Human Resource Management Report: Aldi's HRM, Recruitment, & Selection

This report provides a comprehensive analysis of human resource management (HRM) practices within Aldi, a global discount supermarket chain. It begins by defining HRM and its core functions, specifically focusing on workforce planning and resourcing. The report then explores the strengths and weaknesses of various recruitment and selection approaches, contrasting internal and external recruitment methods, and analyzing techniques like job descriptions and skills inventories. Furthermore, it examines the benefits of different HRM practices for both employers and employees, including employee retention, relationship development, and workplace flexibility. The report also assesses the effectiveness of HRM practices in terms of raising profit and productivity. It then delves into the importance of employee relations and the influence of employment legislation on HRM decision-making. Finally, the report illustrates the practical application of HRM practices in a work-related context, providing a well-rounded overview of HRM principles and their application within a real-world business environment, offering insights into Aldi's strategies for managing its workforce.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Explaining purpose and functions of HRM, applicable to workforce planning and
resourcing....................................................................................................................................1
P2. Explaining strengths and weaknesses of different approaches to recruitment and selection.
.....................................................................................................................................................2
LO 2.................................................................................................................................................3
P3. Explaining benefits of different HRM practices within Aldi for both employer and
employee.....................................................................................................................................3
P4. Evaluating effectiveness of different HRM practices in terms of raising profit and
productivity.................................................................................................................................4
LO 3.................................................................................................................................................5
P5. Analysing importance of employee relations in respect to influence HRM decision
making.........................................................................................................................................5
P6. Identifying key elements of employment legislation and its impact upon HRM decision
making.........................................................................................................................................6
LO 4.................................................................................................................................................7
P7. Illustrating application of HRM practices in work related context.......................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The term human resource management is defined as an operation that has been performed
in a particular company (Human Resource Management (HRM): Definition & Functions, 2018).
This helps in designing maximum performance of the employees that later leads in meeting
strategic goals and objectives in particular company (Al Ariss, Cascio and Paauwe, 2014). Thus,
in the following report, Aldi has been taken into consideration. It is a common brand of two
german discount supermarkets that has over 10,000 stores in 20 countries. They also has
estimated combined turnover of more than 50 billion Euro.
In the following report, the purpose and functions of HRM along with its strengths and
weakness of different approaches is discussed. Furthermore, benefits of different HRM practices
and its approaches that raises organisational profit and productivity has also been explained. In
addition to this, it also highlights on key elements of employee legislation and its impact on
HRM decision making and applications of HRM practices.
LO 1
P1. Explaining purpose and functions of HRM, applicable to workforce planning and resourcing.
Human resource management is a term that is defined as allowance in order to implement
strategies that helps the Aldi in bringing out innovation, productivity and efficiency in the
employees that are involved in particular organisation (Albrecht and et.al., 2015). It also helps in
creating bridge between line management and workers of Aldi in order to increase performance
of employees to their highest level that is corresponding to their role in a particular selected
organisation.
Further, workforce planning is defined as a process that is continuous and is used in order
to align needs and priorities of organisation with its workforce.
Thus, purposes and functions of HRM are discussed as per below context-
PURPOSES
Management of Internal customer- This is an important purpose that has to be fulfilled by HRM
(Armstrong and Taylor, 2014). Thus, productivity of Aldi mainly depends on quality of
employees they have in an enterprise. They first design the process and policies and later
implements it that acts as a significant role in attracting, recruiting and retaining quality
workforce. There must be a direct relationship with the financial performance of the stated

company Aldi. Furthermore, they also have to serve customers that are internally involved in
order to create external relationships.
Human resource planning- the future demand and supply is systematically forecasted along with
deployment of workers with respect to strategic objectives of Aldi. It also serves links between
human resource management and strategic plan of the overall organisation. Furthermore, it also
helps in identifying competencies that is being needed for fulfilling needs and goals of stated
company and acquires those people that are appropriate for it.
FUNCTIONS
 Recruitment and selection- the term recruitment is defined as selecting potential
candidates that are qualified which are basically based on objective criteria for particular
position (Australian Human Rights Commission, 2016). The main aim of this is to attract
applicants that are qualified along with encouraging candidates that are unqualified in
order to bring themselves out. It is the most challenging task for the manager of HR as it
requires lots of resources and attention in a particular company. Selection is therefore
developed in order to guide decisions that is been done on recruitments. Thus, during
process of recruitment applicants are therefore assessed to that extent which they meet
the criteria of selection. Thus, selection is been done as per the overall suitability and best
fit with that criteria as compared to other candidates.
 Training and development- Training and development is very essential in order to
achieve success in Aldi. This plays critical role in achieving long term profitability. This
also helps in making employee perfect in their respected position by acquiring more skills
and knowledge. This also helps in understanding process easily and also perform their
works or tasks allocated to them by putting maximum efforts that later leads in achieving
long term sustainability. It plays role of attempting in order to improve current and future
performance of an employee with help of increasing ability by educating and increasing
their knowledge as well as skills.
P2. Explaining strengths and weaknesses of different approaches to recruitment and selection.
Recruitment of candidates plays a role of science as well as art. Aldi company
approaches this in both reactive as well as proactive method (Bratton and Gold, 2017). This
helps candidates in responding quickly to new jobs or any type of vacancies that are available for

those who are qualified accordingly before opening up of a new position. Thus, strengths and
weakness of recruitment and selection has been discussed as per below context-
Internal recruitment
Internal recruitment is when business looks in order to fill the vacancy from within its
existing force.
Strengths
 it is termed as the cheaper one and takes limited time to recruit.
 People in internal recruitment are familiar with the business and knowns the operation.
 It also provides opportunities within business that motivates them.
Weakness
 it limits the number of candidates that are potential.
 New ideas can not be introduced from outside.
 Creates another vacancy that has to be filled.
External Recruitment
External recruitment is when business looks to fill vacancy from any applicant that is
suitable outside the business. This means that this processes done with people that are not
involved in business.
Strengths
 The major strength is that the people bring new ideas from outer environment.
 There are larger volume of people available and it becomes easy to identify suitable
candidate.
 People who are involved have wider range of experience.
Weakness
 It is termed as a long process.
 The process is very much expensive because it includes advertising and interviews.
 The process of selection is not effective enough to reveal out the best candidate.
Thus the approaches and their strengths and weakness has been discussed as per below context.
 Job descriptions- job description is an initial stage in hiring policy that requires accurate
descriptions. This includes all the important information regarding job, task they have to
perform, their salary and other terms and conditions that candidates must know before
joining Aldi. Thus, it helps in analysing their interest in different positions that are

available and can also provide insight into which the applicants would be more satisfied
in order to acquire particular jobs. The consequence of this is that it acts as a very
challenging term in order to create job description in start-up phase.
 Skills inventory- this approach helps in finding ideal candidates. Thus, for this they have
to compile the list of skills that has to be acquired by employees in each position
(Brewster and et.al., 2016). This will further help Aldi to find the most talented
candidates with unique skills and has innovative ways that will help the stated company
to get succeed. This helps when there is lack of requirement in Aldi.
 Job posting strategy- This strategy is basically a part of systematic recruitment and
process of selection in Aldi. Thus, the outlet of job posting helps in producing the
candidates that are ideal which the company is actually looking for. This helps in finding
the talented candidates that is required for vacant position in Aldi.
 Multi step recruitment- this is a systematic process thet helps in providing deeper insight
into candidates that are actually interested in a particular job. It acts a a most challenging
process for a business that have lack of human resource manager and also directs in
supervising manager in order to collaborate. This process is very time consuming that
results in delay in making a decision regarding recruitment.
Strengths-
Thus, major strengths of different type of approaches is that the members can easily
measure their interest and choose the position as per their interest in work. This indirectly
motivates employees to perform their work in which they are interest with enthusiasm that leads
in achieving long term success and profitability. In addition to this, it also helps Aldi in finding
the candidate that are appropriate in particular position with the list of skills they have with them
while finding candidates.
Weakness-
It has been said that every positive aspects' comes with negative points with them. Here
negative points is that it is time consuming because they don't have supervising manager in Aldi.
Further, it also acts as a challenging task to create job description.

LO 2
P3. Explaining benefits of different HRM practices within Aldi for both employer and employee.
HRM practices helps in predicting the actual performance of a particular firm (Collings,
Wood and Szamosi, 2018). It also helps in enhancing the ability of workforce, motivation and
also opportunities that later leads in achieving higher performance in the firm and also high term
profitability. Thus, the benefits of HRM practices has been discussed as per below context-
 Retaining employees that are qualified- the stated company Aldi helps in providing easy
access and also flexibility in benefiting their members. This will help them in getting the
staffs that are highly qualified. Thus, with help of these well and highly qualified staffs
they can easily manage risks and burden of Aldi easily in this way it helps employer.
Hence, practices of HRM plays an important role in retaining qualified employees. This
helps employees by rewarding for the best performance given by them that will help them
in motivating.
 Developing good relations- HRM practices helps in developing good and strong relations
between all the workers that are involved in Aldi. This later helps in tracking the progress
and accessing performance of employees that leads in taking necessary actions in order to
control by drafting business and marketing plan. Thus, this will help employer in
increasing the loyalty of customers. Later this loyalty will help employee in maintaining
relationship with them that later leads in achieving high term profit.
 Motivating workers- the practices that are being provided by Aldi helps employees in
order to increase their thinking as being unique one in the position and also helps them in
a positive way. This will make them feel more motivated that will later result in high
productivity. This can be gained automatically as they start thinking themselves as unique
and innovative person that can gain success in a particular position they are working in.
this will help employer in achieving high term profits and help employees to feel
themselves as unique or innovative person.
 Building flexible workplace- the practices that are undertaken by Aldi helps in building
flexibility. The company that has been selected has to provide them with work
environment that is flexible and also location with flexibility. This leads employees in
order to customise aspects of their jobs that actually suits their profession. This will later

help in achieving high productivity and long term image of a particular brand to the
employer.
 Encourage positive behaviour- Aldi also has provided the working environment that has
positive vibes. This will motivate employees in order to work more and in productive
manner. But, if Aldi will have environment with negative vibes it will create
dissatisfaction that may later affect the growth of an organisation. Thus, in this way it
also helps the employer along with employees.
 Training and development- Training and development is the best practice of HR. it has
been stated that cited company must invest maximum time and budget in training so that
they can develop maximum skills among employees that later leads in achieving long
term success.
 Reward management /system- HRM of Aldi must adopt the practice of reward system.
They must reward employees for their performance so that they may get motivated and
put their extreme efforts in business.
 Flexible working- Flexible working is also an important practice as it helps in increasing
employee morale, engagement and also commitment towards organisation. This also
leads in reducing absent ism and turnover of a valued staff.
P4. Evaluating effectiveness of different HRM practices in terms of raising profit and
productivity.
HRM practice is a term that is defined as approach that has been planned in order to
manage individuals to perform well in effective manner (French and Strachan, 2015). Some
practices are so good that it helps in achieving departmental objectives and also leads in
enhancing productivity. It has been played an effective role for both employer and employee of
Aldi in terms of raising organisational profit. Thus, Aldi has taken implementation that later
benefited the company with huge volume of profit and productive and has been discussed as per
below context-
 Innovative and high performing employees- The practices of HRM promotes
environment that is innovative and also motivate their members in terms of giving better
facilities. This type of initiative taken by selected company helps in increasing
productivity and profitability of the company that later leads in achieving long term
profit.

 Effective decision setting and execution- the managers and leaders of Aldi has to set and
achieve goals of individual along with the team with help of providing effective direction,
purpose, priorities and goals in workplace. This practices of HRM later helps in
recruiting manager that are appropriate for place or position that has been selected by
them. This takes the Aldi at the superior place where they enjoy high term profitability
and productivity.
 Effective rewards- the employees of Aldi must be rewarded as per their performance that
will help in driving their performance by motivating them with awards and incentives.
This will help in achieving long term success because they will be allocated with the
work they have interest in. Thus, this reward helps in achieving high term profitability
and long term success.
 Team and individual goals with effective communication- Aldi has to change the
communication process in an effective way so that it helps them in maintaining and
achieving the goals that is related to both individuals and teams. So they have to provide
practices that leads in effective communication which results in making company to
enjoy customer loyalty and reach the boost.
 Updating skills of employees- the practices of HRM also includes to update the skills of
employees with help of training that will help them in coping up with competition in
market that has been faced by them. They also have to identify the person who has less
skills and accordingly update it so that they can meet the needs and requirements of the
customers.
Thus, this practices of HRM uses methods in large numbers along with different techniques
which mainly comes from mathematics, management and statistics (Vanhala and Ritala, 2016).
This practices also plays critical role in using these methods for redesigning process. In addition
to this, one method that has been included in the appraising performance and is a systematic
process that later helps in evaluating performance of individuals with respect to the set of
objectives that are pre determined.

LO 3
P5. Analysing importance of employee relations in respect to influence HRM decision making.
Employee relations plays an important role and is the most valuable asset that is available
and is required in every organisation (Marchington and et.al., 2016). The HRM is termed as
successful, when they can easily challenge task even when economy is in the state of flow. Thus,
it becomes important in Aldi to share their relationships with their workers. Further, its
importance has been discussed as per below context-
 Work becomes easy- In order to increase the chance of productivity, it becomes
important to maintain relationship among the workers that are involved in Aldi. They
must also share their work and task in the group that will help them in achieving the
desired goals within a particular time assigned to them for completion of a task. This will
also help the staff in assisting them who requires need and guidance and achieve results
sooner that will influence the decision making of HRM.
 Discouraging conflict among workers- Building good relations between workers will help
in reducing conflicts and disputes among members. They will also start trusting each
other and direct others in terms of performing well. This will later help in achieving high
volume of profitability and loyal customer base. Thus, this influences the decision
making of HRM in Aldi.
 Loyalty of employee- Loyalty from employees is created when the cited company have
pleasant environment. This loyalty will help HRM decision making as performing the
task that has been allocated to them with full interest and enthusiasm. The employee
turnover rate has also been decreased that leads in reducing the cost of recruitment in a
particular enterprise.
 Ensure equality- To ensure that there is no discrimination and has equality in the
organisation Aldi has to make employees feel motivated by with help of communicating
with them in effective manner. Thus, this will help HRM in achieving goals that has been
desired and set by the stated company. Furthermore, effective communication also helps
in taking effective decision on time by HRM..
Therefore, it is important for every organisation to have good relations with their workers that
later leads in making effective decision for the success of Aldi.

P6. Identifying key elements of employment legislation and its impact upon HRM decision
making.
Employment legislation has been defined as measures of various types that are related to
protection of employment (Ogbonnaya and Messersmith, 2018). This includes protection
measures, court rulings, collectively conditions that are bargained. Thus, key elements of
employment legislation and its impact upon decision making of HRM in Aldi has been discussed
as per below context-
 Age discrimination in employment Act, 1967- this is a law of labour performed in US
that helps in forbidding discrimination in employment against age group of at-least 40
years. This mainly includes protection on age basis to employees and also applicants in
terms of hiring, promotion, discharge, compensation or privileges of employment. Thus,
Aldi must adopt this act and provide various facilities that helps the one who is elder.
 Disability Act, 2016- in the whole world there are more than one billion people that
suffers from health issues both physical and mental disabilities. And also faces many
challenges daily (Storey, 2014). So the stated company Aldi must adopt this act that will
later help them to make them feel free and also ensure them that they equal access to
rights and various opportunities as compared to others. This will help in decreasing the
retention of employees in Aldi and can make decisions regarding the company on time.
 Equal Pay Act, 2010- this act helps in protecting both man and women employees. This
act helps in terms of sex discrimination in an enterprise. The company must adopt this act
when women are paid with less amount than man for the same work. Adoption of this act
will help in increasing efficiency of women that later leads in high quality decision
making of HRM.
 Minimum Wage Act, 1948- This act helps in fixing the rate of wages that is minimum in
certain employments- here, they are set to pay minimum wages for both skilled and
unskilled labour. This act will later help Aldi in increasing labour that results in high
productivity and increased brand image. This will lead in making good decision on time
by HRM of Aldi.
Thus, all these acts that has been discussed above plays significant role in regulating relationship
between business and employees involved in stated business. Hence, with help of theseboth

employees and employers must ensure that their process in terms of hiring and their workplace
are very fair for each and every type of individuals.
LO 4
P7. Illustrating application of HRM practices in work related context.
HRM practices are those functions that are performed within an organisation, so that
there is optimum utilising of available human resources (An Introduction to HRM Practices,
2017). Aldi is a successful company, which shows that they have a good human resource
management team that performs different practices in an effective manner. These include
following
 Recruitment and selection- The stated company follows very strict process in terms of
recruitment and selecting the candidate for a particular job (Paillé and et.al., 2014). Thus,
there are wide range of HRM practices in different countries that helps in choosing the
best candidates that are available in order to increase revenue and profits in a particular
enterprise. They also opt for the external methods in terms of recruitment generally
through college placements and advertisements of job vacancies. This practices of HRM
plays vital role in gaining talented employees.
 Training and development- HRM practices include training and development of
employees within an organisation. Thus, manager of the cited company has to analyse
and determine various theories that can be later used for programs that helps in increasing
skills of workers (Soutphommasane, 2015). They must also ensure that they choose the
best leaders that are available that can later guide the employees in order to bring out
potential in the best way from them. There are also certain strategies that has been
successfully implemented with organisation. This practice adopted by HRM in Aldi helps
in achieving long term success and brand image.
 Management of performance- This is the basic and another important practice that has
been adopted successfully by Aldi. They have to regular monitor and also evaluate the
performance of employees that help in ascertaining the improvements that are needed.
Further, it also aids in implementing motivational techniques so that it motivate
employees in order to work better. The stated company must ensure that their employees
are engaged in order to perform tasks while using full potential that enables in achieving