Human Resource Management in Aldi: Analysis and Recommendations

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within the Aldi company. It begins by outlining the purpose and functions of HRM, including workforce planning, recruitment, motivation, and employee retention. The report then delves into the strengths...Read More

Human resource
management

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1.......................................................................................................................................3
P1 The purpose and functions of Human-resource management in Aldi..............................3
P2 The strength and weaknesses of different approaches of selection and recruitment in
Aldi company.........................................................................................................................4
TASK 2 ......................................................................................................................................6
P3 Benefits of different HRM practices in Aldi organisation...............................................6
P4 Effectiveness of different HRM practices in Aldi organisation.......................................7
TASK 3.......................................................................................................................................8
P5 Importance of employee relation which influence the HRM decision making of Aldi
organisation............................................................................................................................8
P6 Key elements of employment legislation and impact upon HRM decision making of
Aldi organisation...................................................................................................................9
TASK 4.....................................................................................................................................11
P7 The application of HRM practices with a work related context in Aldi organisation....11
CONCLUSION .......................................................................................................................12
REFERENCES.........................................................................................................................13

INTRODUCTION
Human resource management involves all the activities which are related with the
employee-employer relationship and manage all the activities in the organisation. HR has
more responsibility in the organisation and they provide the employee compensation to
motivate them towards there work (Adeniji, Osibanjo and Abiodun, 2013). They conduct the
training and development programme for new and existing employees to increase their
efficiency. Present report is based on Aldi company which is largest supermarket in retail
stores. This company provides more expensive product such as electronics, tools and
appliances or gifts items and many more. Furthermore, the purpose and functions of human
resource management has been described of this company. Along with this the there are
different benefits of HRM practices has been discussed. There are some key elements of
employment legislation which have to be considered by the company for the benefits of the
employees.
TASK 1
P1 The purpose and functions of Human-resource management in Aldi
In Aldi organisation the purpose of the human resource management is important in
workforce planning (Armstrong and Taylor, 2014). The HR manager have to identify the
current and future needs of the employees and company to meet out with the objectives of the
company. The another purpose of the human resource manger is to do the planning with
intelligence to considered the internal and external factors which help the to achieve the
objectives of the organisation timely. At the time of work force planning HR have to
motivate the employees to increase their efficiency and knowledge towards their work.
The functions of human resource is mainly focus on the needs of employees in the
organisation. The manager of Aldi organisation has struggle with the process of work force
planning due to involvement of the aligning talent management with the business objectives
(Human Resource Management: Definition, Objectives & Responsibilities. 2017). The
functions of HR manger in organisation has been described below:
Recruitment – The main function of HR is to recruit the potential employees for the
organisation. The manager can post the vacancies through the advertisement. Recruitment is
also process individual have to fill the job vacancies in company (Bloom and Van Reenen,

2011). The managers have to advertise the job positing and conduct preliminary interviews
and coordinate with the mangers and they are responsible for making the final selection of
candidates.
Work force planning – The managers have to identified the needs of the employees
and company needs so that they can achieve the goals with in stipulated time period (Boxall
and Purcell, 2011). It is the major responsibility of HR to conduct the training and
development programme for new and existing employees whenever they need in the
organisation.
Motivation – In Aldi organisation HR manager encourages the employees to
participate in the management activities. It encourages the employees to give their best
possible outcomes. The mangers have to provide some benefits to employees such as
compensation benefits or package which encourage them in the organisation.
Retention of employees – It is the responsibility of the mangers to retain the
employees for a long period of time. They have to ensure that the employees are working in
safe environment. By ensuring them it is easy for them to retain the employees for a long
period of time (Bratton and Gold, 2012).
Compliances – The critical function of HR is to compliances with the labour and
employment laws. The mangers have to compliance with these to laws so that they can avoid
unfair employment practices, general dissatisfaction with working condition of employees at
work place. The mangers must know about the some employment laws such as National
Labour Relation Act, Minimum Wages Act and so on.
P2 The strength and weaknesses of different approaches of selection and recruitment in Aldi
company
In every organisation recruitment is fundamental method for human resource
management and planning process. Recruit is the process of to encourage the potential
candidate so that they can apply for the existing or anticipating job opening in the
organisation. There are some approaches for recruiting potential candidates for the
organisation. These process may be time consuming for the company or may be very
expensive for them (CHUANG and Liao, 2010). The following are the different approaches
of recruitment and selection such as internal and external approach which can be used by HR

manager of Aldi. These approaches help them t select the potential candidate for the company
to fill the job vacancy. These approaches has been described below:
Internal recruitment approach - This is the opportunity for the employees who are
working in the organisation only. Through this approach the existing employees can change
their job position in the company. The manager have to give notice to current employees
about the vacancy of job. This method reduces the budget and it is very not expensive for
organisation. While using this method it promote the employees and raise morale support so
that they can increase their work efficiency. But there are some strength and weakness of this
approaches are as follows:
Strengths -
 It saves the times of manger to recruit candidates form outside organisation (Coff and
Kryscynski, 2011).
 It also not expensive because they does not have to advertise about the job vacancy in
newspapers, newsletters etc.
 It reduces the cost efficiency of the organisation because employees are selected form
the organisation only.
Weaknesses -
 The managers are not support to select the potential employees form outside the
environment.
 The employees who are working in the organisation they already know about the
company strength and weaknesses so that existing employees will not increase their
efficiency towards there work.
 The mangers can do partiality with new and existing employees.
External recruitment approach – This is the opportunity for the outside candidate to
fill the job vacancy in the organisation (Cullen and et. al., 2014). The manger can use various
sources of the advertisement to recruit the potential employees. The mangers can advertise
the job vacancy in newspapers, radios, newsletter and many more. This recruitment approach
help the organisation to bring the new potential employees and they can provide proper
training and development programme to them. The strength and weaknesses of this approach
are as follows:
Strengths

 The managers are able to select the potential employees from outside the organisation.
Through this the mangers can get the new and innovative ideas from them which can
provide wider benefit to existing employees (Daley, 2012).
 Aldi covers the wide range of location to find out the employees from different areas.
Weaknesses
 It is lengthy and time consuming process for the managers.
 It is difficult for the mangers to select potential candidates from the various
applications.
 It consumes the time of human resource management to handle the candidates and
provide training and development programme according to there job profile.
TASK 2
P3 Benefits of different HRM practices in Aldi organisation
In cited company human resource department have to recruit the potential employees
for the organisation. There are many practices of human resource management which can be
applied in organisation. The mangers of company should have proper knowledge regarding
the maintain of relationships between the employees (Farndale, Scullion and Sparrow, 2010).
It is the duty of HR manger to maintain the relationships between the departments which help
them to achieve the success of the company. The practice of human resource management
includes some activities like performance appraisal, reward system, career management,
talent acquisition and many more. The benefits of HRM practices is the concerned with
organisation objectives and goals which has multiple advantages and benefits for the
company. The managers of Aldi organisation have to support the employees, if they are
facing any problem regarding their work. It the duty of the manager to resolve their issues
and to keep them happy in the organisation. The mangers can take ideas form the old and
existing employees for the innovation of products and services so that they satisfy the needs
of customers. While providing the proper training and development programme to staff and
employees then they can deliver the best services to customers and convey the messages of
the company regarding the products and services (Fee, 2014). If the staff are behaving well
with customers then it can attract a large number of customers and can maximise the profits

of company. It is important for HR manger to create the harmonies at work place for the
benefits of employees and organisation.
The HRM practices make to make the higher profits for the shareholders so that they
retain in the organisation for a long period of time (Gruman and Saks, 2011). The benefit of
HRM practices can also build a team which includes the board range of stakeholders like
customers, employees, government and so on. The manger monitor all the results at the end
of year to evaluate the performance of the company with last year. While doing so they can
take appropriate decision to improve the company efficiency and get the best possible
outcomes from their resources. The mangers have to gather the information form different
places about the products and services or their competitors. The mangers are focusing on
some strategies which can applied in the organisation for the achievement of business
objectives. The top management authority of Aldi company have to regular communicate
with the lower and middle level people so that they can came to know about the company
visions and mission properly. The HR manger have to provide proper training and
development to employees which will easy for them to know about the company code of
conducts, rules and policies. The health care benefits of the HRM practices takes the pulse of
the company and their competitors (Guest, 2011).
P4 Effectiveness of different HRM practices in Aldi organisation
The impact of human resource management practices on business performance is may
be negative or positive. The practices involved comprehension employment recruitment and
selection procedures, incentives compensation for the existing employees and to provide the
training and development programme to new and existing employees to increase their
knowledge and efficiency and many more. This helps the HR manger to retain quality of
employees to achieve the business objectives. The HR manger face many problems in the
organisation to gain the competitive advantage in the market. The aim of HRM practices is
that to tackle with difficulties so that they increase the efficiency of employees at work place.
Aldi company have to proper use the structure of HRM practices so that employees can retain
for a long period of time (Harzing and Pinnington, 2010). There are various different HRM
practices which has been used in the organisation such as recruitment and selection process,
performance and management activities and so on. The employees of Aldi organisation faces
many problem in factory so they have maintain the regular communication with the top

management so that they can resolve their issues on time. The practices of human resource
management help the employees to increase their knowledge and efficiency of there work.
The approach of HRM is supported by the development and validation of the instrument that
reflects the system of high performance of the work practices which are adopted by the
business entity.
The proper coordination is to maintain between the different departments so that they
can provide the better quality of products and services to customers (Hendry, 2012). The
session of proper training and development programme is conducted in the firm so that staff
and employees can provide the better quality of services to customers. The HR manger have
to coordinate with the marketing department so that they can identify the needs of customers
and recruit the people for the job vacant in the company. In modern era, there are many
competitors of this company such as TESCO, Primark and many more so they have to train
their employees properly to provide effective quality of services to customers. It the major
responsibility of HR to cope up with all departments which helps them to achieve the targets.
The mangers has been conducted the employment activities in the organisation so that ever
employee participate in these activities. These activities are related with their work so that it
can increase their knowledge about their work and give best possible outcomes. The mangers
are motivating the employees by giving rewards, incentives to increase their efficiency
(Human Resource Management Function. 2017).
TASK 3
P5 Importance of employee relation which influence the HRM decision making of Aldi
organisation
In Aldi organisation the relationships between the employees and HR is very
important. A strong relationships between them give a success to the company in relation to
satisfy the needs of customers (Huselid and Becker, 2010). Often, the core values between
them is drastically different and its difficult for them to find out the common ground to
maintain the relations with them. In cited company strong employee relation require the high
productivity and human satisfaction. Generally in organisation the employee relation deal
with avoiding and deal with issues which are facing by the employees which influence the
work scenario. The strong employee relation signifies that employees are feeling positive in

the organisation and identifying their positive attitudes towards the work. There is a
responsibility of HR to maintain the good relation with employees so that they provide the
best results from there work. The human resource manger have to provide different
opportunities to employees which will increase their knowledge and efficiency and motivates
them. The organisation have maintain the good relations with employees to retain them for a
long period of time (Iles, Chuai and Preece, 2010). The HR plays a professional role in
binding the employees together. The following are some importance of employee relation
which influence by the HRM practices in Aldi company:
 The HR have to take decisions according to the needs of employee also. On the other
side, healthy employee relation reduces the problem of absenteeism at work place. If
the HR does not considered any decision in case of employees then they adverse the
results of the company.
 The creating of productivity and pleasant work environment, it encourages the loyal
workforce of employee towards the business. The workforce improves the employee
relation.
 For the employees it is very important to secure the jobs so that they can feel safe
and maintain the good relation with others (Kehoe and Wright, 2013).
 There are many departments in the company so it is the duty of HR to maintain the
employee relation of each departments so that they can provide the better quality of
results to customers as well as to organisation also.
In Aldi organisation the mangers should make continuous interaction with the
employees so that they all are aware about the company policies, procedures and laws which
are followed by the enterprises. The HR should take the feedbacks from the employees to
maintain the good relations with them. The strengthen of employee relation can achieve the
business objectives and can beat in the competitive market. The practices of human resource
management can maintain the good relation with in the organisation can the company can get
the success in the competitive market.
P6 Key elements of employment legislation and impact upon HRM decision making of Aldi
organisation
There are various key elements of employment legislation which have to be
considered by the company (Kraaijenbrink, Spender and Groen, 2010). It assures the job

security of the employee in organisation and it protect them against the malpractices at work
place. When the HR is taking any decisions for the employees, they have to considered about
the employment laws which gives them benefits and encourages towards there work. While
considering the employment legislation laws it covers all the aspects which are related with
the workers compensation, retirement income insurance and many more. The decision
making of human resource management must explore with some laws, rules and regulations
and governing entities which must be comply with the HR in organisation (Meredith Belbin,
2011). The following are some rules and regulations which impact upon the HRM decision
making.
Civil Right Act of 1964, Title VII – This act are related with the employers from
discriminating against employees on the basis of colour, race or national religion. While
recruiting the new employees human resource manger must be fair in hiring the qualified
candidate without any discrimination among them.
Equality Act 2010 – The aim of this act to provide effective legal framework for
preventing the discrimination in the organisation. The following are some characteristics of
this act which have to be considered by HR while making any decisions for employees or
recruiting the new candidates (Purce, 2014).
Age – The manger does not discriminate any employee according to their age in
organisation. They should give them a equal opportunity to perform their function well. But
there some grounds in Aldi company which directly and indirectly impact on the age of
employees.
Gender reassignments – This act provides the protection to the employees from the
transsexual people. The HR manger should be aware about this that there will be no longer
requirement these person in organisation.
Disability - This act is made for the employees to show that they are not disabled and
protected from the disability discrimination. The HR manger is required to make reasonable
adjustments when they are recruiting, selecting the disabled employees. This act also includes
a new protection form discrimination arising form the disabled people in the organisation.
Marriage and civil partnerships – This Act protect those employees from the
discrimination who are married (Shuck and Wollard, 2010). The HR person have to give
some advantage to them in organisation in regards to their works, salary and so on.

Affirmative Action – This Act is set for the policies that address the people who are
mainly minorities at the work place. According to the Civil Right Act 1964, the affirmative
action policies shall establish some hiring quotas for companies (Top 10 Best Practices in HR
Management. 2016). The HR manger have to meet with some criteria which required in
hiring the new employees or protect the people in groups.
In Aldi company induction is a good way to make new policies which are related with
employees so that they cam to know about the company code of conducts (Stahl and et. al.,
2010).
TASK 4
P7 The application of HRM practices with a work related context in Aldi organisation
The application of HRM practices in organisation is very useful to select potential
employees for the company. The HR manger have to recruit the potential employees when
job vacancy arises in company. They are using various techniques for the post of job vacant
in the organisation. The new and innovative ideas are generated from the new employees so
that they can implement on he objectives of the company. For example, if a manger wants to
select new candidate then they have give post on newspapers. After giving the advertisement
on newspaper the manger have to check the qualification of the employees who are giving
their application for the job profile (Vörösmarty and et. al., 2010). If the qualification is
suited for the job vacancy then the manger will forward their curriculum vitae to top
management for calling them for the interview. The Human resource manger have to use
proper rules and regulation for the selection of employees in the organisation. On the other
side, the manger has to use the new and modern technologies for the recruitment of the new
candidates. Hence it will easy for them because while using the new technologies it saves the
time of mangers. The using of new technologies help the manger to check the routine work of
all employees so that they can make appropriate decision for implementing new strategies.
The HR manger can collect the information for other to know there competitors that services
and products they are offering to customers. The information can be collected in the form of
primary and secondary resources. The primary information helps the organisation because
these information are reliable and can easily identify the strength and weaknesses of their
competitors (Wright and McMahan, 2011). On the other side, if the information are collected

from secondary data then mangers can not easily find out the strength and weaknesses of
competitors. Further, it depends on the company that which source of information they are
using to identify the needs of customers. The HR manger have to considered some employees
act for giving them benefits which encourages them to increase their efficiency and
knowledge towards their work. At last, there should be at least one person in every
department so that they encourage the employees and company can achieve their targets with
in a stipulated time period (Zheng, Yang and McLean, 2010). If the mangers are using proper
HRM practice technology then they can not be lead in the market and can not retain the
employees for a long period of time.
CONCLUSION
After summing up the report it can be concluded that human resource department
have to mange all the activities in the organisation so that employees can perform the
business function properly. The mangers are conducting a proper training and development
programme for the staff so that they can deliver the best services to customers. In the
organisation there is strong relationship between the employees and human resource
management and it is easy for them to communicate effectively with employees. The HR
manger should know about employment legislation laws so that they can provide benefits to
employees. While doing do it encourages and motivates the employees and give their best
results to achieve the targets of the company. Aldi organisation have to follow some rules and
strategies to resolve the issues of employees with in a stipulated time period.

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