HRM Report: Analysis of HR Practices at Aldi Supermarket

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, using Aldi, a German supermarket chain, as a case study. It begins with an introduction to the role and functions of HRM, including recruitment, selection, training, and development. The report then delves into the strengths and weaknesses of various recruitment and selection methods, both internal and external, and discusses the benefits of different HRM practices such as training, positive behavior promotion, and employee motivation. Furthermore, it examines the effectiveness of these practices in driving profitability, including the use of information systems and performance management. The report also addresses the importance of employee relations and the impact of employment legislation on HRM decision-making, concluding with a look at HRM practices in a work-related context. The report aims to provide a detailed understanding of how effective HRM contributes to organizational success within the context of a real-world business environment.

Human Resources
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and the function of HRM.........................................................................................1
P2. Strength and Weaknesses of different methods to recruitments and selection process.........2
TASK 2............................................................................................................................................4
P3. Benefit of different HR management practices.....................................................................4
P4. Effectiveness of different HRM practices that help to grow profit.......................................5
TASK 3............................................................................................................................................6
P5 Importance of employees relation that influence HRM decision making..............................6
P6. Key elements of employment legislation and their impact on HRM decision making.........1
TASK 4............................................................................................................................................1
P7. HRM practices in work related context.................................................................................1
CONCLUSIONS .............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Human resources manager is individual that perform different function in order to attain
the organisation goals. They are responsible to execute the process of analysing the performance
of each worker of company and make plans if required to improve the performances (Albrech,
2011). With the effective HR management, company can easily attain their financial and yearly
goals and objectives. HR perform different function such as, hiring of correct candidate, training
and development, formulate policies and strategies to maintain the organisational structure. To
understand the concept in context of HR management ALDI is selected which is one of the
supermarket chain over 10000 stores in almost 20 nations. Company was founded in 1976 and is
located in ESSEN, Germany.
In this project report, different topic such as scope, purpose and function of HR has been
discussed. Calculation of main elements of HR management and analysis of internal and external
factors that affect the HR management decision making is reflected in report. Report also shows
the HR management practices in a work-related context.
TASK 1
P1. Purpose and the function of HRM.
In companies, Human resources management provide assistance to the manager of
company to ALDI, so that following function can be performed. Such as, hiring, selection,
provide training and growth programs. In ALDI, manager develop assorted plans for identifying
the necessity of the customer at the workplace. This is crucial for accomplishing the objectives of
the organization. This determine the knowledge, ability and happening and link up the correct
individual at particular point during a particular time frame. There are basic Purpose and
function of HR that are discussed below:
Purpose of human resources management:
 Optimum use of resources: Resources are limited as there are number of companies
operating in same industry. So the HR manager of company formulate effective plans to
make optimum use of resources that will give better result for company. They focus to
determine that no resources should be waster and in case if they found the reason, HR
makes plans to reduce these reason (Anderson, 2013).
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 Culture: companies with good and understandable culture makes employee comfortable
to perform business operations. Therefore, HR manager of ALDI maintain the culture of
that make employee's feel comfortable to execute business operation effectively.
 Laws: HR manager of ALDI has to make sure that business operation are performed
according to the rules and regulation formulated by Government. It is very important for
HR to work according to certain guidelines that will be beneficial to remove the legal
issues that may hinder the performance of company.
Function of HRM:
Roles of HR
 Planning: This function is related to making of valuable plans and strategies for the
development and growth of company. Manager of ALDI focus on effective planning so
that sales goals are achieved and profit could be maximised.
 Worker Development: Company need skilled and professional worker that will work
with more potential for the betterment of company. HR manager of ALDI develop
different training and education programs that help to develop employees working for the
attainment of organisation goal.
Responsibilities of HR
 Recruitment: It is one of the most crucial responsibilities of HR manager to hire
candidates for the desired post. They make choice from the available candidate according
to knowledge, skills and ability to perform task.
 Staffing: In ALDI manager wants skilled and knowledgeable staff member at each post
so that, performance of company could be improved. Having a right candidate at correct
place will be a difficult task for HR manager, so manager must itself have the appropriate
knowledge about the process of company. It is reasoned as a very crucial purpose as
selecting the best employees for performing the work is not an easy task (Armstrong,
2011).
P2. Strength and Weaknesses of different methods to recruitments and selection process.
In present era, every company needs professional employees that will generate best result
for company. So manager of company must hire best individual from the various alternative.
Recruitment is related to process of hiring the right candidate within company. It is consider to
be the most important function of HR manager, as they hire the best worker for their company
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that will be capable to execute different function in proper manner. On the other side Selection is
the process of identify and making correct choice from the available worker option in company.
Recruitment: HR manager have two ways to make recruitment employees for company
that are discussed below:
Internal sources: This process of recruitment is related to hiring of employees from within the
organisation itself. The HR manager of company analyse the performance of employees and
make decision weather they are fit for promotion to do job or not. Employees also get benefit of
being promoted as their salary get increase and they will be getting other benefits also. With this
worker purpose to acquire about fresh activity and processes which is being executed in the
company.
Strength of Internal Sources:
 Manager develop Morale of employees working in company that help them to perform
business activities effectively (Bamberger, Biron and Meshoulam, 2014).
 This process is beneficial for company has it aid to save cost of company and time of
manager.
Weaknesses of Internal sources:
 HR manager do not have more option as they hire people for new post form the existing
worker.
 Basically this process does not give chance to every employee as favourable get more
advantage.
External sources: This process is related to hire new employees from outside the organisation..
some example of External recruitment are advertisement, college placement, job fairs,
consultancy that are used by Human resources manager of ALDI. The strength and weakness are
discussed below:
Strengths:
 This process help to bring fresh and new talent in company.
 Employees with unique ideas and thought process help company to perform well in
market.
Weaknesses:
 This recruitment process require huge cost and time for hiring best employee's.
 Many time selected worker may be wrong for company that break laws.
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Selection: HR manager of ALDI applies different selection process to select best employee that
is discussed below:
Online screening: This process is related to make use of job portal in order to hire new
employees for new roles. Manager of ALDI receive online application form different employees
those wants to get hire fro the new jobs (Bloom and Van Reenen, 2011). Some strength and
weaknesses are:
Strength:
 This process is used to save cost of ALDI.
 HR manager must be knowledgable about various software that is used in online
screening process.
Weaknesses:
 It is a time consuming process as manager requires more time to analyse the right
candidate.
 The inquirer should be extremely trained to take interrogation.
Performance management
The HR manager of company plays a significance role in analysing performance of
different staff member and they implement various performance appraisals method to improve
the performance. The human manager of ALDI gather information about presentation about each
team member than they sit with reviewing authorities and make sure that appraisals are made on
time. HR of company also ensure that deserving employees must get the advantage and other
must work with more potential to earn the same benefits in future time.
Rewards systems.
This process is related to providing the achievement and benefits to employees according
to the job performance for example, salary, wages and other facilities like accommodation,
health and insurance, transportation etc. Human resource keeps detail information about each
employees and tries to make workforce feel comfortable by giving different rewards depending
upon the skill set and ability to perform work. More valuable staff in ALDI is liable to get more
advantage and rewards.
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TASK 2
P3. Benefit of different HR management practices.
HR management have different kind of practices that help to perform different function
in company. With the help of these practice performance and productivity of company is
increased. Company become a better place to work as employee feel comfortable and there is an
effective coordination with employer. Thus human resources management practices must be
applied in effective way that give best result for company. Some of the HR practices that benefits
inside company for both employees and employer are discussed below:
 Training and development: It is very important for companies to have a trained and
skilled employees, those work with full potential for the betterment of business operation.
Human resources manager of ALDI, held different training and educational programs that
aid in development of employees. They also appoint skilled and professional leader those
will be going to conduct these seminars and education programs. This help to develop an
effective relation between employees and employer as they can easily understand the
allotted work. As a result if there is effective relational in company employee shows
more engagement in business activities and work to achieve the goals of ALDI
(CHUANG and Liao, 2010).
 Promotes Positive behaviour: This process is related to improve the culture and
promote positive behaviour in company. It is very common that positive behaviour in
company can only be build if employees and employer do not have any differences
among them. Thus HR management practice applied in company help to satisfy customer
and employer in ALDI that help to wok with full potential. Employees always wants
positive culture to work that help to develop a effective relation with high authority. It
means that whenever an individual faces any problem then they might talk with higher
manager to overcome issues. As a result employees will be more engaged in ALDI
business operations to make them run effectively so that financial goals are achieved.
 Motivating staff: For companies, its is very important that HR manager applies different
practices that help in motivating employees and employer. Manager of ALDI focus to
give practices to their worker such as performance management, compensation, salary
increased etc. So when employees and employer get these advantage gets motivated and
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more concern about company desired goals and objectives. As a result they work with
more accuracy and effectiveness in order to attain goals and objective of ALDI.
It is very common that when a company adopt a flexible working practices, then work is
performed with more potential are goals are also achieved in specific manner. Similarly,
manager of ALDI
P4. Effectiveness of different HRM practices that help to grow profit.
As discussed above Human resource manager of company have to perform, different
practices that help in making company a better workplace and also support in achievement of
goals. These practices also help in generating or maximising of company profit in a long run.
They make employee and employer work together so that performance can be improved that
result in upliftment of company profit and market share. In ALDI manager of Human resources
make effective plans so that operation are controlled and performed in proper manner resulting in
high profits (Farndale, Scullion and Sparrow, 2010). There are different HRM practices that
help in improvement of productivity and profit of ALDI are described below :
Information system: Manager must have the proper knowledge about the different
information system implemented within company. With the help of this system important
information is displayed to employees so that they work in effective manner. In ALDI, manager
makes effective strategies to make worker work in order to increase the productivity of various
different project. As once the productivity increased than company would be able to make more
sales that support to generate profit.
Logical Thinking: This process is related to providing guidelines and strict notes to
employee for doing their work. HR manager think logically and make leader and project
manager understand about the execution of business project. Then manager guide employees to
work according to the guidelines that are being implemented to perform a certain task. If the
worker does not move the same then they will not be able to increase any inducement in the
institution.
Talent management: This practices of HRM is related to manager the skilled, trained
and talented employees in organisation. It is common that if company have professional and
skilled workforce that they will be able to expand their business and increase profit. In ALDI HR
manager focus to develop training and education to their worker so that they are potential enough
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to perform task in proper manner. As a result productivity of business activities will be increased
and company earn more profit during an accounting year (Flamholtz, 2012).
TASK 3
P5 Importance of employees relation that influence HRM decision making.
In present era, every company wants to grow and increase their employees strength so
that business operation are operated, controlled and executed well. It is very important for
company to make peace and build good relation within employees and employer. This will be
beneficial to attain the goals and increase the market positions. Good worker dealings are very
crucial for the HR managers of the institution as it can assist to perform the business organization
in an proper way. In case if company lack the supportive environment the may lead to decrease
the efficiency of worker. In ALDI, manager always tries to develop effective, good co-ordination
and relation among staff member that help to deal with any uncertainties arsing in future. This
also result to increase the sales volume of company as increased goodwill will attracted more
customer towards ALDI (Hendry, 2012).
Sometime, when employees have any conflicts with their higher authority, then they do
not work with full potential and may reduces the performance and overall profitability of
company. Therefore Human resources Manager of ALDI makes plans to create healthy relation
and positive work culture. This will result in increasing the motivation of worker and attain
company desired goals. There are some main importance of employee connection that are needed
to form proper judgement. These are as follows:
Worker involvement in business activities: It is very important for human resources
manger to manage and build relation among their leader and other subordinator that support to
get success. As a result of good relation team member work with full potential and increase their
involvement in companies operation. Employee once satisfied with the higher authority perform
their allotted task with full energy, knowledge and potential to attain particular set targets. In
ALDI, large number of customer interact with worker those come for shopping. And in case in
employee's do not have an effective coordination with their leader may not treat customer well,
that may be a reason to decrease in profitability of company (Jiang and et. al., 2012). Therefore
manger of ALDI makes decision that help to improve relation between employees and employer.
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This will help to improve the productivity of worker and they will be more involved in company
operations.
Better communication: Unless and Until, if there is no communication or manager do
not properly communicate with worker then there will be no effective relation between them. So
there must be effective communication among higher authority and employees so that message
could be easily transformed. In ALDI, Manager are liable to maintain an effective network, so
that various important message can be given to worker, that help in proper execution of different
project. This also helpful in removing the conflicts and problem that staff member are facing, as
message can be given to manager those look properly to resolve these problem.
P6. Key elements of employment legislation and their impact on HRM decision making.
Employment legislation are leading with rules and regulations in order to legal authority.
Company ALDI is facing impact on business operation effectively with supposed to main
purpose of laws. They are appropriately leading with opportunities in according with capabilities.
Their impact lie on reducing possibility of child labour in employment legislation . In purpose of
finding solution made in manner of appropriate laws and regulations are defined below.
Equality act, 2010: This act is defined by maintaining equality among employees in
order to make work effective. Managers are using this approach for reducing illegal activity from
working process. It is very important role provided to employees either male or female. ALDI is
facing daily problems regarding with employees (Kehoe and Wright, 2013). They are making
equality from this act. This act is examined by legal framework in order to make rights for
individuals with advance equality opportunity. It signifies strengths and harmonises with new
discrimination of laws. This act is useful for ALDI in order to promote fair and more equality ion
society.
Data protection : This act is useful in form of protecting data from received from
sources. Their employees are maintaining data record in proper form. Company ALDI is leading
this source of daily basis to maker recall of data whenever is necessary. An organisation is
leading with making legal prospects of data in a form of maintain by analysing them. In this, it is
useful in a manner to make protection by preparing proper records. These records are useful for
company as manager of ALDI are able to make valuable decision for the development and
growth of company and staff members .(Renwick, Redman and Maguire, 2013.).
Health and safety act, 1974
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Under this act management of ALDI should assure that they are providing security to
employees and also providing good atmosphere where they are perform all the tasks in
appropriate manner. This act provide facility to employees for taking advantages related to health
because ALDI provide insurance facility. With the help of this act Human resources manager are
able to provide basic health and security insurance to staff member, this will make them satisfy
and they work with more potential to attain the predefined goals of ALDI.
Employment contracts
It is formal activity that are signed by employer and employee to establishes rules and
regulations. For this contract include two parties first one is the worker and second one is the
company. In employment contract are including these points are as following salary of wages,
duration of employment, general responsibilities and schedule. ALDI follow all rules that are
providing in contract. In in the future any conflicts are origin that time it would helping to
solving this.
For ALDI it is very important to follow all the above these employment legislation that
are helping to maintain good relations with employees. It is effected to decision of human
resources for formulated effective decision regarding to the organisation. Employee safety,
performance of the employee and all organisational data are effected to decision that are taken by
human resource management.
TASK 4
P7. HRM practices in work related context.
The request of assorted HRM practices in very necessary for the organization because it
will assist then in accomplishing the organisational objectives also. Managers of an organisation
are willing to hire individuals for specific job profiles than there are various factors that are
considered under recruitment process, all of them are represented beneath:
Job analysis: This process is related to identify and determine the detail information about the
job profile (Job analysis, 2018). Worker collect information from the company by proper job
analysing.
Job description: This process is characterized as a elaborated document that have a detail
information about the occupation. A elaborated job statement can awake a nominee about the
duty and obligation that are to be performed at particular job.
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Job specification: These are consider to be the set of exception an employee have from the
individual coming from interview. It can be defined as a detailed document that carry all the
information about the job (Schalk, Timmerman, and Van den Heuvel, 2013). It is identical as the
job description but it is made in more particular mode. A job description for a special job in
ALDI Limited is as travel:
Job specification
1. Job information
Job Title: Customer Services Assistant
2. Job Intention
 Manage all the customer business related activities.
 Formulate sales and marketing strategies to increase profits and profitability of the
company.
 Makes Every customer to be happy from services of company.
3. Duties and Responsibilities
 Provide satisfactory services to customer.
 Implement effective sales strategies to sale product and enhance profitability.
CV: This is a descriptive and transparent document that provide the detail information
about the qualification, experiences and skill set an individual have. A C.V> for the job profile of
HR managers is as follows:
1. General information
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