Comprehensive Analysis of Human Resource Management at ALDI UK

This report provides a comprehensive overview of Human Resource Management (HRM) practices at ALDI, a major retail company in the UK. It begins with an introduction to HRM, outlining its core functions such as recruitment, selection, training, and development, emphasizing their role in enhancing employee productivity and retaining talent. The report then analyzes ALDI's HRM functions, discussing the purpose of HRM and detailing managerial functions like planning, organizing, controlling, and directing. It explores different approaches to recruitment and selection, comparing internal and external sources, and evaluating their strengths and weaknesses. Furthermore, the report examines the benefits of various HRM practices, including training, development, and creating a flexible workplace. It assesses the effectiveness of these practices in boosting organizational productivity and profits, covering strategic development, compensation, safety, and liability aspects. The report highlights how HRM strategies contribute to ALDI's competitive advantage and overall business success, providing valuable insights into the practical application of HRM principles within a real-world business context.

HUMAN RESOURCE
MANAGEMENT

INTRODUCTION
Human resource management is an activity by which employees are managed in an
effective manner. There are various processes like recruitment, selection, training, development,
placement, induction, motivation, compensation benefits, etc. that come under HRM. HR
department of company is liable to increase the level of productivity of employees. Along with
this, HRM practices are acquired to attain and retain best talent in business organisation (Wright
and McMahan, 2011). ALDI is the chosen organisation in present report which is one of the
largest sellers of retail products and services in the UK market. The report describes about
various functions of human resource management. In addition to this, various HRM practices are
discussed in this report. The advantages and disadvantages of different recruitment and selection
approaches are also described. Apart from that, key elements of employment legislation and their
impact on HRM decision making is also studied here.
TASK 1
P1. Purpose and the functions of HRM
In an organisation there are different functions which are performed by the human
resource management. They ensure that continuity of work is maintained so that targets are
achieved. The basic and most important function performed by HRM is to carry out the
recruitment and selection process which has to be carried out with maximum efficiency. The
purpose and function of HRM are discussed in detail below which makes it more significant that
it is an crucial body of the refereed enterprise.
Purpose of HRM: -
 The prime role of HR manager is to find talented people and make them valuable assets
for company by providing proper training and development assistance.
 HR manager is also liable to make HR practices for optimum utilisation of human
resources in company.
 HRM team develop a business and make it able to achieve competitive advantage over
others in the market.
There are given various managerial functions of human resource management:- Planning – This function plays a vital role in setting goals and objectives of company.
The strategies and procedures are laid down to achieve these aim and targets within

stipulated tine period effectually. The first thing that is involved in planning is to predict
about vacancies, to check the job requirements and decide the recruitment sources.
Planning is a pre-determined course of action. It also involves personnel programmes
which will contribute in accomplishing the organisational goals and targets. Organising – This role of HRM consists to an end. It is the responsibility of HR manager
to manage overall working activities and operations. Organising also liable in order to
establish cooperation and cooperation among employees as they can work together for a
particular aim or objective. It is allocated different functions to various people; which
relates with delegate authority according to their duties which are assigned to them. Controlling – The controlling function is related with an end of an activity and again
prompts for planning. Controlling involves checking, comparing and verifying the actual
plans and identify the skills of employees as they are able to capable achieve company's
target (Weber and Fried, 2011). In ALDI, HR manager is responsible to audit training
and development programmes by analysing labour turnover records, directing morale
surveys. etc.
 Directing – In this function of HRM, employees are motivated to achieve the goals and
objectives. It is a very big challenge for the HR manager to find out capabilities of people
and guide them accordingly. Along with this, direction or motivation is a continuous
process because it is essential for each and every level of company.
Another main functions of HRM are described as under: -
Recruitment and selection – It is the foremost important function of human resource
management. In recruitment and selection, HR professional plays a crucial role by identifying
most appropriate and best candidate who suits organisational environment,
Training and development – It is the most important function of HRM. The manager needs o
regularly organise training and development assistance in order to gain higher productivity as
well as competitive advantage from target market. Training sessions would be also accessible in
boost up employees' skills and knowledge.

Ensuring Legal Compliance – It refers that labour and tax law is a vital part of ensuring the
organization's continued existence. The government has regulated certain laws and
legislations regarding the working hours of employees,, required break times, tax
allowances, minimum wage amounts, working hours, and effective policies on
discrimination.
P2. Strengths and weaknesses of different approaches to recruitment and selection
Recruitment and selection are the two main approaches of human resource management
which has to be carried out with maximum care. Selection panel of Aldi has to ensure that they
do proper planning before selecting the mode of recruitment so that the process of selection do
no go in vain and also productivity of the organisation is raised. Recruitment is the process
which can be defined as searching pool of potential candidates with desired skills, knowledge
and experience. It allows a company to find out the most appropriate person in order to fulfil
vacant position of business organisation. Acquiring the best candidates or employees helps ALDI
to achieve competitive advantage whereas unplanned or unappropriated recruitment and
selection gives birth to interpersonal difficulties, enormous disruption, it reduces productivity
and interruption to operations as well as customer services of the company. Apart from this,
selection can be defined as the process in which managers choose the best one person among all
other alternatives for their business organisation Along with this, the main purpose of selection
is to ensure that right person is hired for performing roles and responsibilities effectively.
Different approaches of recruitment and selection that are available with the selection panel of
Aldi are as follows: -
Internal sources – Internal resources are related with finding new employees within the
business organisation. Internal sources of recruitment helps managers as they can find out well
skilled people among business organisation. Along with this, in ADLI limited, whenever a
vacancy is arises; it is given to those workers who is already on pay roll. There are some
methods of internal sources, such are as follow: - promotion, former employees, retirement,
internal advertisement and transfer. In cited company, promotion can be used as motivational
technique for those employee who are working hard. It results in enrichment in position, pay,
authority and responsibility. Whereas transfer concerns with when employees are transfer from
one department to another in company and may be one place to other.
Advantages of internal sources -

 Cost and time saving
 Helps to motivate existing employees
 Builds loyalty among staff members towards business organisation It is an easy and reliable process
Disadvantages -
 It may lead to favouritism
 Possible morale problems of those who are not promoted
 Need for management development programmes
External sources – There are many business organisations which have aligned with
external agencies in order to find suitable candidates for fulfilling higher position when extant
employees are not suitable. In addition, more persons are required when extension are
undertaken. Methods of external sources are as follow: - advertisement, school, colleges,
universities, employment exchange, factory gates, casual callers etc. Advertisement is used for
skilled workers, clerical and managerial profile. ALDI limited also gives advertise in
newspapers, website, job portals etc. in order to attract a large number of applicants.
Advantages of External sources: -
 Availability of suitable person and brings new ideas
 Frugal for companies
 New talents get the opportunity
 Managers can find an appropriate and suitable person for a particular profile
Disadvantages: -
 Longer adjustment time
 External agencies are charged too much for various positions.
 May cause morale problems and issues for internal employees
TASK 2
P3. Benefits of different HRM practices
Managers of business organisations are using various human resource practices in order
to increase the level of productivity and performance. The given below are some benefits of
HRM practices such as:

 Training and development – In ALDI, HRM practices are helpful in providing training
and development assistance to employees so that they can perform well at workplace.
Along with this, training and development helps employees to improve their skills,
technologies and experience. Through the same, employees become a valuable asset for
company and capable to achieve goals and objectives of business organisation. There are
two types of training i.e. on the job and off the job. On the job training methods involve
mentoring, coaching, understudy, job rotation, etc. Whereas, on the other hand, off the
job method refers to provide training to employees after working hours which involve
lectures, conferences, and vestibule training (Purce, 2014). Developing and motivating employees – HRM practices are also helpful in motivating
and encouraging employees by implementing the reward system. In ALDI, if senior
managers wants to increase the performance of employees so that they have to provide
them training and development assistance. For this purpose, HR manager have to hire a
person who is capable to manage a group of person and persuade them to achieve goals
and objectives of company. Along with this, such practices are responsible to satisfy
employees and develop them so that they can contribute in company's intellectual assets.
Skills and knowledge of staff members can enhance competitive advantage for the firm. Building a flexible workplace – The last advantage of HRM practices is that it builds an
adaptable and flexible working environment for workers. It gives the suitability of
shifting demographics at workplace. In the UK, mostly people want to work according to
their preferences. With this, business organisation can easily retain talented people in
company for longer span of time.
 Positive working environment – It is the duty of a successful business organisation to
create a positive working environment. HRM practices are used in order to implement
effective communication in company. With this, employees become able to share their
issues and problems with managers effectually . It can be said that effective
communication improves personal as well as professional relationships in between
employers and workers.
P4. Effectiveness of different HRM practices for raising organisational productivity and profits

There are given below some HRM practices and their defectiveness in business organisation, are
as follow: -
HRM practices Effectiveness
Strategic development Innovation of various strategies and policies is also an important role of
HRM practices. HR department of ALDI is responsible to improve the
bottom line as per their qualities, skills and competencies. Along with
this, business strategies are developed for the future in order to achieve
goals and objectives of company in competitive market. They are also
accessible for completing tasks and activities on certain time period
(Lengnick-Hall, Beck and Lengnick-Hall, 2011). HR manager makes
polices and strategies for employee’s development to improvise their
current skills and make them a well skilled and technical person.
Compensation It is essential for the HR manager of company to make a compensation
structure to compete with other firms. In addition to this, attractive
compensation and wages help in retaining employees towards business
organisation. . With the help of impressive compensation, organisation
can easily get talented people which are capable to know effective use
of production tools and techniques.
Safety HRM practices are also responsible for employee’s health and safety.
In ADLI limited, workplace specialists are also engaged with
employees in order to promote the awareness. In cited organisation,
they are also liable to give direction towards safe handling of
dangerous machines and hazardous chemicals.
Liability Due to lack of communication, employees are not able to understand
each other and their messages which can create disputes and conflicts
among them. HR department of ALDI is also responsible to make a
healthy working environment in the business organisation. For that,
such person develops strategies and policies in order to resolve the

issues and problems in between staff members.
Employee satisfaction Employee relationship manager in the firm helps to give more
satisfaction to employees to retain them for long period of time. For
that purpose, such person conducts employee survey and face to face
interaction to know the needs and demands of workers (Guest, 2011).
Recruitment and
selection
Various HRM practices are helpful to manage the process of
recruitment and selection. In this, is the duty of HR manager to find out
a person whose skills matches with the requirements of company.
If a firm will be adopted these HRM practices then it can easily improve working
capabilities of its employees in an effective manner. Because if staff members are getting healthy
and safety working environment then they wants to attain and retain for long term period at
workplace. Well qualified and skilled employees are the key factor of organisational growth and
success. Apart from this, if the HR manager of the company will provided regular training and
development assistance to their workers then there will be an improvement in their performance.
Good knowledge of production is also helpful in raising productivity of a company. Therefore
the refereed firm can easily achieve its goals and objectives in an effective manner. With the
assistance of all these above mentioned HRM practices helps in raising productivity as well as
profitability. As if employees get healthy and safe working environment then they prefer to attain
and retain within organisation for long term period. In this perspective, a well qualified and
experienced workforce is able to achieve firm goals and objectives in a certain time period.
TASK 3
P5. Importance of employee relations to influence HRM decision making
Managing employee relations is a pre-requisite for the organisational growth and success.
If employees are not getting free and an open environment at the workplace, they cannot perform
well. An isolated business environment put a direct impact on employee’s performance and
productivity. It is very important that employees feel comfortable and have freedom while
working in any company.
In ALDI, this is highly indispensable that workers share healthy and positive relationship
with each other. It aids them to achieve goals and objectives of company. It will help in reducing

all operational issues and challenges that arise while performing any activity. Employee’s
relationship are also supportive in motivating and encouraging people in the business
organisation. Apart from this, managers have to develop and implement some policies and
procedures in order maintain healthy and positive relations (Kehoe and Wright, 2013).
Managers have to treat employees in a well and fair manner by giving them same importance so
that they can get encouraged to work hard. HR department also has to keep them aware about
decisions and policies of company. This will assist in managing continuous interaction among
employees and employers. Workers must be appreciated and rewarded for their performance or
to attain the job targets within specified time period.
P6. Key elements of employment legislation and its impact upon HRM decision making
Many employment legislation acts are governed in the UK. These laws are formulated so
that employee’s and worker’s right cannot be infringed by company. This is an important task for
ALDI to follow such guidelines.
Following are the key elements of Employment legislation as:
Equality Act 2010
It is the primary law that is executed to prohibit discrimination and harassment in the UK
that is Equality Act 2010. This law follows three European Union Directives and it strictly
prohibits discrimination and harassment based on age, disability, gender reassignment, marriage,
race, colour, religion, sex, etc. This law prohibits direct and indirect discrimination at the work-
place.
Health and safety at work act 1974:
This act is referred as HSWA act which came in force to provide clear guidelines about
the norms that are required to be fulfilled by the employer. It is the duty of company to provide
healthy and safe environment to its workers so that they can work effectively in their
organisation. This act provides guidelines that state that it is the responsibility of employer to
resolve the issues that arise to workers at the workplace (Jiang and et. al., 2012).
National minimum wage act 1998
This act states that it is the responsibility of company to provide equal pay to its
employees and it is required to pay amount as per the capability of workers. Wages required to
pay must be paid by the employer to its employees.
Impact upon decision making:

These acts are formulated so that they can provide maximum protection to workers and
employees at the workplace. It has huge impact over the operations of organisation as well on
decision making process. This is an essential task for company to consider these norms while
making decision. There are many decisions that are required to be taken by company and these
are implemented effectively when it is accepted by employees at a large level. So, it is required
to provide maximum protection to employees. It helps them to motivate and work more
effectively in the business so that organisation can achieve their objectives.
In order to protect employees rights and duties in a business organisation; UK government has
regulated certain trade unions and collective bargaining. These trade unions are helpful to protect
employees' exploitations and harassment from their managers. Trade unions are liable to provide
healthy working environment to employees; if employees will get higher satisfaction form their
job then they will produce better as well as an effective manner. Trade unions forces managers to
develop certain strategies and policies for their subordinaries; it could improve employee-
managerial relations. With this assistance, both parties are able to communicate with each other
in order to share their ideas and thoughts with each other. Friendly employee relations are liable
to reduce conflicts within workplace.
TASK 4
P7. Application of HRM practices in a work related context
Work related situations of HRM are as follow: -
It is the responsibility of HR manager to manage manage workforce diversity and
employee relations as well. Along with this, the person also liable for conflict management.
There are many problems and issues are generate in business organisation which impact on
employees productivity and performance. In ALDI, the HR person has to develop policies and
strategies in order to resolving all problems and issues.
The hard and soft model – The hard model of HRM emphasis with the calculative,
quantitative and business strategic aspects which are related with managing human resources as
an economic factor. Apart from this, the soft version of HRM practices concern with managing
human relations, emphasizes communication, leadership, motivation, etc. It is the duty of HR

manager to maintain working activities of employees in order to achieve goals and objectives of
company effectually in the competitive market.
The hard model of HRM practices involve strict rules and regulations. It is necessary for
all managers to follow all of them which are based upon ethics and values of company. Along
with this, the model is developed in order to improve capabilities and efficiency of employees
with this business organisation can gain higher level of production. The hard model forces
employees to work in a strict and pressurised environment. Apart from this, the soft model of
HRM encompasses with flexible and easy going working environment. In this, employees work
freely and there is no time bound upon them (Huselid and Becker, 2011).
Below mentioned certain modern HRM practices: -
 Job analysis – It is the process of collecting as well as examining information about
human requirements at workplace. Job analysis helps in determining placement of jobs; it
allows departments to identify the paths of job roles as per their interest. Along with this,
job analysis is a combination of two factors – job specification and job description. In
which job description is a written document which describes the roles and responsibilities
which is to be performed by an individual. Whereas job specification gives proper detail
of a job at the time of joining.
 Flexible working environment – Another HRM practice is to provide flexible working
environment. In UK, people want to do job as per their time schedule in which they feel
more comfortable. Along with this, flexible working environment also helps in boost up
workers' productivity and performance level.
 Subcontracting – Subcontracting occurs when a business wants some additional resources
in order to carry out specific tasks. It main benefit is to ensure the quality of products and
services by implement effective resources.
CONCLUSION
As per the above study, it can be concluded that human resource management is one of
the most important functions of company. It has been assessed that ALDI is effectively adopting
HRM practices in their operations. It is important for this company to follow employment
legislation act in their operations so that they can provide better environment to its employees.