Human Resource Management Report: Aldi's HRM Strategies

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within the context of Aldi, a multinational retail company. The introduction highlights the significance of effective HRM in achieving organizational goals, particularly in a globalized context with a focus on Aldi's operations across 18 countries and 10,000 stores. The report is structured into three tasks. Task 1 defines the purpose and functions of HRM, detailing recruitment and selection processes, orientation programs, and the importance of maintaining good working conditions, managing employee relations, and providing training and development. It also examines the strengths and weaknesses of various recruitment and selection approaches, including internal, external, and third-party sourcing, along with interviewing techniques. Task 2 focuses on the benefits of different HR practices for both employers and employees, emphasizing team building, progress monitoring, improved coordination, and decision-making processes. It further analyzes how various HRM practices contribute to raising profit and productivity through strategic planning, employee training, and customer attraction methods. Task 3 explores the importance of employee relations, including moral obligations and motivation, and examines key elements of employment legislation. The report concludes with a summary of the key findings and offers relevant references to support the analysis.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define purpose and functions of HRM ............................................................................3
P2 Strengths and weaknesses of different approaches to recruitment and selection..............5
TASK 2............................................................................................................................................6
P3 Benefits of different HR practices for employers and employees....................................6
P4 Analyse different HRM practices in raising profit and productivity................................7
TASK 3 ...........................................................................................................................................8
P5 Importance of employee relation ......................................................................................8
P6 Key elements of employment legislation..........................................................................8
P7 HRM practices in a work specific with example..............................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In the current era, for management and control of all over employees or workers in
organisation effective HR manager is required. It plays an important role in developing business
in impressive manner, which helps to achieve goals and objectives of firm. Human resource
management is a systematic process, in which various activities are included like planning,
recruitment, selection, training programmes and many more. In this report signification of HR
management in context of ALDI will be discussed. Its a retail company that is extended over 18
countries and have 10000 stores and turnover of €50 billion. For the firm it is essential to manage
employees in effective manner so they can complete their task and achieve firm's targets. In this
research project it will also discuss about major functions and purpose of HR department in the
selected enterprise. It aids to create coordination between employers and employees, by which
they can easily share any problems and issues within each other’s and increase effectiveness in
the company (Hendry, 2012).
TASK 1
P1 Define purpose and functions of HRM
HR department is very essential in any kind of organisation, which helps to improve
work performance and involvement of employees (Armstrong and Taylor, 2014). They assists in
identifying a person's strengths and weaknesses, according to which HR manager will take
effective action to appoint them in company for selected job. In context of ALDI, various roles
and functions are performed by them, which are mentioned as follows:
Purpose of HRM
 The main aim of HRM is to set goals and objectives in appropriate way, it aids to develop
profit and sales of firm.
 This focuses on proper utilisation of human resources in an organisation, reduce cost of
manufacturing of products and goods as-well-as maintaining service quality.
 There is need to create healthy environment for all employees, so that they can
effectively complete their tasks and increase employee's satisfaction level (Boxall and
Purcell, 2011).

 HR section emphasis on improving motivation and performance level of employees,
that's why they provide various opportunities to employees as-well-as motivation systems
like reward system, offers, promotions etc.
 They conduct training and development programmes for workers to develop working
capabilities and skills, due to which they can learn and improve their knowledge about
particular job.
 The department play a vital role in increase working quality of employees and workers of
enterprise, by which more customers are attracted towards business and will use services.
Functions of HRM Recruitment and selection: In this method, HR managers identify the places that
required recruitment. As per the company's requirements they prepare job-design and
then provide article regarding jobs. After that certain resume are sorted in which certain
person are selected for interview. Before starting this process should make and execute an
plan as per that HR manager will conduct this program for recruit candidates. In which all
persons have equal opportunities for job (Daley, 2012). Orientation: Many organisations conduct orientation to have an interaction with new
employees and employers. Workers orientation program should be based on major
objectives which may be long or short term in nature. Employees can set their targets for
the firm that they are going to achieve in future. It should be specific so that employees
can understand it easily. Maintaining good working conditions: For achievement of goals and objectives as well
as increase working quality of organisation, it should maintain healthy and efficient
working conditions. HR managers have fundamental duty to motivate employees towards
their works and targets. HRM should provide financial and non-financial benefits to
workers based on their performance. This will increase the work-environment of the
company. Managing employee’s relations: Employees are working in organisation, as pillars. They
play an important role in developing and maintaining healthy and effective environment
for all employees and employers. HRM should create coordination, by which they can
work in a unity and staff can effectively complete their work (Guest, 2011).

 Training and development: For improve working quality and performance, it is essential
to conduct training and development programmes for employees. It helps to increase
ability of working and skills about particular subject as well as they can learn something
and improve their knowledge as well.

P2 Strengths and weaknesses of different approaches to recruitment and selection.
For recruitment and selection of appropriate candidates for a particular job, so there are
various effective approaches available, which have some merits and demerits. All these are
explained as:
 Internal sourcing: It refers to appoint new employees by already existing workers in
organisation. Many businesses use this method to recruit employees in enterprise for
selected job. It is less time consuming as-well-as cheaper compared to another
method. Sometimes this method is not appropriate for business, employees in
enterprise may use this technique for their own benefits.
 External sourcing: It is an effective technique to recruit persons or candidates in
company by using external tools and methods such as boards, newspapers
advertisement and campus placement etc. The result of this method is very
appropriate in nature, by which skills and capabilities of a person can be identified.
But major weaknesses are time consuming and require to invest money for recruit
persons from external sources (Jiang and et. al., 2012).
Illustration 1: Importance of teamwork
(Source: DeCenzo, Robbins and Verhulst, 2010)

 Third party sourcing: In which includes third party sourcing methods such as
placement agency to find out applicable candidates. It involves various methods and
techniques such as expanding salary offers, compensations and other more flexible
packages. This tool is costly in nature and not provide actual result as well as more
time consuming.
 Interviewing: Most of organisations suggest interview method for recruitment and
selection of appropriate candidates for job. It has some structured and unstructured
questions, asked from persons to determine skills and knowledge level. In this method
collected resumes of candidates will filtering by HR mangers as per their
requirements and person's qualification.
TASK 2
P3 Benefits of different HR practices for employers and employees
HR practices are important to achieve goals and objectives of an organisation. These are
helps to increase working productivity for employees as well as increase production level as
well. Different HR practices of some benefits, which under following: Team building: HR practise are assist to make team, by which employees will working
in unity. In effective team has to be need better communication, decided goals,
understanding, by which they can share all information and issues with each others and
easy to resolve it on time by using better techniques and methods. In a team one person is
an leader and another all are followers. The team is handled and controlled by team
leaders, which is having right to regulate this as well as give direction to them for
completing targets (Meredith Belbin, 2011). Helps monitor progress: HR practices and approaches are assist to major and monitor
progress level of employees as well as organisation, if there is having some lack of
issues, which can resolve them in appropriate manner. For getting progress in works and
employees, so there is conduct various programmes and activities for employees, by

which they can improve their working performance and involvement. It helps to improve
their motivation level for select targets. HR manager of company having some better
skills and capabilities to mange and control all over employees also on time display
systematically to them. Improve coordination: In any kind of organisation essential to develop coordination
between workers and mangers of business. By which they can easy to communicate with
each other regarding any subject, it assist to develop understanding level for decided
goals. When workers are working in unity or coordination for attain selected targets, so
they can easy to evaluate and effectively select better strategies as per all employees
opinions.
 Decision making: For increasing sales of firm, so there is require all works should
complete as per the decided plan, that is helps to take corrective and suitable decision
regarding any situation and problems. Decision making is a continues process in which
should understand all persons view and ideas as well as the situation, after that as per the
evidence should take action to find out solution. This is helpful for organisation because
its not create any bias nature between employers and employees as well as not create
conflicts between them (Huselid and Becker, 2011).
P4 Analyse different HRM practices in raising profit and productivity.
In the given scenario, various types of HRM approaches or practices have been analysed
which provides to increase profit as well as productivity of organization as it helps to manage
and control all over activities and works of organisation. It also helps to achieve decided goals
and objectives of firm. In this context, organization require accomplishing all the task as per
decided plan and design and all the workers will have to perform their own task in effective and
appropriate manner. Its helps to achieve goals and improve chances of profits. In order to raise
the performance of employees there are various training and development programmes have
been conducted by HR manager which helps to increase the actual and effective potential of
employees. For increasing sales, should make an effective plan then manage and set all
machinery and works as per their requirements and set time schedule by which maintain the
products and service quality.

If in organisation all workers are completing in a process also on the basis of planning,
so customers are easy to attract towards company's services and their products. It helps to full fill
their requirements or demand in systematic manner. To attract customers towards company,
which is using various method and launching various offers for them its helps to increase
productivity and aches of profits. On the other hand, HR practices like, recruitment and selection,
organising, controlling, managing, training and development and so more. All these are assist to
manage all works and activities related to the business as well as recruit suitable candidates for
selected job (Wright and McMahan, 2011). In this process, easy to determine and identify actual
working skills and capabilities as per the requirements in a person will appoint in company by
HR manager. Better performing employees are easy to complete decided task and achieve goals
in appropriate manner. All these activities and methods are helps to increase productivity and
chances of earn profits as well. This is aids to create coordination between employees, by which
they working in unity of selected work or object, if there is having some issues and problems
which can casually remove them and find out better solution against them.
TASK 3
P5 Importance of employee relation
In an organisation, relationship among the employees play an important role to maintain
relation and make coordination between each other’s. For better relationship should conduct
effective training program by which they can learn something towards their works and increase
their knowledge level as well. There is having some importance of employee’s relation in
organisation, which will following under: Moral obligation: Employees are play a vital role to developing business in systematic
manner, which is all are working for some decided goals and objectives. That's why
require employers should working without breaching ethics, rules and regulation and
does not create discrimination or bias nature between them. It is impacting on
organisation image as well as decrease motivation level of persons. That's why important
to make healthy relationship between all employees, by which increase moral of person
and make coordination as well (Purce, 2014).
 Motivation: healthy employee relationship increases motivation level of workers, by
which they can effectively complete their decided works in appropriate manner. For

motivating employees in business so there is conduct various programmes and activities
like reward system, compensations and different attractive offer. By which they are
attract towards works and they focus on to compete their competitors by better working
performance.
In the other words, employee’s relationship plays an important role in developing enterprise,
achieving goals and objectives, increase motivation.
P6 Key elements of employment legislation
Every business firm should maintain and try to provide healthy environment to its
workers. Apart from this, there are some effective rules and regulation, which have to follow by
all organisation in systematic way. Employment legislations are regulated and controlled by
government related to employment conditions are as follows: The Equality Act 2010: This Act were regulated in 1st October 2010 in UK, as per this
law should equally treat in organisation and should not create discrimination and bias
nature between employees because its impacting on organisation image as well as
productivity. In which includes protection characteristics as per age, sex, gender, religion,
maternity and so more. In some organisation make differences between employees by
which dose not equally pay to them and not provide equal facilities in working
environment. It is create conflicts in organisation, to manage and control all these
struggle there is regulate this act by the government as per this act should equally pay to
all employees as well as provide same facilities and services to them. This helps to create
healthy environment for all over employees also its increase motivation level in
systematic manner, by which they can increase productivity of firm(CHUANG and Liao,
2010). Equality and Human Rights Commission(EHRC): This Act regulated in 1st October
2007 in UK, as per this legislation should provide equal opportunities and right to all
employees in organisation. By which they can do work with proper freedom, if there is
having something illegal activities and discrimination nature, so they can take action
against organisation or employers.
 Data protection Act 1998: As per this law in organisation should provide protection and
security of their information and documents by which they can feel safe and secure
during work. Some businesses are using employee's documents for their own profits and

for illegal activities. That's why government of nation regulate this law, which is had to
follow by all over employees in enterprise (Bloom and Van Reenen, 2011).
All these methods plays an important role in developing business in appropriate manner, which
helps to develop healthy environment as well as assist to provide safety and security to the
towards their works. These rules will remove discriminating nature from employees, all workers
are treated equally and provide equal opportunities to them in their works in business
environment.
TASK 4
P7 HRM practices in a work specific with example
HRM practices are play a vital role in developing business as well as achieve goals and
objectives in effective manner. In which incudes various activity such as recruitment and
selection, training and development, interviewing, hiring and so more. All these activities are
managing by HR manager by using better methods and techniques (Albrech, 2011).
1. Motivation: For motivating employees by using appropriate application and methods, by
which they can complete their works. HR manager using various types of attractive
methods and techniques such as reward system, compensations, entrancing offers and so
more. By which they can improve their working quality and for achieving mission and
vision they can achieve in systematic manner. For example: In ALDI company is the
retail firm, for motivating their employees HR manager conduct various activities and
using different types of reward systems by which they can easy to attract towards
structure and take opportunities for improvement.
2. Recruitment and selection: This is a process in which identifying organisational needs or
requirements for recruiting persons for selected job, as per candidate's qualification and
the overall criteria for selection, a candidate will be selected for interview which is
conducted by HR manager in appropriate manner. For example: HR manager of ALDI
Limited company, which has to conduct a recruitment program for recruiting new
employees in the organisation for managing work and achieving tasks. In this process
candidates have equal chance to participate in the interview process, after that HR
manger of ALDI will filter their resume as per their requirements and candidate's
qualification. On the other hand, this procedure is very essential for any kind of
organisation which helps to identify candidates working experience, knowledge, working

skills and capabilities etc., as per that take corrective action in selecting new staff for the
company.
3. Training and development: Training and development program is essential for evert
company to provide knowledge and skills about new technology and procedures that can
be used in the business. For improvement in working performance and involvement of
employees, HR manager of ALDI can conduct training and development programmes in
enterprise, by which the employees can learn new techniques for the activities of business
and improve their knowledge level as well, which will assist them to attain desired goals
and objective by using suitable methods and technique. For example: In ALDI Limited
company this program and activities provide proper information regarding job,
organisation, by which they can decide their objectives and targets also can choose
appropriate methods for completing works. It helps to improve working capabilities and
skills by which they can effectively complete decided tasks and achieve their goals
(Kehoe and Wright2013).
On the other hand, all these HRM practices helps the management to attain desired goals
ans objectives of the organisation. It aids to improve working quality and improvement of
employees by which developing business in systemic manner as well as improve chances of
earning high profits (Kusluvan and et. al., 2010).
CONCLUSION
As per this research report, it has been concluded that Human resource plays an important
role in developing business as well as managing and controlling all over employees in effective
manner. These are working as pillars in organisation. In the above report Hr practices of ALDI
Human resource management working For maintaining all organisation's activities and works.
How the relations with employees of ALDI can affect the decisions making process of ALDI. In
this process including various activities and function such as recruitment, selection, training,
development and so more. All these are assists to improve working performance and
improvement of worker also provide healthy environment for employees. Have been discussed.
Training and development programmes are conducted by HR manger of the WALMART, by
ALDI oyees level of knowledge will increase as well as they will learn something new about

select task or job or about new technologies and procedures that can be applied to the company.
For managing all the employees in legal manner there are some effective rulers and regulation
by government which every company have to follow.