Human Resource Management Report: Evaluating HRM at Aldi (Coursework)

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on the application of these principles within Aldi. The report begins with an introduction to HRM, defining its core functions and objectives, particularly in the context of talent acquisition, development, and retention. Task 1 examines the aims and functions of HRM, emphasizing the importance of ethical practices and employee relations. It also evaluates the strengths and weaknesses of various recruitment approaches, including internal and external methods. Task 2 delves into the benefits of HRM practices for both employers and employees, highlighting the creation of a positive work environment, and the importance of training and development. It further explores the effectiveness of HRM practices in enhancing organizational profitability. Task 3 investigates the value of employee relations in decision-making and the impact of employment legislation. The report concludes with an overview of the application of HRM practices within Aldi, synthesizing the key findings and offering insights into how Aldi can optimize its HRM strategies for continued success.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Aim and functioning of HRM .........................................................................................1
P2. Strengths and weaknesses of various approaches of hiring and selecting.......................3
TASK 2 ...........................................................................................................................................4
P3. Benefits of HRM practices for both the employer and employee....................................4
P4. Effectiveness of various HRM practices in increasing organisational profitability.........6
TASK 3 ...........................................................................................................................................6
P5. Value of employee relations in impacting the decision-making......................................6
P6. Key elements of employment legislation and its impact on decision-making.................7
TASK 4 ...........................................................................................................................................8
P7. Application of HRM practices in corporation..................................................................8
CONCLUSION..............................................................................................................................10
.......................................................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Human resource management (HRM) can be simply defined as a process via which
workers can be managed in an organised way. It consists of processes like recruiting, selecting,
placement, induction, training and development, motivating, compensating, etc. It aids in
enhancing the productivity of corporation by effective employment of workers (Boxall, and
Purcell, 2011). It also assists in rising the performance of workers. Primary aim of HRM is
acquiring, developing and retaining the best talent in enterprise. However, department of HR
within organisation is more concentrated upon various policies and practices in order to achieve
the set goals. The present report is based on human resource management of Aldi. In this project,
purpose and functions of HRM are explained that are applied to planning of manpower and
resourcing an enterprise. The strengths and weaknesses of various approaches that are used in
recruiting of workforce are also described here.
TASK 1
P1. Aim and functioning of HRM
Main intention of human resource management is recruiting correct candidate for the
right job. It is utilised by managers for enhancing effectiveness of staffing function and to recruit
good candidates from the crowd of large applicants. It assists in ensuring that whether each and
every employee is satisfied with the working environment. This idea aids managers in making
ethical HR practices (Bratton and Gold, 2012). Generally, it is used by HR manager in making
compensatory packages to the employees. Manager of Aldi can use this idea or concept in
attracting a large number of candidates and for fulfilling the demands and desires of current staff
members. Some of the functions of human resource management are described as below:
 Developing healthy relations with workers: Creating and maintaining healthy
relationship with workers is one of the major functions of HRM (Buller and McEvoy,
2012). It aids employers in acquiring commitment of employees that they may not leave
organisation for a long period of time. This is an important thing as in most of the
companies, workers leave in very short period of time. This is not good for the image of
firm. So, for developing healthy relation with workers, they can be inspired for doing
work for a long time without having the intention of migrating to other venture.
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 Development of human resources: This involves providing training and development
programmes in order to give knowledge to employees for doing their existed job
appropriately. It also provides guide lines to them for making their career plan.
Improvement in the skills and knowledge increases the skilfulness of business activities
and aids corporation in acquiring their aims and objectives easily.
 Compensation and rewards: Compensation is provided to all the employees who are
the member of organisation. An employer is responsible for compensating workers in an
appropriate way. Apart from the basic wages, different rewards and benefits are provided
for employees for doing the extra works at the right time (Choi and Ruona, 2011). By
adopting this technique managers of Aldi can full-fill all the needs and demand of their
workers and by this way they can improve their performance.
 Provide healthy and safe working environment to subordinates: It is the duty of
employer to arrange a risk free or healthy working surrounding for of the workers at the
working location. If organisation does not provide them safe or secure environment then
this laid a bad impact on the performance and production of the company. So, it is very
important to provide safe and secure working place or environment to the staff members
so that productivity of the subordinates can be improved as well as increased.
 Staffing: Employees are one of the essential factor that helps in achieving success. So, it
is the duty of manager to recruit correct persons for performing different jobs in company
(Crook and et. al., 2011). Department of HR assists managers in enhancing the
effectiveness of this process by doing analysis of job, creating plans of selecting and
recruiting right candidates, etc. Same process can be used by managers of Aldi in hiring
appropriate candidates in the venture.
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Such functions of human resource management not just increases the effectualness of
different processes of corporation but also develops a positive and healthy surroundings. So, the
same methodology can be applied by Aldi in proper management of employees.
P2. Strengths and weaknesses of various approaches of hiring and selecting
Recruitment is a procedure of attracting a large number of significant candidates to fill
the vacancies offered by certain organisation. For recruiting right person, managers of Aldi can
take use of below listed approaches:
Internal approach of recruitment: Under this procedure of recruiting, managers assess
or judge the abilities of present employees for filling vacancies. Existing workers can receive a
chance of promotion by representing their skills or knowledge via this approach.
 Strength: It saves time as well as money of corporation that will expend on providing
training and promotional activities. It is one of the quickest approaches that provides a lot
of opportunities to manager for selecting the best one (Gill and Meyer, 2011). This also
enhances morale of employees and at the similar time, increases their level of
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Illustration 1: Human resource management functions and strategy
(Source: Human resource management functions and strategy, 2017)

satisfaction. As existing employees are already aware with the work culture of firm, this
saves the cost of organisation which would invest in orientation programmes.
 Weakness: Here, vacancies are getting filled from existing employees and so, it blocks
the entries of new talent in venture. The duty of managers becomes too complex as it is a
rigid task to select the best candidate from a large number of existing employees.
Additionally, this approach also demotivates the subordinates who get failed in acquiring
promotions.
External approach of recruitment: In this procedure of hiring, manager selects
candidates from outside the organisation for filling vacant posts.
 Strength: It helps in bringing new candidates in the venture and increases productivity of
entire enterprise. As the fresh candidates and experience holders get hired, it saves the
expenditures that will get spent in providing training to them (Gruman and Saks, 2011).
This creates the challenging environment for existing workers and most interestingly, it
improves the performance of workers. Managers of Aldi can enhance the effectiveness of
organisation by adopting this approach of recruitment.
 Weakness: This process takes a lot of time as managers have to go for conducting
interviews in different universities or colleges. This also creates some conflicting
situations among existing and newly hired people.
Selection is a process of choosing accurate person from the crowd of thousands of
people. In order to select a worthy candidate, management of Aldi should follow below written
approaches:
 Systematic approach of selection: In this approach, a recruiter have to follow a series
of steps in order to choose a capable candidate.
 Unsystematic approach of selection: Under this approach, recruiters are not required
to follow a series of steps for hiring deserving applicants (Jiang and et. al., 2012). They
randomly select any resume and examine their skills from the criteria of designation. If
they have proper skills, then they get hired.
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TASK 2
P3. Benefits of HRM practices for both the employer and employee
HRM practices aids in developing a positive working environment in corporation by
bringing coordination among all activities. This increases the working of employees and inspires
them in doing ethical practices. All of such activities, provide a lot of benefits to both employer
as well as employees of the venture. After executing this concept, employer of Aldi can receive
following benefits:
 Building team: Effectual practices of human resource management aids in formulating
common goals for both organisation as well as employers. All this assist in creating a
team and this creation of team produce good results in corporation than an individual.
 Evaluate HR policies: HRM activities supports manager in evaluating the policies
regarding the improvement of workers (Guest, 2011). Assessment of such practices aids
managers in taking curative actions or modifications if needed.
 Create positive or healthy environment: While formulating policies maintenance of
human resource, employers has to obey large number of rules and regulations. All these
legislations assures that secure conditions have to be provided to workers for doing their
regular tasks. By making an environment which is risk free, management of Aldi can
maximise the capabilities or performance of their staff members.
 Helps in making future planning: Practices of human resource management aids
manager in gathering significant information from all sectors of venture. All such
accumulated data assist managers in creating a future plan for running business smoothly.
Benefits of different HRM practices received by employees are described below:
 Training to employees: Training is one of the most important practise that is provided to
employees of the corporation in order to make them learn about their daily duty. This is
provided for certain period of time like six months or one year. These training
programmes assists workers in improving their skills and knowledge and make them
capable so that they can live on even a competitive business environment.
 Increase the efficiency of employee's performance: Flourishing and healthy
environment of work place in the firm increases the working capabilities of employees
(Hendry, 2012). Additionally, this also reduces the costing of business operations and
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aids venture in offering quality based goods and services to the consumers even at lower
costs.
 Motivate workers: Some of the ethical practices of HRM inspires the fair work
processes in business surroundings. Fair or good treatment and compensation are
received by the employers motivates employees in performing or giving their 100 % to
the work. All such things increases the overall output of the entity.
Managers of Aldi can offer such benefits to their employer as well as employees by
efficaciously implementing these concepts. Achievement of all these benefits assists in
improving the satisfaction and moral level of employees and helps employers in getting the
commitment of them in attaining success.
P4. Effectiveness of various HRM practices in increasing organisational profitability
Gaining profitability is one of the major motto for which entrepreneur undergo or carry
on large number of practices. For generating a lot of profits per annum, it is essential for each
and every manager to design the HRM practices efficaciously because this impacts the
profitability and productivity of firm in different ways. Such practices assists in describing the
process or methodology of managing human resources and activities associated with them.
Within the policies of human resource management, training and evolution programmes should
be encouraged as such activities supports every worker in incrementing their skills and
knowledge. Also, the quality of works gets improved at the identical time (Lengnick-Hall, Beck
and Lengnick-Hall, 2011). This assist venture in manufacturing best quality goods and services
to their consumers and generate high amount of profitability per year. It should be understand by
the managers of Aldi that HRM practices as well as money or turnover of the company is closely
linked with each other. More effective will be the practices of human resource management,
more will be the profit earned by the firm.
Practices of HRM impacts the process of employees in accomplishing the task and this
influence the final product created by the employees. Therefore, if managers wants to increase
the profits and production then they have to upgrade the effectiveness of policies of human
resource management.
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TASK 3
P5. Value of employee relations in impacting the decision-making
It is only the workers who contributes largely in attaining the success in any company.
These are those one who creates final products and services for such a large number of audience.
So, it is very essential for every corporation's manager, to maintain a good or healthy relationship
with their employees. Attribute of this social relation directly influence the performance of
subordinates which ultimately affects the successfulness of organisation (Manroop, Singh and
Ezzedeen, 2014). Now a days, the working environment is too competitive, and for acquiring
success is as easy as drinking water. So, to achieve success, it is essential for managers of Aldi
for giving a large efforts in building or maintaining good working relations with their staff
members. All these affects in the process of making decisions within firm. In order to maintain
good relationship by the managers from their workers following things should be done:
 Managers of Aldi ought to adopt an open door policy so that workers can discuss their
various problems or issues faced by them at the working location.
 Engagement or involvement of employees should be encouraged in order create
correlative goal and this created by managers.
 Job transformation should be done in regular basis. This would provide chance to
workers for learning something new (Mariappanadar, 2013).
 Feedbacks of assistant workers should be encouraged by praising them so that errors or
obstacles can be removed.
 Strong and effectual communication should be present among each and every
department of company so that new ideas can be created. This also aids in removing the
confusions and explaining the roles and obligations of each and every employee in very
clear way.
 People who do the best works should provide appreciation or promotions. By this way
they can motivate them in doing the same for other workers also.
 Training and development programmes have to arrange by the managers or employers
for increasing the performance of employees.
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P6. Key elements of employment legislation and its impact on decision-making
Employment legislation can be simply defined as a collection of different laws which
describes the fundamental rights and roles of employees at the working location. All such norms
defines the obligations of workers and employers towards one another. Some of the important
elements of employment legislation and its impacts on the organisation's decision-making are
listed below:
 Employment right act: This law define the duties and rights of an employee at the
organisation. According to this, employers are bound to provide fundamental facilities to
all assistants or workers (Storey, 2014). Equal payment should be given to all the
employees. It is the duty of manager to provide safe environment to their workers.
Subordinates are the essential resource of each and every corporation so manager have to
protect their rights and provide them positive working environment.
 Minimum wage act: It is the rate which is defined by the government, so employers are
having the responsibility to provide at least that minimum amount or at most as per their
working quality (Weaknesses in Recruitment Process, 2017). This amount is fluctuating
as per the rising prices in the market so changed by government of UK periodically.
 Worker's discrimination act: According to this law, no one is discriminated on the
ground of race, colour, religion, gender and caste (Sparrow, Brewster and Chung, 2016).
Equal chances are provided to all employees for promotion or attaining growth within an
organisation.
 Working time directive: This act defines that for achieving legal existence of
employment, a worker is responsible to complete the minimum working hours in an
enterprise. It should be 48 hours in a week.
TASK 4
P7. Application of HRM practices in corporation
As workers are becoming a value-based resource of every firm, this enlarges the scope of
human resource practices at working location. It can utilised by managers for solving different
matters or problems that is being faced by employees. At present, Aldi is facing a decrement in
the complete profitability and quality of their goods (Bloom and Van Reenen, 2011). Turnover of
the company is decreasing at a faster rate that impacts the brand image of the corporation. To
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making this situation better or for solving the critical condition of Aldi, their managers should
apply practices of human resource management in following regions:
 Decision-making: Managers of HRM should gather all the reasons of issues or various
data associated with that. All these information helps them in solving the problems that
are rising at the work location.
 Development and training of employees: After analysing the skills of their all
employees, managers should provide them training so that they can improve their
performance and assist in increasing turnover of the firm (Vanhala and Ahteela, 2011).
 Maintaining quality of business products: As Aldi is facing the issues related to quality
of goods and are getting complaints from large number of customers, HRM practices
should apply in those areas to decide the processes of improving the working or product
quality. So that demands or needs of customers can be full-filled.
 Performance evaluation: By monitoring the skills of each and every worker, manager
can recognize their capabilities and as per that they will assign them work. This aids in
improving the quality of the product and services.
 Creation of vision and mission: Determination of skills and abilities of employees aids
the higher management in designing their mission and vision for the venture (Wood and
de Menezes, 2011). This assist managers and employers in designing an effective
business strategy for achieving the set goals and objectives.
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Illustration 2: HRM practices
(Source: HRM practices, 2017)

CONCLUSION
From the above based report, it can be concluded that human resource management plays
a vital role in achieving goals of an organisation. By applying concepts and practices of HRM,
companies like Aldi can increase the performance of all departments. Such practices are like
hiring suitable person for a correct job profile, providing them training and development
programmes, making proper decision-making, etc. It has also been assessed that there are certain
laws and legislations that should be obeyed by every organisation like equal wages act, minimum
pay act and employee's discrimination act.
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