Comprehensive Analysis of HRM Practices and Effectiveness in ALDI

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within ALDI, a leading supermarket chain in the UK. It begins with an introduction to HRM, emphasizing its role in improving employee performance through strategic planning, recruitment, and orientation. The report then delves into the core functions of HRM at ALDI, including staffing, orientation, health and safety, union relations, personnel development, and compensation. It evaluates the strengths and weaknesses of ALDI's HRM approaches, such as team building and overall employee development, while also acknowledging potential drawbacks like data privacy and cost factors. The report further examines the benefits of HRM practices for both employees and employers, covering aspects such as skill development, time management, and employee incentives, as well as increased productivity and efficient management. Additionally, the report assesses the effectiveness of HRM practices on ALDI's profit and productivity, focusing on the importance of high-performing employees, efficient management, and well-planned strategies. The report also discusses the importance of employee relations in influencing HRM decision-making processes. The report concludes with an overview of the key elements of employee legislation and its impact on decision-making within ALDI. Specific examples from ALDI are used throughout to illustrate the application of HRM practices.

HUMAN
RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and Functions of HRM .......................................................................................1
P2 Strengths and Weaknesses of different approaches in ALDI............................................3
TASK 2............................................................................................................................................4
P3 Benefits of HRM practices in ALDI for employees as well as employers.......................4
P4 Effectiveness of various HRM practices for ALDI's profit and productivity ..................5
TASK 3............................................................................................................................................6
P5 Importance of employee relations influencing HRM decision making............................6
P6 Key elements of employee legislation and its impact on decision making process of ALDI
................................................................................................................................................7
TASK 4............................................................................................................................................8
P7 Illustrating the applications of HRM practices using specific examples from ALDI.......8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

Illustration Index
Illustration 1: Practices of Human Resource Management..............................................................2
Illustration 2: Employee legislation.................................................................................................7

INTRODUCTION
Human resource management can be considered as management of the personnel
resources. The main objective of HRM is to improve the performance of an employee by
complying with all the strategies and plans. The following procedure is beyond hiring and firing.
It deals with selecting the employee, then recruiting the ones suitable and then providing proper
induction and orientation to them (Zheng,Yang and McLean, 2010). It is in order to make them
perfect in their work so that they can be able to give outputs or results that can be prove
beneficial for the company. These practices help the employees in their overall development with
various efficient skills also. This report is about various human resource management practices
in ALDI. It is one of the two leading chain of the supermarkets operating in UK.
TASK 1
P1 Purpose and Functions of HRM
HRM is all about increasing the efficiency of an employee and extending it to that level
where the employee is able to achieve all the targets and goals of the organisation. It serves the
main purpose of the HRM. ALDI makes sure that they are following each and every function and
responsibility of HRM so that their customers as well as employees stay satisfied. Functions of
ALDI are as follows :
1. Staffing – It is the responsibility of the HR to select candidates on basis of skills,
qualification, talent etc. At ALDI, they first verify the number of vacant positions that
need to be filled in the company. After that they selects the candidates satisfying the
criteria. Then from all the selected, they recruit some who possess the best skills suitable
for ALDI. These two processes are the most important for any organisation (Bloom and
Van Reenen, 2011). These processes act as the starting point of a particular job. On basis
of these two only, an employee is being selected. ALDI has specialised HR staff for these
processes because they don't want to hire any employee with unsuitable qualifications
and skills which might incur heavy cost to the company.
2. Orientation – After selecting and recruiting an employee in ALDI, they focus on
providing the proper induction and orientation to the employees (Guest, 2011). Proper
training and development to the employees help them to have an idea of the work they
have to do. It helps them in getting perfect in various tasks so that they can help the
company in achieving goals and that too at a faster rate. Providing induction and
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orientation are considered as one of the major functions of HRM (Gruma and Saks,
2011).
3. Healthy and safety – HRM is responsible for managing the healthy workplace culture in
ALDI. ALDI thinks, a healthy workplace culture is very essential because while working
in a happy and healthy environment, the employees can stay more focused and motivated
towards the work. It can further result in better outputs. It is the responsibility of the HR
to provide motivation to the employees. Giving them, incentives or rewards based on
their performance sometimes is also a good way to motivate them. By this way they can
also consider that their work is being appreciated and they can stay more focused to the
work (CHUANG and Liao, 2010).
4. Union relations – It is very important in an organisation to have a good interaction
among employees. In ALDI, each and every employee have good contacts with the other
ones. They think there should be a good interaction between all the employees and the
staff. It helps in a better growth of the company, thus making the culture more healthier
and happier.
5. Personnel development : The human resource management helps in improving the
personnel features as well. After going through training and development and proper
orientation, a person becomes much able to have changes in their lifestyle, thus an
improvised personnel development is to be seen in the people.
6. Compensation and Labour : It is also considered as an essential function of HRM. The
compensation can be sub divided in two forms, financial and non financial. The training
of HRM makes a person enable in realising that as there are benefits, there are some
compensations as well.
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P2 Strengths and Weaknesses of different approaches in ALDI
ALDI follows all the approaches and strategies of HRM just to satisfy all the customers.
These approaches sometimes prove as strengths of ALDI and sometimes as weaknesses.
Describing some of the advantages below: Helps in team building: These various practices of HRM which are to be applied in ALDI
helps it in getting a cooperative environment between all the workers including the
employees as well as the management. These practices can be organising various sessions
so that the employees can interact with each other. IN these discussions, everyone must
be able to share their views as well as issues with each other so that the other employee
can help in resolving the issues. Better interaction between all the co-workers is
important. It helps in developing a healthier environment by which employees can stay
motivated and focused towards their work which can give better outputs to the
organisation (Zheng,Yang and McLean, 2010).
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Illustration 1: Practices of Human
Resource Management
(Source : Human Resource
Management, 2016)

 Helps in overall development: These practices of HRM which includes training,
development and orientation, help the candidates in developing proper skills which are
required to cope in the workplace environment. ALDI also teaches the employees proper
time management skills as they play a very important role in an organisation. The
employees get to develop all these essential skills which are not going to help them in
company, but in their outer office life too (Meredith, 2011).
With some advantages, the process has some limitations too which are described as under: Privacy of the employees: The HR management system of ALDI has all storage starting
from the health records to the marital status. ALDI should focus on maintaining proper
security and protection for the data of people at the time of recruitment. So, while the
process of recruiting, the company should ensure the fact of maintaining privacy ebcause
in various cases, some employees leak the data of new joiners which is considered as a
negative point and also considered as negative for the company. There are some
authorities in ALDI which have access to those documents or files. There maybe
someone who tries to steal the information and use that for some specific reasons. There
may be chance of data leak or privacy (Zheng,Yang and McLean, 2010).
 Cost Factors: These systems have a major weakness and that is their cost. The main place
where ALDI utilises the most of the cost is its installation, setup and then consulting.
These features make the system costlier. Remotely hosted systems are there which can
replace this high cost systems. This can give a quite variation in the both the costs of the
systems.
TASK 2
P3 Benefits of HRM practices in ALDI for employees as well as employers
ALDI follows various practices which further benefits the employees as well as
employers. The employees work and their energy results in an efficient outcome which seems
beneficial for both the employees and the employers. Benefits vary for the both. For employees,
it has different advantages and for employers, it has different. Discussing some benefits below:
For employees of ALDI -
They can develop various skills that helps the employees in as well as outside the workplace
culture (Wright and McMahan, 2011). They understand the importance of time which is the key
to the success. They realise the satisfaction after the completion of the task. In ALDI, they are
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also given some sort of increments and incentives from time to time. By these small means, they
are able to consider that their work is being appreciated and they are as well important for the
company. ALDI gives non paid leaves to the employees who are suffering from illness or any
personal issues, because of which they are not able to come in the organisation. Health insurance
of all the employees have been done in order to keep their families safe from financial loss if
some accident happens with the employee.
For employers of ALDI -
Various benefits to the employers helps in managing high risk factors at very low costs.
They work efficiently to cover all the targets and goals of ALDI (Purce, 2014). Although they
are focusing on their tasks, they often helps the employees for opting better and more suitable
ideas. The employers have increased access to all the benefits and productivity than the
employees have. Health insurance of all the employers have also been done, so that their families
can also be protected from any financial loss. They must be given all the amount of insurance.
Although, the loss of the person cannot be fulfilled, but ALDI provides the insurance amount to
the family members of the victim as a small help.
P4 Effectiveness of various HRM practices for ALDI's profit and productivity
ALDI follows various practices of HRM that helps them to gain profits as well as more
productivity. Some foundations which ALDI follows are : High Performing employees – ALDI has employees that are tremendous because they are
well aware of their roles. They leave no stone unturned to complete the goals considering
the time limitation of that as well. They are the people who actually work and help the
company in achieving the goals. Management is always there for guiding the employees
(Meredith, 2011). They provide every help, employees want and also guide them to the
best suitable decision they can opt for. The best employees of ALDI even consider the
fact that they cannot perform well without such supportive management and the
direction guided by them. Efficient management helps in setting the direction – It comes under another important
factor that has led ALDI to produce better outputs. They help the employees, guiding
them the best and with suitable options. These factors of the management are very
essential for achieving the targets. They teaches the specific direction to the employees,
so that they have to face no issues or troubles while moving towards the target.
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 Properly planned strategies – The management with the employees first focuses on
planning the proper and effective strategy for completing the target. After setting the
plan, different strategies are being applied on them. The management helps the
employees in guiding the direction, which an employee has to follow for achieving that
target. ALDI first makes a plan, then follows it properly and after that, its focus is on the
goal only, that what are the measures the company have to take for completing the task
within its particular deadline (Guest, 2011).
 Reward Policy – The management at ALDI has set a reward policy for its employees.
After completion and acceptance of a project, ALDI gives its employees some sort of
rewards, it may be incentives or increments. It also can be a half day leave or an extra day
off. ALDI celebrates its success this way. By these ways, employees also get happier that
their work is being appreciated at management's end. This helps the environment of the
workplace in becoming more healthy.
TASK 3
P5 Importance of employee relations influencing HRM decision making
Decision making
At ALDI, the decision making process between the employees and the management plays
an important role. Well interaction between the employees makes the workplace environment
healthier and happier. They also focus on the factor that if there is something which is bothering
the employees, are they suffering from any trouble, whether personal or social. The management
is always there for helping the staff (Berger, Biron and Meshoulam, 2014). It provides a well
interaction between the employees. They all discuss their ideas together. Different minds speak
different thoughts. Same is the process here.
When the employees in a team or group share their ideas, various thoughts pop outs.
ALDI does the same thing, a group of employees had a discussion in their teams or groups,
various idea's comes out of each employee (Gruma and Saks, 2011). Some are better and some
are tremendous. After discussing it all, its features, plans and strategies which are to be applied,
they come to a final conclusion and accepts the best idea that seems suitable for the goal. Being
friendly is good, but being over friendly is not. The other employee can think of one being
involved to an extent that is not required at all and it does not result in good objectives.
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Healthier and happier environment
The happier the environment is, the better employees can concentrate on their work and
can stay focused. Motivation and confidence both helps the employee in achieving the targets at
a faster rate. As there are advantages, there must be some disadvantages too. A main
disadvantage of it can be that some employees in ALDI are extraordinary interacted to the others,
to an extent that rather than focusing on work, they have more concentration on the gossips that
what other employee is doing, why it is doing etc. These lame activities can take the business a
step backward. ALDI supports interaction between the employees but does not supports
indiscipline and dishonesty. These factors can lead in termination of the employees. ALDI stays
away from such activities (CHUANG and Liao, 2010).
P6 Key elements of employee legislation and its impact on decision making process of ALDI
Employment laws constitutes various rights and duties, which an employee should be
aware of. These keep the employees safe from various issues whether it may be discrimination,
safety or security. There are specific laws which helps the employees from these different
troubles that may act as a barrier in the path of achieving the goal. At ALDI, everyone including
the employees and the management is aware of all these laws (Daley, 2012). The management of
ALDI took a step towards the employee in making them aware of all the employment laws.
Discussing some below:
1. Wages and Hours : The ACT has been prescribed by the Fair Labour Standards Act, and
it fits in the private and public employment the most. It sets the wages of the normal
routine as well as of overtime.. ALDI ensures the full utilisation of the ACT. It gives its
employees the accurate amount of pay, they deserve according to their work status.
Although ALDI does not support overtime because they think there is a life of the
employees outside the office also, but still if some employee wants to do, it provides
extra wages to them (Berger, Biron and Meshoulam, 2014).
2. Equality Act 2010 : This act states that any workforce does not support any type of
discrimination in the organisation. So does ALDI follows, they treat every employee
equally and make sure that no one is facing any sort of discrimination in the company.
Whether it may be regarding colour, salary, age or anything, it cannot be entertained in
ALDI at all. It is strictly prohibited in ALDI (CHUANG and Liao, 2010).
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3. Trade Union Act : The British trade union established the act. It may be considered as
any combination like it may be permanent as well as temporary. It helps in adjusting the
interrelations between the employers and the employees. This act was established
because of the employees that helps them in connecting with each other and that too in a
specific manner.
TASK 4
P7 Illustrating the applications of HRM practices using specific examples from ALDI
For recruitment and selection, ALDI cleared that they want the future of its employees
rewarding, they wish that they attain various opportunities in life. ALDI said that they want their
employees to be hard-working and honest, so that they can be able to take various
responsibilities of the organisation. The recruitment and selection procedure helps ALDI in this
because the right people were selected at the starting only. It wants the employees should be
proud of the organisation, they are working in (Budhwar and Debrah, 2013).
For management of performance, ALDI had developed a wide range of high quality and
proper standardised training programmes which can help the employees in learning fast the
material that is efficient for progressing in the workplace. Area manager spends much time in the
stores, thus they can keep a check on the productivity of the employees. Also provides them
support and motivation so that they can be more confident towards their work and can achieve
goals faster (Zheng,Yang and McLean,2010).
For orientation, ALDI has opted some ways by which they provides proper induction and
orientation to the employees. It helps the employees in getting the proper idea that what they
8
Illustration 2: Employee legislation
(Source : Ian, 2015)

have to do and what are their basic roles and regulations. HR professionals at ALDI help the line
managers in guiding them what they further have to guide the employees and the ways to deal
with them, providing them motivation and building their confidence. These all features has made
ALDI one of the largest retailer chain (Bloom and Van Reenen, 2011). In orientation, ALDI also
taught their employees that like rewards are a part of the employment, failures are sometimes
also.. The employees are understandable enough that failures can also occur anytime and it is a
part of the game. Dealing with them is the best option. It does not matter if sometimes ALDI
have to face troubles or failures, like rewards are there sometimes, the same way there are
failures too.
For managing the relations between the employees, ALDI focuses on the interaction level
between the employees. It tries to increase their ways of interacting so that they may be able to
know each other well. The level of communication between the co-workers matters a lot. The
management at ALDI ensures the fact that there should be done such type of activities that can
help in enhancing various skills of the employees. By these activities, all the employees get to
know each other. It further helps them stay happy because in any workplace, it is not easy to stay
quite and disconnected with people (Berger, Biron and Meshoulam, 2014). It caused
disappointment in the self of the employee. ALDI makes sure that no one seems disconnected
with the co-workers and everyone is happy and satisfied. These features of ALDI makes it so
popular and efficient, as so it is satisfying all the needs of the customers by selling the quality
products at reasonable rates.
CONCLUSION
These includes various practices of selecting the best suitable employees for an
organisation, as ALDI does is considered as proper management of human resources. It is the
responsibility of HR of ALDI to first select, then recruit and then providing them proper training
and orientation so that the employees can be able to fight with the issues that come as a barrier
towards the path of achieving the goal. These practices helps the employee of ALDI in the
overall development. They get to know about time management strategies, which are very
helpful in achieving any goal. As there is a famous saying, “It is not about having time, it is
about making time” , ALDI strictly follows this policy and this is the only methodology which
had helped it to grow very bigger and that too at a faster rate.
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REFERENCES
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of labor economics. 4. pp.1697-1767.
Budhwar, P. S. and Debrah, Y. A. eds., 2013. Human resource management in developing
countries. Routledge.
CHUANG, C. H. and Liao, H. U. I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
psychology. 63(1). pp.153-196.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management.
pp.120-125.
Gruman, J. A. and Saks, A. M., 2011. Performance management and employee
engagement. Human Resource Management Review. 21(2). pp.123-136.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail.Human Resource
Management International Digest. 19(3).
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
Zheng, W., Yang, B. and McLean, G. N., 2010. Linking organizational culture, structure,
strategy, and organizational effectiveness: Mediating role of knowledge
management. Journal of Business research. 63(7). pp.763-771.
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Ian., W. 2015. Current UK Employment Inhibiting Small Business Growth. [Online]. Available
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