HRM Report: HRM Practices and Employee Relations for Aldi

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on workforce planning, recruitment and selection strategies, employee relations, and the impact of employment legislation. The report uses Aldi, a grocery retailer, as a case study to illustrate the application of HRM principles in a real-world context. It explores the purpose and functions of HRM, including recruitment, retention, compensation, and training. It also examines the strengths and weaknesses of internal and external recruitment methods, and the benefits of various HRM practices for both employers and employees. The report further discusses the importance of employee relations in HRM decision-making and the key elements of employment legislation. Finally, it illustrates the application of HRM practices in a work-related context, highlighting how effective HRM contributes to increased profit and productivity within Aldi.

HRM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO1.............................................................................................................................................1
P1 Purpose and the functions of HRM for workforce planning..................................................1
P2 Strengths and weakness of different approaches to recruitment and selection......................2
TASK 2............................................................................................................................................4
LO2.............................................................................................................................................4
P3 Benefits of different HRM practices to employer and employees.........................................4
P4 Effectiveness of different HRM practices in terms of raising profit and productivity..........5
TASK 3............................................................................................................................................5
LO3.............................................................................................................................................5
P5 Importance of employees relations in HRM decision making for Aldi.................................5
P6 Key elements of employment legislation and its impact on HRM decision making.............7
TASK 4............................................................................................................................................7
LO4.............................................................................................................................................7
P7 Illustration of the application of HRM practices in a work-related context..........................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource are hired to get results not to get excuses. The people who are hired by a
company are expected to perform their best in regards to goals and objectives of the company. In
return organization is obliged to take care of the people who are putting their best for it. Hence,
human capital is a long term asset which is there throughout life of the business. Simultaneously,
any organisation small or big requires people who would work for it. ALDI is one such grocery
retailer which is incorporating its business on a huge scale and is aiming to provide its people
with accurate environment to work and develop. Hence, a complete justification for management
of human resource is given in this research with regards to ALDI. Also there are many theories
and approaches which are being illustrated that can be used by the company to have a proper
action of the developed plans.
TASK 1
LO1
P1 Purpose and the functions of HRM for workforce planning
People who work for the company are asset to it and management of them is first and
foremost objective. Hence, ALDI have made a separate department for management of the
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individuals who are working for it (Armstrong, 2014). This department have many roles and
purpose which are to be initiated. As it is known that this department is wholly responsible for
appointing right people for the right job so as to fill gaps in an organisation. The list of functions
and there purpose have been defined below:
 Recruitment
The primary objective of a company's HR department and its manager is to hire people
for the company. This the main function of HRM to have people in the organisation who are
suitable for spaces which are ought to be filled. Hence, the manager of this in ALDI is
responsible to have right people at the right time at the right place for the right work.
 Retention
There is an environment of company which is also regarded as the culture which have to
be followed in order to make the people to work for a long period of time for it. Hence, HR
management of ALDI is responsible for retaining the employees in the company by providing
them with facilities which are compulsory to provide them in order to get best result with long
term retention.
 Compensation
Company is a ought to render an amount to the work which is being rendered by a
person. Hence, a person works for its salary for the company (Bratton, 2012). So, all the rewards
in terms of monetary or non-monetary are managed and programmed by the HR department for
people who are working for ALDI.
 Obligation
It is the main responsibility of the company to take care of the individuals who are
working for it. Also the maintenance of performance of the employees are is done by HR
management of ALDI by preparing some measures for the performances as well as motivating
them to perform in a more better manner.
 Labour
The unions which are made by employees against some non satisfactory policies is being
overcome by HRM so as to make sure smooth functioning. This is initiated by offering them
with rewards, incentives, bonus etc. in order to keep their satisfaction in level.
 Training
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It is the role of HRM to train the people who are working in the company so as to make
them efficient to work in ALDI (Chadraba, 2011). There are several needs where employees
have to be taught about the way in which they have to work which is necessary.
P2 Strengths and weakness of different approaches to recruitment and selection
An organisation have to select people from various sources which are to be ascertained in
accordance to the requirement of the company. There are several approaches in regards to
recruitment and selection of people in a company. There are internal and external ways in which
a company can recruit people for its operations (Chen and et. al., 2015). In regards to make a
choice there are several factors which have to be taken into account so as to have best method.
Intrinsic recruiting includes assigning jobs to people who are already working in an
organisation. It can be done through promotion, internal job posting, transfers etc. Extrinsic
recruiting involves hiring a new talent from outside of a business through some other firm or any
kind of institution and so on. For example- campus hiring, advertisements, job portals etc. to
which people apply and on the basis of interview get selected for a particular job.
There are several advantages and disadvantages of these sources of recruitment or it can
be said that there are strengths and weaknesses of both the approaches while executing them for
hiring people in ALDI (Clegg, 2015). Following is the justification for the same:
Internal Recruitment
 Strengths
◦ The one who is being switched from one department to another is very well known by
the organisation.
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◦ Risk of getting inaccurate personnel are very low.
◦ People who are hired internally needs less training as compared to external
recruitment.
◦ Cost of recruitment is altered as the talent is acquired internally.
 Weaknesses
◦ There is a lack of new talent in the company.
◦ Creativity and new ideas from new people are prohibited.
◦ Level of performance might get affected as there is no new talent in organisation for
competition.
◦ People in ALDI won't feel any kind of change in regards to their colleagues.
External Recruitment
 Strengths
◦ The chances of fresh talent are more in this type of hiring.
◦ People who are hired externally have a new mindset with lots of ideas and creativity.
◦ There are chances of getting better candidate than who are working already (Esbjerg,
2010).
◦ It is very useful for the company to explore new blood with lots of qualities for
ALDI.
 Weaknesses
◦ It is a risk as the new hired person might nor perform up to the mark.
◦ Huge cost of training and recruitment is involved.
◦ The employee who is recruited from outside have very high expectation in regards
with compensation.
◦ There is a lot of risk that people who are working might feel demoralised as they do
not get adjusted with the new personnel.
These are the benefits and limitations of both the approaches of recruitment and selection
for the organisation which will help ALDI to get best personnel for its operations.
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TASK 2
LO2
P3 Benefits of different HRM practices to employer and employees
HRM practices are necessary for an organisation as they includes management of people
who are working for a company (Guest, 2011). Likewise, in ALDI they are given very much of
importance as they assists in management of people in a proper manner which is necessary.
There is involvement of both employer and employee in recruitment and selection process so as
both are involved till both are working hand in hand. So, by using various HRM practices there
are benefits which are there for recruiter and interviewee which are listed as follows:
Benefits to employer
 The employer i.e. ALDI will get a suitable personnel who will be competent to work in
its environment for development of company as well as revenue of organisation.
 Management of people who are working in the company will be executed in best possible
way which will facilitate efficient performance.
 The people who are working in organisation are ought to perform well as the HRM sets
standards for performance which are to be achieved for better compensation and various
other facilities. Decisions regarding any kind of policies and plans related to workforce can be taken in a
proper manner by the employer when it have HRM practices.
Benefits to employee
 The employee gets best facilities which are mandatory to be provided to it in order to
work for a post in ALDI (Gülsoy, 2013).
 The development and improvement in skills of employees is initiated as the proper
working environment with standards of performance is provided.
 There are huge benefit of management of work for which employees are compensated in
regards to their roles and responsibilities.
 They get to work in an environment which is very much suitable and compatible as per
their skills which is very much beneficiary for their career and future development.
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P4 Effectiveness of different HRM practices in terms of raising profit and productivity
Human resource is the main asset of company which helps a company to grow and
develop. Likewise, these individuals of the company have to be managed in a proper manner to
as to obtain effectiveness in the operations by continuous monitoring and controlling the same.
To maximise profitability and productivity of business it is necessary to obtain people who can
work for it in a manner which is appropriate which can lead the company to reach heights in its
effectiveness of operations (Hoque, 2013). Positive and supporting practices of HRM
automatically leads to good working condition which enhances efforts and performance of the
people which leads to generation of products, sales and revenue. In ALDI information regarding
employees and their work is maintained and hold by HRM department. This helps in making
sure that who is working in a good and bad way. Also training and development is considered as
best HRM practices for overall grooming and development of employees.
Primary duty of an HRM is to provide the employees with appropriate training so that
they get familiar with the organisation and performs exceptionally well which helps in adding up
to effectiveness and increase in effectiveness and productivity of the company which is a very
important aspect of business. Also a skilled worker is much more valuable in comparison to non
skilled worker so training is important. The career opportunities which are being provided by
ALDI also are the best to work for it as a personnel gets to excel many things which help in
development of a healthy and secure future. When a person will get satisfying results
automatically it will perform well and that will add up to the effectiveness in regards to
production and profit (Inman, 2014). All the practices of HRM such as retirement facilities,
growth facilities HRM information system etc. helps in increasing profit and production of
ALDI.
TASK 3
LO3
P5 Importance of employees relations in HRM decision making for Aldi.
Employees relation relates to maintenance of employee and employer relationship
between both of them. This helps in satisfying the employees in a better way which leads to
increase in development of company. This role is played by HR department of company as the
employees and their related functions are associated with it. So, a company have to take HRM
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decisions in regards to these factors. There are a lot of importance of employees relations in
making decisions for the company regarding HRM as it is directly related to it. The main aim of
the HR department is to enhance the performance of employees so that they work towards the
achievement of goals and objectives this is initiated only when a company have effective
relations with its people who are working in it. It also helps in motivating and enhancing their
morale to achieve the targets on time (Jiang and et. al., 2012). So, when there are relations with
human resource of a company than there can be a complete idea of problems and there thoughts
about how they feel while working for ALDI. Communication leads to open many doors which
can enhance smooth working of company and also assist the management to take decisions
according to it. Elaboration to the importance of employees relation in HRM decision making is
given below:
 Motivated
Employees are motivated when relations are maintained with them. Relationship
management enhances consulting with employees on the matter which creates issues for them
and as they are consulted appropriate solutions are obtained which makes them motivated. As all
the conflicts are solved the functioning becomes smooth and the decisions regarding any
problem is obtained without any biasses which makes employee to feel assertive and better.
 Conflict Reduction
When relations are maintained the employees conflicts are solved after consulting with
them which is very important function of HR (Lynch and et. al., 2011). While understanding
employees in a better way the problems which are faced by them are solved which builds a
healthy relation between company and workforce.
 Teamwork
When there are healthy relations at that point of time people work interrelatedly which is
a very important point for teamwork and group efforts which are important for a company.
 Reduce absenteeism
The employees feels more inclined towards work and out perform themselves in regards
with the operations which helps in reduction of absence from work.
P6 Key elements of employment legislation and its impact on HRM decision making
Legal bodies of a country makes some rules and regulation upon which each and every
person and business have to work. In case of UK there are several such legislations availble in
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regards to HRM which are to be taken care by ALDI. These are obligatory to be followed by the
company to have proper operations in the nation and long term sustainability. Beneath is a list of
legislation which will impact the HRM decision-making:
 Health and Safety act 1947
Under this legislation it is very important for a company to have a safe and secured
environment for the people who are working in it (Nienhueser, 2011). Also there must be
appropriate aiding facilities available in regards to functions of the business so that employees
cab be protected against any health related mishap. Employment act 1963
According to this act the employer is responsible for providing appropriate wage and
time of working to employees in regards to their role and responsibilities. This is the duty of
employer to be very much justifiable while recruiting any personnel in organisation according to
skills required as well as the needs of the company. Simultaneously all related facilities are to be
given.
 Sex discrimination act
This act aims at prohibiting any kind of partiality or biasses on the basis of sex which is
there in a company while recruiting people (Slack, 2010). This helps in enhancing that each and
every person must be treated equal in regards to the jobs which are assigned to them according to
their qualities not on the basis of gender.
TASK 4
LO4
P7 Illustration of the application of HRM practices in a work-related context
ALDI have very vast operations for which many people are recruited on regular basis to
work on its functions. Hence the role of HR department is very active in case of ALDI as the
store is rapidly developing on a very fast scale. As it is known that there are many HRM
practices like- training, development, recruitment, selection, appraisal, motivation etc. which are
to be performed in the premises of company in regards to have best people who works for the
company. There are many instances where the application of practices is initiated when there is
a requirement to make the unskilled workers skills by training them, to increase people's morale
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when they are demotivated, appraising them when there is a situation in ALDI where a employee
out performs any kind of activity and so on depending upon the circumstances.
For example there is a vacancy in ALDI for sales manager for which there is a
requirement for recruiting a suitable personnel. For this the HR manager first have to make sure
that how many vacancies are there, what all requirements are there in regards to candidate, what
would be the salary of that person who have to be recruited and so on. After the ascertainment of
internal procedures outer procedures such as advertisement platforms on which the ads for
vacancy is to be given have to be chosen which will help in recruiting people for the job. After
that recruitment and selection procedure will be initiated to obtain personnel according to the
requirement of ALDI'S sales manager (Tan, 2011). Job specification and interview criteria is
given below for the vacancy of sales manager in ALDI:
JOB SPECIFICATION
Sales Manager
Business enterprise ALDI
Reports to Head of Department
Ability required Interpersonal Skills & Interactive Skills.
Qualifications Under graduation and Post graduation in
similar field which is sales with a diploma in it.
Experience 3-4 years in the similar field.
Obligations Have to make sure that target for sales are
completed for the company as well as the
related departments have to be managed in
regards to have proper sales. The person must
have coordination ability which is important
for this post.
Interview Criteria:
What is sales?
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What kind of qualities are required to do a perfect sales?
What is the difference between marketing and selling?
What techniques would you use to influence your customers?
What would be chosen by you to promote a new product?
On the basis of above criteria the individual will be judged and accordingly it will be
selected to work for the organisation on the post of sales manager (Kornberger, 2015). All the
responsibilities will be fulfilled after the person have passed the criteria with outstanding
answers to the questions.
CONCLUSION
It have been concluded by the above report that it is very necessary for a firm to have
HRM practices in order to manage the people who are working in it. There are several types of
recruitment upon which a company can select and hire people for its operations. Also a
justification for the implementation of recruitment application have been given in the above
report. Purpose and benefits of the HRM and its practices are a results of this research in regards
to operations of ALDI. Legislative rules and procedure which will impact the operations of the
company have also been illustrated in the above assignment. ALDI with help of this will be able
to have a proper management of people who are working for its growth and productivity. The
profit of the company will be enhanced and this will lead to expansion of business in various
locations for a global presence.
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REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Chadraba, P.G. and D O'Keefe, R., 2011. Human resources: interculturation as an asset in the
global marketplace. Journal of International Business and Cultural Studies. 4. p.1.
Chen and et. al., 2015. Implementation of non-regulatory food safety management schemes in
New Zealand: A survey of the food and beverage industry. Food control. 47. pp.569-
576.
Clegg, S.R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An introduction
to theory and practice. Sage.
Esbjerg, L., Buck, N. and Grunert, K.G., 2010. Making working in retailing interesting: A study
of human resource management practices in Danish grocery retail chains. Journal of
Retailing and Consumer Services. 17(2). pp.97-108.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Gülsoy, T., 2013. Human resource practices of an emerging-market multinational: Implications
for enhancing organizational innovation. Procedia-Social and Behavioral Sciences, 75,
pp.498-507.
Hoque, K., 2013. Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.
Inman, M., O'Sullivan, N. and Murton, A., 2014. Unlocking human resource management.
Routledge.
Jiang and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Lynch and et. al., 2011. 14 Representing and Organizing Retail Workers: A Comparative Study
of the UK and Australia. Retail work. p.277.
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Nienhueser, W., 2011. Empirical research on human resource management as a production of
ideology. management revue. pp.367-393.
Slack, N., Chambers, S. and Johnston, R., 2010. Operations management. Pearson education.
Tan, C.L. and Nasurdin, A.M., 2011. Human resource management practices and organizational
innovation: assessing the mediating role of knowledge management
effectiveness. Electronic Journal of Knowledge Management. 9(2). pp.155-167.
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