Human Resource Management Report: ALDI Case Study on HRM Strategies

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within ALDI, a leading global grocery retailer. The report delves into various aspects of HRM, including workforce planning, recruitment, and selection methods (internal and external), and employee relations. It highlights the advantages and disadvantages of different recruitment approaches and the significance of employee relations and employment legislation in HRM decision-making. The report also assesses the efficacy of HRM practices in enhancing organizational productivity and profit, discussing employee motivation, communication, and the provision of fair remuneration. Furthermore, the report examines the benefits of HRM practices for both employers and employees, such as dispute resolution, effective strategies, employee safety, and training and development. Overall, this report provides a detailed overview of HRM strategies and their impact on ALDI's success, offering insights into the importance of strategic HRM for organizational growth and development.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Motives and tasks of human resource management which are applicable to workforce
planning and resourcing..............................................................................................................1
P2 Perspectives of recruitment and selection along with their advantages and disadvantages...3
TASK 2............................................................................................................................................5
P3 Advantages of Human resource management practices for employer as well as employees 5
P4 Efficacy of HRM practices in the terms of increasing organisational productivity and profit
.....................................................................................................................................................6
TASK 3............................................................................................................................................7
P5 Employee relations and its importance in HRM decision making........................................7
P6 Employment laws and its components which can impact HRM decision making................8
TASK 4............................................................................................................................................9
P7 Implications of human resource management practices within organization........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management can be defined as a systematic approach which helps in
managing industrial relations that can increase employee's skills in achieving competitive
advantage. It includes various employment rules, regulations, programs and practices so that
company can accomplish its desired goals and objectives. Human resources are the biggest
capital of business enterprise where HRM is its strategic partner which operates work related
activities and practices in a systematic manner. Due to globalisation, individuals and
corporations are facing many challenges (Romney and Steinbart, 2012). Without help of talented
workforce, no company can exist in the competitive market place. This project report is based on
ALDI which is known as the world's leading grocery retailers. Its is a large scale organization
and it have more than 7,000 stores in all over the world. In this report, different functions and
purposes of HRM has been explained. There are various approaches of recruitment and selection
which has been highlighted along with their advantages and disadvantages. Significance of
employee relations and employment legislations in HRM decision making has also been
evaluated.
TASK 1
P1. Purpose and functions of human resource management applicable to workforce planning and
resourcing
The main priority of CEOs and managers is to evaluate different human resource
strategies because without this they cannot achieve organizational goals and also cannot create
good working environment within work place. According to experts, HRM practices can be
called as high performance work place practices. In current scenario, business enterprises are
facing many difficulties because of increased national and international competition. In order to
enhance organisational efficiency, HR mangers should make effective and systematic strategies.
ALDI is world's leading retailer organization because its gives core attention to human resource
management (Leggat, Bartram and Stanton, 2011). There are various purposes of human
resource management which are follows as under: Employee motivation: This is the main motive of HRM. Human resource manager
motivates employees in right direction so that they will pay attention to organisational
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growth. Positive motivation can encourage workers to contribute their hard efforts in
overall development of ALDI. Employee relationship: For making good working environment within work place, HR
mangers should create positive relations with his employees. Positive relationship
between employer and employee can bring organizational success of ALDI. Defines policies and procedures: It is responsibility of HR people to make effective
strategies and policies for company and also define them to their employee so that they
will perform their duties and responsibilities to consider them.
 Communication: Human resource management work as mediator between employer and
employees. Board of directors makes various policies, rules, regulations and decisions
which are communicated by HRM to other staff members. In simple words, it
communicates with workers so that they can share their problems with HR managers. If
there will be good flow of communication then ALDI can enhance its profitability and
productivity.
Moreover, these are some major motives of human resource management of ALDI which
helps it in managing good relationships with its employees and customers. Apart from this, there
are some major functions of HRM which helps cited company in organisational growth and
development. Planning: The main role of HR manger is to make effective plans so that company can
achieve its desired goals and objectives in effective and systematic manner. Human
resource planning can help in optimum utilisation of resources and also it helps in
removing production wastage. Directing and organising: Human resource management divides people into different
group and allocate them authority so that they can perform their tasks in most effective
manner (Kohont and Brewster, 2014). In simple words, HR managers provides right
direction to workers so that they can produce required results. Also, it organise each and
every individual of company according to their authority and responsibilities. Provides fair remuneration: Human resource management always give their preference
to employees and their working conditions. So, it is responsibility of HR manager of
ALDI to provide positive working environment and fair remuneration to workers.
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 Training and development: Employees are considered as biggest capital of organization.
Without them no company can accomplish its organisational goals and objectives. So, it
is responsibility of HR department to provide required training to workers so that, they
can improve their skills and abilities. As, high skilled workers can lead ALDI to higher
level of success.
 Industrial relations: For better growth and development, it is very much important for
organization to make positive relation with their employees. Healthy relationship
between employer and employees can help in increasing profitability and productivity.
HR mangers of ALDI always gives importance to their workers because they consider
them most expensive assets of company.
Hence, these are some most important roles of human resource management which plays
an important role in ALDI's growth and development.
P2 Approaches of recruitment and selection along with their advantages and disadvantages
Recruitment can be defined as process through which business enterprise employ that
individual who have required skills and abilities to fulfil organisational goals and objectives. In
recruitment procedure, people organisation invites a huge number of applicants. On the other
side selection is that process which helps company is choosing best candidate for vacant
position. After recruitment and selection, manger provides training programs to selected
candidate so that they can perform their duties and responsibilities in better way. Process of
enlisting can be done either internally or externally. In simple words, there are two major
approaches of recruitment and selection which are follows as under:
Illustration 1: Sources of recruitment
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Source: Internal and external sources of recruitment, 2011.
Internal Recruitment: It can be defined as process which is used by organisation to recruit
people within work place. By using this recruitment method, ALDI can save its times as well as
available resources. In this, company fill vacancies by promoting, transferring and enriching
existing work force. Some of its advantages and disadvantages are given below:
 Advantages: Internal recruiting helps in saving time and additional cost of company. By
using this approach, ALDI can increase confidence level of existing work force (Padgett,
2016). In this organization is already aware about different skills and abilities of
employees.
 Disadvantages: The biggest advantage of this approach is that sometimes existing
employees do not like their job shifting within organisation.
External Recruitment: In this method, business enterprise recruit people from outside the
organisation. External recruitment involves various rounds of interview so that, company can get
right candidate. This approach provides a big pool of applicants. By using this technique, ALDI
can find and choose high qualifies and talented workers. There many strengths as well as
weaknesses of this approach which are follows as under: Advantages: By doing external recruitment ALDI can have a huge pool of applicants
which can help company in finding suitable candidate. Also, it provides fresh talent to
business organisation who can provide new and innovative ideas for organizational
growth.
 Disadvantages: The biggest weak point of this approach is that it is a time consuming
and expensive procedure of recruitment. Sometimes hired employee are incapable to fill
expectations of company (Doherty, Dickmann and Mills, 2011).
Hence, these are some the essential approaches of recruitment and selection by which
company can choose best candidate for their vacant position. ALDI have many stores in all over
the world and also it have a huge number of employees. So, it can go for internal recruiting,
through this it can select suitable person for vacant job position.
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TASK 2
P3 Advantages of human resource management practices for employer as well as employees
Human resource management helps business enterprise in making good relations with its
employees. Positive relationships within work place can help organisation in increasing its
profitability as well as productivity. HRM function of company helps in protecting and
promoting interest of workers. By performing human resource activities in effective manner,
ALDI can increase their market share and also can create good working environment within
work place (Long, Perumal and Ajagbe, 2012). HR manager implement various strategies and
polices through which business enterprise can organise its work force and resources in most
effective and systematic manner. Different practices of human resource management provides
various benefits to employer as well as employees. These are follows as under:
Employer benefits Dispute resolution: Human resource management implement various strategies and
policies in the favour of employer and employee so that chances of conflicts can be
minimised. This section help managers in resolving all the work related issues which can
arise industrial conflicts. Effective strategies and plans: Strategic human resource planning helps manger in
achieving organisational goals and objectives in systematic manner. Also, Different HR
plan helps in optimum utilisation of available resources. Provides welfare: By implementing different policies and strategies of HRM Business
organisation can increase its profitably, productivity, sales revenue and market share. Recruitment and selection: Human resource management provides different approaches
of recruitment and selection through which company can choose best candidates from
inside and outside the organisation. Managers of ALDI can use both methods of enlisting
and selection.
Employee benefits Employee safety: Human resource department provides appropriate guidance to
employee about their duties and responsibilities. For example if workers are engaged in
hazardous process then, HRM department have the responsibility to inform those
employees about their safety and security needs.
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 Compensation: Human resource management provides good compensation to their
employees as per their losses. Good compensation strategies can retain employee for long
time period within organisation (Jiang, Wang and Zhao, 2012).
 Training and development: The main function of HR manger is to identify employee
performance and then provide them training and development program to improve their
performance within organisation. Different training events helps employee in enhancing
their current skills and abilities so that they can achieve organizational results and also
can resolve their personal as well as professional problems.
Moreover, these are the aspects which highlights the benefits of human resource
management in the context of employee and employer. If the managers of ALDI will implement
HR strategies and policies effectively at workplace then it can satisfy its worker and also can
help business managers in achieving desired results.
P4. Efficacy of HRM practices in the terms of increasing organisational productivity and profit
In modern world, globalisation is influencing impact on business enterprises and its
individuals. To survive in competitive market place, it is very much important for ALDI to hire
high qualified staff so that organisational activities and practices can run in effective manner.
Also, talented staff members can help company in achieving competitive advantage. There are
several activities and practices of human resource management which are effective for ALDI in
their own ways. These are follows as under: Recruitment and Selection: The main function of human resource management is to
evaluate the need of human resources because they are considered as most expensive
capital of organization. Recruitment process can be done either internally or externally.
With the help of enlisting and selection, ALDI can get suitable staff members for vacant
job (Daley, 2012). To increase profit and productivity, it is very much important for cited
company to recruit high talented people. Performance management: After recruiting and selecting best candidate, HRM
department measure the performance of its human resources to determine that they are
capable or not to achieve organizational goals. By managing employee performance,
company can organise them as per the requirements of company. Performance
management is that managerial tool which helps business enterprise in evaluating
efficiency and effectiveness of its work force. This practice of HRM can provide
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appropriate information to top managers about human resources. This activity involves
standardisation of performance and employees have to manage their efficiency according
to predetermined standards. This can help in increasing organizational productivity
(Kehoe and Wright, 2013).
 Training and development: Human resource management evaluate the efficiency and
effectiveness of employee performance. If there is any problem in their performance then
HR manger can conduct training and development program to increase their skills,
abilities and performance (Absar, Nimalathasan and Mahmood, 2012). High skilled
employee can run organizational functions in most effective manner which can result in
high profitability and productivity.
Hence, these are some most important practices of human resource management which
helps ALDI in increasing its profitability as well as productivity. Without effective human
resource management activities no organization can lead to higher level of success.
TASK 3
P5. Employee relations and its importance in HRM decision making
The major function of human resource management is to make good relations between
employer and employee otherwise organizational cannot achieving its desired results. Industrial
relations helps in creating positive working environment which is highly important to increase
profitability and productivity of company. It is core responsibility of HR mangers to
communicate and motivate their human resources so that they will contribute more of business
growth and development (Bach and Kessler, 2011). While making important decisions HRM
department should consider the different interests of workers because they are the human capital
which can lead enterprise to high level of success. If there will be good relationships between
ALDI and its work force then it can achieve competitive advantage because satisfied workers run
business activities in most effective manner. Significance of industrial relations are discussed
below: Team Working: By making good relationship between employer and employee,
managers can make effective teams and also can create coordination between them. As,
satisfied workers like to work in groups and operate business activities in most effective
manner.
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 Increase in profitability and productivity: If there will be good industrial relations then
employer can employee can work mutually which can result in high profitability and
productivity. So, it can be said that Employee relations is the major aspect which can lead
ALDI to next level of success.
 Positive working environment: Good relationships between employer and employee can
help in promoting positive working environment where employee can feel themselves
free to work. For better growth and development, it is very much important for ALDI to
create good environment within work place (Chuang, Jackson and Jiang, 2016).
Hence, these are some most important points which represents the importance of
employee relations within HRM decision making. It is responsibility of HR manger of ALDI to
make their decisions according to the employee need and demands because, dissatisfaction of
workers can result in high financial loss.
P6. Employment laws and its components which can impact HRM decision making
In traditional factor system, employee were humiliated and exploited by their employers.
Top management used to underestimate the interests of their workers. But in modern world,
Globalisation and high market competition has changed the traditional scenario. In present time,
all organisation gives importance to their work force and also consider them as most expensive
capital. Legal authorities are also taking various actions so that interests of labour can be
protected and promoted (Li, Frenkel and Sanders, 2011). Government have made many
employment laws which must be followed by business organisation. Some legislations are
discussed below which are considered by ALDI. Employment rights act, 1996: This act is regulated by central government. The main
objective of this act is to promote and protect rights of employees. According to this,
organisations should consider and protect the worker rights. Violation of this act can
result in big financial loss for company. Sex discrimination act: This legislations helps in removing the discrimination of men
and women on the basis of their sex or material status. This act gives importance to
employee education, training and removing harassment. It also promotes the equality of
future opportunities for both men and women.
 Working time regulation, 1998: This legislation concerns about daily and weekly rest of
employees. According to this, worker should work not more than 48 hours per week, and
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company should provide them annual leaves of minimum 28 days including all private
and public holidays (Sherwood, 2012).
Moreover, all organisations are obliged to follow above mentioned employment
legislations. ALDI consider all these laws before making important decisions. All these
legislations are related with employee which influence impact on decision-making of HRM
department. In modern world, all enterprises implement their strategies and policies to consider
the interests and welfare of labours (Harris, 2011).
TASK 4
P7. Implications of human resource management practices within organization
Human resource management is core concept of all business organizations. It implements
various strategies and policies so that company can increase its profitability and productivity.
There are many practices of HRM which have a significant role in ALDI. These are follows as
under: Employee development: The main function of human resource management is to
evaluate employee performance and then provide them training and development
program so that, they can improve their performance within work place. For example if
any workers is feeling himself weak in operating business activities then company can
provide him training event in which he can improve his all weakness and can operate
organizational activities in effective manner. By providing training and development
program to workers, ALDI can improve their technical, managerial, communication and
corking skills (Smith and Lewis, 2011). Relationship building: The most important function of human resource management is to
make good relationship between employer and employees. In other words, ineffective
relationships can create problems between top and lower management. So to remove such
issues ALDI can take help of human resource management. HRM communicates betwixt
employer and employer so that it can make positive working environment within work
place.
 Performance management: It is very much important for cited firm to evaluate
employee performance. This task can be done only by taking help of human resource
management. HR manager use various techniques such as performance appraisal to
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determine current performance of worker. By evaluating this, company can identify need
of training and development (Wright and McMahan, 2011).
Hence, these are some most important practices of Human resource management which
helps ALDI in enhancing its growth and development. By taking help of HRM practices cited
company can motivate its employees in better way and also can manger their performance in
systematic manner.
In present time, Mangers of ALDI wants to make some new strategies so that they can
hire high talented people for vacant position. For getting qualified staff member first of all they
have to analysis and evaluate job to identify that what kind of employee they actually need. And
also determine that what will be the benefits of recruitment within work place. Once all the skills
and abilities has been discovered then HR team should promote job advertisement in favourable
locations. For getting better attention of applicants ALDI can give ads on Job portal and sites.
After getting qualified person, HR managers should conduct different rounds of interview so that
they can find suitable person for vacant job.
If company wants to hire someone new, then HR mangers should use this procedure.
After recruiting people, managers should provide them training and development programs so
that newly appointed employees can improve their working skills and abilities.
CONCLUSION
By evaluating this project report, it has been concluded that human resource management
is that function of company which helps in recognizing significance of workers as organizational
assets. For better growth and development of organization, it is very much important for
employees to have technical as well as interpersonal skills. With the help of them, they can
operate business activities and practices with advanced technology. Different skills and abilities
of workers can help company in increasing its economic values. Also, employee's skills helps in
making organisation more productive. This project report is based on ALDI which is
multinational retailer company. In this report purpose, scope, functions and importance of human
resource management has been evaluated which can help mentioned company in making better
decisions regarding its work force. Also, there are various employment legislations, internal and
external factors which can affect HRM decision making of cited organization.
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REFERENCES
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managed? Examining the roles of HRM systems, leadership, and tacit knowledge.
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Doherty, N., Dickmann, M. and Mills, T., 2011. Exploring the motives of company-backed and
self-initiated expatriates. The International Journal of Human Resource Management.
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organizational innovation? A study of Chinese firms. The International Journal of
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Daley, D.M., 2012. Strategic human resources management. Public Personnel Management,
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Harris, L.A., 2011. Legislation for participation: An overview of New Zealand's health and safety
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Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
Online
Internal and external sources of recruitment. 2011. [Online]. Availaible Through:
<http://kalyan-city.blogspot.in/2011/07/internal-and-external-sources-of.html>.
[Accessed on 23rd September 2017].
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