Human Resource Management Report: ALDI HRM Analysis

This report provides an overview of Human Resource Management (HRM) practices within ALDI. It begins with an introduction to HRM, defining its purpose and core functions, including planning, organizing, staffing, directing, and controlling. The report then delves into workforce planning and resourcing, examining various recruitment and selection approaches, such as internal and external sources, along with their respective strengths and weaknesses. The internal sources include promotions, transfers, and recruiting former employees, while external sources include direct recruitment and advertisements. Furthermore, the report highlights the benefits of effective HRM practices for both employees and employers, such as employee development, positive behavior promotion, and building a flexible workplace. The report concludes by analyzing the effectiveness of different HRM practices and their role in organizational growth and development.

HUMAN RESOURCE
MANAGEMENT

INTRODUCTION
Human Resource Management is the procedure of hiring and evolving employees for
making them more valuable for organisation. It includes manipulation of job analysis, recruiting
right people at suitable job, planning personnel needs, inducting, orienting and training,
administrating salary and wages as well as providing compensation benefits and incentives, etc.
Along with this, human resource department is also liable for monitoring the performance of
employees, resolving conflicts or disputes and communicating with staff members at all levels
(Hendry, 2012). ALDI limited is the chosen organisation in this present report which is a retailer
of grocery products and services across world. It is established in 18 countries with 10366 stores.
The document will include various functions and purpose of human resource management. There
will also be a discussion upon employee relations and employment legislations In addition, the
value of employee relationships in the decision making process of the company will also
described briefly in this present assignment. .
TASK 1
P1. Purpose and various functions of HRM applicable to workforce planning and resourcing
Human resource management is a function that is concerned with motivating, hiring and
maintaining people at the workplace. Mostly, it targets on improving skills and abilities of
employees in order to achieve success in ALDI limited.
Purpose of human resource management: -
 To assist the business organisation for attaining its goals and objectives effectively and
efficiently by providing competent as well as motivated employees
 To develop and manage the quality of work life that creates employment in the the
organisation
 To enact and cultivate cordial relations in between management as well as employees
 To assist in preserving the ethical policies and behaviour in internal and external
environment of organisation
 To maximise the level of employee's self-actualisation and job satisfaction
 To make maximum utilization of available resources

 To reconcile individuals or goals with organisational set targets.
Functions of Human resource management: -
There are majorly two types of functions of HRM that is, Managerial and Operative
which are explained as below:
Managerial functions: Planning – It consists of pre-determined course of action. Planning is the process of
regulating organisational goals and it is also helpful in the formulation of strategies and
programmes in order to achieve them (Boxall and Purcell, 2011). In ALDI limited,
planning is a future oriented affair that is concerned with clearly described the desired
direction of business activities in future. In addition, forecasting is an essential factor of
planning process whereas, further functions of HRM are also based upon same. Organising – In organising process, structure and allocation of jobs are determined. It is
the function of management that follows planning; organising is the systematic activity of
integrating, structuring and co-ordinating tasks and practices which is implemented in
order to attain goals and objectives of the company. Thus, organising is focused to give a
specific task to each subordinate, establishing departments, delegation of authority to
staff members, implementing channels of authority and coordinate their work and so on. Staffing – Staffing is the process through which HR manager select, train, promote and
retire their staff members. In staffing, employers are decided that what type of person
should be hired. Along with this, it is the management function that describe as filling
position across the firm through which managers can identify the workforce
requirements. It is also helpful in recognising the issues which are related to job analysis
and over these problems and issues. Directing – It is concerned with activating group efforts for accomplishing the desired
goals and objectives of company. Along with this, directing also encompasses to motivate
or encourage the morale of employees. Controlling –It includes planning, assessment and control upon the performance as well
as staffing activities of the business organisation. In controlling function, some
responsibilities are involved, i.e. ensuring a high quality reporting, efficiency
improvements, creation of transparency and determination of value added of all HR
measures.
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Operative functions: -
Procurement involves that right type of person to be placed in suitable job within the
company in an appropriate manner. In addition, it also consists of some activities like planning,
recruitment, selection, induction, placement and orientation of new employees.
Development means to improve the skills, competencies, values and knowledge of
employees so that they can become more productive for the overall business organisation (Jiang
and et. al., 2012). In ALDI limited, this function is liable for providing training and development
assistance to workers as per their needs and capabilities.
Compensation relates with determination of salaries and wages. In other works, it is
assistive in order to ensure that equitable and fair remuneration is being provided to employees.
P2. Various approaches to recruitment and selection with their strengths and weaknesses
Recruitment discloses with analysing job requirements and then finding the prospective
persons who are stimulated and engaged in order apply for the job over the company. It is the
process of maintenance and development of adequate manpower resources; recruitment is the
first step of selection which is completed with placement. In other words, it is helpful in
discovering people in order to meet the desires of staffing schedule and to engage with effective
measures for attaining and selecting the efficient work force. Apart from this, selection is the
process of evaluating and interviewing candidates towards a particular job or task. It means to
choose the most appropriate candidate for a vacant position in business organisation. Selection
also refers to an expulsion of unskilled candidates and choosing those only who have pre-
requisites qualification and abilities in order to fill vacant positions.
There are two types of sources of recruitment and selection which are stated as follows:
Internal sources – It refers to hiring employees within the business entity. Applicants
who are currently working in the organisation are seeking for the higher positions with the same
organisation. Along with this, in ALDI limited, at the time of recruitment, managers give initial
consideration to such employees. Recruitment is an essential process that provides opportunities
for the growth and development of staff members (Meredith Belbin, 2011). Below mentioned
sources of internal recruitment are as follows:
Promotion relates to upgrading the cadre of workers by monitoring their performance. In
promotion process, employees shift from a lower position to higher one with more obligations,
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values, status, remuneration as well as facilities. ALDI limited fills its managerial positions with
the help of promotion process. .
Transfer is the procedure of reciprocation from one job to another without changes in the
roles and ranks. It is also related with the interchanging of employees from one department to
another one or may be from one location to another that depends upon the necessity of the
position within the company.
Recruiting former employees is the technique wherein ex-employees are called again for
filling the vacant position of company. It is a cost effective method that saves plenty of time of
managers. The major advantage of recruiting former employees is they such persons are very
well versed with the roles and responsibilities of the job; apart from this organisation needs to
spend less on their training and development assistance.
Merits :
 Simple, easy and cost effective.
 There is no requirement of induction and training programmes because the candidates
previously knows about their job roles and responsibilities.
 Employees stay for very long term period in the company if they are continuously
promoted at higher positions. So as internal recruitment is helpful in attaining and
retaining workers.
 Easy to pick best talents over the business entity very quickly. Motivates and encourage workers of hard work in order to get higher positions.
Demerits:
 There is no opportunities for external applicants.
 There is big issues and jealously among the employees who are promoted and those who
are not promoted.
 Lack of innovations.
External sources – It focuses on hiring or recruiting applicants externally in order to get
better performance. Because external workers are always feel innovative and young to get
opportunity in new firms. This is make them able to more active and innovative enough as they
can find business problems and fix it (Choi, 2011). Although, in ALDI limited external persons
could be tougher but they have a positive impact upon the business. Sources of External
recruitment: -
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Direct recruitment is the main source of external recruitment where managers are recruit
qualified candidates by placing a notice of vacancy on the notice board of the company; this also
known as factory gate recruitment.
Advertisements are also a most famous and preferred sources of external recruitment. In
this, job vacancy is declared by the different print and electronic methods with a particular job
specification and description as well for the requirements.
Merits:
 Create and develop new opportunities for job seekers as well as experience persons.
 Branding increases externally.
 New employees have new and fresh ideas or innovations. Development is overall strategy of business.
Demerits:
 High cost and time consuming
 Sourcing quality profiles becomes difficult.
TASK 2
P3 Benefits of HRM practices within the business organisation
Human resource management includes some practices which are used by HR
professionals and managers in order to manage people at workplace. They are responsible to
establish coordination and cooperation among staff members as they can meet goals and
objectives of the firm. There are given following advantages of HRM practices that are stated as
follow: -
Benefits for employees Benefit for employers
Developing employees – Knowledge and
skills of employees can increases the
competitive advantage for the company. HRM
practices are liable in order to satisfy
employees and also inspire them as they can
become intellectual assets. ALDI limited also
focusing on investing more on improving
skills and competencies of staff members. For
Promoting positive behaviour – An
effective human resource practices are helpful
to create a positive behaviour among staff
members. It also provides good and healthy
working environment to people as they can
perform tasks in well manner. In the broad
sense, HRM practices gives strengthen and
rewards to the desired employee behaviours.
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that, HR needs to arrange some training and
development session for the growth and
advancement of existing employees of the
company. High skilled and qualified staff
members are able to give new and innovative
ideas of production.
Motivating and encouraging employees –
HR manager of the enterprise needs to focus
on maximising employee performance, i.e.
employers tends towards hiring such type of
managers who can manage or organise all
working activities effectively over the
organisation. Successful managers conduct
various HRM practices in order to increases
efficiency as well as capabilities of their
employees as they become more compatible
and compete towards external environment
(Huselid and Becker, 2011). This will put a
huge impact upon market position of business
entity. In a broad sense, employees who are
working such type of managers tend to feel
more prompted and inspired.
In other words, it focuses on providing
appropriate remuneration to employees as they
can attain to work hard at company because
workers are productive so that ALDI limited
can easily achieve its goals and objectives in
competitive market. Along with this, these
aspects of managing employees have to fit
firm's culture (Wright and McMahan, 2011).
Building a flexible workplace – Effective
human resource management practices affects
upon shifting demographics in the workplace.
In other words, these are liable in order to
make flexible working shifts for employees so
as they can work as per their interest and
choices. HRM practices are also helpful in
attaining and retaining employees for a long
term period by providing them flexible
working shifts.
P4 Effectiveness of different HRM practices
HRM has a significant role in growth and development of the company that increases its
profits as well as sales ratio. There are various strategics and policies are developed by the HR
manager in order to determine the success of the firm. In ALDI limited, if work is carried out by
convenient prepared plans then it will helps in accomplishing goals and objectives of the cited
company. Below mentioned the effectiveness of HRM practices in the context of growth and
productivity:-
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 Talent management – Retaining workers who are useful to the firm for a long term
period helps in increasing the performance or productivity level. Talent management
consists to the prospects of required human capital for the business organisation and
planning in order to meet such needs. In this world, each and every person is different
and has talents to achieve tasks goals in various ways that are useful for the firm. Along
with this, employees use their talents as they can perform well; this will help in
enhancing the productivity as well as maintaining the success of the business
organisation (Lengnick-Hall, Beck and Lengnick-Hall, 2011). ALDI limited has
organised different activities and programmes; those are helpful for employers as they
can get more knowledge about skills and competencies of their employees.
 Information system – A human resource management information system is the form of
HR software. This is known as knowledge administration. Information system is used by
HR professionals in order to managing data and further important aspects of the
company. Essential information is provided to employees for carrying out firm's
activities. So as managers needs to develop effective communication plan that helps
employees as they can aware about further plans and strategies of the company. If
employees are well communicated with their managers as there will be no
misunderstandings among. An adequate communication process supports in extending
business activities globally around the world.
Therefore. HRM practices are also help managers therefore employees can work in
effective and efficient manner. Along with this, it manages all working operations so as firm can
gain high competitive advantage. It is the main responsibility of HR manager to provide training
and development assistance to gain so as to improve employees' productivity and firm achieve its
goals and objectives.
TASK 3
P5 Value of employee relationship
It requires for every business organisation is to develop healthy and good employee
relationships because they are accessible in enhancing productivity as well as growth for the
ALDI limited. Employees relations leads job satisfaction of employees that increases firm
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efficiency in positive manner. Positive and healthy affiliation among managers and employees
can reduces disputes and conflicts which arises over the company. Along with this, strong
employee relationships between subordinates also impact their working abilities and qualities. In
ALDI limited, when managers are included their employees into the decision making process of
the company as it will hugely affect firm's health and its market reputation as well.
Value of employee relationships: -
 Strong relationship among staff members can increases productivity and high
performance level of employees which is assistive in increasing motivation and
inspiration among workers (Purce, 2014). They are also liable in order to develop
effective communication between such people thus they can take effective and innovative
decisions for production process.
 Effective employee coordination reflects on possessing positive identity of workers and
established their presence at workplace. This will helps in increasing allegiance or loyalty
between employees as they are committed wholly towards goals and objectives of the
company.
 This also provides a friendly and openly working environment to employees as they feel
freely while performing any tasks of business activities.
 This can also established cooperation and coordination in staff members which has a vital
role over the company. This will helps in delegation of authorities and motivating team
spirit at work place. If all employees are responsible towards their duties and
responsibilities then it leads to success of the firm which is necessary for ALDI limited.
P6 Laws under employment legislation
Below mentioned various laws and regulations which are came under employment
legislation, such are described as follow: - Anti discrimination act (1991) – The act laid down the principles which are made for
protection of employees within the business organisation. In many companies workers
are facing discrimination or favouritism in relation of various factors such as- religion,
values, beliefs, colour, sex, cast creed etc. Anti discrimination law is applicable only for
those firms who have more than 20 employees. In addition, workers cannot ignore by
their employers; managers do not have any right to terminate their staff members without
giving them a prior notice.
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 Age discrimination act (1967)– The act was established in 1967 that forbids
discrimination at workplace against anyone at least 40 years of age. Age discrimination
act is also enforced to the values or standards for pensions and further benefits are given
by employers. In addition, it requires that old workers are provided concerning
information to the general public (Buller and McEvoy, 2012). The act specifically
prohibits discrimination in hiring, wages, promotion and termination of employment and
lay-offs. Minimum wages act (1948)– It sets that the minimum wages are must paid to skilled or
non-skilled workers. The UK government has decided the level of income for a labour
that will ensure a basic standard of living encompassing good health, education, comfort,
prestige and further contingencies. Employers of ALDI limited are not liable to denied
employees in the relation of providing minimum wages and salaries.
 Leave provisions (1948)– There was an act developed i.e. Federal family and Leave act.
It was enacted for employees; as they have right take paid leaves in some emergency
conditions like, health problems, drastic situations, death of any family member and in
case of new birth of baby child etc.
TASK 4
P7 Various applications of HRM practices
Below mentioned some major HRM practices that are stated as follow: -
Soft HRM It takes long term view of using the workforce
are efficiently as possible to accomplish long
term corporate goals and objectives of the
company. Soft HRM treats employees are the
most essential source of the business as well as
competitive advantage as well (Alfes and et.
al., 2013). It also focuses upon the needs and
wants of staff members- their obligations,
motivation, rewards etc.
Hard HRM It establishes strong link with corporate
business planning as what resources are
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required by the company and how much their
cost are. It means the short term changes in
employees numbers. Hard HRM allows taller
organisational structure.
CURRICULUM VITAE
Name
Gender
Age
Mobile
E-mail
Career objective – To seek challenging assignment and responsibility, with an opportunity for
growth and career advancement as successful achievements.
Educational qualification: -
 Master in Business Administration Bachelor of Commerce.
Interpersonal Skills -
 Team Building skills
 Good Communication skills Having a good command over MS office.
Declaration- I hear by that above mentioned all information are true according to my
knowledge.
Job Profile -
Organisation's Name- ALDI Ltd.
Job Designation – HR manager
Reporting person – SR. HR manager
Salary – 10 to 12 LPA
Experience – 7 to 8 years in relevant field.
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