Human Resource Management Report: ALDI's HRM Practices and Strategies

This report provides a comprehensive analysis of human resource management (HRM) practices within ALDI, an international merchandising chain. The report begins by outlining the core functions of HRM, including staffing, employee development, and employee relations, and how these functions are applied within ALDI to optimize organizational performance. It then evaluates the strengths and weaknesses of ALDI's recruitment and selection approaches, considering both internal and external hiring strategies. The report further explores the advantages of various HRM practices for both employers and employees, focusing on how training, communication, and employee engagement contribute to increased productivity and profitability. Additionally, it examines the importance of employee relations and the influence of employment legislation on HRM decision-making. Finally, the report applies HRM practices within a work-related context, offering insights into how ALDI can further enhance its HRM strategies to achieve its business objectives. The analysis covers key aspects such as workforce planning, recruitment, employee development, and the impact of HRM on organizational success.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION....................................................................................................................... 1
TASK 1....................................................................................................................................... 1
P1. Functions of HRM applicable to workforce planning and resourcing............................1
P2. Strengths and weaknesses of recruitment and selection approaches..............................3
TASK 2....................................................................................................................................... 4
P3. Advantages of different HRM practices for both the employer and employees.............4
P4. Different HRM practices to increase organisational profit and productivity..................6
TASK 3....................................................................................................................................... 7
P5. Analysing the importance of employee relations which influence HRM decision making. 7
P6. Key elements of employment legislation and the impact it has on HRM decision making.8
TASK 4...................................................................................................................................... 10
P7. Application of HRM practices in a work related context.............................................10
CONCLUSION.......................................................................................................................... 12
REFERENCES.......................................................................................................................... 13

INTRODUCTION
Human resource management is the process of managing personnel including recruitment
and development. HRM plans various activities that involve organising strategies that are
performed to optimize the effective results out of all operations occurring in the organisation.
This consists of hiring, training, selection, development, promotion as well as appraisal and
many other programmes. This is the role of HR manager to maintain and control all activities of
company and convey organisation’s messages, culture and terms in the most effective way to
employees (Impact of Human Resource Management on Organizational Performance, 2017).
They create a bridge of communication among members of staff including employer and
workers.
ALDI is an international merchandising chain deployed globally owning more than 7000
stores in approximately 70 countries. Company has approximate 500 stores employed more than
20,000 people only in the UK. This report is studying various functions and purposes of human
resource management in ALDI along with stating strengths and weaknesses of recruitment and
selection process. Also, the main elements and its effect on employee relations that affect the
decision making process of organisation are studied here.
TASK 1
P1. Functions of HRM applicable to workforce planning and resourcing
HRM of an organisation determines the operation and company rules. In order to
maintain macro environment of enterprise, human resource manager play a very crucial part in
companies such as ALDI. HR assist in reducing the issues and trade unions conflicts for
organisation through optimizing various activities in order to satisfy the demands and needs of
workers to increase their efficiency. They control these five functions which aid all operations
and maximise the overall profits (Boxall and Purcell, 2011). These are explained as below:
Staffing
This is major functions of ALDI's HR to organise the section process to coordinate them
on the job profile according to their skills and abilities. To allocate the work according to
specific abilities to a specific person can increase overall profitability of functions of
management of an organisation. It is the duty of HR to assign employee appropriately. With
regard to this, they undertake the following procedures:
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 Planning
 Investigating the profile
 Hiring
 Selection
 Placement
Reinforcement
In order to stimulate the minds of staff members to make them more efficiently, the HR
of ALDI designs and manage promotion and appraisal system in the workplace that aims to
increase the productivity of products through maximizing the quality of worker (Wright and
McMahan, 2011). It not only inspire a specific person but the whole staff members refreshing
the minds. Performance of employee determines the product quality which is important to
manage for which rewarding function is organised that includes promotion, incentive, bonus and
other appreciation work.
(Source 1: Human Resource Management Full Notes, 2015)
Development of Worker
It is organised by HRM of a company to develop the skills AND insure that wither
information and data is conveyed to employee including new market trends and advancement in
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technologies. It is accomplished by organising training and grooming programmes in the
company that evolve the skills of existing worker as well as boost the morals and values of new
worker by informing them about company policies and terms. ALDI keep organising training
programme for the best employee to motivate them in every quarter or 6 month period.
Management of Employee
It is required to keep the policies and terms of organisation managed and modify them
according to the market trends and workplace situation. This is based on maintaining the
administration and alternation of internal environment. It complies with limitations and levels of
statutory.
Administration of Employee Relations
To meet creative and innovative plans and concepts related to any strategies, contribution
of worker in decision making process is add a cheery on management. This involves the process
of negotiation and bargaining, determination of company's guidelines and adoption of
approaches and models according organisation environment. This is the role of human resource
manager to control and administrate the employee relation of ALDI.
These function helps in organising and managing the entire activity which occur in the
workplace as well as helps in motivating ad inspiring the employee form the basic level which
retain them with the organisation. The resources determination and plans are made according to
the needs and demands of worker for which the allocation of resources are done. This is how it
the the major analysis according which designing of plans and assigning of resources is done.
P2. Strengths and weaknesses of recruitment and selection approaches
The process of selection and hiring helps inn designing and assigning worker in
workplace to on the anticipated work profile. Recruitment include verifying, investigating and
employing the candidates in vacant job places for accomplishing company requirements.
Selection whereas the activity of allocating those hired applicants on proper place according to
their skills and qualities. For organising this procedure, ALDI require a budget that indicate the
need of financial resources (Renwick, Redman and Maguire, 2013). Human resource manager of
an organisation his responsible for organising these activities and making the best of it by
employing qualifies workers. Applier have to go through the whole process of recruitment
organised by the HR of cited organisation to get selected. It is some positive aspects as well as
negative aspects which determined the strength and weakness of ALDI.
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Strengths
ALDI optimize a different process of selection and recruitment within the organisation
that pursued by every applicant to get selected. There are different positive impact of this
procedure for which it is being undertook by the cited company. It helps in seeking best and
most qualified candidates from the pool of appliers. The external hiring approach helps in
facilitating new innovative ideas and concepts which helps in finding bets outcome out of all
activities. It indirectly aid in incrementing the amount of sales as well as overall performance of
company. The strengths of the approaches used for recruitment process is thy helps in meeting
the specific job profile and suitable applicant for according to the requirements.
Hiring process within the company provide cheaper and quick recruitment to company
that save the cost of training and development as the employee are friendly with the workplace
or cited company's policies (Rees and Rumbles, 2010). Thus it is cost effective process and save
the time and assets as well as efforts of HR rendering professionals to the company.
Weaknesses
The process of recruitment and selection is very expensive and time consuming that not
only need the hard efforts in rectifying the applicant profile from the pool of candidates but also
require marketing and promotion expense from company as it is needed to advertise of the
vacant job profile on various media platform. As well the selection process may not able to
uncover the abilities of worker.
Recruitment from internal environment restrain to optimize the new ideas and skills in
the workplace as the company already is aware of weakness and strengths if employed
candidates. Major weakness of those approaches used selection and hiring is it is hectic,
complex, and time consuming process which is not financially and practically beneficial in case
the employee doesn't suit the profile or leave the work without sue t any cause.
TASK 2
P3. Advantages of different HRM practices for both the employer and employees
Management of human resource assist in designing. Organising, staffing, implicating and
controlling the whole practices that occurs consisting management, hiring and maintaining
relations of employee and employers. HRM facilitates the opportunities to develop their skills to
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members of staff by coordinating programs and practises as well as creating more comfy and
friendly environment to work. It is the duty of HR of ALDI to satisfy expectations of workers by
rendering them facilities, formation related to operations and resolve their issues based on wage,
holiday, appraisals etc. They communicate with labour of ALDI building a bridge between both
employers and employees by making them participate that in various activities together. They
provide some benefit top both entities worker as well as employer of firm (Noe and et. al.,
2012).
Employee’s Benefits
Grooming and Training
Human resource manager arrange programmes and activity recalling the requirements
and preferences to evolve their qualities and knowledge related to work. Employee are prime
assets of ALDI, theretofore, this aid enterprise in exploding quantity of gross revenue and profits
by encouraging worker's user service skills.
Resource of Information
Human resource manager of ALDI is responsible to communicate the message of
company and other information related to employee's wage, holiday, salary slips, bonus and
other (Makri, Hitt and Lane, 2010). In order to having any issues with the system or workplace,
they can communicate the HRM of company which is accessible and quickly resolve issues.
Stimulate Employee
Major benefit which employee is rendered by the human resource management activities
is motivation by organising grooming and training programmes that not only improve their skills
and abilities but also develop the personality and interpersonal skills. This enhances the overall
performance of workers making them more professional.
Employer’s Benefits
Interacting Culture
Human resource management indirectly increase the overall performance of an
organisation. This is proven by the survey those enterprise whose personnel is controlled by
HRM is more effective and achieved businesses than those who do not. Employer of ALDI
convey the message to HR who interact and communicate the entire information to staff
members in effective way as well as resolve issues related to them. Thus, employer is facilitated
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by HR as it is not required to directly communicate whole message to the employees of ALDI
which are large in amount.
Aids in Decisions Making
The more views, and ideas, the more qualifies and dispersed concepts of strategies a
person can get. Human resource management helps in facilitating more creative and innovative
ideas in a specific matter as it increase the participation of employee in decision making
procedure which helps employer in improving their thoughts by making more options. It also
helps in making effective designs of plan for business strategies.
Retain and Recruiting Employee
Recruitment is a very complex process. Human resource management assist the employer
in hiring process and selecting them for the effective job profile accordingly. Also, HRM
manage some practices in order to sustain the curiosity of employee in the same job profile to
retain them in a specific work (Kehoe and Wright, 2013). Human resource management helps in
these most essential process of company.
P4. Different HRM practices to increase organisational profit and productivity
Human resource management influence the performance of employee of ALDI as they
are very crucial individuals of an organization. The major aim of those activities are improving,
attracting and controlling the workplace related practices. Thus it directly impact their
productivity and profitability of company. ALDI's performance and productivity highly
influenced by the human resource Dept. of company that have increased the amount of profits
and revenues. Here is explained how the HRM make increment in company:
Improve Employee Abilities and Performance
Human resource management organise activities and practices in order to motivate their
employees as well as increase the skills in working field. They provide working and supportive
environment which helps in stimulating employee. This step of HR Aids Company’s in
developing overall productivity that indirectly raise the revenues.
Execution and effective direct Settings
It is important for development of organization like ALDI to having a proper direction
and guideline that shapes visions, mission, goals, and objectives of enterprise. Human resource
management coordinate recruitment and selection process after which they hire and select the
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perfect manages for organisation that lead to better productivity and revenues (Keep and James,
2010).
Effective communication grouping individual and team
ALDI's assist in forming and achieving groups or team targets that have been set by
managers of management team. It is the duty of HR of an organisation to communicate the
message in most effective manner to that can make flow in communication.
Rewarding to enhance performance
When company begin the reward function including monetary and appraisals along with
effective performance of worker, this enhance their abilities and skills that indirectly increase the
productivity of company services referring to better profitability and position of brand. HR of
ALDI award the best presentation in incentive form every month.
Cooperation and sharing
When other companies or inverters funds in company, it directly indicate to enhancement
in the performance or productivity. This raise the value of company share in market and
demands of products. Human resource management improve the ways of sharing and
collaboration formalities and terms.
Developing skills of employee
To maintain the productivity, competing the competitors in market who are providing
same services in lower cost that can be a threat for organisation (Harzing and Pinnington, eds.,
2010). For beating the competitors, company requires to develop major changes that can be
attained with the help of more create and skilled employees.
TASK 3
P5. Analysing the importance of employee relations which influence HRM decision making
Managing employee relation are significant for a company which helps in expansion in
geographically and demographically of company. UK have introduced with this new term i.e.
industrial democracy which facilitates some rights and legislation in regard of employee for
protecting them from exploitation and increase their participation in decision making process.
Worker are essential part of an organisation which execute the entire plans and design that is
implemented by the leader or managers of organization. Some of value of ER is explained
below:
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Sharing of Work
To provide the ease in accomplishing target it, allocation of work in different small task
can help in achieving competitive objectives of enterprise more easily. Worker assist ALDI in
meeting the major goals by aiming to the major activities which can access to success. To
manage the employee of organisation HR make the decisions in favour of them that can motivate
their morals, and work performance.
Reducing Conflicts among Workers
Good relation with employee enables the achievement to enterprise reducing the barriers
and conflicts from organisational ways (Gatewood, Feild and Barrick, 2015). It assists them in
performing activities with better confidence and mood. Human resource management make
better decisions for sake of workers which facilitate company good works and better quality. To
improve these, HR make those plans that can influence members of staff. Conflict resolution
helps in managing employee relation through maintaining the workplace in harmonised and
organised way providing them same purpose.
Earn the Loyalty
Pleasant and flexible working environment provide interactive workplace within a
company which lead to curiosity and great working spirit among workers. This not only increase
the productivity but also increment in sales. Human resource management make alternation or
modifies the policies of enterprise to make them suitable according to the employee. Thus, it
impact over the decision of HR.
Interact Effectively to Ensuring Employment Legislation
Managing is important to ensure that the employee legislation are being comply in the
organizational structure which is essential for sustaining in UK business industry. This motivate
employee by providing the worker quality and other rights and treat them equally (Farndale,
Scullion and Sparrow, 2010). HR makes sure that the activities which is obtained by enterprise is
according to laws and regulation.
Hence the decision making of human resource manager is influenced by employee
relation management as HR's main purpose to maintain and manage the hums resources of cited
organisation.
Trade Unions and Collective Bargaining
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Trade unions avail organisation in managing employee relation by reducing issues and
conflicts between employee and employee. This builds a bridge among community, employee
and referred company as well as make sure the enterprise is complying rules and regulations
under their policies. Collective bargaining whereas render the opportunity to represent their
views and choices before joining the company. These reduces the issues by increasing the
activities of employee engagements in decisions making of firm.
P6. Key elements of employment legislation and the impact it has on HRM decision making
European Unions and EU have catered the revolutionary changes in UK market
facilitating some legislation to the workers in the industry introducing the new terms i.e. is
industrial democracy. It refer to liberty of express and fight for the rights to every individual
who is evolved in business. These laws provide some rights to employee to participate in every
function, activities or operations in an organization. These are main employment acts explained
as follow:
Equal Pay Act
This act was firstly introduced in parliament of Britain 1970 to provide justice to women
in regard to wage allotment. According to this act. Men and women or others should not be
discriminated in workplace while assigning the amount of salary. They have rights to get the
equal pay of their efforts. The provision to modify this act is depend on the situation.
Minimum Wage Right
Minimum wage act was enacted in United Kingdom in 1998 in which state have
determined the amount of salary in the country which every employer have to comply (Daley,
2012). It is distinguished according to age factors i.e. above or under 18 age worker should be
paid 5. 60 Euro, 21-25 age employee should be getting minimum 7. 05 Euro whereas more than
25 age person must provide 7. 50Euro. In case of lesser than these amount figures, it will
considered as exploitation of labour.
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(Source: ' Brexit' – the impact on employment rights and benefits, 2016)
Worker Right Act
According to this act, the labours are allotted with some rights and legislation while
working in company which includes minimum holidays, job and health security, fair appraisals
and others. This was executed in 1996 which is modified according to the times and trends.
Equality of Employee Act
It was formed in 2010 was replaced on Race relation act 1976 which was made to
provide the fair opportunities to develop the abilities and skills of an individual working in a
business. No discrimination according to race, gender and other factors should be made and
every one should be behaved equally. In case of any worker victimized of harassment or
favouritism, the company will pay the remedies amount.
Disability Discrimination Act
To comply the respect for those workers who are disable this act was enacted by the
parliament of UK in 1995 which state that the organisation should respect the disables and they
should not be distinguished on any levels on the level of their disability. In case of
discrimination they would be claimed as crime (Chelladurai and Kerwin, 2017).
Act of working time
This act was first introduced in 1997 which was later amended by parliament
accordingly. In this act, the time of work of an employee should not exceed more than 48 hours.
In case of extension either enterprise have to pay the employee or it will considered as
exploitation of labour.
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These acts and rules helps in management of employee relations which assist an
organisation as well as states in maintaining the connections with the workers. It facilitates the
rights to the labour even in the enterprise which is useful for both entity. It also affect the
decision making process as the Human resource manager follow these regulation before
organisation and coordinating any activity as ell determine the organisation policies according to
that.
TASK 4
P7. Application of HRM practices in a work related context
Human resource management is related to the personnel of an organization which
determines the wage, terms, holidays, promotions and other activities related to them. Main
motive if HRM in to improve the workplace of an enterprise to maximise the impact of entire
operation as well as improve productivity of functions undertook by ALDI. To work more
systematically and organised way. It facilitate purpose and target to employee of cited company
which help them in attaining target within a period of time. To identify the interest, needs and
preferences of workers, HR perform feedback activities, behaviours and attitude survey which
create more gratifying workforce (Brewster and Hegewisch, eds., 2017). They are responsible
for communicating business's mission, vision, goals, objectives as well as policies of firm along
with its culture in effective and coherent way. It aids them meeting the target results within a
period of time assisting directly in maximizing profits.
Human resource manager plan their activities in appropriate manner to maximize the
impact. Human resource management develop those approaches which can influence the
workplace more positively. Here are various impact of HRM in ALDI, few of them are briefed
below:
Recruitment and Selection Process
Selection and recruitment procedure helps in seeking creamy applicant from the jar of
milk. ALDI requires some new employees on the place of existing or fresh profiles after
expansion which can helps them by contributing their best efforts. Human resource management
assist in hiring and positioning workers on most suitable place to maximize the overall
performance.
Acquiring of Talent
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Recruitment procedure is most helpful that help in shaping proficient appliers retained by
Human resource manager of ALDI. This aid in meeting fixed goals and aims by encouraging
quality activities in effective manner in cited organisation.
Conflict Resolution
ALDI is big organisation with 7000 stores in 70 countries. The large staff contains
different interest, preferences and choice which sometime create issues in workplace (Beardwell,
and Thompson, 2014). Human resource management of an organisation helps them in solving
their issues and disputes emerged in internal environment of cited enterprise. They analyse,
examine whole situation and come up with best possible solution of activities.
Grooming and Development
These practices helps in grooming of overall personality of worker making them more
professional from amateur. ADLI is the third largest retailing company in all over UK which
provide proper training and development programmes to their employee to groom their entire
performance levels which indirectly assist in improving productivity of company products. For
this, they optimize new techniques and methods and implement them for development of
workplace.
Work Flexibility
ALDI facilitates their employee flexible working environment such as shifting of
schedule, work from home, providing holidays, and others. The schedule of work is bendable
suiting the situation or circumstance (Alfes and et. al., 2013). It helps in retaining working
through creating curiosity in work which is useful for further benefits.
CONCLUSION
From this concluded report it is coherent that functions of human resource management
is staffing, recruiting, promotions, development and managing ER helps in fulfilling the
organisation purpose of a company that indirectly influence the productivity and profitability.
HR determines the company policies with employee undertaking the negotiation process to
reduce the conflicts or disputes within the workplace. For reducing the issues they organise
various activities including team work programs, occasional and extra curriculum activities
which is the most crucial part that helps in creating friendly and flexible workforce which is
made in order to evolve the skills and abilities of an employee. Small as well as large enterprise
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should manage HRM in their administration Dept. to manage their personnel that aids in relating
different recognition in society.
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Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
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Daley, D. M., 2012. Strategic human resources management. Public Personnel Management.
pp.120-125.
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Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
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Online
Impact of Human Resource Management on Organizational Performance. 2017. [Online].
Available through: <https://www.omicsonline.org/open-access/impact-of-human-
resource-management-on-organizational-performance-2168-9601-1000213.php?
aid=85645>. [Accessed on 26th September 2017].
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