HRM Report: HRM Practices in ALDI - Workforce Management

This report provides a comprehensive overview of Human Resource Management (HRM) principles and practices, with a specific focus on workforce planning, resourcing, recruitment, selection, and employee relations. The report uses ALDI, a multinational supermarket chain, as a case study to illustrate the application of HRM concepts. It explores the purposes and functions of HRM, including staffing, orientation, maintenance, training, and motivation. The report analyzes the strengths and weaknesses of various recruitment and selection methods, such as internal and external sourcing, and third-party sourcing. It also highlights the advantages of effective HRM practices for both employees and the organization, including workplace safety, appropriate remuneration, training and development, employee satisfaction, and the creation of a good working environment. The report evaluates the effectiveness of HRM practices, emphasizing their impact on organizational performance and employee well-being. Finally, the report examines the importance of employee relations and employment legislation in HRM decision-making and applies HRM activities within the context of the ALDI organization.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and functions of HRM used in workforce planning and resourcing........................1
P2 Strengths and weaknesses of recruitment and selection........................................................3
TASK 2............................................................................................................................................5
P3 Advantages of HRM practices...............................................................................................5
P4 Effectiveness of HRM practices............................................................................................6
TASK 3............................................................................................................................................7
P5 Importance of employee relations in HRM decision making................................................7
P6 Key elements of employment legislation which impact on HRM decision making..............8
TASK 4............................................................................................................................................9
P7 Application of HRM activities in Organisation.....................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management is known as one of the major concept of every business
organisation. It have various responsibilities but its most important role is to manage workforce
within enterprise (Hendry, 2012). With the help of effective functioning of human resource
department, organisation can select high skilled staff and also can retain them for long time. In
simple words, HRM can be defined as a procedure which helps enterprise in recruiting best
candidate for vacant position. It also resolve employee related issues which can affect on
efficiency and effectiveness of organisation. This project report is based on ALDI which a
German based multinational company which is biggest supermarket chain. In this report, various
purposes and scope of HRM activities of this company has been explained so that it can fulfil its
organisational objectives in an effective way. Effectiveness of human resource elements have
also been evaluated in the context of above mentioned company. Different internal and external
factors of business have assessed which can influence impact on decision making process of
organisation (Boxall and Purcell, 2011).
TASK 1
P1 Purpose and functions of HRM used in workforce planning and resourcing
With the help of human resource management company can manage all employee related
issues. In other words, HRM helps organisation in managing its workforce and their problems.
Through this enterprise can organise its employees and their activities in an effective manner.
For better growth of business, it is very much important to have high skilled Human resource
managers because success and failure of company depends upon them. Their main task is to
recruit best candidate for organisation so that its performance can be improved (Oladele and
Omotayo, 2014). It also helps employees in protecting and promoting their interests in work
place. There are various purposes of Human resource management which are following as
under:
 Human resource management makes various efforts through which company can
increase efficiency and effectiveness of its work palace and its employees.
 Human resource management constructs various rules and regulations which works in
favour of employees employed in organisation.
 With the help of human resource management, ALDI can monitor and control activities
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and practices of its work place(Brewster, 2012).
 Effective functioning of HRM can make healthy relations between employer and
employees, this can make good working environment within work place.
 Recruitment and section is the most important purpose and function of human resource
management, because it is huge task of this department to recruit most talented staff
members who can take organisation at higher level of success.
Through above mentioned points, it can be determined that there are various purposes of
HRM which plays a significant role in effective functioning of company. Apart from this, there
are also some important roles of human resource management, which can help ALDI in making
effective plans regarding workplace. Different roles/functions of HRM are following as under:
Staffing: This is known as most important function of human resource department. In
includes two basic steps recruitment and selection. Both concept plays an important role in
HRM. Procedure in which company attract a huge number of candidates is known as
recruitment. On the other side, screening and selection of best candidate out of others is known
as selection. Both concept are equally important for organisational growth (Markova, 2012).
Orientation: In this, human resource department provides various orientation program
for new employees so that they can become familiar with organisational structure. ALDI can
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Illustration 1: Functions of HRM. 2017

also make their new workers comfortable by organising various induction programs.
Maintenance: Effective functioning of HRM can help company in maintaining healthy
working environment and also can make facilitates positive relation with their employees. If
there is good bonding between superiors and subordinates than they can work together to
accomplish organisational goals and objectives.
Training and development: It is very much important for business enterprise to have
high skilled labours because they can contribute more in achieving desired results. Human
resource management can provide various training and development programs to employees
through which their efficiency and effectiveness can be increased.
Motivation: Highly motivated employees can contribute a lot in organisational growth
and d development. So, it is the responsibility of human resource management to motivate their
workers to work hard. This can be possible if ALDI will make good relation with its work force
(Greed, 2013).
Hence, these are some most important functions of human resource management which
can help ALDI in making good working environment and also recruit best staff members for
company which can strengthen its position in market place.
P2 Strengths and weaknesses of recruitment and selection
In recent time, human resource management has become important seed of every
business industry. Without this, no company can manage its work force, which is highly required
for organisational improvement and development. The most important tasks of HRM are:
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Illustration 2: Recruitment and selection, 2017

 Recruitment
 Selection
There are various approaches through which company can enlist and select high qualified and
talented staff member (Loomes, 2014). Some of the methods are following as under:
Internal sourcing: Through this technique company can recruit and select that candidate which
is already a part of organisation. Generally, it is known as internal sourcing in which company
choose its own employee for other vacant position. It is very much necessary that worker should
be qualified enough to perform other kind of duties and responsibilities. This is the best
approach for recruitment and selection because in this employee is already familiar with
workplace.
 Strengths: The biggest positive point of this approach is that it is less expensive. In this
company do not need to conduct different rounds of interview, because in this company
choose that employee which is trustable and also qualified enough to perform other kind
of job. Weaknesses: Company who use this method can not get new and fresh ideas of
new employees because in this workers is selected within organisation campus. Some
times this approach can arise chances of conflict because employee neglect to change
their current position (Ash, Hodge and Connell, 2013).
External sourcing: This is that method of recruitment in which, business enterprise choose
outsider persons. People select this approach when they do not have qualified person to perform
duties and responsibilities of other vacant position. Through this, company can recruit employee
of their own choice, which they think most suitable for vacant post.
 Strengths: Through this method company can get most talented employee for their
organisation. In this organisation filter many candidates by conducting interview rounds.
 Weaknesses: This approach is less effective as it is a expensive process. In this company
have to use various interviewing rounds to select best candidate which consumes much
time and also lots of capital.
Third party sourcing: This is the third approach of recruitment and selection. In this company
take help of other staffing firm so that it can get high talented employees. Workers who get
selected through this approach are known as most effective human resource (Shaw, Park and
Kim, 2013).
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 Strengths: Company which use this technique, is known as most effective organisation
because through this methods it can have most talented and qualified staff member in a
very short period. Also, in this company do not have to make extra efforts to recruit most
suitable candidate for vacant position.
 Weaknesses: The biggest weak point of this approach is that in this company can not
make healthy relation with its employees, because in this other staffing firm
communicates with employees and make them ready for their organisational duties and
responsibilities.
Hence, these are the most effective approaches of recruitment and selection which cab be
used by ALDI to select high skilled employees. Before using these methods company must be
aware about their positive as well as negative sides, so that company can choose best technique
of recruiting selecting people (Kaufman and Miller, 2011).
TASK 2
P3 Advantages of HRM practices
Most important asset of every business enterprise is their human resources. Without them,
company can not operate its different activities and practices. So it is very much important for
organisation to manage their work force in an effective and systematic way. If a company wants
to enhance its efficiency and effectiveness then it have to give high importance to its work
force. It is the main duty of HRM to utilise their human resources in efficient manner, so that
company can increase its growth and performance. Human resource management can provide
various advantages to company and its employees (Iqbal, Arif and Abbas, 2011). Benefits of
workers are following as under:
Workplace safety: Human resource management of company makes various strategies
and policies which are in favour of employees. These strategies force top management to
facilitate safe working environment. It provides each and every information about work place
which are important for workers to know. It also provides first aid services to work force which
can be used in case of serious injury within work place.
Appropriate Remuneration: It is the right of very employee to get appropriate level
of wages. Some organisation do not pay to their workers according to their contribution. So, to
protect and promote interest of workers human resource management provides them proper
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remuneration.
Training and development: If company have high qualified employees than it can
accomplish its goals and objectives in an effective and systematic way. So it is responsibility of
human resource management to provide various training and development programs to their
workers so that their efficiency and effectiveness of performing task can be increased (Caligiuri,
2014).
Employee satisfaction: Human resource management provides reward systems, canteen
facilities and some other kind of of services to employees through which they can get highly
satisfied.
Hence, these are some points which highlights the importance of human resource
management in the favour of employees. Apart form this, there are also some advantages of
HRM which are beneficial for organisation and managers. These are following as under:
Recruitment and selection: With the help of effective functioning of human resource
management, business managers can recruit and select best candidate for vacant positions. It is
very much important for business enterprise to have high qualified work force so that it can
achieve its desired goals and objectives.
Makes effective strategies: Human resource management regulated the whole organisation,
which can help manager in making most effective strategies and polices for enterprise so that its
activities sand practices can be performed in an better way.
Good working environment: The main function of human resource management is to make
good relations between managers and employees, this can help in creating healthy working
environment within workplace (Innocenti, Pilati and Peluso, 2011).
Furthermore, by evaluating above mentioned points it can be determined that human
resource management have a great positive impact on workers as well as on organisation.
P4 Effectiveness of HRM practices
The most important concept of every business enterprise is its human resource
department, as it makes various strategies and polices to enhance profitability and productivity of
company. ALDI can also improve it performance by using various practices of HRM. Through
its activities company can provide effective training and development programs to their
employees so that they can increase their efficiency of performing their specific task (Kaufman
and Miller, 2011). These programs help workers in producing more products and services. There
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are various points through which effectiveness of HRM practices can be evaluated and these are
following as under:
 Performance management: This is known as most important task of human resource
management. This can help in managing performance of employees employed within
organisation. Through this company can make healthy relations between employers and
employees. In this, workers can get appropriate feedback and also can identify
expectation of their seniors (Vaiman, Scullion and Collings, 2012). Performance
management consists of various tools and techniques which helps in managing
improvement of employees as well as organisation. Effective management system can
increase profitability and productivity of organisation.
 Employee retention: The main function of human resource management is to provide
various benefits and compensation to employees. To retain high skilled workers it is
important for company to provide effective reward system, because this can attract more
employees to work within organisation.
 Equal opportunity: For better growth of business, it is very much important for
company to give equal opportunity to all employees. According to this, managers should
not differentiate his workers on the basis of their religion, gender and nationality. All
workers have some unique qualities which increase their importance in company. So it is
responsibility of enterprise to provide equal opportunities to their labour. Healthy
relations with workers can help ALDI in increasing its profitability and productivity
(Armstrong, 2014).
TASK 3
P5 Importance of employee relations in HRM decision making
For better growth of company it is very much important for company to make good relations
with their employees, because they are the important people of company who can help in
accomplishing its different goals and objectives. In modern world, market place is becoming
more competitive, so to survive in marketplace, it is very much important for enterprise to co-
operate with their market place. Healthy relations with workers can help ALDI in increasing its
profitability and productivity (Davis, 2013). It is huge responsibility of business mangers to
make special strategies and policies so that there would be no chance of industrial conflict or
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dispute. There are various importance of employee relation which can influence HRM decision
making and these are following as under:
Creating a healthy and positive working environment: Effective relationship between
employer and employee can facilitate good working environment within organisation. So this is
huge duty of HRM to provide healthy working conditions so that employers and employees can
have better mutual understanding between them.
Increasing productivity and profitability: If company will have good working environment
that it can also increase its profitability and productivity. If business mangers will give
importance to their workers than it will motivate them to contribute more in accomplishing
organisational goals and objectives.
Employee loyalty: Worker involvement and empowerment can provide better satisfaction to
employees. It will also enhance satisfaction level of workers. If they will feel them as a
important part of company than they will show their loyalty towards organisation and its
activities.
Innovation: More involvement of employees can result in re innovation of company, as various
efforts of workers helps in innovating new strategies and policies. Also it arise new ideas and
thoughts which can prove as most effective step of organisation (Trieloff and Buys, 2013).
Impact of employee relations on decision making process of ALDI
Good relations with employees can help organisation in improving its existing
performance. This can influence healthy environment within organisation which can result in
high profitability and productivity of organisation. Through evaluating above mentioned points
it can be determined that employee relations can enhance performance of company.
P6 Key elements of employment legislation which impact on HRM decision making
Various employment and labour laws are made to stop exploitation of mangers. In simple
words, labour legislation protects and promotes rights of employees within organisation. These
laws are made by central government which are in favour of those people who work under an
organisation. Various laws and regulations of employment are following as under:
 Employment rights act 1996: This act is governed by conservative government which
helps in protecting and promoting different rights of employees which employed in any
industry. This act gives core importance to health and safety issues of workers. It is very
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much important for business enterprise to follow this act otherwise they can be get
unregistered by central government.
 Sex discrimination act: This act was established in 12th November 1975. The main
objective of this law is to remove discrimination of employees. Some organisation
discriminate their employees on the basis of their caste, religion, nationality and gender.
This legislation helps in removing these kind of discrimination of workers (Buettner,
2015).
 Working time regulation act, 1998: This act force business enterprise to pay annual
leave of at least a minimum of 28 days. This act allows employees to take rest of
minimum 20 minutes in their everyday working shift.
Hence, these are some most important legislations related to employment which have a
grate impact on human resource practices of organisation.
TASK 4
P7 Application of HRM activities in Organisation
It is very much important for business enterprise to use human resource practices in effective
and systematic manner so that it can accomplish its organisational goals and objectives. The
most important activities of Human resource management of ALDI are following as under:
Compensation: It is responsibility of HRM to provide appropriate remuneration to
employees on the basis of their task and performance. Company can also provide reward
system, which can help in retaining work force within workplace.
Training and development: Human resource management provides various training
and development programs to employees through which they can enhance their skills and
performance. Which can also improve performance of organisation in market place.
Recruitment and selection: For better growth of company it is very much essential to
have high skilled workforce. This can be done if company have effective human resource
management, because its can recruit and select most talented candidate for organisation.
Through evaluating above mentioned points, it can be determined that HRM operated
most essential activities and practices of business enterprise(Du and Sukumaran, 2015). Apart
from this, there are also some functions which can be performed by human resource
management and these are following as under:
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 Management function: The main tasks of HRM are planning, organising, directing and
controlling. Through these function, HRM can manage over all organisation.
 Advisory function: organisation can enhance its performance if it takes advises to its
human resource department.
CONCLUSION
By concluding this project report, it is determined that human resource management
plays an crucial role in smooth functioning of business enterprise. Without this, no firm can
accomplish its goals and objectives. It recruits and select those candidate who are highly
qualified and talented in specific skill and contribute their efforts in organisation growth and
development. Employees and workers are the most important assets of every business enterprise
because without them, organisational goals and objectives can not be achieved. As this report is
in the context of ALDI which is largest chain of supermarket. In this report it is evaluated that
human resource management can help organisation in managing talent and skills of its
workforce, which is highly important for achieving business objectives. Different elements of
HRM can increase efficiency and effectiveness of company. Along with this, for effective HRM
decision making process company have to analyse internal and external factors of its business.
At last, applications of various Human Resource practices van improve and develop existing
performance of ALDI.
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