Human Resource Management Report: Aldi Case Study & Analysis

This report delves into the core aspects of Human Resource Management (HRM) by examining the practices of Aldi, a leading grocery retailer. The introduction sets the stage by defining HRM's role in organizational planning, development, and implementation. Task 1 explores the purpose and functions of HRM, categorizing responsibilities into hard and soft aspects, and highlighting functions such as planning, staffing, employee development, labor relations, and compensation. The report then analyzes various approaches to recruitment and selection, including internal and external sourcing, discussing their strengths and weaknesses. Task 2 focuses on the benefits of HRM practices for both employers and employees, emphasizing constructive behavior, motivation, and building a flexible workplace. The report also examines the effectiveness of different HRM practices in raising organizational profits. Task 3 underscores the importance of employee relations in HRM decision-making and the impact of employee legislation. Task 4 applies HRM practices within a work-related context. The report concludes by summarizing the key findings and emphasizing the critical role of HRM in fostering employee engagement, driving organizational success, and aligning with employment standards and laws.

Human resource-
management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Purpose and functions of Human Resource Management.....................................................3
P2 Pros and cons of various approaches to recruitment and selection........................................5
TASK2.............................................................................................................................................6
P3 Benefits of HRM practices to employer and employee.........................................................6
P4 Effectiveness of different HRM practices in raising organisational profits..........................7
TASK3.............................................................................................................................................9
P5 Importance of employee relations in HRM decision-making................................................9
P6 Elements of employee's legislation and its impact..............................................................10
TASK4...........................................................................................................................................11
P7 Application of HRM practices in work related context.......................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Work related to planning, developing and implementing all the policies of the
organization into a systematic manner is included in Human Resource management. It is an
important branch of management which deals with people in organizations and their relationship
with other members of company. Human resource management process is concerned with
recruiting and developing workers of a firm in such a way so that they become an asset for the
organisation. In this report reference to Aldi will be taken, which is one of the world's leading
grocery retailer, it was established in 1913 where it was the first retailer who offered self-service.
In addition to this, in this report, Functions, purpose and benefits of indulging in various human
resource practices will also be discussed (Becker and Huselid, 1999). A reference regarding
influence of human resource management on employee relations and decision making is
considered.
TASK 1
P1 Purpose and functions of Human Resource Management.
Human resource is a department which helps an organization to reach its bottom line
results. Work force management in Aldi Einkauf GmbH & Companies, oHG, is the division of
management which majorly focuses on all activities which relates to its employees. Present
structure and composition of company is so vast that human resource plays a crucial role in
growth and evolution of manpower (Doz and Prahalad, 1986.). Moreover, major responsibilities
of human resource can be categorized under two ways:
1. Hard: It emphasizes on quantitative aspects and enrols in grandness of business needs.
2. Soft: Importance of behavioural aspects of workforce is looked after and aslo developed
and nurtured in order to gain a competitive edge.
This department judges the capabilities of employees and places the right person at right
job. Moreover, there are various functions of this department which includes: Planning: One of the functions of Human Resource manager is to plan adequate man
power requirements in their organization. Under this head, an estimate of manpower
requirement is done by department of human resource. The types and number of
employees which are required for full-filing organisational object are ascertained (Guest,

1997). Basic planning strategy for staffing and improvement is taken in cerebration
under this head. Staffing: Key areas served in this function is in respect to recruitment and selection of
manpower of company. It's a personnel function which attracts qualified people for filling
job vacancies, whereas selection function deals with the placing appropriate person at the
required job position. Employee development: it is concerned with providing knowledge and skills to newly
appointed personnel in organisation. A required mechanism is provided by trainer in
order to enhance the degree of performance of appointed person. Aldi provides extensive
orientation practices so that employee indulges smoothly into the working culture of
company. Labour relations: Human resource discipline attempts to strengthen and nurture positive
relation between employee and employer, while measuring the degree of employee
engagement and balance it with job satisfaction level.
 Compensation and benefits of the employees: All concerns regarding remuneration and
wages of staff of organizations are handled by HR. Furthermore, setting up of
compensation structures and pay practices are all done by this department.
 Safety and security: Under OSHA board (Occupational Safety and Health Act of 1970),
safety at workplace has been considered to be an important aspect. And provision of
same shall be the responsibility of employer.
The personnel management department of Aldi ensure that performance of staff is
measured and evaluated from time to time in order to ensure all members perform their work in a
manner which ultimately promotes the objectives of firm (Harel and Tzafrir, 1999). Likewise, a
well-managed human resource department provides the company with its best valuable resource
I.e its manpower.
It is essential for a business enterprise is to maintain its performance in the longer run. ALDI is
one of the leading firm in retail must be required a highly and talented staff in order to provide
competitive advantage in the market. There are following function of ALDI which is mentioned
below:
Workforce planning: Today, HR is one of the key function for top management because its
directly linked with the success of the company in the longer run. ALDI is planning to expand

their number of stores in UK and other part of the world. It required a large number of staff
which can provide in order to gaining strategic advantage. This is one of the complex task for
HR department is to forecast the future HR demand and tries to maintain supply a minimum
workforce for the future.
Recruitment and selection: This is another function which is related with the identify various
sources of recruitment and selection. There are two types of approaches internal and external
which can be used by the company in order to recruit a skilled and knowledgeable workforce for
the future. ALDI is a multinational corporation who are generally using campus placement which
is one of the best approach to select future staff for them.
Training and development: Business environment is dynamic and change over a period of time
which required to provide training to compete these changes. For example, ALDI required to
implement new CSM is their warehouse which required to provide an effective training and
development program in order to enhanced staff skills and capabilities.
P2 Pros and cons of various approaches to recruitment and selection.
Majorly, a true human resource specialist's technique is measured in terms of its work
regarding hiring and retaining the employees in organisation, while avoiding bad recruitments.
The level of high employee turnover rate should be reduced by the actions of human resource
management (What Is Human Resource Management? 2017). The whole procedure of locating
and encouraging people to apply for anticipated vacancy openings is also a key responsibility of
a manager. Various methods of recruitment and selections are stated below with their strengths
and weakness:
 Internal sourcing: Under Intrinsic recruiting, any vacant position within organization is
full-filled by an existing and capable employee from same company. Cognitive operation
concerned with background check of a new employee can easily be avoided by internally
sourcing an employee (King, 2000). Thus, time and money both are effectively saved.
Because of this factor now a day, more companies now prefer to recruit internally
without advertising the vacancy in outside world. Narrowing this concept various types
of recruitment techniques are mentioned including:
1. Vertical sourcing
2. Horizontal sourcing
3. Inter department sourcing

Certain Strengths and weaknesses of different approaches of recruitment and selection
are mentioned below:
Strengths Weakness
 Requires less time to fill vacated
positions.
 No new ideas are introduced in
organization.
 Less expensive method.  Lethargic and dizzy atmosphere
prevails with the existing employees.
 Time is saved from doing background
checks.
 No new innovation or creative idea is
talked upon in company.
 External sourcing: In this method of recruitment, advertisements for vacant positions
are done through various ways outside the company. Fresh employee candidates are
searched and called for recruitment procedure (Rousseau and Greller, 1994). Tools and
techniques like advertisements on radio, newspapers and various other public platforms
are made so that people get to know about the vacancy in firm. Recruitment made
externally can be done through various methods like:
◦ Printing on-site noticeboards
◦ Publishing in journals
◦ Affiliating with recruitment agencies
◦ Approaching university and schools
◦ A recruitment fair or exhibition
Over all strengths and weaknesses of external sourcing are mentioned below:
Strengths Weakness
 External sourcing is helpful in
providing new outlook to the company.
 No assurance of suitable candidate is
found.
 Several tools can be used to find out a
match for vacant position.
 Background check is always a big deal
when recruiting from an external
source.

The role of HR department is plays a prominent role in the success for an enterprise. It provides
benefits for both employer and employees. It is a positive process of searching for potential
employees and stimulate them to apply for job in an organisation. Two ways of doing
recruitment process, Internal and External source of recruitment.
Internal Recruitment: This form of recruitment believes that best employee can be found
within the organisation itself. Whenever or wherever there is a vacancy fill it exiting workforce.
Ex: Transfer, Promotion etc.
Strength of Internal Recruitment:
 ADLI can recruit within the organisation which is cheap and easy.
 ALDI workforce are already familiar with the business environment and culture.
 Motivating the current workforce by promoting them or giving appraisal to them.
 ALDI is already aware of merits and demerits of their current employees so there is no
chance of loss of business secrecy.
Weakness of Internal Recruitment:
 ALDI limits with the number of potential workforce.
 ALDI discourages the capable person from outside the business which are having lots of
innovative ideas.
 It automatically creates another vacancy.
External Recruitment: When the exiting workforce is not suitable or does not have the enough
potential for the required vacancy, in such situation organisation hire people from outside the
business. Eg : Advertisement, Employment Exchange, Recommendation of Existing employees
etc.
Strength of External Recruitment :
 ALDI is going to be aware with people having innovative ideas and creative thinking.
 Deals with much experienced people who bring new methodology.
It maintains team stability.
Weakness of External Recruitment:
 Time consuming and longer process.
 Proves to be costlier to ALDI in terms of monetary value.
 ALDI have to face problem regarding maladjustment. P4 Effectiveness of different HRM
practices in raising organisational profits.

TASK2
P3 Benefits of HRM practices to employer and employee.
Relationships between employer and employee are based on trust, openness and
willingness to co-operate to various points of view. Exercises are attempted by HR in order to
make individual and administrator prosperous and cultivable in their work (Rousseau and
Greller, 1994). Payroll management, recruitment, training and employee benefit administration
are all dopes of human resource management, following which a manager works, keeping an eye
on both parties I.e worker and employer, by offering various deals: Promoting constructive behaviour: HRM practices aims and affirms to enforce and
award desired behaviours of employees at workplace. Furthermore, behaviour is not a
concept that can be easily defined and conceptualized. But in general sense behaviour in
company shall be according to the culture which it follows, where culture of the company
should be according to UK’s employment standards and laws. Motivating workers: An effort by HR team in Aldi retail is made so that they can
constantly motivate employees of institution in order to inject in them a feeling of
positivity and belongingness (Schuler and Jackson, 1987). This can be done by offering
relevant positions at job to member so that they feel contended and motivated throughout
their time at workplace. Building a flexible workplace: In present scenario,diversity has been found in working
habits of the employees as well. Hence a need of acting according to the transition in the
demographics is required, as there are various sorts of people including part time workers
and partially disabled workers. Flexible working environment, working schedules,
desired locations should be provided to the employees in order to retain them from
leaving the company.
 All round development of firm: As the human beings working under Aldi's roof are the
real intellectual property of the company, therefore a constant effort is made by the
human resource department so as to keep the employees of firm integrated and motivated.
Any fresh technology or working method is shortly introduced to its workers so as to

ensure an all-round development of the employees and greater productivity of the
business.
Over the time various researches have ensured that impact of
employee involvement practices increases profitability of a company. It has
been found that big companies which use Human Resource have boasted
62% (approximately) of higher return on sales in comparison to companies
who did not have manpower planning department. Although there is no
direct relationship between revenue generation and Human Resource but it
certainly helps to improve effectiveness and efficiency in organisation due
to which company generates productivity (Schuler, 1986.). Clear indications
relating to organisations which use HR planning, like recruiting new
employees and telling them work to be done , achieve high returns over a
period of time. Further more a negative notion relating to HR as a waste of
money has been found fallacious. Rather approximately 20-25% of firms
total value is enhanced by the working of human capital practices.
In addition to above there are mainly two types of techniques through
which an HR builds profitability:
 By cutting cost: this being a typical HR activity provides a speedy and
effortless way to boost earnings of an organization. And the most
common way to do so is to cut cost is to utilize technology to provide
employee self service. Aldi saved over 45 million dollars by investing in employee
self-service. A computer based online system has been provided to
managers and employees of the cited firm to access personnel
information which helped in saving 1.2 million in annual printing cost.
 Helping to generate revenue: Researches show if cost cutting doesn't
help in building profitability then there are other ways which can
help. Efforts in terms of strategic planning and HR transforming can
help (Yammarino and Atwater, 1993). Ability of a manpower planner to
select and retain right person at right job is also a way of generating
revenue through in-direct means.

Therefore, traditional thinking in relation to 'HR as a cost is to be
minimized' should be dis-regarded and a special initiate for investing in
human capital should be made in order to enhance the sales and increase
the earnings of an organisation. Certain practices of crew which helps organisation
to increase its profit and productivity are described below
Safeguard employee's interest: It is duty of administrator to defend and promote
involvement of employees. This is a major purpose of human resource management, to save
employees from exploitation and other unfair practices. Managers should give equivalent rights
to employees to give their opinions and though so that they feel themselves as crucial part of the
structure and thus perform their duties in a way so that aim of profit maximization can be
achieved by company.
Human resource department is too significant for each and every business enterprise in order to
sustain and increase organizational profit and productivity. There are following HR practices
which provide a long term profit for ALDI:
HR forecasting ALDI operates its business in UK which is a competitive market
due to large number of players such as Primark, Sainsbury etc.
Therefore, company is planning to expand its business in to
emerging market which need to conduct forecast HR
requirement so that they can provide competitive advantage.
Recruitment This is one of the major issues for every firm is to analysis the
different sources of recruitment. HR department is identifying
those approaches which are cost effective and increase revenue
of the company.
Training Training plays a vital role in order to increase productivity and
efficiency. ALDI conduct training season for their staff on
regular basis which can enhanced their effectiveness towards
their work.
Motivation There are various tools and techniques which can be used by
ALDI so that they can increase employee’s motivation level.

TASK3
P5 Importance of employee relations in HRM decision-making
Organizational success directly as well as indirectly is based on employee relations in
company. Provision of safe working environment, involvement of workers in decision making,
incentives for motivating employees and effective communication should be practised in order to
achieve higher growth and building human satisfaction which in-turn builds strong employee
relations within organization. Although, several attempts are made so that no problem arises
between both the parties still some or the other time relation do get hampered, for instance:
 Employee under stress: This act generally happens when there is an excess of workload
in hands of employees or same sort of work is given to worker on daily basis. Also in-
tolerable use of authority and lack of promotional opportunities make a person undergo
stress and hence working in an organization is hindered.
 Company's policies should be updated from time to time so that continuous interaction
between worker and company is done.
 Through building good rapport in eyes of employees will definitely cater worker's
relationship with firm.
 Employees relations can be enhanced by being friendly but not over friendly with
workers also appreciation in non-monetary aspects should also act helpful in doing so.
 Provides support to employees: HR team gives employee support services to its workers
so as to eradicate communication gap between both the concerned parties.
 Helping employees in maintaining their dignity: Initiatives taken by human resource
department in order to create an environment where employees feel respected should be
accomplished.
 Provision of incentives and feedback: Ultimate goal of Aldi is to earn enormous profits
and this can be done only when members of firm perform their work effectively and with
their full capabilities. Feedback from time to time should be given to employees. In
addition to it HR should select an appropriate reward system in organization.
 Provides training and development program: In order to overcome
frailty, Aldi has adopted certain training and development programs
for employees to learn the techniques of working.

 When the work environment stays friendly and efficient, chances of
conflict and denial are reduced.
P6 Elements of employee's legislation and its impact.
Certain Standards have been set by the the law as the minimum standards of employment
for workplace under employment legislation which are therefore practised in Aldi retailing.
These occupation standards cover various facets of a job such as nominal wages, work
conditions, termination of employment, dismissal procedure (Youndt, Snell and Lepak, 1996).
Legislation deals with legal relationships between state and the the various economic interest
organizations.
Elements which comprise legislation are mentioned below:
1. Work conditions:This element deals in regarding the rest periods, working hours,
provisions relating to employment of women. Assurance regarding equal employment
and pay, and also enough maternity protection.
2. Employment: The main focus of the law was prevention of large amount of
unemployment and avoid long term contractual employment policies so that economic
stability can be fostered.
3. Trade unions and industrial relationships:The statute law provides the right to bargain
and also gives freedom of association with overall growth Legal relationship between the
workers and employers is defined in this section, which include :
 Rights and obligations of leader,organizations and trade unions.
 Participation of workers at various levels of decision making
4. Health, welfare and safety: Special regulation for dangerous occupations like mining,
dock work. Accident preventive regulation and occupational health all are a part of this
element.
5. Special provisions for particular occupational or other groups: The labour laws
provide special provisions to certain groups and occupational members (Wright and
McMahan, 1992). These provisions count in transportation, mining, agriculture, other
commercial works.
6. Wages and remuneration: The remuneration defrayal deals, notification of wage
conditions, regularity in wages, are all the part of this section of the legislation.

7. Individual employment relationship: aspects like dismissal procedures, transfer,
compensation and promotion constitute this element. As the legal document has been
revised factors like minimum wages and freedom from contract have been added to it.
8. Social security: Any occupational accidents till its parallel comprehensive schemes
count under this category (Von and Teagarden, 1988). This plan of action provides
general welfare and medical care, income in case of, sickness and maternity.
9. Administration of labour laws: It includes, any dispute between the labour and the
management which occurs out of any declaration or agreement settlements.
TASK4
P7 Application of HRM practices in work related context.
In every organisation its human resource department decides culture of company. Success of any
business enterprise totally depends upon the policies and practices of its HRM. A well designed
human resource management includes practices like training and development, payrolls,
performance management, employee motivation and satisfaction. Some of the human resource
applications in work place are follows as under :
 Recruitment and selection : Important function of human resource management is
hiring which is also known as recruitment. Both recruitment and selection play a vital
role in organisational culture. It determines, need of people in business enterprise and
then chooses best one for required position. It is a management process to attract people
and retain them for a long period..
 360 degree appraisal : The appraisal where worker gets feedback from his colleagues,
employers and mangers and which remains totally confidential is defined as 360 degree
appraisal.
 Training and development : It's managerial process to enhance the skills, abilities,
knowledge and capabilities of employees which will helps in achieving organisational
goals and objectives. Training and development focus on higher productivity, job
satisfaction and organisational expansion.
 Performance appraisal: A method in which performance of worker is evaluated within
an organisation. During performance assessment, employers provides reviews on basis of

performance by employee in specific time period. So that he can determine situation and
provide guidance to workers, accordingly.
 Performance management: It's a process in which organisers and workers sum up and
decide the work of employees for future time period. Basically under this they both work
together to achieve success for establishment. Workers contribute their efforts towards
the organisation.
HRM practices in to work related context:
Employee relation: This is very critical and essential for a company to maintain harmonious
relation with its staff on regular basis. ALDI having more than 30000 employees which
contribute in attaining organizational goals and target. The HR department of cited firm is
required to maintain a good relation among staff and top management. There are various
approaches which can be used by HR manager such as open door policy, provide opportunity in
decision making process so that they can perform their task in an effective manner.
Performance management: This is one of the major function of HR where a company is tries to
manage performance and provide a high quality product and services to its customers. ALDI one
of the multinational corporation in retail sector, they make sure that to provide effective
customer service at their staff which can leads customer loyalty. There is carious tool where
company can evaluate the current performance of staff and increase their productivity for the
future.
CONCLUSION
From the above report it has been concluded that Human resource responds on
coordinating needs of organization with needs and improvement of employees. Manpower
planning is a strategic procedure, which caters long term needs of an organization. It enables
every individual of an organization to grow both personally and professionally within the scope
of business. In above cited company Aldi, HRM works on vertical as well as horizontal
integration. Manpower planning department of firm gives a distinctive and important competitive
advantage by selecting and transforming highly accomplished staff which are able to give
advanced performances to company.

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