Human Resource Management Report: Aldi Company HRM Practices Analysis

This report delves into the critical role of Human Resource Management (HRM) within organizations, focusing on the purpose and functions of HRM, including recruitment, selection, and employee relations. It examines various recruitment procedures, highlighting their strengths and weaknesses, and discusses the benefits HRM practices offer to both employees and employers. The report further explores the effectiveness of HRM in enhancing organizational productivity, emphasizing the importance of employee relations and the impact of employment legislation. Through a case study of Aldi, a major retail company, the report applies HRM practices to a real-world context, offering insights into their practical application and strategic importance in achieving organizational goals. The report concludes with a discussion on the importance of employee relations and how they affect decision making within the organization.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
Introduction:.....................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and Functions of HRM........................................................................................1
P2 Strength and weaknesses of different recruitment procedures:.........................................2
TASK 2............................................................................................................................................4
P3. Benefits to employees and employer relate to HRM practices........................................4
P4. Effectiveness of HRM practices in raising organisational productivity..........................5
TASK 3............................................................................................................................................6
P5. Importance of employee relation that affect decision making.........................................6
P6 Explain elements of employment legislations ..................................................................7
TASK 4............................................................................................................................................9
P7. Application of HRM practices in work related context of Aldi company.......................9
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management play a vital role in organisation activities. With the help of
HR manger the company has manage operations in all areas. This is very important function of
every organisation. HR department has right to conduct the recruitment ans selection procedure,
it helps to select the right candidate in right job in right time. This process helps to increase
motivation level of company employees. This HRM practices develop the favourable business
environment so more employees are give best efforts for accomplishing goals and objectives of
organisation. Aldi is largest retail store that situated in UK. Approx 1000 stores of this cited
company are operated in all over world (Huselid and Becker 2011). HR manager also focus to
maintain relationship with their employees with the help of HR practices. Aldi has established
their own HR department that helps for recruit right applicant for their job and achieve
objectives.
TASK 1
P1 Purpose and Functions of HRM.
Human resource management has take responsibility to conduct the various programmes
in organisation that helps for improving and develop the skill and knowledge of workers. The
training and development programme are enacted by this department. This also focus for
employee performance in organisation (Armstrong and Taylor 2014). This department has right
to terminate their employees in case of any misconduct arise in organisation. The purpose of
human resource management is to recruit the potential candidate and provide training to their
employees. Five functions of HRM are discusser below:
Recruitment and selection: In this process, manager has recruit the right applicant in their job.
The main purpose of this recruitment and selection process is to hire the qualified candidate with
respect to specific job. It is a positive function whereas selection is a negative process. This cited
company has determine their goals and objectives according to this plan they established their
recruitment procedure. Selection is to elect the qualified applicant from a prospective candidate.
Some organisation are also conduct the test session that helps to find out the inherent capacities
which are existed for employees. HR requirement of the ALDI can be accomplish by the HR
departments in which they conduct interviews to select new employees to giving strength to the
acts of the company.
1

Orientation: Every company has conduct the orientation programme, this helps to new
employees for easily understand the job profile. With the help of this process, new employees are
easily communicated to their existing workers. Through this programme, company has tell their
goals and objectives that helps for profitability in near future. So employees has concentrate this
purposes and give effort for fulfilling this targets.
Maintaining good working condition: This is third important function of human resource
management. Every manager has responsibilities to provide the better working environment to
their workers. They also work to maintain healthy relationship with their subordinate. So this
helps for worker to give their best efforts toward the job. The HR department has also
established the training and development programme of their workforce. They also conduct the
employee welfare programme to their workers.
Employee relation: This is most important function of every organisation. HR department has
responsible to manage the relation with their prospective employees. Manager also maintain the
relation with their subordinate. The HR department of Aldi also works to improve and develop
the relationship with their workforce. So they conduct various programmes that helps for
employee for better understand the company goal and objective. HR management works as a
mediator in the employer and employees so it helps to create a better working environment.
Demands of employees regarding to incentives and other benefits can be communicated by the
HR managers which can help to them to makes a better change.
Training and development : This is very important function of organisation. It helps to enhance
the skill and knowledge of workers relate to particular field. This function facilitate the
improvement and development of overall performance of their employees.
P2 Strength and weaknesses of different recruitment procedures:
There are two approaches of recruitment and selection that is internal source and external
source.
Internal source: This is important method for recruit most of candidate inside the organisation.
If there is any vacancy available in company, the vacant seat firstly hired to employees who are
already in pay sheet. There are various method of internal sources of recruitment such as transfer
and promotion like assistant marketing managers can be promoted in the company to marketing
managers which can help to them to retain their marketing activities with out creating a gap. In
this process, worker are shifted from one job to other similar job with the same organisation.
2

This cited company also conduct this type of recruitment activity. Employees has take
responsibility to match their skill and knowledge with their respective job, it helps for company
growth and profitability.
Transfer and Promotion: In this method, the employees are transfer from one location to other
job location within same organisation (Boxall and Purcell, 2011). In promotion, workers are
promoted from one post to another with new responsibility and accountabilities. Basically this
term means the low level are promoted to high level.
Retrenched employee: This cited organisation are recruited their retrenched employees within the
organisation. This method helps to company in term of saving cost and time because the
retrenched workers have well known the policies and procedure of company.
Strength:
Familiarity with own worker: The company is more familiar with their own staff members. It
knows their strength and weakness, so chances of any misunderstanding has reduced. It can help
to the company to maintain their regularity in their acts, with out wasting time in the training and
development programmes.
Optimum use of resource: In every company, the most important resource that is talent and skill
of people who worked in unit. They provide better employment opportunities to their existing
employees.
Economical: Company are not spend too much money, time and efforts to search for new
workers, they were recruited their employees internally.
Weakness:
Quality are restricted: Company choice are limited to appoint their workers within organisation.
The restricted number of qualified candidate are present in organisation. It decrease the input of
new talent in the organisation which can help to improve dynamics in the employees.
Inactive skills and competence: Workers feels that they were surely promote in near future, but
company are not promoted their active skill and competencies are converted into inactive, this
decline the company profitability (Bloom and Van Reenen 2011).
External source: Through this method, company has recruit their qualified candidate outside the
organisation. External recruitment helps bring new qualifies applicant that have advantage for
company. The personal representative of any company are recruited to different institution such
as college, schools and pick up one who is most competent in working of organisation.
3

Strength:
Open process: This option is attracted for more people. Aldi company also establish their
recruitment procedure for various institution.
Select right candidate: This process is mainly attractive to select the right people in right job.
Weakness:
Cost: This process increase the cost and time of recruitment and affect the decision making
process of company.
TASK 2
P3. Benefits to employees and employer relate to HRM practices.
HRM practices helps to maintain the relationship between employer and employees so
they create the favourable work environment in the company. This cited organisation has
adopted HR practices for improvements and development the profitability of company. The
Manager has to see the overall performance of their workers so they give best effort toward their
respective job. These are produce various advantages to their employer and employee so it help
to accomplish goals and objectives. There are various benefits which ALDI organisation has get
with the help of this HR practices:
Build team: Aldi has adopted this practices which helps to build team. The team has made
various strategies for accomplishing personnel and company goals. Each member of team give
their best effort for achieving particular targets. Group are work together for generate best output
in organisation. Recruitment and selection process is done by the HRM in the ALDI which helps
to develop a better team in the company.
4

Evaluate HR policies: This practices are also adopted company HR department. With the help
of this activity, manager has established various policies and procedure and evaluate it for
improve and develop the performance of employees (Ployhart and Moliterno 2011). Manager has
responsibility to take feasible actions regarding this policies.
Create positive and health work environment: Human resource manager has frame various
policies and procedures in the light of organisation profitability. They consider factors that
adverse affect the company environment. This cited organisation mainly work for eco friendly
environment.
Helps in make future planning: The HR department has assign responsibility to large number
of people, so it is easy for department to collect various information from workers. This will
helps to make future plan in organisation.
Benefits to employees:
Training to employee: Human resource management has focus the training needs of
company. This department establishes the training and development programme for their
employees to increase the knowledge and skill. By this company can improve performance
which is needed for them to compete with market rivalries.
Increase the efficiency of worker performance: Human resource department establish the
positive working environment that helps for improve and develop employee efficiency. With the
help of friendly environment, company has reduce their cost of product so more customers are
increasingly purchase products to this cited organisation.
Motivate worker: Human resource practices play vital role in organisation profitability.
The company mainly focus to enhance the motivation level of their employees through better
compensation, incentives, rewards etc. Then the workers are work with full capacity and
potentialities. This all factor helps for accomplishing organisation profitability and goodwill.
These all benefits help the manager to maintain the relation with their college's and increase
company performance.
P4. Effectiveness of HRM practices in raising organisational productivity
Human resource management is very important for accomplish organisation productivity.
The main goal and objective of every business s to make large profits. Customer is a blood of
every enterprise. Company have adopt the human resource practices that helps for business
profitability and productivity (Huselid Becker 2011). In HRM practices there are various policies
5

and procedures that help for employee performance. Organisation productivity and goodwill
mainly depends on employee performance. In HR practices, it includes roles and responsibilities
of workers and this helps for accomplishing organisation objectives and goal. The company
working method are also described this practices. This cited organisation has conduct the
training and development programme to their employees so they give best effort toward goal and
objectives.
Company has provide better products and services to large number of customers. The
training factor helps to develop the knowledge and skill of worker so they give their best for
company success. Aldi has also develop their human resource practices, so they generate better
products and services to their clients. Today, more persons are more conscious about their health
so this cited company generate organic products that helpful for human health. Human resource
department has adopt all policies and procedures for achieve better productivity. Manger has
allotted various task to their subordinates, this whole process also influenced the human resource
department. Employees has produce products and service, sometime this also affected. This cited
organisation adopt these policies and procedures for achieving profitability in long run.
6

TASK 3
P5. Importance of employee relation that affect decision making.
Every company productivity is much dependent on their employee performance. Human
resource manager play crucial role for marinating the relationship between employer and
employee. They mainly focus to risk free environment where the workers can freely exchange
their ideas and opinion with high level of manger and colleges. The manager can manage their
relationship between subordinates, it helps for decision making process of organisation. Today
business environment are of complex in nature, many internal and external factors are existed in
organisation this also adverse affect the profitability and growth of company. This cited company
maintain relationship between their employer and employees. Employees are also take part in
decision making process of company. Manager can take various decisions for maintain the good
relationship with their subordinates, these are as follows:
 This cited organisation has created their friendly environment so it helps for workers to
easily participate in decision making process.
 Manager has create goal and objective that are relevant to both employee and company
benefits, so workers has largely participate in goal setting process.
7

 The company has to make the job rotation rule so this helps for employee to learn news
kill and knowledge.
 Company also generate the feedback session, so it helps for employees to identify their
mistakes and work for improve it.
 Manager has effectively communicate to their staff members so it this helps to remove
the confusion and conflicts that arise in company (Wright and McMahan 2011.).
 Company has provide equal compensation to all their workers who are in same post , this
helps to increase their efficiency regard particular work.
 Company also conduct the training and development programme to the workers so it help
to enhance the skill and competencies of various workers.
 They also establish various perquisites such as reward, promotion, incentives, these all
factors motivate employees toward work with full capacity and efficiency in order to
accomplishing goal and objectives.
These all factors helps company to manage their relationship between superiors and
subordinate. If the fair working conditions are created by company then it improve and develop
the morale of employee. These things are encourage the motivation level of their employees. The
employee performance helps to make decision process of organisation effectively and efficiently.
P6 Explain elements of employment legislations
The government has impose various legislation and rules in organisation. These policies
define the roles and responsibility of workers and their manager toward each other. Human
resource decision making process are influenced by various laws and legislation. Sometime
small size enterprise are exempted from this rules and regulation that imposed by government.
There are various elements of employee legislation and its impact that affects decision making
process:
Anti-Discrimination act: According to this act , the company has prohibit discrimination
against all employees in term of race, religion, caste,sex, national and culture. As per this act,
those organisation employees 15 or more workers in everyday during the current year have come
under this act. This cited company are covered in this act. Employers has no right to terminate
their workers on the basis of caste, colour,creed and religion (Kehoe and Wright 2013.).
Organisation has recruited their worker on the basis of skills and knowledge not discriminating
factor.
8

Wage and hour act: According to this act, it is necessary for company to give minimum wage
to their employees, amount which are mentioned in this act. Human decision making process are
largely influenced because manage has regularly verify the wages paid to employees. They also
see the employee do their work with full capacity and potentialities.
Leave provisional act: This act applies for those employees who take 12 week leaves of unpaid
leaves in year for various purposes such as any serious health condition of worker (Daley D.
2012). This helps the decision making process of HR department in away they conduct training
and development programme that gives training to their workers and managers for a
accomplishing goal and objective.
Medical and disability: As per this act, every company has provide various medical facilities to
their employees. This act prohibit discrimination among employees on the basis of disability.
The company has provide various accommodation facilities to their workforce especially those
are handicapped due to accident.
Human right act: According to this act, the company has provide equal employment
opportunities to their workers. They recruit their workers in term of knowledge and skill not
discrimination factor. Aldi has mainly focus for human right that are free from any restrictions
that are imposed by regulatory bodies.
TASK 4
P7. Application of HRM practices in work related context of Aldi company.
Human resource management play very crucial role for manage the organisation
activities. Company workforce are regard as valuable asset. Aldi has suffered from crises that
they generate low quality commodities. More employee are leave their job because of low wages
has paid. Company has adopt various human resource practices that help to overcome crises.
Planning: Company has adopted this practices that help to identify the requirement in
organisation. This cited company has recruit qualified and skilled applicant that helps for a
accomplishing productivity and profitability.
Decision making: These practices helpful for decision making process. Manager has collect all
information from various department that helps to make decision process. Manager has made
quick and efficient decision for solve various problems.
9

Development and training of worker: Company has establish training and development
programme that helps to improve and develop the skill and knowledge of worker. With the help
of this programme, employee are easily face many complexities tat happened in future.
Maintain quality of product: Human resource practices helps the company to increase the quality
of product. These all factor helps to improve and develop productivity and profitability in near
future.
Performance evaluation: Manager has responsibility to evaluate the performance of workers so
any deficiency has found, they work for reduce this defects. With the help of review process,
company has easily identify the worker knowledge and skill in particular area. This cited
organisation mainly focus to produce organic products that helps for company growth and
profitability.
Creation of vision and mission: The organisation has create vision and mission statement. The
business plan and strategies are made for accomplishing goal and objectives. Aldi has made goal
and objectives that helps for accomplishing the vision and mission stalemate of respective
company (Wright and McMahan 2011).
Job description: It means that this cited organisation write specific description related to job
context. They also define goals and objectives to their applicant , that helps employees can
achieve only that manner.
Social media recruitment: Aldi established various techniques for interviewing procedure such
as video interviewing, telephonic interviewing. This cited organisation also establish the tracking
system that are beneficial for company to recruit and hire skilful candidate.
Employees specification: The recruitment and selection procedure helps to identify the
applicant who are expertise in various field. Company has access their worker in fair and
objective manner (Purce 2014). This helps to company that they compare all candidate against
each other and elect best option as possible.
10