Human Resource Management in Aldi: Practices, Benefits and Legislation

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Aldi, a multinational retail corporation. It examines the purpose and functions of HRM, focusing on recruitment and selection approaches, training and development, employee relations, conflict management, and motivation. The report assesses the strengths and weaknesses of internal and external recruitment strategies, highlighting the benefits and drawbacks for both the employer and employees. Furthermore, it evaluates the effectiveness of various HRM practices, including performance evaluation and conflict resolution. The analysis also emphasizes the importance of maintaining strong employee relations within the organization and addresses key elements of employment legislation and their impact on Aldi's HRM decision-making processes. The report concludes by underscoring the vital role of HRM in achieving organizational goals and fostering a positive work environment.

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explaining the purpose and functions of HRM......................................................................3
P2 Assessing the strengths and weaknesses of the recruitment and selection approaches..........4
TASK 2............................................................................................................................................6
P3 Explaining the benefits of HRM practices to both employer and employee..........................6
P4 Evaluating the effectiveness of different HRM practices.......................................................7
TASK 3............................................................................................................................................8
P5 Analyzing the importance of employee relations within the business organization...............8
P6 Key elements of employment legislation and the impact it has upon HRM decision making
for Aldi.........................................................................................................................................8
TASK 4............................................................................................................................................9
P7 application of HRM practices in a work-related context using specific examples from the
Aldi..............................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Over the years, as the level of competition among organization has been increased, the
role of employees in the business has been widened. In the modern era, companies pay an
extreme level of focus towards maximizing and expanding their workforce capabilities and
competencies (Holland, Burnett and Millington, 2015). Human resource management (HRM)
refers to the process whereby establishments can recruit capable member and improve their skills
and capabilities of their workers so as to serve consumers beyond their expectations. The aim of
the present report is to examine various HR functions and practices that Aldi’s HR manager carry
out to hire talented and committed people at their workplace (Mathis and et.al., 2016). Moreover,
it will also emphasize upon the importance of employee relations in the success of enterprise.
Furthermore, in the end, report will present the key element of employee legislations and
evaluate their impact upon Aldi’s HRM decision-making to attain goals.
TASK 1
P1 Explaining the purpose and functions of HRM
Overview of Aldi
British retail sector is rapidly growing and succeeding industry across the globe. Aldis is
one of the top leading retailers that operates at multi-national level as it runs more than 7000
stores in 70 countries. It is originated from Germany where it was established in the year 1913 as
the first company that offer self-services.
Purpose of HRM: The main focus or orientation of HRM is to acquire right people at the
right place so as to deliver top-services to the consumers. It is all about maximizing employees
performance to an extreme level by developing required skills, capabilities and motivating
people on a consistent basis (Abreu and et.al., 2012). With reference to Aldi, its HR professionals
are liable to recruit, train and motivate their staff members and keep align overall business
functions to the defined business goals so as to meet success.
Functions of HRM:
HR manager carry out different functions and activities to retain talented members at the
workplace in order meet consumer expectations effectively. In today’s era, acquiring right people
and the right place is the key of success in the competitive market place. In order to meet such
objectives, Aldi’s HR professional conduct following activities and functions, enumerated

underneath:
Recruitment and selection: It is the most importance function of HRM that is regarded
as process of captivating, screening and hiring best and highly capable candidate by taking into
account all the defined criteria for the particular job (Functions of HRM, 2016). Aldi’s HR
professional forecast labour force requirement and conduct screening and interview of the
candidate to find out the most qualified member who will be able to met business goals.
Training and development: It is another business function, in which, Aldi’s HR
department conduct T&D programmes so as to improve skills, competencies and capabilities of
the staff as per the actual requirement of their job profile (Kim and et.al., 2015). With the help of
this, employees will be able to carry out their job responsibilities in the best manner by well-
equipped with the required knowledge and talent.
Maintain employee relations: HR manager pay focus towards maintaining stronger and
healthier relationship among employees of different departments. It will give rises to building a
familiar environment at the workplace (Newton and et.al., 2015).
Conflicts management: In the business, it is very common that conflicts can be arise at
the workplace. Moreover, Aldi hire diversified people who have different religion and cultural
background. Henceforth, its HR professional are liable to understand properly their workplace
conflicts and take right decisions to eliminate the same (Oke, 2016).
Motivation: HR manager also inspire and motivate people so that, they will be highly
dedicated towards their job targets and work hard by giving extra efforts to meet the same. Aldi’s
HR manager use various tools like bonus and incentive plans, appraisal and other monetary as
well as non-monetary reward mechanism to encourage workers, through which, they will be
willing to work hard and meet business targets (Purser and Jarrold, 2013).
P2 Assessing the strengths and weaknesses of the recruitment and selection approaches
There are different types of recruitment and selection approaches available to Aldi’s HR
professional to recruit committed and well-trained people at the workplace, described hereunder:
Internal recruitment: Under this approach, Aldi’s HR department can advertise internally to
recruit capable member at the vacant place. In such process, company can hire worker from
existing staff members at the required job place. For instance, Aldi can promote well-trained and
excellent performer at higher destination o position and helps to meet out the requirement of
vacant job place (Wright, Guest and Paauwe, 2015). Moreover, job rotation, job enlargement,

temporary contract, promotion, transfer and job posting, are the several types and methods of
internal recruitment.
Strength:
 It is one of the easiest methods to recruit people internally and consume less time as well
as cost.
 Aldi’s HR professional have full knowledge about the skills and capabilities of the
member, henceforth, in-depth interview sessions are not required to be organize.
 Promotion at higher position also helps to encourage people to work hard and put great
efforts to meet out their set job targets (Cardona and et.al., 2013).
Weaknesses:
 Discrimination practices on the basis of caste, religion, culture, language and other
factors may be seen which leads to create an unfamiliar environment at the workplace.
 Co-workers who are not promoted can feel partiality and dissatisfy from the job, which in
turn, may results in high staff turnover (Vanhala and Ritala, 2016).
 Aldi’s HR department will not be able to hire young, innovative and best candidate by
outsourcing employees.
External recruitment: Unlike internal sourcing, in this method, companies outsource
talented member from the external market. In this process, company place advertisement for job
vacancies and desire candidate can apply to the firm. Thereafter, HR manager can conduct
screening, telephonic interview, capability test and final interview to assess candidate skills and
capability level (Matlay, 2013). Job portals, website advertisement, campus recruitment, direct
walk-in, internal employee referral programes, newspaper ads and others are the methods of
external recruitment.
Strength:
 It enables Aldi to hire well-equipped, fresh and new talent at the job who may present
their unique and innovative ideas to the business to attain goals.
 External recruitment helps to pool employees who have enough skills and unique skills,
through which, they can serve extra mile to the business.
 It helps to hire best candidate who are well-equipped with the required skills and talent
that can serve consumers effectively (Arulrajah, 2015).
Weaknesses:

 It consumes excessive cost and time as well to recruit people from the external market.
 It also may leads to arise dissatisfaction among existing workforce as they may feel
dissatisfaction because they have chance of promotion but still not promoted. This in
turn, productivity may got decrease (Hill, Crowe and Gonsalvez, 2016).
 There is always a risk that new employee can decide to quit within a shorter period, if
they feel uncomfortable by working with co-workers and working conditions.
TASK 2
P3 Explaining the benefits of HRM practices to both employer and employee
HRM practices which are undertaken by ALDI provide high level of benefits to both
employer and employee in the following manner:
Employer
 In the business organization, HR manager plays a vital role in managing the performance
level of employees to the large extent. Moreover, HR manager of ALDI takes feedback
from the personnel on a periodical basis about the area in which they find difficulty in
performing the activities. This in turn provides deeper insight to the management about
the training need of personnel (Arulrajah and et.al., 2015). Further, HR also organizes
activities for employee welfare and motivation. The reason behind this motivated
employees are highly productive as compared to others. In this way, such practices offer
high level of benefit to the employer in terms of reduction in employee turnover and
absenteeism.
 HR manager of ALDI conducts training session on a periodical basis with the aim to
enhance competency and proficiency level of personnel. Moreover, in the retail sector,
services offered by the personnel have high level of influence on the satisfaction aspect of
customers (Brewster and et.al., 2016). Thus, by delivering high quality services to the
personnel with the help of talented workforce ALDI can maximize both productivity and
profitability.
 Practices of HRM helps ALDI in developing effectual culture within the business
organization. Moreover, HR manager of the firm encourages employees to work in a
team and makes their best efforts while carry out the business operations and functions.
This in turn helps company in accomplishing the task or activities within the suitabletime

frame (Petty, Manroop and Linton, 2015).
Employee
 Training session which is conducted by ALDI enables personnel to raise their efficiency
level and thereby perform activities and functions in the best possible way. Hence,
training and development activity raise the satisfaction level of customers to the large
extent. Moreover, employees feel demotivated when they do not have idea about the
manner in which they need to carry out task (Huemann, 2007).
 Welfare programs such as reward & recognition, picnic etc develops high level of mental
satisfaction among the personnel. It offers opportunity to the personnel to reduce their
stress to the large extent (Watt, 2016). Further, both monetary and non-monetary rewards
develop high level of satisfaction among the personnel and increase their productivity.
Hence, by taking into consideration all the above mentioned aspects it can be said that it
activities and functions performed by HR offers high level of advantages to both ALDI and its
human inventory.
P4 Evaluating the effectiveness of different HRM practices
Practices which are undertaken by HR manager of ALDI are highly effectual and make
vital contribution in the attainment of organizational goals. ALDI undertakes both internal and
external recruitment approaches with the aim to hire suitable personnel for the job. In this way,
by delivering high quality services with the help of competent personnel business unit can
customer satisfaction and loyalty to the large extent (Abreu and et.al., 2012). Along with this,
training and development activity which is performed by HR manager of ALDI is prominent
which in turn helps in increasing the proficiency level of the employees. However, sometimes
training activity negatively affects the motivational aspect of personnel.
The reason behind this, if HR manager fails to identify the suitable training of personnel
then it may result into wastage of time. Along with this, if performance evaluation tool which is
employed by ALDI is not appropriate then it negatively influences HR framework and thereby
employee motivation. Further, conflict management aspect also helps company in developing
high level of motivation among personnel (Kim and et.al., 2015). Moreover, business unit takes
quick action to resolve the issues of employees then in turn into high level of satisfaction among
them. In this way, HR function helps in raising productivity as well as profitability of both
organization and employees to the great level.

TASK 3
P5 Analyzing the importance of employee relations within the business organization
In the present time, good and healthy relationship between both employer and employee
is highly required for implementing all the strategies more effectively and efficiently. Moreover,
when harmonious relationship takes place between the employer and employee then it is highly
easy for the firm to introduce change more easily (Purser and Jarrold, 2013). Moreover, usually
employees resist accepting changes because they do not want to come out from their comfort
zone. In this, on the basis of the existence relationship ALDI can motivate their personnel to
accept change by communicating all the benefits of it.
In addition to this, such relationship also assists ALDI in reducing the issue of employee
turnover and absenteeism to the great extent. Moreover, personnel prefer to work with the
organization for longer duration only when they are satisfied with the decision making and other
practices of firm (Wright, Guest and Paauwe, 2015). In this way, employee retention level can be
enhanced by ALDI though the means of development and maintenance of effectual relationship.
Besides this, it also helps in reducing the cost level significantly. Moreover, recruitment,
selection, training and development activity etc are the main aspects which account for high cost.
Hence, by building and maintaining highly effective relationship with the employees ALDI can
raise employee productivity as well as profitability to the large extent (Kearns, 2010).
P6 Key elements of employment legislation and the impact it has upon HRM decision making
for Aldi
Employment legislation is essential because it provides job security and protection to
employees in against of malpractices at the workplace. In the UK, the government has developed
various laws in the wellbeing of personnel (Holland, Burnett and Millington, 2015). It helps in
dealing with legal relationships between the company and organized economic interests. The
common UK employment laws are working time regulations, national minimum wages, health
and safety, anti-discrimination, parental rights, right to request for training etc. Aldi has adopted
the all these regulations of regulatory bodies to operate the business activities in the UK is an
effective manner. Key elements of employment regulations are individual employment
relationships, employment, wages and remuneration, working conditions, trade union and
industrial relationships, health and safety along with welfare and social security. It has affected

HRM decision making process of cited organization (Mathis and et.al., 2016).
The impact of this can be understood with the help of an example. Anti-Discrimination
act stated that making discrimination with the employees at the time of recruitment and selection
or offering other growth opportunities is against the law (Newton and et.al., 2015). Employer
should avoid discrimination at the workplace. The impact of this on the HRM practices of Aldi is
HR department has developed policies and procedures to stop discrimination with the staff
members. Along with this, every worker get the equal chance to attain the growth and
opportunities of development (Oke, 2016). On the other hand, another example can be taken into
the consideration related to wages and working hour. As per the following law, employer should
give an option to employees to select working hours and faire wages rate for their efforts. In this
context, Aldi HR department has allowed to select the flexible working hours to both part time
and full time working personnel. By doing this, staff members have given their high efforts to
complete their job duties and responsibilities. In addition to this, company has offered fair and
equal wages rate to the employees for their work. The impact of this, personnel have felt
motivated and they have performed their work in more effective manner (Petty, Manroop and
Linton, 2015). From the above discussion, it can be said that different employment laws have
made positive impact on HRM practices of Aldi.
TASK 4
P7 application of HRM practices in a work-related context using specific examples from the Aldi
Human Resource Management practices plays significant role within the organization
that support in managing, motivating and developing personnel so that they may give their best
within the organization. An effective HRM practices within the retail firm also support in
accomplishing the overall objectives with raising the overall productivity of the discounted retail
firm (Huemann, 2007). It has been illustrated that there are different HRM practices that are
applicable within the Aldi it mainly include following-
 Performance management system: The foremost applicable HRM practices within the
Aldi include performance management system with the help of this management can
easily measure the individual staff performance within the store. With the help of
application of performance management system within the discounted retail store HRM

can easily enhances the performance of staff so that they can render quality services in
the future (Kearns, 2010).
 Training and development: Another applicable HRM practices within the discounted
retail chain include engaging in the training and development activities. With the help of
this HRM practices with the store management can easily enhance the competencies and
abilities of the staff that would support them in performing their activities in effectual
manner and also assists in accomplishing the stated objectives (Milner, 2001). Along with
this, training and development practice also benefit the individual staff in enhancing their
learning and knowledge towards their job that support them in attaining the career
development.
 Employee engagement: Another HRM practice that is applicable within the work
environment includes proper engagement of employees and staffs those who are
rendering services within the Aldi store. It is consider as an effective practice that
supports in enabling proper engagement of employees with allowing them comfortable
environment so that they can easily put forward their views and thoughts in the store so
that they may easily take part in taking effective decisions (Paauwe, 2004).
 Recruitment and selection: The last and most important HRM practice that is applicable
within the work related area is engaging in effective recruitment and selection of
candidate within the discounted store. With the help of this practice HRM can easily
recruit and select the competent candidate within the retail store so that they can easily
persuade the customers in purchasing their range of products and services. It has been
assessed that with the proper recruitment and selection of candidate it benefits the firm in
enhancing their productivity (Prince, 2011).
CONCLUSION
From the above research, it can be concluded that human resource management has
played an effective role in organizations. Aldi has one of the world’s leading grocery retailers
with more than 7,000 stores across 70 countries. In the company, purpose of the HR function and
the key roles and responsibilities of the HR functions have varied with objectives of the business.
Along with this, there have various approaches to workforce planning, recruitment and selection,
development and training, performance management and reward systems used by HRM of cited
organization. On the other hand, employee relations and employee engagement have an essential

aspect at the workplace to motivate the staff members. Further, by adopting flexible organisation
and working practice as per employees of choice, Aldi has tried to retain personnel for the long
time within the company.

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