HRM Report on ALDI: Workforce Planning, Practices and Benefits

This report delves into the Human Resource Management (HRM) practices of the grocery retailer ALDI, focusing on workforce planning, recruitment, and employee relations. It examines the purpose and functions of HRM, including recruitment and selection strategies, and explores the strengths and weaknesses of internal, external, and third-party recruitment approaches. The report further analyzes the benefits of HRM practices for both employees and employers, emphasizing training, employee relations, and compensation. The evaluation of personnel management practices is also discussed, considering the impact on company profit and productivity. Additionally, the report addresses the importance of employee relations, employment legislation, and the application of HRM practices in a work-related context. This report provides a comprehensive overview of HRM within the context of ALDI's operations, offering valuable insights into effective personnel management strategies.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of HRM applied to workforce planning...........................................1
P2. Strength and weakness of approaches of recruitment and selection.....................................2
M1...............................................................................................................................................3
M2 ..............................................................................................................................................4
D1................................................................................................................................................4
TASK 2............................................................................................................................................4
P3. Benefits of HRM practices for employees and employer.....................................................4
P4. Evaluation of personnel management practices to raise company profit and productivity. .5
M3 ..............................................................................................................................................6
D2 ...............................................................................................................................................6
TASK 3............................................................................................................................................6
P5. Importance of employee relations and its impact on decision making process....................6
P6. Key elements of employment legislation and its effect on decision procedure....................7
M4 ..............................................................................................................................................8
D3 ...............................................................................................................................................8
TASK 4............................................................................................................................................9
P7. Application of HRM practices in work related context........................................................9
M5 ..............................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Human resource management is very helpful in selecting such type of individual in an
organisation who help them to attain all of their goals and objectives in a significant manner. It
includes various number of roles and responsibilities which perform by a HR manager. This
assist them in selecting those person who have specialised knowledge and skills of performing
different number of activities in a minimum time period. Basically this report consist of one of
the famous grocery retailers named as ALDI having branches over the seas by attracting minds
of millions of customers (Hendry, 2012). In addition, this report is going to describe the effective
role of HR department in selecting or recruiting deserving candidates to attain their personal and
professional targets in an effective manner. This report is going to covers basic purpose and
scope of personnel management by considering micro and macro environmental factors which is
very helpful or useful in decision making process.
TASK 1
P1. Purpose and functions of HRM applied to workforce planning
The term workforce planning is a set of process which an enterprise may execute to
prepare most effective and useful team to maximize their profits by achieving long term success
as soon as possible. In fact ALDI is an organization who believes in establishing their business
for longer period by expanding it at international level with the help of advanced technology and
unique ideas (Armstrong, 2014). Therefore to survive in a competitive market a cited company
needs to plan their policies and strategies to perform all the major functions of HR department by
understanding their scope and purpose.
Purpose - One of the most indispensable purpose of an enterprise is to hire new and
eligible individual by adopting effective strategies for selecting candidates. Apart from this, they
are responsible for allocating available resources in a proper manner to produce maximum goods
and provide necessary services to their clients. In other words it’s all about motivating
employees towards their personal goals by enhancing their own knowledge and skills with the
help of specialised and skilled persons (Taylor, 2014).
On contrary to this HRM also perform some of the basic functions to establish their
business smoothly and effectively.
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 Recruitment and selection- Picking up of deserving and talented person on the basis of
their knowledge or skills to fill the vacant position of an enterprise.
 Orientation- It is program through which they can introduce newly appointed
employees so that they get familiar with new environment as well as creates a friendly
surroundings.
 Staffing – Assigning of right person at a right job to perform their basic roles and
responsibility towards cited retail stores.
 Management of employee relations- According to cited company employees are
consider as pillars of an organization because all the activities and task are regulated
and controlled by them only. It is very indispensable to maintain a peaceful relations
with employees by creating a mutual understanding in between higher authority and
lower level (Boxall, 2011).
Apart from this HRM workforce planning requires accurate data and information to
perform all essential functions to achieve purpose of personnel management.
P2. Strength and weakness of approaches of recruitment and selection
Recruitment is a set of activity and procedure which is used by every multinational
companies to legally appoint minimum number of qualified individuals at a right location and
time. After that selection is an appropriate process to choose best alternatives from various
employees to fill vacancy of their organization. Basically recruitment and selection is
implemented or executed with the help of different approaches by understanding their
advantages and disadvantages (Purcell, 2011).
There are three types of approaches has been used by cited retail company to recruit
eligible individuals and that are- Internal approach- A cited organization may use this technique to select employees
within enterprise by promoting current workers to fill particular position. In fact this
method is done internally without consultation of outer world.
Strength Weakness
Fastest way of assigning qualified and skilled
candidates.
Chances of disputes and conflicts due to
jealousy in between various employees.
Newly appointed employees are familiar with Absence of new and innovative ideas which is
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business and knows how it works or operates. affect the organization in different manner. External approach – According to this approach an enterprise can appoint employees
with the help of outer world as well as other party instead of existing members. It means
HR department select candidates without consultation of any workers or family members
(Daley, 2012).
Strength Weakness
Occurrence of new and creative views which is
very helpful and useful for betterment of
company.
It will take more and more time which means it
is a very long process.
It is very beneficial for company to select
deserving and skilled or knowledgeable
employees due to presence of larger pool.
Requires large amount of capital due to which
maximum fund is invested.
 Third party approach – Recruitment of employees by taking help from any agency or
long distance relation. In fact in this approach there is a presence of mediator in between
both recruiter and individuals (Guest, 2011).
Strength Weakness
Presence of experience and specialised
persons.
Chances of misunderstanding or
misrepresentation due to presence of third
party.
Emergence of innovative ideas. Chances of fraudulent activities.
These above shows impressive approaches of appointing best candidates.
M1
All the effective function of human resource management is very useful in enhancing the
skills and talents of their employees by fulfilling goals and objectives of a cited company. In
other words staffing, controlling, regulating and organizing is very helpful and plays a very
eminent role in attaining personal and professional targets as soon as possible. Human resource
management plays a very vital role in attaining goals of an organization by accomplishing
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assigned task and activities in an appropriate manner. They need to appoint skilled or
experienced labour so that they can able to face instant business risk or challenges in effective
way without taking help from others. Apart from this major functions which is performed by HR
department is assigning right job to a right person according to their specialisation and skills in
order to attain their personal and professional objectives.
M2
After appointing qualified candidates a cited organization need to evaluate overall
recruitment process to get aware about effectiveness and consequence of a recruitment process.
Basically it helps in understanding their usefulness as well as acquire feedback from employees
about their satisfaction towards specific job. In the above task proper explanation of strength and
drawbacks of various approaches are highlighted which is consider by HR department of
refereed association for hiring best suitable alternatives. Basically main useful tools for
recruiting process are ; internal, external and third party approach. These three are appropriate
method of selecting talented and skilled labours.
D1
According to Jiang (2012) all the three approaches of a recruitment and selection
procedure is very useful and impressive as well as supportive in selection experience persons
which comes with new ideas to enhance the product quality of a company. For example sales
manager are selected to promote marketing activities to attract millions of customers. According
to Wright, 2011external approach is very appropriate for hiring best alternatives from large
number of pool because it remove chances of conflicts as well as maintain the peaceful
environment of an enterprise. On contrary to this McMahan, 2011 said that third part framework
act as a very appropriate tool of hiring best candidates because it hired experienced, talented and
knowledgable employees which is a key to success for enterprise. Along with this it will
safeguard the training and development cost of newly appointed employees.
TASK 2
P3. Benefits of HRM practices for employees and employer
The main motive of a personnel management is to protect labours from exploitation and
dangerous policies which may harm their rights. HRM practices are very much beneficial for
employees and employer both in every manner by implementing various impressive strategies
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and schemes. The major role of HR department is to manage overall human resource by
providing essential and necessary benefits to them so that they can perform their task and
activities efficiently (Meredith Belbin, 2011). A cited enterprise executed attractive policies for
employees to improve their skills and sense of humour. These are- Implementation of training and development programmes- Specialised and skilled
persons are appointed by enterprise to groom their employees so that they can enhance
their knowledge and skills to perform their functions in an effective manner. Creation of friendly surrounding – Execution of friendly environment so that an
employees may co-operate with each other to run attain their personal goals. Resolving disputes – HR department is liable to resolve existing conflicts in between
higher authority or lower level to maintain a peaceful environment which is very essential
for company betterment (Huselid, 2011).
 Information resource – According to this a cited retail enterprise is liable to provide
accurate data and information so that they get updated about their rights and roles
towards company.
Benefits for employer are- Remuneration and compensation – Employer of a company must appreciate on their
achievement and success by offering compensation or bonus which act as a motivational
tools for them. Health and safety – Security is a first priority for every employer because everyone
knows that “health is wealth” that's why it is very mandatory to execute strategy to
safeguarding the health of an employer and employees both.
 Working hours- It shows the minimum working hours which is necessary is only
applicable at a workplace to maintain the decorum of a company as well as create healthy
environment.
Example:- An organization is going to introduce new plant for gaining maximum revenue
and encourage employees towards their professional job role by showing them bonuses,
compensation and appreciation on extra work. Therefore, few employees perform extra work by
increasing their working hours like 10-12 to gain appraisal from higher authority of extra
benefits as per company terms and conditions. Along with this, employer also acquire other
advantages by enhancing their entire personality.
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Apart from this employer and employees both acquire very much profit and benefit from
HR department because they are act as an indispensable resource for company (Becker, 2011).
P4. Evaluation of personnel management practices to raise company profit and productivity
Human resource is one of the essential and indispensable tool because all the major
functions are performed by them only as well as other resources like equipment, machinery, land
and building are regulated or controlled by the HR department. One of the major motives of
management is to enforce marketing activities to promote their products by raising their
productivity so that they can maximize their profit and minimize losses. Basically evaluation
process is only possible after acquiring feedback from employees to conduct necessary
modification.
Apart from this a cited enterprise adopted various effective theories and techniques to
hedge their business risk and ready to face challenges which might be arise in future (Wright,
2011). There are many more reason behind evaluation of HR practices for example-
 Get aware about hidden problems so that they can remove that obstacles to implement
success policies free from any mistakes or errors.
 Implement necessary modification and changes to raise their productivity to fulfil the
demand of desired customers.
 Acquire accurate data and information related to profit maximization.
 Describe outcomes and consequences of a applied strategies and policies.
In additional ALDI wants to expand their existing business in all over the world by
establishing their branches at international level with the help of advantageous schemes which
may raise the productivity of a company. On contrary to this HR managers also try to modify
their overall plans by acquiring useful information and evidences as well as motivate their
workers with implementing motivational theories. At last evaluation of personnel practices is
very much essential and useful for ALDI because it act as impressive scheme of maximizing
profit by minimizing their losses with the help of specialised and skilled persons (McMahan,
2011).
M3
HRM practices of ALDI has adopted various schemes and methods to provide benefits to
their employees and employer by satisfying their needs and desires for example-
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 Bonus,
 Remuneration and compensation,
 Safety and security.
Apart from this employees always want extra benefits other than cash because major
activities are controlled and regulate by them only. Number of HRM practices are available
which is used by HR department of an enterprise for enhancing talents or skills of different
employees. Few examples of HRM practices which might be used by enterprise are mentioned
below:-
 Job rotation in which job role of employees changes for experiencing something new and
different.
 Conduct training and development sessions for enhancing performance of employees for
further improvement.
D2
According to Purce (2014) personnel practices are used by enterprise to increase their
productivity to earn maximum profit by minimizing their losses with the help of effective plans
and strategies. Apart from this they need to study current market size and analyse market
situation to make their own policy.
TASK 3
P5. Importance of employee relations and its impact on decision making process
Peaceful and co-operative relations in between workers act as a useful tool in completing
particular target and objectives of a company in a minimum time period (CHUANG, 2010).
Basically employee relations is very much important because of some basic reasons and these
are-
 It act as key to success and maximum chances of positive outcomes. Thus, if employees
are get succeeded in maintaining their relations with their staff members then they may
help each other while accomplishing job task and activities.
 Helpful in solving major problems as well as remove drastic obstacles. If all the members
are coordinating between each other then they come to know about the methods by which
all of them succeeded in resolving barriers.
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 Builds a strong relationship which is beneficial for company future. Mutual
understanding between employees and supervisors helps in maintaining positive
environment of an enterprise which resulted in attainment of goals in a minimum
duration.
 Create a friendly and healthy surroundings which motivate employees towards their
personal goals and objectives.
 Absence of conflicts or any disputes. Healthy relations or contacts between employees is
a result of peaceful connection which resulted in minimization of contentions.
 Improvement in working conditions of an enterprise.
 Maximization of profit in a minimum duration. Togetherness is a greater power by which
employees of an enterprise can easily attain their personal and professional objectives.
 Utilisation of all the resources in an effective manner.
Apart from this positive or negative employee relationship have a greater impact on
decision making process due to their broad concept and complex nature (Liao, 2010). HR
department are liable for overall decision in different manner by considering relevant facts and
figures which plays a very vital role in decision process. Basically employees also need to
express their opinions or share views because all other resources are handled and regulated by
them only as well as increase in productivity is also done by workers. In additional mutual
understanding in between different levels of organization is mandatory to complete overall task
and activities as soon as possible with the help of effective techniques and methods.
On contrary to this, whole company is interdependent with each other which requires
roles of every single member of a cited enterprise while decision making process. At last a cited
enterprise need to acquire useful information and evidences which is very helpful in decision
making process. Instead of all this peaceful relations in between employees also plays a very
eminent role (Bloom, 2011).
P6. Key elements of employment legislation and its effect on decision procedure
Legal authority enacted many more laws, norms, beliefs and rules which must be
consider while decisions making process and all the terms and conditions will also fulfilled. In
fact every state has its own employment law which was amended by their state government on
which whole industries run their business by considering essential laws and amendments (Van
Reenen, 2011). Before establishing ALDI, entrepreneur of a company fulfil indispensable terms
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and conditions of legal authority to acquire license of conducting business activities. Therefore
employment law was implemented or executed by central or state government to protect
employees from getting exploited.
Some of the useful employment laws are- Equality pay act 1970- According to this law a cited organization need to pay equally to
every member working in a company without discriminating on the basis of gender,
caste, religion, colour, community and language etc. Sex discrimination act – This act focussed only on removal of inequality occurred in a
company in between male and female which must be eliminated. The main motive of this
act is to treat employees on the basis of their skilled and talent.
 Disability discrimination act – State government have implemented laws for disable
person to protect them from exploitation and dangerous world. According to this act an
organization need to treat equally to their disable employees.
Apart from this an organization need to adopt various effective laws and order to run
their business in a smooth manner by considering internal and external factors. In other words
legislation plays a very eminent role in establishing norms due to which overall market conduct
business activities in a similar manner (Bloom, 2011). At last advisory bodies act as a head of a
service industries which are liable to implement sections to create an equality in between
employees and existing companies. In additional laws and norms act as a relevant tool in
decision making process because overall decision are taken while considering essential facts and
figures which plays a very vital role in this procedure.
M4
Mutual understanding in between employees and higher authority is very much
indispensable to create a friendly environment which is very helpful in attaining goals in a
minimum time period. In other words legal authority also enacted major laws, rules and
regulation to protect employees from exploitation. Apart from this legal authorities has
implemented many more laws, norms and beliefs to create an environment free from any
inequality.
D3
According to Van Reenen (2011) friendly relations of employees with higher authority
have a greater impact on a decision making process due to their roles and responsibility behind
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