HRM Practices in Aldi: Benefits, Legislation, and Application Report

This report provides a comprehensive overview of Human Resource Management (HRM) practices within an organizational context, specifically using Aldi as a case study. It begins by outlining the fundamental purposes and functions of HRM, including recruitment, selection, orientation, and employee relations. The report then delves into the strengths and weaknesses of different recruitment and selection approaches, differentiating between internal and external sources. A significant portion of the report is dedicated to the benefits of various HRM practices for both employers and employees, covering performance appraisal, training, compensation, and development. Furthermore, it explores the effectiveness of these practices in enhancing organizational performance. The report also examines key elements of employee legislation and its impact on HRM decision-making. Finally, it analyzes the application of HRM practices within an enterprise setting, providing practical insights and concluding with a summary of the key findings and implications.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 HRM Purpose and Functions ...............................................................................................1
P2 Strengths and weaknesses of different approaches to recruitment and selection..................3
TASK 2............................................................................................................................................5
P3 Benefits of different HRM practices for both the employer and employee...........................5
P4 Effectiveness of HRM practices............................................................................................6
TASK 3............................................................................................................................................7
P6 Key elements of employee legislation and its impact on HRM decision making.................9
TASK 4..........................................................................................................................................10
P7 HRM practices in an enterprise and its application............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
Human resource management forms the integral part of any organization as it undertake
and control some of the most prominent functions of management i.e. planning, organizing,
recruitment and selection, employee compensation and so on that are of vital importance for firm
to maintain and develop its profitability and productivity level (Human Resource Management,
2018). HRM is a formal system of management whose major responsibilities are to manage a
business most valuable assests -its People, both customer as well as employees (Anderson,
2013). Thus, Hrm formulate and implement those policies, procedures and strategies that helps a
company to achieve its objectives by utilizing the efforts of its employees to satisfy its customers
and generate maximum output.
Aldi is one of the top most leading discount supermarket chain dealing in daily necessary
household commodities, dairy products, vegetables, beauty products, kitchen appliances and so
on. It was established in 1960 with its base in Germany and currently has its operations running
in more than 10,000 stores in 20 countries across the globe.
This assignment will cover a brief explanation about role and responsibility of HR
manager along with various HRM practices and their benefits. Moreover it will give synopsis
about various approaches with their potential strength and weakness that a management can
apply for enhancing its relations with its employees. It will also brief about the importance of
employee relations along with certain legislations that are enforced by government for
protection employees right.
TASK 1
P1 HRM Purpose and Functions
Human resource management forms the backbone of an firm as it plays critical role in
converting the limited available resources into maximum returns by managing its employees
(Armstrong and Taylor, 2014). As business deals in a dynamic environment with a number of
competing factors to affect its profitability HRM tries to maintain an edge over its competitors
by enhancing its internal factors. Thus, it formulates those strategies that helps them to
maintain amicable relations with its employees. It is because a committed workforce serves as a
cornerstone for a firm enabling it to accomplish its targets by providing customer satisfaction.
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Therefore a dedicated,proficient employee is worth retaining s the work efficiency, skills and
knowledge of a person cannot be substituted in this competitive business environment.
Aldi being global leading firm maintains a workforce of more than 30,000 employees
who manages its operation in more than 20 nations. The Human resource management of Aldi
ensures that it has a proficient employee, at right job at right time whenever his services are
required. Its employees forms focus of center at the time of preparing any policies, procedures in
a such a way that it is in perfect alignment of firms objectives with personal goals of an
employees profile hat they have a proficient employee, performing right kind of job should be
presented at the right time when he is required (Aswathappa, 2013.). The mangers of Aldi puts
their employee in the center of focus while formulating any policies and procedures keeping in
mind that there is perfect alignment of organization goals with the individual objectives so as to
maintain cordial relationship between the employees and management.
 Recruitment and selection: Hiring process forms the foremost process of human
resource management as it deals with hiring most appropriate employee for the job
vacancy by thoroughly identifying the job profile requirement, selecting few chosen
applicants, screening and interviewing them to find out their capabilities, skills and
knowledge and then matching it with particular job position. It is a critical task as a
firm's success totally dependents upon efficiency of its employees and any misfit
candidate can negatively impact its productivity and performance
 Orientation: It is a formal programme that is organized by management to introduce a
new employee with its fellow members. Orientation helps an employee to get familiar
with policies, procedures, responsibilities, roles, work culture etc. related to business
enterprise enabling him to get accustomed and adjust in new work environment (Batt and
Colvin, 2011).
 Managing employee relations: Employees forms pillar of a business, a crucial factor
behind the success and growth a firm. Thus it becomes essential as well as profitable for
a company to have a harmonious relation with its people. To maintain and develop this
understanding HRM conducts various team building activities with employee which
help in developing coordination, mutual trust and respect among employees themselves
and between workers and management too.
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Mentioned above are certain functions which Aldi follows for managing its workforce with
efficiency ensuring timely achievement of all its goals giving maximum returns. Mentioned
below are scopes of human resource management:-
Scopes:-
 Planning about company's human resource
 Job analysis and Designing
 Appraisal of employees performance
 Planning out Compensation and Benefit schemes
There are variety of approaches to manage HR in a business. Two main approaches are,
 Hard HRM- This approach is mainly concerned with getting work done from employees
any how and treats workers as machines (Beardwell and Thompson, 2014). It follows a
autocratic leadership style wherein there is minimum communication between top and
down levels of management and workers ned to follow orders as per instructions
generated from higher authorities.
 Soft HRM: This approach believes in democratic style of leadership treating employees
as most valuable resources of a firm generating maximum returns for company and
helping in maintaining competitive edge over business rivals. The management maintains
two way communication giving opportunity to its employees to participate in decision
making process. .
P2 Strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and selection functions forms the basic and most significant aspects a
business crucial for its growth and development (Berman, Bowman, and Van Wart, 2012).
Recruitment is process of attracting , short listing, and approaching most appropriate candidates
whereas selection is concerned with interviewing the selected candidate and evaluating his
capabilities, skills and knowledge in reference to job profile criteria by applying certain
psychological and aptitude tests (Recruitment and selection process, 2018).
There are two main recruitment sources and are mentioned below:
Internal sources: It is describes as recruiting an employee from within organisation by the
means of transfers, promotion and other means. Transfer refers to shifting an employee from its
current job to other similar or different job. Promotions is shifting of a individual from its present
job position to a higher level with higher responsibilities, better prestige and more pay.
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Advantages of internal sources:
 It enhance employee morale and loyalty.
 It is less tedious and less time consuming in hiring an employee from within a firm as
management ned not follow whole process from screening to orientation (Bloom and Van
Reenen, 2011).
 It is less risky for an organization to recruit within as an employees background,
performance level, areas of specialisations and lacking are already known to manager.
Disadvantages of internal sources:
 It lead to internal conflicts among employees.
 It limits organization choice of talent a sit restricts entry of new and creative ideas from
outside more proficient person.
External sources: It is the process of hiring the most appropriate, potential an proficient
candidate from outside and organization (Bröckermann, 2012). It mainly include sources like
placement agencies, employment exchange press advertisements, campus interview, walk in
interviews and competitors.
Advantages of external sources:
 Best and most appropriate candidate could be hired according to specification of the job
profile
 It promotes entry of fresh , innovative ideas as well as to give advantage engaging insight
of other business rivals strategies.
 It induces existing employee to give their best efforts thereby promoting healthy
competition.
 Disadvantages of external sources:
 It is a time consuming process requiring lots of efforts, resources of company to be
spent on new employee on its orientation, training and development programme.
 It is risky for company to hire people from outside as skilled employees can switch to
other firms.
TASK 2
P3 Benefits of different HRM practices for both the employer and employee
Human resource management is identify as an important and necessary part for the all
organisation in order to maximise their profitability and accomplish competitive edge over
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others. In this business they play vital role in preventing risk or difficulties which can effects on
company productivity and functioning (Coff and Kryscynski, 2011). Effective practices of
human resource should be implemented to gain long term objectives and goals effectively. There
are different practices which are benefited to the employees as well as employer also. These are
explained as below:
Human resource practices for employer: There are certain practices of human resource which
benefited to the employers. These are identified as below:
Performance Appraisal system: It is essential and important part for an enterprise which assist in
identifying the employees behaviour. A better system not only destroy work related problem or
bad behaviour but also encourage workers to enhance their abilities and behaviour towards their
activity or work.
Advantages of performance appraisal: There are certain benefits of such system which are
determined as below:
 It maximise the satisfaction and motivation level among entire workforce. Such system
indicates to a worker that the enterprise is really concerned in their individual
development and performance. Manager can regularly maintain a employees performance level via this system.
Training of employers: It is important for the those workers who has less ability to perform all
task and activities in desired way. Then its responsibility of a manager to render accurate training
to workforce so that it get easy for them to perform all task easily (Daley, 2012).
Benefits of training: Some advantages of effective training to the workforce are determined
under this:
 Maximise motivation and performance among workforce.
 Enhance satisfaction level of all employers. Entire development and betterment of manager.
Human resource management practices for employee: In the organisation, employee play vital
and effective role for the development and success of company. There are different practices of
HRM and its benefits to the Employees are determined as below:
Compensation and benefits: It can be identified as a reward and fair pay that are attained by a
worker in return to their excellent work. These are divided into three parts which are show as
below:
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Direct financial compensation: It is important for the employee because in this they
received pay in different form including bonuses, wages, commission, salary provided at
specified as well as regular intervals (Guest, 2011).
Indirect financial compensation: This benefit cover entire financial reward and
management that are not considered in direct compensation. This advantage cover retirement
plans, leaves, educations and many other.
Non-financial compensation: It is another part of compensation that include
advancement opportunities and career development, work condition and environment, as well as
chances for recognition.
Benefits of compensation: It is more essential and important for employee to maintain long term
relation in the organisation. With the help of this they can easily do all work and activities in an
appropriate manner.
Training and development: It is important and beneficial for the employees to increase their
knowledge base about difficult tasks and project of the enterprise (Hendry, 2012). This practices
help them to maximise their motivation level in effective manner.
Benefits of training: There are large number of advantages of training to the employees which
are determined as below:
 To maximise their motivation as well as performance level.
 Help to accomplish their personal and professional development
P4 Effectiveness of HRM practices
HRM Practices is important and essential element which is applied by each and every
business with motive to increase their sales and reduce workforce turnover. In the ALDI there are
different number of employee and employer are work with the motive to keep strong position at
marketplace. There are different HRM practices which are support the company to achieve their
long term objectives and goals in specified time period (Huselid and Becker, 2011). These are
determined as below:
Flexibility in working hours: It is identify as one of the main and beneficial practices
which is provided by a company to its employee and employer. In this they give different option
of working which help them to maintain long lasting relation with employees. Thus, it benefited
to the ALDI to attain their set and desired objectives within predetermine period of time.
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Payment & Reward Management:- It is another part of the HRM practices which is
important for both employee and employers. Because with the help of these they can keep better
and strong relation with them. Thus, it benefited to the ALDI to increase their performance and
effectiveness at global and international level.
Training and development: It is main role and responsibility of company to render
accurate training and development to the employees as well as employers also (Lengnick-Hall,
Beck and Lengnick-Hall, 2011). It is more beneficial and significant for the ALDI to maintain
market position as well as capture large number of market share. Further, it support to
accomplish their long term targets and goals within predetermine period of time.
Recruitment and Selection: It is another part of the HRM practices in which role of
human resource manager is to apply internal and external methods of recruitment and selection.
It assist the organization to increase their performance and effectiveness in an effective and
efficient manner (Surroca, Tribó and Waddock, 2010). It further benefited to the ALDI to gain
competitive advantages and achieve long term objectives in certain time period.
Rewarding Human Resource: It is identify as a motivation factor for both employee and
employer that endeavor them to work or activity in best of their capabilities to accomplish long
term goal and target of organizational. Thus, a manager should encourage and inspire their
workforce with support of different motivation techniques and reward tools including
commission, bonus, incentives and many other beneficial tools.
TASK 3
P5 Importance of employee relations
The foundation of any firm is its people who plays a major part in making a company
successful as they are the first face of firm to whom a customers interact and it is with their
customer handling skills and capabilities that leaves a perception about a firm in the minds of
consumers (Storey, 2014). Thus, it is of utmost significance for a firm to hire most proficient
employees and to maintain amicable relationship with them by giving them opportunity to be
participate in decision making, recognizing their efforts and helping them out in enhancing their
efficiency through proper training and development, formulating schemes related to
compensation and benefits and providing them with certain monetary and non monetary rewards
(Marchington and et. al., 2016). All these efforts increases the motivation of employee making
them feel associated with firm and thus given their best efforts to complete their assigned task
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with best of their abilities within specific time limit. This practice have a two way beneficiary
effect for Aldi as at one end it encourages its workforce to be more confident to take up higher
responsibilities and face higher challenges in future and on other end other hand it will assist
company to get an advantage of innovative & creative ideas, saving its money and time,
increasing its productivity and performance ultimately contributing to its success .
Achieving set objectives within time frame : As business deals in dynamic environment
full of uncertainties and complexities, it faces certain issues typical in nature requiring urgency
in addressing them. However it is not always possible for a manager to single handedly solve
those issue or to take decision easily (Messersmith and et. al., 2011). In such situations manager
should following democratic style involve its employees in decision making process as they can
suggest some creative ideas or viable solutions and could highlight some key points that might
be missed by management. This results in company capability to take appropriate decision
lading to accomplishment of targets much faster within specific time frame.
Discourage Conflicts & Fights: When there is proper coordination, mutual
understanding among employees they to ignore each others flaws. They tends to concentrate on
their work rather than getting engage or wasting their time in meaningless conflicts and
arguments. This enhances their performance level and efficiency of doing a task in best way
Leads to increase in productivity : Aldi provides a happy, healthy and safe working
environment to its employees wherein they feel comfortable to discuss their issues, suggest or
give opinion about business related matters. Thus, having a supportive management helps an
employee to be proactive in decision making process which build up their inner confidence and
morals (Renwick, Redman and Maguire, 2013). This in return benefits company as its workforce
become dedicated and strives to work in one direction towards achieving firm's goals leading to
reduction in problems of absenteeism & turnovers making firm more productive.
Profit maximization: Having a well coordinated team of proficient employees , Aldi gets
benefited as all its tasks are completed within specific time frame with highest level of
efficiency. When company's production level is high it is able to generate high revenues an dis
able to capture high market share.
P6 Key elements of employee legislation and its impact on HRM decision making
Laws and regulations have more effects on human resource management which assist in
fast functioning between employee and employer (Salvendy, 2012). Thus, it is important for
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ALDI to undertake various regulations and legislation regulated by the government of UK so that
bran image and goodwill of the company can be developed in marketplace. It also solves
problems related to equal wages, opportunity, health and safety act etc. All these are explained as
below:
Equality Act, (2010): This type of legislation says that entire workforce should be treated
or activated in equal manner which is externally based on belief, race, gender, sexual and age
orientation (Song and et. al., 2010). All these are has great effect on ALDI, sometimes manager
is not able to reject some person even if they doesn't have the needed power because of this
legislation.
Working time regulations, (1998): This act yield the rights or power to holidays, taking
happy chance from the work and monitor the working hours. Further, it impacts business when
there is more work load and due to this manager cannot force the workforce to stay as well as
work for long period. Also, it is important for managers to render breaks to workforce in between
of the activity so that they can conferrable and reduce their tension level.
Health and safety Act (1974): This legislation yields a safe and healthy environment of
working to the workforce. Sometimes ALDI may obtain heavy cost due to workers mistake as
they do not apply the safety standard (Sarkis, Gonzalez-Torre and Adenso-Diaz, 2010). Further,
it is important for ALDI to formulate various safety elements including fire extinguisher to
minimize the hazards. Furthermore, training and development should be given to workforce in
respect to face different challenges or difficult situation at the period of incident in the company
thus, entire effects of the HRM of ALDI.
Minimum Wages act, (1998): In this act , ALDI must have to give a minimum
predetermine wages to each and every workforce of an enterprise even via they never work with
conferrable as per the standards. It is important and essential legislation which effects on
business entity to maximize their performance and profitability in an effective and efficient
manner.
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TASK 4
P7 HRM practices in an enterprise and its application
A HR manager has to undertake a variety of activities and process starting from hiring
most appropriate employees, to conducting various programs like orientation, training an
development, compensation and benefit to enhance its workforce performance level and
productivity and to look into and settle their disputes to ensure that work is been performed
smoothly as per the set benchmarks within specific limit (Shuck and Wollard, 2010). Mentioned
below is an illustration one of such activity performed by HR manager indicating process of
recruitment and selection.
Hotel receptionist training
Workshop title/ Training practices Date- Time-
Location Instructor
Candidates
Activity Time of activity Process Equipments required
Induction of candidates
Training objectives
a)
b)
Warming up
Contents and necessary
points
Job advertisement
Instructor require
Qualification Criteria
MBA/BBA in HRM from a recognised university
To apply:
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You are required to upload your application with CV and latest photograph on our websites
latest by 15 June, 2018.
Email-id: www.aldi.com
Contact no.: 00000XXXX
Job specification
Qualification Master's Degree in HRM
Bachelor's degree in business or any related
field.
Experience Should have minimum 3 years of experience
in Human Resource Management.
Area of expertise Proficiency in communication skills and
leadership skills.
Other qualities Good verbal and writing skills.
Basic computer skills.
Proficient Interpersonal skills.
Interview Questions
 Your key strength?
 Your areas of lacking?
 Extra curricular activities in which you have ever participated??
 What are your expectation from this firm?
Person specification
Particulars Required criteria Learning and outcomes
Qualification and training Knowledge about how to
communicate with new
employees
Able to perform whole
induction process.
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Experience Providing the best customer
services
Ability to work under pressure
Must have performed certain
induction process in training
sessions in college days
Skills and knowledge Excellent communication
skills
Developing and generating
innovative ideas
Personal characteristics Proactive, confident,
leadership, Team player
Developing certain skills
and traits to work in
organisational culture.
CV
Information of candidate
Name: Harry Evans
Father's name: Ronald Evans
Mother's name: Hermoine Evans
Mobile no,: 6691456123
Email id: [e-mail]
Key skills:
 Advanced knowledge of computer
 Having in-depth knowledge of concepts of Human Resources Management
 Team Builder
 Fast grasping and leaning ability
Experience:
 Goldman : Assistant to Retail Manager
 Worked as a learn leader in retail store located at Durham
CONCLUSION
From the above report it is concluded HRM plays a vital role in successful
commencement of business activities by hiring most proficient employees as per job profile for a
firm. Besides that through its various functions HRM make sure that company maintains
harmonious relations with it most valuable resources- its people i.e. customers and its employees.
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Hrm formulates various strategies and policies keeping its customer in center of focus like
compensation and benefits schemes to motivate its employee. Moreover it is key responsibility
of HRM to formulate and implement strategies as per the rules and regulations enforced by
government to protect the rights of labour.
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Shuck, B. and Wollard, K., 2010. Employee engagement and HRD: A seminal review of the
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Online
Human Resource Management. 2018 [Online]. Available through:
<https://www.coursera.org/specializations/human-resource-management>.
Recruitment and selection process. 2018. [Online]. Available Through:
<https://hr.ucr.edu/recruitment/guidelines/process.html>.
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