Human Resource Management: Planning, Resourcing at ALDI

This report provides a comprehensive overview of Human Resource Management (HRM) with a focus on workforce planning and resourcing, using ALDI as a case study. It begins by outlining the functions of HRM, including managerial and operative aspects such as planning, organizing, staffing, directing, controlling, procurement, development, compensation, maintenance, and motivation. The report details how these functions contribute to achieving business objectives. It further explores the processes of recruitment and selection, comparing internal and external recruitment methods and their respective strengths and weaknesses, evaluating ALDI's preference for internal hiring. The report also discusses various HR practices like workforce planning, recruitment and selection, performance management, training, and incentive and reward systems, highlighting their benefits. The document emphasizes the importance of these practices in maximizing employee performance and organizational success. Desklib offers a platform to explore similar solved assignments and study resources.

HUMAN RESOURCE MANAGEMENT

Contents
INTRODUCTION.......................................................................................................................................3
COMPANYS OVERVIEW.........................................................................................................................4
LO1.............................................................................................................................................................5
LO2............................................................................................................................................................11
LO3............................................................................................................................................................15
LO4............................................................................................................................................................19
CONCLUSION.........................................................................................................................................26
REFERENCES..............................................................................................................................................27

INTRODUCTION
Human Resource Management(HRM) is managing people at work, human resource management
starts from the hiring of a candidate and does all the thing till retirement of people. Human
resource management manages and supports all departments in an organization( Cascio 2015).
This assignment explains purpose of human resource management for planning and resourcing
workforce, an assignment is divided into four parts, the first part of assignment discussed
functions of HRM and its different approaches. In the next part of the assignment discussion of
different HRM practices within the organization context and discussed various employment
legislation and its effect on decision making over the organization. Last part of assignment
discussed HRM practices related to work.

COMPANYS OVERVIEW
ALDI is based in Germany established in the year1946 it is a private retail company and a
supermarket chain. Founder of ALDI is German Karl and Theo Albrecht, later on, they split their
business into two groups Aldi Nord and Aldi Sud. It is having 10000 stores worldwide in 70
countries. ALDI deals in product like Food, beverages and household (Schmid et al .,2018).
[Figure 1: ALDI]

LO1
HUMAN RESOURCE FUNCTION
HRM of an organization has to work for their manpower so that employees work with
satisfaction. Functions of HRM begin with the hiring of candidates and ends till retirement of an
employee. Human resource department works for employees and providing a facility to
employees like training and development, compensation, promotion etc (Noe et al., 2017).
[Figure 2: Functions of Human Resource Management]
(Source: Noe et al 2017)
human resource management functions are:
 Managerial Functions
 Operative Functions

MANAGERIAL FUNCTIONS
HR department works for the organization and is a part of the organization and therefore the HR
department manages all other departments in an organization. Managerial functions of HRM are
planning, Organizing, Staffing, directing and controlling.
 Planning: Planning is done in advance before commencement of any work
planning is done it is the future course of action. Planning is to decide who will be doing
this work, how this work is completed and when it is to be done. Planning is the most
important process of starting any kind of work and good planning leads the organization
towards achieving business objectives. Planning is based on demand and supply
forecasting of any project. Proper availability of things is excess and shortage look after
during planning process . (Noe et al., 2017).
 Organizing: Second important function of HRM is organizing, organizing comes
after planning. The organization works in the direction of achieving business
objectives and for achieving things it is important to execute the plan properly.
Organizing includes proper allocation of duties to employees and delegation of
authority.
 Directing: Directing means to help and motivate employees in their work. To
keep employees motivated during work is important managing and maintaining a
healthy relationship with employees during work comes under directing. The
mentor is the person who is responsible for directing employees during the overall
completion of work( Cascio 2015).
.
 Staffing: Staffing is the process of selecting candidates. Staffing in an
organization is carried out with process of hiring of individuals. In an
organization there are various departments like finance, HR, marketing,
production and operation and to fulfil the requirement of manpower in all other
departments, HR department completes all this process of hiring. Staffing starts
with the hiring of candidates internally or externally and then finally candidate is

selected. The skilled staff of organization leads the company towards a path of
success.
 Controlling: Controlling is the last step of managerial functions. The motive of
controlling is to look after the overall process of functioning of an organization.
Rules and regulations are made to follow to make individuals responsible and
punctual. Controlling observes individuals styles of work if that work is going on
as per the regulation of the organization(Noe et al., 2017).
.
OPERATIVE FUNCTIONS
This functions made by the HRM of company for the proper implementation of various works.
Operative functions include Procurement, Development, compensation, Maintenance and
Motivation.
 Procurement: Procurement is hiring and selection of individuals, planning for hiring of
manpower is done in advance and according to that number hiring is done. Recruitment,
selection, promotion, demotion, induction, orientation all comes under procurement.
Recruitment and selection ensure hiring of candidate for an organization .( Cascio 2015).
 Development: when an employee is selected in an organization for their improvement
and enhancing the performance of work, the organization arranges training session for
human resource at workplace. Session for training is mandatory for employees to attend
inside or outside an organization. Method of training could be on the job training or off
the job training. Training session ensures the growth of individuals as well as
organization.
 Compensation: Compensation is the important operative function as employees are
working and instead of their services to an organization they get remuneration and it
must satisfy basic needs of individuals. Wages and salary come under-compensation
management. Wages given to workers and salary is given to employees( Cascio 2015).

 Maintenance: Maintenance of employees in the workplace is important. Health and
safety schemes are there for the betterment of employees. Also, maintain good
organization culture so that employee works freely and satisfyingly is important.
 Motivation: Motivation is an important factor as a motivated employee performs good
for company. When motivation of employees goes down mentor keep motivating their
employees for completion of work. Another form of motivating employees is providing
them rewards or adding incentives to their salary .( Cascio 2015).


HR FUNCTIONS AND RESPONSIBILITY
HR department is responsible for the functioning of every department of organization and HR
department and his team is responsible for every work related to people. HR department works
with every department and looks where there is a demand of manpower, based on demand
advertisement for hiring is published and recruitment process is carried out and a potential
candidate is selected. After the selection of a candidate, the HR department is responsible for a
background check, documentation and orientation of employees. In the orientation, process
employees get familiar with the overall process of the organization and know the policies of the
company (Lussier and Hendon 2017). One of the most important responsibilities of HR is to
keep their employees motivated and satisfied during work. Motivated employees always work
well and put his efforts towards achieving business objectives. Maintaining an overall record of
employee start from hiring till retirement of employees it includes an appraisal, promotion, terms
of working and benefits an employee receives in terms of incentives. HR department formulates
grievance handling committee for redressal of issues. Also, the HR department is responsible for
the training of employees. Training for employees is necessary for their improvement in
performance and work of employees. Also, the HR department maintains a record of training
session attended by employees as training is mandatory for every employee of an organization
(Lussier and Hendon 2017).
ACHIEVING BUSINESS OBJECTIVES WITH THE HELP OF HR FUNCTIONS
Functions that discussed above helps ALDI in achieving the business objective as a talented
workforce of organization works towards achieving the business for the company. Hiring is the
way to get manpower in the organization. It is upto the company for adopting process of
recruitment . When the company hire candidates by means of internal recruitment it is cost
benefit to an organization and when a company hire candidates externally it increases the cost of
the company. Talented workforce always shares innovative ideas which help in easy and fast
completion of work. ALDI hire employees internally and externally both. Training is given to
employees to get familiar with the working style and to know organization culture. Functions of

HRM are important to an organization as it plays an important role to guide, support and
motivate employees to work for an organization (Lussier and Hendon 2017).

LO2
SELECTION: Selection is choosing the best candidate out of a pool of candidates. Criteria for
selection of candidate are different in every organization. Selection is a negative approach as it
rejects a candidate who is not suitable for the desired post (Dany and Torchy 2017).
RECRUITMENT: Recruitment is the process of searching for desired candidates out of
numerous candidates. Recruitment consists of screening and shortlisting of resumes and
conducting preliminary interviews for the same. Recruitment is a positive approach as it selects
candidates for a further round of interview (Dany and Torchy 2017).
Sources of Recruitment (Internal and External)
INTERNAL RECRUITMENT
Internal recruitment takes place within an organization when an organization decided to hire
candidate internally from their existing candidates is said to be as internal recruitment.
Example: Promotion and transfer of employees(Brown et al.,2019).
STRENGTH WEAKNESS
 It is an easy process of recruitment.
 The company hires within their existing
employees.
 Employees already know the working
of the organization; less training is
required for already existing
employees.
 A limited number of candidates is there
to select for the desired vacancy.
 Lack of innovative ideas.
 Some employees feel disappointed
about not getting a chance of
promotion.

EXTERNAL RECRUITMENT:
External recruitment is a type of recruitment where employees are hired externally. The company
publishes advertisement online as well as offline in mews paper and social media websites and
then interested candidates apply for the empty position. This type of recruitment helps a
company to get the best suitable candidate for an organization (Dany and Torchy 2017).
Example: Advertisement in newspaper, job portals and employment agencies .
STRENGTH WEAKNESSES
 Lots of new and innovative
ideas.
 Many candidates apply for the
vacant position.
 Possibility of getting
experienced candidates
increased.
 Process is time taking and long.
 It increases cost of the company
as a company bear the cost of
advertisement and in some cases
provide travel allowance to
candidates.
 Risk factor is high due to
increase in time to adjust
employees in organization
culture.
ORGANISATIONS EVALUATION
ALDI prefer internal hiring as it is time saving and reduce the cost of the company. ALDI
recruited internally as existing employees knows the functioning of an organization better than a
new employee, also existing employee grasp things easily as he is familiar with working style
and policies of the company. Therefore ALDI finds suitable to promote existing employee rather
than hiring a new candidate. Also, the risk factor with an existing employee is low.