Comprehensive Analysis of Human Resource Management in Aldi

This report provides a detailed analysis of Human Resource Management (HRM) practices within Aldi. It begins with an introduction to HRM and its functions, emphasizing workforce planning and resource management. The report then explores various HRM practices, including recruitment and selection approaches (internal vs. external), highlighting their strengths and weaknesses. It further examines the benefits of different HRM practices for both employers and employees, such as retaining qualified employees, fostering positive behavior, employee development, and improved performance. Finally, the report assesses the effectiveness of HRM practices on Aldi's profit and productivity, focusing on innovation, employee motivation, and effective communication. The report covers topics such as benefits and compensation, planning, recruitment, staffing, and selection. This report provides a comprehensive overview of how Aldi utilizes HRM to achieve its business objectives and maintain a productive workforce.

Human Resource Management
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Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................4
P1) Purpose and function of HRM about workforce planning and resources in Aldi.................4
P3) Benefits of different HRM practices in Aldi for employer and employee............................9
P4) Effectiveness of different HRM practices for profit and productivity................................12
TASK 2..........................................................................................................................................14
P5) HRM decision making and employee relation....................................................................14
P6) Key elements of employment legislation and impact on the HR decision making............16
P7) Applying HRM practice in the work-related context of Aldi.............................................18
Conclusion.....................................................................................................................................20
Referencing....................................................................................................................................21
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Introduction
Human resource management is the term used to describe the formal system device for the
control of people within the organisation. In this study, Aldi has played an important part as an
organisation to explain the functions of HRM. The importance of HRM is to improve the
potential ITI of the employees for different achievements with objectives and goals. The
interactive out the personnel management has controlled the employee who was considered as
the general theory for managing the employees. The revolution has brought through HRM by
gaining satisfaction in the employees as well as in the organisation. As HRM is a vital part of the
organisation nowadays, so the first segment has introduced the function of HRM with different
approaches to selection and recruitment. The HRM practices have helped to understand the
organisational profit and productivity. Also, the application of HRM practices and legislation
about work has helped to give a broader view of benefits of HRM.
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TASK 1
P1) Purpose and function of HRM about workforce planning and resources in Aldi
Aldi has realised that the critical success of the business is the people and the employees. It is
essential for an organisation to understand amount an efficient HRM system that has focused on
delivering an industry by leading the training packages. The large business of Aldi about
resources like materials, equipment, Technology, employees and customers has aimed to have
the right skills to achieve the aims and objectives of the company (Armstrong, and Taylor, 2014).
Human Resource Management is the business function that has focused on the aspect of Aldi.
The department had and showed the efficient management among the employees by delivering
the overall business plan and productivity.
The term workforce planning and succession planning are often used interchangeably. It has
helped the management of Aldi with a specific way of alignment in the workforce with the
business plan and addresses the current and future workforce issues.
The primary functions concerning workforce planning and resources of Aldi are:
Benefits and compensation: The human resource development department have introduced
good salary and training to the Employees. It was also benefit is the Employees with insurance in
the job, bonus, pension plan, commission as well as medical assessment for family andownself.
Improvement in the department as well as among the employees: Aldi has a decentralised
organisation structure so the organisation should enable on expanding the Human Resource
Department and improve the composition. It can be more cost-effective and train the employees
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with fun. It will contribute to the professional development of the employees as well as the
Human Resource Department (De Bruecker et al. 2015).
Planning: The organisation focus on the appropriate numbers of the candidates at proper time
and place. The planning Process has helped to manage the correct individuals for the
organisation and with the current workforce and resources.
Recruitment: Aldi generally Looks for eligible candidates with diligence, honesty, educated,
dedicated and the team player.
Staffing: The stuffing of right can be reduced very necessary however Aldi always invested in
graduating the training program to the fresh graduates. This can help to improve the proficiency
in the work.
Selection: The recent development strategy has aimed to fill at least 200 graduate position for 25
new stores in a year. Aldi will do this with smarter shopping employment opportunities, and Brie
tells competition in the Australian communities.
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Figure 1:Functions of HRM in the organisation
(Source: De Brueckeret al. 2015)
P2) Explaining the strength and weakness of different approaches to recruitment and
selection.
Recruitment can be termed as the fundamental method of the Human Resource Management
with a defined planning process to meet the objectives of the business (Marchington et al. 2016).
In Aldi, the primary function of Human Resource Management in recruitment was to understand
the job design, performance appraisal and Management, career planning, promotion and transfer.
Aldi has focused on two different approaches Internal and external recruitment. Internal
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recruitment is the process in which a company will use internal sources of recruitment to fill the
vacancy with an existing employee of the business. The method of external recruitment deals
with a new search for new candidates outside the organisation so that the position can be filled.
Figure 2: Recruitment approaches
(Source: Marchington et al. 2016)
Both the recruitment approaches of HRM and has few strength and weakness:
Internal recruitment External recruitment
Strength Weakness Strength Weakness
The internal
recruitment process is
much more
comfortable and
Aldi has lost new ideas
or energy coming into
the business through the
internal recruitment
Aldi with innovations
of Technology and
products has brought
new calendar new
The processes were
quite expensive with a
cost for advertising the
job and arranging the
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quicker to identify the
high calibre candidates
from various
candidates.
The process is, and
thus Aldi has
advertised the job
through internal
recruitment.
The organisation has
adopted to promote the
candidates through
IJPs and promotions
which is the process of
internal recruitment.
The recruitment
process has helped the
management to
understand the mind
and the hard work of
the employees.
process (Mayes et al.
2017).
After promoting the
employees, most of the
employees left the
organisation and object
for a better
organisation.
The internal recruitment
limits the potential
number of candidates.
It has created
resentment among the
employees who feel that
they were overlooked
for the promotion.
ideas to the business
through external
recruitment.
In external recruitment,
Aldi has chosen the
best candidates as there
is no limit to the
number of candidates
for screening.
The company has
exposed the diverse set
of skills and
experiences(Olander, et
al. 2015).
Aldi has used the
recruitment agency,
referrals and
Advertising in the
social media.
interviews.
It has taken a long
process for the
organisation to choose
the best candidate.
The organisation has to
take a risk as the
management were
unknown about the
potentiality of the
candidates in the work
culture.
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The selection process refers to the steps that are involved in closing the desired people with right
qualification to fulfil the current or future job openings. After recruitment, Aldi follows aptitude
test, quick test, personality test and face to face interview to understand the candidates better and
select the desired candidate. This has helped the organisation to predict the future performance of
an individual by following the standard tools and eliminating the biases in the selection process
and has adopted two approaches.
Reliability: The selection process was validated and was measured by different statistical
methods. The organisation has presented the correlation and Coefficient from which has
arranged from 0-1. However, the disadvantage is that the test can be sometimes hectic and
improper as most of the candidates get tensed. But it always helps to reduce the error in
measurement as much as possible (De Bruecker, et al. 2015).
Validity: The term validity refers to the test measure which was closely linked with the intended
focus. Certification test can help the employees to understand the specific job or occupation and
the organisation to understand the competitiveness of the individual. This processor has helped to
identify the job task and behaviours, however, the disadvantages that it cannot measure the task
or skill accuracy of the individual.
P3) Benefits of different HRM practices in Aldi for employer and employee
The human resource management is used by both the employers and employees in Aldi. It is
done so that there can be a control in the activities and improve the performance of the
organisation. The typical activities of HRM in Aldi include training, employee benefits
administration, paying, hiring and also firing.
The benefits of different HRM practices in Aldi are:
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Retaining qualified employees: Organisation has provided easy access and flexibility with
employee benefits so that they can manage the risk and burden in the organisation. A good hike
and promotion facilities have helped to retain the qualified employees (Guest, 2017).
Positive behaviour: Aldi has provided the positive working environment unfavourable benefits
for the employees through the practice of HRM. It has helped the employees to get motivated
and improve with the more productive in the organisation. The culture of the organisation has led
to complete satisfaction which standard laws and regulations.
Developing the employees: HRM Practice has satisfied Aldi by increasing the employees and
employers with edit values in the competitive market. The training and certification courses
especially in the Lean Six Sigma, has raised the knowledge of the employees and skills.
Improving the performance: Aldi has motivated the employees with various rewards according to
their performances. This helps maintain the alignment between the employers and the employees
and has helped the organisation to recognise the potentiality among the employees (Landy, and
Conte, 2016).
Developing relationship: Maintaining a good relationship in the work environment has helped
every individual to a game on success for their career. Thus, Aldi has implemented different
games like quiz competition, interoffice challenges etc. to maintain a strong bond with every
employees and employer. It has helped to increase the performance and take necessary action if
there is any conflict.
Building a flexible workplace: In Australia, Aldi focused on the current workers of the
organisation with different conditions and needs of the employees. The department understood
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the diversity and the skills of the employees and thus has adopted strategies to mention more
flexibility. It was also focused on the safety of the employees by implementing safety regulation
laws for the workers so that it can bring positivity in the work environment (Price, 2016). The
composition of the teamwork and accountability method has helped in customising the aspect of
the job for their lifestyle.
Motivating the workers: The managers in the organisation has maximised the performance of the
employees so the employers are trying to recruit and promote managers who can manage to work
effectively and efficiently. Aldi with different nature and practices has motivated speech Walkers
in a positive way which has increased the thinking of being unique.
Figure 3: HRM practices in Aldi to satisfy the employees with different benefits
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(Source: Price, 2016)
P4) Effectiveness of different HRM practices for profit and productivity
The effectiveness of HRM for Aldi has helped with increased profits and productivity. The
practice of best human resource management has not only focused on the productivity of current
year but also has focused and development in the future.
Figure 4: Profit of Aldi
(Source: Boxallet al. 2016)
Innovation and high-performance employees: HRM has promoted an innovative environment
and motivated their employees for better facilities in Aldi (Boxall et al. 2016). Dealing with the
vendors and operating in the back office my understanding the employee-customer-profit chain
has helped the performance of the employees. Introducing of incentives has also contributed to
motivate the employees who have increased the production of the organisation.
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