HRM Report: Aldi Company's HR Practices and Strategies

This report provides a detailed analysis of Aldi's Human Resource Management (HRM) practices. It begins with an introduction to HRM, emphasizing its role in workforce empowerment and organizational productivity. The report then delves into the purpose and functions of HRM within Aldi, including recruitment and selection, training and development, and compensation and benefits administration. It explores the strengths and weaknesses of both internal and external recruitment approaches. Task 2 explains the benefits of various HR practices for both employees and the employer, such as skill development, increased job satisfaction, higher sales turnover, and reduced resource wastage. The report further evaluates the effectiveness of these HR practices, focusing on employee satisfaction and how Aldi implements strategies such as recruitment, performance appraisal, training, and compensation. Finally, the report analyzes the significance of employment relations and legislation in influencing HR decision-making within the company.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of HRM........................................................................................1
P2. Strengths and weakness of different recruitment approaches..........................................2
TASK 2 ..........................................................................................................................................4
P3. Explanation on the benefits of HR practices.............................................................................4
P4. Evaluating the effectiveness of various HR practices......................................................6
TASK 3............................................................................................................................................6
P5. Analysing the significance of employment relations in concern to influence HR decision
making of a company.............................................................................................................6
P6. Identifying the key elements of employment legislation and impacts on HR decision of a
company.................................................................................................................................7
TASK 4............................................................................................................................................8
P7. Application of HR practices in the company...................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management is emerged to be inspiring the workforce empowerment
and also create culture within the firm. They are majorly focuses on maximizing organisation's
productivity and optimizing the efficiency of their personnel. The HR manager maintains the
workers by focusing on implementation of policies and process (Chelladurai and Kerwin, 2017).
The present research report is in a context of Aldi, under this there will be study on the functions
and purpose of HR manager. Further, there will also discussion on types of recruitment
techniques adopted by company and their strengths as well as weakness. Thereafter,
understanding an effectiveness of various types of HRM practices that impacts on its
productivity and profit.
TASK 1
P1. Purpose and functions of HRM
Each organisation need to focus on every aspect of an employee that will ensure their
skills are effectively used to for attaining firm's goals and objectives. The functions of HR
professional play a vital role in increasing the satisfaction level of workers and retaining. In
regard to this, HR manager of an Aldi's Company carried out various activities that influence
people in putting more efforts towards a firm. Therefore, it will perform various functions and
have purpose for the workforce planning and resource planning. It can be further mentioned as
below: -
 Recruitment and selection: The entire process is done to hire the effective candidates
by identifying their skills as per the requirements of a Company. The activities will be
performed by HR manager in regards they prepared job description for a vacant position
in a firm (Purce, 2014). For this, it adopts internal or external recruitment techniques as
per the firm's suitability and capability. It helps HR management to select the right
person at right place according to skills required to perform a job role.
 Training and development: - In the present scenario, Aldi's Company faced an issue
for the shortage of labour market. Thus, to challenges this there is an essential to
maintaining their workforce so, it will be able to cope up with fluctuation in the market.
For this, HR manager conduct training and development sessions to establish new skills
and growth for its job. It will directly impact positively on organisation's productivity
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and improves manpower retention. The programs involve policy and legal training, team
building activities, job skills training and training on communication etc.
 Compensation and Benefits Administration: - It is necessary for a Company to
motivate their workers so, that they will stay in organisation for a longer time period
with the firm. Thus, the Compensation is one of the effective factor which improves
worker's retention and entice them to perform their job for the organisation. The HR
professional of Aldi's Company restructured their compensation plans that ensures
fairness and able to meet industry standards (Sheehan, 2014). They set up the pay system
by taking a number of aspects in employee such their education level, work experience,
efforts towards its job and knowledge etc. Their compensation structure involves pay,
health benefits, bonuses, sick leave, retirement benefits, pension schemes etc.
P2. Strengths and weakness of different recruitment approaches
Recruitment is a procedure of attracting, staffing, selecting and appointing the potential
candidates into the job position within the organisation. There are mainly two type of selection
techniques are internal and external sources to put the right people at right job position
(Armstrong, 2014). There are mainly two types of recruitment approaches available that are used
by HR department of Aldi's Company. Therefore, before applying techniques the firm have to
consider its strengths and weaknesses. It has been discussed as follows: -
Internal Recruitment approaches
The internal recruitment sources is that procedure of identifying and attracting the
capable candidates into the workforce from internally within the organisation. It is mainly
required to fill the higher job position for this as the existing workers will be shifted towards the
upper level of management (Cullen and et. al.,2014). Apart from this, there are some strengths
and weaknesses of internal recruitment techniques that has been discussed below: -
Strengths
 Motivating employees: The strength of internal sources for an Aldi's Company is that
they can effectively motivate their existing workers. It facilitates them in delegating
higher responsibilities to the employee within the organisation by promoting them at the
higher job position. It will boost up their energy level as the position given by firm
increase status and pay, facilities and other benefits.
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 Reduce cost and time: - The strength of an internal approach is that it will reduce the
amount of time and energy to search out the potential candidates within the firm (Mostafa
and Gould-Williams, 2014). Company already have a past records for their employees so,
they can effectively fit the appropriate workforce into a vacant job position.
Weaknesses
 Limited choice: - Aldi adopts an internal recruitment approach in which they have
limited choice of potential candidates. In that process, they hire applicants in the firm
among the existing employees to fill the vacant position. Thus, it has a narrow in scope as
there is no fresh and new talent workforce available due to which they have to choose
internally within the organisation (Ertürk, 2014).
 Create conflicts: Internal sources of recruitment approach is that procedure under which
the vacant job position filled by the HR manager within Aldi. For this, they shift only
capable person inside the organisation at higher position through promotion and internal
transfers (Kuvaas, Dysvik and Buch, 2014). In that situation, it will create conflicts
among co-workers who does not get career growth opportunity that leads to create
unhealthy work environment.
External recruitment approaches
It is a process under which the company selects potential candidates outside the
organisation. It is the most effective source that acquire the talented people into workforce who
have a fresh idea, skills and knowledge etc. Aldi adopts various external recruitment methods
that includes advertising in newspaper, magazines, social media websites and placement
agencies etc.
Strengths
 Qualified personnel: - The strength of an external sources for the Aldi Company is that
it helps them to pool out the talented applicants from the wider places. They come in a
larger size for which HR manager have a wider choice to select the best candidates (Tan
2014). They are skilled people who introduce a unique idea with the firm as these people
have a new knowledge, innovative ideas and skills. Save cost of training: External recruitment approaches saves time and expenses of a
Company in relation to conducting training sessions. Thus, this source assist the HR
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manager of Aldi Company to recruit skilled workers so, there is a no need to provide
training.
Weaknesses
 Expensive: - The external recruitment approaches required a huge amount of money and
resources for the vacant job announcement (Knowles, Holton and Swanson, 2014). The
extra cost required to advertise job description into the newspaper, media, Radio etc. to
pool the candidates from wider area.
 It is a lengthy process: - The selection under the external recruitment process consume
more time in staffing the potential candidates for a job position (Reiser, 2014). For this,
they advertise into newspaper, magazines etc. for particular job role that consumer more
time, screening and reviewing applications form, short-listing candidates, conducting test,
invite eligible candidates for interview and final selection.
TASK 2
P3. Explanation on the benefits of HR practices
The nature of HR Practices is used strategically in terms of supporting and influencing
human capital towards the work. It is a method for analysing and measuring the impacts of a
reward system. It is also used to motivate developing the employees and coordinating the work
activities within organisation in effective manner. The human resource department of Aldi
Company adopts various HR practices that includes compensation, training and development,
work-life balancing and recruitment approach etc. There are various benefits of HR practices for
employee and employer. It will be further described as mentioned below: -
Benefits for an employee Develop new skills: The advantages from the training and development HR practices to a
Company is that it will continuously enhance the knowledge of its new or existing
employees towards a job (Mügge,2016). The training programs that are conducted by HR
manager is to develop new skills in the people so, that they can be able to perform their
job efficiently. For this, it will increase their motivational level that leads to attain their
organisation's objectives in desired manner.
 Increase job satisfaction level: Aldi provides the monetary and non-financial incentives
to their employees on the basis of work performance. They provide compensation
benefits in relation to their skills, work experience, abilities and knowledge (Bock, Poole
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and Joseph, 2014). Thereafter, they also provide them an opportunity for the career
growth by promote them at higher position and transfer to another job position. It will
directly resultant into that it increases the employees’ satisfaction level towards their job.
Benefits for an employer Increase sales turnover: The various HR practices applied by Aldi Company gives
benefits to the firm. Thus, these practices establish new skills, knowledge in the
employees through conducting training sessions. The monetary incentives will motivate
the people towards the work and boost up their energy level. Apart from this, the
appropriate selection techniques help them in putting the right candidate at right job
position that will impact on organisation positively (Miller and Bird, 2014). Thus, these
trained and skilled employees are more capable in delivering a high quality of services to
their customers due to which the sales turnover will be increased.
 Reduce wastages of resources: The HR practices applied by company is the most
effective through which it will motivate the employee and increase their satisfaction
level. Apart from this, they also train the people on the new methods, techniques and
approaches so, they can able to use them effectively. For this, they will perform within
the organisation on new technology appropriate without any wastage of resources.
HRM practices used by Aldi-
In order to achieve competitive advantage an organisation should need to implement
various HRM practices. Therefore, some of the strategies used by this company are as follows-
Recruitment: HR department of Aldi is following internal and external methods of
recruitment in order to hire skilled and qualified candidate that will help them in achieving their
organisational goals and objectives in effective manner.
Performance appraisal: In order to motivate the employees to perform better this
enterprise is focussing on appreciating their performance by providing promotion chances which
help them in future growth. It includes continuous evaluation of their working so that
deficiencies and errors could be found and corrective actions will be taken in timely manner.
Training and development: Aldi is conducting training sessions and development
programs to their employees in order to improve their skills and capabilities. It helps in
motivating workers to improve their performance to perform better for attaining desired goals
and objectives.
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Compensation: There are effective policies for providing compensation and rewards in
form of incentives, bonus etc. to their employees. It is based on their performance so that they
can feel better and perform task effectively and efficiently.
Hence, these are several practices of HRM that are performed in this chosen organisation
to make their human resource more effective and capable to compete in global competitive
scenario.
P4. Evaluating the effectiveness of various HR practices
HR practices applied by the Aldi Company by focusing on the employee satisfaction
level. The HR manager implement policies within the organisation that will impact on their
productivity and profits. The Company investing their funds for implementing the training
sessions for the purpose of developing skills in their employees that increases cost to a firm. It
resultant into that these trained individuals become capable in performing their job effectively
due to which it will enhance productivity. Thus, on the same time it will reduce profit in the
present time period as spend money on organising training increase expenses.
The organisation also provides fair and equal compensation plans to satisfy their
employees by protecting them against discrimination (Franceschet and Piscopo, 2014). Aldi
Company provide employment benefits that includes incentive plans, increment in salary based
upon their work performance, retirement benefits and pension schemes etc. Therefore, these HR
practices will increase productivity of a company and fluctuation in their profits.
The firm adopts external recruitment procedure for this they have to investing into the job
advertisement into the newspaper, magazines and television etc. Thus, it will increase cost to the
firm that will directly effects on their profits. Further, from these sources they bringing fresh
talented skilled labour in the workplace that will increase their organisation's productivity. Apart
from this, they also used internal recruitment to fill the higher position for which they hire
existing employee within the firm (Reiser, 2014). It resultant into that it will increase in Aldi
Company's productivity and profits without spend higher cost as compared to external source.
TASK 3
P5. Analysing the significance of employment relations in concern to influence HR decision
making of a company
It is a very necessary for a Company to maintain healthier relationship with their
employees for the purpose of attaining organisation's goals and objectives. The employment
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relations help the firm to become the employees more efficient, motivated and productive so, it
will increase company's sales. For this, the HR manager perform various activities to deal with
the individuals and handle the conflicts among workers (Ertürk, 2014). They also formulate HR
practices for the organisation in their decision-making process that able them to maintain the
employee relations in desired manner. There are various benefits of employee’s relationship in
relation to HR decisions of Aldi. It will be further described that are mentioned below: -
 Productivity: Aldi of HR manager make decisions for motivating the employees by
offering them an incentive plans, pension schemes, retirement benefits and increment in
salary etc. The main purpose of investing into the employee relations program within the
organisation to enhance profit and improves productivity (Cullen and Gue et. al.,2014).
Therefore, the relationship with their employees can be improve if they receive
compensation benefits for their work performance.
 Employee loyalty: -HR manager maintains employee relations by conducting training
session, adopts an effective selection procedure and restructure compensation plans to
satisfy its employees. For this, the firm can able to create relationship with their staff
workers which make pleasant work environment. It also improves productivity that
impacts dramatically on the employee loyalty to the organisation. Thereafter, it will
directly increase an employee retention that leads to encourage the workforce loyalty.
 Conflict reduction: HR manager of company make decisions towards creating a
healthier work environment by employee relations programs (Armstrong, 2014).
Therefore, an effective workplace leads to minimize conflicts among the workers that
create more productivity. The worker put their maximum efforts towards their job that
leads to success of company in the competitive environment.
P6. Identifying the key elements of employment legislation and impacts on HR decision of a
company
It is a very necessary of human resource department of a firm to consider the key aspects
of employment law. It provides a minimum standard through which HR manager formulate the
policies or practices at the time of decision-making. There are various key elements presents in
the employment legislation that will affecting in their HR decisions. In regard to this, Aldi
Company identifying these aspects that will be described as follows: -
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 Equal employment opportunity: It is the most important element that provides an
equal opportunity to their employee in terms of employment. It is under the civil rights
Act 1964 that protects applicants from the discrimination due to employment activities.
It may be at the time of recruiting, training and promoting as well as receiving
employment benefits (Mügge, 2016). In relation to this, HR manager of Aldi Company
make decision that ensure each individual protect against discrimination. For this, the
manager should make HR planning in that accordance so, every people in the firm
received an equal opportunity.
 Equal pay act 1970: - It is an Act of UK in which the company prohibits discrimination
at the time of offering pay salary and working conditions to their employee on the basis
of Sex. The provision of equal pay act under which it provides an equal treatment by
considering all terms and condition of an employment (Miller and Bird, 2014). In the
context to Aldi Company the manager of HR department should design pay structure for
the employees in equal manner. It will be on the basis of their knowledge, skills,
qualification and work experience. It facilitates that each person gets an equal pay for its
work.
 Anti-discrimination:-It is one the most significant element of an employment
legislation that protect the employees in the workplace against discrimination. It
prohibits an illegal employment activities on the basis of race, religion, sex, national
origin, age and physical disability etc. Therefore, these aspects influencing the HR
decision of the Company at the time of selection process of new candidate for a vacant
job position (Franceschet and Piscopo, 2014). For instance, the HR manager of Aldi
Company should consider Anti-discrimination legislation in the recruitment process.
They have to invite the applicants to attend interview and select them on the basis of
their qualification, capability and skills.
TASK 4
P7. Application of HR practices in the company
There are so many practices of HRM that could be applied on functions of Aldi. There is
requirement to hire capable workforce for filling vacant positions of this company. For this
purpose human resource department will invite job seekers by conducting job opening. It is done
by advertisements, posting jobs on portals etc. In order to attract capable person, there is need to
prepare proper job description that consist all the roles and responsibilities related with the job.
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Organisation: Aldi
Division: Retailer
Job Title: Human Resource Executive
Job Location: London, UK
Job Summary
Company is seeking for a candidates with specialisation in human resource field and give their
best in dealing with employees of this enterprise.
Role
 Assist in recruitment ans selection process.
 Maintain proper record of staff members.
 Conduct training and development sessions.
 Performance appraisal and prepare checklist on that behalf.
Experience required
1-3 years.
Qualification
Masters in business administration
After this company will receive several applications in the form of resume and
curriculum vitae. Template for this is given below-
Curriculum Vitae
Name: John Smith
Address :21st street London
Phone No. -
Career objectives- To explore in the field of human resource management.
Specialisation:
 Effective communication skills
 Interpersonal skills
 Able to work in pressure Experienced in HR field
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Educational qualification: -
Masters in Business administration.
Declaration:
I hereby declare that all the information provided is true and is best of my knowledge.
Date:
Place:
After receiving these application, most appropriate candidates are selected on the basis of
various criteria. Now, HR department is responsible for further activities such as performance
appraisal, training and development, remuneration, motivation etc.
Aldi maintain their staff workers effectively by implementing HR practices within the
organisation. The HR manager of a Company conduct training session on monthly basis by
analysing the training needs of each employees. For this, they used training analysis through
which it identifying the required skills of each individuals in relation to their job role. With
regard to this, they develop skills, knowledge and potentiality of workers through on-job
training. They apply e-learning method that helps employees to understand the concepts of work
whenever they want through on-line access (Ertürk, 2014). It is that type of training in which the
worker develop knowledge by actual doing work. Apart from this, they also give an opportunity
to enhance career growth by applying of-job training. It facilitates the worker to learn new skills
rather than its routine job by transfer the employees outside the firm for a particular time
duration.
The Company also gives facility to their staff worker to maintain their work-life
balancing and stress management. For this, the organisation applied flexible working practices
so, that employee can balance their personal and professional life (Tan, 2014). They offer
flexible working to their staff workers that involves part-time job facility, freelance jobs and
work from home etc. It will not only manage their work but it also increases their satisfaction
level due which they put more contribution towards firm.
Illustration of HRM practices:
Suppose an organisation opened their vacancy for assistant manager post then they need
to follow various HRM practices to recruit skilled and select qualified candidate after passing all
recruitment process Then they need to provide training and development programs which helps
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them in providing knowledge about using technology on which new candidate need to perform
so that he can contribute more to the performance of an organisation.
Therefore HRM practices concentrate on overall development of new as well as existing
employees in order to achieve desired targets.
CONCLUSION
Summarized the above report it has been concluded that Aldi Company successfully
satisfy their employee by implementing HR practices fairly. They considered all the key
elements of an employment laws at the time of carrying out employment activities and protect
them against discrimination. It has been analysed that they used external recruitment approaches
that bring new talent in the firm due to which it develops unique products or service for their
customers. Beside this, to fill the higher job position they only prefer to hire their existing
employees by adopting internal recruitment process. Thereafter, it has been also analysed from
the report is that to increase the employee's productivity it is more necessary for the HR manager
to improve employee relations. Further, organisation also provide an effective training to their
employees that helps them to face the challenges of shortage labour market in future time period.
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Online
Internal recruitment,2017. Available through:<http://yourbusiness.azcentral.com/effective-hr-
approach-internal-recruitment-11629.html> [Accessed on 16 June 2017)
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