HRM Report: Analysis of HRM Strategies and Employee Relations at Aldi

This report examines the human resource management (HRM) practices at Aldi, focusing on recruitment, selection, training, and employee relations within the company. It begins by explaining the purpose and functions of HRM, particularly in the context of Aldi's new store opening in Wembley Central. The report then analyzes different recruitment and selection approaches, evaluating their strengths and weaknesses. It further explores the benefits of various HRM practices, such as employee retention, positive behavior reinforcement, and performance management, for both the employer and employees. The report also evaluates the effectiveness of HRM practices in increasing revenue and output, highlighting factors like innovative working environments, non-monetary incentives, and effective communication. Finally, it discusses how employee relations influence the HRM decision-making process and identifies key elements of employment legislation that impact HRM decisions. The report concludes with an overview of the importance of HRM in achieving organizational objectives and maintaining a positive work environment.

HUMAN RESOURCE MANAGEMENT

CONTENTS
INTRODUCTION.................................................................................................................................1
TASK – 1..............................................................................................................................................1
P1 Explaining the purpose and function of Human resource management........................................1
P2 Approaches to recruitment and selection and their strength and weakness...................................2
TASK – 2..............................................................................................................................................3
P3 Explaining the benefits of varied HRM practices within ALDI....................................................3
P4 Evaluating the effectiveness of HRM practices in increasing revenue & output..........................4
TASK – 3..............................................................................................................................................5
P5 How employee relation influence the HRM decision making process..........................................5
P6 Determining the key elements of Employment legislation that influence HRM decision-making 6
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8

INTRODUCTION
Articulating in relation with the human resource management, it is quite crucial for
the firm as it focuses on functions such as recruitment, selection, training and development
and performance management in order to provide an aid to the firm in achieving its pre-
determined objectives. HRM is the key area of the organization that guides the employees so
that goals are attained effectively (Price, 2007). As a trainee Human resource manager at
Aldi, the main role is to manage the human resource activities at newly opened branch of the
firm at Wembley Central. Further, the role is to make arrangement for induction and refresher
training where the role and main purpose of HRM in Aldi will be discussed. Further, the
study will also pay attention of the state of employment relations and pieces of employment
legislations within the company.
TASK – 1
P1 Explaining the purpose and function of Human resource management
HRM’s main purpose is to utilize the resources being present in the firm effectively so
that overall objectives are fulfilled. If the employees within the firm are contended with the
culture and practices of the management than effective work performance can be achieved.
Pertaining to this, the main purpose of human resource management in Aldi is to properly
manage this valuable asset by arranging passable training and learning events. It also has a
significant contribution in the HR planning of the company (Chan and Kuok, 2012). In the
UK market, the firm has many stores and for their new opening in Wembley Central they will
requires efficient workers to carry out daily operations. There is a need of making
improvement in the existing and new staff members so that they carry out their tasks
resourcefully. Some of the functions being performed by HRM in ALDI are being defined
below:
 Recruitment and selection – This function helps in procuring right human asset within
the firm at right time and place. Since the firm has opened a new store that are looking
forward for those people who have expertise in communication skills. The openings
related to the new store is being advertised on in-store board, job center as well as in
newspaper. With these advertisement tools in place, the firm will have pool of
candidates for the required job positions (Schuller, 2000).
 Compensation and benefits – Compensation and benefit are the main reason of hard
work being put in by the employees in their company. ALDI offers good packages to
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their workers and they too have timely bonus and other reward system linked to their
performance.
 Human Resource Planning – Workforce planning is one of the crucial aspects of
HRM in Aldi. With the management of staff members is held effectively. As per the
requirement of the job, skills and capabilities needed for carrying out the job tasks
should be decided beforehand so as to have right employee at right time and place.
There is high rate of attrition within this industry in UK and thus, workforce planning
is essential for better functioning (Zellars and Fiorito, 2009).
P2 Approaches to recruitment and selection and their strength and weakness
Recruitment and selection helps ALDI in meeting out the current as well as future
needs of the human resources. Further, it also engage in carrying out job analysis, job
description and workforce planning. With these functions, pool of efficient candidates are
being attracted and the HR managers have range of options to choose the best among them.
The company makes use of varied approaches for recruitment and selection such as job
centres, word of mouth, online websites etc. The candidates are selected through interviews
and several aptitude tests. Training is being offered to the chosen applicants according to
their job duties (Aldi careers, 2018). Strengths and weaknesses of approaches to recruitment
and selection are being defined underneath:
Methods Strengths Weaknesses
Word of mouth
It is the least expensive method
and simple as well. One of the
best benefit of word of mouth is
good people will refer good
applicants and therefore, it
increases the chances of
recruitment of competent people
with the firm.
Selecting employees through
word of mouth sometimes
alienates the other members, as
they hang in together and show
less concentration towards work
Seeking help from the job
centers, vacancies within the
firm can be filled up speedily.
Further, qualified and
Situations might take place
wherein job centers become
incentivized because of any
factor and consider their own
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Job centers appropriate applicants can be
selected (Aldi, 2018).
interest rather than right
placement.
Online websites
With this method, large number
of applications can be received
for the required job position.
Further, it also saves time of the
firm as the process takes place
speedily.
However, there are some cases
wherein online websites fails in
offering right candidate for the
job position in terms of
qualification, abilities and skills
(Wright, McMahan and
McWilliams, 2004).
TASK – 2
P3 Explaining the benefits of varied HRM practices within ALDI
Human resource management and its practices offers numerous benefits both at the
employer and employees ends. The particular subject is more focussed towards controlling
the operations and making improvements in the functional areas of the company. Then
human resource management of ALDI includes various activities such as training and
development, recruitment and selection, planning for dismissal, performance management
etc. Some of the benefits of HRM practices both to the employer and employee are as
follows:
 Retention of the existing employees – Aldi too have effective reward and
compensation system concerning the interest of all the employees, employee
engagement, training and development events etc. Therefore, with the presence of all
such factors they gain loyalty from the existing workers as well (Rose and Kumar,
2006).
 Reinforcing of positive behavior – with the help of effective HR practices in place,
ALDI is able to develop positive as well as friendly working environment for their
employees. All individuals work as a collective team and employs their best efforts to
achieve the desired aims and objectives of the company.
 Better performance management system – The motivation of the workers can be
increased by offering better performance management system in place. At Aldi,
employees with extraordinary performance level are being recognized and rewarded.
They naturally boosts the employee’s morale and they even work hard more for
achieving more heights. Development of good and healthy relations – With the HRM
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practices in place, Aldi can create good and healthy relations amid the workers and
employers. The performance appraisal system effectively tracks the work level of the
workers and satisfies them by offering all required means (Huselid, 2005).
 Building flexible workplace for breaking monotony – Aldi offer flexible working
environment to their employees which is one of the vital features of its HRM
practices. The work place of the workers are being altered from time to time in order
to make them feel as if they are working in a new area or company. With this, the
monotony of the employee can be ruined (Jackson and Schuler, 2005).
P4 Evaluating the effectiveness of HRM practices in increasing revenue & output
Unquestionably, the revenue and output of ALDI has been affected and increased by
the implementation of effective human resource management practices within the firm. From
various outlooks it can be noticed considerably that the organizational profits as well as
productivity has been increased and these are being defined in the paragraph underneath:
 Innovative working environment – The human resource team of the firm is making
significant efforts in the development of such an environment that fosters innovation
and creativity and in turn helps in motivating the employees for better work
performance. With this efforts, the employees engage themselves in productive work
and carry out task with best of their potential. This helps Aldi in achieving more
profits and higher productivity level (Datta, Guthrie and Wright, 2005).
 Improving employees through non-monetary factor – The human resource
management practices also places emphasis on development of non-monetary factors
policies such as arrangement for training and development, challenging jobs, timely
feedbacks, recognitions and appreciation and growth opportunities. All these
significantly help in increasing the excitement, motivation, positivity and energy
within the employees.
 Rewards drive performance – It is a human tendency that when one knows that this
particular action will going to reap out various benefits and rewards, he or she will
employ best of his or her capabilities to achieve the same. Aldi provides their
employees numerous rewards, recognition and benefits according to their level of
work achieved that helps the employees to feel motivated (Becker and Gerhart, 2006).
 Effective mode of communication – Each and every details related to the work is
transferred to the sub-ordinates effectively and cautiously. Operational level is being
communicated with all minute details that helps them in carrying out their work
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activities flawlessly. Through this, they meet out their deadlines and in turn help
ALDI in attaining financial gains.
 Effective direction setting and execution – The revenue as well as productivity level
of ALDI has been increased a lot due to the presence of efficient managers and
leaders within the firm. The leaders and managers of the firm are quite competent
enough in controlling, directing, managing and defining the accountabilities of the
employees.
 Appraising the skills of workers to sustain productivity – The retail market of UK is
being characterized by fierce competition level these days, due to changing trends as
well as increasing level of globalization. These situations can better be managed by
updating the skill and abilities of the existing workers with these changing scenarios
(Davidson, McPhail and Barry, 2012). The HRM function of ALDI engage in
determining the developmental needs of their workers according to the recent times
and make necessary arrangement for the same. This in turn helps the firm to achieve
higher productivity and profits with the augmented human capabilities.
TASK – 3
P5 How employee relation influence the HRM decision making process
Speaking in regards with the employee relation, it is being regarded as an important
aspects of the organization as it supports in development of positive environment within the
company. With this in place, employees carry out their work activities with best of their
abilities and successfully attains the overall objectives of the organization. In ALDI also,
relationship between the workers and employer is quite good. They work as a collective team
and proves the notion true to that no human being can live in isolation and need someone to
care and share. At Aldi, many a time situations may arise which demands interaction with
others to come towards conclusion or solution (Becker and Gerhart, 2006). Therefore, it can
be well-attributed that to make workers feel comfortable and to accomplish the pre-
determined goals, employee relation is the main essence. The importance of employee
relation in influencing the decision making process of management of ALDI is being
elaborated in the subsequent paragraph:
 Discouragement of conflicts – Because of healthy and cordial relations between the
management, employer and staff of ALDI, the chances of conflicts and fights is quite
minimum. The employees within the firm trust each other and take opinions of their
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peer group to take crucial decisions which helps in increasing the productivity level
and decisions are made faster and easier.
 Improved level of Communication – In effective decision making process,
communication plays a vital role. Further, for the purpose of accomplishing the job
accountabilities, it is essential to have efficient communication system in place. If
proper and minute details are being passed on to the employees, they can carry out
their job better. They will have a clear direction that helps them to lead towards the
right outcome (Henri, 2004.).
 Ensuring equality – It is vital on the part of Aldi to make sure that their employees are
not discriminated in any manner. In this regards, the firm is offering adequate growth
and developmental opportunities to their workers at regular interval according to their
work level. This policy of the firm helps in ensuring that there is no biasness within
the firm in terms of payment and equality (Mittal, 2007).
 Easy work by sharing with others – Since, the employees and management of the Aldi
shares healthy relationship with each other, each and every level of the company is
being characterized as a collective group. In addition to this, no individual within the
firm is loaded with extreme level of work, as people understands each other and share
other’s piece of work to manage one’s burden.
 Effective training and development programs – At Aldi the motivation level of the
employees is being enhanced by seeking help from training and development
programs. At regular period of time learning events related to different areas is being
arranged for the staff members of the firm that simply boost up their motivation level
and enhances this skills. They also become capable of taking better decisions for their
firm.
 Loyalty of the employees – Other than the above, the firm is also engaged towards
providing conductive, pleasant and supportive working environment to their staff
members in order to make them feel relaxed and satisfied with the conditions (Dolcos
and Daley, 2009). In such an atmosphere employees sense like working more and
even carry out challenging work duties in a finger count.
P6 Determining the key elements of Employment legislation that influence HRM decision-
making
For the purpose of having successful operation and peaceful working environment, it
is vital for the firm to takes into consideration all the necessary employment legislations and
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pieces of laws being established by the government concerning their respective industries.
The government of UK has also established various laws pertaining to the retail industry
which needs to be abide by ALDI. The firm carry out different functions such as
compensation, recruitment and selection, training and development and many more. For
successful operation of all these above defined functions, some laws and regulations needs to
be adhered strictly (Acquaah, 2004). Furthermore, these employment legislations also
influence the decision making process of human resource management at ALDI and
explanation of these is being done below:
 Workplace equality – This is being considered as one of the most vital legislation for
any organization. There should be no discrimination of employees in terms of their
religion, gender, age, sex, race, caste and religion. Equal opportunities should be
offered to all (Working for ALDI, 2011).
 Defining the positions – Further, roles, accountabilities, job positions and work duties
should be made clear with the applicants at their time of interview. The candidate has
a right to know every aspects of his employment before joining the same.
 Work timings – The government of UK has also made laws pertaining to the time of
work, hours of work, rest intervals, holidays etc. All these aspects should be
considered by the human resource manager of ALDI while making employment
contract with the workers.
 Proper compensation and benefits – This is also being regarded as one of the most
vital aspects of employment legislations. It is the duty of the human resource
managers of Aldi to decide the benefits and compensation to be offered to their
employees as per the specified limits being mentioned in laws (Gilley, Eggland and
Gilley, 2002).
CONCLUSION
The above research study has significantly analysed different concepts, practices and
elements of HRM in Aldi. Since the firm is opening a new store in the Wembley Central,
there is a need of more resourceful human resource management practices that can increase
the productivity and profitability of the firm. It was further originated that a satisfied workers
is less likely to involve into conflicts and issues and engross more towards ways of reaching
the desired outcome. Thus, strategies should be crafted to make them satisfied and motivated.
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REFERENCES
Books and journals
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Becker, B. and Gerhart, B., 2006. The impact of human resource management on
organisational performance. Academy of Management Journal, 39(4), pp.779-801.
Chan, S.H. and Kuok, O.M., 2012. A study of human resources recruitment, selection, and
retention issues in the hospitality and tourism industry in Macau. Journal of Human
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Datta, D.K., Guthrie, J.P. and Wright, P.M., 2005. Human resource management and labour
productivity: Does industry matter? Academy of Management Journal, 48(1), pp.135-145.
Davidson, M., McPhail, R. and Barry, S., 2012. Hospitality HRM: past, present and the
future. International Journal of Contemporary Hospitality Management, 23(4), pp.498-
516.
Dolcos, S. and Daley, D., 2009. Work pressure, workplace social resources, and work–family
conflict: the tale of two sectors. International Journal of Stress Management, 16(4),
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Gilley, J., Eggland, S. and Gilley, A., 2002. Principles of Human Resource Development.
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Henri, J.F., 2004. Performance measurement & organizational effectiveness: Bridging the
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Jackson, S. and Schuler, R., 2005. Understanding human resource management in the context
of organizations and their environments. Annual review of psychology, 46, pp.237-264.
Mittal, A., 2007. A Study of people productivity in HRM – Promotion Productivity. Delhi:
Delhi productivity council.
Price, A., 2007. Human Resource Management in a Business Context. 3rded. London:
Thomson Business Press.
Rose, R.C. and Kumar, N., 2006. The influence of organizational and human resource
management strategies on performance. Performance Improvement, 45(4), pp.18-24.
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Schuller, T., 2000. Social and human capital; the search for appropriate techno methodology.
Policy Studies, 21(1), pp.25–35.
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Zellars, K.L. and Fiorito, J., 2009. Evaluations of organizational effectiveness among HR
managers: Cues and implications. Journal of Managerial Issues, 11(1), pp.37- 55.
Online references
Aldi careers. 2018. [Online]. Available through:
<https://corporate.aldi.com.au/en/careers/careers/ >. [Accessed on 23rdNovember 2018].
Aldi. 2018. [Online]. Available through: <https://www.aldi.com.au/.>. [Accessed on
23rdNovember 2018].
Working for ALDI. 2011. ALDI Careers. [Online]. Available through:
<http://www.ALDIsmartercareers.com.au/workforALDI.aspx>. [Accessed on
23rdNovember 2018].
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