Analysis of HRM Strategies and Practices at Aldi Supermarket, UK

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Aldi, a leading supermarket chain in the UK. It begins by outlining the purpose and functions of HRM within the organization, including workforce planning, recruitment, and employee training. The report then explores the strengths and weaknesses of various recruitment and selection approaches, such as internal and external recruitment. It further details the benefits of HRM practices, including improved employee relations, increased flexibility, and enhanced worker motivation, and how these practices contribute to increased productivity and profitability. The importance of employee relations in the decision-making process is discussed, along with the key elements of employment legislation and their impact on HRM decisions. Finally, the report applies HRM practices to a work-related context, offering practical insights into how Aldi manages its workforce to achieve its business objectives. The report emphasizes the impact of various HRM practices on the overall organizational performance and provides a detailed overview of Aldi's approach to workforce management.

UNIT 3 HUMAN
RESOURCE MNG

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 ...................................................................................................................................................1
Purpose of HRM and functions in planning of workforce..........................................................1
TASK 2 ...........................................................................................................................................2
P 2....................................................................................................................................................2
Strength and weaknesses of various approaches in recruitment and selection process..............2
TASK 3............................................................................................................................................4
P 3....................................................................................................................................................4
HRM practices benefits...............................................................................................................4
TASK 4............................................................................................................................................5
P 4....................................................................................................................................................5
Effectiveness of HRM practices in increasing productivity of organisation..............................5
TASK 5............................................................................................................................................6
P 5....................................................................................................................................................6
Importance of employee relations in influencing HRM decision making .................................6
TASK 6............................................................................................................................................7
P 6....................................................................................................................................................7
Key elements of employment legislations and its impact on HRM decision-making................7
TASK 7............................................................................................................................................8
P 7....................................................................................................................................................8
Application of HRM practices in work related context .............................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................11

INTRODUCTION
Human resource management in any organization is the management of employees
working in the company. Human resources manages work force and their performance in the
organisation. Their work includes hiring workers, giving rewards, staffing and retention of
employees. Aldi is one of the leading supermarket grocery chain in the United Kingdom. It has
approximately 10,000 stores in more than 16 countries. The organisation was found in 1960.
Present study describes about the functions and purpose of human resource management in the
organisation. Strength and weaknesses of HRM in the organisation has been explained in the
report. Benefits of HRM practices and it effectiveness in the Aldi has been illustrated. Further
more, impact of human resource in decision making process of the company has been discussed .
The key elements of employment rules and its impact on decision-making process has been
discussed. Application of HRM practices in work related context are also illustrated.
TASK 1
P 1
Purpose of HRM and functions in planning of workforce
Aldi is one of the largest grocery supermarket chain in the UK (Aldi. 2016). Main
purpose of HRM in the organisation is to manage the workforce, making plans and policies and
provides training to employees (Buytaert and et.al, 2014). It is an essential part of any enterprise
to develop and maintain relationship with people working within the enterprise. The major role
of human resource is recruitment and providing training to hired candidates so that they can
work effectively in organisation. There is role of human resource in decision making process
also. Function of HRM in any company are managerial, operative and advisory functions.
Functions of HRM in Aldi is as follows:
Managerial functions
Managerial function includes the following: HR planning: In this function HR of the organisation identifies type and number of
workers required to achieve goals of company. They conduct researches to collected
information and analyse the need of employees (Chuang, Jackson and Jiang, 2016). Organising:In this function human resources allocate task to staff members. All the
activities are organised in such way that goals of the company can be accomplished.
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 Directing: This involves providing guidance to workers so that they can work effectively.
Potential of the employees is determined through motivational approaches. Controlling: In this part individual's performance in the organisation is evaluated. HR
professionals examines performance of the workers in order to provide them further
training.
Operative functions
Operative function involves the following: Recruitment: In this function human resources of the organisation recruits candidates and
selects the best suitable employee for the company (Cooper and Quick, eds., 2017). They
select skilled candidates who can help in accomplishing goal of the enterprise. Analysis of Job: In this function HR's role is to design and analyse the requirements of
job. Specifications of the job are described by them. Performance appraisal: This involves appraisal to employee to ensure that their
performance is at required level. Training: Training is given by HR professionals in order to acquires skills in employee
so that they can perform job in effective manner. Salary management: HR identifies the salary/ payment for each employee for their
respective posts. Wage administration is also done in this phase.
Advisory functions
These functions of HR involves discussion with top management of the enterprise
regarding policies and procedures of the Aldi. They also gives suggestions to different
departments like analysis of job, selection, placements and training.
Q. How HRM functions helps in workforce planning and resourcing?
Before establishing any organization it is see that how many human resources are required in the
organisation and according to that the employees are being hired and the planning of the
resources is been done and according to that the work is been divided into the employees and
planning process starts with the starting of the organisation and thus the people re being hired .
The main functions of HRM is human resource planning and human resource development.
These two functions are being performed and thus proper workforce is been organised in the
company. Such employees are hired who have good skills so that more and more production is
been done and thus more profit increases.
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TASK 2
P 2
Strength and weaknesses of various approaches in recruitment and selection process
Human resource of the company recruits and selects employee for the Aldi. There are
various approaches used by HRM of the Aldi in recruitment and selection process. Following are
the approaches and their strength and weaknesses:
Internal recruitment
In internal recruitment process HR of the organisation looks for hiring the internal
employee for filling the vacant post. In general exiting worker are promoted to the vacant post
for the vacant positions. This method of recruitment provides easiest way in selecting employees
for the company (Doherty, Haugh and Lyon, 2014). This source of recruitment is important as it
provides opportunities to employees who are familiar with the company. In this process of
selecting candidate current employees are transferred and upgraded to the posts. Employee
referral tool is also used in this process for hiring candidates at low cost. Strength and
weaknesses of internal recruitment is as follows:
Strengths
 It is a cheap and quicker method of recruitment and selection process.
 Employee are known with working environment of the organisation so it becomes
easy for company to provide them training.
 Business operations are already known to employees which help them to work
easily and effectively.
 It provides opportunities to workers for getting promotion within the company.
 Organisation already knows the strengths an weaknesses of the employee so it
becomes easy for HR to provide them training.
 In this process of selecting candidate current employees are transferred and
promoted to the posts
Weaknesses
 This process limits the number of suitable and skilled candidates.
 It restrict the chance of getting new ideas from new employees. It limits creative and
innovative thinking.
 It cause conflicts among employees who are not promoted to higher positions.
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 Internal recruitment creates another vacant position in the organisation which is required
to be filled.
External recruitment
In this process of recruitment candidates are hired from outside of the company. External
sourcing is concern with recruiting candidates by using tool such as advertisements, job
announcements, referral programmes and advertising on website of the organisation (Ellison and
Boyd, 2013). This method provide an opportunity to external candidates who re not experienced.
Innovative ideas also comes from new employees which help in growth of the company.
Strengths
 New people brings innovative ideas in company.
 Large pool of employees from which HR can find best candidate for the organisation.
 Wide range of experience is found in people.
 Skilled candidates are hired.
Weaknesses
 This process requires lot of time and money.
 Advertising and job posting costs high for the organisation.
 Selection process sometimes does not prove effective to find out the best candidates.
 Large amount of money required to provide trainings to new candidates.
TASK 3
P 3
HRM practices benefits
The employee's can perform in a positive as well as negative situations so the human
resources practices are also made according to the work done by each employee.
Positive behaviour promotion
HRM practice help in promoting positive thinking among employees. Positive
environment helps in keeping workers happy and productive (Geissler and Powers eds., 2017). In
wider sense these practices supports in reinforcing behaviour of employees which in turn help
employer also. These practice support workers for improving their behaviour at workplace.
Employer/ employee relations
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HRM practices focuses on establishing good relationship between employees and
employers. Human resource of the company consider the requirements of both employer and
employee. This help in generating good employee relations.
Developing employees
Human resource management activities supports in encouraging and motivating
employees. They help in developing worker by conducting various training and skill
development sessions. These skills and knowledge in workers support in increasing the
productivity of the business (Hislop, 2013). This helps in gaining competitive advantage.
Increased flexibility at workplace
HRM practices helps in reflecting changing demographics at the workplace. Diverse
conditions of workplace are regulated by by human resource activities so that employee can
work comfortably in at the workplace. Flexible design of workplace support workers in working
effectively. HRM practices schedule work and work team so that staff member can provide their
best in working.
Workers Motivation
Performance of employees must be maximized by managers. Successful managers of the
company implement human resource practices. These practices supports in increasing feeling in
employee of being competent. Worker who work under positive environment always feels
motivated.
Benefits of training and development
HR of the organisation provide trainings and education to employees so that they can
perform their job effectively. These skill training programs help employees ion developing their
career. Further more, payroll and employee welfare programs are also conducted by HRM which
in turn benefits both the employer and employee of the organisation. TASK 4
P 4
How productivity changes according to the human resources practises.
Human resource practices are very effective in increasing the productivity and profit of
the Aldi business organisation (Hoekstra and Wiedmann, 2014). Various strategies are made by
human resources of the company which in turn increases the productivity of the enterprise. HRM
practices also provide job satisfaction to employees. This increased satisfaction level in
employees motivates them in enhancing their productivity. Employees give their best and hence
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company's profit and productivity get increased. HR professional selects the best candidate who
posse enough skills and talent to fit in job. These skilled workers increased productivity of the
company by providing best quality work. Suitable recruitments supports Aldi in increasing its
profitability.
HR of the organisation provides various kind of rewards to workers which motivate them
to perform better. This reward system program also increased productivity of the company.
Human resource also improves working style of people which provides effective work from
them. This enhanced performance of workers increases profit of the organisation. Bonus and
rewards provided by HRM practices augments employee's performance. It build confidence in
workers which improves their productivity. Improved outcomes from the employees supports in
raising the productivity. HRM practices also involves strategies for company to increase the
productivity. They guides and make plans for organisation so that current system of working can
be improved. Improve process of working positively impacts the productivity which results in
increased profits.
HRM encourages employees to provide their innovative ideas. They promote employee
participation in decision-making process so that effective decision can be made with the creative
ideas of staff members. HRM practices also gives feedback to workers regarding their work.
These feedbacks helps in removing the flaws in work of employee. This improved working style
increases productivity of the organisation (McDermott and et.al, 2013). Improved outcomes from
the employees supports in raising the productivity Strategies made by HR supports in making
effective decision which can improve productivity and profit of the company.
TASK 5
P 5
Importance of employee relations with reference to decision making process.
Employee relations are very significant in decision making process of Aldi. HRM of the
company should establish good relationship with employee so that their decision making
process can be effective. At workplace there is need of good relationship with employee. There
are various problem arises in company which can not be solved alone and decisions can not be
made by organisation (Minbaeva and et.al, 2014). HRM decision making also needs guidance
while making decision for the organisation. Workers in the company may bring out innovate
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ideas which can help in making effective decisions. Good relations with employee are ned to be
maintained so that they can give creative ideas in accomplishing the targets at faster rate.
Employees can also correct the decisions of organisation by their creative ideas. If
company do not posses good relation with staff members then there is possibility of decision to
be wrong. Healthy relationship with employees also reduce the chances of conflicts at
workplace. Employee relation also influences the productivity in the company. Employees feel
motivates when they get a chance to be involved in decision making process. Relationship with
worker indirectly determines the success of the business organisation.
Morale of the company also increases due to active engagement of workers in decision
making. Gap between employees and employer also reduces due to high level of employee
relation and their involvement in decision making. As the workers participate in decision making
they feel their importance in the company. Good relation with workers increases the motivational
level (Chuang, Jackson and Jiang, 2016.). HRM decision making also needs direction while
making decision for the organisation. Workers in the company can bring out innovate opinions
which can help in making impressive decisions. It is must to share good relation with employee
company never know when it needs them. Loyalty among workers also increases due to good
employee relationship. Employee turnover also reduces by in them in HRM decision making
process.
TASK 6
P 6
Key elements of employment legislations on decision-making process.
There are various legislation and laws made for employment in UK which affects the
HRM decision-making process of Aldi. Here are some acts and legislations which must be
considered by human resource of company during making decision for employees. Employment rights act 1964: This act restricts discrimination of employees on the basis
of wages and salary. This act describes that employee mus be paid with amount which
was entitled during employment (Employment laws. 2016.). Workers should be entitled
with national minimum wage system. It also provides protection to employee against
slanted dismissal at workplace. This legislations must be taken into account by human
resource management of the organisation while making decisions for staff workers. This
can impact HRM decision-making.
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 Gender discrimination act 1975: This can protect workers against discrimination on the
basis of sex . This act protects employees against being judged on the grounds of gender
in job advertisements, selection and recruitment. HRM can not promote employees by
using gender as the basis of it. It should be considered by Aldi's human resource because
it can affect their decision making. Labour relation act 1930: This act provides rights to employee to join trade unions and
communities made for them. This legislations must be taken into account by human
resource management of the company while making decisions for employees. Equal pay act 1970 : This legislation involves guidelines for human resource of the
organisation to pay equal salary to both men and women who are working on same post.
Both men and women employee in the company should be judged on same scale. This
must be thoughtful for Aldi's human resource because it can affect their decision making. Race relation act 1976: This act protects worker of the company to on being judged on
the grounds of colour and race (Employment laws. 2016.). This act prohibits racism in
the organisation. Co worker cannot harass a person due his/ her body colour. This
legislations must be taken into account by human resource management of the
organisation while making decisions for workers.
 Wage and hour: This act provides guideline that every worker should be given wages
according to minimal wage system of the country. These wages should be revised by
human resources timely. HR professionals of the organisation should continuously verify
the amount which is being paid to them. Further more, this act also describes that there
should be proper working hours for employee. Worker who works overtime should be
provided with incentives and there should be not adulterates in this. Failure of this cat in
the organisation can lead to penalties. This must be thoughtful for Aldi's human resource
because it can affect their decision making.
TASK 7
P 7
HRM practices in work environment
Human resource management practices have high applicability in the Aldi organisation.
HRM of the company conduct various practices which are applicable to work related context of
Aldi (Doherty Haugh and Lyon, 2014). For example in company if a worker do not have enough
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skills and competencies to work effectively then training and development program can help in
this. Training can support employee in enhancing skills so that productivity could be increased.
Various kind of reward and certificates provided by these practices help in encouraging
employees Here are some applications of human resource management to work related context in
Aldi: Training and development: HRM practices involves training and education to
employees. These training supports workers in enhancing their working competencies.
Training is given by HR professionals in order to acquires skills in employee so that they
can perform job in effective manner. These practices focuses on developing employees of
the company so that they can provide good quality work (Hoekstra and Wiedmann,
2014) .These skill training programs help employees ion developing their career. Rewards and certificates: Rewards given by human resources motivate employee to
perform better and give best performance. This system develops confidence in employees
that they are working good and contributing in growth of the company (Hislop, 2013.).
Various kind of monetary rewards and incentives given by HR professionals so that
worker remain motivated at workplace. This reward system program also increased
productivity of the company Employee welfare: Human resources works for providing welfare to employees. HRM
make various policies and rule for worker so that they can feel secure in the company.
Several health care benefits are also provide by them in order ensure health of people at
workplace. Performance appraisals: Performance appraisals given by HRM practices helps in
reducing employee turnover in the company. Promoting employees to higher post
increases their level of motivation.
 Policies and workplace flexibility: HRM practices involves making policies for the
employees so that they remain protected in the organisation (Geissler and Powers, eds.,
2017). They make the workplace flexible for the workers so that they can work
effectively.
CONCLUSION
From the above report it can be concluded that human resource plays a vital role in any
organisation.. HRM role is vital in managing staff members for the company. They are an
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essential part of any organization to develop and maintain relationship with people working
within the enterprise Their function are classified into managerial, operational and advisory.
These operations support in effective management of activities in the company. Various HRM
practices like training, promotion, reward system have many benefits in the enterprise. Effective
HRM practices supports in increasing productivity and profitability of organisation. Good
employee relations are required in Aldi to make effective decisions. There are various legislation
and laws made for employment in UK which impacts HRM decision-making process. Human
resources should consider legislations made for employment while making decisions for its
employees.
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