Strategic Human Resource Management at ALDI: A Comprehensive Report

This report provides a comprehensive analysis of the strategic human resource management (SHRM) practices at ALDI. It begins by identifying key current trends impacting HR, such as training and development, performance appraisal, global selection, sustainable development policies, and benefits and compensation. The report then delves into how both external and internal factors, including employee relations, legislation, compensation, and competition, influence ALDI's HR strategy. It explores the application of relevant theories and concepts, including universalistic, contingency, and configurational approaches to SHRM. Furthermore, the report examines appropriate change management models, such as the ADKAR model, to support HR strategy implementation. It also addresses the measures taken to monitor and measure HR policies and the effectiveness of HR management in achieving business objectives. The report concludes with an overview of the key findings and insights into ALDI's SHRM approach.

Strategic Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key current trends that can affect human resources .............................................................1
P2 Analyse how both external and internal factors influence HR strategy and practice in the
context of ALDI..........................................................................................................................3
TASK 2............................................................................................................................................4
P3 Application of relevant theories & concepts relating to growth & development of strategic
human resource management......................................................................................................4
TASK 3............................................................................................................................................5
P4 Appropriate change management models to support HR strategy.........................................5
TASK 4............................................................................................................................................7
P5 Measure taken to monitor and measure HR policies.............................................................7
P6 Effectiveness of HR management in achieving business objectives.....................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic human resource management is the management of all resources thigh creating
of various strategies (Analoui, 2017). Thus as a result they can easily enhance the services very
efficient and effectively. This also helps the firm in creating unique products and then it delivers
it to all customers in a unique and efficient manner. Thus as a result it leads to increasing in
customer satisfaction. Hence firm can maintain good and strong place in the market as well as in
minds of all users. Thus strategic human resource management can create different policies and
plans so that they can create unique position in the market. Thus as a result they can easily sell
various products in the market.
Assignment describers discuses about the Aldi firm which is a retail company. It was
found in U.K. Report describes about the external developments which can influence the HR
strategy. It further explains about the contemporary development and particular knowledge of
HR department. It also explains about the methods through which change management models
can easily support the HR strategy. It also explain about the contribution of HR department and
management so that performance can be improved and sustained. Through this performance of
HR department can easily be improved. Hence as a result they can easily maintain good and
strong position in the market as well as in minds of all users. Thus they can create different
image in the market. Hence it can also satisfy customers a lot.
TASK 1
P1 Key current trends that can affect human resources
Human resource department is one of the most important department which helps to
perform business objectives in effective way. As they have to contact with workers and this helps
to make achieve profits. There are possibilities that due to change in plans and policies workers
are not ready to work, in this case HR manager has to apply strategies through which they get
motivated and give their best. In older days, role of HR is not so significant but with the passage
of time, role of HR manager is increasing (BanfieldKay and Royles, 2018 ). This helps to
perform business operations in smooth and effective way. Some of the recent trends formed by
ALDI are as under-
Training and development- These days training is one factors which is mandatory for
company to perform business operations in effective and efficient way. There are possibilities

that due to alteration in actions company has to plan training program, so workers are able to
perform business operations a per market. After training, there are less chances of defectives and
product are competent to market. In ALDI training is most important component which helps
association to satisfy demand of customers. Managers of ALDI use sources of training which are
effective and fruitful for all workers.
Performance appraisal- Performance appraisal is recent these days. This is the source
which helps employees to give best. There are many employees in ALDI to motivate them,
managers analyse the performance and then promote them. Hence this gives them feel to give
best, so they get promoted (Beer,Boselie and Brewster,2015 ). As per demand of employees such
as financial or non financial benefits has to be considered. ALDI perform appraisal every half
yearly. This helps to reduce labour turnover and absenteeism in association. Performance
appraisal is not only beneficial for Employees but it also promotes brand name of ALDI in
industry.
Global selection- ALDI is the company which has global reach in industry. It is essential
that company has to make policies through which they can select candidates from various parts
of company. There is need of variety of candidates which help them to perform business
objectives in effective and efficient way. There are possibilities that due tom change in post
manager has to select candidate as per requirement. They can select candidate from distant
boundaries also. In ALDI, as there is difference in culture of various places, so they have to
select candidate from various sources. This helps them to make their organisation globally
reachable.
Sustainable development Policies- Sustainable development means development of all
over organisation. AS HR deals with workers working in society, so they have to perform
business policies in effective and efficient way. While taking use of policies which are effective
for growth of ALDI, HR manager has to analyse sources through which they can apply changes
properly. Sustainable development of organisation possible with joint efforts of employees and
employer (Bratton and Gold, 2017) . As manager has to motivate workers to attain best policies
which is efficient for achieving targets.
Benefits and compensation- There is requirement of some benefits to motivate workers.
This is not old in market but these days there is requirement of factors which are affecting
business in efficient and effective way. While talking about good quality product and services

manager has to select source which are competent for company. There is difference in demand of
employees,. So after analysing their demand manger has to select source through which they be
part of company for longer time. Benefits and compensation are important for achieving targets
in efficient way.
P2 Analyse how both external and internal factors influence HR strategy and practice in the
context of ALDI
External and internal factors are those which is affecting entire working of business.
Thus, in this situation it is the duty of HR manager of ALDI to identify modifications take place
in these factors which affect growth and productivity of business. So appropriate measures must
be taken for grabbing opportunities from external factors and reducing market risk. ALDI is the
retail sector organisation where large number of employees thus HR manager have to develop
such skills in personnel for facing challenges of rivalry. There are several internal and external
factors that influence HR practices and policies which is discussed below:-
 Employee Relation – For health and positive working environment there is requirement
of good employee relation. This is one of the necessary internal factors which is taken
care by HR manager of company it is their duty that they have to conduct entire operation
of business in such a way that it will assist in maintaining better employees relation. The
same also help in achieving team objectives along with goals of business also in effective
manner (Brewster,2017). If there is proper relation between everyone working in
business then owner of company run their business easily and smoothly.
 Legislation – This is external factor of business environment which can affect entire
working environment of company. Federal and state legislation is that which is fully
dictate that how long company can maintain their employees and personal data for better
results in future (Wehrmeyer, 2017). There are several laws given by government such
as minimum wages, health insurance profitability and accountability Act, Americans with
Disabilities Act which need to adhere by the HR manager of ALDI administration in
order to maintain the decorum and ethical practices in firms.
 Compensation – It is the amount which attract employees and motivate them to do work
in better manner and generate large amount of compensation. In the situation
unfavourable market condition when unemployment rate is high and more effectual

employees exist in such condition compensation is that which is provided to staff
member against multiple other company for recruiting personnel.
 Competition – retail sector is wide in nature thus it have large number of competition.
Increment in level of competition affect the entire ability of business at the time of
recruitment. Large scale organisations like ALDI is using several tools such as
advertisement and social sites for creating awareness in people related to vacant job
position (Taylor, Doherty, and McGraw, 2015) . Thus, for maintaining brand image and
reputation in market ALDI want active participation of their skilled employees. But is
some critical situation HR department have to focus on forming strong policies so they
can select such candidate who is able to understand current market trends as well provide
competitive edge over rivalry to company.
TASK 2
P3 Application of relevant theories & concepts relating to growth & development of strategic
human resource management
Strategic human resource management is the practice of developing, rewarding, attracting
and retaining personnel for the benefits of both staff member and company (Chadwick Super and
Kwon, 2015). HR division of ALDI which practice human resource management are not
working independently with silo. They are interacting with others also department of company
also for understanding their goals and combining organisations and enterprise goals together.
Primary way of dealing with SHRM are separated in three principle classification such as
universalistic, possibility and configurational. Thus, universalistic or best practices is the way of
dealing with HRM identifies with the view that there is an arrangement of best HRM hones and
their appropriation will produce positive results paying little respect to the conditions related to
the administration.
Universalistic Approach – This approach states “best practices” in relation to the wide
range of Human Resource issues. Major issues of HR such as recruitment and selection of
employees, training and development, motivation or encouragement is necessary for applicable
in every enterprise regardless of the nature of unique aspects that business may have. This

approach can be implemented by ALDI as selecting person through proper stages of recruitment
and selection. This helps to get most appropriate person for the job vacancy.
Contingency approach – Contingency or “best fit” approach is that which cannot assist
contradicting the nearness of all comprehensive solutions to Human Resource issues and stresses
the necessity for incorporation within HR strategies and an large variety of some other
authoritative arrangements (Chelladurai,and Kerwin,2017). There are many times where actions
can not predicted, so in this case HR manager of ALDI can use it. This assist in implementing
best approach for conducting operations at its best.
Configurational Approach – This approach to strategic human resource management
suggest that there are several configurations Of HR practices which go hand in hand with the
motive of improving business performance. The effectualness of HRM in increasing organisation
competitive advantages dependent on a set or bundle of practices rather than on any single
human resource policies and program. For instance: performance of workers is not up to the
mark at ALDI, so in this case with implementing configurational approach, managers are able to
motivate workforce to give best.
TASK 3
P4 Appropriate change management models to support HR strategy
Change management is important because it gives positive and negative both impact on
working of business. Thus, their proper management is important for minimising negative impact
and grabbing positive. There are mainly four types of change management model description of
all these are given below:-
ADKAR Model
This model in introduced for managing change in business enterprises which is mainly
focusing on the objectives (Debroux, 2017). According to ADKAR model organisation have
certain cumulative goals within the procedure of achieving the overall goal of alteration. For
implementing alteration in business main work is of HR division they adopt several tools and
techniques for achieving the objectives. Below mention every step of model naturally fit into the
typical activities which is related to the change management.

A Awareness Perceives the need for change
D Desire Partake and bolster the
modification
K Knowledge Know how to modify and
acknowledge and what change
will look like as distant as
abilities and practices.
A Ability Execute the alteration once in
a day.
R Reinforcement Support the change over the
long Haul
From the discussion it has been concluded that, ADKAR model of change management
suitable for organisation because before implementing changes there is requirement of awareness
related to the modification organisation is implementing. Then have to identify is it required or
not so that changes can be implemented as per requirement and will not affect company in
negative way.
KOTTER'S 8-STEP CHANGE MODEL
This change management model of Kotter was mainly introduced in 1996 after the
evaluation up of 100 changing organisation. Developer of the same is John Kotter and he proves
that major efforts of change unfortunately don't always have the required results (Guo, and Ariss
2015) . There are mainly 8 steps of this change management model description of all these are
given below:-
1. Create a sense of urgency - the first step is making employees aware about urgency and
requirement of change as well support are also created. This can be possible when
solution of the threats are taken in mind and discussion about these must be done.
2. Create a guiding Coalition – Group or team formation take place in this which delas
with change management. Main group of team member is to guide , arrange and convey
modification exercise over the entire association.

3. Create a vision for change – Modification must be line up with the vision of business
and it must be clear so that can be achieved by everyone within particular time period.
4. Communicate the vision – This is most important step of Kotters eight step model in
which new vision is communicated to every employees and HR manager can take
opinion and view of other staff member also related to vision.
5. Remove obstacles - Exclude hindrances such as wasteful processes and progressive
systems so organisation and volunteers can work with the flexibility to effect change.
6. Create short-term wins – Try to make short wins not to achieve desired things a once.
This need daily basis goals which will assist in accomplishing entire objective of business
(Shields and et. al., 2015) .
7. Consolidation improvements – Change management is slow procedure and it needs to
be declare in overall organisation culture. Quick wings are the starting of long term
achievement and after that there is requirement for keep looking on these for any
improvement (Renz and Herman, 2016) .
8. Anchor the changes – management of modification must be clear so that it can be
implemented in proper manner and assist in growth and development of business.
Thus, there is requirement to proper steps for implementing changes in the organisation
so that things can be managed in better manner without any miss-happening. Along with this,
these 8 steps assist in proper management of modifications.
LEWIN'S CHANGE MANAGEMENT MODEL
Lewin's change management model was developed in 1950 and it is totally depended on
three types of simple stages such as unfreeze, freeze and change. Description of all these are
given below:-
Unfreezing – First step state that company have to expect the changes and break down
their existing policies and strategies on which they are working.
Changing – After unfreezing, second step is to implement changes. So that further
policies and strategies form on the basis of this.
Refreezing – Last step is Refreeze when change take is shape and formation in the
business.
Although, before applying modification there is requirement of unlocking existing
policies or any strategies so that changes can be implemented in better manner. Then, after

applying it must be locked as well as discussed with everyone so that work will be done in
respective manner.
Lewis change management model is best for ALDI because this is the best way through
which change can be implemented to association. These days alterations in demand of consumers
are taking place frequently, so with implementing lewis Change management model, it is easy to
understand reason of change and implementing in best manner.
TASK 4
P5 Measure taken to monitor and measure HR policies
Human Resource department is that which managed entire working of company and
along with this play major encourage and motivate employees in doing their work in more
effective manner (Kaufman,2015) . While taking about the ALDI company, HRM perform their
work in such a way that organisation can achieve their pre determined goals and objective in
effective manner. HR manager give guidelines to personnel about rules and regulation of
company so that they can work as per the requirement of enterprise. It is important to measure
activities in effectual way, so that staff member get aware about their roles and responsibilities in
relation to business. Thus, manager can take advantages of this sector and make policies in such
a way so, their will be positive outcomes. While doing anything before this planning is required
and when actions are going on manager have to keep their eyes on it for no chances of mistakes.
If their will be negative outcomes then guidance is required which is given through Human
resource manager.
Measures for knowing Effectiveness of HR policies are given below:-
 Profit improvement :- In order to improve the corporate profitability the ALDI has five
ways. These are as follows: Automating the HR process : This will help in to focus on
other fields such as corporate training, enhancing the skills of the employees,
improvement in HR process, building the organization culture. Protecting against fraud:
In this, every year company loss approx 5% of revenue due to fraudulent activities made
by the employees. Change the operating activities : By reducing the expenses and
increasing sales the ALDI can led to improve the profit of the organization (Helfat,2017).
 Increment of sales :- major reason for increment in sale is the quality of goods and
services providing by the company to their customers. This can be possible when HR

policies implemented by ALDI in better manner. Along with these there are some other
reason also of increment is sales such as when demand arises from customers it will
fulfilled by enterprise and they get satisfied, then also sales increase.
 Satisfaction of Customers :- This is important for organisation and play vital role in
increasing productivity and profit maximisation. But satisfaction of customers is
possible only when employees are doing work in better manner and fulfilling their needs
and wants with quality products. If there is positive outcomes than HR policies
implemented by ALDI is good for their working.
 Employees Attitude :- In firm employees are the components who deals with
customers. Thus, it is essential to trained staff member related to they behaviour that
how they have to deal with the customers.
Practical implementation of HR outcomes
This can be described as implementation of various kinds of HR outcomes in an
appropriate manner to generate desired outcomes properly. It is necessary to to carrying out
procedures in correct way to provide required facilities to the people living in the society. ALDI
is a retailing company which deals at international level to provide several products. It is
beneficial to understand actual needs of clients and them put desired efforts to attain the
organisational goals and objectives more effectively as well as efficiently (Marchington, 2015) .
ALDI have to establish an accurate team of employees that deals with problems of customers
properly and give satisfactory response to them. This will facilitate to attain client trust and retain
them for long time with the brand. HR manger have to plan an effective learning event for
employees so that they can deal with customers in proper manner which improves image of
company and help to attain growth of business as well.
P6 Effectiveness of HR management in achieving business objectives
One of the primary and foremost role of HR in organisation is that they provide training
to employees which directly gives its impact in achieving objectives of business. If staff member
are doing work in proper manner then only it will aids in accomplishing goals and objectives.
Otherwise, it will gives their negative impression as well business environment is dynamic in
nature (Moutinho and Vargas-Sanchez, 2018) . Because of that several changes are taking place
such as technological, working style, training, management alteration etc. which affect working

of personnels. Thus, in this situation it is the duty of ALDI's manager to take major effective
step in relation to implementing alteration in well manner. Some of the points which shows
effectiveness of business objectives are given below :-
Resolving conflicts: there are various reasons that results in generation of conflicts
between different individuals. Hence, it is necessary to make proper structure in order to
minimize it. ALDI have number of department that is present which perform distinctive
functions. It is the responsibility of HR manager to develop such system so that conflicts get
removed.
Appraising performance: This is very much necessary to appraise the performance of
employees of ALDI. Employees are consider most important resource hence, proper decision
must be taken to arise their performance so that they feel motivated and work with more
efficiency and productivity.
Construction of proper goodwill: It is necessary for the organization to built a positive
goodwill in market place. This is one of the factor that is consider in growth of ALDI. There are
number of aspects that is included in creation of goodwill which involve carrying out process in
effective manner, supplying quality products and services.
cost and quality control: This refer to the cost cutting and quality control by the ALDI
to remove the unwanted things and maintain the quality of the product. HR manager of
respective business must have to motivate and encourage their employees to give their best and
use resources in appropriate manner for controlling cost and quality (Punnett, 2015). Quality
means a lot for attracting and satisfying large number of customers as well it assist in overall
development of business.
performance appraisal: It is a systematic process in which an employee overall
performance is measured for future growth and development (Reiche and et. al., 2016) . This is
includes the personality, work-performance, abilities, skills and knowledge.

CONCLUSION
From above report it has been concluded that Strategic human resource management is
very crucial in the company. Through this their can be effective and efficient management of all
resources in the company. Thus as a result they can easily produce effective and efficient
products. Hence as a result they can easily create unique position in the market. Various
elements are evaluated and contextual developments that can affect the HR strategy. It also
explains about the contemporary and theoretical and practical knowledge of HR department.
Various models of change management are also being used so that they can create various
strategies and plans to develop the HR strategy. It is very helpful to the HR department.
Contribution of HR department and management to sustain the business performance and it leads
to growth of HR department. Thus as a result HR department can function in an smooth and
effective manner. Hence it can create a unique place in market.

REFERENCES
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Role of HR in Achieving Business Goals. 2018. [Online]. Available through:
<http://smallbusiness.chron.com/role-hr-achieving-business-goals-1767.html >.

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