Human Resource Management Report: Functions, Practices, and Laws

This report provides a comprehensive overview of Human Resource Management (HRM) principles and practices, using ALDI as a case study. It begins by outlining the fundamental functions and purposes of HRM, focusing on workplace planning and resourcing. The report then delves into the processes of recruitment and selection, analyzing their strengths and weaknesses, and examining the advantages of effective HRM for both superiors and subordinates. Further, it explores the impact of HRM activities on business profit and productivity, and discusses the significance of employee relations and employment laws in HRM decision-making. The report also highlights the application of HRM practices in a work-related context, concluding with a summary of key findings and recommendations. The report emphasizes the importance of HRM in fostering positive employee relations, ensuring compliance with employment laws, and ultimately contributing to organizational success.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions and purpose of HRM which are related to work place planning and resourcing. .1
P2 Formulation of recruitment and selection along with their strengths and weaknesses..........3
TASK 2............................................................................................................................................4
P3 Advantages of human resource management for superiors and subordinates.......................4
P4 Potency of HRM activities in terms of business profit and productivity...............................6
TASK 3............................................................................................................................................7
P5 Employee relations and its impact on HRM decision making...............................................7
P6 Employment laws and their impact on HRM decision making.............................................8
TASK 4............................................................................................................................................9
P7 HRM practices and their application in a work related context.............................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
In modern world, human resource management has become most important concept of
every business enterprise. As, it helps in creating positive relations between employer and
employee. Also, it gives core attention to employee's and their skills to determine that they are
capable for achieving organizational goals or not. In case, workers have poor skills and abilities
then HRM department conducts training and development plan for them so that they can enhance
their existing knowledge and skills which can help them in accomplishing desired results (Guest,
2011). Human resource department implements various rules and regulation within to protect
and promoted worker's interests. This project report is based on ALDI which is one of the
leading retailer brand. It have more than 10,000 stores in all over the world. This project report
will highlights the areas of human resource management such as its purposes, function, elements
and practices which plays a major role in organization. Along with this, some employment
legislations will also be analyse which influence impact on HRM decision making.
TASK 1
P1 Functions and purpose of HRM which are related to work place planning and resourcing
In modern world, due to globalisation and use of technology market competition has been
increased. It has influenced wide impact on all business organizations. To survive in competitive
marketplace, it is highly important for companies to hire high skilled employees. In simple
words, with the help of effective work force enterprise can lead to high level of success. HRM
department makes various policies and strategies which helps workers by protecting and
promoting their interests within work place (Chelladurai and Kerwin, 2017). By executing HR
practices, business mangers can face all kind of organizational problems and also can create
good working environment within workplace. ALDI is a well known company because it always
focus on its human resource management and its activities. Purposes of HRM are discussed
below:
Communication: The biggest purpose of human resource management is to communicates
orders of top man to lower management, and communicates problems of workers to top
authority. In simple words, HRM work as mediator which helps in transferring information to
one department to other. By making positive working environment ALDI can make good flow of
communication which can help it in enhancing its productivity and profitability.
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Employee motivation: The most important capital of every business enterprise is their human
resources, because without them they can not accomplish their desired goals and objectives.
Human resource management helps in motivating employee because motivated work force
contributes more in organization success (Lengnick-Hall, Beck and Lengnick-Hall, 2011).
Employee relations: In modern world, market competition is increasing very fast. So,
organization have to make their employee strong enough so that they can help company in
surviving in such marketplace. This can be possible if HRM department of organization makes
positive relations between employer and employees.
Formulates various rules and policies: Human resource department of ALDI makes various
rules to control employees and implements different policies to protect worker's interests. By
defining rules and regulation in workplace HRM makes employee liable for their assigned work.
Moreover, these are main purposes of human resource management, which helps ALDI
in accomplishing its desired goals and objectives in most effective manner. There are some
functions of HRM which also helps company in its organizational growth and development,
these are given below:
(Source: Surbhi s., 2017)
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Illustration 1: Functions of Human Resource Management

Planning: The foremost function of human resource management is to make effective future
plans so that organisation can work in systematic way. With the help of HR planning, ALDI
utilise its available resources in appropriate manner which results in high profitability and
productivity.
Staffing: The other function of human resource management is to recruit and select best
candidates for vacant position of organisation. This function of HRM helps ALDI in hiring high
skilled employees which can accomplish its organizational goals and objectives in less time
period.
Training and development:This is known as most important functions of human resource
management is to determine existing skills and abilities of employees and then provide them
training and development programs, to improve their current skills so that they can operate
business activities and practices in most effective manner.
Compensation:It is huge responsibility of human resource management to provide appropriate
remuneration to employees in exchange of services performed by them.
Health and safety: In business enterprise, employee have to deal with hazardous process, so it is
important for HR managers to provide health and safety measures to their employees in chance
of any misshapen. Also, company should provide all those facilities to employees which are
required for them to be healthy.
Union relations: It is important for human resource management to build strong relations
between union members and employer so that they can cooperate with each other and also can
accomplish business goals and objectives in most effective manner.
Developing: Human resource managers of ALDI are responsible for improvement and
development of employees. In simple words, HRM conducts various training and development
programs so that workers can improve their existing skills and also can enhance their
performance in systematic way. Developed workers of company helps it in surviving in
competitive market place.
Managing change: Every organization is surrounded by its business environment which
consists of various factors which keep changes. To cope up with those environmental factors
organization have to adapt new changes which is possible only because of effective HRM
practices. In simple words, human resource management implements various strategies and
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policies within workplace so that company can cope up with micro and macro environmental
factors.
Performance appraisal: For better growth and development, HR manager evaluates and appraise
current performance of employees so that they can provide effective training and development
programs to them to enhance their existing skills and abilities
Managing relationships: Human resource management is only aspect which helps company in
creating positive relations with its employees. Industrial relations is most important elements
which can lead organization to high level of growth.
P2 Formulation of recruitment and selection along with their strengths and weaknesses
Recruitment is process through which company employ that individual who have required
knowledge and skills to fulfil the organisational goals and objectives (Ash, Hodge and Connell,
2013). In recruitment procedure organisation invite huge number of candidate for vacant
vacancy. On the other hand selection is process in which company select right person for right
job. After both, recruitment and selection process manager provide training and development
programs for selected candidate so that they can perform well within the organisation. Process of
recruitment can be done either externally or internally. There are two approaches of recruitment
and selection which are define as follows:
Internal recruitment: In this process organisation used to recruit people within the work place.
Through this method company can save its resources as well as time. Company fill vacancies by
transferring existing work power. There are some advantage and disadvantage of this process:
 Advantage: The internal recruitment help to save cost , time and resource of company.
This approach is useful to increase confidence level of existing work power and they are
already known about the different skills and knowledge of employees.
 Disadvantage: This approach is prove as biggest disadvantage of organisation as some of
the employees don't want to change their positions in work place.
External recruitment: In this method company recruit people from outside the company. This
process involve so many rounds of interviews to get right people for right place. This method
help to give big pool of candidates to company. By this method company can get so many
talented and high qualified people (Doyle and Locke, 2014). There are some advantage and
disadvantage of this method which are define as follows:
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 Advantage: Through the external recruitment company can get huge pool of candidates
which can give so many choice to company in finding right applicant. It also provide
fresh and young talent to the company who can give new knowledge and ideas for
organisational development and growth.
 Disadvantage: Its biggest weak point is that it is very time consuming process as well as
expensive method of recruitment. Many times hired employees are unable to fill the need
and expectations of organisation.
These are some methods of recruitment and selection used by company to fulfil the vacant place
within the organisation to select right person for the right place.
TASK 2
P3 Advantages of human resource management for superiors and subordinates
In modern world, almost all organisation are giving importance to their HRM department
because its helps in managing employee performance and also helps in creating good working
environment within work place, which is highly important for organisational growth and
development. Human resource management implements various rules and regulations which
helps workers in protecting and promoting their needs and wants. With the help of effective use
of HRM practices, ALDI can increase its profitability and productivity (Mathis and Jackson,
2011). In simple words, Concept of Human resource management is highly essential for
company as its provides various benefits to employees ans well as employers. Different
advantages of HRM are discussed below:
Benefits to employer: Recruitment and selection: Human resource management department helps business
mangers by providing them high skilled employees. This section operates various
activities in which recruitment and selection is most important. Because with the help of
these activities organization gets those workers who have various skills and abilities
which can help them in producing desired results. Formulating policies and plans: HRM department makes and implements various plans
within workplace which can help mangers in utilising organizational resources in most
effective and systematic manner. In simple words, with the help of strategic HR planning
employer can lead their company to high level of success.
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 Conflict resolution: Human resource management makes a positive relation between
employer and employee. Industrial relations helps in reducing chances of conflicts. Less
organizational disputes can help mangers in focusing on future growth and development. Enhance profitability and productivity: Human resource management implements plans
and procedures which helps organization in enhancing its profitability and productivity.
Also, it helps in improving employee's skills and abilities so that they can produce quality
products and services (Brewster and Hegewisch, 2017).
Benefits to employees: Learning events: Human resource management evaluates employees performance and
then provide them training program so that they can improve their existing performance.
Learning events provides lifelong learning to workers which helps them in resolving their
personal and professional problems. Compensation: Human resource department makes sure that employer should provide
appropriate compensations to employees. It makes various rules and regulations so that
top authority would not exploit their subordinates.
 Comfortable working environment: Human resource management always try to provide
effective work environment to workers in which they feel comfortable and relaxed. This
step of HRM motivates workers to contribute more in organizational growth and
development. If Employee's will work under their comfort zone then they will produce
high quality products and services, which will help Apple Inc. in providing high customer
satisfaction.
Apart from this, there are some other activities of human resource management which
provides various benefits to organization and these are follows as under:
Planning: HR department makes various plans and procedures which helps ALDI in operating
its all business activities in most effective manner which results in high financial growtha nd
development.
Staffing: With the help of this HR activity company can put right person at right place. In
modern world, due to technology and large size of business complexity of human behaviour has
changed. So it is highly important for company to manage their employees in most effective
manner. With the help of this enterprise can easily makes plans about manpower and also can
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develop them in most effective manner which will result in organizational growth and
development.
Moreover, by evaluating above mentioned points it can be said that human resource
management provides various benefits to employers and employees. As, it works for workers so
that they can produce better results which will provide various advantages to whole organization.
P4 Potency of HRM activities in terms of business profit and productivity
In present time, globalisation and use of technology are continuously incre4sing market
competition, which is huge problem for all business enterprises. They can overcome this
difficulty only if they hire high skilled employee who can face worst to worst business situations.
Aldi have such powerful and qualified work force which helps it in surviving competitive market
place. Its human resource management section provides those workers who operate
organizational functions with high efficiency and effectiveness. In simple words, There are
various HRM activities and practices which helps this company in enhancing its organization
profit and productivity and these are follows as under:
Recruitment and selection: The main function of human resource department is to recruit and
select best candidates for vacant position of company. This department conducts various
interview rounds so that it can attract a huge number of people and can select best candidate out
of them. In simple words, process of recruitment and selection helps Aldi in finding most
qualified staff members who can operate its business activities and practices in most effective
and systematic manner so that company can generate high financial profit and also can survive in
competitive market place (Kehoe and Wright, 2013). Recruitment and selection is the main
activity of HRM department . With the help of this ALDI can hire high skilled labour which can
help it in operating business activities in most effective manner, and if organizational functions
will be operated in appropriate manner then enterprise can increase level of its profitability and
productivity.
Performance appraisal and management: Other most important practice of human resource
management is performance appraisal and management. In this, HR team evaluates skills and
abilities of each and every employee after that it identify that which workers needs which kind of
training. It is highly important for ALDI to evaluate its employee's performance on regular basis
otherwise it can not improve their existing working efficiency and effectiveness. By doing this it
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can enhance their existing skills and abilities which will assist them in achieving high
profitability and productivity.
Training and development: After identifying Training needs HR team conducts various learning
events in which unskilled employee gets trained in a specific skills and ability so that he can
contribute more in organizational growth and development. If the ALDI will provide training and
development program to its employees in regular basis then they can produce high quality
products and services which can help it in enhancing its profitability and productivity because
high quality products provides great satisfaction to customer which force them to buy
organisational products again and again. This can definitely increase the profit level of this
enterprise.
Moreover, these are some most important practices of human resource management
which helps Aldi in making high financial profit and also helps in producing quality products
and services (Stahl, Björkman and Morris, 2012). HRM section helps this company in recruiting
most qualifies staff members then it evaluates their performance and at last provides them
effective training programs so that they can operate business activities in most systematic
manner. This will definitely help Aldi in increasing its profitability and productivity.
TASK 3
P5 Employee relations and its impact on HRM decision making
Employee relations means study of employment relationships. It is also called as
industrial relations which is most important function of human resource management. In this HR
team makes various efforts to build strong relationships between employer and employees. This
concept provides fair and comfortable working environment to workers employed within
organization, which helps them in operating organizational activities and practices in most
effective and systematic manner. Human resource management have responsibility to make good
relations between top management and employees (Gupta and Kumar, 2012). It can be possible
if organization will consider all needs and demands of its workers. For better growth and
development, it is highly important for Aldi to provide various facilities to work force so that
they will feel comfortable while operating organizational activities and practices. Also, it should
consider employee welfare while making important HRM decisions. By considering industrial
relations this company can get several advantages which are follows as under:
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 Enhance organisational profitability and productivity: Positive relations between
employer and employees encourage them to come and work together. They take mutual
decisions and operate organizational activities mutually which results in high profitability
and productivity. So, industrial relations are main part of organisation which should be
considered by HRM section while making HR related rules, regulations, strategies and
policies. Effective team working: If managers will make build strong relations with their
subordinates then they can lead and guide them very easily. In simple words, employee
relations also helps in team management (Devonish, 2013). So, it is highly important for
HR department to focus on industrial relationships otherwise Aldi can not lead, motivate
and guide its human resources.
 Good workplace conditions: positive relations between employer and employees also
creates good working environment in which all workers and top mangers of Aldi can run
business activities in appropriate manner.
Furthermore, employee relations is a significant part of Aldi which influence a substantial
impact on Human resource department and its decision making. Apart from this, there are some
other employee relations activities which helps in boosting worker and these are follows as
under:
 Providing some appreciation programs to employees on monthly basis so that high
performed workers can be easily recognised and appreciated.
 To provide personalised birthday cards for making them happy
 Starts suggestion program so that employees can provide well determined suggestions to
top management for better growth and development of work place.
Hence, these are some most important activities which can be performed by business
enterprise to make better connection with its employees.
P6 Employment laws and their impact on HRM decision making
In past years, employees were humiliated and exploited by their managers. Also, they
were not considered as important part of organization. High authority of organization did not
provide wages and salary to their worker according to their work. To remove this kind of
organizational unfair practices, central government has taken various initiatives. In which it have
enacted various employment legislations which must be followed by all business owners.
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Company who does not follow such laws, became liable to pay penalties and punishments in
terms on money. Also, government can cancel their registration (Guerin and Barreiro, 2016).
Aldi is well known for its ethical activities it follows various employment legislations, which are
follows as under:
Employment rights act, 1996: This act was enacted in 19996, to promote and protect employee's
interests. The main objective of this act is to restrict employer for operating any kind of unfair
activity or practice within workplace. Aldi organization do not any kind of activity which
underestimated employee's need and demands.
Sex discrimination act: The reason behind making this act was to remove sex discrimination
from all organizations. In factory system, employers used to give more importance to male
employees as compare to female workers. So, to remove sex discrimination government
introduced this legislations. Aldi is a well growing company and its gives future opportunities to
its male as well as female workers. Its HR team makes those rules which are applicable for its
men and women staff members (Gerber, Batalo and Achola, 2012).
Working time regulation, 1998: This act ensures that employees will get enough daily and
weekly rest. According to this act, employees have the right to take 28 leaves within one year.
Furthermore, these are some most important employment laws which are currently
followed by Aldi. HR department of this company makes various decisions and strategies to
consider all these legislations.
TASK 4
P7 HRM practices and their application in a work related context
Human resource management implements various rules and regulations within workplace
so that company can accomplish its organisational goals and objectives in limited time period.
There are various activities of HR practices which helps Aldi in various ways and these are
follows as under: Employee development: Human resource management helps Aldi in improving existing
skills and abilities of its workers so that they can produce quality products and services.
Employees of this company had poor skills but It HR section shave conducted various
training and development programs in which it improved technical, managerial and
operations skills of work force.
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 Performance management: HR department of Aldi continuously measures employee
performance and determine that employees are working as per the desired results or not.
Human resource team of this company always ensure that its workers are operating
business activities as per the customer requirements (Fong and et. al., 2011).
 Employee relations: Human resource management makes various efforts to make good
relationship between employer and employees so that they will work together and
accomplish all desired results of Aldi.
Apart form this, there are various HRM practices which should be implemented within
work place and these are follows as under:
Recruitment and selection: It is that practice which is operated by HR department to find and
hire high skilled employees. With the help of this, ALDI can recruit those workers who have
various skills and abilities which they can use in operating business activities and practices.
Training and development: It can be defined as process which is used by company to increase
existing skills and abilities of workers. With the help of this, ALDI can make their employees
high skilled so that they can help in accomplish organizational goals and objectives in most
effective and systematic manner.
Moreover, by implementing these practices ALDI can increase its profitability as wel as
productivity.
CONCLUSION
By evaluating this project report, it has been evaluated that human resource management
is a systematic approach which helps business enterprise in many ways such as motivating
employees, building morale, providing positive working environment and so on. HRM is
considered as most important function of ALDI because it helps it in managing its most essential
capital which is its human resources. HRM provides various training and development programs
to workers so that they can improve their current skills and competencies. This can also them in
producing desired results. So, it can be said that human resource management is that concept of
company which helps in operating business activities an practices in most effective manner. In
this report various functions and practices of human resource management has been evaluated so
that ALDI can increase its profitability and productivity. Also, some employment legislations has
been determined which is currently followed by this company to provide appropriate
environment to its workers.
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