Human Resource Management Report: Aldi Case Study - HRM Strategies

This report provides a detailed analysis of Human Resource Management (HRM) practices within Aldi, a supermarket chain. It begins with an introduction to HRM, its purpose, and functions, specifically focusing on workforce planning, staffing, and employee retention within the context of Aldi's core values of simplicity, consistency, and responsibility. The report then delves into the strengths and weaknesses of different recruitment and selection approaches, including internal, external, and third-party sourcing methods. The analysis further explores the benefits and effectiveness of various HRM practices, such as training and development, performance management, and reward systems, highlighting their impact on both employers and employees. The importance of employee relations is discussed, emphasizing the link between strong employee relations, high productivity, and employee satisfaction. Key elements of employment legislation and their influence on HRM decision-making are also examined. Finally, the report applies HRM practices in a work-related context, offering a comprehensive overview of HRM strategies employed by Aldi to achieve its business objectives. The report draws on various academic sources to support its arguments and conclusions.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Purpose and functions of HRM..............................................................................................4
P2 Strengths and weaknesses of different approaches to recruitment and selection..................5
M1...............................................................................................................................................6
M2...............................................................................................................................................6
D1................................................................................................................................................6
TASK 2............................................................................................................................................7
P3 Benefits of different HRM practices......................................................................................7
P4 Effectiveness of
different HRM
practices......................................................................................................................................7
M3...............................................................................................................................................8
D2................................................................................................................................................8
TASK 3............................................................................................................................................9
P5 Importance of
employee relations.....................................................................................................................9
P6 Key
elements of
employment
legislation and the
impact it has upon
HRM decision-making...............................................................................................................9
M4.............................................................................................................................................10
D3..............................................................................................................................................11
TASK 4..........................................................................................................................................11
P7 Application of HRM
practices in a work-
related context..........................................................................................................................11

M5.............................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is a term which assist in describing formal systems for the
management of people within an organisation. HR manager has a major responsibility in
business entity in three areas like staffing, designing the work of employees along with this they
have to provide the employee compensation for there benefits. Human resource of business
entity perform different functions so that employees retain for a long time (Bakker, 2011). Along
with this it helps in improving business operations by which they can attain success. The present
report is based on Aldi which is a supermarket chain. The three core values of Aldi are
simplicity, consistency and responsibility. Lean production ties in closely with these values. In
below mentioned report, discussion based on purpose and functions of Human resource
management. Moreover, strength and weakness of different approaches to recruitment and
selection. Along with this importance of employee relations in respect to influence decision of
Human resource management (HRM) has to be discussed.
TASK 1
P1 Purpose and functions of HRM
Human resource management is necessary in all organisation. The manager of human
resource helps in delivering the appropriate business plan to employees. Workforce planning is a
process which is used to align needs and priorities of organisation so that workforce is to ensure
that it can meets its legislative, service as well as production requirements and objectives of
organisation. In Aldi, functions of HRM in workforce planning are:
Staffing and selection – It is a duty as well as responsibility of manager that they have to select
right person at right place. The manager can talk to any person in cited organisation whether they
are facing any problem regarding work or not (Armstrong and Taylor, 2014).
Meeting customer’s needs – The manager of Aldi have to do market research so that they can
identify needs of consumer and have to fulfil them. Shareholders of Aldi expects that return on
investments should be higher so that they can gain maximum profits.
Retention of people – Aldi have to provide safe environment to workers so that they provide
best results and also retain for a long period.

Work force planning – It is a process which is used in organisation to meet the labour needs of
company. This method assist in managing training and development programme so that
employees of Aldi can not face any obstacle (Berman and et. al., 2012).
Purpose of human resource management in context of workforce planning as it is a core
and important function which helps in identifying needs of company. Another purpose is that
they have to do proper planning so that they can attain success. In Aldi, HR manager play a
essential role in satisfying needs of employees and fulfil those needs on time. They have to do
proper work so that they can achieve targets on specified time.
P2 Strengths and weaknesses of different approaches to recruitment and selection
There are different approaches which is used by Aldi to do recruitment and selection of
the employees. Recruitment is a process of attracting, selecting and appointing suitable
candidates for job. Selection is choosing right person having good qualification to fill current
opening. Different approaches are internal, external and third party sourcing (Bloom and Van
Reenen, 2011).
Internal Approach – This approach is used when employees are selected within the business
entity or from the friends and relatives. This approach provide a chance to employees to change
job position in enterprise.
Strength:
 It save time of HR to recruit employees. Moreover, it is cost effective process.
 It is not necessary to provide advertisement in newspapers by HR manager of Aldi.
Further, it reduces the expense budget of company.
Weaknesses:
 By using this approach, those candidates who are outside the organisation does not get
opportunity to do better job (Bratton and Gold, 2012). Sometime, company having financial problem so when they are recruiting new
employees they does not provide proper training.
External Approach – There are many different sources so that they can recruit the candidates
from outside the organisation. The manager of Aldi have to conduct proper training to the
employees so that they can provide best services.
Strength:
 This approach help manager in selecting those candidates who are capable in doing job.

 By selecting new and best employees they can get new and innovative ideas and by that
they can provide benefits to other employees.
Weaknesses:
 This process takes lot of time as it is a very lengthy process. It become difficult to select candidates as it needs lot of searching (CHUANG and Liao,
2010).
Third-party sourcing – By using this approach, manager of Aldi select potential candidates from
different places.
Strength:
 Candidates are receptive about job vacancy in Aldi.
 It help firm in selecting potential candidates from different places.
Weaknesses:
 This process is costly and time consuming also.
M1
The manager of Aldi have to use proper functions which helps in attaining targets. They
have to do proper recruitment and selection of employees which helps in providing the better
services as well as products to consumers (Cox, Arnold and Tomás, 2010). The manager have to
provide training as well as guidance to employees so that they can not face any issue and
complete the task in a appropriate time. They have to motivate workers by providing incentives
and schemes on the basis of their performance which assist in retaining employees for a long
term. Along with this it also helps in meeting the needs of consumers.
M2
Aldi managers can use internal, external and third-party sourcing approach so that they
can recruit best employees. If manager is using internal approach then it save time while
recruiting the employees but the employees who are outside the organisation does not get any
opportunity. If he/she is using external approach then it help them to recruit capable employee
who fits for this job but it takes lot of time (Danish and Usman, 2010). If Third-party sourcing
approach is using then manager of Aldi select best candidates from different places. But this
process is expensive.

D1
According to Zavyalova, Kosheleva and Ardichvili, (2011), manager of Aldi have to use
appropriate approach which helps in choosing right person at the right place. For providing best
services, proper recruitment and selection is necessary. When they are selecting best person then
they generate new and innovative ideas so that they can attain targets.
TASK 2
P3 Benefits of different HRM practices
Benefits to employers: The human resource department of Aldi have to recruit best
employees. Those employees having good knowledge about the work and have to maintain
relationship between employers and employees in business entity. They have to do proper career
management, performance appraisal as well as reward system etc. when they are recruiting new
employees then by that human resource department can get the new and innovative ideas which
helps in satisfying needs and wants of consumers. They have to manage risk as well as
opportunities so that they can achieve business objectives at low cost. Risk should be properly
managed as it is a part of good management (Farndale, Scullion and Sparrow, 2010). Aldi have
to focus on some strategies which can applied to implement appropriate actions to improve
quality of services. On the other side, at the end of year management have to monitor and
compare current with last performance which helps in achieving best results. Moreover, it also
enhance the business performance as well as improve risk taking approaches.
Benefits to employees: The top management of Aldi have to conduct training
programme for new employees so that they can get information about rules and policies, code of
conduct etc. Along with this it helps in earning maximum profits. The manager have to gather
actual information or data and provide to workers so that they can produce qualitative products
by using skills and knowledge so that they can attain objectives on specified time. There are
some benefits of HRM practices for employees includes that they have to support employees and
provide proper motivation to them. If employees facing issues then they have to resolve them so
that they do work happily. The HR person conduct some activities in Aldi related to work which
succour in increasing knowledge along with efficiency of work and give best possible results to
company to hit the targets on time. But, when employees are not happy with working conditions

then this can lead to labour turnover and high levels of absenteeism can also be there (Gruman
and Saks, 2011).
P4 Effectiveness of
different HRM
practices
The human resource management of Aldi have to do proper management activities to
beat competitors in the market. The business entity have to follow appropriate structure so that
workers can face any problem in future. Different HRM practices which can be used by Aldi is
recruitment and selection, training as well as development programme, performance
management etc. Manager have to conduct training programme for the betterment of workers as
it helps in attaining targets on a specified time and by that they will give best results. The
workers of Aldi have to maintain relations with high level of authority by which they can face
any problem and if facing then it can be handle by top management. The practice of human
resource management helps in improving productivity and proficiency. Aldi have to use
appropriate pricing strategy which helps in increasing profits and become successful in attracting
large number of consumers (Harzing and Pinnington, 2010).
The main responsibility of employees is that they can have to provide best services and
achieve the targets. In cited organisation, among all departments they have to do work with a
proper co-ordination so that they can provide qualitative services to consumers. Manager of Aldi
have to do proper market research and identify the needs and wants of consumer and have to
fulfil that so that they can improve productivity and proficiency. The firm have to maintain
supply as well as demand of merchandise and services so that they can earn high profits.
Manager have to do proper management activities so that they can encourage the employees to
do best work and give reward on the basis of performance which will assist in increasing
efficiency of work. Moreover, relationship of employees and employer become strong which will
helps in accomplishing goals in a specified time. When the employees attend training sessions
then they can do any type of work and attain maximum profit (Hendry, 2012).

M3
Human resource department of Aldi can use recruitment and selection method and in this
they can use preliminary screening, telephone interview etc. so that they can recruit best
employees which helps in generating new ideas and attain maximum profits.
D2
According to Storey, (2014), manager of Aldi have to conduct training programmes so
that employees can not face any problem and provide qualitative products to consumers.
According to the performance of employees they can give rewards as well as incentives to the
employees so that they retain in company for a long time.
TASK 3
P5 Importance of
employee relations
Employee relations play a important and essential role in order to achieve to achieve the
goals. In Aldi, strong employee relation are required for high productivity as well as for human
satisfaction. Strong employee relation in organisation is depend on healthy along with the safe
environment. It is a responsibility of human resource manager that they have to provide positive
environment to employees so that they can provide best merchandise and services to consumers.
For making strong employee relation organisation is providing different opportunities to
employees which helps in increasing efficiency and achieve targets on a specified time (Hobfoll,
2011).
The HR have to provide positive environment to employees so that they work in a
efficient manner. There have to do proper and continuous interaction of workers with
management activities so that staff members are aware about if there is any changing policy,
procedure, decisions etc. There are following some importance of employee relation in the
organisation:
 Healthy employee relation reduce problem of absenteeism in Aldi. If HR manager make
better decision for employees then workers do good work and attain best outcomes.
 The employees feels happy at work place when organisation is working together as a
family. If Aldi is not providing best environment then employees will not retain over a
long period of time.

 HR manager have to provide proper motivation to employees so that they can feel
comfortable and provide best services to consumers.
 They have to maintain relation which helps in increasing productivity and attain good
results (Hülsheger and Schewe, 2011).
P6 Key
elements of
employment
legislation and the
impact it has upon
HRM decision-making
Employment legislation is essential in every organisation because assurance about job
security and protection to employees against malpractices in work place. There are many
employment laws which have to followed by every organisation. These laws are Fair Labour
Standard Act, Occupational Safety and Health Act etc. In Aldi company when HR takes any
decision for employees then they have to considered needs and wants of employees. To feel the
employees happy the organisation can also some government rules because they also provide
benefits to the employees. In Aldi, HR manager have to use appropriate rules so that they can
make correct decisions. There are some laws which are describe as below:
Equality Pay Act 2010 – There are some characteristics of this Act which help human
resource manager in making correct decisions (Iles, Chuai and Preece, 2010).
 Age – In some organisation there are many grounds which directly and indirectly
discriminate any people in the company.
 Religion or belief – In this Act religion includes many religion of person. Religion must
have clear structure as well as belief system. Employees are protected if they do not
follow some religion. In organisation discrimination is also done because of some
religion or beliefs.
 Disability – In this employees of Aldi can show that they are disabled and protected from
the disability discrimination. This act helps in making the judgements so that they can do
proper improvements.

In Aldi, HR manager have to considered responsibilities when they are taking any type of
decision (What Are Human Resources?, 2017). If it is done in a best way then employees can
feel safe and surety about their work will be there. Some policies and procedure have to follow
employment legislation Act. They are:
 Recruitment and selection process should be done in a appropriate and best way.
 They have to use equal opportunities policy which includes proper rules regarding
absenteeism people.
 The responsibility of HR is that they have to provide flexible working environment to
employees.
 Training and development should be provided on time period so that workers can done
their work in a proper way.
M4
The employees of Aldi have to maintain the relation among employees and employer so
that they can do work with proper coordination (Purce, 2014). They have to use appropriate act
and policies so that they can attain maximum opportunities. They can use Fair Labour Standard
Act, Occupational Safety and Health Act etc. which helps in obtaining goals and objectives as
well as attain leading position in the competitive market.
D3
According to Kern, (2014), the staff members have to maintain employee relations as it
helps in retention of workers for a long time. They have to provide safe environment to do
qualitative work and by that Aldi can attain targets.
TASK 4
P7 Application of HRM
practices in a work-
related context
Practices of human resource management is useful in the organisation is to select the
suitable employees for Aldi. By using the different practices they can get suitable employees and
by that they can get innovative ideas by new employees which will helps in attaining objectives
on a specific time. The manager have to assign proper roles so that conflict can not be arise. In

every department of Aldi there is one person that is manager who help employees in attaining
targets. For example, if manager wants to select any candidate for job vacancy then first they
have to check qualifications that the person is applicable or not for job vacancy. If qualification
is perfect then curriculum vitae will forward to top management and decide that whether this
candidate is suitable for our organisation or not (Basic Functions of Human Resource
Management, 2017). On the other side, Aldi have to use proper strategies to resolve issues which
employees are facing so that company can improve management policy to lead in market. They
have to use appropriate information and upgraded technology which will succour manager to
check daily work and on the basis of that they have to make correct decision. They have to do
proper planning which helps in obtaining targets in a particular time. Aldi have to collect
information in two ways i.e. primary and secondary source of information which help
organisation in identifying requirements of consumers. While using the primary information
these information are realistic and true through this will help in identifying basic needs of
customers. On the other side, while using secondary information, manager of Aldi can not get
appropriate information or data about the wants of consumers and those information they are
getting that is not reliable. For employees of Aldi have to follow some Acts like Equality Pay
Act, 2010 because through this workers are satisfied about their job and the organisation does not
discriminate any people (Kehoe and Wright, 2013).
M5
The human resource manager of Aldi have to use proper source to gather the information
or data which succour in providing best services to consumers. They have to recruit best
employees which having knowledge related to work.
CONCLUSION
From above report it has been inferred that human resource management of Aldi have to
use appropriate and best technique which assist in providing best and qualitative products to
consumers. They have to sell product at a low cost so that they can attract large number of
consumers. The manager of Aldi have to provide proper training along with guidance so that
they can not face any problem in producing the product according to requirements of consumers.
It helps in improving productivity and proficiency. The employees as well as employers have to