Human Resource Management Report: Practices, Benefits, and Strategies

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on recruitment, selection, employee relations, and their impact on organizational success, using ALDI as a case study. It explores the purpose and functions of HRM, contrasting internal and external recruitment methods, and evaluating their strengths and weaknesses. The report examines the benefits of HRM practices for both employers and employees, emphasizing how effective HRM can boost profits and productivity. It also discusses the importance of employee relations in decision-making and highlights key elements of employment legislation. The report concludes by emphasizing the application of HRM practices and their overall contribution to organizational effectiveness and employee satisfaction, offering practical insights into how businesses can leverage HRM to achieve their strategic goals. This report is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of HRM........................................................................................1
P2. Weaknesses and strengths of different approaches of recruitment and selection............2
TASK 2............................................................................................................................................4
P3. Benefits to employers and employees from the practices of HRM..................................4
P4. Effectiveness of HRM practices in raising profits and productivity of organisation.......5
TASK 3............................................................................................................................................5
P5. Importance of employee relations in influencing decision making process of enterprise5
P6. Key elements of employment legislation.........................................................................6
TASK 4............................................................................................................................................8
P7. Application of HRM practices.........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
HRM (Human resource management) is a function which helps manager in managing the
process of recruitment or selection of employees. It includes the management of staff members
and their activities at workplace. It is the responsibility of human resource manager of enterprise
to hire right candidates for performing jobs in an organisation. It involves performance
evaluation of workers, making compensation packages and maintaining healthy working relation
with subordinates (Armstrong and Taylor, 2014). As employees play an important role and
contribute a lot in the success of firm so, it is the responsibility of every manager to maintain
strong relations with them. ALDI is selected in the present report which is a global leading
discount retailer in grocery items. At present, company is offering services to its customers
through more than 10000 stores in 70 countries. With reference to this firm, functions and main
purpose of human resource management will be discussed. Along with that, effectiveness of
HRM practices and its effect on other activities of organisation are given in this essay as well.
TASK 1
P1. Purpose and functions of HRM
Main purpose of HRM is to effectively utilise all resources, talents or skills of workers of
an enterprise for the attainment of objectives. Activities of this concept helps in ensuring that
each and every worker in organisation is satisfied with the offered wage by organisation (Bloom
and Van Reenen, 2011). It is used by the managers for hiring right candidates for the right job. It
ensures development of workers and promote organisational culture. This will help the manager
of ALDI in complying with legal rules while making policies for workers. Other than this, HRM
helps in making policies to attract a large number of skilled candidates and recruit right quantity
and quality of people.
Functions of HRM Staffing: For increasing the effectiveness of activities of enterprise, there should be
skilled workers in organisation. Human resource department helps in recruiting skilled
workers by performing staffing function that includes the job analysis, human resource
planning as well as recruitment or selection. All these functions help manager of ALDI in
selecting the best candidate from large number of applicants (Functions of HRM, 2017).
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 Benefits and compensation: It is the responsibility of manager of human resource
department to make compensation packages for workers and pay them according to their
work (Boxall and Purcell, 2011). Compensation package of employees include pay,
benefits (both financial and non-financial) and other rewards. By compensating workers
in a fair way, managers of ALDI can increase their level of satisfaction. Human resource planning: It is a process conforming that firm has required number of
employees at workplace in order to accomplish their roles and responsibilities. Health and safety: Under this, employer ensures that working conditions should be safe
and free from risk so that accidents would not occur at the workplace. As workers are an
important or valuable assets of firm, managers of ALDI should make sure that proper and
safe conditions should be maintained. All these not only increase the productivity of
organisation but also provide various benefits to the firm in long run. Labour and employee relations: Maintaining good or healthy working relations with
workers is one of the important functions of human resource management. This can be
done by treating or compensating staff members in a fair and transparent way.
 Human resource development: This function includes conducting training programmes
for individuals or workers in order to enhance their skills. This helps the workers for their
career planning (CHUANG and Liao, 2010). Training programmes are conducted by the
manager in order to give information to workers about performing their current jobs and
giving them information about their future roles and responsibilities.
ALDI can increase the productivity or effectiveness of their business operations by
performing all these functions.
P2. Weaknesses and strengths of different approaches of recruitment and selection
Recruitment is a process of hiring skilled candidates for performing various jobs in the
enterprise. ALDI can use two approaches of recruitment for filling the vacancies in organisation
which are:
Internal source of recruitment: Under this approach of recruitment, manager gives
chance or opportunity to existing employees for getting a higher position in the organisation. In
this, employees get information about the vacancy and then give a chance to show their skills or
capabilities. It is one of the time saving approaches of recruitment.
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 Strengths: One of the main benefits of this approach of recruitment is that it saves the
enterprise's cost of advertisement or training. As employees are familiar with the working
environment, so, this reduces the need of orientation. This method encourages the morale
of workers or motivate them to do better (Daley, 2012). Overall, it is a cost and time
effective approach of recruitment. Managers of ALDI can use this approach for saving
their cost of hiring new candidates. Weakness: As all vacancies are filled with existing workers of enterprise so, this reduces
the chances of hiring new or innovative candidates. This approach fails to give effective
results as this is not necessary that internal or existing workers are capable for the higher
positions in organisation.
External source of recruitment: This is the opposite approach from internal approach of
recruitment. Under this, manager influences or attracts a large number of applicants for filling
the vacancies. This method can be used by ALDI for recruiting the capable candidates. Strengths: This brings fresh or new blood in the enterprise. Also, it helps in making
workplace environment more competitive and increase the creativity in organisation. This
method gives a choice to manager for selecting skilled or deserving candidates from a
large number of applicants.
 Weaknesses: It is a lengthy process of recruitment and a very costly method. This creates
conflicts at workplace among new and existing workers. It includes cost of
advertisements and training to new candidates (Gruman and Saks, 2011). This approach
demotivate or lower the morale of existing staff members of enterprise.
Selection is a process of selecting skilled or capable candidates from large number of
applicants who apply for the job. For selecting a deserving candidate, ALDI can use one from the
following approaches: Systematic approach: Under this approach of selection, recruiter follows a sequence of
steps for selecting a candidate. This method reduces biasness of recruiter under the
process of selection.
 Unsystematic approach: In this, recruiter selects or chooses a random resume from
collected applicants and then compares the skills of candidates from skills required for
performing the job.
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TASK 2
P3. Benefits to employers and employees from the practices of HRM
Practices or activities of human resource management provide a lot of benefits to both
employer and employee (Human resource management, 2016). It brings coordination among
various activities of firm and boosts up the performance of whole enterprise. Employer of ALDI
can be benefited from the following advantages after applying this concept: Planned decision: Human resource management helps the manager in collecting
information regarding various departments of firm (Guest, 2011). All this helps employer
in deciding the future activities of business or help in taking a planned decision for
achievement of effective results. Helps in creating positive work environment: Practices of HRM create or encourage
ethical practices at the workplace. This helps in creating a positive or healthy working
environment which maximises the performance of overall organisation. Evaluate policies: HRM provides an opportunity to manager of human resource
department to evaluate the activities or policies with management of human actions at
workplace. This helps manager in doing necessary changes in the policies for getting
desired results.
 Building team: Manager creates mutual goals which help in building a team. A team
produces better results and contribute more than an individual in the completion of task.
Benefits of HRM practices to employees of organisation can be understood by the
following points: Create a healthy and safe working environment: Practices of HRM deals with number
of employment laws which help employees in getting a safe or risk free environment to
work. It helps employees in getting fair wages for their performance. Provide training to workers: Evaluation of worker's performance come under the
practices of human resource management (Huselid and Becker, 2011). All this helps in
conducting training programmes for employees and giving a chance to subordinates for
increasing their skills.
 Motivate workers: Healthy and safe working conditions, ethical work practices and equal
opportunities to all workers; all this happen at the workplace because of human resource
management. This motivates the workers for performing or giving their best to the firm.
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Managers of ALDI can provide these benefits to both employer and employee by applying
the concept of human resource management in an effective way.
P4. Effectiveness of HRM practices in raising profits and productivity of organisation
Policies or practices of human resource management affects the quality of workers and
their activities and performance put direct impact on the productivity or profits of organisation.
Ethical or effective HRM practices encourage or motivate workers in giving their best to the
organisation (Jiang and et. al., 2012). Productivity or revenues can be increased by increasing the
effectiveness of these practices.
Profit is the sole objective for which enterprise undertakes various types of commercial
activities. For increasing the overall profit of firm, subordinates and their activities play an
important role as these are the one who make final or end products for a large number of
customers. Proper training can be given to them for increasing or maintaining the quality of
products which attract large number of consumers. Increasing number of consumers enhance the
market share of company and total profits of firm. Manager of ALDI can do the same or apply
concept of human resource management in an effective way for increasing the revenues or
productivity of whole organisation.
Overall effectiveness of HRM practices can be evaluated by calculating the profits of a
firm. There is a direct connection between profits a firm generate or between effectiveness of
human resources activities. So, effectiveness of these activities can be increased by the manager
of ALDI for increasing profits or productivity of organisation.
TASK 3
P5. Importance of employee relations in influencing decision making process of enterprise
Employees are the important or valuable assets of enterprise. They play the major role or
contribute in the overall success of firm. This is the reason; it becomes necessary for the
employer to maintain good relations with workers (Kehoe and Wright, 2013). Manager of ALDI
can do the same for getting commitment of workers. Following can be done for building or
maintaining good relations with employees:
 Participative decision should be taken in the enterprise and for this, involvement of
workers should be encouraged in the decision making process.
 Employer should treat all his employees in a friendly manner.
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 Healthy and safe working conditions should be given to workers in order to increase their
productivity.
 Compensation packages of workers should comply with all legislations of employment.
 Employer should treat all staff members in an equal or fair manner and workers should be
compensated fairly.
 Feedback of workers should also be encouraged that will help manager of ALDI in
knowing the issues faced by subordinates while doing work.
 Training or development programmes should be conducted by employers to enhance the
skills of staff members.
 Promotion or appreciation should be given to workers who perform well in the enterprise.
This will motivate employees for improving their performance.
 Communication should be effective among all employees of staff that will reduce the
confusion among workers and productivity will increase as well.
 Implication of job rotation concept can be applied that will help in making the workplace
more challenging and interesting as well as employees will get a chance to learn
something new.
By creating these situations, managers of ALDI can maintain healthy working relations
with employees (Lengnick-Hall, Beck and Lengnick-Hall, 2011). Good relations with workers
help the employer in getting their commitment which increases the productivity of firm. It does
not only improve the performance of workers but also increase their morale and satisfaction
level. By doing this, employer can decrease the amount of employee turnover and this will help
in increasing the goodwill of firm. Good working relations with employees attract potential
individuals towards the organisation.
Commitment from workers help enterprise in achieving its goals easily or getting
competitive place in the market. Satisfying workers help in increasing the overall performance of
enterprise by improving their performance. So, manager of ALDI can do the same for improving
performance of organisation.
P6. Key elements of employment legislation
Employment legislation includes a large number of rules and regulations which deal in
safeguarding the interest of workers in organisation (Ployhart and Moliterno, 2011). These laws
define the responsibilities of both employers and employees towards each other. It tells the
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responsibilities of employers with respect to workers and duties of workers towards the top
management. Mangers of ALDI can increase the morale or satisfaction level of workers by
complying with these legislations while making policies regarding the management of human
resources. Employment legislation includes the following: Employment rights act: This act is a summary of all laws included in the employment
legislations. It describe the basic duties or rights of workers in enterprise. According to
this act, employer is liable for providing safe working conditions to workers. Along with
that, compensation packages of employees should be fair and discrimination should be
eliminated from workplace as per this act. It states that employer cannot explore the
workers by giving them more work. All rules and regulations help in creating a positive
work environment. Worker discrimination act: Workers should not be discriminated on the basis of their
religion, culture, colour, gender or any other difference. Equal or fair opportunities
should be given to all employees for the promotion, transfer and increased pay or on any
basis. Elimination of discrimination helps in creating a positive work environment and
increases creativity or productivity of staff members. Minimum wage act: As per this act, employer has the responsibility to pay minimum
wages to all workers working in organisation. Amount of minimum wage is decided by
the government and change according to the inflation rate exists in market (Purce, 2014).
This wage helps workers in fulfilling their basic needs of routine life including food,
shelter or cloths. Equal pay act: This act states that when two individuals are doing the same kind of job
having same skills or capabilities then it is the responsibility of manager to pay same
wage to them. All this helps in creating a positive work environment and positively
increase the productivity of workers. Work time directive act: This act helps in describing the minimum working hours of a
worker in a week which is 48. For getting the legal existence of employment, employees
are liable to work for minimum hours otherwise, his employment will not be treated as
legal.
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 Disability discrimination act: According to this act, disabled people who are working in
the enterprise should not be discriminated. They should be benefited with all the facilities
or services.
While making policies regarding the management of workers, every employee should
consider these basic laws. All this will encourage the ethical work practices at workplace.
TASK 4
P7. Application of HRM practices
Scope of HRM practices at workplace has a wide scope. These can be applied on almost
every department of organisation for increasing the efficiency or effectiveness of business
activities. Right now, ALDI is facing a reduction in their overall sales and large number of
dissatisfies workers (Wright and McMahan, 2011). Along with that, there is lack of coordination
in the activities performed by different departments. For getting an effective solution to all these
problems or to increase the effectiveness of business activities, managers of ALDI can apply
following practices at workplace: Manpower planning: Every organisation needs a large number of workers for
performing the roles and responsibilities as well as fulfilling various tasks of enterprise.
Human resource management helps managers in making the process of recruitment more
effective. This can help the manager of ALDI for hiring right candidates and produce
high quality products for workers. All this will help the firm in increasing sale of its
goods or services. Training and development of workers: By conducting training or development activities
for employees, skills or knowledge of workers can be increased. Enhancement of skills in
employees help the organisation in achieving its set objectives or goals. Effective decision making: Practices or activities included in human resource
management help the manager in collecting relevant information about all the levels of
organisation. This helps the manager in taking effective or beneficial decision for both;
employee and employer. Producing or delivering good quality products: In today's business environment, it is
essential for every business enterprise to make or deliver quality products to a large
number of customers. Activity of HRM helps in deciding or describing the duties or roles
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of every individual. All this helps in eliminating the confusion among staff members. It
makes the enterprise able to deliver high quality products to a large number of customers. Evaluation of workers performance: Human resource management includes evaluation
of worker’s performance or activity. This helps the manager in knowing current skills or
knowledge of employees which help him in assigning duties to them. Top management of
ALDI can do the same for increasing effectiveness of worker's activities.
 Creating vision and mission: Quality of employees and their skills help the enterprise in
achieving its mission or vision. Skills of workers help the manager in setting objectives
which organisation wants to achieve.
For solving issues or creating a better working environment, manager of ALDI can apply
these practices of HRM for achieving goals or objectives effectually.
CONCLUSION
From the above data included in the report, it can be concluded that management of
workers at workplace is an essential activity for a firm like ALDI. Guiding and managing the
activities of subordinates help organisation in achieving its goals more easily. For increasing
effectiveness of business activities, manager of firm can perform the function of human resource
management in an effective way. It has been assessed that policies and process of managing
human resources should be made with considering all employment laws. Quality of employee
relations affect the productivity and profits of enterprise. So, managers of ALDI should try to
maintain healthy working relations with workers. This not only helps in creating a positive work
environment but maximise the overall performance of organisation as well.
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REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook
of labor economics. 4. pp.1697-1767.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
CHUANG, C. H. and Liao, H. U. I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
psychology. 63(1). pp.153-196.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
Gruman, J. A. and Saks, A. M., 2011. Performance management and employee engagement.
Human Resource Management Review. 21(2). pp.123-136.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Huselid, M. A. and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jiang, K. and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
Lengnick-Hall, C. A., Beck, T. E. and Lengnick-Hall, M. L., 2011. Developing a capacity for
organizational resilience through strategic human resource management. Human
Resource Management Review. 21(3). pp.243-255.
Ployhart, R. E. and Moliterno, T. P., 2011. Emergence of the human capital resource: A
multilevel model. Academy of Management Review. 36(1). pp.127-150.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
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