Report on Human Resource Management: Analysis of ALDI's HRM Strategies

This report provides a detailed analysis of Human Resource Management (HRM) practices within ALDI, a global grocery retail chain. It examines the core functions of HRM, including recruitment, training and development, compensation, and employee relations, and their impact on achieving business objectives. The report evaluates different recruitment and selection approaches, comparing the advantages and disadvantages of internal versus external recruitment strategies. It also explores the advantages of HRM practices for both employees and employers, focusing on training, employee involvement, performance evaluation, and compensation benefits. Furthermore, the report assesses the effectiveness of HRM practices in increasing ALDI's profits and revenue, emphasizing the importance of employee-employer relationships. It concludes with a critical evaluation of HRM practices and their implications within the organizational context, including an analysis of employee relations and relevant legislation, alongside practical applications of HRM activities within ALDI.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
P.1 Functions and purposes of HRM......................................................................................1
M1 Functions of HRM to fulfil objectives of the business....................................................2
P2 Advantages and disadvantages of recruitment and selection approaches.........................3
M2 Evaluating the advantages and disadvantages of different approaches of recruitment and
selection..................................................................................................................................4
D1 Critically evaluation of the different approaches and their strength and weaknesses......4
Task 2...............................................................................................................................................4
P3 Advantages of HRM practices in ALDI to employees and employers.............................4
P4 Effectiveness of the HRM practices in order to increase ALDI profits and revenue........5
M3 Methods used in HRM practices......................................................................................6
D2 Critical evaluation of the HRM practices with implication it in organisational context..6
Task 3...............................................................................................................................................6
P5 Essentialist of employee relation which influence to the HRM decision-making............6
P6 Key elements and impact of employee legislations..........................................................7
M4 Key aspects of the employee relation in the chosen business..........................................8
Task 4...............................................................................................................................................8
P7 Applications of HRM activities. Along with the examples. ............................................8
M5 Rationale for the HRM practices in the ALDI...............................................................10
D3 Critically analysis application of HRM practices and employee relations.....................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In order to accomplish desired results and aims, human resource management consist
very important part in the business. Human resource manager assist the recruitment, training and
development, performance and salary department of an organisation (Brewster, C. and et. al.,
2016). This report is on ALDI which is a grocery retail supermarket chain. It is expanded in 18
countries consisting approximately 10,000 stores around the world. The institution was
established by two brothers Karl and Theo Albrecht. The headquarter of the mentioned company
is located at Essen, Germany (Sheehan, 2014). ALDI is the fifth largest supermarket store chain
of United Kingdom. Other market institution of ALDI includes ALDI Talk and ALDI Liquor.
The named supermarket chain has a joint venture with Diskont.
P.1 Functions and purposes of HRM
Human resource management play vital functions in the organisation is selection of
employees, training and development, compensation benefits and employee relations.
Recruitment
The mentioned grocery store is opening a new subdivision and needs more workers to run
the organisation (Kehoe and Wright, 2013). HR executive should tally the vacancies present in
the cited firm. The selection of workforce according to requirement of the corporation is the
purpose of HR manager. Then the interview process would take place. Interview process will
help the HR to select the best applicants required in the grocery institution (Armstrong, 2014).
Training and Development
The objective of HR is to overlook the training and development programs conducted in
the stores. Training sessions should include parts that can enhance the talent and ethnics of staff.
Screening and mentoring of candidates is responsibility which comes under the work of HR
manager (Shields, Brown and Plimmer, 2015). Training session will provide a hierarchy of the
objectives and goals designed for the success of the store to the applicants that will clear their
view of working within the organisation.
Health and Safety of employment
It is HR manager duty to look out a sufficient safety measures provided to the staff
members by the organisation (Bamberger, Biron and Meshoulam, 2014). Health services and
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facilities must be provided to the workers so that they feel protective within the atmosphere of
the cited corporation.
Involvement and Participation of Employees
It is HRM duty to involve the employees in decision-making of future plans of ALDI. HR
manager should encourage the workers of the company to participate in the programs that are
conducted in the institution (Glendon, Clarke and McKenna, 2016). This motivation will develop
the skills and aptitude of the employees which will stand helpful for the achievement of
objectives of the stated firm.
Employee relation
The organisation must maintain a positive relationship with staff. Responsibility of HR is
to evaluate the process conducted within the company in order to built-up authorities-worker
relationship (Harmon, 2015). Strong relationship between the management and employment will
be considered productive for the organisation.
Job analysis
Evaluating the workforce requirement in the firm regarding qualification, ethnics
qualities, experiences and skills is the major function of human resource executive. Distribution
of the tasks, functions and responsibilities into a particular workforce category is aim of
appointing a HR into a selected grocery corporation (Seuring and Gold, 2013).
Compensation benefits
The workers has to introduced about the salary structure provided to them by given
business entity. Introduction about all the compensation benefits given to employees in the core
objective of human resource management (Locke and Latham, 2013).
M1 Functions of HRM to fulfil objectives of the business
It is a core responsibility of human resource management to provide well skilled and
qualified employees which are capable to achieve objectives of the stated institution. The
practices adopted by HRM are executed correctly in a manner to provide a right candidates to the
grocery store (Decramer, Smolders and Vanderstraeten, 2013). This process promote the
mentioned company to the next level of success.
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P2 Advantages and disadvantages of recruitment and selection approaches
Internal Recruitment
Internal recruitment is a technique in which the employment recruitment in executed
inside the business.
Strength
One of the strength of internal recruitment is smart and quick decision. The management
of given business generally graduate the position of the workers as a reward and increase the
effectiveness of the ALDI (Beier and Kanfer, 2010). Presented organisation should transfer the
staff members from one department to another for their skill development as well to fill their
vacancies. Cost and time reduction in training and introduction is also one of the benefit of
internal selection. Internal selection within the referred company can accumulate a keen and
dedicated loyalty with the group.
Weakness
When the internal employment is preferred for the recruitment, the number of candidates
will be limited. New skilled and developed worker cannot be gained in the institution. After
upgrading the employee to higher position, the previous post of that same member will be vacant
(Cerasoli, Nicklin and Ford, 2014). It is difficult for the mentioned management to choose the
appropriate applicant for appropriate position when the selection of employee is done internally.
Inner enrolment do not provide advanced and progressive employment in the specified
organisation. It limits a creative thinking and ideas which can be quiet harmful for the success of
above corporation.
External Recruitment
External recruitment is the process which provide outer employment to the organisation.
Strength
A strong benefit of external selection of workforce is advanced experience and enlarged
employment in the quoted institution. New selection of staff will generate new challenges to the
present employee working within the ALDI. Outside recruitment will fill the vacant posts in the
company. ALDI will get new innovative ideas from new candidates which will provide new
possibilities of success of the store (Brewster, C. and et. al., 2016). The given organisation would
get wider range of candidates from outside which can be more suitable for vacant places
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available in the store as compared to internal members. External candidates will work with more
dedication and more fascination.
Weakness
Appointing new employees from outside will be a long procedure. It will be more
extravagant (Jehanzeb and Bashir, 2013). The advertisement designed for new applicants would
be more costly. Interviews constructed for the selection of new workers will waste more cost,
time and manpower of the human resource management. Sometimes external recruitment may
not be successful in order to bring a best labourer within the mentioned grocery firm.
M2 Evaluating the advantages and disadvantages of different approaches of recruitment and
selection
Internal and external approaches are adopted in the cited business entity to select
appropriate applicant for right position. Advantages of inner recruitment is that it saves the cost
and time and provide a devoting and passionate to this store. On the other hands, external
recruitment gives new blood with innovative ideas which is considered to be beneficial for the
success of the entity (Obisi, 2011).
D1 Critically evaluation of the different approaches and their strength and weaknesses
In the selected business there are several activities applying with recruitment and
selection that helps to enhance capabilities of workers. With the help of internal recruitment,
reduces cost and time of the company but don't provide new candidates in it (Sheehan, 2014).
New candidates are selected by outside selection but it increases expenditures spends on
advertisement and interview session.
Task 2
P3 Advantages of HRM practices in ALDI to employees and employers
HRM practices consist important role in the success of business and operations. In this
aspect, ALDI has advantages to create systematic work performance. This practice is constructed
to motivate, embrace and fascinate the employee in order to ensure the success of the stated
company (Kehoe and Wright, 2013). The HRM practices which are beneficial for quoted
supermarket and employee.
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Training benefits
Training is a process that enhance the skills and knowledge of the workers and helps
them to improve their attitude and values. This practice grants a positive result in achieving the
objectives of the mentioned store (Armstrong, 2014).
Employee Involvement and Participation
Involvement and participation of employment in decision-making motivates them in
order to give 100 percent efforts in their work. This involvement and participation of workers
will engage them in the organisation which is beneficial for success of ALDI (Shields, Brown
and Plimmer, 2015).
Performance Evaluation
Performance analysis of the employee in their field is essential responsibility of HR
officer. This process of performance appraisal is helpful in rising worker's self-confidence and
ambition, which successively increase firm's achievement.
Salary Benefits
Salary benefits is a process to accommodate incentives and rewards to workers for the
extra efforts they gave in order to success this company (Bamberger, Biron and Meshoulam,
2014). Performance-based compensation positively affects peasant performance which
effectively proves beneficial for the growth of the quoted grocery corporation.
Employee-Employer Relation
Management and staff relationship is also an important aspect for the growth of this
mentioned organisation. A positive relation between authorities and workers encourage the
employees which directly results into the success of ALDI (Ford, 2014).
P4 Effectiveness of the HRM practices in order to increase ALDI profits and revenue
HRM practices may stand profitable and productive for referred company if the
management maintain a healthy relation with the staff members. This manner of working will
inspire the workers in order to perform well within the organisation. In respect to determines the
creativity, HRM techniques consist different roles such as facilities, involving the employees in
decision-making will encourage and satisfy the peasants (Glendon,Clarke and McKenna, 2016).
This satisfaction granted by management to the employee will engage and make them to work
hard in this company which will significantly raise-up profit and productivity of the mentioned
business entity.
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Compensation benefits like satisfying salary, wages, incentives and commissions
provided to the members by the organisation helps to retain the employees in the organisation.
This process keeps the workers constantly loyal and passionate towards their work. The more
loyal and passionate labourer towards its work will promote more output to the grocery store.
Performance appraisal will also support the productiveness of cited organisation. Transparent
performance appraisal would help the staff to improve their skills for more accuracy in their
work. Health care facilities provided to the workers by this organisation makes them feel secured
(Harmon, 2015).
All this practices performed by the human resource management provides a feeling of
satisfaction to its employment. The manner of justice and satisfaction of the management
towards the workforce returns in the form of extra profit, productivity and success of ALDI.
M3 Methods used in HRM practices
ALDI is following different HRM practices in order to success the organisation. Training
and development campaigns, compensation benefits like reward, incentives and satisfied salary,
positive employee-employer relationship, health care facilities, involvement of workers in
strategies are promoting a good environment in this organisation that is proving profitable and
effective to achieve goals of quoted corporation (Seuring and Gold, 2013).
D2 Critical evaluation of the HRM practices with implication it in organisational context
Training programs conducted in ALDI are designed in a way that promote the knowledge
of the workers to excellent. Salary benefits are provided to the members by the management to
fulfil their needs and interests (Locke and Latham, 2013). Performance appraisal of every
peasant is evaluated on the basis of their work which encourage them to perform better in context
of success of stated organisation.
Task 3
P5 Essentialist of employee relation which influence to the HRM decision-making
In respect to accomplish desired goals, employee relations consist important part in
decision-making of HRM because HR manager is not capable to take all the decision alone. HR
require support of the worker to guide and suggest him in decision-making. Positive relationship
between workers and authorities increases productivity in the grocery stores (Locke and Latham,
2013). It is necessary to maintain a healthy relationship with employees because it makes easy
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for the institution as well as HRM to accomplish the objectives together. The quoted business
entity will create a confident and positive environment within the workplace by maintaining a
good relationship with peasants.
The workers in the company feels motivated when the important decisions are discussed
with them. The satisfaction among workers and authorities create a family like atmosphere in the
stated corporation (Decramer, Smolders and Vanderstraeten, 2013). The employees feels safe
and confident by working within the company. This healthy relationships with laborers delivers
the best outcome of goals in the mentioned grocery supermarket. It built up a trustworthy
ambiance in the organization. Employees avoid meaningless disputes and fights and focus on the
work which results in better performance of workers as well as ALDI.
P6 Key elements and impact of employee legislations.
Employees are considered as fundamental element of the organisation. To provide them
effective work environment and benefits various laws and policies are imposed by the
governments (Beier and Kanfer, 2010). It helps in reducing exploitation of workers and provide
various advantages also. ALDI also consider various employees legislation into their
organisation. It helps in maintaining effectiveness of the workplace. Some of the laws are
mentioned below that are considered by ALDI:
 Health and safety act (1974): This is considered as one of the biggest law for the rights
of employees. It was implemented in the year 1974 by the English Legal system of UK.
According to this act, employees of the organisation will be provided with medical and
health benefits. Along with this various security will be also provided at the work place.
Under this act company have to provide compensation is case of any accident takes place
at the work place. The claim should be provided in 24 hour of the claim.
 Equality act (2010): Through this law employees are able to get equal opportunities at
work places. It helps in preventing them from any kind of discrimination. This was
implemented by the parliament of UK, in 2010 (Jehanzeb and Bashir, 2013). According
to the this employee legislation worker of organisation should be provided equality
opportunities and preference in task.
 Working time (1998): this is considered as one of the most important of government of
UK in the favor of employees. It was implemented in year 1998, in order to stop workers
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exploitation and tortures at work place. Under this law employees have to work for a
fixed duration of time, in case if extra work is done by them compensations should be in
the form of money and holidays.
M4 Key aspects of the employee relation in the chosen business
Employment relations in the quoted company affects HRM decisions positively. HRM
always concentrate on the benefits of workers as well as organisation whenever it designs
strategies. HRM should also think about the employment laws before making any decisions
(Obisi, 2011). HR should always carry all the employees with it in order to achieve the
objectives. Human resource manager should fix a working time and concentrate on health and
safety measures of the peasant. Every member of ALDI is equally treated. No discrimination of
any caste, age, religion or gender is followed in this business entity.
Task 4
P7 Applications of HRM activities. Along with the examples.
The HRM are provided with various responsibilities. In order to effectively complete
them various activities are practices are considered by them (Obisi, 2011). The HRM department
of ALDI also plays various roles, such as selecting employees, providing effective working
environment, payment and compensations, etc. Some of them are following:
 Job specifications:
ALDI
Finance Manager Job specifications
Hurry up!!!
 Organisation: ALDI is one of the leading multinational company of UK. They are
providing their services across the world.
 Locations: London, UK.
 Department: Finance and Accounting department
 Position: Finance manager
 Qualifications: BE in finance or accounting, business administrator in finance or
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accounting are the minimum qualification.
 Experience: Min. 3 to 5 years.
 Characteristics: Effective knowledge of commercial and business activities, good
communication, fast problem solving approach and able to influence others.
 Interview: This is considered as one of the important step of the employment selection
step. With the help of this step company is able to analyse talent and ability of candidates.
On the basis of their performance selection of candidates takes place (Cerasoli, Nicklin
and Ford, 2014). In this process various stages are considered, such as mental ability,
reading and writing. Some time computer skills are also tested by the interviewer.
Job letter/ offer:
Date:
Name:
Address:
Address:
Dear
ALDI is glad to inform to appoint as finance manager of the company. Your capabilities and
skills will definitely contributes into the development and growth of company. The starting date
of your work will be 24th August. The offered salary is 25XX. Looking forward to welcome
you.
Sincerely,
Name
Director, HRM
ALDI company
Signature
On the basis of above report activities and responsibilities of HRM are significant for the
growth and development of the company. With the help of all these activities effectiveness of the
work is maintained into the organisation.
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M5 Rationale for the HRM practices in the ALDI
ALDI is going to open its new division and is appointed a HRM for recruitment and
handle other strategies of this organisation. HRM practices are positively applied within this
corporation in manner that ease the supermarket to achieve its goals (Seuring and Gold, 2013).
Training and development, salary benefits, equality among staff members, relationships, are
being adopted by stated business entity which is proving beneficial for its success.
D3 Critically analysis application of HRM practices and employee relations
Employee relation and HRM techniques influence the decisions of mentioned
organisation because it is mandatory for HR manager to involve the workers in the strategies
(Locke and Latham, 2013). Different practices and approaches are adopted by HR for the
achievement of the objectives. It helps positively to make decisions in ALDI
CONCLUSION
The above report has been concluded that the application of human resource practices in
ALDI is compulsory to imply. Employer and employee interactions in important strategies is
must to be applied in order to success of this organisation. Positive and secure atmosphere should
be created in the grocery company so that employee feels safe and free at workplace. ALDI
should follow all the employment laws constructed by the government. The mentioned business
entity is bounded with employment laws. The organisation must treat all the workers in equal
manner. Discrimination of any caste, race, religion, age or gender must be strictly prohibited
within the stated management.
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