Human Resource Management Report: ALDI Company Analysis

This report provides an in-depth analysis of human resource management (HRM) practices within ALDI, a multinational retail company. It begins by outlining the fundamental purposes and functions of HRM, emphasizing its role in maximizing employee skills and organizational productivity. The report then delves into recruitment and selection, comparing the strengths and weaknesses of internal, external, and third-party recruitment sources. It further explores the benefits of HRM policies for both employers and employees, highlighting how effective HRM enhances productivity, ensures health and safety, and fosters conflict management. The report also examines the effectiveness of HRM in increasing productivity and growth through information systems, talent management, and reward systems. Finally, it underscores the importance of employee relations in decision-making and the impact of employment legislation on organizational processes, providing a comprehensive overview of HRM strategies within the context of a major retail enterprise.

Human Resource
Management

INTRODUCTION
Human resource management is considered to be the most effective function in an
organisation. This function is valuable in management of people in large as well as small
business enterprises (Barney, Ketchen Jr and Wright, 2011). A perfect management of human
resource helps in maximising employees skills and working ability within the firm in respect to
attain organisational goals and objectives. Human resource management consist as the process in
which finding, recruiting, screening and training are included. In an organisation HR manager is
responsible for all activities that are held at work place as to gaining high profit and growth at
work market place. ALDI is worlds largest multinational retail company who deals in high
quality goods and service in order to satisfying the necessity and wants of buyers who are willing
to taking benefits of offered goods and services of an organisation. ALDI is privately owned
corporation and employees, suppliers, customers and community members are the stakeholder of
company. As firm is using various effective marketing strategy in command to gaining attention
of large number of people.
TASK 1
P1) The fundamental purpose and functions of human resource management.
In each business firm human resource management plays most effective role in increasing
performance of employees at work place in order to maximising the productivity and
profitability of firm. As a biggest retail company ALDI is focused on managing their human
resource at work place, so that perfect utilisation can be made in respect to gaining attention of
customers through offering variety of goods and services. The major purpose of creating human
resource management is to make sure that organisational work can be done through perfect
coordination of employees. Each business organisation is focused on hiring well educated and
skilled HR manager at work place, who is having the ability to motivate employees at work place
in order to enhancing their performance and working ability (Batt and Colvin, 2011). The major
purpose of human resource management is to distinguishing the basic necessity and wants of
employees in respect to satisfying them in most efficient way.
Some major functions of Human Resource management are described as under:
Recruitment and selection: This can be considered as the major function of human resource
management which plays most effective role in developing skills and ability of employees at
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work place. Recruitment is the process of collecting, screening and selection well skilled and
qualified people at work place for available job vacancies. ALDI set a criteria for some particular
opportunities and select applicants as per the needs and requirement of selected criteria. The
basic purpose of this section is to attracting various people who are having significant skills and
knowledge for performing job and task.
Maintain good working environment: It is the prime responsibility of HR Administrator to
establish coordination between organisational workers in respect to implement effective working
environment in which people easily communicate with other employee's or subordinates. An
effective and friendly working environment helps in encouraging employees for contributing
their more efforts for completion of job responsibilities in desired period of time (Bolman and
Deal, 2017). ALDI come up with some innovative and new ideas or functions that helps in
providing financial or non financial benefits to their potential workers.
Training and development: This describes as the most effective function which plays by each
organisation in order to providing significant knowledge to perform any job or task at work
place. This helps in providing proper assistance to organisational employees in respect to
developing their working ability.
P2) Strengths and weaknesses of different sources of recruitment and selection
Recruitment and selection is the major function which is mainly performed by HR
manager in respect to fulfilling the job vacancies in an organisational structure. It is the major
duty of manager to identifying the most suitable strategy through analysing the strength and
weaknesses of firm or its employees. Company recruit well educated and skilled people through
various sources in order to fulfilling the basic and requirement of firm. Some essential sources
are described as under:
Internal sources:
This method of selection can be considered as the most effective choice of requirement in
respect to fulfil the small requirement and vacancies within the firm (Bröckermann, 2012). In
this company is focused on providing job opportunities to the people who are part of company
and working on an another job profile. This kind of appraisals are done as per the skills and
ability of individual.
Advantages Disadvantages
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 The available vacancies are fulfilled
within the firm at very less economical
price.
 This is less time consuming process of
firm.
 This may cause discrimination among
organisation or its people.
 Skilled people are not appraised due to
some personal as well as professional
issues.
External Sources:
It can be considered as the most applied source of recruitment. In this selection of
employees can be done through various out side resources (Campbell, Coff and Kryscynski,
2012). This is the most common tool which is widely applied by external resources of
recruitment due to availability of various alternatives.
Advantages Disadvantages
 The basic advantage of this approach is
to higher most suited and educated
applicants at work place.
 A fresh talent is introduced for
handling various responsibilities at
work place.
 This is lengthy and cost consuming
process. \
 The morale and motivation of old
employees decline.
Third Party:
In contemporary business environment, this approach is widely used by HR managers for
hire most suitable employees for any job profile (Cloke and Park, 2013). In this recruitment can
be done through any recruiter agency or institution in order to fulfils wants if these mega centres
in terms of human capital.
Advantages Disadvantages
 It provide help to organisations for
handling the matters of job in terms of
money.
 With the help of this there is n need for
company to divert their time in
 The major risk arises in understanding
of job requirement.
 The hired person may or may not be
able to perform organisational task.
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recruitment and selection.
TASK 2
P3) The benefits of HRM policies for employer or employees in an organisation.
Human resource management plays most effective role in managing people in an
organisation in effective manner so that proper utilisation of resources can be made. As a large
business enterprises ALDI has over 20000 employees who are working with them in its UK
domain. ALDI operates in retail sector and focused on appointing right employee at right place,
so perfect utilisation of resource can be made (Coff and Kryscynski, 2011). Human resource
practices are beneficial for employee as well as employer at work place, some essential benefits
are evaluated as under:
The benefits of HRM for employees Enhanced productivity: With the help of effective implementation of HRM practices
productivity can be increased through utilising appropriate resource for completion of
task or any activity. This is beneficial for employees growth and also consist with
organisational success and growth at market place. Health and safety: It is required for each business organisation to adopt the measures of
safety and security of employees at work place. ALDI provide proper training to their
employees for managing hazardous machinery and provide proper knowledge of safety
gears to carry out business operations in right manner.
The benefits of HRM for employer: Conflict management: Issues and conflicts are uncertain in nature and it is the major
obligation of higher authority or manger to resolve the issue which are arises at work
place and has a huge impact on firms performance. HRM policies are helpful in
providing proper measures for resolving the issues and obstacles (Van Dooren, Caluwe
and Lonti, 2012).
 Competitive advantage: The prime purpose of each organisation is to reach at higher
position at market place through offering variety of goods and services to their potential
buyers (Fine, 2012). HR manager manage their employees for utilising their efforts in
efficient manner, so competitive advantage can be gained.
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P4) Effectiveness of Human Resource Management in increasing productivity and growth.
Human resource management plays a vast role in growth and success of an organisation
through managing or handling employees at work place. Each business organisation is concern
on establishing an effective plan or policies in order to better utilisation of resources so that
growth and success can be attained at market place. If all business activities are carried out as per
the plan than it will helps in achieving growth and success for firm (Hendry, 2012). Some
effective factors are evaluated which are helpful in enhancing productivity and growth for a firm: Information system: Human Resource practices plays most essential role at work place.
This is more effective in transferring data and information from one department to
another where the information is requirement the most. This helps in implementing
proper communication channel within the firm for the purpose of gaining goals and
objectives in efficient manner. ALDI is concern on recruiting well skilled people at work
place which are having significant knowledge about various aspects that are related with
marketing. Talent management: In order to gaining high attention of customers organisation
focused on hiring well skilled and talented people at work place who are contributing
their best at work place for enhancing profitability and productivity of firm. Through
hiring experienced people at work place there is no need to provide training to employees
because they are already having significant idea and knowledge on some specific criteria.
 Rewards: This can be considered as the most effective factor which is widely used by
organisation for encouraging employees at work place in order to improving their
working ability for performing any work and task which are assigned by firm.
TASK 3
P5) Importance of employee relations in decision-making.
Employees relation plays most effective role in an organisation as it is the major duty of
firms managing director or manager is to establish an effective relationship among employees in
order to generating coordination among employees so that work can be done in smooth and
effective manner (Huselid and Becker, 2011). It is required for employees or employer to
establish effective relation in order to conducting all organisational work in most efficient
manner. Staff member of ALDI share some sort of relation in order to satisfying their basic
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needs and wants. A familiar relationship leads a business organisation towards satisfaction of
workers which increase high efficiency of firm. There are various importance of effective
employees relationship in which some are described as under:
 An effective relationship between employees and employer helps in resolving the issue
and obstacles that are faced by employees at work place and demotivate them.
 Effective relationship helps in motivating employees for contributing their best at work
place, so that productivity and profitability can be increased.
 Employees relationship helps in creating decision which are beneficial for organisational
growth and success (Jackson, Schuler and Werner, 2011).
 It helps in establishing coordination among employees or higher authority, so that work
can be done as per the requirement of task in planned way.
 Healthy and effective relationship helps in generating high sustainability of employees at
work place, so there is no need for invest in recruiting new people within firm.
 Effective or friendly working environment helps in encouraging people for implementing
their skills and knowledge at various places for gaining various job opportunities in their
personal as well as professional life.
P6) Impact of employment legislation in the process of decision making.
Employment legislations involves laws and policies that are formulated by government in
respect to protect the interest of employees who the contributing their significant efforts in
enhancing performance of an organisation at market place. The manager of human resource
ensure that these legislations are needs to b e implement in organisation and followed by each
individual with the firm. These legislations are helpful in influencing the process of decision
making with the firm. Some essential legislations are described as under which plays effective
role in each business organisation: Minimum Wage: This can be evaluated as the most effective law that helps in
influencing decision making in a firm. The National minimum wage act of 1999 consist
that an employee needs to be compensated with 1,396.90 euros per month, which is
required for each employee who are working in an organisation (Jiang and et. al., 2012).
This act helps in providing support to workers in respect to getting wages and high salary.
According to this law employers are not able to refuse their employees for providing
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wages on significant efforts which are made by them at work place. It is required for each
business organisation to follow this act who are having more than 15 employees. Health and safety act: It is another essential legislation which directly affect on decision
making process of any business organisation. It is the major responsibility of HR
manager to ensure their workers about safety and security at work place (Lengnick-Hall
and et. al., 2011). The UK government have propounded Health and Safety at work Act
1974. it is the fundamental duty of manager to make proper arrangement of safety
measures in order to providing quick services to their employees who get affecter by any
issue or hazardous machines.
 Anti-discrimination act: This act is most effective for employees who are facing any
kind of issue or conflict that are related with discrimination in term of different factors
like gender, religion, income, cast, race and colour. This act helps in providing
significant support to each employee who are working in an organisation. The company
which are having more than 20 employees are widely applying their act for providing
justice to their employees.
P7) Human Resource practices in work related context.
Human Resource practices are consist as criteria and sector for business operations where
various HRM department of firm needs to apply their knowledge and skills to provide human
resource with the firm in terms of manager, higher authority, leaders and employees. ALDI deals
in largest retail sector in UK and various HRM Practices are applied by firm, which are
described as under:
Work force planning: Planning plays most effective part in each business organisation as to
reducing the work force from employees who are works under pressure (Meredith Belbin, 2011).
It is the responsibility of HR manager to implement various activities in a right manner as per the
priority of requirement of task.
Analysing the design of work: The design of work are based on different criteria and nature of
product and services which are offered by firm to their potential buyers. The mostly business
firms are focused on analysing the different needs and wants of customers in respect to satisfying
them in efficient manner.
Recruitment and selection: The basic role of HR department is to analysing the requirement of
employees with in organisation. This department is concern on hiring people as per the
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requirement of firm through various resources in order to gain high profit and success at market
place.
CONCLUSION
As per the above report it has been concluded that human resource are considered as the
most essential aspects for firm through which organisation can increase their performance at
market place. Human resource management plays most effective role in managing available
human resource at work place in order to implement them at right place, so that productivity can
be enhanced and organisation reached at high position at market place. The basic purpose of each
business organisation is to gaining high growth and profit through offering variety of goods and
services to their potential buyers. This also helps in attaining high competitive advantage in order
to providing competition to their competitors.
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