An Analysis of Human Resource Management Practices at Aldi

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Aldi. It begins by outlining the core functions of HRM, including workforce planning, recruitment, and employee relations, specifically in the context of Aldi. The report then delves into the strengths and weaknesses of Aldi's recruitment and selection processes, evaluating both internal and external factors. Furthermore, it examines the benefits of different HRM practices for both the employer and employee, considering aspects such as positive behavior promotion, flexibility in the working environment, and employee development. The report also assesses the effectiveness of various HRM practices, such as healthcare benefits, retirement benefits, talent acquisition, and training and development programs. Finally, it explores the importance of employee relations in influencing HRM decision-making, including the impact of employment legislation on HRM practices within Aldi, using specific examples to illustrate the application of HRM principles in a work-related context. The report concludes with a summary of the key findings and recommendations for improving HRM strategies within the Aldi organization.

Human Resource
Management

Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
P 1. Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing the chosen organisation of your choice or Aldi........................................................4
P 2. The strengths and weakness of recruitment and selection for Aldi.....................................5
Task 2...............................................................................................................................................7
P 3. Benefits of different HRM practices within Aldi for both the employer ad employee.......7
P 4. The effectiveness of different HRM practices in Aldi’s ....................................................8
Task 3...............................................................................................................................................9
P 5 the importance of employee relations in respect to influencing HRM decision making......9
p 6. Elements of employment legislation and the impact it has upon HRM decision making
for Aldi......................................................................................................................................10
Task 4.............................................................................................................................................11
P 7. The application of HRM practices in a work-related context , using specific examples
from Aldi...................................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Introduction
The aim of research is to develop an effective human resource management under the new
branch of Aldi company opened at Wembley Central place. Human resource management is very
important for enhancing or motivating the employees towards the work assigned to him and
effective HRM practices increases growth of company as well as develops skills and abilities of
employees. Aldi company is a common brand used by leading companies in global market. It has
a big chain in Germany and is the supplier of food products. This company has a higher growth
in global market and follows the strategy of serving the best quality of food products to their
customers in order to achieve their morale and increase the growth of the organization. The
purpose of research is to analyze the importance of human resource management in every
organization and also focused on roles and functions performed by the human resource manager
to develop or enhance the efficiency of employees working under the organization. Moreover,
the research also includes the rules and policies framed by law in every business sector as well as
the focus is on human resource practices for welfare of employees working under the Aldi
company.
Task 1
P 1. The functions of HRM, applicable to workforce planning in the context of ALDI
The purpose of human resource management in Aldi is to utilize the human resources
available in the organization effectively and efficiently to achieve the desired goals. Their goal is
to exercise the abilities and talents of available staff to obtain the operational objectives of the
firm. Basic purpose of human resource management is to ensure that employees are fully
satisfied with compensations, working environment any every other undertaking in the Aldi

company. Moreover, Human Resource management frames different policies that shapes and
builds company's growth.
Basic functions of Human Resource Management: - Organizing Training and Development Programs: it is the crucial function of Human
Resource Management. In this function employee’s present and future performance
within Aldi is enhanced by developing their skills, abilities, education, motivation etc. Good Working Surroundings: - responsibility of Human Resource Management is to
maintain good working conditions of the employees working under the organization
which increases their morale. Motivating employees also results in achieving
organizational goals as well as promotes satisfaction of job and welfare of workers
(Armstrong, 2016). Recruitment and selection: - it's a process of fascinating, choosing and screening the best
candidate which is suitable for the required job. Basic aim is to attract deserving
candidates and motivating the disqualified one to increase their abilities. Recruitment and
selection is most important function to be performed by Human Resource Management
because it provides the Aldi company with most efficient employees to increase the
growth of the organization. Employee Relations: - this function is performed to foster the relations of employees in
the Aldi. Employees are termed as the pillars of the company and it's a responsibility of
management to organize programs or activities which develops and maintain sound
relations among the workers. This acts as a key for success of venture.
 Orientation Programs: - It is the crucial step to support a new employee entering into the
firm and make him comfortable among existing employees. Moreover, providing
incentives is the most effective function of Human Resource Management (LePine and
et.al., 2016).
P 2. The strengths and weakness of recruitment and selection for Aldi.
Weaknesses of Recruitment and Selection Process: - main weakness of Aldi lies under
this process is that recruiters allocate lot of time in selecting the candidates. It is time consuming

and expensive process which incurs huge cost. This involves weaknesses both internally and
externally under recruitment and selection process. Internal Weaknesses: - Organization which follows internal recruitment and selection
restricts deserving new candidates to enter into Aldi. However, company may miss out
effective candidate that may help in increasing the firm's future growth. External Weaknesses: - Recruitment and selection process performed externally takes
more time and incur more costs. This may result in conflicts among employees already
working in Aldi. Further, it reduces morale of existing employees (Tekleab and et.la.,
2016).
Strength of Recruitment and Selection Process: - Recruitment and Selection process is most
effective function that is performed by Human Resource Management under Aldi company. In
this function organizations can identify candidates easily and can conduct training and
development program accordingly. Strength of this process includes: - Fresh candidates bring new aspect to the company: - Aldi company follows external
recruitment and selection process which will help organizations and existing employees
to experience new things and can affect the growth and achievement of objectives. At the
same time can contribute in success of venture. More chances of getting Desirable candidates: - Aldi company have a number of choices
among large pool of candidates and can select best out of them who basically fits for the
job. However, this contributes towards the success of venture. However, under this, an
organization can learn about qualifications, abilities, skills etc. of different candidates and
likewise selects the best among them. Escaping the Ripple effect: - This effect creates conflicts among employees working
already with Aldi. It generally occurs due to internal recruitment process, therefore
chances of such conflicts are comparatively low in Aldi as it emphasizes more on
external recruitment (Nahavandi, 2016). Brings out new Business Judgment: - It creates new outlook for the existing employees.
Moreover, it is very useful factor to create competency for the organization among their
rivals.
 Vacancy advertisements: - It's an interactive method of job posting which creates
competitive image of company. It generates more awareness among the people about the

firm and provides recognition. Posting online jobs conveys about the strength of the
company can result in obtaining the Aldi growth.
Task 2
P 3. Benefits of different HRM practices within Aldi for both the employer and employee
Human Resource Management involves number of practices which is performed by
managers, HR works to regulate workers of different departments. It is beneficial for both
employer and employee in following way: -
Promotes Positive Behavior: - Human resource management under Aldi company develops
healthy environment relationship among employers and employees which creates positive
working conditions within the organization as well as increases morale of employees (Shapiro
and Stefkovich, 2016). Different HRM practices like providing incentives, rewards, other
compensations enhance positive attitude among employees about the company and management.
This further improves the growth of the company.
Flexibility in Working Environment: - now-a-days employee’s expectations are different if
compared with earlier one. They prefer more of the adequate working conditions. Human
resource management is beneficial because it diversifies business environment of the employees
and employers to increase their morale. Such diversification is termed as flexibility in
workplaces. Therefore, an employee can diversify job according to his suitability.
Developing Employees: - Motivating and encouraging employees is the basic aim of human
resource management. If employees are satisfied by their work, will contribute completely for
the growth and welfare of an organization. Moreover, main aim of human resource management
is to motivate employees in accomplishing tasks and increasing their efficiency towards the
assigned work. Moreover, to enhance skills and abilities of employees various training and
development programs are even organized by Aldi.
Motivating employees and employers: - Motivation is basic aspect of human resource
management which enhances job morale and satisfaction of employees and employers. It is the
manager's responsibility to increase work efficiency of employers and employees which
enhances their competitive and developed perception (Meuser and et.al., 2016).
Benefits for Employees:

Conflict resolution: This is one of the major benefit of HRM function which helps to running out
a business in a smooth way. There are various issues can be arising due to working condition,
labor hour, wage and pays. HRP practices provide a platform which these issues can be resolved
and provide a long term benefit for the business in the longer run.
Personal and professional development: One of the major function of HRM is to provide
training and development on regular basis in order to increase efficiency and productivity. With
the help of such training program an employee can improve their skills and capabilities which is
beneficial in their personal and professional development.
Benefit for employer:
Meet future challenges: Business environment is dynamic nature and create new challenges in
front of a company. Therefore, HRM function nerds to understand these challenges and tries to
meet in the near future.
Building long term relation: Employees-employer relation plays a vital role in the success for an
enterprise in the longer run. Therefore, this is responsibility of HR department is to maintain
good relation by using various approaches which can help to create staff loyalty and provide
competitive advantage.
P 4. The effectiveness of different HRM practices in Aldi’s
Human resource management performs number of practices in order to ensure more
profit and productivity. Some of basic practices are: - Health Care benefits: - in order to attract employee’s health care benefit, need to be
offered by Aldi. Such benefits ensure the safety and security of the employees and
increases their morale towards organization which ensures the productivity and profit of
firm. Retirement Benefits: - most effective practice of human resource management is
providing retirement benefit to the employees. This eradicates stress level of old workers
at the time of retirement. Moreover, it enhances morale of the employees towards
company which results in its growth and raises the profit and productivity of Aldi. Talent Acquisition: - under this practice talent of the candidate is utilized and developed
to achieve the growth of an employee and organization (Bosse and et.al., 2017). Talent
acquisition is important to be performed by human resource management to enhance the

skills and knowledge of the human resources which raises the productivity and profits of
the firm. Bonuses, Incentives etc.: - such benefits ensure safety and security of individual towards
his work. It enhances the interest of employees to accomplish the objectives of
organization as well as contributes in achieving the growth of the company. Moreover,
this practice motivates the employees to work effectively under Aldi and results in raising
profits and productivity. Training and Development: - it is a crucial practice performed by human resource
management to enhance skills and abilities of the employees working under Aldi. Proper
training of job increases work efficiency and interests of employees towards his work.
This practice contributes in raising the profits and productivity of company. Flexibility in Organization: - flexible structure of management improves the working
conditions of the organization (Kunze and et.al., 2016). Flexibility in policies and
regulations increases the work efficiency of the workers and therefore contributes in
raising the profits and productivity of Aldi company.
 Recruiting and Tracking the Applicant: - this practice is performed to track and recruit
the desirable candidate to enter the organization. Recruiting the best human resource is
important for company's growth and even contributes in increasing profits and
productivity.
Task 3
P 5 the importance of employee relations in respect to influencing HRM decision making
Employee relations is a crucial element under human resource management. Every
employee in an organization must have a relation with their co-workers which enhances
efficiency towards work and increases the morale towards Aldi. Human resource management
have direct influence on employee relations because: -
 Work becomes easy if it is shared among all: - healthy relations among employees
enhances the efficiency of work and in case of any work load under the organization it
can be eased with the cooperation between the employees and also results in increasing
the productivity. Moreover, if we have good relations with our colleagues than he would
be always ready to support you in every situation.

 If employees work as a family than organization would turn into a happy place: - an
employee whose mind will always be clouded with stress and tensions than he will never
be efficient towards his work and will decrease the personnel morale towards Aldi
(Gottfredson and Aguinis, 2017). However, effective coordination among employees
results in healthy environment and decision-making would be done easily by human
resource management.
 Several issues occur on which the decision cannot be taken by an individual: - while
taking the decision regarding a particular thing an individual would ask for advice from
his co-worker which reduces the pressure among them. If there would be no healthy
relations between employees, it would decrease the morale towards organization.
 Healthy employee relations reduce the absenteeism: - it enhances the interests of
employees towards his work and also develops his morale. Sound employee relations
motivates workers to visit office regularly and complete their task on time which increase
growth of the venture as well as of employees.
 It reduces conflicts among employees: -- healthy employee relations reduces the conflicts
under Aldi and ensures growth of an individual. Eradication of disputes among
employees helps human resource management in decision-making and results in
organization growth (LePine and et.al., 2016).
 Maintaining the relation among employees results in future support: - employee relations
are very important in decision making by human resource management because a good
relation among co-workers increases the level of support if there is any false occurring
under the organization. Moreover, it creates sound business environment to work
effectively by enhancing growth of Aldi company.
P 6. Elements of employment legislation and the impact
Federal legislation has depicted that employment laws and regulations differ from state to
state affecting employee criminal records, labor relations etc. federal laws have a great impact on
human resource management because HR manager should be well versed in adopting changes
occurred in legal structure to ensure organization growth. Elements of employment legislation
are: -

 Wage and hour: - Fair Labor standard act was established to ensure the minimum wage
rate that should be provided to employees on periodic basis. This has a direct impact on
human resource management because HR manager must verify accurate amount paid to
employees and must ensure that appropriate classification of job duties must be there
(Armstrong, 2016).
 Medical and Disability: - the federal law stated that employer should effectively help
disable or medically ill employee in accomplishing his task. This act also ensured that
reasonable accommodations must be made by employers in regard to medically ill and
disable employees to ensure their health, safety and security. It has a direct impact on
human resource manager because he should develop certain rules and policies to ensure
medical health of an employee working under Aldi.
 Anti-Discrimination: - according to the Civil Rights Act 1964 it has stated that there
should be no discrimination among the employees regarding age, sex, color, caste, creed
etc. Moreover, the study says that employers should not refuse to hire those employees by
discriminating him on above references. Such rules and policies are not applicable to
those venture having less than 20 workers.
 Leave Provisions: - FMLA act depicts that employees are eligible to take unpaid leaves
up to 12 weeks in case of any serious problems like health issues. This act basically
concerns about job protection of employee working under business organization (Chiu,
Balkundi and Weinberg, 2017). It has a great impact on the human resource management
because the staff should provide training to managers and supervisors regarding eligible
reason for leave.
Other Employment Laws: -there are several other laws framed under legal structure in protecting
the employee rights under the Aldi company such as child labor regulation act, employee
polygraph protection etc. to ensure employee growth and protection under business environment.
This created a great impact on human resource management in making decisions because HR
manager is now abided by law and has to ensure growth and development of the employees
working under a venture.
National minimum wage act 1998: This is one of the key legislation in UK which provide a
guideline regrading labor rate according to the age. In the context of ALDI where, they required

to design its pay structure as per these laws. There are following legal compliance related with
the wage rate:
Age Wage rate (£)
16-17 Years old 4.05
18-20 Years old 5.60
21-24 Years old 7.03
Task 4
P 7. The application of HRM practices in a work-related context
As per the scenario of Aldi company it has stated that there is a fair relationship between
HRM practices and employee attitude. An appropriate HRM practice is related to high level of
employee commitment level and this further benefited employees by providing them training and
development programs, enhancing their skills and abilities and even improves retention of
employees in regard to cope up among working environment. Moreover, if the HRM practices
proven out as unfair as employee will feel betrayed and less committed towards his work.
For measuring the relationship between HRM practices in a work related context, it can
be done by collecting data from employees by various approaches: - The Additive approach: - this approach is used for assessing relationship among HRM
and employee's. It is formulated with the help of yes/no response format. The yes
responses indicate the positive response for the human resource management whereas 'no'
indicates the false outcome (Tekleab and et.la., 2016). This is the simplest approach to
forecast the HRM practices. Employee self-reports about the HRM practices: - under this report the employees are
given with direct responses about the HRM practices ensuring whether it is beneficial for
the employees or not. HRM practices are now concerned about morale of the employees
and are furthermore concerned about their attitudes and perceptions.

 Employer self-reports about HRM practices: - under this approach employer assess the
negative and positive report regarding human resource management practices in their
working environment.
Aldi company while starting new branch at Wembley Central place has to develop
number of HRM policies to ensure the sound business environment in regard to employees
working under an organization (Shapiro and Stefkovich, 2016). Effective human resource
management practices like organizing various training and development programs, providing
incentives, retirement benefits etc. enhances morale of employees and work efficiency towards
his work.
Conclusion
From the above study it is concluded that every organization must follow an effective human
resource management function to achieve morale of employees working under business
organization. Human resource manager must focus on the practices which are beneficial for the
employees by organizing training and development programs, providing them with number of
incentives, bonuses, retirement benefits etc. to create the job security and satisfaction among
employees. However, legal policies should also be practiced by HR manager to ensure growth of
an organization. Further, the employees should also be provided with some recognition for his
work among other employees which develops his morale. Lastly, employee relations must be
highlighted among the business venture which reduces the chances of conflicts and creates
friendly business environment for employers as well as employees.

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