Human Resource Management Report: Workforce Planning at ALDI

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within ALDI, a UK-based discount supermarket. It explores the purpose and functions of HRM, emphasizing its role in workforce planning, recruitment, and employee relations. The report examines various recruitment approaches, including internal and external methods, and discusses their strengths and weaknesses. It also delves into the benefits of different HRM practices for both employees and employers, such as performance management, flexible working hours, and training and development. Furthermore, the report assesses the effectiveness of these practices in raising organizational productivity and profits. It also explores the significance of employee relations and the impact of employment legislation on HRM decision-making. The report concludes by highlighting the application of HRM practices in a work-related context, offering a detailed overview of HRM's critical role in organizational success.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Purpose and functions of HRM applicable to workforce planning........................................4
P2 Strengths and weakness of various approaches of recruitment..............................................6
TASK 2............................................................................................................................................8
P3 Benefits of different HRM practices for employee and employer.........................................8
P4 Effectiveness of various HRM practices in terms of raising organisational productivity and
profits...........................................................................................................................................9
TASK 3..........................................................................................................................................10
P5 Significance of employee relations and its influence on HRM decision making.................10
P6 Key elements of employment legislations and its impact of decision making process........12
TASK 4..........................................................................................................................................14
P7 Application of HRM practices in work related context........................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Human resource management is department in an organization which perform various
activities like to manage employee’s performance and actions at workplace. Various functions
such as recruitment, compensation, employee relations, selection, training & development and
performance appraisal of employees is all cover under HRM (Banfield, Kay and Royles, 2018).
Feature of this concept is that it helps manager in forecast workforce require to perform various
jobs at workplace. All these help managers in creating and maintaining positive environment at
workplace which improve overall productivity of company. ALDI, a discount supermarket based
in UK which offer various kind of products such as food and households goods is consider in this
report for study. Main purpose and different function of HRM applicable for workforce planning
is all given in this report. In addition to this different approaches of selection and recruitment
are also mentioned over in this assignment. Various practices of HRM, its benefits for employer
and employees with its effectiveness for an entity is also included in this. Moreover different
employment legislations act are also specified with its impact on decision making process of an
organization.
TASK 1
P1 Purpose and functions of HRM applicable to workforce planning
HRM plays an important role for every business concern as it helps in selecting a skilled
candidate for a specific job and also help in managing employee’s performance which support
company to better satisfy the needs of its target customers. HR department of company is the one
which formulate various strategies related with training, compensation and performance
appraisal of employees.
Functions of human resource management
Various functions are cover under the concept of Human resource management which boost
up employee’s performance and results in accomplishment of all business objectives. Main
functions of HRM can be understood by the points given below: Selection and recruitment: It is also one of the cruciate function of human resource
management for every organisation. Moreover it helps to attract as well as to select
skilled candidate to perform different job roles at workplace (Bratton and Gold, 2017).
Manager first determine the need of employees require to perform different roles at
workplace. For this manager identify the gap exists in current employees and required

one. Further, manager set a selection criteria for each job and attract individuals to apply
for the same. manager examine the skills of all applicant and select the best one for the
job. Create and maintain positive work environment: It is very essential for manager of
human resource management of ALDI to create and maintain positive work environment.
This enhance employee’s morale and improve their performance at workplace. For this,
open communication should be there at workplace and employees should be encourage to
communicate with managers in case if they face any kind of issue at workplace. Workers
should get appraisal when they perform well with this ALDI can create a culture with
high commitment and performance. Conduct training & development programmes: It is the very important function for
every enterprise as its main purpose is to render proper training session to their
workforce so they can improve their skills and can perform their job roles in better
manner (Brewster, 2017). Training makes an employee capable to face future challenges
of job. So that manager should carry out some effective training program session for the
employees on continuous basis so that they can result in rendering better outcomes for the
company in future.
 Compensation of employees: Manager of HR department is the one who develop
compensation packages for employees. It is very essential that compensation packages of
employees should be adequate so employees can fulfil the basic needs of their routine
life. With proper compensation company can retain workers for long time and can
decrease the employee turnover.
The manager of Aldi company should ensure that there take place an effective execution of
all these functions at workplace in order to retain workers for longer period of time. Thus, it will
helps in accomplishing business concern aims and objectives on specified time schedule.
Purpose of HRM
Main purpose of HRM is to create and provide a positive and health working environment
to all employees so they can perform well and can sustain in market for long run. Further, this
help to hire exact candidate for right job at accurate time in the workplace which ensure
effective execution of all business activities. All this help in provide satisfaction to employees

which improve overall productivity of entity. Manager of human resource department of ALDI is
responsible to conduct various activities at workplace so morale of employees can be enhance.
P2 Strengths and weakness of various approaches of recruitment
Recruitment and selection is a important function for every organization because through
this company attract large number of skilled candidate examine their skills and select a best one
who fits most appropriate for the job position. For carry out recruitment, manager set the criteria
for the specific job.
Recruitment is known as the process in which manager invite large number of applicant to
apply for the job vacancy which is available in the organization. Different approaches of
recruitment with its strengths and weakness can be understood by the points given below:
Internal approach of recruitment: Through this approach manager fill job position with the
existing workforce working in organisation. In this manager identify and examine the skills of
employees to take decision. Promotion, job rotation and transfer all these are the main types of
internal approach of recruitment. Strengths and weakness of this approach is given below:
Strengths: This approach of recruitment is cheap and time saving because skills of
existing employees are examining to take decision. Further, this encourage employees to work
well which improve overall productivity of enterprise.
Weakness: Disadvantage of this approach of recruitment is that it blocks innovation in
enterprise as higher positions are filled by the existing employees working in company. This
approach demotivates the workers who fail to achieve promotion and create negative work
environment.
External approach of recruitment: This is another approach of recruitment in which
applicants are invited to fill a job (Friedman, 2017). In this manager do advertisement of vacant
position for attract applicants. After that manager examine the skills of candidate in order to
select a best one. Following are the strengths and weakness of this approach of recruitment: Strengths: Biggest advantage of this approach of recruitment is that it brings innovation
at workplace. Recruitment of skilled workers saves training cost of enterprise. Employees
with new skills improve profits of company and also provide competitive advantage to it.
 Weakness: This approach is very costly and time consuming. This also enhance the moral
of existing employees working in company. Company have to invest funds in training
and orientation programmes of employees.

Selection is the process in which manager select an individual from all the applicants to
perform a job role at workplace. various approaches of selection can be understood by the
following points:
Systematic approach: Under this approach of selection, manager follow a step by step
procedure to examine skills of an applicant to make a final decision (Brewster, Brookes and
Gollan, 2015). Strength of this approach of selection is that it provides more appropriate results.
Weakness of this approach is that it is very time consuming.
Unsystematic approach: In this selection approach, manager or recruiter select a CV on
random basis and then compare the skills of that candidate from the skills require to perform a
specific job at workplace. Strength of this approach of recruitment is that it is time saving and
weakness of this is that it does not provide reliable results.
There are many approaches of selection and recruitment which are used by the manager so
as to recruit skilled workforce for a specific job in an organization.
Internal approach of recruitment: In this manager examine the skills of existing
employees in order to fill the higher job position at workplace. One of the biggest strength of this
approach of recruitment is that it motivates existing workers to perform well which improve
overall productivity of enterprise. It creates a positive environment at workplace. weakness of
this approach is that it demotivate the workers who fails to get promotion.
External approach of recruitment: Through this approach manager select the individuals
from outside the business concern and are invited to apply for a specific job. Manager examine
skills of those individuals and select the one who fits best for the position. Strength of this
approach is that it brings innovation at workplace and also provide competitive benefit to
company.
Different approaches of selection
Systematic approach: Under this approach employer follow a step by step process so as
to identify the knowledge and skills of icandidates before make a selection decision. Strength of
this selection approach is that it help employer in select a individual who first best for the job.
Disadvantage of this is that it is very complex and time consuming.
Unsystematic approach: This is another approach of selection in which manager select a
CV on random basis and compare the current skills of individuals from the skills require to
perform a specific job at workplace and select the one who have all the skills required. Strengths

of this approach of selection is that is time saving and weakness of this is that it does not provide
reliable results.
TASK 2
P3 Benefits of different HRM practices for employee and employer
Application of HRM practices at workplace provide advantages to both employees and
employer at workplace. Performance management of employees, flexible working hours, training
and development all these are the example of HRM practices. It is very essential for managers of
ALDI to ensure effective application of these practices at workplace as this provide benefits to
both employees and employer. These benefits can be understood by the points given below:
Advantages of HRM practices for employer: Helpful in making better decision: Practices of HRM ensure continuous examine of
employees performance at workplace and this help manager in collect information about
all skills and knowledge of employees. All this information help manager in take better
decision as manager assign roles and responsibilities to workers according to their
knowledge. All this ensure effective execution of all business activities. Help in create and maintain positive environment: HRM practices provide an option of
flexible working hour to employees this not only enhance their morale and improve their
productivity at workplace (Harrison and Lock, 2017). Further, manager do various
efforts to improve employee’s performance by offer them continuous training. All these
activities help in create and maintain a positive environment at workplace which help in
retain employees for long time period.
Advantages of HRM practices for employees Fulfil their needs: Application of HRM practices provide proper training and
compensation to all employees which help them in fulfil all their short and long term
needs. Further this offer them a positive working environment and offer them job
satisfaction.
 Improve performance: Concept of human resource management ensure training should
be provide to workers on timely basis so they can learn new skills and can perform their
job roles at workplace. Improve performance of workers offer them growth opportunities.
Application of various practices of HRM provide benefits to both employees and employer at
workplace. Overall this ensure examination of all elements that affect employee’s performance

in positive and negative manner. Manager formulate various strategies to eliminate all those
elements which affect the performance of workers in negative manner. All this improve
effectiveness of business activities and help company in better satisfy the needs of its workers.
With all this company can sustain in market for long run. So it is essential for managers of ADLI
to ensure effective execution of all HRM practices at workplace.
P4 Effectiveness of various HRM practices in terms of raising organisational productivity and
profits
Each department work in an organisation which perform various functions so company can
serve its customers and can generate more number of profits. From all the department, human
resource department is one of the most significant department of every company as manager of
this department control the activities of all employees working in enterprise. HRM practices
cover all the aspects which main aim is to improve performance of employees. All this directly
increase profits and productivity of enterprise (Lu, Zhu and Bao, 2015). Under the HRM
practices manager provide training to employees on continuous basis. Training is known as one
of the most essential part of an employee’s job as training update the skills of employees,
improve their skills and all this improve workers performance at workplace. when workers
perform well at workplace this help company in provide featured and better services to its
customers which improve profits of enterprise. Further, monitor and examine performance of
worker’s on continuous basis is another practice of HRM. In this manager compare the actual
performance of employees with standard one and identify the gap. After that manager formulate
strategies and do necessary actions to fulfil the gap so workers can work well and can meet all
the set standards of performance. This improve both profits and productivity of entity and also
provide competitive advantage to enterprise. HRM practices consist that option of negotiable
working hours should be offer to workers so they can perform their job roles according to their
requirement (Marchington and et. al., 2016). This provide satisfaction to individuals working in
an organization and help in retaining them for longer time period. With effective application of
HRM practices managers of ALDI can create and maintain good working environment which
enhance employee’s morale and make them more productive. All this improve profits and
productivity at workplace. Further, practices of HRM ensure that employees are getting fair
compensation according to the job roles they perform at workplace. This decrease employee

turnover and saves company cost in recruitment and selection. Adequate compensation help
employees in fulfil the basic needs of their life and also offer them job satisfaction.
In modern era, business environment is very essential for an employer to create and
maintain good relations with employees as this help in manager in get their support while
implement changes at workplace. Further, application of HRM practices also have an impact on
decision making process of managers. This provide an opportunity to manager to examine the
current performance of employees at workplace and identify the gaps between their current and
standard skills. Manager take decision to provide training to employees so identified gap can be
remove.
TASK 3
P5 Significance of employee relations and its influence on HRM decision making
Employees are known as one of the most important assets of every enterprise. Performance
and decision taken by workers largely affect success and failure of company. It is very important
for managers to fulfil their all needs and requirements in order to retain employees for long time
period. It is essential for employer to create and maintain good relations with employees in order
to get their commitment and support for perform business operations. When manager create and
maintain good relations with employees then workers support employers implement changes at
workplace (Mosakowski, 2017). When employers fail to maintain good relations with
employees then it create negative working environment. So it is very essential for managers of
ALDI to create and maintain good relations with employees. For this manager can do various
efforts which can be understood by the following points:
 Open communicate should be there at workplace and effective communication channels
should be use so employees communicate with managers and can make them aware about
the issues they face at workplace.
 Employers of ALDI should encourage employees to participate in decision making
process so both can discuss and can set mutual goals. This help in get support of workers
to achieve set business objectives.
 Employers require to treat all workers with same respect and dignity as this enhance their
morale and also help in retain them for long time period.

 Proper growth opportunities should be offer to all employees and no discrimination
should be there at workplace on any basis such as gender, age and culture. This create
positive environment at workplace and improve their productivity.
 Employer require to collect feedback from all employees so they can easily tell managers
about the issues they face at workplace.
 Employer should examine the performance of employees on continuous basis and should
appreciate the ones who perform well at workplace as this motivate other employees to
work well and improve overall productivity of company.
 Employer require to conduct training programmes for workers so they can learn about
new skills and can perform their job roles in better manner.
 Managers should encourage job rotation at workplace as this provide an opportunity to
employees to learn about new skills which improve their overall performance at
workplace.
 Employees should be encourage to provide their views about organisation culture and
structure and about the area in which they want some changes. This make the employees
feel that company value them and improve their performance at workplace.
 Power and authority should be distribute among all employees equally and there should
be no biasness. With this managers of ALDI can maintain positive environment at
workplace.
 Innovation and every new effort done by employees should be welcome and appreciate
by manager. in this way employees not only feel motivated but this also increase
creativity at workplace.
All these are the major ways through which managers of ALDI can create and maintain good
relations with employees and can encourage them to work well. With this managers can get
commitment and support of workers and can implement changes at workplace. Good relations
with employees help manager in take better decision as workers provide their support to
organisation. On the opposite of this, when employer fail to maintain good relations with
workers then employees do not support the decision taken by employers at workplace. So
relations with employees largely affect the decision making process of organisation so all efforts
should be done by the managers of ALDI in order to create and maintain good relations with
employees so they can take better decision and can sustain in market for long time.

P6 Key elements of employment legislations and its impact of decision making process
Employment legislation is a combination of different laws and regulation which describe the
relationship of employees and employer at workplace. This define how an employee should
behave at workplace and also make them aware about their rights and duties at workplace.
Various laws and regulations are there which are cover under the employment law and manager
of every enterprise is responsible to comply with all laws while taking any decision or during
formulation of compensation packages of workers. Main elements of employment legislations
and its impact on decision making process of company can be understood by the points given
below: Anti-discrimination act: This act of employment legislation reflects that there should be
no differences at workplace on any basis including age, gender, religion, colour, culture,
language and on any other basis. All employees should be treated with same dignity and
respect at workplace and growth opportunities should be offer to both males and females
working in enterprise (Moutinho and Vargas-Sanchez, 2018). Discrimination create
negative work environment and increase employee turnover. So there should be no
discrimination at workplace as this offer long term advantages to enterprise. Managers of
ALDI should treat all employees equally in order to motivate them. This affect the
decisions of managers related with provide growth and promotional opportunities to all
workers. Minimum wage act: This act reflect that minimum wage should be offer to every single
employee working in company so they can fulfil the basic needs of their routine life.
Government of country determine the percentage of minimum wage every year as per the
deflation and inflation rate exits in market and employer of every enterprise require to
offer that minimum wage to every worker (Schoorman, Mayer and Davis, 2016). This act
largely affect the decision taken by manager during formulation of compensation
packages of workers. Managers remain responsible to ensure that every employee is
getting minimum wage. Comply of this act is important for every enterprise so workers
can fulfil the basic needs including shelter, water, cloth and food. Worker disability act: According to this act, employer of every organisation remain
responsible to offer all the facilities to the disable person who work in enterprise. Further,