Human Resource Management Report for ALDI: Analysis and Evaluation

This report delves into the core principles and practices of Human Resource Management (HRM) within the context of ALDI, a leading global supermarket chain. The report begins by defining HRM and outlining its fundamental purpose and functions, emphasizing workforce planning and the importance of attracting and retaining a skilled workforce. It then proceeds to analyze different recruitment and selection approaches, specifically focusing on internal and external sourcing methods, along with their respective strengths and weaknesses. The report further explores the benefits of HRM practices for both employers and employees, including employee safety, appropriate compensation, training and development, and overall employee satisfaction. The significance of employee relations in influencing HRM decision-making is also examined, along with the impact of employment legislation on HRM practices. The report concludes by highlighting the practical applications of HRM in a work-related context, providing a comprehensive overview of HRM strategies and their impact on organizational success, with specific examples drawn from ALDI's operations.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of HRM........................................................................................1
P2. Strengths and weaknesses of approaches to recruitment and selection...........................3
TASK 2............................................................................................................................................5
P3. Benefits of HRM practices to employer and employee...................................................5
P4. Evaluating the effectiveness of HRM practices in terms of raising organisation’s profits
and productivity......................................................................................................................6
TASK 3............................................................................................................................................7
P5. Importance of employee relations to influence HRM decision making...........................7
P6 Employment legislation and its impact upon HRM decision-making .............................8
TASK 4..........................................................................................................................................10
P7. Applications of HRM practices in work related context................................................10
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12

INTRODUCTION
Human resources are the most unique and valuable assets of a business organisation. The
successful management of human resources are dynamic, exciting and challenging task for
managers. In the scarcity of skilled resources, burgeoning expectations of modern workers are
increasing the complexity of HRM function. Along with this, human resource management helps
in examining various HR processes which are concerned with managing, motivating, attracting
and developing employees for the benefit of company (Pizer and et. al., 2011). ALDI limited is
the chosen organisation in this present report; which is a common brand of leading global
supermarket chains over 10000 stores in 18 countries. The company has estimated turnover of
more than €50 billion. The assignment will discuss purpose and function of HRM along with
merits and demerits of various approaches of recruitment and selection. Effectiveness of human
resource practices and the importance of employee’s relations towards increasing profits as well
as productivity are explained in this report. It also enlightens upon employment legislations in
the business organisation.
TASK 1
P1. Purpose and functions of HRM
Human resource management can be defined as a process of managing individuals with
in organisation. It organise people in effective and systematic manner. The main function of
HRM is to recruit and develop workers so that company can easily accomplish its different foals
and objectives. Without appropriate functioning of human resource department no enterprise can
improve its performance in market place (Obeidat, 2012). So it can be said that for performing
various operations of business in better way, company needs to be focused on its HR section.
ALDI is highly focused on its human resource department and main purposes of this section in
workforce planning, which are following as under:
 The main purpose/objective of HRM is explain different procedures and policies so that
company can attract and retain high qualifies work force.
 Human resource management helps in increasing efficiency at all organisational level
with the help of various metrics methods.
 Performance of employees and company is measured by its HRM department.
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 One of the most important purpose of human resource department is staffing. In this
HR section of ALDI recruit and retain high qualified human resources.
 Organisation can make healthy relations with its employees only by effective
functioning of its human resource department.
 The huge responsibility of HR department is to maintain cultural awareness, as
company hire its employees from various states and nations.
Moreover, these are the some important purposes of human resource department which
shows the requirement of HR in all organisational level. Along with this, there are also some
important roles/functions of HRM department of ALDI, which are discussed below:
Recruitment and selection: These are known as most important integral part of human
resource department. Basically, enlisting can be defined as a procedure in which company
captivate, screen and select high qualified employees to fill a particular job so that, company can
accomplish its desired goals and objectives. The main purpose of recruitment process is to attract
a huge number of applicants. Whereas selection is a procedure of choosing best candidate among
other all applicants. It is known as negative process as it encourage unqualified applicants to opt
themselves out from organisation.
Orientation: This is the second foremost role of human resource department. In this HR
section make employees familiar with organisational structure. So it the huge responsibility of
human resource department of ALDI to provide intensive orientation to their workers (Chan and
Mak, 2012).
Managing working conditions: If company will not provide healthy working
environment than no worker can contribute its efforts towards achieving organisational goals and
objectives. So it the immense role of HRM department of ALDI to provide good working
conditions through giving financial and non financial benefits to its employees, so that they can
contribute to organisational goals.
Maintaining employee relations: Workers are known as most important pillars of
company. So to achieve higher success organisation needs to make healthy relationships with its
workers. Good relations between employer and employee can help in accomplishing various
goals and objectives of ALDI. If employees have good relations then they are capable to work
together, it can improves that performance level of the company in a certain time period through
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which business organisations can easily accomplish their goals and objectives in a minimum
time period.
Training and development: These are indispensable roles of HRM. In this, business
mangers provide various training and development programs to its employees to enhance their
efficiency and effectiveness.
All these HRM functions are beneficial for ALDI Ltd., to accomplish its goals and
objectives. For example- with the assistance of training and development programmes employees
will perform in better manner that aids a firm to sustain high competitive edge. Apart from this,
recruitment and selection channels are assistive in getting well qualified and effective workforce
through which firm will get better future outcomes. Hence, these are the some important
functions of human resource management which are highly applicable to workforce planning and
resourcing of ALDI.
P2. Strengths and weaknesses of approaches to recruitment and selection
Human resource management plays an important role in every business organisation. For
better organisational growth it is important to recruit and select right people for right job at right
time. The main functions of recruitment process is to define roles, job description, person
specification and attracting more candidates. Whereas selection is a procedure of choosing best
applicant for vacant position, so that company can get high qualified staff to achieve its different
goals and objectives. There are various approaches of recruitment and selection by which
company recruit its manpower to execute its different activities and practices (Martin and Smith,
2011). ALDI use three important methods to recruit and select qualified staff members, those
techniques are following as under:
Internal sourcing: It is known as most effective method of recruitment and selection in
this business organisation enlist candidates within company. In simple words, in this human
resource mangers fill vacant position by recruiting existing employee of enterprise. Different
firms use this approach because it requires less training programs because existing workers are
enough trained to work into same organisational structure. There are some strengths and
weaknesses of using this approach which are following as under:
 Strengths: This method involves less cost because in this company enlist existing
employee for vacant position or job. It is also a quick techniques because it does not
require additional activities and practices like interview, screening and so on. Through
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this, company can motivate and promote workers on higher post. This method is more
convenient for business enterprise because in this human resource mangers are aware
about different strengths and weaknesses of employee.
 Weaknesses: Internal sourcing also have some weaknesses because in organisation
because sometimes there are limited number of qualified people who can be assist to new
position.
Strength and weaknesses of internal recruitment: -
Strength
 Cheaper and quicker to recruit
 People already familiar with businesses
and its operating activities
 Provides opportunities for promotion
within business
Weaknesses
 Limit number of potential applicants
 Creates another vacancy which needs to
be filled
 May cause resentment amongst
candidates not appointed
External sourcing: This is most important method of recruiting and selecting people. In
this, business enterprises recruit and select different candidates from outside the organisation. It
includes some extra cost of interviewing and training programs because outsider people are not
aware about organisational structure. In this, human resources management department provides
orientation program to new recruited and selected employees so that they can get familiar to
business environment. This methods have strengths and weaknesses which are discussed below:
 Strengths: If ALDI will recruit people through this method than it can have more
innovative ideas of outsider persons. Also, this technique provides huge number of
applicants so that company can choose best out of them.
 Weaknesses: the main weak point of this approach is that it is more expensive as it
involves various process such as interviewing, screening and so on. Along with this, it
also require advertisement activities and practices to attract more applicants to apply in
company (Hernandez and Roberts, 2012).
Strength and weaknesses of external recruitment: -
Strength Weaknesses
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 Outside people bring new ideas
 Larger pool of workers from which to
find best candidate
 People have a wider range of
experience
 Longer process
 More expensive process due to
advertisements and interviews required.
 Selection process may not be effective
enough to reveal best candidates.
Third party sourcing: In recent time, this approach of recruitment and selection
becoming more popular among other methods of recruiting. In this business enterprise take help
of other recruitment firms to get high qualifies candidate. In this, organisation have to pay some
amount for getting qualifies staff member. According to this approach, third party sources use
various tools and techniques to identify appropriate candidate as per the requirement of
organisation. This approach includes have strong points and weak points which are following as
under:
Strength
The huge advantage of third party sourcing
is that in this organisation do not have to make
extra efforts to recruit qualifies candidates for
vacant position. Through this ALDI can get
high talented manpower which helps in
achieving organisational goals and objectives
in a effective manner.
Weaknesses
This method includes high cost of recruiting
because placement agencies charges some
amount of money in exchange of providing
their recruitment services. In this there is no
control of organisation because all tasks are
performed by recruiting firm.
TASK 2
P3. Benefits of HRM practices to employer and employee
Human resource management plays an important role in very business organisation as it
provides various benefits to whole organisation and its members. Without this, company can not
accomplish its desired goals an objectives in given time period. Through this enterprise can
increase efficiency and effectiveness of company and its workers too. Effective utilisation of
human resource practices can results in higher organisational growth and higher financial profit.
HRM provides various benefits to workers which are following as under:
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Employee safety: As its the most important function of human resourced department that
it protect and promote employees interest within organisation. It also give appropriate
information about hazardous process of organisation. Along with this, it also provides medical
assistance to workers in the serious injuries (App, Merk and Büttgen2012). For example- risks
analysis helps in providing healthy and safe working environment to people.
Appropriate compensation: It also force employers to give enough compensation and
other financial benefits to workers so that they can get motivate and contribute enough in
achieving organisational goals and objectives. For example- If ALDI Ltd., gives appropriate
compensation to employees then individuals will attain and retain for long term period at
workplace. It increases their accountability.
Training and development: Human resource department also helps workers in
increasing their current skills and abilities through providing them training and development
programs. For instance – training and development programmes can improve employees'
efficiency and knowledge towards a particular topic through which firms will easily gain better
future outcomes and accomplish its goals and objectives in an effective manner.
Employee satisfaction: HRM department perform all those activities to satisfy their
workers. In this company provides some financial and non financial benefits to employees to
keep them satisfied. Furthermore, higher satisfaction level of employees aids in attaining and
retaining them for long time of span which increases production and performance level of the
firm in external market.
Moreover, these are the some benefits of HRM in the context of employees. Human
resource department is made for to provide healthy working environment for employees so that
they will comfortable in achieving organisational goals and objectives. It also provides some
benefits to employers as well. Those benefits are following as under:
Effective strategies: The most important advantage of HRM is that its help business
mangers to make effective planning and strategies to accomplish organisational goals and
objectives in a very short period. For example- implementation of appropriate strategies and
policies helps in developing effective organisational cultural in which all employees can easily
interact with management. It improves decision making process of the company through which it
can attain high competitive edge.
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Recruitment and selection: This is the main function of human resource department.
With the help of this business mangers can recruit most qualified staff members so that different
objectives of company can be achieved. For example- well qualified and skilled staff members
are assistive in improving the performance level of ALDI Ltd., that also enhances its sales and
profitability.
Healthy relationships: With the help of HRM business mangers can make healthy
relationships with its employees or it can be said that human resource management makes good
relationship betwixt employer and employee (Chuang, Chen and Chuang, 2013). So that good
working environment can be maintained within organisation.
P4. Evaluating the effectiveness of HRM practices in terms of raising organisation’s profits and
productivity
In every business organisation, human resource practices have a crucial role. It is
accessible in developing strategic plans and policies which helps in improving employee’s
services and increased profitability of company. In ALDI, HRM practices are helpful in
achieving the desired results and profits of target market. Along with this, it is the main aim of
HR department to provide training and development assistance to its employees as they can
acquire best methods of production. This will support in raising organisational productivity and
its profits ultimately. Below mentioned points say about the effectiveness of HRM practices in
Aldi:
 Performance management – It is one of the most important works of human resource
manager. It is major goal of HR department to strengthen employer-employee
relationship within company. Performance management is an effective way through
which managers can improve their relationship with the staff members. Along with this,
employees need feedback and the expectations of their employers. So, it is the
constraint of employers as they have to provide necessary tools and techniques to
employees for accomplishing higher levels of performance. to provide necessary tools
and techniques employees for accomplishing higher levels of performance. They must
engage in order to help employees for getting excellence. Performance management is
helpful in managing the overall workforce of company that increases firm’s
productivity and profitability in the market.
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 Employee retention – Employee benefits and compensation is an important area of
HRM practices. According to the data circulated in 2015, business organisations spend
only one third amount of their total budget on human resources. Employees do not want
to work on low salaries and wages by which company can lose talented and skilled
people. Companies need to provide attractive wages and salaries as they can easily
attain and retain employees through the same. Attention towards employee's
compensation and benefits helps in improving job satisfaction, employee’s retention
and their morale as all of these are useful in company's bottom line.
 Equal opportunity – It is the responsibility of firm to give equal opportunities to all
employees. Fair HRM practices focus on treating applicants equally at the time of
recruitment and selection. This involves that employers do not make any discrimination
among gender, race, religion and nationality of candidates. They have to take decision
on the basis of expertise, experience, technical skills and capabilities of employees. If
the HR manager of ALDI gives equal opportunity to all people as he or she can get the
best skilled person for their company; it will help in maximising number of talented
people in the business organisation.
 Motivating and encouraging employees – Human resource practices are also helpful in
motivating and encouraging employees by providing training and development
assistance along with rewards. Employers also neds to give extra wages for their
excellent work and performance as they can easily motivate towards their work.
Managers also needs to provide timely training sessions to staff members; it is
accessible in reducing their all issues and problems of regarding production.
TASK 3
P5. Importance of employee relations to influence HRM decision making
Employee’s relations have an important role in the growth and success of firm. In this
modern world, competition is rapidly increasing among people in every industry. Having a
strong employee relationship reaps a lot of advantages for ALDI which is the source of higher
productivity and profits. But there are many factors which will impact on employee relations
grievances among workforce, stress and indiscipline. It is the prime obligation for the HR
manager to develop strategies and policies in order to minimise employee conflicts and disputes.
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There is given the significance of employee relationship in respect of influencing decision-
making of HRM practices:
 Creating a healthy and positive working environment – The main role of employees
relations is to create a healthy and positive working environment for employees; it will
help them in increasing productivity. It is the important task for human resource
department is to develop a positive working atmosphere for gaining employee enthusiasm
which improves company's performance (Gupta and Kumar, 2012). But if organisations
are fail in fostering a good environment for employees risk hampering their ability to
succeed.
 Increasing productivity and profitability – employee relations are also helpful in
increasing productivity and profitability of the company. If employees are shared good
and cordial relationship as they can easily work together effectively. Managers needs to
involves employees in day to day decisions making process of the company. So as if
workers feel like that they are important part of company, they automatically tries to
work hard for company. A highly engaged workforce not only reduces hiring cost of the
firm but also confirm the performance growth as well as longevity in target market.
 Employee loyalty – If employees are highly involved in business activities as it gives
more job satisfaction to employees. In addition, employee satisfaction also gives higher
level of commitment and loyalty; such employees are plays a key role as the ambassadors
of the company (Pizer and et. al., 2011). They are capable to support and promote the
mission, vision and the brand of the ALDI.
 Innovation – There is a close relationship among employees engagement and innovation.
If employees are working together as they can share new ideas and thoughts with each
other. For example- in cited company, effective employee relations are helpful in creating
new products and services. Collaboration among employees and top management at the
workplace leads to overall organisational growth and success.
Impact of employee relations on decision-making process of the company
The outcome of employee engagement greatly impact on company's performance and its
employees. Employees relations are helpful in building trust of managers upon staff members.
Apart from this, productivity is the tool of performance that involves efficiency and
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effectiveness; it helps in encouraging employee participation. It is accessible for managers to
take decisions like- goal setting, strategic development and problem solving activities.
P6 Employment legislation and its impact upon HRM decision-making
Employment and labour laws are given a framework to the workplace. It defines for what
employee and employers are responsible to do. It is the area which controls and govern the
relationship between employee-employer. The area of employment law is made up with state and
federal laws. Employment laws are work for – prevent discrimination, promote health and safety,
established a minimum required level of economic support and prevent work disruption due to
disputes and among management and labour (Banker, Byzalov and Chen, 2013). These laws
and legislations are essential because focus on productivity and profitability of the company
rather than problem issues.
Laws and regulations which are come under employment legislation, such are as follow: - Employment rights act 1996- The act is passed by Conservative government in order to
codify existing law on individual rights in UK labour law. It helps in protecting
employees' rights in business organisation. Along with this, the act focuses on health,
safety, security and satisfaction needs of employees. At the time of recruitment, it is the
responsibility of employer is to provide a written document about rights and duties of
employees, that he will be performed in future. Employees also have right that they do
not be terminated before any prior notice by the manager. Sex discrimination act – The act came into force in 12th November 1975. Sex
discrimination act gives prevention against equality of gender, training, education and
related matters. It involves when a person is treated less favourably than another in same
situation. In business enterprises there are two types of discrimination, such as – direct or
indirect. Direct discrimination is where manager treats a women less favourably rather
than a man on the ground of sex. Indirect discrimination is where if employer give more
preferences to male gender than a women at the time of recruitment (Muttarak and et. al.,
2013). Along with this, sex discrimination act is concerned with employment, training,
education, harassment and the provision of goods and services. Working time regulation act, 1998 - The act applies to all workers and stipulated
minimum rest breaks during their working hours. The time regulation act also permits a
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