Evaluating HRM Practices: A Comprehensive Report on ALDI's Strategies

This report provides a detailed analysis of Human Resource Management (HRM) practices within ALDI. It begins with an overview of ALDI, its objectives, and its position in the UK market. The report then explores the core functions of HRM applicable to ALDI, including recruitment, training, and performance management. It examines the strengths and weaknesses of internal and external recruitment methods, and explains the benefits of various HRM practices for both employers and employees, using ALDI as a case study. The report evaluates the effectiveness of HRM practices in raising ALDI's profit and productivity, and analyzes the importance of employee relations in influencing HRM decision-making. Finally, the report identifies key elements of employment legislation and illustrates the application of HRM practices in a work-related context, providing specific examples relevant to ALDI's operations.

Unit 03
Human Resource Management
Student Name:
Student ID:
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Table of Contents
Introduction............................................................................................................... 3
Task 1...................................................................................................................... 4
Overview of ALDI................................................................................................... 4
P1 Explaining the purpose and functions of HRM that is applicable to workforce planning and
resource of ALDI..................................................................................................... 4
P2 Explaining strength and weakness of different approach of recruitment and selection process.. .6
P3 Explaining the benefits of different HRM practices within an organization for both the employer
and employee.......................................................................................................... 7
P4 Evaluating the effectiveness of different HRM practices in terms of raising ALDI’s profit and
productivity............................................................................................................ 9
P5 Analysing the importance of employee relations with respect to influencing HRM decision-
making.................................................................................................................. 9
P6 Identify the key elements of employment legislation and the impact it has on HRM decision-
making................................................................................................................ 11
P7 Illustrate the application of HRM practices in a work-related context, using specific examples.
......................................................................................................................... 12
Conclusion:............................................................................................................. 17
References.............................................................................................................. 18
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Introduction
Human Resource Management (HRM) is the process of determining the current and future
needs of the employees, making advertisements for requesting applications from the potential
candidates, selecting and finally recruiting for the best individual as per the requirements and
their qualifications (Boxall and Purcell, 2016). The overall process and the related things to
materialize the issue of human resource of a company or organization will be revealed
through the discussion of the organization Kingfisher.
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Task 1
Overview of ALDI
Figure 01: Image of ALDI (Aldi.co.uk, 2018).
ALDI start its journey at 1946 when Mr Karl and Theo Albrecht take over their mother store
and now ALDI is divided into two part ALDI Nord which cover north of Germany and ALDI
Sud which cover south part but now it operates in UK.
ALDI is popular for providing low price goods to it consumers and it committed to give their
consumer best quality effort with product. Their objectives are to find out the way to retail
grocery product with efficient effort and that is why ALDI is able to offer best quality
product with cheapest price (Aldi.co.uk, 2018). Now, ALDI operating about 1500 stores in 34
states and each month it serves around 32 million consumers. ALDI has decided to open 500
store around UK.
P1 Explaining the purpose and functions of HRM that is applicable to workforce
planning and resource of ALDI.
Every organisation has its own goals and objectives that it has to achieve and for this reason
they need people who will work for it to help it to achieve its goals and to manage all the
functions related to handle the people of the firm is maintain by HRM which Human
Resource Department (Boxall and Purcell, 2016). HRM is the only department of any
organisation that handle all the work related to the employees including hiring, selecting even
giving rewards. ALDI holds around 7.6% of share of UK grocery market and to increase it
performance to maintain it HRM functions.
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Figure 02: Share percentage of ALDI (Bratton and Gold, 2017).
The HRM functions of ALDI that is applicable for planning and resources are discussed
below:
Recruitment: The prime object of human resource management is to hire new employees for
the organisation. As in business centre all is depend on the how to give anyone can give more
efficient customer service and to give efficient customer service skilled and qualified
employees are needed for the company (Bratton and Gold, 2017). Though, ALDI is grocery
shop and provide good product but only providing good product is not enough it need to build
strong relationship with its customers to make them its potential customers.
Training: Only recruiting new and qualified employees is not only task that is done by
human resource department. They need to train them up to make their skills more effective
and professional. They also need to make aware about the functions of ALDI so that they can
perform according to it. The more they skilled the more they can be productive and it will
give more opportunities for ALDI and that is why the HRM of ALDI arrange training
programs for its both old and new employees to make them efficient.
Managerial functions: Human resource management of any organisation is the part of
management and it has to does four task which are planning, organizing, directing and
controlling and these are common task in management and human resource management is a
part of management it has to do these task.
Determine Performance Standard: Human resource management has not only the
responsibility to hire and train the new employees (Bratton and Gold, 2017). It has to set a
standard for performance that will help them to evaluate the work of both their old and new
employees and give them feedback according to the performance standard.
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P2 Explaining strength and weakness of different approach of recruitment and selection
process.
Recruitment: The process by which organisation find and attract suitable employees to fill
up the vacant sits of the organisation. Recruitment process also provides all the necessary
requirements to the applicants that is needed for achieving the aims of the company. In
recruitment process management identify the vacancy of the job, job requirements, review
and shortlist the applications and select candidates.
Selection: The process by which the organisation identifies the right candidate for their
company or for the vacant position is called selection process. So, basically selection process
is where by taking interview and evaluating their skills choose the right person for the job.
In recruitment and selection process there are two different approaches that ALDI can select
while filling up its new vacant position and those two methods are discussed below:
Internal Source: Internal source is means when ALDI try to recruit or select employees for
its new vacant position from its former, present or employee’s referrals and this type of
internal source can be done by giving promotion to its present employees or give this
opportunity to its former employees and also by taking reference from present employee.
Advantages:
 Internal process is way more cheapest than external source
 Recruited new employee is already familiar with the functions of the organisation
 As internal process is done by sometimes giving old employees promotion it
motivates other employees to do better job
 Organisation has already known all the strength and weakness of the candidates
 In internal process there is no need of arranging any training programs for them as
they are already being skilled
 In internal process they don’t need to do any budget plan for the process and it saves
time of the company
Disadvantages:
 Internal process limits the way to get more potential employees
 There is no chance to get more new or innovative ideas from outside
 It might create a misunderstanding among the applicants who are able to do get the
post
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 As in this process present or former employee fill up the post it again creates job
vacancy
External Source: External source is when ALDI tries to recruit new employee for its vacant
position from outside of the company and they get those employees via advertisement and
employee agencies (Eliot, 2016). Organisation sometimes try to recruit from outside to get to
see if there is any qualified employee are there who is suitable for their organisation.
Advantages:
 By hiring from external sources organisation can get new ideas from new peoples
 There are various suitable options that company get to choose best from it
 Firm can get various types of experienced people through external source
 It also creates dynamic workforce in the organisation
Disadvantages:
 External process takes longer time as organisation need to go through different
selection process
 External process cost money as to organise it company need good amount of money
 The selection process that company follow may not be good enough to find qualified
employees
P3 Explaining the benefits of different HRM practices within an organization for both
the employer and employee.
Human resource management which is related to the all the employees and employers of the
organisation and it deals with almost all the problems of the employees and also employers.
HRM practices is a common and mandatory practices for the company and all the company
practices HRM in their own accord (Gautam, 2010). Now, the benefits of HRM practice for
both employees and employers are given below:
Benefits for the employers of ALDI:
i. As an employer’s HRM practices help the top level manager to monitor the
performance of the employees and can keep control over the activities of both new
and old employees. By their regular monitoring process, they can evaluate their work
and give them proper feedback.
ii. All the strategic plans are done and shape by the top level managers and before
making this strategic plan they first need to take a look that they have enough human
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resource or other resources not so that they can implement their strategic plan. The
practices of HRM by employers helps the workers to identify available resources to
implement plan.
iii. By the practice of HRM the employers can appoint qualified and skilled employees in
terms of their experience and this will help ALDI to increase its productivity
(Gautam, 2010). These newly employees will make the service and product of ALDI
more applicable to its consumers and this will help more to their customer satisfaction
as today’s business world is all about satisfying and building relationship with
customers.
Figure 03: Sales figure of ALDI (Greer and Greer, 2001).
iv. Because of the practice of the HRM is clearly show that the sale amount of ALDI is
going up and they predict that it will go up in near future.
Benefits for employees of ALDI:
i. If the organisation practice HRM than it clear that the employees of that organisation
will select fairly in terms of their skill and merit and ALDI follow fair HRM practice
in its organisation.
ii. Because of HRM practice ALDI try to maintain legislation related to employee and
for this reason it gives its employees fair payment system along different employee
benefits that all the employees deserve for example medical treatment, fair
environment for work.
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iii. When the employees try to practice HRM in their organisational task it makes them
more professional to their works and it also make them more skilled about their work
related task and it also benefit for the organisation that they are working in.
iv. One the most important functions of the practice of HRM is the improvement in
employers and employee relationship as it works for the better condition of employer
and employee relationship (Greer and Greer, 2001). Because, if there rise in conflict
between the employee’s human resource department of ALDI always make sure that
this type of condition will not hamper the productivity of the organisation.
P4 Evaluating the effectiveness of different HRM practices in terms of raising ALDI’s
profit and productivity.
The main purpose of the Human Resource Management is also kept as focused on maintain a
good relationship with the employees and other parties related with this as they will be the
influential components in future or current period. The higher relationship with the
employees definitely brings the best outcome for the company.
The next practice relating this HRM practices which bring the relationship of such process
into the best friendly type and bring the best outcomes too by doing the tasks as partnership
basis.
This practice definitely brings the lower position of reducing the employee turnover as the
employees are satisfied at a greater extent (Greer and Greer, 2001). The existing and the
future employees are encouraged to join that friendly environment of that organization. It is
clear from the observation of the ALDI that they are more proactive to keep their old
employees into their company all time available as this is thought that the olds are mostly
used to the current practices which also reduce the costs.
P5 Analysing the importance of employee relations with respect to influencing HRM
decision-making.
Employee Relation
The organization of any type basically wants to increase their net profit margin at its best
level after adjusting all the expenses which are ensured by basically the best skilled
employees in that particular organization (Hook, Jenkins and Foot, 2015). So it’s usual that
the performances largely depend on the best effort of the employees which are ensured by the
best HR practices of good relation among all other components of the organization.
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It has the logic of using the best method of communicating employees with one another
because to achieve the best interest there is no alternative of making good relations among
the employees and management.
If we see any loss incurred in a company abruptly, it is to be thought that they are using the
unusual way or bad way of developing good relations in that company. There will be serious
losses again if they don’t develop a good practice of strong relationship building method.
Apart from these, there are also other importance which are described as below:
 The ROI or Return on Investment will be definitely increased if there remains a good
strong relationship among the employees as this make sure the working through
partnership which ensures the higher performances as well as the returns.
 The agency problem as well as the agency cost will also be solved and reduced at a
greater extent as the many minds make less errors which minimize the possibility of
misunderstanding among management and teams and employees.
 The suppliers are kept as satisfied by the strong relations making with them and the
suppliers are made to feel the safe and comfort to work with that particular company.
 Discussion with one another t workplace is possible by making strong relations
among the employees which ensure better network of working s well.
The strategies are related to achieve the employee relations which are as follows:
Communication: Communication makes the strong relation of the employees as well as the
management team of a company which ensures larger profit at the company balance sheet
(Hook, Jenkins and Foot, 2015). The leaders or the employers must make communication at
regular basis so that employees are not lag behind to make freely contact with their upper
levels employees for getting the information or guidance.
Opportunities for developing career: A career development opportunity is sometimes seen
provided by the various organizations nowadays. This has larger benefits as the employees
always seek to increase their current skill level by engaging with different programs which
they perceive as the best factor for developing themselves and accept those programs
accordingly. This makes the strong relationship and interaction with the employers of the
organization.
Setting a vision: The employee relations are also promoted by the strategy to set a vision or
target for achieving the relations of employees. In this process, the company presents the
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vision in front of the employees and they are asked to attain as they are ordered to achieve for
the organizational interest.
Motivation: Motivation has no alternative and is regarded the best strategy to develop the
employee relations as this one acts as representative of all of the strategies. The motivational
seminars or programs keep playing important role in developing the relations as the
employees are engaged in achieving the goals which push them to work with partnership.
Stages of HRM decision making process:
Identifying the decisions: The decisions are required to discuss and to establish the
identification of areas to be corrected for making strong HRM decision (Stewart and Brown,
2014). This task is done with the helping hand of expert managers. In this case, the manager
prepares the task allocations and discuss with the employees to come into a decision.
Gathering information: The information is then collected accordingly with the given
criteria and no missing information will be occurred or remained absent rather they have the
hundred percent of getting chance. The information is judged accordingly and made to help
the decision process.
Identifying the alternatives: There will be chance of getting one more alternative in the
judgments and the duty of the manager is to find the best alternative to make the informative
and useful decision.
Taking an action: The alternatives are selected and chosen to take the best one which is
regarded the best outcome provider. Then the manager tries to take the action at its final stage
which brings the ultimate goal of the organization.
P6 Identify the key elements of employment legislation and the impact it has on HRM
decision-making.
Sex discrimination Under the Equality Act 2010: Sex discrimination Under the Equality
Act 2010 is basically dealt with the employee protection from being sexually harassed by
another in the places and removes the discrimination which is happened from the sex
discrimination by gender.
The organizational reputation will be spread out from the face to face of the particular service
takes in the region if the organization ensures the proper implication of such Act into the real
situation and the public confidence will be higher.
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Race Relations Act 1965: The colors, ethnicity and any other factors are considered to make
the workers harassed in the particular organization which is protected by the Race Relations
Act 1995 (Stewart and Brown, 2014). The Centrica Group always tries to keep avoid the
problems of racial things in which they try to protect based on the different religions.
Equal Pay Act 1970: This Act basically ensures the protection of the problems of being
harassed or discriminated by unequal pay though the employees deserve the best. This thing
is happened almost all in the organization and that’s the reason of coming such Act into the
action. Centrica Group is seen to pay the equal pays and is release from being harassed of
such punishment of the Act.
Data Protection Act 1998: No data will be allotted to anyone without the prior concern of
the data provider in to the system as a whole (Stone, 2011). The permission is needed
otherwise it will be regarded as a serious crime which may be provided by this Act into the
actions.
The employees at Centrica Group provide lots of personal information which may be
required by another party and this Act makes rule to spread such information in an effective
manner which should be observed.
Employment Protection Act 1978: The employees will be protected by this Act from being
harassed in many ways like the paying of equal pay, good working environment etc.
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples.
A portfolio as Intern in the HR division at ADLI for the post of HR assistant.
Job Description
Job description is nothing but a description about the job roles and duties which are to be
performed by employees in a particular department in the organization after being selected
from the circular of the advertisement (Stone, 2011).
This can be designed as such by giving the following example which is a job description for
the post of HR manager at ALDI.
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A copy of CV can be attached for the application of the post.
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Job Specification
HR Manager
ALDI
Requirements of Academics:
 The candidates must have the BBA and MBA degree in both areas of the financial management issues
and the research base analysis having the Human Resource Management background.
Personal Qualifications:
 Hardworking and young mind
 Higher Excellency in operation all levels of computer programs.
 Experience in making this area of job successful is a must.
 Interpersonal relations development capability is a must.
Experience:
 Should have the 8 years of experience in this working area.

Resume of Y
Address: Postal Address to be included
Email ID:
Mobile No:
Career Objectives:
 To achieve self-actualization by shouldering adequate organizational responsibilities
to ensure organizational as well as personal growth.
 To use all my potential in achieving the ultimate vision and mission of the
organization with hundred percent dedication and enthusiasm.
Educational Qualifications (Chronologically Reversed):
 MBA (Major in HRM)
Name of the Institution : Cambridge University
Session : 2015
Result : CGPA 3.16
 BBA (Major in HRM)
University of Edinburg
Passing year: 2014
Skills:
 Outgoing with strong organizational, communication, interpersonal and
presentation skills
 Have dynamism, commitment, devotion and challenging tenacity
 Very adaptable to change and new ideas
 First-class analytical, design and problem solving skills
 Dedicated to maintaining high-quality standards
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Computer & Language Proficiency:
 Very high proficiency in Microsoft Office - 2007 (Word, Excel & Power Point),
Windows-2010, E-mailing and Internet Browsing.
 Have an excellent command over Bengali and English language in both writing
and speaking.
Declaration:
I certify that the statements made by me herein above are true, complete and correct to the
best of my knowledge and belief.
Yours Truly
Y
Signature
……………………
Evaluation Process: The stage or steps are discussed will be the best method for ALDI to be
engaged with the recruitment of possible potential valuable skilled employees therein. This
will make the potentials attractive and draw their full concentration to make the circular
successful.
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The employees will be benefited at a greater extent by seeing their employer performances
which are measured by using various tools which are effective. The best performers are
always selected to be entertained with financial incentives as well.
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Conclusion:
The HRM practices are developed by the HRM usage among all the organizations by the
successful managers who ensure larger contribution to bring the company ahead of higher
performance. The competitors are also no lag behind making the best use of HRM practices.
So the organizations in this case must be proactive in making the HRM practices concrete
and perfect.
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References
1. Aldi.co.uk. (2018). ALDI UK | Homepage. [online] Available at:
https://www.aldi.co.uk [Accessed 5 Nov. 2018].
2. Aswathappa, K. and Dash, S. (2013). International human resource management.
New Delhi: McGraw Hill Education (India).
3. Boxall, P. and Purcell, J. (2016). Strategy and human resource management.
Basingstoke: Palgrave Macmillan education.
4. Bratton, J. and Gold, J. (2017). Human resource management. London: Palgrave
Macmillan.
5. Eliot, G. (2016). The mill on the Floss. New York: Open Road Integrated Media.
6. Gautam, S. (2010). Environmental best management practices for aquaculture. Delhi:
Vista International Pub. House.
7. Greer, C. and Greer, C. (2001). Strategic human resource management. Upper Saddle
River, N.J.: Prentice-Hall.
8. Hook, C., Jenkins, A. and Foot, M. (2015). Introducing Human Resource
Management 7th edn. Pearson Education UK.
9. Perrewé, P. (2011). The role of personality in human resource management. Human
Resource Management Review, 21(4), p.257.
10. Stewart, G. and Brown, K. (2014). Human resource management. Hoboken, N.J.:
Wiley.
11. Stone, R. (2011). Human resource management. Milton, Qld.: John Wiley & Sons
Australia.
12. Torrington, D., Hall, L., Atkinson, C. and Taylor, S. (n.d.). Human resource
management.
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