Human Resource Management Report: Aldi's HRM Strategies and Impact

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on their purpose, functions, and benefits within the context of Aldi, a major global retailer. The report delves into various aspects of HRM, including recruitment and selection processes, highlighting their strengths and weaknesses. It examines the benefits of different HRM practices for both employers and employees, such as conflict resolution, training and development, and employee relations, and assesses their effectiveness in enhancing productivity and profitability. Furthermore, the report explores the importance of employee relations and the impact of employee legislation on HRM decision-making. Through a detailed examination of these elements, the report offers valuable insights into how Aldi's HRM strategies influence business outcomes and contribute to its overall success. The report also covers topics such as talent management and performance management.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of HRM........................................................................................1
P2. Strengths and weaknesses of recruitment and selection process......................................2
TASK 2............................................................................................................................................4
P3. Benefits of different HRM practices for employers and employees................................4
P4. Effectiveness of different HRM practices in terms of increasing profits and productivity
................................................................................................................................................5
TASK 3............................................................................................................................................6
P5. Importance of employee relations to influence HRM decision making...........................6
P6. Elements of Employee Legislation and the impact it has upon HRM decision making..7
TASK 4............................................................................................................................................9
P7. Application of HRM practices in a work-related context................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource management (HRM) is helpful in managing the most important
resources of firm, that is, the manpower. Manager can evaluate employee performance on the
basis of target objectives. The main objective of human resources includes managing people
within firms, development of plans and policies as well as rewarding employees according to
their work performance. In the present report, Aldi has been selected which is the largest retailer
in grocery stores and has its operations all around the globe (Armstrong and Taylor, 2014). With
reference to this organisation, various concepts related HRM will be discussed here. There will
be study about benefits of HRM practices. has been explained. Along with this, different
approaches of recruitment i.e. internal and external is discussed. Strengths and weaknesses of
recruitment and selection approaches along with the importance of employee’s relationship at
workplace will also be highlighted.
TASK 1
P1. Purpose and functions of HRM
In organisation HR is responsible to manage all resources in appropriate manner which
are used by Aldi. In this, workforce planning are playing major function because it helps them to
manage workload of employees.
Purpose of HRM is defined as:
The major purpose of HRM is related with recruitment, selection, training and
development of employees which is significant to manage them. . Recruitment is the process of
searching for potential employees and stimulating them to apply for the vacant position in firm.
Selection involves selecting the most suitable candidate for company who is best suited
according to his/her skills and qualification and company’s requirements. Training and
development is vital for Aldi as they are helpful in making employees familiar with the work
environment and it results in promotion of employees. This is beneficial as need for external
recruitment of employees reduces with the same and thus, it also motivate the employees in
achieving organisation objectives. It is a cost effective technique as it is helpful in managing the
people in an effective manner (Beloglazov, Abawajy and Buyya, 2012).
Collaboration is also a vital purpose as it is helpful in making managers and HR
professionals to coordinate and work together to achieve the desired goals of organisation. They
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assist employees about their roles and responsibilities which they have to perform effectively so
as to achieve growth in business.
Employee commitment can be achieved effectively by planning of various strategies. It
is also helpful in assigning work to employees according to their qualifications. Employees
should be well committed to specific jobs and feel challenged towards achieving their task.
There are different functions of HRM at Aldi which are discussed as below:
Safety: This is an important function for every business organisation. Operational Safety
and Health Act was passed in 1970. It enables employers to provide safe working environment to
their employees. It supports safety at workplaces, safe training process and mandated logs for
injury at work place. Risk specialist and safety are closely linked with HR benefits to manage the
worker’s compensation issues.
Employee Relationship: This function is helpful in strengthening positive relations
between managers and employees at workplace. It can be achieved by job satisfaction, resolving
fights at workplace and involvement of workers in different activities. Strong labour relations
can be achieved by collective bargaining, negotiations, response to union’s campaign and
understanding of contract issues of labour unions.
Compensation and Benefits: This is a vital function as it helps managers to set
compensation packages for employees and evaluation of competing pay practices for the firms.
These specialists negotiate all the health coverage rate with insurers and make relations with
retirement savings and fund executive. Payrolls can also be a part of compensation packages
designed for the employees of Aldi ( Bloom and Van Reenen, 2011).
P2. Strengths and weaknesses of recruitment and selection process
Recruitment and selection are vital functions of human resource management.
Recruitment involves encouraging prospective candidates to apply for vacant post in Aldi.
Internal recruitment process involves hiring candidates within the organisation who are capable
for the vacant positions. Message is circulated about current vacancy and potential employees
can apply for it. This recruitment process gives chance to employees to change their job
positions. These strategies are helpful in quick decision making process and reduces
expenditures which will incurred on recruitment of new employees (Boxall and Purcell, 2011). It
is a beneficial method for firms as it helps in boosting the morale of employees and they will feel
motivated by which their working efficiency will be increased. To manage recruitment process,
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then it is essential cooperate with HR departments. This process should ensure succession
planning and effective performance management system. Strict rules and principles should be
followed in the implementation of this process. The weaknesses of this approach are that
manager are not able to recruit highly qualified candidates who are available outside
organisation. Along with this, it also sometimes waste the time and expensive for entity to recruit
candidates.
External recruitment process includes hiring new employees for the work process. It
helps company to bring fresh blood for company with new skills and talents. Employees should
be hired according to the specific requirements of firms. Here are various sources of external
recruitment process which includes advertisement through various media, campus placement,
agencies and different employee exchange programmes.
Strengths and weaknesses of recruitment and selection process are:
Strengths
 It helps in quick decision making process as employees are promoted by the management
who are working at same level within Aldi. It give advantage to manager in promoting
their employees while providing them also a rewards so that they can work efficiently.
Employees are shifted from one department to another as part and parcel of job rotation
programmes. It is helpful in development of skills and knowledge of employees (Daley,
2012).
 It is a cost effective method as it saves time and money which would have incurred on
hiring and training new employees for the firm. It motivates employees as they are
promoted at higher position in their firm.
 External recruitment provides exploring opportunities as new employees are hired who
have innovate ideas and talents. This is helpful in increasing the work efficiency to
achieve organisational goals effectually.
Weaknesses
 External recruitment is a long process as it takes times in the selection of potential
employees. Large number of candidates apply for the vacant post and so, management
has to be conscious in selecting right employees who have potential to achieve
organisational goals.
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 It requires more cost as advertisement has to be given in different media about vacant
post. It takes a long way in searching and screening of employees and thus, it brings more
cost expenses to the firms (Guest, 2011).
 Selection process takes a long time as candidates may not communicate true information
about them. Thus, various stages of selection process should be designed in order to
select right candidates for the job.
 External recruitment creates dissatisfaction for existing employees as they feel that
management has not given them opportunity to get promoted.
TASK 2
P3. Benefits of different HRM practices for employers and employees
There are certain benefits of human resource management for the employers and
employees which are helpful in increasing productivity. They are:
Benefits for Employees:
Conflict Resolution: Human resource executives are helpful in resolving disputes which
arise at the workplace. Conflicts can arise between employees or between employer and
employees. They define plans and policies of firms and expected behaviour of employees at the
workplace. Various matters are solved like poor attitudes of workers, insubordination, harsh
language or talking with disrespect which leads to conflicts at workplace.
Training and Development: This is an essential function which is being carried out by
the human resource manager. These programmes are helpful in making employees familiar with
work environment and the way different activities will be carried out to achieve desired outputs.
These techniques are helpful in making improvement in skills which are required for selling and
customer services. These activities are helpful in providing additional experience to employees
by the enhancement of their skills and knowledge (Hendry, 2012).
Employee Relations: Managers provide support to those employees who think that their
rights are being violated at the workplace. Workers who feel discriminated or harassed at the
workplace can contact managers of human resource department to resolve the situation. Various
laws are enforced at the workplace to protect employees like ant--discrimination act and it is
mandatory to follow these laws and assist employees in legal matters.
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Information Resource: It is responsibility of human resource manager to provide
information to employees regarding plans and procedures which have to be followed at
workplace. Information is conveyed about employee’s benefits, worker’s assistance programmes
as well as schemes for compensation and benefits. If personal guidance is required by employees
then managers provide confidential assistance to them (Kehoe and Wright, 2013).
Benefits for Employers:
Promoting Positive Behaviour: It is essential to create positive and favourable attitudes
at the workplace. This is beneficial for employers as workers happily perform their roles and
responsibilities with effective implementation of HRM practices. It ultimately helps in retaining
the employees for long term at workplace. Employees can easily share their problems with
managers as they are working in a friendly environment. This also results in increasing the
productivity and achieving business goals by employees of Aldi.
Building flexible work place: Flexible working environment is helpful in the retention
of employees as work schedules are planned according to them, teams are designed according to
their choices along with flexible working hours and effective communication plans (Lengnick-
Hall, Beck and Lengnick-Hall, 2011). Flexible working environment is thus helpful in increasing
better productivity which increases the growth of Aldi.
Motivating Workers: Managers should be effective in maximising the productivity of
their employees. Employers promote those authorities who manage their working effectively.
HRM plans and practices are helpful in achieving organisation objectives with in time period. If
workers are managed effectively, it will result in higher retention for longer time at the
workplace.
Developing Employees: HRM practices are useful in motivating and satisfying
employees to develop company’s assets. Competitive advantages can be achieved by the skills
and attributes of employees which they are using in performing business activities. Resources are
managed for providing employee’s education programmes and opportunities to explore their
knowledge (Kerzner, 2013).
P4. Effectiveness of different HRM practices in terms of increasing profits and productivity
HRM practices are highly helpful in enhancing the productivity for organisations.
Policies and plans are designed which helps to business entity to maintain their good position in
market. to achieve effective positions. Strategic objectives are linked with human resource
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functions in order to improve employee’s performance (Loorbach and Rotmans, 2010). Factors
which are helpful in effectively increasing the productivity and profits are described as below:
Talent Management: Success of firms are depends upon that how they are recruiting
employees and whether training and development programme is conducted as per their needs or
not. These employees are provided with various development and assistance programmes in
order to achieve success. Various activities are designed in which employees take part and this is
helpful for the managers in knowing skills and knowledge level of workers. In order to recruit
high talent employees, managers have designed some schemes such as compensation, incentives
and many more which will help them to provide healthy environment and retain employees for a
long period of time.
Performance Management: These programmes are helpful in evaluating the performance
of employees according to their work execution (Meredith Belbin, 2011). These tasks are helpful
for managers to know about the performance of employees whether they are performing as per
organisation requirement or not. Managers can provide appropriate guidance to employees who
are not able to achieve results according to desired performance. It is also helpful in rewarding
those employees who are doing their work with full dedication in order to achieve the business
objectives. Evaluating overall performance of employees is thus helpful in evaluating the
valuable human assets at workplace.
Information System: This system is linked with knowledge management. It is helpful in
providing information to employees which is helpful in carrying out business activities
effectually. If employees are well communicated about the plans and procedures then they will
work according to them and it will help in the development of business goals. Good information
plans are helpful in gaining value propositions of delivering effective systems which are
integrated globally and are relatively innovated (Ployhart and Moliterno, 2011).
TASK 3
P5. Importance of employee relations to influence HRM decision making
Employee’s relations play an important role in increasing the productivity at workplace.
Importance of employee relations in decision making process is as follows:
 Strong relations are helpful in increasing the productivity as it also helps in creating
positive environment at workplace.
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 It is helpful in increasing the motivation of employees by boosting their morale. Healthy
employee relations are thus helpful in increasing productivity and achieving growth for
Aldi.
 It increases the loyalty of employees as they are working in a pleasant and comfortable
work environment. This leads to retention of workers and thus, cost is reduced in hiring,
training and development of employees.
 Low rate of employee’s turnover is helpful in retaining trained and skilled staff or
workers at workplace.
 Motivation of employees is achieved by effective and friendly working environment. It is
helpful in reducing conflicts and employees can focus on their work and to do their task
in effective manner.
 It is helpful for organisation to make sturdy relationship between employers and
employees (Tarique and Schuler, 2010). Healthy relationship encourages employees to
do work with full dedication and they cooperate with each other in performing task of
other departments also in appropriate manner.
 Conflicts are reduced as employees are working in a healthy environment. This leads to
high productivity by achieving desired business goals and objectives.
 Strong employee relations are helpful in taking quick decisions about problems which are
arrive at the workplace. This is helpful in saving time and manager does not have to delay
judgement as prompt decisions are taken about how problems will be solved in an
effective way.
 It encourages team spirit. If employees work in team then new ideas generate about the
working and task will be achieved effectively on time. Teamwork is helpful in the
management of different activities. Employees will be dedicated towards their roles and
responsibilities and they will accomplish the tasks in designed timeframe.
 Healthy employee relations are also helpful in making good communication plans. If
message will be properly communicated to employees, they will do their work
accordingly and thus, achievement of organisational goals and objectives becomes easy.
It can be stated that healthy employee relations are helpful in effective decision making
and it leads to the achievement of goals and objectives which are designed by Aldi. Friendly
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work environment is also essential in retaining employees and increasing growth and
productivity for the firm (Recruitment & Selection Hiring Process, 2015).
P6. Elements of employee legislation and the impact it has upon HRM decision making
There are various elements of employee legislations which are to be followed by Aldi as
discussed below:
Anti-discrimination act: This act was enacted by the legislation in relation to protection
of employees who face discrimination regarding sex, race, religion, caste, creed, colour, etc. This
act is applied in those organisations who have hired more than 15 employees at the workplace.
Employer's have do not discriminate any employees on the basis of religion, caste, colour,
nationality and so on. It is also there responsibility that they do not terminate any employee on
the basis of discrimination. This act is useful for protecting employees who are facing diversity
issue at the workplace.
Age discrimination act: In employment, age discrimination act implies that firm cannot
extend prohibition of diversity in hiring and firing of employees who have attained the age of 40
years or above. In this act, organisation does not hire those employees who are below the age of
18 and do not discriminate them at workplace.
Minimum wages act: This act was enacted by legislation in relation to provide minimum
wages to workers who are employed by the firms. This act was helpful for the workers as they
were provided with minimum wages which are fixed by the government and employer cannot
deny them for giving these wages. This act is mandatory to be followed by all organisations who
have employed more than 20 employees.
Leave provisions: Federal Family and Leave Act was enacted for employees to take paid
leaves in a year in relation to typical situation which are related with health care, new born child,
emergency situations in family, etc. Provisions are made for protecting employees at the
workplace and measures should be taken to ensure safety and security of employees while they
are working on dangerous machines (Meredith Belbin, 2011).
Equality act: All employees at the workplace should be treated equally. There should be
no discrimination between men and women. They should be paid according to their work. If any
firm void this act then they have to face legal formalities. Employees can file case against them
and they can be suited by court of law for the same.
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If an organisation does not lead to follow any of the employee legislation act then they
have to suffer heavy loss for their image which is not appropriate at all. This factor is harmful for
company’s image because employer can sue against organisation. However, it will also impact
on relationship between employers and employees. This kinds of activities will not be
acceptable by employer at workplace.
P7. Application of HRM practices in a work-related context
Human resource management practices can be evaluated with the help of Soft and Hard
HRM. Soft model of human resources are related with motivating employees to achieve desired
outputs for firms. It emphasis on making positive relationship with employees. Whereas Hard
model of HRM are only concerned about outputs which are produced by employees to increase
firms efficiency (Ployhart and Moliterno, 2011). In cited firm, HR person can motivate
employees by conducting activities, rewarding them on the basis of their performance and many
more. It will help them also too in improving their work and provide result efficiently.
Job satisfaction can be achieved by desired outcomes. If employees are happy with their
jobs they will increases efficiency of firms and this results in increased growth and revenues for
firms. Employees commitment towards their works are also effective HRM practices.
Example: Training and development activities which are organised for employees are
helpful in increasing their knowledge and experience. They are given practice knowledge about
how work will be completed effectively on time.
HRM practices are helpful in motivating employees by increasing their morale and
increased retention of employees in organisations. This will be cost effective technique as
mangers does not have to incurred cost on recruitment of new employees (Tarique and Schuler,
2010). As there are many employees who are belonging from different places so it is
responsibility of higher authority as well as HR of Aldi to conduct proper training for them.
Through this, it will help them to know about their roles and duties which they have to perform
at work place.
Fairness and equality at work place are also important factors as it creates positive work
environment in which employees can achieve their desired goals and objectives for Aldi.
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CONCLUSION
From the above report, it can be concluded that role human resources are important for
every business and they are helpful in recruiting, selecting potential candidates. Along with this
they are conducting proper training session for new and existing employees. Plans and policies
are helpful in creating effective working environment in which employees can perform their
roles and responsibilities according to plans and procedures. Strong employee relations are
helpful in creating a string relationship bond between workers and employees which are helpful
in maintaining loyal employees for the firms. Wage legislations are designed which are helpful
in protecting employees who are facing discrimination at the workplace.
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