Effective HRM Policies and Processes for Competitive Advantage: Aldi

This report provides a comprehensive analysis of Aldi's human resource management (HRM) strategies, emphasizing how effective HRM policies and processes contribute to the company's competitive advantage. It explores the strategic development of HRM, including policies related to purpose, behavior, and fairness, and how these elements drive employee performance and organizational success. The report details the importance of effective recruitment, individual contributions, and knowledge building within Aldi's HRM framework. Additionally, it examines the impact of internal and external environmental factors, such as political and economic conditions, on the delivery and effectiveness of HRM policies and practices. The analysis highlights how Aldi adapts to these factors to maintain its competitive edge, ensuring compliance with regulations and fostering a positive work environment that supports the company's goals. This report underscores the critical role of HRM in Aldi's overall business strategy and its ability to navigate challenges while achieving long-term success.

MANAGING HUMAN
RESOURCE IN
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Explain and justify how effective HRM policy and process can help the organisation to
bring competitive advantage ......................................................................................................1
2. Description on three evidence of how internal and external environment factors affects the
deliver of HRM policy and its practices.....................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Human resource in the enterprise plays the crucial role in terms to bring systematic
working. Thus, it is about the relationship between employers and employees so that each things
can be managed effectively (Banfield, Kay and Royles, 2018). The responsibilities of human
resource managers are fall into the three categories as staffing, employee, compensation and
designing the work.
The main motive of HRM is to maximise the productivity if the enterprise by optimizing
the effectiveness of employees. Thus, present report is based on the business activities of Aldi, it
is global leading brand and engaged in retail sector. In addition to this, with help of shaping an
appropriate corporate culture and by introducing the program of the enterprise can able to
support the value of the enterprise and it also ensures its success. The human resource
department is concerned with the performance and implementation of rewards system and it
main ail to bring long term success in the enterprise.
TASK
1. Explain and justify how effective HRM policy and process can help the organisation to bring
competitive advantage
In this developing the effective human resource policy for the enterprise is essential as it
is helpful in order to finding, managing and motivating the workforce so that each thing can be
done in the effectively mode. The HR policies will also be helpful company treats harassment,
health and safety on the job, vacation and performance (Kidwell, Eddleston and Kellermanns,
2018). Thus, Aldi has taken various steps in order to provide the effective services to the
customers. They have developed their HRM practices and policies so that there can be
possibilities in order to bring long terms success to the enterprise.
Furthermore, the main purpose of Aldi is to provide low prices and high quality products
to the customers. With the help of enhancing the competition they have developed the effective
HRM practices so that all thing can be conducted in better and efficient mode. By underlying the
effective human resource management policies and by collaboration on the strategy it is possible
to gain long term success in the enterprise (Hu and et.al., 2018). In addition to this, they have
developed the various HRM practices and it has been defined in the below context manner as
are-
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Strategic development- In this, it can be said that one of the fundamental step is to creation of
HR management polices and procedure so that there can be possibilities to have the high
performance workforce so that enterprise can be profitable and long term profitability can be
achieved. With the help of strategic performance the enterprise can lead to achieve the long term
advantage and this all affects the working of the enterprise. By developing in the plan and action
all things can be done in better manner and this leads to gain competitive advantage.
 Purpose- the main motive of HR of Aldi is to have long term advantage by providing cost
effective services at the lower cost so that there can be possibilities in terms to build
competitive advantage in the industry. With the help of developing effective policy,
examine business strategy and to identify the various key factors that can affect the
working of the enterprise. The training to the employees will be helpful in terms to bring
systematic working in the enterprise (Haneda and Ito, 2018). In this, HR policies will be
helpful in order to provide the safeguards for both company and the workforce so that
better growth can be achieved. The main purpose of HR is to provide the better quality
services and this all leads to gain the competitive advantage in market. This kind of the
facilities affect the working of the enterprise in the huge context.
 Behavioural policies- The effective behavioural policies will work as to clearly define the
work ethics, business relation and all kind of professional conduct so that employees will
perform their role in the better and efficient mode (Gottardello and Valverde, 2018). By
developing the effective policy there will be possibilities to develop effective policies and
to examine the right strategy for the enterprise so that each things can be conducted in
better mode. By taking initiatives as to implements, develops and evaluates HR policies
and strategies will help to create and build positive work environment. The leadership of
Aldi will underpinned by effective HR policies and strategies and it is driving force so
that each thing can be done in efficient mode.
 This term defined as fair rules, procedure and decision that must be applied effectively.
Thus, Aldi gives major focus over the internal personal communication so that each
things can be done in better mode and it must characterised by honesty, dignity,
politeness and respect. This kind of things will be helpful in terms to develop and build
better and effective relations so that things can leads in better manner.
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 The Aldi works as to promotes the importance of HR policies and strategies as per the
relationship and acceptance of diversity and this all things will be helpful in order to
regularly monitors, review critical HR performance and this will be inclusive of quality
of work relationship, organisational justice and staff well being so that each thing can be
done in better mode.
The HR policies and procedures are written by the human resource department of the enterprise
Thus, it can be said that the legal authorities will also comply with the legislation so that each
thing can be build effectively (Chiang, Han and McConville, 2018). Furthermore, it can be said
that Human resource defines the responsibilities and processes in terms to recruitment and
employments arrangements, entitlement and workforce management so that the safety and well
being of the work can be conducted in better mode.
 In this, managers uses the performance management system to develop and evaluate the
team ability to prepare positive work relationships. This kind of activities will be helpful
in order to have good interaction with managerial team.
 The safety policies, workplace standards will all works as to provide organisation with
facilities as working hours, pay information, safety measures, benefits and performance
so that things can be done in better mode. Thus, there are number of policies that works
as to acknowledge the obligation of employers by working as to provide safe working
environment so that employee can feel valued.
Process of HR policies-
Human resource policies are the formal rules and regulation that business put in terms to
hire, train, assess and rewards the member of the workforce so that this all can be dine in better
and efficient mode. The entity will use the human resource practices as the internal part of the
business strategy. With help of developing employees potential and effective strategic way the
things can be undertaken in better mode. In order to gain competitive advantage HR must follow
the following things in below presented manner as are-
Effective recruitment- The entity will be more competitive if they are able to attract and retain
the best talented employees in the enterprise ( Gutierrez-Gutierrez, Barrales-Molina and Kaynak,
2018). There are various top employees and they can works as to perform in effective company
culture and potential can be developed in better mode.
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The HR managers of Aldi, must works as to hire the best skilled employees so that they all work
in the better and efficient mode. Thus, with the help of facilitate the better recruitment facilities
the all things can be conducted in expertise mode.
Importance of individuals- The HR of Aldi's can be able to enhance its competitive advantage
by leading the all activities effectively that can works as to emphasize the significance of
298employee contribution so that enterprise can promote its business activities in better mode.
This kind of things leads to empowers the enterprise and they works as to attainment of company
strategic tools.
Building knowledge- There are number of companies that can work as to increase the
competitive advantage by giving major consideration over the importance of employee
contribution. In this, it can be said that the committed employees and managers empower the
enterprise to works as to rapidly attainment of the firms strategic goals so that all things can be
done in better and efficient mode (Haneda and Ito, 2018). Thus, by developing the things in the
better mode the all working can be conducted in better mode.
Hence, it can be said that this is the term that is critical to corporation growth and prosperity so
that there can be huge possibility in terms to gaining and retaining competitive advantage. In
addition to it, there are number of companies that will works to growing importance of their
human resource with the help of strategic plan so that overall things can be done in better mode.
In this term, it can be said that both HR policies and procedure needed to perform their
work in the appropriate manner so it can be possible implement the polices and procedures by
eliminate and minimise the risk and work as to making the operations of the organisation
smoothly and by conducting the all things in the transparent manner it is possible to gain the
complete advantage. Furthermore, it can be said that the HR policies and procedure are the
complete guide for the management so that enterprise can ensures that firm can perform its
function in the well and smooth manner. Thus, it can be said that the effective and transparent
system will be helpful in order to conduct easier work and it will attracts the employees. In
addition to this, procedures and policies will aid in terms to setting realistic expectation from the
enterprise so that the better things can be achieved.
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2. Description on three evidence of how internal and external environment factors affects the
deliver of HRM policy and its practices.
The successful human resource management strategy will work as to conduct the better
company mission and goals. There are number of the factors that works as to influence the
working of the enterprise in the huge context. By work as to maximising the recruitment and
retention, minimise the employee issues the firm can work as to monitor the internal and
externals environmental factors. The well designed and developed strategy for the human
resource department the various things are needed to be taken into the consideration. The
external factors as-
Political- With the introduction of new workplace and compliance standards the human resource
department can able to work under pressure by comply with the number of the legal
compliances. Furthermore, there are number of rules and regulations and this all activities
influence the process of HR department that is inclusive of hiring, training, compensation,
termination and various other things so that things can be developed in better mode. In this, it
can be said that Without adhering to the regulation the firm can able to perform its business
function in the more appropriate mode (Keegan, Ringhofer and Huemann, 2018 ). Thus, high
level of conflicts and political vulnerability can negatively impact the sustainability of the
enterprise in the huge context so that better profitability can be generated. In order to get the
succeed it is essential to comply with the all laws and legislation so that systematic working of
enterprise can be conducted. In order to have employment legislations the legal authorities
encourages retailers to provide a mix of job opportunities from the flexible, lower paid and
locally based jobs to highly skilled higher paid and centrally located jobs. This kind of facilities
affects the working of the enterprise in the huge context.
Economic conditions- Under it, the one of the external influence of the firm is to provide the
shape to the current economy. Thus, there are number of the things that must affects the working
of the enterprise in the huge context. Furthermore, it can be said that there are number of the
enterprise by performing the activities in the better manner there can be possibilities in order to
enhance the productivity and profitability of the enterprise. Thus, economical factors are beyond
the control of the company and it can affects the performance of the enterprise. Hence, Aldi's can
badly affected by any slowdown in the UK food market and this all are biggest threat to market
concentration risks. This all are affecting working of the enterprise in the huge contetxt.
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Socio cultural- In this, it can be said that the Aldi's is one of the highest paying supermarket in
the UK. In order to sustain for the longer period it is essential to analyse the preferences of the
customers. Thus, higher wages results in better standard of living. By allowing the better food
food facilities the enterprise can able to bring long term sustainability.
Technological advancement- It is also one of the external influence in order to cope up with the
entity must have performed their business with the help of technical advancement so that all
things can be done in better and efficient mode. With the advent of the technical advancement
there is possibility to revolutionize the way of the conducting the business activities
appropriately by internal cost saving. In this, it can be said that customer in present scenario
needs the high tech experience so that technology plays the vital role in order to have
enhancement in user experience and cost effective.
Legal- The legal disputes representing sales of results of the enterprise so that enterprise can be
achieved. Thus, laws and legislation must be followed so that all things must be done in better
and efficient mode.
Environmental- In this, it can be said that the Aldi must works to perform the business activities
in the better mode (Nie, Lämsä and Pučėtaitė, 2018). With the help of supporting the local
produces and ensures sustainability the all things will operate in better mode. The enterprise need
to complay with rules so that better products can be generated.
Workforce demographics- It is the factor that has significant impact over the number of the
market and it also affects the buying behaviour of the customer. In addition to this, it can be said
that by having fast growth and rising in the income can work as to expansion of the market. In
addition to this, the all things can be conducted in better and efficiently mode.
There are number of internal factors as are-
Mission- The Aldi should work as to frame the mission so that all together they can decide to
have one competitive goals with help of which they are able to perform its business objective
effectively. With the help of providing the best customers service it is possible to gain the long
term competitive advantage in the market.
Competitors- The Aldi, must take the initiatives in order to develop the commodities in better
mode. By promoting the better quality products there is possibility to conduct the work in the
better manner and competitive advantage can be achieved (Barrales-Molina and Kaynak, 2018 ).
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By providing better quality products and good customer assistance it is possible to have the
enhancement in productivity and profitability of the enterprise.
Customers- The customers choices are quite unpredictable and they must provide the better
services so that enterprise can able to gain competitive advantage. It is crucial to understand the
choice and preferences of the buyers so that enterprise can able to offer the best services (Haneda
and Ito, 2018). This kind of the activities are essential to have enhancement in profitability so
that better operations can be conducted.
Communication- The main root of the successful enterprise is the robust communication
practices and leader and teams should have better communication. In addition to this, it can be
said that the two way communication will be helpful in terms to bring the proficient results so
298that entity can able to perform its business activities in the better manner.
Organisations structure- In this, it can be said that there are many organisations that has huge
hierarchical structures and they must perform their work with the many layers of leadership and
management defining the enterprise from bottom to top. In the better organisational structure the
all things can be conducted in appropriate manner (Keegan, Ringhofer and Huemann, 2018 ).
Learning- the learning is one of the essential element and it directly and indirectly affects the
Woking of the enterprise. In addition to this, it can be said that better technical advancement
leads to faster change in the rates. Thus, the better encouragement in the innovation and builds
better employee experience the all things can be done in better mode. This are the things that
bring long term productivity and profitability to the Aldi's.
CONCLUSION
Based on the above report it can be concluded that Human resource management play the
crucial role as they play there role as to backbone to the enterprise. With the help of effective
human resource management activities, there will be possibilities in terms to conduct the
business activities in the smooth and appropriate mode. By setting the principles the organisation
can perform their role in better mode. The present report has covered the business activities of
Aldi's, there are number of things has been covered as policies and procedure of HR, the three
evidence has been given on term that how external and internal environment factors affects the
HRM policies and its impacts.
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REFERENCES
Books and Journals
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management.
Oxford University Press.
Kidwell, R.E., Eddleston, K.A. and Kellermanns, F.W., 2018. Learning bad habits across
generations: How negative imprints affect human resource management in the family
firm. Human Resource Management Review, 28(1), pp.5-17.
Hu, X and et.al., 2018. Employees’ reactions to customer mistreatment: The moderating role of
human resource management practices. Work & Stress. 32(1). pp.49-67.
Haneda, S. and Ito, K., 2018. Organizational and human resource management and innovation:
Which management practices are linked to product and/or process innovation?. Research
Policy. 47(1). pp.194-208.
Gottardello, D. and Valverde, M., 2018. Human resource management outsourcing in Spanish
firms: Evolution over time and implication for devolution. Intangible Capital. 14(1).
pp.56-73.
Chiang, H.H., Han, T.S. and McConville, D., 2018. The attitudinal and behavioral impact of
brand-centered human resource management: employee and customer
effects. International Journal of Contemporary Hospitality Management, (just-accepted).
Gutierrez-Gutierrez, L.J., Barrales-Molina, V. and Kaynak, H., 2018. The role of human
resource-related quality management practices in new product development: A dynamic
capability perspective. International Journal of Operations & Production Management.
38(1). pp.43-66.
Haneda, S. and Ito, K., 2018. Organizational and human resource management and innovation:
Which management practices are linked to product and/or process innovation?. Research
Policy. 47(1). pp.194-208.
Keegan, A., Ringhofer, C. and Huemann, M., 2018. Human resource management and project
based organizing: Fertile ground, missed opportunities and prospects for closer
connections. International Journal of Project Management. 36(1). pp.121-133.
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Nie, D., Lämsä, A.M. and Pučėtaitė, R., 2018. Effects of responsible human resource
management practices on female employees’ turnover intentions. Business Ethics: A
European Review. 27(1). pp.29-41.
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