Comprehensive HRM Report: Evaluating Practices at Aldi and Its Impact

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Aldi, a multinational grocery retailer. It begins by outlining the purpose and functions of HRM, including managerial, operative, and advisory roles, with specific examples from Aldi's operations. The report then delves into the strengths and weaknesses of internal and external recruitment methods, evaluating their effectiveness for the organization. Furthermore, it explores the benefits of various HRM practices, such as work design, planning, selection, training, and compensation management, for both the employer and employees. The analysis extends to the importance of employee relations in HRM decision-making and the impact of employment legislation. The report illustrates the application of HRM practices in a work-related context, using specific examples from Aldi. The report concludes by summarizing the key findings and implications of the HRM strategies, and providing recommendations for improvements.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P2 Explaining the prepose and function of HRM at work place.................................................3
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection5
TASK 2............................................................................................................................................8
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee..............................................................................................................8
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity...............................................................................................................10
TASK 3..........................................................................................................................................11
P5 Analyse the importance of employee relations in respect to influencing HRM decision-
making.......................................................................................................................................11
P 6 Identify the key elements of employment legislation and impact it has upon HRM
decision-making........................................................................................................................12
TASK 4..........................................................................................................................................12
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples....................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Manpower plays the vital role in each and every organisation. For managing workforce,
Every firm has the human resource management department or team. Main motive of
department's HR manager is to enhance organisation’s productivity. For this, he has to perform
many functions like recruitment and selection, training and development and many more. (Alfes,
2013). HR manager gives main focus on managing the resources of organisation. Aldi is a
multinational company and brand. it is dealing in selling dicounted grocery and merchandise
products. They have more than 10,000 stores in 18 country. For managing workers, firm should
have effective HR departments. In this report, functions like employees relation, strength and
weakness of cited company and employees relation will be defined, because these will aid in
designing strategies for this organisation. HRM benefits, will be discussed in this project.
TASK 1
P1 Explaining the purpose and function of HRM at work place
In Aldi, there are more than 35000 employees and workers. For managing human resource,
every company have Human Resource Management department. HR manager has to manage
every single resource of an organisation. Their main motive is to enhance organisation
productivity, for this manager has to perform various functions. These functions will give
benefit's to cited company. Functions and purpose of HRM are as follows:
Functions of HRM is divided in three different task
 Managerial functions
 Operative function
 Advisory function
Managerial function: HRM is part of an organisation, their main function is to manage
resource. For this manager need to perform these functions:
 Planing: Planing refers to an activity where manager have to think before hand and set a
path for others to follow. Planning will help in determining goals of the organisation.
 Organising: HR manager have to make objectives and plans for programmes or activities.
For making effective program company manager have to carry out operations. These
operations has to be classified into function which is main aim of organising.

 Directing:In this manager provides guidance to employees so that they can move in
direction and achieve goals and objectives . Manager have to ensure that all efforts made
by employees are in right direction..
 Controlling: Controlling is also known as regulation of programs according to plans. HR
manager has to control all the function of an organisation and employees, for making
effective organisation productivity.
Operative functions
These are those functions which are duty and responsibility of a HR manager. This is managed
by human resource or personnel department (Batt, and Colvin, 2011). The main functions of are
as follows:
 Employment: The major function of a HR manager in organisation is employment.
Manager have to manage all employees and fulfil every workers needs. In this
recruitment, selection, placement etc. have been concluded.
 Development: Training and development plays vital role in organisation. This has been
given to employees for encouraging their performance in firm. This will assist in
developing skills, knowledge and attitude of employees.
 Compensation: Every employee work for compensation, which is given by cited
company. For this HR manger is appointed to give compensation to each and every
employee. The compensation will be given on time in monetary value.
 Maintenance: The organisation have numerous employees who have to be managed and
to do so manager have to make healthy environment in organisation. HR manager have to
ensure safety and comfort at the work place. This will encourage employee's
performance.
 Motivation: Employees perform their job for fulfilling their need, which will give
satisfaction to them. this will lead them gaining motivation . Satisfaction will be given by
the manager by fulfilling their needs.
Several other functions which perform by the human resource department of ALDI are as follow: Recruitment and selection: A major function which perform by managers of ALDI is to
recruit high proficiency candidates in an organisation which are helpful in making
operations more and more effective. Thus, managers have to select only such number of
respondents whom are highly motivated so that cost which incur on that get reduce.

 Leading: Workforce should have to work in an ethical manner by removing all difference
from workplace. A perfect and good working relationship get maintain through proper
leading and management. ALDI human resource department have to take this fact in
account and lead whole team properly by working on all conflicts and problems between
them and management.
 Training and development: Another major function which perform by HR manager of
ALDI is to provide proper training to employees and developed them by providing
growth. This function is appropriate for them so that employees become able to deal with
customers in an appropriate manner.
These are several number of functions which perform by human resource manager of a company.
This is helpful in making the outcome appropriate in nature so that they are going to ascertain all
objectives and targets properly with high rate of accuracy.
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection
The main function of HRM is to manage employment. For this it have to perform
recruitment and selection or placement. There are so many different method of recruitment and
selection which is divided on the basis of job place. External and internal are two different type
of recruitment methods. Manager have to choose effective method of recruitment and selection
according to needs in organisations (Campbell,, Coff, and Kryscynski, 2012). Before making
recruitment and selection of any candidate manager has to analyse job, this will assist in
identifying the needs, skills, knowledge and attitude. This also show responsibility and powers of
particular post. According to this recruitment and selection has to be conducted. Different
methods of recruitment and selection are defined below:
Internal recruitment method: In this recruitment method, candidate will be selected from
inside organisation. Manager will analyse performance of each and every employee of an
organisation and analyse the need of vacant job, then it will select the skilled person, who have
quality of performance and ability to use the powers and manage the responsibility of that job.
This will help reducing the additional cost that would be spent on external recruitment (Choi,
2011). Managers will not be able to take so many responsibility for example need of training and
need of giving information about policy and norms of organisation.
Advantages of internal recruitment selection method:
 This will boost morale

 The candidate will be assessed properly
 It take lower cost for selecting the candidate
 This will give motivation towards the good performance
 This will give success to employee in terms of promotion
Disadvantages of internal recruitment selection method:
 It can create moral problems in employees relation
 It have less number of potential applicant for a particular job
 No new idea can be generated in organisation performance.
 It will create another vacant place which company have to fulfil.
In internal recruitment and selection there are many source which manager has to choose
for effective recruitment activity (Clark, 2016). Different sources of internal recruitment are as
follows:
 Promotion
 Departmental exam
 Transfer
 Retirement
 Internal advertisement
 Employees recommendation
External recruitment method: In this recruitment method, candidate will be selected from the
pool that exist in market. The candidate will be new for organisation. In this candidate are
selected after analysis of their skills, knowledge and attitude. Manager will select candidate, for
giving some responsibility and power to him according to SKAI (Skill, Knowledge, Attitude and
Information). This will result in building an effective new employees (Dul, Ceylan, and Jaspers,
2011). There are some advantages and disadvantages. According to this. Manager will select
effective method of recruitment.
Advantages of External recruitment method
 The company will have huge pool of candidates out of which it can select the best one.
 It provide opportunity for fresh candidate in organisation.
 Bringing fresh employee, will give motivation to other employees and they will start
sharing their new ideas.
 This will give a key player to company for getting success in the market.

 This can give experienced candidate who will give high quality of productivity and
efficency to organisation which will give benefits to company.
Disadvantages of External recruitment and selection methods
 It is time consuming
 It need more cost in hiring any candidate for organisation.
 It can damage the employees morale, because new candidate do not know about
organisation environment.
 Fresh and new candidate need some training which will take some time and cost of
organisation.
 It will be difficult to tell and awarethem about organisation norms and policy.
There are different source which will be used in undertaking external recruitment and
selection method in an organisation. These are as follows:
 Employment Exchanges
 Advertisements
 Employment agencies
 Professional associations
 Campus recruitment
 Deputation
 Word of mouth
 Raiding
These are some sources which a manager can use in undertaking external recruitment. In
external recruitment fresh employees will give new idea and company can also get experienced
employees which will give impact on organisation productivity (Fulton, 2011).
TASK 2
P3 The benefits of different HRM practices within an organisation for both the employer and
employee
HRM plays a vital role in Aldi. Human Resource department has to manage performance
of organisation (Fulton, 2011). This will assist in developing business activity. There are so
many practices which HR manager has to perform for enhancing organisation productivity. The
main practices of HR manager are as follows:

Analysing and designing work: The man task of every manager is to analyse all factors, which
will impact on business of an organisation (Guest, 2011). These analyse will assist in effective
design of the work. This will help in designing performance effectively for an organisation.
Benefits of analysing and designing work:
 Reduce risk
 Help in proper utilisation of resource
 Assist in decisions and planing strategy
Planing: There are so many performance and activity which are implemented in an organisation.
These activities motive is to, development and growth to firm (Jabbour, 2013). For this, planing
should be done by manager for implementing activities. All the activities will be performed in
some structure.
Benefits of planing
 Give appropriate attention to particular area
 Support in salving issues and problems. Effective coordination between employees and
employer
Selection: HR manager has to manage employment in an organisation. If any job is vacant then
manager have to do recruitment and selection of candidate. The manager have to choose
effective methods of recruitment and selection by internal and external methodes (Kakuma,
2011). This will give effective candidate to a particular job.
Benefits of selection and recruitment:
 Find the effective candidate for vacant job
 Make effective chain of work
 Bring new idea and new person to organisation
Training and development: If performance of employees is not good then HR manager has to
give training to employees for their development. This training is also provide to fresh people or
newly appointed people to organisation (Kehoe, and Wright, 2013). This will help in developing
skills and performance of employee.
Benefits of training and development
 Give motivation towards there task
 Develop employees performance and coordination.
 Help in developing skills and knowledge at personal level

Compensation management: In an organisation every employees work for consideration. The
consideration is always in monetary value. This will full file employees need and give
satisfaction to them. HR manager Should manage and provide compensation to employees
according to their job.
Benefits of Compensation management
 Give satisfaction to employees and work
 Encouraging the performance of the employees
 Full fill individual need and give development to individual person.
Performance management: HR manager Should analyse all performance of employees and
staffs (Jiang, 2012.). Manager have to see that every one will give their 100 % to their task. This
will increase productivity of the organisation.
Benefits of performance management:
 This will develop the employees team performance
 This will make organisation productivity
 Develop employees performance and coordination in team
Employee relation: In Aldi, there are so many employees are working. If employees make
conflicts at the work place, this will break coordination of their and it will also impact on
organisation productivity. So HR manager has to manage the healthy relation in between the
employees. This will make development of employees.
Benefits of employee relation
 Encourage moral values
 Effective communications
 Develop coordination
Different number of human resource management practices provide support to employer
and employee. Thus, few number of benefits are identify in relation with employer and employee
which are as follow:
Employer Employee
Retention all employees properly by satisfying
them which reduce their turnover.
Higher salary packages to get motivated so that
objectives get attain properly.

Using proper recruitment process will support
in selecting more adequate candidates.
Maintain healthy and positive environment in
an organisation.
Provide reward so that motivation level get
enhance.
Good training and development facility
opportunities have to provide to them in
relation to maximise efficiency.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity
HRM functions are shown above, which will help in developing organisation
productivity. there benefits are also shown above. The main objective of HRM, is to make
development in business activity, For this, HR manager have to identify and analyse all resources
which are using in an organisation. Then he will use every signal resource effectively,, which
show management of HR manager. This will create the development in organisation
productivity (Jabbour, 2013). In an organisation finance and humans are playing vital role in
Aldi. For managing the human resource organisation, organisation has human resource
management department. They perform task for managing, which will assist in making
effective use of resources in an organisation, because if employees will make wastage of
resource this will make loss for employees and company. Benefits of HRM practices in team of
profit and productivity are as follows:
HRM practices
 Compensation management: For gaining specialised in talent and gain return
compensation management is an essential function and thing. A major thing for maximise
the work is to provide reward to such person for such and greatest extent towards that.
This will enable ALDI in maximise their profit through which more appropriate outcome
get gain.
 Recruitment and selection: Select and recruit such number of employee whom are fit to
such position. Along with this, they have appropriate knowledge about such skills and
things. ALDI managers have to identify such number of personalities whom have
capability to deal with every sort of things properly.

 Resource management: ALDI can increase their profit and productivity by allocating
proper resources. Resource management is a major function which aid in maximise return
and enhance profitability and productivity as well. Thus, resource management is a major
function which perform by human resource manager of a company.
 Training and development: Provide proper training to all candidates whom got selected
for a specific purpose. This is a supportive function which enable management to
ascertain all goals and targets properly. Thus, by ascertaining them effectively, training
and development is an essential function. ALDI, HR department have to make such
functions properly so that their overall development and growth could maintain.
TASK 3
P5 Analyse the importance of employee relations in respect to influencing HRM decision-
making
Aldi having so many employees in their organisation. HR manager are managing
resource, which will assist in performing given task. They play vital role in an organisation
productivity. So HR manager play important role in an organisation management, he aids in
making management of human resources (Guest, 2011). HR manager have to perform some
activity, for analysing need of employees in an organisation. This will help in making healthy
environment in an organisation, which was a main motive of HRM. This will make effective
activity at work place.
HR manager has to identify all needs of employees. These need have to be analysed by
manager. If these need will be full filed, then employees will be able to get motivation towards
their task, which will assist in effective performance of employees. For this manager has to
identify all these needs of employees and workers. This will show every problems from
organisation, which are as follows:
 Policies and procedures
 Work related issues
 Change implemented
 Not gating proper training
 Grievance process
 Not having effective communication

 Safety tools and instruments
These all have to be followed and given to employees. This will provides employees
satisfaction. Through this company manager will able to make effective relation between
employee and employer, because it will assist in solving every single issues of employees at
work place. This will make satisfaction to every employs, which will create effective motivation
in employees towards their task (Fulton, 2011). If employees will perform effective performance
in organisation, then this will aid in Aldi business activity. this show that employees relation is
very important in organisation productivity.
P6 Identify the key elements of employment legislation and impact it has upon HRM decision-
making
There are some important factors, Which Aldi HR manage has to identify for making
effective relation with employees. These factors have to be analysed by HR manager of an
organisation. This will assist in developing business activity. In an organisation human resource
are very important for performance and productivity of organisation. Employees will get
satisfied by getting full fill filament of there need, but at the level of group employees and
worker, which can be denoted as union, they have some demand. There are some legal rules,
which are known as labour laws, these have to be followed by HR manager to make satisfied
employees (Choi, 2011). It will give motivation to employees and worker, through this will give
employees100% to task performance. There are some important needs of labours, which
company have to give. The major need of employees according to employment legislations are
as follows: Equal act pay 1970: In this organisation has to give equal amount of salary and wages to
employees, which was decided at the time of selection. Sex discrimination act 1975: In organisation, employees can be male or female.
Organisation has to give equal opportunity and respect to both of them. Race relations act 1976: in the organisation, there should no discrimination on the basis
of county, culture and religion. Disability discrimination act 1995: in the cited company, there should not be
discrimination for handicap or disable peoples. Employment equality ( religion or belief) regulation 2003: At the time of employment,
company not sapose to do discrimination on the basis of religion or belief.