Human Resource Management in Aldi: A Comprehensive Report

This report provides a comprehensive overview of Human Resource Management (HRM) principles and practices, with a specific focus on the application of these concepts within Aldi, a leading grocery store in the UK. The report begins with an introduction to HRM, emphasizing its role in enhancing e...Read More

HUMAN
RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and functions of Human Resource Management ..............................................1
TASK 2 ...........................................................................................................................................4
P3 Advantages of HRM practices within Work Place...........................................................4
P4 Effectiveness of HR in maximising growth and productivity of firms.............................5
TASK 3............................................................................................................................................6
P5 Importance of employee relation in decision making process..........................................6
P6 Key elements of legislation act of workers.......................................................................7
P7 Various application of HRM practices .............................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Human Resource Management are linked with managing overall resources of firms. It is
helpful in achieving goals of firms by enhancing skills of employees so that their performances
can be increased. It involves recruiting of potential employees who can add values for firms.
Human resource management starts with hiring employees, selecting , training and development
process to make them familiar with work environment (Armstrong, 2014). Every firms recruits a
persons who has the capability to mange all the works of department in business and thus is
named as HR manager. The main responsibility of HR is related with focusing working on
system and process by which they had to work. Aldi is the leading grocery store in UK. Its main
aim is to identify differential needs of people and make them products available according to
there choices. It is the organisation which is owned privately with shareholders involved in
working. This report contains study about functions and benefits of H R and different practices at
work place.
TASK 1
P1 Purpose and functions of Human Resource Management
Human Resource management have the responsibility to increase performances of there
workers by organising different training and development activities which increases there
efficiency. There main aims are related with management of all the available resources in an
effective ways. If the resources will be effectively used than it will result in growth and
development of firms. Training activities are helpful in motivating employees so that they can
achieve business goals. The main responsibilities of HRM are related with hiring potential
employees who have the capability to do the desired work, improving there skills in order to
achieve work productivity. Motivation is the factor that achieve work efficiency as employees
are willing to do the work with there full potential (Thompson, 2014).
Functions of HRM includes:
Recruitment and selection: It an important process of human resources. If the
organisation wants to perform there operations than they need potential employees who have the
desired skills to do the work. The process starts with recruiting of employees. It is related with
searching of potential employees from various applicant who have capabilities to do work in an
effective way. Aldi has selected a particular criteria for there new employees and the persons
who fulfils all these criteria are selected according to there qualifications and knowledge level.

Major aims of these process are linked with selecting educated employees who have desired
skills and knowledge for running different business operations. This process is helpful in
reducing cost which would have wasted on those employees who are not suitable for the job.
Thus it results in selecting best manpowers who can effective perform there business operations.
Orientations: This process is related with making employees familiar with the work
process in an organisation. This is essential because workers should be aware about their
company and what operations is perform by them. This is beneficial for employees so that they
can become familiar with the work place and accordingly can adjust themselves. Aldi is also
organising orientation programmes for there new employees so that they can be familiar with
working process. It also describes rules and regulations which they had to follow by performing
business operations (Beardwell, 2014).
Maintain good working conditions: It is the responsibility of HR manager to create
positive environment at work place so that all task are carried out in there assigned ways. It helps
in retaining new employees at work place because they are happily working in healthy
environment. All the employees cooperate with each other in performing business operations and
thus it results in good production. Aldi had established different functions for there employees in
which they are providing both financial and non financial benefits to them who are capable to
achieve. They are also focusing on establishment of employee welfare schemes in order to
satisfy employees that organisations cares for there workers.
Good Employee Relations: Workers are the main source in an organisations. All the
activities are carried by manpowers in order to achieve success. It is essential that manger
maintains good relations with there employees, listen to there problems if they are facing any and
provide solutions for the same. Alsi had step forward in planning out various activities which are
beneficial for maintaining healthy employee relations. These activities are beneficial for
managers as they can know about there employees at personal and business level (Colvin,
2011).
Training and Development: These activities are organised in order to enhance skills and
knowledge of there employees in organisations. These activities are helpful in developing skills
of workers, improve there current and future performances and enhancing there present
knowledge level.
P2 Strength and weaknesses of various approaches to recruitment and selection

Recruitment and selections are major functions of every business firm. Management of
human resource and planning process are based on these process.. It includes various process like
job designing, career planning, performance appraisal of employees, promotions at higher post
and transfers all are included in recruitment process. These process are carried out effectively by
every firms in order to hire best and capable employees. Recruitment process are linked with
motivating present or new employees to apply for vacant post in an organisation (Demo and et.
al., 2012).
(Source: Recruitment and Selection process, 2017)
Internal Sources: This process is related with occupying the vacant post from the
resources which are available within the firms. Many firms are focusing on giving good
opportunities to there present employees rather than waiting time in recruiting new employees
from outside the organisation. Aldi is using internal sources in order to maintain sustainability at
work place by promoting employees from within the organisation. This is beneficial for
employees as new opportunities are opened for them by which they can grow and succeed. It is
also helpful in providing benefits to employees as they can change there job positions. Firms are
putting notices about vacant positions and interested employees can apply if they think it is
beneficial for them to become successful. Promotions can be based on skills and knowledge of
employees which helps them to get good opportunities. The strength of internal hiring process is
related with low expenditures on advertisement as employees are recruited from within the work
place. Opportunities for employees as they can enhance there knowledge level if they are
promoted at higher post. It also has a disadvantage as the persons who are highly qualified and
have good knowledge and skills are not able to apply for the vacant post (Purcell, 2011).
External Sources: It is also an important process of recruitment. It plays a vital role in
business functions. They are helpful in hiring new talents with different knowledge level and
Illustration 1: Recruitment and Selection

skills to perform business operations. If company is recruiting new employees than they are
developing innovative ideas by which different operations can be performed effectively. The
process of hiring employees is related with the criteria which are enacted by external firm. Aldi
had adopted this recruitment process for selecting best employees from large number of
applicants for the vacant post in organisations. It has many advantages as people who are well
qualified and have desire skills can apply for the post and thus opportunities for them to grow. It
provides benefits to firm as well because if there are hiring new employees from outside than it
results in new knowledge and skills for performing innovative tasks in order to achieve success.
If it has advantage its also has drawbacks like more money is needed for hiring manpower from
outside the firm. It is very time consuming process. The resources are highly used in this process
in comparison with internal recruitment process. This gap arises because new employees are not
familiar with the work operations (Thompson, 2014).
TASK 2
P3 Advantages of HRM practices within Work Place.
Human Resource management greatly contributes in increasing profits for firms. HRM
practices are involved in different operations of firms. These practices are followed by Aldi in
order to achieve goals and objectives in desired time frames. Human resource practices also
involves recruitment, selection, training and development of employees, Payrolls,
compensations, transfers, promotions and benefits which are linked with administrations are also
included in various HRM practices. If there will be no coordination between different
departments of firms than activities will not be completed in effective ways.
Benefits of HRM practices in relation to employers and employees are described as:
Development of employee skill: HRM practices are helpful in developing skills of
persons which leads to success of firms. HR mangers should conduct seminars and training and
development programmes in order to enhance knowledge of employees which can be used in
performing different operations. Training needs are helpful in increasing performances of
employees which results in higher productivity for firms. Aldi is mainly focusing on effectual
use of resources in order to increase profits (Beardwell, 2012). HRM practices are useful in
developing performances of there employees by which productivity ca be developed. Company
is mainly focusing on motivating there employees which results in achievement of goals and
objectives.

Building a flexible work place: HRM practices are operating in flexible work environment in
which employees can do there work effectively. Employees will not be bound to follow any rules
mad regulations thus they will work in healthy work places. It results in motivating workers so
that they can put all there efforts in performing business operations. In today's words every
persons want to work according to their choices where there is no one to control them in their
activities. They wants to select the working times which are suitable for them. Thus Aldi had
adopted flexible working hours in order to give benefits to there workers.
Promoting positive behaviour: The main objectives of firms are related with increasing
knowledge of employees in order to achieve success. HRM managers should be concerned about
the behaviour and attitude of there employees. This helps in establishing positive relations at
work places. Good working environment are helpful in developing personal and professional
relationships with employees (Hegewisch, 2017).
P4 Effectiveness of HR in maximising growth and productivity of firms
Human Resource plays an important role in achieving growth and development of firms
which results in rise in profit ratios. Each firms adopts plans and policies which can be used
effectively for achieving growth and success of organisations. If all the operations are performed
effectively and departments are linked with each other than there will be coordination between
different work activities which results in developments of firms.
Different factors which are helpful in increasing growth and production are described below:
Information Systems: HRM practices are helpful in increasing performances of
employees in work place. Goals and objectives are effectively achieved as indexes and
information are widely transferred from one place to another. The information systems are also
known as knowledge administrations as it is helpful in enchaining present knowledge of workers.
The HR manager are responsible to provide relevant informations to there employees which will
beneficial for them in caring out different business operations (Choi, 2011). Aldi recruits those
employees who are having good knowledge about marketing aspects so that they can be hired for
the post of market representatives. Informations are passed in hierarchy order from top to bottom
levels as effective communication plans are adopted by firms so that right informations can be
reached to employees. This is helpful in achieving goals and objectives of firms. These can be
achieved effectively by planned management process. Good communications which are adopted

by firms are helpful in reducing miscommunications among there workers. These process are
beneficial for employees as they helps them to understand there responsibilities at work place.
Talent Management: For efficient working and achieving success firms hire those
employees who have the capability to increase productivity for firms. This can be achieved by
planning effective recruitment and selection process so that new employees can use their
knowledge in achieving aims and objectives of firms. Aldi is mainly focusing on hiring those
employees who will retain for long time which results in increasing productivity. Every persons
has his own skills by which they perform business operations thus goals are also achieved
differently by different employees. Knowledge, skills and talents of employees are important for
firm sin order to perform various business operations. It is the duty of HR mangers to motivate
there employees so that they can achieve desired business goals in order to achieve growth and
development. Various tools and techniques are used by Aldi in order to analyse talents and
capabilities of there new employees. It helps in using skills of employees at right place in order
to increase profit ratios and achieve success. Awards are given to employees if they perform their
work Effectively. This is the best method used to motivate and retain employees (Van Dooren,
2012).
TASK 3
P5 Importance of employee relation in decision making process
In present world organisations are focusing on establishing healthier relations with there
employees in order to increase productivity. This is helpful in attaining success for firms. If Aldi
focuses on developing healthier relations with employees than it results in development and
success of Aldi. Positive relationship are helpful in satisfying employees at work place which
results ion increase efficiency at firms. The main aim of HR is to maintain good relations so that
no conflicts takes place between employees thus they coordinates and work together with each
other to achieve business goals. Good work environment are also helpful in ensuring safety of
employees so that they can carry there operation in planned way (Meredith Belbin, 2011). If
employees are achieving good results than they are being rewarded for there performances which
helps in increasing there satisfactions. If there arises a situation in organisation in which persons
are not able to take right decisions than employers can take help help from there co workers who
are available at work place. Thus good relations helps in solving conflicts and issues in easier
ways.

Importance of Healthy Relations at Work Place are described as:
 It helps in reducing miscommunication between employees which results in adopting
effective communication plans. Aldi is focusing on establishing positive relations in order
to maintain good identity of firms.
 If good relations are maintained with workers than it results in increasing productivity for
firms. This results in increasing profit ratios which is step towards growth and
development.
 If all the workers are satisfied with the working plans than it results in gaining loyalty
among employees (Hendry, 2012).
 It is helpful in achieving sustainability of employees which results in retaining employees
for long term at work place.
P6 Key elements of legislation act of workers
Every business had to adore to rules and regulations in order to achieve growth and
development. If these plans are not followed than company had to face difficulties in there
operations. Various legislation are followed at Aldi which are described below:
Age Discrimination act: This act is related with determining age of individuals in an
organisation. Company can hire employees for there work who have attained the age of 18 or
above. This is applied in all firms who had employed more than 20 employees in there business.
Organisations had to follow the rules in their working plan and they cannot fire the employees
who have reached 40 years of age.
Anti Discrimination Act: This act implies that managers cannot differentiate between
their employees who are working at same levels. Favouritism between workers can be related to
gender, caste, creed, colour income level etc. This act is beneficial to employees who are facing
discrimination so that there problem can be solved. This act had to be followed by organisation if
they have more than 20 employees involved in business process. This act implies that employers
are not having any right to discriminate with their employees or fire them from employment
(Schuler, 2012).
Minimum Wage act: This act was laid down by legislations in order to provide minimum
wages to workers in respect to there work. Employers have to provide wages to there workers
because they had worked for business operations and he cannot deny them from paying the fixed

amount. This act had to enacted by all those organisation who have more than 15 workers in their
business activities.
P7 Various application of HRM practices
There are different practises which are adopted by Aldi are described below:
If another branch of Aldi had to be opened than effective manpower had to be recruited
who can performs different activities in planned ways in order to achieve business goals. The
products should be manufactured keeping in mind the needs of customers.
Human resources are utilised differently by various firms. Big organisations are using
more resources in there operations. Business revenues should be generated effectively in order to
retain large profits.
Proper recruitment and selection procedures should be followed in order to hire skill and
talented employees who can achieve growth and development for firms.
Person who is hired by firms should correlate his working with the activities which he
had to perform at work place (Huselid, 2011).
The main aim of firms are related with fulfilling the vacant post in order to run the
business operations. They need talented workers for this process who can achieve success for
firms. It required effective planning so that right persons can be selected for the job who can
work with his full potential.
Business can be expanded by using innovative process for development of products. This
helps in increasing profit ratios for firms. If products are made according to needs of buyers than
it will help in satisfying there needs at international areas (What is human resource management.
2015).
Effective recruitment and selection process are adopted by Aldi in there new branch so
that new employees who are hired can expand the business operations which results in high
growth and profits.
In an organisation recruitment and selection are major work of human resource managers,
the. HR management organise recruitment and selection process for hiring new employees.
Recruitment – It is the method in which large number of applicants are received and the
mangers choose among the best applications who have desired qualification and the individual is
suited for the job. Three types of recruitment sourcing such are internal sourcing, external

sourcing, third party sourcing. ALDI HR management organise recruitment process which
includes:
Job analysis - For analysis job profile HR manager analysis job in this they have build
a job description and then review this description, setting prefer minimum employees
qualification, define salary range.
Sourcing talents through Advertising and networking – Networking is very effective
tool of sourcing, in this HR manager go through word of mouth , attending college and career
fairs for sourcing. The today environment advertising is one of the major mode of sourcing some
advertising mode are classifieds section of daily or weekly newspaper, social networking sides,
online portal, employment websites etc. In advertisement very detail related to job like
qualification, age limit, year of experience, and submission process.
Screening – In this step screening all the applicants according to job description and
requirement. After completing these all steps HR manager start to select the right candidate for
right place.
Selection- Selection is a process of selecting potential right candidate at right place at
right time. Some main step of selection are as follows:
Interview - HR manager have an option to use different types of interview methods like
comprehensive structure interview, unstructured interview, situational interview, behaviour
description interview, structured behaviour interview and oral interview boards etc. Interview are
divided into two parts one is preliminary interview and second is employment interview.
Interview mode are general two types one is face to face interview and second is telephonic
interview.
References and background check - company want to verify information provided by
candidate. This step are only formality it can not more effect on managers decision.
Physical examination – In this step candidate physical examination can be done for
ensure that employee are mentally and physically feet.
Job offer- Company give letter of appointment to selected candidate.
CONCLUSION
From the above report it can be concluded that Human resources are helpful managing
the resources of firms which are used performing business operations. Recruitment and selection

process are followed by organisation in order to hire employees who are well qualified and had
required skills to do the work to achieve business goals. Good employee relations are helpful in
motivating employees so that they can work efficiently to achieve desired goals. Different act are
laid by legislations which are helpful in protecting employees if they are facing discrimination at
work place.

REFERENCES
Books and Journals

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Beardwell, J. and Thompson, A., 2014. Human resource management: a contemporary
approach. Pearson Education.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource
Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Choi, M., 2011. Employees' attitudes toward organizational change: A literature review. Human
Resource Management. 50(4). pp.479-500.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
Demo, G., and et. al., 2012. Human resources management policies and practices scale
(HRMPPS): Exploratory and confirmatory factor analysis. BAR-Brazilian
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differentiation and strategic human resource management.
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outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Lengnick-Hall, C. A., Beck, T. E. and Lengnick-Hall, M. L., 2011. Developing a capacity for
organizational resilience through strategic human resource management. Human
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Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource
Management International Digest. 19(3).
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Online
What is human resource management. 2015. [Online]. Available through:
<http://www.whatishumanresource.com/human-resource-management>. [Accessed on
20th July. 2017]