Human Resource Management Report: ALDI HRM Practices Analysis

This report delves into the Human Resource Management (HRM) practices implemented at ALDI, a supermarket chain. It examines the purposes and functions of HRM, including recruitment, orientation, maintaining good working conditions, employee relations, and training and development. The report analyzes the strengths and weaknesses of internal and external recruitment approaches, highlighting their impact on talent acquisition and organizational efficiency. It further explores the benefits of various HRM practices for both employers and employees, such as conflict resolution, training, and motivation. The effectiveness of these practices in raising organizational profit and productivity is assessed, along with the methods employed in HRM, including on-job learning, group discussions, and role-playing. The report concludes by evaluating the application of HRM practices within ALDI, emphasizing both personalized and systematic recruitment approaches, providing a comprehensive overview of HRM strategies and their impact on ALDI's operational success.

Human Resource
Management

Table of Contents
INTRODUCTION.......................................................................................................................1
TASK 1.......................................................................................................................................1
P.1 Purposes and functions of HRM...........................................................................................1
M.1.Functions of HRM in providing talent and skills................................................................2
P.2.Strengths and weaknesses of different approaches to recruitment and selection.................2
TASK 2.......................................................................................................................................3
P.3.Benefits of different HRM practices for both the employer and employee.........................3
P.4.Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.................................................................................................................................4
M.3.Methods used in HRM practices.........................................................................................4
D.2.HRM practices and application within an organisation.......................................................5
TASK 3.......................................................................................................................................5
P5 Importance of employee relations in influencing HRM decision-making.............................5
P.6.Key elements of employment legislation and its impact upon HRM decision-making.......6
M.4.Key aspects of employee relations management and employment legislation that affect
HRM decision-making................................................................................................................7
D.3.Employee relation and application of HRM practices that inform and influence decision-
making.........................................................................................................................................7
TASK 4.......................................................................................................................................8
P.7.Application of HRM practices for given scenario................................................................8
M.5.Provide a rationale for the application of specific HRM practices......................................8
CONCLUSION...........................................................................................................................9
REFERENCES .........................................................................................................................10

INTRODUCTION
Human Resource Management is defined as management of human resources and is
designed to improve employee's performance in order to achieve employer's objectives and
goals. This department is responsible for seeing employee benefits, recruitment, training and
development and rewarding systems. Overall welfare of employees is done and their problems
are corrected. Recruiting people see to firing and hiring of candidates for job. ALDI is a
supermarket chain in UK. In this report we will see functions that HRM performs and various
methods used in it (Buller and McEvoy, 2012). Various laws which are made for employees and
used in order to help in decision making process. This report is about various HRM practises
used in ALDI and how they affect business practises. Appropriate ways can make huge
differences in output of an organisation and hence, is important.
TASK 1
P.1 Purposes and functions of HRM
Human resource development is responsible for following functions :
1.Recruitment and selection process : It is a process of screening, selecting potential and
qualified potential for a particular job in order to achieve particular goal of organisation. Goal of
such process involves attracting potential employees and it let unqualified candidates opt
themselves out.ALDI recruits during a particular time of whole year.
2.Orientation program : This is really important as it helps new employees to adjust with
business environment and feel comfortable. This program should include goals and objectives of
organisation and help them achieve it.ALDI provides an induction program in order make
employees comfortable with their culture.
3.Maintain good work conditions : HR's are responsible for maintaining good and comfortable
working conditions (Lepak, Hu and Baer, 2012). Fundamental duty is to keep them motivated
and do work as perm requirements. As, it is natural that an employee would perform better if he
or she is happy. This can happen when they are benefited financially and non-financially too.
4.Employee relations : HR's are responsible for maintaining good relations between people and
company. Better relations will make productivity grow.ALDI does it by organising various
recreational activities.
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5.Training and development : One of the most important function of human resource
management is to provide training to new candidates and make them ready for job. ALDI has
made it necessary for every employee to undergo training for 3 months.
M.1.Functions of HRM in providing talent and skills
ALDI uses managerial functions in order do the planning and then executing it. These
include way of recruiting and changes that are required to achieve a particular task. HR also
suggests to top management various needs and requirements to be fulfilled for better functioning
of ALDI. HR management is having a significant role in the recruitment and selection, training
and development, employee relations, employee's assistance and betterment for the working
environment of the organisation to improve working efficiency of employees. Operative
functions incudes recruiting employees and providing training to them. This is done in order to
bring out best outcomes of both employer and employees. Roles have to be specified and proper
monitoring is done.
P.2.Strengths and weaknesses of different approaches to recruitment and selection
Company can recruit their employees by two types of sources which are internal and
external sources. Strength and weakness of both approaches are given under here;
Internal recruitment: In this company can fill their vacant post by using their internal sources
like; promotions, transfers etc.
Strengths :
1. Quick decision is one of strongest strength of internal recruitment. Decisions made here is
really quick and doesn't require much time (Jiang, Lepak and Baer, 2012). ALDI take quick
decisions in order to decide what, how and when things will change for an employee. Company
can recruit easily a trusted person for a job opportunity.
2.It is seen that promoting an employee or transferring him to other departments. Since, ALDI
knows which employee deserves promotion hence a deserving candidate will take that job
position.
3.Cost of recruiting and time involved in induction is also saved here. Since no need of any
advertisement is required here a lot of money is saved. Also, induction program won't be
required since it is mandatory for new employees.
4.Loyalty is propagated here. An employee will be more loyal in this way. It's a good thing for
ALDI.
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Weaknesses :
1.No new skills are brought : Since no new employee will come, new skills won't be available
for ALDI
2. No new innovative ideas come here : Old employees will have same old ideas.
3. Difficult to find right candidate for right position.
4. It can be used a for a longer time recruitments.
External recruitment
Strengths :
1.New skills and dynamic people : With new people comes various skills and resources. Better
productivity and expansion of business can be done here.
2.More experienced people : Recruiter will have more experienced people for ALDI. Experience
helps in taking better decisions and reduces chances of faults and errors.
3. It provides a proper solution for the recruitment and selection of person in the organisation.
Weaknesses :
1.Long process, takes time : External recruitment is a long process and so it takes time to get
completed (Buller and McEvoy, 2012). Even for a small interview candidate has to undergo
long process.
2.Expensive due to advertising about jobs : To attract customers advertisements has to be made
and extra money is invested in ALDI.
3. It is a time taken process for the company to recruit by this method and it is a investment of
finance also in it.
TASK 2
P.3.Benefits of different HRM practices for both employer and employee
HRM is an important department of ALDI. It can be seen that good relations are
maintained by employing feasible policies. It is beneficial for employee as :
1.Resolution of conflicts : HR Managers of ALDI are responsible for controlling over disputes
between employees, management and so on. They are responsible for making policies, rules,
workplace behaviour and other regulations required in organisation. HR creates a link in between
the employer and employees which can help to the company to create a better working
environments which finally supports to the employees to attain objectives in the time.
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2.Training and development : Help worker to get trained and be ready for new job. They are
responsible for giving various training sessions in which employees can improve their skills and
productivity. Can be used to get a promotion as well by any employee.
3.Relations of employees : Gives rights to employees who feel their rights have been taken
away (Truss, 2013). If anybody is been harassed then they can contact HR and solution can be
made to it.
4.Information resource : Information is really crucial for employees. They can directly ask HR
for various queries they have and feel satisfied.
Employers are benefited in following ways :
1.Promotes positive behaviour : HRM practises creates positive working environment and
favourable benefits for employees and in result makes it very productive. They make them
undergo such activities which enhances positive behaviour. If an employee will feel bad and low
then it will directly impact its performance at work.
2.Developing Employees : It is the duty of human resource team to make employees be ready
for job (Buller and McEvoy, 2012). Their training and motivation improves employees and make
them productive for assigned work. Employees have to be trained and accustomed with ongoing
trends in trends to work in a better ways.
3.Motivating Workers : Motivation is a strong factor in determining the way an employee will
work for company. It can be seen that motivation may come in many ways as by giving awards,
appreciation, salary appraisals, promotion, also motivational speeches and programs help them
grow.
4.Building a Flexible Workplace : working environment has to be good and really comfortable
for employees .If rules will be too strict and not workable environment is provided then problems
can arise for firm. Under such circumstances worker will work under pressure and hence will be
of no use. HRM provides a flexible workplace and so it results in a happy and workable place.
5. Attainment of objectives: HR practices helps to the employees to work better which finally
impacts on the attainment of the organisational objectives which can help to the company to
maintain their profits.
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P.4.Effectiveness of different HRM practices in terms of raising organisational profit and
productivity
Raising organisation profits and productivity is one of most critical goals in business. It is
seen that HRM practises can change whole scene and helps a lot to organisation.
1.Effective managers and leaders : Managers and leaders with help of HR are able to lead
employees and direct them to their goals (Jiang and et. al., 2012). These managers and leaders
too are selected by HR. It is due to these leaders that whole team work towards a particular goal,
get motivated and result in better productivity.
2.Collaboration and best-practise sharing :It is the idea of HR managers to develop methods
to increase cross-functional collaboration and sharing (Truss, 2013). Others that are outside of
team freely collaborate and share best ideas improve productivity significantly.
3.Employee skills, knowledge and communications : These can be developed and made better
by using various programs led by a HR. As productivity of employees becomes better it leads to
profit generation for firm.
4. Staffing: This is the main HRM practice which helps to fill vacant posts in the company, it
supports to maintain a productivity level of the teams which are working in the ALDI.
M.3.Methods used in HRM practices
Their are different HRM practises used by ALDI. They are as follows :
1.On-job-learning : These include providing training when job is started. ALDI does it by
providing a manual which has to be read and understood. In this approach direct learning is
provided to the with the help of formal classroom method.
2.Group discussions and tutorials : Are very effective as it boost confidence of employees.
These include discussions over treating customers and convincing them to buy products.
3.Outdoor training : It helps in team building and break comfort levels of employees.
4.Role playing : Due to this creativity is built and a better way over finding solutions to
problems can be known. This is really helpful for developing a productive worker and increasing
confidence.
D.2.HRM practices and application within an organisation
ALDI uses following recruitment approaches:
1.Personalised recruitment
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Strengths : Get to know candidate personally and know every quality he or she possess. ALDI
uses it know what the candidate has to offer for them and how he will be in future for company.
Weaknesses : Time consuming and traditional way of recruiting. Partiality can also happen of
any mutual connection comes up.
2.Systematic recruitment
Strengths : It does not have any biasses in selection process. Only candidates who have quality
are selected.
Weakness : Not readily available in all organisations.
3.Both approaches.
Strengths : Gives proper results and there are no bias decisions also. Selection is done by taking
personal interviews. ALDI uses this technique in order to make selection of best candidates.
TASK 3
P5 Importance of employee relations influencing HRM decision-making
Employees relationship is able to influence the productivity of organisation with the help
of decision making process. They are the ones who work in structure and environment developed
by ALDI. So, they know real problems and experience these changes. Having good employee
relations makes smooth functioning of a firm. Also if they are involved in decision-making
process then it improves relationships with them and they will respect company and perform
better.
1.Decision types : Various decisions requires different types of people. Having good employee
relations will lead to better understanding of matter and proper decisions can be made. An
employee leader can raise questions over problems on going with employees and can force
company to take actions over it. If employees will be treated well then only they will do work
happily and retention will happen. But this is also true that employees can't be involved in every
decision of firm. There are certain boundaries to it and must be taken care of.
2.Various angles : Limited number of people lead to taking decisions over particular topics.
Sharing their thoughts about ways of improving a problem can be useful (Van De Voorde,
2012). An employee can tell their grievances better as compared to some manager. And in
meeting issue can be addressed really well by looking at it in a different angle. When more
brains are involved in a process then more number of solutions are received.
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3.Associates feel better bonds and focus on future : Due to better relations bonds can be made
stronger and future decisions can be made relatively easier. This is a very good way of
maintaining healthy relations with them.
4.Trust issues : Companies which keep employees in dark while taking decisions loose their
trust .By involving workers in decision-making process transparency happens and is good for
firm (Jiang and et. al 2012). Even during tough times and negative situations both employer and
employees will be prepared. Hence, a good bonding will be developed.
5.Feel motivated : Involving a worker in decision making process makes him or her privileged.
This is very important and gives a good feeling to them. In this way they use their creativity to
win over problems which keeps coming constantly.
6. Better decisions: Health employee relationship can help to the company to take a better
decisions according to the needs of the employees. Negative working environment can make a
negative impact on the employees which can misguide to them to take decisions.
P.6.Key elements of employment legislation and its impact upon HRM decision-making
Employment legislation refers to all sorts of rules and regulations which are made in
favour of employees and avail them benefits. There are three sensitive areas of legal matters and
they comply of most common ones as providing equal opportunity, taking affirmative actions
and harassment. Through the “Equality Act 2010”, employees are not discriminated on the basis
of factors, such Race, ethic origin, colour,gender,disability and so on. It helps in getting equal
opportunities to the workers.
Main purpose of these laws are to ensure equal treatment at work, taking extra effort to
hire such people and to eliminate effects which happen due to past actions. Discrimination
should be removed from any organisation (Kehoe and Wright, 2013). It can be seen here that an
employee would under perform under such hostile conditions. Why would a worker work for a
company who gives them such bad conditions. It becomes essential for HR to see that these strict
laws and regulations are followed and employees are kept safe. Some of federal laws which are
shaping HRM practises are as follows :
1.National Labour Relations Act ,1935 : Employers are recognised for a union which is chosen
by majority of employees. This party is responsible for taking collective decisions and
bargaining.
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2.Age Discrimination in Employment Act, 1967 : It prohibits any age discrimination against
employees between 40 and 65 years of age and it restricts mandatory retirement. According to
this act company HR managers can not make differences in the salary of younger and older
people working on the same post in the company.
3.Occupational safety and health act, 1970 : maintain safety standards and healthy working
environment.
4.Family and medical leave act, 1993 : Permits employee working in an organisation with 50 or
more workers to take 12 weeks of unpaid leave for family or medical reasons every year.
According to this act company has to allows leave of those employees which are having a need
to took leaves for family and medical related issues.
These laws have following impacts over ALDI :
1.Keeps employees happy and away from any organisation.
2.Better productivity since better working conditions are provided.
3.Good standards are maintained.
4.Long term goals are achieved.
5.Brand image is also improved.
M.4.Key aspects of employee relations management and employment legislation that affect
HRM decision-making
Employee relations and employment legislation is very crucial in determining company's
performance and productivity. It can be seen that relations at ALDI are improved by involving
more number of employees in decision making and is very useful. According to the Age
Discrimination Act 1967 company has can not discriminate people on the basis of age factor so
same age group of people will work on a same type of post in the ALDI. For an example for the
job of sales executive company will recruit freshers which are energetic and communicative so
this will help to the company to make a better environment and relations. So according to this
HR department has to recruit same age group of people for similar designation. Employment
legislation is responsible for making all laws and removing discrimination from firm (Jabbour,
de Sousa Jabbour and et. al., 2013). ALDI keeps a record of their employees and they are given
good working conditions.
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D.3.Employee relation and application of HRM practices that inform and influence decision-
making
According to Jabbour, (2013), HRM practises provides a platform for equal opportunity
to every employee which helps to the management to make a better working environment in the
company and healthy employee relations. It creates a huge impact on the decision making of the
HR, all decisions are based to develop better employee relations. A worker is given complete
opportunity to put his words in front of panel. Since, their grievances is of utmost importance so,
decisions are taken for mutual profits of firm as well as employee. ALDI has developed a
feedback form and a complaint box. Employees can directly write their issues and address their
problems to management for any action. This way decisions vary according to needs of an
employee. It is through HRM practises only that information is collected and related decisions be
made over it.
TASK 4
P.7.Application of HRM practices for given scenario
HRM is a significant part of the company which helps to develop a better working
environment. Recruitment and selection are main area in which HRM works in the company,
ALDI is having several department so HR managers has to recruit people accordingly which can
help to the company to attain their objectives. A scenario is presented to recruit sales
representative in the company;
Selection of recruitment method: In the first HR has to select recruitment method to
recruit people in the company. Advertisement for the job role can be published in newspaper and
job portals which can help to the company to invite candidates for the interview process. Job
portal are effective in this work, it has a proper reach in those which are needed jobs.
Interview process: Now HR managers have to decide interview rounds for interviewees
to classify best candidate for the job role. Three round will be conducted which are here;
 In the first a HR round will be in which HR will describe job responsibilities and salary
structure to interviewee.
 Second round in which analytical, numerical and reasoning skills will be evaluated by
organising aptitude test which can help to make a grade in the candidates.
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