HRM Report: Analyzing Human Resource Management at Aldi

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Aldi, a multinational retail organization. The report begins with an introduction to HRM, highlighting its core functions, such as workforce planning, recruitment, compensation, and employee development. Task 1 delves into the purpose and functions of HRM, focusing on workforce planning and resourcing, and evaluates the strengths and weaknesses of different recruitment and selection approaches, including internal and external methods. Task 2 examines the benefits of HRM practices for both employers and employees, emphasizing the importance of training, performance management, and employee motivation. It also assesses the effectiveness of HRM in raising profits and productivity. Task 3 explores the significance of employee relations in influencing HRM decision-making, covering key elements of employment legislation and their impact on organizational decisions. The report concludes by summarizing the key findings and implications of effective HRM practices within the context of Aldi's operations.

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Purpose and functions of HRM applicable to workforce planning and resourcing..............3
P2. Strengths and weaknesses of different approaches of recruitment and selection.................5
TASK 2............................................................................................................................................6
P3 Benefit of HRM practices for employer and employees.......................................................6
P4 Effectiveness of HRM practices in terms of raising profits and productivity.......................7
TASK 3............................................................................................................................................8
P5 Importance of employee relations with respect to influence HRM decision making............8
P6 Key elements of employment legislation and its impact upon decision making...................9
TASK 4..........................................................................................................................................10
P7. HRM practices in a work related context...........................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management of employees and their workplace activities to meet the desired objectives
and targets of organisation is called as human resource management. It is done by human
resource manager to enhance the worker's performance. Major focus of HRM is on effective
process of selection and recruitment. Aldi is selected in the present report which is a
multinational retailing organisation that is also considered as one of the largest supermarkets
trading in more than 70 nations along with 7000 stores and more (Bulgurcu, Cavusoglu and
Benbasat, 2010). Main purpose of this report is to analyse various functions of HRM in Aldi
along with its benefits to employer and employee. Also, various elements of legislation of
employment and their influence on process of decision-making of organisation are discussed
here.
TASK 1
P1. Purpose and functions of HRM applicable to workforce planning and resourcing
HRM is the management process department which is one of major elements of an
organisation used for managing personnel of a company. Aldi is a large organisation with more
than 20, 000 people that make the process hectic and complex. Meeting the best results from
selection and recruitment process is one of the major purposes of this department. Generally, this
procedure aims on recruiting the best candidates for a specific work profile in order to gain
maximum outcomes. These terms provide manager with proper support delivering proper
satisfaction to subordinate.
Here are mentioned major HRM functions which are briefed as below:
 Compensation and Rewarding: HR manager formulates policies linked with the
worker’s pay and structure the packages and plans for compensation or rewarding
activities organised by Aldi (Human resource management, 2016). Major benefits of this
process is that it helps in satisfying the needs of workers and in providing stimulation.
 Personnel Development: It is one of major functions that HR department of organisation
plays. HR Manager of Aldi conducts various training and programs of development for
enhancing their worker’s skills and abilities.
 Planning, Selection and Recruitment: Manpower identification and enhancements
through organising various activities and plans in Workplace of Aldi is managed by
3

HRM. HRM is responsible for hiring and allocating employee according to skills and
abilities of them in best ways.
 Safety and Health: An organisation is liable for delivering proper safeguard to worker
while working in their company (Zheng, Yang and McLean, 2010). This is function of
HR that include various laws and legislation while building policies as well as create a
helathy and safe working environment for worker of Aldi.
Major HRM activities are like:
 Initiate modification and change at workplace.
 Form a better and effective communication among workers and employer. Improvement of corporate plans, culture and policies of Aldi according to circumstances
Best Practice and Best Fit Approach
Best practice Best fit
This focus over the planning of reward of
worker by HR manager.
This activities emphasis on strategies
implementation of aligning system.
In this, the manager encourage motivation
through worker commitment.
The outcome in delivering the organisation
competitive edge.
Models of soft and hard HRM:
 Hard HRM: This HRM use worker as the business activities resources in which there
should be strong link among the business's planning process. This focus over workforce
need and recruitment process (Decker, Riley and Siemer eds., 2012). Soft HRM: In this workers are treated as one of the essential organisational elements
which is source of meeting competitive edge. Manage focus over the requirements and
satisfaction of employee of Aldi through rewarding and compensation process.
Workforce planning
Type of Enterprise Labour Market Types
Independent primary Subordinate primary
Core Lien Employee, waged staff of
technical and professional
areas.
Employee production who get
together through trade unions.
4

Periphery Craft Secondary
Worker with higher abilities
and skills that count in this and
often unionised by unions of
craft.
Worker with work security and
less abilities come in this.
P2. Strengths and weaknesses of different approaches of recruitment and selection
The process of recruitment helps in meeting the skilled criteria of applicants to
organisation for replacing them on vacant job places. It is one of essential procedures of each
organisation. There are various types of techniques of recruitment and selection which can be
used by Aldi to make recruitment of best workers for their enterprise that can be considered from
below discussed points:
Internal Technique of Recruitment: In this technique, manager provides development
opportunities to existing employees to improve their qualities and skills by promoting them on
higher position work at Aldi. It is one of the effective recruitment approaches that help in
increasing the productivity and motivating workers. Weaknesses and strengths of this technique
are mentioned as below: Strengths: Major advantages of this method is that, it avail in quick decision-making of
hiring process and save the recruitment cost of enterprise such as training cost,
advertising cost etc. An existing worker get the chance to develop and promote
themselves which render stimulation and level of motivation to employee of Aldi
(Hobfoll, 2011). This method enhances the commitment and morale of employees in
enterprise. Weaknesses: Existing workers of organisation are selected by the HR manager to fulfil
the new need, can restricted the chance of catering new talents and skills in organisation.
Also sometime this can create conflicts and issues among workplace that can demotivate
worker. Also this become complex for manager to choose the best person for promotion
as well. Thus, it can imbalance the whole system of Aldi.
External Approach of Hiring: When the HR manager organises recruitment from an
organisation to complete to vancant vacancies which is also known as external recruitments
approach. Here are some of its weakness and strengths mentioned under:
5

 Strengths: This technique helps the manager in catering new skills and qualities at
workplace that increases the productivity and profitability. New employees provide the
chance to develop and motivate existing workers. This approach can be utilised by the
manager in Aldi.
 Weaknesses: Major demerit of this approach is that this is a very lengthy and complicated
procedure. This needs big financial budget for providing proper training and induction to
workers.
Invite huge candidate amount, than evaluate and analyse skills and best choose effective
liability and role of organisation which is also known as best practice (Iles, Chuai and Preece,
2010). There are two major selection approaches which are: Systematic Approach: Manager comply step sequences for reviewing applicants kills and
choosing best for the vacant work profile.
 Unsystematic Approach: Manager choose a random resume and then compare the
abilities of candidates with required job needs.
TASK 2
P3 Benefit of HRM practices for employer and employees
Different Activities of HRM for Aldi Training and Development for Employee Learning: In Aldi, huge amount of employee
work in different division of organisation with distinct capabilities and skills. This is one
of major liability of manager to organise learning and training programs for employee as
it avail them in meeting the confidence and knowledge boost. Worker's Performance Management: Employee are the major asset of an enterprise like
Aldi. Thee are the individual who produce and present the products and services of
organisation. Management of performance is process of evaluation of incurred activities
for identification of their skills and performance comparing it to the desired outcome. In
this, manager seek the difference between standard and actual skills of worker. It aid
manager in programs of training and increase the level of performance among worker.
This assist in satisfying requirements of consumer and managing products and service
quality of products that organisation deals.
Benefits of Practices of HRM for Worker
6

 Stimulate Employee for Better Performance: One of major advantages of practices of
GRM is that this encourage and stimulate employee for performing best activities. For
example: performance management impact on performance and motivate worker at the
same time. Provide Training for better performance: Effective HRM activities support worker
training that only increase productivity but also provide organisation benefits. Enhance Worker's Effectiveness: performance management of employee on regular
basis can aid in recognising gap among actual and standard abilities according which
training programs is being recommended.
HRM practices Benefits to Employer Help in Decision Making Process: Worker's performance help manager in process of
decision-making through arranging capabilities and skills of Aldi (Functions of HRM,
2017). Thus, this deliver support to manage through providing diverged ideas or opinion
to organisation in effective way.
 Create an effective and Healthy Workplace: Through learning and training programs,
employee can encourage their confidence level and enhance the knowledge in effective
manner. Whole the plan avail in creating positive and effective working environment for
worker as well as employer that indirectly avail the organisation in managing better
productivity of job.
P4 Effectiveness of HRM practices in terms of raising profits and productivity
Benefit is the major element that an organisation framework and different types of
payments and rewarding system that encourage worker for giving their best performance.
Organisation worker play a major role in the generating benefit for organisation because these
are dealing with most common products delivering it to large consumer fulfilling their needs.
Different practices of human resource management like evaluation of performance of employee
aid in analysing different gap among standard and actual skills needed for the specific job. After
this, the HR manger organise activities like training session for rendering proper guidance and
enhancement of their abilities and skills. Human resource manager organise various activities
and programs for managing relation with worker as well as control entire operation that incurred
and allotted to them for proper administration of personal of Aldi.
7

Several activities of human resource management like framework of flexible organisation
as well as various types of compensation and rewarding system for efficient worker motivations
among Aldi's workplace. It help in managing and increasing the profitability amount productivity
of products. Better goods quality grab the attention of mass consumer that lead to better sales
amount of specific products of organisation. Different employee benefits to worker emphasis the
values and morals of worker that help in meeting better goodwill of organisation and meeting
competitive edge (Rousseau and Barends, 2011). A satisfied employee is the the key of major
activities and consumer satisfaction while dealing in a business organisation. Hence, effective
practices of HRM help in fulfil basic requirement of employee that lead to better productivity
and profitability in a company.
TASK 3
P5 Importance of employee relations with respect to influence HRM decision making
As employee are known as the essential elements of each organisation and involve in the
business success of Aldi majorly which is fundamental for manager to maintain and create better
employee relations. Major feature of ER is that it largely influence the judgements of HR and
process of decision-making adopted by organisation manager. Here are some point mentioned
that can be undertaken while managing proper relations with employee:
 This is indispensable for HR manager to optimise the policy of open door so worker can
manage and issues with the manager freely.
 Worker's participation should be emphasis on procedure of decision-making as it enhance
their position in organisation and increase their working productivity through motivating
them.
 Worker's responses should be gathered and analysed for making the change in Aldi
according to time.
 Rotation of work profile can help with increasing criteria of performing activities among
worker (Salvendy, 201).
 This is very important where tht should be strong channel of communication which can
help in removing issues and conflicts from the roots at workplace.
 Safe as well as healthy workplace condition that must offer worker so they can perform
the work in effective manner.
8

 Worker who perform better work that help in stimulating worker and performing the
activities well.
With entire mentioned situation, Aldi's manager can maintain and create better relations
with worker. Major benefits of employee relations management is the assistance and guidance
while attempting the process of decision-making. Good relations within an enterprise among
worker and employer can help in meeting the market share and maximum impact on competitive
edge in positive way. Human resource manager use various practices and activities according ton
the requirements and demands of employee which help them in managing better worker
relations, at the same time, benefits to Aldi performance and revenues. The organisation can help
in increasing the outcome and global presence through the help of proper employee relations
with their worker as well.
P6 Key elements of employment legislation and its impact upon decision making
Concept of employment legislations and laws consist of several rules and acts that lead to
manager while formulating organisation policies and terms for providing proper rights to worker
and safeguard working in a business industry (Schuler, Jackson and Tarique, 2011). Entire these
activities and regulation directly influence the judgements and decision-making process of
human resource management of an enterprise while making the packages or terms of an
organisation. Parliament of United Kingdom have come up with various laws for protecting their
basic rights at workplace and enhance their standard of living which an business organisation
like Aldi have to comply in their enterprise guidelines or policies. Here are some of basic rights
mentioned as below: Minimum Wage Act: Each nation's state have determined some basic and minimum
amount of wage that their business organisation have to provide to worker in order to
fulfil their basic requirements such as cloth, shelter and food. This law influence the
manager's decision while formulating the compensation and payments amount in the
process of negotiation and bargaining undertaken by HR of worker. Equal Pay Act: This act was passed by parliaments of United Kingdom for providing
proper rights to each group of people in regard of wage allocation. According to this act,
each worker group working on same profile should be getting same wage amount. They
should not treated as discrimination on basis of gender, gender and other elements. It aid
9

in creating and managing better, healthy and safe working environment that make HR
undertook this rule. Workplace Equality Act: his was a modification of Law of Race relation formed in 1976
that have amended again in 2010 for supporting justice and equality among worker.
According ton this act, there should be no differentiation among worker on the grounds
of their race, gender, age and other factor. All worker should be treated equally in a
working organisation (Shuck and Wollard, 2010). This affected Alid's practices of HRM
making the workplace of organisation with more diversity at working environment in
regard of worker. Disability Discrimination Law: This law was formed for providing the worker different
type of liberty at working environment for properly behaviour of people or business
industry with disables. According this, there should not be any discrimination with
disable in comparison of other cause of their disability. This was passed in 1998 by the
Parliament of Britain which is required to comply by each organisation so as Aldi.
 Health and Safety Act: This act was formed in 1974 for providing safeguard to worker in
the business industry where they perform. This act states that each enterprise have to
comply or organise activities for their safety and health rights provided by enterprise in
which worker are responsible for providing safety to employee while working for them.
This also affects the decision making process of human resource manager through
organising those services that can help in delivering proper health activities to them.
Thus, Aldi follow these basic legislation and laws while implementing the activities of
HRM in their working organisation. This help enterprise in managing employee relation at the
same time employee are getting benefits.
TASK 4
P7. HRM practices in a work related context
There are specific process of recruitments and selection that an HR undertake in Aldi
while appointing a new recruit or applicant (Tarique and Schuler, 2010). For the HR manager
appointment, there is a requirements to follow few phases or sequences and consider the figures
and facts for rights candidate selection for specific work profile:
Job Specification
10

Specification of Job
1. Details of occupation
Name of job: Human resource manager
Department of HRM
2. Job Purpose
 To enhance the working environment of organisation
 Increase worker's productivity and performance through motivating them
 Organise recruitment and selection process (Teece, 2012).
3. Duties & responsibilities
 Set target and objectives linked with work
 Identify and review worker and organisation performance
 Analyse and determine major decision linked with worker
Description of Curriculum Vitae
General Data:
Name: ______
Mobile no.: ______
Email id: ________
Qualification
MBA University of London 79.00%
BBA University of London 69.50%
Higher education Cambridge school 79.80%
Secondary education Cambridge school 90.00%
Personal details:
Father name: ____
Mother name: ____
Date of birth: __ ___ ____
Achievement: 1st prize in inter-college competition of Basketball.
11

2nd position in discussion and debate.
Interview Preparation: To choose the rights applicants or candidate for organisation like Aldi, it
is fundamental for organisation to follow some major elements for applicants interview
preparation which is mentioned below:
 rights and proper question preparation to meet the effective outcome.
 Evaluation of entire applicants skills for the job comparing it to the requirements.
 Analysis of eligibility.
Offering of Joining letter: This refer to a written document in which entire condition ad terms are
mentioned in which both parties negotiate n terms to serve each other (Wilson, and et. al., 2012).
Here are mentioned required elements:
 organisation details.
 Joining Date.
 Structure of salary.
 Minimum hours for working and time of work.
 Structure before leaving.
 Higher authority signature.
Evaluation: In the final stage, evaluation of recruitments and selection process is required for so
which manager and HR department can aware about limitation and errors in case it incur. Here
are mentioned selection criteria for the applicants.
 Abilities and skills.
 Level of performance.
 Level of education.
 Take decision of quality in difficult conditions.
All of these steps help in process of recruitment while firing the candidate for a work
profile in Aldi.
CONCLUSION
The can state from discussed report that HRM is the management process which is one of
major elements of an organisation used for managing personnel of a company. There are various
types of techniques of recruitments and selections which can be used by Aldi to make
recruitment of best worker for their enterprise. Employee are the major asset of an organisation
12