Report on Human Resource Development and Practices at Lidl PLC

This report provides a comprehensive overview of Human Resource Management (HRM) practices at Lidl PLC. It begins with an introduction to HRM, defining its scope and functions, particularly how it aligns with Lidl's objectives. The report delves into recruitment methods, comparing internal and external approaches, and analyzing their respective pros and cons. It examines the benefits of HRM practices for both employees and employers, focusing on employee development, and the creation of a positive work environment. Furthermore, the report explores how various HRM practices enhance the profitability and productivity of Lidl, including the role of employee relations in decision-making and the impact of employee legislation. The application of HRM practices in the work environment is illustrated with examples. The report concludes by summarizing the key findings and provides references. It highlights the importance of HRM in managing the workforce, enhancing capabilities, and fostering commitment and collaboration within the organization.

Human Resource
Development

Table of contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Human resource management scope and function which helps in fulfilling Lidl objectives.
................................................................................................................................................1
P2 Ways of recruitment and their pros and cons....................................................................3
TASK 2............................................................................................................................................6
P3 Benefits to employee and employers from human resource practices..............................6
P4 How different human resource practices enhance profitability and productivity of the Lidl.
................................................................................................................................................7
TASK 3............................................................................................................................................9
P5 Employees relationship which influence human resource decision-making....................9
P6 Different employee legislation and their impact on decision making in Lidl.................10
TASK 4..........................................................................................................................................10
P7 Application of human resource practice in work environment with examples...............10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

Illustration Index
Illustration 1: Sources of recruitment..............................................................................................4
Illustration 2: Organisation performance.........................................................................................9

INTRODUCTION
Human resource management is the practice that helps the managers to proper manage the
work force in the organisation. It starts with attracting the large pool of applicant, select the best
one, provide training so that they can be able to perform task, asses them to find out their
performance and rewarding them for their work. For this report Lidl PLC have been selected
which is German based company have discounted supermarket chain, they operate over 10000
stores across the Europe and recently expanded in US. The company has more than 31500 workers
working for them, they need to manage their employees for that they are organising various
training program for their employee in order enhancing their capabilities. They are able to increase
their productivity and profitability through managing different human resource practices such as
commitment, work in collaboration and creating capability.
TASK 1
P1 Human resource management scope and function which helps in fulfilling Lidl objectives.
The function of human resource is divided under two categories that are management
function and purpose function that includes planning, organising, directing, controlling, hiring,
motivating and managing the human resource in the company. They function are described below:
 Planning: In this process, human resource manager decides that how many and what
type of employees are required in the organisation for fulfilling the goals and objectives
that are determined by the executives (Tang and Rothenberg, 2017). Proper research is
conducted, in which data is collected from the internal sources and then that data are
interpreted in order to find the requirement of work-force for the present as well as future
needs. They determine that how the employee's attitude, behaviour, values and
perception affect the organisation behaviour.
 Organising: Top level management create strategies for achievement of long term goal
and that strategies are divided into small task (Ones and Schmidt, 2017). That task are
delegated to all the employees according to their responsibilities, skills, knowledge and
experience. All the employees are communicated that who is responsible for whom and
determine the relationship between the worker and employer(manager). All the resources
are distributed to each employee so that he/she can smoothly continue his/her task
without any interruptions.

 Directing: For completion of all the activities on time with effective and efficient way.
Human resource managers plan some training programs and through these they guide all
the levels and department of the organisation so that each employee put maximum effort
in their work life. Proper leadership and providing direction helps them to motivate
employees in the company.
 Controlling: At last employee performance is measured by performance appraisal
method or by giving rating to all the members of the company, according to his/her
performance in the organisation. In this step, actual performance is compared with the
planned output so find that worker is able to complete the deadlines or not (Ones and
Schmidt, 2017).
 Selection and recruitment: It is the major function of human resource management
where they prepare for the job description and specification for the vacant position.
Where they plan the responsibilities and duties of the employee and identify the skills,
knowledge and experience required by the employees. After they call people for the
vacant job by providing application form which is done by both ways internally and
externally such as transfer, promotion, advertisement and college recruitment. As they
find maximum number of applications, they start selection process where the best
candidate is selected for the vacant job position.
 Training and development: Human resource management organise various on-the-job
and off-the-job training programs which helps the employees to enhance their knowledge
and skills for doing their responsibilities. When the organisation does activities such as
transfer, promotion of employees or implement new technology in the company, so
employees need training program to learn new software and processes (Martin and Stiles,
2016).
 Job design and analysis: In this function, human resource management decide the roles,
responsibilities and functions of employees where all the workers are explained about
who is responsible for what and whom and what task they need to complete for
achieving organisational and their personal goals.
 Compensation: In this they decide that what salary and wages is to paid to every
employee according to their work, skills, experience and knowledge. They also plan for
incentives and bonus for those employees who work more effectively and efficiently for

achieving organisation goal so that they can motivate other employees to work hard.
Monetary benefits and incentives are the best way to motivate and fill enthusiasm in the
employees.
Human resource manager helps top level management that how to manage work force
effectively and efficiently in a business. They guide higher executive related to the various
problems of employees such as fulfilment their personal objectives, solving disputes, providing
salary and incentives etc. They suggest top level management that they can achieve their goals by
managing human resource in the organisation. The purpose are as follows:
 Creating capability: In order to serve differentiate goods and services to the customer
they build capabilities in the organisation's employees. Workers should be aware about the
optimum utilisation of all the resources such as raw material and machinery so that they
can reduce wastage and shortage and produce quality goods in order to satisfy customer
needs and wants (Tang and Rothenberg, 2017).
 Fulfilling the commitment: Some strategies are planned by the human resource manager
of Lidl to increase the commitment of work force with the internal people of organisation
as well as external people that are suppliers, customers, trade unions and distributors. Then
these strategies are communicated to the top-level managers so that can able to motivate
employee to build commitment and fulfilling them effectively. Starting of this process
made by selecting those employees who can work for the organisation in loyal way or
those who really think that they want to be part of the company.
 Work collectively: Human resource management want that all the employees of the
organisation work collectively with the top level of management so that they can enhance
their skills and knowledge by learning with the executives of Lidl. The main objective of
this function is to hire the best employees and managing them, providing benefits to them
and plan some development programs for the workers (Tang and Rothenberg, 2017).
P2 Ways of recruitment and their pros and cons.
 Internal and external advertisement: It is the way where advertisement is given in
newspaper, magazine and internet portal so that they can able to bring large number of
application for the vacant job position.

 Transfer: It is the process of shifting current employee from present job to the other
similar job. There is no change in responsibilities, rank and prestige. The salary of the
employees is same in this recruitment.
 Promotion: It is the method where the current employees are shifted from its current job
to the higher prestige position. The responsibilities and salary increase in this type of
recruitment. This process happens when the higher position is vacant and human resource
finds that the current employees are capable to fill that post (Martin and Stiles, 2016).
Illustration 1: Sources of recruitment
(Source: Recruitment, 2017)
 Employee exchange: These are the agencies which hire the employees on behalf of
companies and they charge for it. When there is any vacant position in the organisation,
they provide job description and specification to that agencies and then they organise
recruitment and selection process and find the best candidate for the venture.
 Casual callers: These are the person who casually come to the organisation for the
purpose of employment. This method is most economical for the company (Martin and
Stiles, 2016).

Source Advantages Disadvantages
Internal
It improves the morale of the
employees, if the individual
given a chance to fill the
higher post because it carries
more status and pay.
When the employees are being
selected internally, error
possibility is very low because
the organisation keep the
proper record of every
employee and analyse their
performance on monthly basis.
All the employees feel secured
for getting chance of
advancement so that loyalty
increases and turnover
reduces.
As the existing employees are
aware about the work culture,
ethics, responsibilities and
procedure of the company so
less training cost arises.
Employee will develop
themselves to occupy the
higher post.
Capable person will able to
entry into the organisation.
In this method, creative and
innovative thinking can't be
followed
It limits the number of
potential employees.
If no one is capable to fill the
higher position then this
method will not work.
Higher requirement of
management development
programs.
Business are already aware
about the strengths and
weaknesses of employee’s.
External
External source of recruitment
provides wide choice to the
organisation. It is suitable as
It the employees are joined
outside from the company then
the existing worker will

per the skills, education and
training.
Selecting the individual from
outside will bring new ideas to
the organisation. The person
who is having experience can
suggest new things and
methods.
demoralise they think they can
fill these vacant jobs.
High turnover, because the
existing employees are given
change to get promoted.
This method is expensive
because it includes huge cost in
doing advertisement in media
than conducting test like
personality, initiative etc. and
at the end organising interview.
TASK 2
P3 Benefits to employee and employers from human resource practices.
Lidl's human resource practices consist of recruitment, selection, training and
development, performance measurement, employee benefits and compensation. Proper managing
these activities will serve benefits which are explained below:
 Development of the employees: Lidl arrange development programs in the organisation
environment and organise competitive activities in order to enhance experience, skills and
knowledge of the workers. Leader guides them how to act on single situation. They also
arrange real work environment in which every employee is allotted some job or some
difficulty, resources are render to them in order to solve the difficulty. Then the
programme observes the response of each workers and accordingly guide them how to take
decision, analyse condition and act on that trouble. Through these activities' employee
enhance their knowledge, skills and experience and will able to learn to adopt changes as
per the competitor (Martin and Stiles, 2016).
 Promotion of positive environment: A successful organisation will always create a
positive environment and favourable performance for employees, for making employees
happy and creative. Lidl had adopted practices such as giving reward to the worker who
are productive for the company which give benefits to the company and other employees

to work hard and smart. This will make employee feel that they are fruitful for the venture
and the organisation also think for their benefits (Martin and Stiles, 2016).
 Motivating workers: Managers should use different practices which increase employee
performance. For that managers need to hire that employee who manage their own and
others employee task efficiently and effectively. Successful managers execute human
recourse activities and help all the worker to enhance their productivity and efficiently
achieve all the standard.
 Enhancement in self-esteem: Human recourse management endlessly observe and
investigate the activity of each employee in the organisation. They make task deadlines as
per to employee abilities and willingness. After that workers are being rewarded if they
achieve the task and work efficiently which will enhance their self-esteem and morale.
 Work in team: Human recourse practice build team spirit in the employee. Lidl organises
various team activities after that they allot task which is to be completed by team.
Motivator of the team helps employees to get work how in team, transfer the information
and help employees if your work is completed. These practices make learn the employee to
work efficiently in the group.
P4 How different human resource practices enhance profitability and productivity of the Lidl.
Organisation most important objective is to increase production and productivity where
employees are the assets for that objective. If the performance of the employee will increase then
the organisation performance will also increase which leads to more satisfied customer (Tang and
Rothenberg, 2017). There are some factors that shows that there is relationship between the human
resource and profitability, these factors are as follows.
 Arrangement of development programs: Lidl arrange various development programs in
the organisation and create competitive task which enhance skills and knowledge of the
employees. Leader guide them how to act on particular position and gain competitive
advantage. They also plan for real work situation and environment where each employee is
assigned some work or problem, resources are given to them in order to solve the problem.
Then the leader observes the response of every employee and accordingly guide them how
to take decision analyse situation and act upon that problem. These practice's helps
employee develop their values, skills, ethics, knowledge and experience and make them
learn how to mould then according to environment and competitor.

 Payment and reward management: The company follow the standard target payment
system where the salary is provided on the basis of production target. Such as the standard
performance of worker is to produce 1000 units per month, if he produces, he will be
provided $10000, if an employee produces beyond that he will be rewarded with
allowances so that he gets motivated and work hard for organisation (Tang and
Rothenberg, 2017).
Illustration 2: Organisation performance
(Source: Human resource practice leads to organisation performance, 2016)
 Best working environment and Flexible schedule: For young workers, work-life balance
is huge attraction way. They need to have balance between their personal life and
professional life, where they have that much time to give value to their home. If employee
have to do work more than their capacity, hindrance and stress will gain and cut down in
quality production. Employee should have given break between the job hour so that they
can boost up their energy and work efficiently which will give more profitability and
productivity.

 Flexibility in working option: In a company, there are various type of workers are hired,
they have their own beliefs, values, ethics, culture, norms and believes. Canary wharf
given that, employees need to work as to their flexible working hour to motivate them
work effectively
 Selection of better employees: Productivity and profitability somewhat start with training,
but moreover it starts with the finding and choosing right worker for particular job
vacancy. Demotivated employee will be demotivating other people in the workplace
whereas the motivated worker will generate quality work in bad working situation (Martin
and Stiles, 2016). Selecting the best class of employee will lead to improve the quality of
production. Human resource managers have quality to pick the motivated employee and
disqualify demotivated so that company objective can be achieved and production
increases in order to increase in profitability of venture
TASK 3
P5 Employees relationship which influence human resource decision-making.
Human resource management is the important part for the organisation. Lidl want that their
human resource should know their responsibilities and know how to attract large number of
customers. The company knows the importance of the workers that they are way to success. The
organisation has human resource training system where they arrange different training programs to
have competitive advantage from the rivals. They always give this statement “can do” which
states that every employee can performs their task and fulfil the deadlines. They train their
employee and motivate them to do all the task. Company organise on-the-job and off-the-job
event where they are highly motivated for effectively working. One important aspect to be
considered in training the employee is size of the organisation. If the size is small then the more
number of training will not be organised and it the organisation size is big then the training
program is necessary to enhance the skills and knowledge of the employees (Ones and Schmidt,
2017).
Human resource system is implemented in the organisation so that employee can adopt the
changing environment and produce quality goods. Organisation taken major initiative to provide
paid leaves for some specific reason like medical leave, urgent work leaves. They also start work
from system where employees are free to do work at home but the quality should be standard

otherwise it will not be acceptable. These all activities help the workers to complete their task in
more effective and efficient way (Tang and Rothenberg, 2017).
P6 Different employee legislation and their impact on decision making in Lidl
Different laws and regulation are made to protect the interest of the employees. They have
right to be secured and safety should be provided to them. Two types of safety they need, one is
employment security and other is health security. Employment safety includes minimum wages.
The law includes. The National Minimum Wage Regulations 1999 (Amendment) Regulations
2009 Act, which serve national minimum wage to employees. This will put good salary to the
pockets of low wage earners. It would be wrong to punish less paid workers for mistakes to rich
bankers. Under Workplace Parking Levy, for parking staff has to be paid by the employer. This
will put additional tax burden on the employer. National Minimum Wage Regulations 1999
(Amendment), this has transformed the way tips, service charges are treated (Martin and Stiles,
2016).
TASK 4
P7 Application of human resource practice in work environment with examples
 Productivity for organisation and employees: Training programs are held by the
organisation to enhance the ability and skills of the employees. Some competitive goals is
allotted by the leader where every worker work hard to finish the goal on time and get
appreciation. Leader teach employees that they have to act on problem and how decision
are made.
 Increase in profitability: Increase in business performance and personal productivity will
increase in profitability of the organisation. Employer should provide reward to the
employee for working efficiently for the entity. The reward can be in any form like
incentives, certificates, bonus, medals, incentives and additional benefit like vehicle
allowances and food allowances (Martin and Stiles, 2016).
CONCLUSION
It can be summarised from the report that employees are very essential part for the
organisation. They should be provided training programs that enhance their skills, knowledge and
experience. Better management of human resource practices includes hiring capable employees,
providing them resource, delegating authority and responsibility, arranging training programs and
compensating them. Therefore, the above report concludes that human resource management

includes various function such as planning, organisation, directing, controlling, hiring, training,
guiding and compensating. The report states that organisation success is in the hand or employee
(Ones and Schmidt, 2017). If they work in motivated way then the productivity and profitability
increases and if not then it reduces.

REFERENCES
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