Human Resource Management Report for Aldi's New Branch

This report provides a detailed analysis of Human Resource Management (HRM) practices within Aldi, a leading grocery retailer. It begins with an introduction to HRM's importance and its functions, including planning, recruitment, training, compensation, performance management, and employee relations. The report then examines the functions and purposes of HRM, specifically in workforce planning, and compares the strengths and weaknesses of internal and external recruitment approaches. It further explores the benefits of various HRM practices, such as learning, development, training, and reward systems, and how these practices impact employee performance and productivity. The report also investigates the effectiveness of HRM practices in raising Aldi's profit and productivity. The importance of employee relations, key elements of employee legislation, and the application of HRM practices in a work-related context are also discussed. The report concludes by summarizing the key findings and providing references.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Function and purpose of HRM applicable to workforce planning....................................1
P2 Strength and weaknesses of various approach to recruitment and selection (364)...........3
TASK 2............................................................................................................................................5
P3 Benefits of different HRM practices within Aldi .............................................................5
P4 Effectiveness of HRM practices in raising the profit and productivity of Aldi ...............6
TASK 3............................................................................................................................................7
P5 Importance of employee relation and its influence on decision making...........................7
P6 Key element of employee legislation and its impact on decision making........................7
TASK 4............................................................................................................................................8
P7 Application of HRM practices in work related context....................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

Illustration Index
Illustration 1: HRM practices ..........................................................................................................3

INTRODUCTION
With changing time, human resource has become important part of an organisation. It is
one of the important department of a firm which not only help in smoother working but also help
the firm in retaining their valuable employees. This is responsible for the proper management of
employees in the firm. It facilitates firm so that they can utilise the full potential of the
employees in order to achieve their goals and objectives.
In current report, Aldi has been taken into consideration. It is one of the leading grocery
retailer, who owns its existence for more than 100 years. The company originated from Germany
and was the first who offer their customer the facility of self-services. In current time, the firm is
operating globally in more than 70 countries with more than 7,000 stores all over the world. Aldi
has been established in UK since 1990 and has come long way. In current time it has more than
500 stores alone in UK with more than 20,000 employees. In current time, the firm has decided
to open another branch in Wembley Central so that they can serve their customers in better ways.
The report will focus on Human Resource Management (HRM) of the firm and how it can help
in its working. The function of HRM will be discussed along with its importance in maintaining
the performance and relationship with employee. Some important legislation will also be
discussed.
TASK 1
P1 Function and purpose of HRM applicable to workforce planning
HRM is an important part of Aldi; it is responsible for recruiting right people and
motivating them so that their skills can be improved and they can contribute in success of the
firm. HRM in Aldi is responsible for various issues regarding the employees such as training and
development, hiring, communication etc. The main purpose of HRM is to create diverse
workforce, by increasing the proficiency and effectiveness of employee (Abdelhak, Grostick and
Hanken, 2014). In regard to this, various functions of HRM are mentioned below:
Planning and forecasting
In this, HR manager of firm collects information regarding the need of manpower in
firm. They conduct job analysis and try to find which department will need more staff. They
plan the whole process through which this vacancy can be fulfilled. Proper planning helps the
firm in managing their operations in an effective manner.
Recruitment and selection
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In order to achieve its strategic goal, it is necessary for the firm to recruit people with
right competency that can help them in achieving the overall goals of the firm. Recruitment and
selection are closely related activities as both aid the firm in obtaining right people (Armstrong
and Taylor, 2014). With the help of recruitment, firm is able to attract a pool of suitable
candidate. HRM is responsible to recruit right candidate with necessary skill and attitude that can
help firm.
Training and development
HRM is responsible to develop the skills of employee, they are required to analyse the
need and talent of the employees and should provide them proper training and development
program with the motive of higher performance (Ahmed and Sattar, 2014). This will not only
help the firm in bringing efficiency in their working but will also help in increasing the overall
performance of the firm.
Compensation
Compensation and benefits are important part of HRM as it helps them in motivating
their employees and attaining their loyalty (Azeem and et.al., 2016). There are many types of
rewards that corporate can provide their employees; for instance: paid leaves, recognition,
incentives, additional bonus etc.
Performance management:
HRM is responsible for the performance of employee. The main aim of performance
management is to ensure that each employee of the firm is carrying out his/her work in an
efficient manner. For this, they analyse and assess their employees as who are and/or who are
not performing well; thereafter, they arrange training program so that they can improve
(Brewster and et.al., 2016). It also provides employee with reward for performing well.
Employee relation
HRM is also responsible for maintaining the relationship between the top management
and staff at lower level. Maintaining a proper relationship help them in creating better working
environment. With the help of proper communication, the manager can understand the needs of
employee and can work for their satisfaction. It also helps in resolving conflict and attaining the
trust of employees.
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Illustration 1: HRM practices
(Source: HRM practice, 2017)
P2 Strength and weaknesses of various approach to recruitment and selection (364)
There are several methods through which Aldi can select best candidates. Some of these
methods of recruitment are mentioned below
Internal recruitment approaches
In this method Aldi can select the candidate for the vacant place, from within the
organisation. In this approach, the hr manager of Aldi chooses the candidate for the vacant place
from the existing member of the firm (Bondarouk, Bos-Nehles and Hesselink, 2016). The firm
select a method from various formal and informal way through which the best candidate can get
selected for the post. Promotion and job rotation are ways through which this method can be
implemented in the firm. Aldi has adopted this method in their working to fill the higher post in
the entity.
Strengths
 This method is quite cost efficient and one of the most beneficial recruitment approach.
With the help of this the firm will be able to fill the vacant place at fast rate
 In this Aldi do not need to provide candidate with unnecessary training as they are
already aware of the working of the firm (Foss and et. al., 2015).
 With the help of this process not only corporate are able to fill the vacant place but also
able to motivate their employees. Workers put extra efforts in their working so that they
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can also get the promotion. It also plays leading role in attaining the loyalty of the
employees As firm is already aware of the strength and weaknesses of the employee they make sure
that only best candidate gets selected for the higher post this way firm can maintain the
proficiency in the firm.
Weaknesses
 Efficiency of the firm get affected as they only have limited choice to select from who
has the required potential.
 It can also lead to dissatisfaction among other employees as it creates the environment of
competition that affect there working. There is no space for new idea or innovation as same old people are promoted.
External Recruitment approach
In this approach firm provide the chance to all the candidate of external environment to
applied for the job. In this firm adopt various way through which they can attract potential
candidate toward the firm such as website advertisement, newspaper advertisement etc. There
are various methods which are used to select the right employee such as skill inventory, formal
approach etc.
Strength
 This approach provides the firm with vast option so that they can select the best
employee that have both skill and experience necessary for the job.
 New people bring new ideas with them. It will help in bringing innovation in the firm. It
will also help the Aldi in enhancing their performance (Greiner, 2015). This approach provides fair chance to all those candidates who has applied for the vacant
position.
Weaknesses
 It’s quite lengthy process that require investment of lot of money for each step, such
advertisement, conducting an interview etc. The whole process requires extra cost and
time.
 Sometime it leads to dissatisfaction in existing employees as they do not find any
opportunity of development.
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 It’s not necessary that only best candidate get selected. Ineffective selection process is
unable to reveal the full potential of candidates.
TASK 2
P3 Benefits of different HRM practices within Aldi
Different HRM practice help in smoother working of the firm and also aid the firm in
achieving it overall objectives. It also plays major role in the enhancing the performance of the
employees some benefit of HRM activity are mentioned below
Learning, development and training
HR department is responsible for arranging various training and development program to
the firm so that they can perform well and can contribute in the success of the firm.
Benefit for employer
With the help of proper training and development program the firm can provide their
employees with better understanding of their job requirement which will help them in carrying
out their job in efficient manner, this will also increase the proficiency of the whole organisation.
By providing their employees with proper training, Aldi can ensure that they will perform better
and will provide their customer with better experience that will help the firm in attaining their
customer satisfaction (Govindan and et.al., 2014).
Benefit For employee
With the help of proper training and development, individual can develop its skill and
knowledge that will help him in its professional development. It will also help in boosting the
confidence of the person. It also helps in increasing the job satisfaction of the person. It also
helps them in carrying out their work in more efficient manner which provide them with the
chance of reward and recognition.
Reward and recognition
Reward and recognition help as motivational factor which help the firm in energising
their employee, so that they can put more efforts in their working.
Benefits for employer
It helps the HR manager in creating healthy working environment for the staff so that
they can feel more comfortable and work efficiently. By motivating the employee firm increase
the performance of employee which help them in maximising their profit (Jennings and Stadler,
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2015). It also quite efficient in retaining the valuable employee to the firm. It also helps the firm
in attaining the trust of the employees.
Benefits for employee
It provides the employee with job satisfaction. This makes them happy and they perform well. It
also provides them with inner satisfaction.
P4 Effectiveness of HRM practices in raising the profit and productivity of Aldi
Employees are the important asset of the firm that help them in attaining the goals and
objectives. HRM practices help in the management of these workers and aid the firm in its
success.
Recruitment and selection
Human resource department of the Aldi is responsible to recruit competent candidate that
have both skill and attitude and can contribute in the success of the firm. These employees come
with new idea that help in bringing the innovation in the working. It also assists the firm in
attracting the attention of the customer (Peppard and Ward, 2016). It also aids in increasing the
profitability of the firm. Highly skilled employees perform their job well and help the entity in
completing their work in given time which increase the productivity of the firm. HRM of the
firm help them in selecting skilled and diverse workforce which bring efficiency in the working
of the firm.
Learning, training and development
HRM recognise the need of employees and provide them with training and development
program that help them in their improvement. It plays major role in increasing the performance
of not only employees but of whole firm (Reiche, Mendenhall and Stahl, 2016). By providing
proper training the staff is able to carry out their work in efficient manner. It also helps them in
boosting the confidence of employee. A confident and skilled employee contribute in the
achievements of the firm.
Performance management
The main aim of the performance management is to improve the performance of the
employees. The human resource management is responsible to measure the performance of each
employee and ensuring that each employee of the firm is carrying out its job in efficient manner.
The employee who are not able to meet the basic requirement special training are arranged for
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them, so that their performance can be enhanced (Vanhala and Ritala, 2016). This help in
bringing proficiency in the firm which lead to less error and higher productivity.
TASK 3
P5 Importance of employee relation and its influence on decision making
Employee relation in simple words can be defined as the efforts that are made by
organisation in order to maintain its relationship with its employee. There are many factors that
affect the relationship of the firm such as trust, cooperation, openness, balance of power etc.
Employee relation is important for smoother working of the firm. The firm who has strong
relationship with their employee help them in performing well and gaining competitive
advantage in market. It also helps them in sustaining in the market for longer period. Strong
relationship with employee also help the firm in implementing the changes (Li and et. al., 2013).
For instance, if the firm has good relationship with their staff, then they will easily accept the
changes and can even help the firm in proper implementation. They also start taking initiative for
the success of the firm. In case firm do not have good relation than resistance may be created by
the employees which will not only affect their relationship but also the profitability and working
of the firm.
Employee relation also have its impact on decision making. Any decision made by the
Aldi will have its direct impact on the behaviour and attitude of workforce. Employee relation
ensure that employees are also involved in the process of decision making, in which their views
are also taken into consideration (Mondy and Martocchio, 2016). This not only help the firm in
maintaining good relationship but also help the firm in telling their employees how valuable
their views are to firm.
There are many ways through which the employee relation can be maintained in the firm.
By making proper balance in power. It necessary of the firm to empower their employees and
take their view also into consideration before making any big decision. It will help them in
increasing the involvement of employees and will also increase their adaptability. Effective
communication can also help the firm in maintaining good relation with their workers.
P6 Key element of employee legislation and its impact on decision making
In order to work efficiently its necessary of the firm to adopt all the law that has been
implemented by the government of UK. The main aim of this law is to protect employee from
any kind exploitation and unfair treatment (Abdelhak, Grostick and Hanken, 2014). It makes
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sure that each of the individual in the firm are treated equally without any discrimination. It
plays major role in empowering the employee and making sure that they do not get misused.
There are various laws, some of which are mentioned below:
Equality act:
According to this act its necessary of Aldi to treat each of their employee with equality.
There should be no discrimination of races, age, sex etc., in the firm. HRM also has to follow
this legislation at the time of recruitment and has to ensure that each of the candidate is getting
fair chance of getting the job (Armstrong and Taylor, 2014). Other than this favouritism is also
breaching of this law. Aldi has to ensure that calibre of individual is the only thing that
determines the selection of person for promotion.
Data protection act:
This law stated that employer is not allowed to disclose any personal information of the
individual without the consent of concerned person. In case the firm do so it will consider the
breaching of law (Ahmed and Sattar, 2014). This same law is also implied on the staff they are
not allowed to pass the personal information of the company to outsider.
Minimum wages act
The government of UK has provided the firm with the criteria of minimum wages.
According to this, it’s necessary of the firm to provide their employees with the minimum wages
that has been decided by the government. Not able to do so will not only lead it to legal hassle.
But will also lead to employee dissatisfaction.
Health and safety act
In this law it has been stated that employer is responsible for the health of the employee
in the workplace. They are required to take all the safety measure through which they can ensure
that no accident occur in the workplace that may lead to health issue (Azeem and et.al., 2016). In
case such thing happens, then the firm is responsible to compensate that individual. They are
also required to provide their employee with maternity leaves, paternity leaves etc.,
TASK 4
P7 Application of HRM practices in work related context
Recruitment and selection is the HRM practice that are most important part of human
resource management. With the help of proper recruitment system, the firm can select right
candidates who have the skill that can help the firm in its development. In order to hire right
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employee its necessary of the firm to select right platform of advertisement through which they
can attract the potential talent toward the firm. the firm can choose Both the platform that is
online and offline to make sure that it can attract all the possible candidates (Brewster and et.al.,
2016). After this, candidate submits their resume. The HR manager screen this resume and select
those candidates that pass the basic requirement of the firm after this they conduct a test where
the knowledge of the employee is tested. After this those candidates are invited in the interview
who has passed the test round. In interview the attributes and attitude of candidate is judged and
best candidate that is suitable for the job is selected.
Another important work of HRM is training and development. In order to provide their
employee with necessary training its essentials of the HR manager to plan this properly. For
instance, Aldi first need to identify the gap between current skill and required skill of the
employee. On the basis of this, he is required to plan their development program through which
employee can get the most benefit (Bondarouk, Bos-Nehles and Hesselink, 2016). He is also
required to arrange all the resources that are necessary for the training, such as place, equipment
etc. They also need to arrange experts who can provide employees with good knowledge. This
will help the person in raising their skill.
CONCLUSION
From the above report, it can be concluded that HRM plays an important part in the
management and success of the firm. It helps the entity in carrying out their work in an efficient
manner. In order to earn high profit, it is necessary for the firm to have diverse and highly
performing staff. HRM provide the employees with necessary training that help them in
performing well. It also provides employee with reward that help in motivating them. It also
saves the firm from any kind of legal hassle by making sure that all law and regulation are
followed.
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