Aldi are not performing well then
accordingly to their weakness managers have to organize training
programs for them (Certo, 2015). Soft skill assessment skill assist
in brining innovative ideas in workplace so that individual feel
comfortable and understand the new ways to perform the work
significantly.
As compare to Aldi, Nisa and Barretts (St Neots) hires managers

firm that to implement these
advance technologies in the
workplace effectively. But as
it is operating at limited area
and having limited financial
resources thus, it is very
difficult for the firm to make
changes in its technologies
and implement the latest
technologies in workplace.
In such condition managers
and leaders of Aldi are
required to have good
communication skills so that
individual can make the
persons aware with the
importance of these changes
and how it can be beneficial
for them as well. In the
absence of good
communication skill
individual will not be able to
manage changes well
(Burke, 2017).
by looking at their skills and abilities. They look that managers
need to have problem solving skills so that individual can
manage critical situation well. Furthermore, competitors look at
the time management skill so that manager can manage multiple
task well.
Aldi 726 stores in
UK
.8% growth in
2017
revenues
£7.9billion
Nisa retail 545 stores 25% growth in
sales
£1.252 billion
Barretts 1300 stores 10% growth in
2017
£640m

4. Resistance to change
Each firm is required
to understand need of market
and have to make
modification in work based
practices accordingly. On
every change resistance
occur by employees. There
are many reasons of
resistance of changes in Aldi
(Bartunek and Woodman,
2015). These are as
following:
Lack of competency
When Aldi plans to
make changes in its technical
practices then people
resistant this change. It is
because they do not have
adequate skills to operate
new technologies. Thus, they
resistance this changes so
that they can perform their
duties from traditional
aspects (8 Critical Change
Management Models to
Evolve and Survive, 2017).
Fear to loss power
Managers or
supervisors those who have
good power of making
 Changing: It is the phase in which changes implemented
in the organization (Certo, 2015). At the time of
implementation many people struggle to work in new
environment. Proper communication, training, support
can make them comfortable to get adjusted in new
environment.
 Refreeze: It is the last phase in which manage of Aldi has
to stabilizing new state after making changes. It is very
important stage so that employees do not revet back to the
old process. Reward, recognition, positive culture can
make the person feel comfortable in modified
environment and they can perform their duties well (8
Critical Change Management Models to Evolve and
Survive, 2017).

 From the above report it can be concluded that managers
and leaders are key players of organization. They work to
overcome challenges face by entity and manage changes
in workplace so that entity can accomplish its goal
significantly. Participative leadership style support in
encouraging employees and making them comfortable in
workplace. This assist in brining innovation in

decision. Changes in
workplace create fear in the
mind of these people to loss
power. Thus, they resist to
change so that they can
become the powerful person
in organization.
Misunderstanding about
changes
One of the main
reason of resistance of
change in the Aldi is that
staff members do not have
clear vision and they do not
know benefits of making
modification in workplace.
They strongly believe that
traditional approaches are
the best way to complete any
task. Once they get to know
necessity and benefits of
alteration then they accept
changes and give their full
support to make changes in
workplace (Bartunek and
Woodman, 2015).
Companies those
which aim to enhance their
revenues and expand
business across the world.
They have to make changes
corporation. Managers and leaders are required to have
good communication, problem solving skill so that they
can manage changes in organization effectively.

in workplace as per the
market demand. In order to
manage modification
effectively managers have to
adopt Lewin's change
management model. Phases
of this model are as below
maintained: Unfreeze: It is the
first stage in which
Aldi has to realise
requirement of
changes and areas
where modification
required. In this way
managers have to
make interaction with
other employees and
individual have to
make them
understand the reason
of making changes in
workplace. Many
people resist changes
thus, managers have
to make them aware
with necessity of
modification.

REFERENCES
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