Human Resource Management Report on Aldi: HRM Practices Analysis

This report examines the human resource management (HRM) practices of Aldi, a multinational supermarket chain. It delves into the purpose and functions of HRM, specifically in resourcing and workforce planning, including recruitment and selection strategies. The report analyzes the strengths and weaknesses of various recruitment approaches, both internal and external, and discusses the benefits of effective HRM practices within an organization, such as performance appraisal, training, and flexible working options. It also explores the effectiveness of these practices in increasing organizational profit and development, emphasizing the importance of employee relations and relevant employment legislation. The report concludes with an application of HRM practices in a work-related context, providing a comprehensive overview of Aldi's HRM strategies and their impact on employee and organizational success.

Human Resource Management

Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1: Purpose and Functions of HRM applicable to resourcing and workforce planning........3
P2: Weaknesses and Strengths of various approaches top recruitment and selection...........4
TASK 2......................................................................................................................................6
P3: Benefits of HRM practices within an organisation..........................................................6
P4: Effectiveness of various HRM Practices in context of increasing organisational profit
and development....................................................................................................................8
TASK 3......................................................................................................................................8
P5: Importance of employee relations in order to influencing HRM decision-making.........8
P6: Key components of employment legislation and its impact on HRM decision-making. 9
TASK 4....................................................................................................................................10
P7: Application of HRM practices in work-related context.................................................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
Human resource management performs several functions such as recruiting, selection,
training, learning and development programs, appraisal of performance, rewards etc. due to
which the experienced employees can easily retained by them for .longer period of time. The
main objective of HR department is to bring out maximum positive result from employees
through giving proper guidance and motivation. The present assignment report is based on
ALDI, a multinational super market chains which deals in providing multiple number of
products such as food products, beverages, household goods etc. It has operated more than
10,000 stores in 20 countries due to which the company has earned approx. €50 billion as
revenue. The project includes the purpose and functions of HRM applicable to resourcing and
workforce planning. Various approaches of recruitment and selections are also discussed
under this report along with the strengths and weaknesses. The project report summarises the
different HRM practices and its effectiveness in context of increasing organisational profit
and development. All other aspects are also discussed under this report with the context of
Aldi (Cooke and Saini, 2010).
TASK 1
P1: Purpose and Functions of HRM applicable to resourcing and workforce planning
HR manager perform important functions with a target to enhance the capabilities of
employees which help them in achieving growth and success in their professional career. For
this, training and learning programs shall be conducted after identifying the needs and
requirements of human resource at workplace through conducting research. As developing
the skills and capabilities of employees will directly brings profitable result to company thus
it is essentially requited to think for their betterment so that maximum contribution can be
received from them in achieving desired goals and objectives. There are many functions
which are required to perform by the Human resource management such as described as
below:
Recruitment and selection: It is the prime responsibility of HR manager to fill the
company with qualified and knowledgeable employees which gives maximum efforts to
company in achieving its desired goals within pre-determined period of time. Aldi is one of
the largest grocery retailer organisations in United Kingdom thus their business operation can
be operated when they have abundant number of human resources which help company in
providing quality products and services to the customers (Fulton and et. al., 2011).

Therefore, HR manager is required to conduct recruitment and selection programs under
which qualified and skilled candidates are invited to apply for the vacant job offered by an
organisation and after passing all recruitment process, the best candidates will be selected
through giving them job offer letter. Through this, the chances of getting qualified and
knowledgeable candidates are more.
Orientation: It is such a program which is conducted to maintain healthy relations
among the employees through giving them an opportunity to communicate with each other.
Under this program, HR manager of Aldi shares mission, vision and objectives of Aldi with
their human resource with an expectation of getting equal support from each employee in
achieving them all within limited period of time. In addition with, all policies and standards
are also communicated so that every employee perform according to the standards and do not
indulge in any unethical activities (Gruman and Saks, 2011).
Creating healthy working conditions: Through adopting various HRM practices, the
HR manager are able to create good atmosphere at workplace which directly brings
motivation among the employees due to which maximum supports will be received by them
in achieving desired target. Upgrading existing technologies used in process of executing
business activities will help in maximising the efficiency level of workers due to which their
interest and working behaviour are also maximises.
Training and development: It is an important step taken by HR manager with an
objective of developing existing skills and knowledge of workers so that then employees are
performed their allotted work in an effective and efficient manner. Aldi is Retailer Company
which required to convince people to buy their products and services therefore, it must
require for their human resource to gain such convincing skills through participation in
training and learning programs on regular basis.
Managing employee relation: Maintaining a good relation with employees always
gives maximum result to company. Therefore, HR Manager of Aldi should required to give
efforts in communicating with their employees and collect feedbacks and views from them
which further consider while making an effective decision and plans. This will bring good
feeling among employees and feels important due to which they gives maximum efforts to
achieving organisational goals with the help of direction provided by HR managers (Iles,
Chuai and Preece, 2010).

P2: Weaknesses and Strengths of various approaches top recruitment and selection
Recruitment and selection are two approaches which is essential to adopt in order to
attain qualified and skilled employees for company. An organisation having an effective and
skilled human resources can easily achieve its desired goals and objectives therefore HR
manager here play an important role in filling up the space of human resource in an
organisation through adopting recruitment and selection process which are further described
as below:
Recruitment: It is an activity of inviting large number of qualified and skilled
candidates for the purpose of providing them job opportunities in an organisation. Invitation
can be made through newspapers, advertisement on Company’s official website etc. which
attracts interest of large number of applicants. Such recruitment process can be done through
internal as well as external approaches which are given as below:
Internal approach: Under this approach, recruitment process is made within an
organisation with an aim of recruitment among existing employees working in an
organisation. As it becomes easy for HR manager to recruit or promote existing employees to
higher position due to having proper knowledge about the skills and abilities acquired by
them. Thus, recruitment is done after analysing the performance and experience gained by
employees within an organisation (Jackson,Schuler and Werner, 2011). Through this
approach, the existing employees are recruited in the form of:
Promotion and transfer: It is related with providing an opportunity to existing
employees to get higher position in company so that valuable employees are able to retain by
company for longer period of time. It can be done through analysing the past performance of
employees on the basis of which promotions should be given.
Employee referrals: Under this, job opportunities to be given to family members or
relatives of existing employees through using their referrals in recruitment form. As it is
unethical way of recruitment but some companies are still followed such.
Merits:
 It saves expenses of organisations due to having no need to publishing advertisement
of recruitment.
 Increases performance level of existing employees through giving them opportunity to
get higher position in company.
 It enables company to retain experienced and knowledgeable employees with
company for longer period of time (Kehoe and Wright, 2013).
Demerits:

 Fails to achieve competitive advantage as no fresh and innovative ideas are having
due to make restriction of entry of new candidates.
 Lack of support from non-promoted employees.
 Chances of arising conflicts will be more among existing employees.
External approach: Under this approach, the invitation of vacant job will be give to
outsiders and ignoring existing employees. Such approach should may adopt with an
objective of bringing something new and innovative within an organisation so as to achieve
competitive advantage among their rivals. As ALDI operated its business in multiple number
of countries where different culture of people exist. Thus, in order to deal with them in more
effective manner it must required for HR manager to recruit candidates from each nations in
which they are operated. Through this, the company can easily attain huge customer base.
Merits:
 Such approach brings more profitable result when the management of Aldi opened
their new stores in different countries.
 Getting lots of options to recruit which increases the chances of recruiting more
skilled and knowledgeable candidates.
 Entrance of new and innovative ideas will help company in achieving competitive
advantage.
Demerits:
 Brings demotivation and dissatisfaction among existing employees due to ignorance
in recruitment process.
 Lack of support from existing employees (London and Hall, 2011).
 Working environment are not good enough which reduces the sustainability of new
candidates in an organisation.
TASK 2
P3: Benefits of HRM practices within an organisation
There are number of HRM practices which are essential to adopt by an organisation in
order to bring positive result to employer as well as employees. It includes training and
development programs, flexible working options, performance appraisal etc. which makes
positive impact on the skills and capabilities of employees. But adopting such, it must
required for HR manager to conduct research within an organisation and identify the needs of
adopting HRM practices according to which further actions to be made. Aldi is retailer
organisation which has attained large number of outlets across worldwide. Thus, it is

important to have an effective skills and knowledgeable employees who knows how to deal
with customers in more effective way and maximises the satisfaction level of customers.
HRM practices are further described as below:
Performance appraisal: It is an activity of analysing the performance of employees
through comparing their actual performance with standard and on the basis of which
appreciation will be given to them in form of giving rewards, promotion, incentives etc. with
a motive of encouraging them to work hard and give more efforts than before in achieving
desired goals and objectives.
Training, learning and development programs: It is necessarily required for every
organisation to conduct training, learning programs for their human resources with an
objective of developing their capabilities of doing allotted task in more effective and efficient
manner. Therefore, involvement of employees in such programs are must due to which they
give more efforts in achieving desired goals and objectives of an organisation.
Flexible working options: It is the process of fixation of working hours according to
the willingness of employees. It can be done with an objective of getting maximum outcomes
from them in achieving desired target within pre-determined period of time. For example
some employees are willing to work on day shift while other may show their interest to work
at night shifts thus on the basis of their interest and working behaviour, HR managers need to
set working hours in order to increases their performance level (Manroop, Singh and
Ezzedeen, 2014).
Benefits to employer:
Increasing profitability: HRM practices adopted with the purpose of developing
skills and capabilities of employees which directly makes positive impact on the overall
performance of an organisation. Getting maximum support from employees will help
employer in achieving huge profits and high sustainability in competitive environment.
Trustworthy employees: Adopting several HRM practices for the betterment of
employees will help employer in retaining experiences and knowledgeable employees with
company for longer period of time.
Quality products and services: Increasing skills and knowledge of workers help in
utilising resources in an optimum manner which in result company able to offer quality
products and services to the customers.
Benefits to employees:

Feel motivated: HRM practices improving the skills and capabilities of employees
which bring motivation and self-confidence among them which in results providing
maximum possible efforts in achieving growth and success in their professional career.
Higher promotional chances: Increasing capabilities, learning and knowledge of
employees increases the chances of getting higher position in company and get recognition
which maximises their satisfaction level and working behaviour (Nabrzyski Schopf and
Weglarz, 2012).
Personality development: HRM practices includes training, learning programs,
coaching classes etc. which enhances their overall personality and make them more capable
to compete with their rivals in an organisation.
P4: Effectiveness of various HRM Practices in context of increasing organisational
profit and development
Profit is the prime objective of every organisation thus every business activities within an
organisation are performed with an objective of achieving huge profits. But it can be
achieved by company if their employees provide maximum efforts and contribution.
Therefore, it is necessarily required for an organisation to adopt HRM practices in order to
develop skills and capabilities of their employees so that they are able to perform delegated
roles and responsibilities in such an effective manner that will help company in achieving
huge profits. There are various HRM practices which include:
 Training, learning and development programs
 Rewards and other benefits of employees.
 Talent management
 Employee relation
All above HRM practices play an important role in enhancing the knowledge and
capabilities of workforce due to which profitable work will be performed by them. Thus, it
requires management of Aldi to understand each HRM practices along with their
effectiveness with the purpose of adopting them in near future. Rewards and other benefits
given to employees on the basis of their performance help manager in improving the
relationship towards their workers. Therefore, adoption of such HRM practices must required
to adopt by organisation especially large scale companies such as Aldi in order to achieve
high sustainability and profits (Tarique and Schuler, 2010).

TASK 3
P5: Importance of employee relations in order to influencing HRM decision-making
Employee relation: It defines the relationship among managers and employees which
play an important role in overall performance of an organisation. If the manager put their
maximum efforts such as adopting various beneficial practices includes rewards,
compensation, bonus salary etc. in order to maintain healthy relation with their workers will
help in getting suggestions and valuable advices due to which an effective decisions should
be made which ensures inn getting profitable result to company in near future. It can be also
improved through collecting feedbacks, problems etc. from the workers which will brings
motivation and self confidence among them which is a positive sign for company.
Importance of employee relations:
 Having a better relation with workers reduces the chances of misunderstanding which
causes conflicts within an organisation.
 It helps in identifying the strengths and weaknesses of workers due to which assigning
roles and duties for manager will become more easier.
 It will help in bringing motivation a self confidence among workers due to which they
may show more willingness to work in a team so as to enhance their overall
performance.
 Creating good and healthy atmosphere at workplace which makes positive impact on
the sustainability of employees in an organisation.
 Attaining good image in market due to which maximum number of qualified
candidates are willing to apply for the job offered in an organisation.
 Overall an organisation can achieve its desired goals and objectives within stipulated
time period (Wright and McMahan, 2011).
Therefore, it is must for HR manager of Aldi to give their more efforts in establishing
better relation with their employees so as to achieve better possible outcome to company in
return. It also helps in retaining experienced and loyal employees with company for longer
period of time due to which the company will able to get continuous services by them in
future.
P6: Key components of employment legislation and its impact on HRM decision-making
Employment legislation: It refers to the laws and legislations which are formulated
by government in order to direct organisation to treat their employees well so as to maximise

their satisfaction level. Thus, Aldi need to be adopt such employment legislation which
consists of various acts which include:
Equality act, 2010: Such act states that the employer has no right to discriminate
employees on the basis of their position in company, age, gender, race etc. It any such
discrimination activity has done them it will harm the working behaviour of workers due to
which their performance level also goes down. For example, HR manager preferred to give
promotional chances to male employees only and ignore female employees.
Working time regulation act, 1998: This is the act which guides employer not to
pressurize their workers to work more than the working hours. As according to the act,
employees have right to work at least 48 hours in a week therefore it is essential to adopt such
act in order to maintain healthy relation the employees.
Health and Safety act, 1974: It is the act which directs the HR manager to implement
safety measures at workplace in order to protect employees from any accidents or hazards
while performing business activities at workplace. Aldi employed large number of employees
thus required to take steps in order to secure the health of their employees (Functions of
HRM. 2017).
Data protection act, 1999: It is an act which helps company to secure their valuable
data and information from their rivals. Such information may relate with customers,
employees, technologies used by company etc. therefore need to protect them through using
various modern systems such as Management information system (MIS).
Minimum wages act, 1998: It is such an act which informs HR manager to pay for
remuneration to their employees in return of the services they get. This act determined the
minimum wage act which is compulsorily required to be paid by company so as to avoid
form any exploitation.
TASK 4
P7: Application of HRM practices in work-related context
Human resource is valuable asset of company on whose support the growth and success
of an organisation depends therefore to develop their skills and knowledge HRM practices is
must required to adopt. Aldi one of the know retailer company which has attained its strong
potion in market through offering multiple number of products and services. Thus, to
maintain their stable position HR manager need to apply HRM practices which are given as
below:

Planning of manpower required: Recruitment programs and selection will help in
attaining high qualified and skilled employees who contributes maximum in achieving
desired goals and objectives. HR manager need to first identify the requirement of human
resource in an organisation and accordingly search qualified candidates to provide job
opportunities in an organisation.
Decision making: Adopting modern tools and systems such as MIS help in keeping
all information at one place which further helps management in making an effective decisions
and plans for the betterment of an organisation.
Development and training of employees: It should require to analyse the performance
of workers through making comparison of present with past. Through this, HR managers are
able to identify the high as well as low skilled workers which requires training programs to be
conducted form them in order to compete with their rivals in an effective manner.
Maintaining the quality of business products: Aldi manufactures multiple number of
grocery products in standard quality at an affordable prices thus to enhance the quality of
their products, it is essential for HR manager to upgrade their existing technologies and use
an effective modern system which help company in achieving desired goals and objective
(Difference Between Training and Development, 2017).
CONCLUSION
It has been concluded from the above project report that there is always need of forming
human resource management who supports human resources in performing their allotted task
in profitable manner through adopting various HRM practices. There are several functions
which are performed by human resource management such as recruitment, section,
conducting training and development programs, appreciation of employee in form of giving
rewards etc. which maximises the interest and working behaviour of human resource within
an organisation. HRM practiced also help company in achieving its main objectives which is
profits therefore need to focus on adopting such practices on regular period of time.
Employee relation should also require to be considered by HR manager in order to get better
possible outcomes.

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