Human Resource Management Report: HRM Practices at ALDI Analysis

This report provides an in-depth analysis of Human Resource Management (HRM) practices within ALDI, a global retail company. It begins with an introduction to HRM, its functions, and its importance in organizational success. The report then delves into the recruitment and selection approaches used by ALDI, comparing internal and external recruitment methods and evaluating their strengths and weaknesses. It highlights the benefits of various HRM practices, such as recruitment, reward management, and performance management, for both employers and employees. Furthermore, the report evaluates the effectiveness of HRM practices at ALDI in enhancing profit and productivity, focusing on training and development and flexible working arrangements. The importance of employee relations and key elements of employment legislation are also discussed, followed by a conclusion summarizing the key findings and recommendations. The report aims to provide a comprehensive understanding of HRM in a real-world context, offering valuable insights for students and professionals alike.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
LO 1......................................................................................................................................................3
P1 Purpose and function of HRM in workforce...............................................................................3
P2 Approaches of recruitment and selections and their strength and weaknesses...........................4
LO2.......................................................................................................................................................6
P3 Benefits of HRM practices for employer and employees...........................................................6
P4 Evaluation of HRM practices in ALDI to increase profit and productivity:...............................7
LO 3......................................................................................................................................................9
P5 Importance of employee relations in organisation......................................................................9
P6 Key elements of employment legislations................................................................................10
LO 4....................................................................................................................................................11
P7 Application of HRM practice....................................................................................................11
CONCLUSION..................................................................................................................................15
REFERENCES...................................................................................................................................16

INTRODUCTION
Human resource management is the process of handling people those who work in the
organisation and put efforts to meet the goal of business unit. It is multidisciplinary subject which
ensures employees work in a team and contribute well in growth of firm (Lang and Rego, 2015).
ALDI is the retail firm that has around 10000 stores in many countries. It provides food, beverages,
sanitary etc. products to consumers across the world. Current assignment will discuss functions of
HRM alone with its purpose and importance. It will describe advantage and disadvantage of
existing recruitment strategy of ALDI. Furthermore, study will highlight benefits of different human
resource practices for employees and employer both. It will analyse significance of employee
relations in the firm. In addition, report will describe different employment legislation and will
show their impact on HR decision making.
LO 1
P1 Purpose and function of HRM in workforce
Human resource management is the managerial process of planning, organising, developing
healthy work culture. It also focuses on recruitment and management of people in an organisation
and give direction to people working in the organisation. Workforce planning and resourcing si the
process of aligning needs of firm with requirements of employees.
Function of HRM are as follows:-
Training and development:- This helps the new employees to get familiar with new work culture.
This will increase the efficiency of people to work more effectively. Aldi group is going with
various training programs which develop skills and efficiency of the employee to improve their
performance in their company. Hr manager of Aldi implements on the job training session which
helps in raising skills of person and making them a good performer. It also helps the employees
working there to learn daily operations and basic concepts used in these operations. As they got
trained their efficiency get developed and bring new scope in there career development which helps
in business development of Aldi.
Recruitment and selection:- It is core function in human resource management as selection of
appropriate employees and giving them suitable position which full fill employees as well as
organisation's need is an essential part.. Aldi's HRM department faces many challenges in filling

various important position according to acquired skills of employees. They identify skill of
employees and hire the best candidates out of many.
Performance management:- It is an effective procedure that mangers of Aldi uses to measure job
performance and satisfaction of employees. Accordingly, they search for workforce which can meet
company's standard and can develop work related skills and experience. This can help in achieving
organisational objectives. They set goals and measure performance of employees accordingly. They
monitor and measure behaviour of employees and give proper training to them so that they can have
good opportunity for enhancing their performance.
Human resource planning:-To take human resources in direction of achieving business goals,
managers of Aldi have to listen and respond to employees for maintaining high job satisfaction in
the organisation which would require a proper planning. This planning may help the organisation to
regulate employees and make availability of employees having good skills to work with. This start
with business goal determination and scanning the environment for conducting gap analysis to
achieve development goals by measuring and monitoring progress of the employees.
Job Analysis:- It is an important part as it determine employee's functions. Aldi managers analysed
this on basis of work done by people. This results in identification of job that is, what it is all about
and what qualification it needs. It includes analysis of data by collecting the data, measuring the
information and then compiling the information with job description and specification. Job
description helps in identifying job and responsibility towards it. Whereas job specification include
personal attribute of a person which is necessary in performing the job.
Employee and labour relation:- It is very important part as there relation can build a foundation
stone of the organisation. Employee and employers both plays an important part to run an
organisation. With respect to this, Aldi's human resource management negotiate with the labours.
They also listen to the complaints of the employees and provide solutions to them, so that they can
work more efficiently and can give 100% to the organisation
P2 Approaches of recruitment and selections and their strength and weaknesses
Recruitment:- It is a process of hiring new candidate who is having qualification for the job and
can work efficiently to be part of the organisation. It includes analyses of job, attracting new people
and doing proper screening to hire the new employee. There are two types of recruitments:-
 Internal Recruitment:- It is a process where employees are recruited either through
promotions like promoting from temporary to permanent position or Transfer them to other
place. Aldi company uses promotion method of filling the vacant post, this process of
recruitment and its strength can weaknesses are as follows:-

STRENGTH WEAKNESS
 It is cost effective for the organisation
 It encourages employees to work more
effectively and growth of the employee
is seen in short period.
 Helps in retaining top talent for long
period in the organisation.
 Staff members get motivated to reach
that level and give their 100%
 They work hard and give their best for
overall performance.
 It may limit the potential employees.
 Fresh ideas will be missing that
candidates can bring in the organisation.
 Various conflicts may arise as employees
not promoted may get jealous and may
not retain any more.
 External recruitment: - External recruitment eliminates these problems which are faced by
internal recruitment but it becomes more costly for the organisation. It includes recruitment
of new employees with help of various sources. Company takes support of recruitment
consultancy firms in order to hire candidates from external environment.
STRENGTH WEAKNESS
 Less time consuming and brings more
opportunity for the organisation.
 Employees may retain for long period
and will work happily that will lead to
job satisfaction.
 If don't find the applicant suitable
automatically can disqualify them and
can search better option for the same
post.
 This type of recruitment can be more
costly for the organisation.
 Employees Background need to checked
as organisation is not aware about it.
 You may lose perfect fit candidate and
searching again can waste your money
and time.
 May not find a right person for the job
and need to search again.
Selection:- It is an action of choosing right candidate for a position and evaluating whether it suit
for the position or not. It includes test of the candidates whether they deserve the position or not.
Aldi group use interview process for selecting new employees for the organisation.
STRENGTH WEAKNESS
 Face to face interaction can help the  Candidate may not be honest

recruiter of Aldi group to identify
whether the candidate is suitable for the
job or not.
 Mangers of Aldi group can identify skills
of candidate and can take action by
seeing whether the candidate fit for the
job or not.
 Have many options and select
accordingly.
 Collaborative hiring will be there.
 Some test applied by Aldi group
recruiters for selection process may be
ambiguous which may not give correct
result.
 It may be time consuming.
 For proper arrangements cost will be
high for the organisation.
LO2
P3 Benefits of HRM practices for employer and employees
Human resource management play a great role in development and growth of business unit.
Employees and employers both are essential element of company. Enterprise has to ensure that it
can meet the needs of employer and employees both. This would help in sustaining in the market
for longer duration (Khashman and Al-Ryalat, 2015). Benefits of different HRM practices are
described as below:
Practice Benefit for employer Benefit for employees
Recruitment and selection It is considered as one of the
most important function of
organisation, Employer gets
talented and deserving
candidates through this
practices (Buttimer and
Seamon, 2015). HR manager of
ALDI company ensures that it
evaluate the skills of person
and accordingly select the best
person who can contribute well
in raising productivity of the
firm.
It is beneficial for workers as
well, as they get income
sources and the platform where
they can make their career
(Head and Alford, 2015).

Reward management ALDI provides monetary
rewards to its employees, it
gives incentives and bonuses to
its staff members. This boost
energy of workers and they put
hard efforts. This helps
organisation in improving its
profitability and workers
provides satisfactory services
to consumers which raises
satisfaction level of buyers.
This improves brand image of
company in the market
(Wickens and et.al., 2015).
Rewards is beneficial for
employees as well, as staff
members’ monetary needs get
fulfilled and they all live a
happy life.
Performance management This is the practice which
supports organisation in
analysing skills of person and
organising training sessions
accordingly so that skills of
person can be improved and
they can work much better in
the firm (Kianto, Vanhala and
Heilmann, 2016). This helps in
reducing operational cost and
raising quality of products as
well.
It is beneficial for the
employees because they get
more promotion and
development opportunities in
the firm. Aldi measure working
efficiency of each candidate
and accordingly promote them
in the higher position (Lang and
Rego, 2015).
P4 Evaluation of HRM practices in ALDI to increase profit and productivity:
TRAINING AND DEVELOPMENT: Training is the important part of Aldi company in HRM
practices as the company provides proper and professional training to its new employees. Training
to new employee are given in the fields of property management in stores, store activities, trading of
the product and in the area of transporting goods from one place to another place. Aldi puts a lot of
hard work in training of its new employee so that the training could provide some fruitful result to
Aldi. Those employees who are graduate they are been trained in other important areas of finance,

management, soft skills and many others. Training helps the firm in making people more efficient
and they put hard efforts which raises productivity of business and help the firm in increasing sales
revenues of business.
FLEXIBLE WORKING: Aldi provides a healthy working hour for his employee's. Following the
rules of working hours to the equal workload on each and every employee is been under control.
There is no role of integrated task as responsibilities provided to employees are between their roles
that they represent in Aldi. The shifts and part-time jobs are according to Aldi employee's ability to
work. Flexible working helps to make sense of business good. By making flexibility and comforting
working culture employee's get to work easily without any workload or burden on their head. Aldi
provides proper intervals in working hours and giving holiday according to employee's work
schedule. This increases the productivity of employees to work with enthusiasms and full energy
due to this the profit of Aldi automatically increase.
PAYMENTS AND REWARDS: Aldi company gives reward to its employee's which gives
reputation to the company and increases its image in market from this they are directly or indirectly
motivating their employees to work hard with effectively and in efficient manner. Rewards are
given in either payment form or in the form of perks or bonus. Which increases the interest of
employee in work. When ever the company earns profit it gives its share to employee and create
employee satisfaction which is very important for company as it increases the profitability and
productivity with satisfied workforce.
PERFORMANCE MANAGEMENT: Aldi company keeps an eye on performance of its
employees work. Aldi company collect information of employee from supervisor and office
colleague to get feedback as the information is collected form the employee's perspective. By
performing 360-degree analysis of employee Aldi knows the capability of its employee and also
gets to know about its best resources that is its employee. Aldi declare its performance to its
stakeholder to attract them towards the company and invest in Aldi. Performance management is
beneficial to employee as it provides a hint that where they stand in ascertainment of their skills
which helps to increase their profitability.
LO 3
P5 Importance of employee relations in organisation
Employee relationship can be described as process of gaining trust of all workers so that
they support the organisation in its critical situations. If a person is getting friendly atmosphere in

the firm where seniors support them and involve them in each decisions, then it makes the person
feel comfortable and they put their hard efforts (van Woerkom, Bakker and Nishii, 2016). This
builds healthy relationship between employees and employer. Each firm aims to retain its talented
and loyal employees in business unit for longer duration but this is only possible when enterprise
develops strong relationship with its staff members and gain their trust as well. Significance of
employee relationship is explained as below:
Improvement in productivity
Employee relationship or engagement supports the firm in making people loyal towards the
firm. It raises communication between them and they share their views with each other. ALDI
always ensures that new employees get healthy workplace environment and they become
comfortable in the business unit (Glendon and Clarke, 2015). If they are happy then they put their
full efforts in order to perform well. It improves productivity of business unit and aid the firm in
retaining skilled people in the organisation for longer duration. Healthy relationship always
supports in minimising mistakes and improving the capabilities of person so that they perform
better which supports in raising productivity of ALDI to great extent.
Retention of Loyal workers
This is another great advantage of employee relationship. If firm builds healthy relationship
with its workers, then people will trust on their management and they will give their support in each
situations (Bennett, 2017). It makes them loyal towards the brand. This relationship influences the
recruitment decision of HR of ALDI, as if people are loyal then they will retain in business unit. By
this way human resource manager of the firm will not have to hire new candidates frequently. Apart
from this, loyal workers keep the confidential information of business secure which gives amazing
benefit to the organisation and it can gain competitive advantage in the market.
Minimise conflicts
Employee relationship always gives benefit to the firm as it develops understanding between
people and they manage their work properly (Khashman and Al-Ryalat, 2015). It gives advantage to
the firm as people start coordinating with each other which minimises conflict situations. This
supports ALDI in avoiding conflict situations in the organisation and all people perform their duties
significantly. This influences performance management decision of HR, as human resource manager
gets more time to evaluate the performance of existing employees and can plan training sessions. In
the absence of them HR generally spend time in resolving problem or conflicts and this divert mind
of staff members as well (Buttimer and Seamon, 2015).
Clear and easy delegation

Healthy relationship supports human resource manager of company in increasing clarity in
responsibilities. Apart from this management becomes able to allot tasks to the people in easy
manner by considering their strength and weakness. Healthy relationship is beneficial in analysing
their strong point so that higher authorities of ALDI can delegate them responsibilities easily. It
boosts energy of staff members and they perform their duties well (Head and Alford, 2015).
P6 Key elements of employment legislations
Employment is the professional relationship between employees and employer. Both these
persons have some rights and obligation. Government of UK has made several laws in order to
protect rights of each worker in the organisation (Wickens and et.al., 2015).
Equal pay act 1970
This law is implemented by every firm, government of the country has ensured that each
person get equal pay in the firm. Men and women must get equal salaries without any gender
discrimination (Equal Pay & The Equal Pay Act 1970, 2019). Both put their best efforts and
complete their responsibilities hence it is essential for the enterprise to give same salaries on the
bases of their job role in the enterprise. This act impact on HRM decision making process as human
resource manager of ALDI make payroll on the bases of qualification of candidate and role perform
in the organisation. This motivates workers and they give their hard efforts so that they can get good
pay. This brings uniformity in the entity and all people perform well (van Woerkom, Bakker and
Nishii, 2016).
National minimum wage act 1998
This is another legislation which is made by government to protect rights of employees.,
ALDI follow this law strictly and always ensure that it makes clear pay role as per the industry
standards. As cost of living gets increased every year hence authorities raise amount of minimum
wages as well. This impact on salary decisions of ALDI, it ensures that all staff members are getting
wages as per national wages rate (Glendon and Clarke, 2015). Now HR has to revise salaries of
each candidate and have to give them appraisal every year by considering their cost of living. This
raises satisfaction level of workers and they retain in one firm for longer duration. It is better for
ALDI as well because it needs not to spend huge money in hiring new employees and giving them
training as well.
Sex discrimination act 1975
Human resource manager of the company has to ensure that no discrimination takes place.
No one can discriminate any person on ground of sex. Male and female both need to get equal

treatment in the organisation. ALDI follows this law carefully and ensure that it gives promotion on
the bases of performance of particular person rather than their gender (Buttimer and Seamon, 2015).
It is very important for the companies to follow these legislation carefully, if any person
faces discrimination then individual has right to raise their voice and complain against the wrong
person. In such condition authorities can cancel the licence of company or can punish to give
compensation for the same (Wickens and et.al., 2015).
LO 4
P7 Application of HRM practice
Recruitment and selection Is most essential HRM practice, it helps in hiring the best and
talented person in the firm who can serve consumers well and can contribute well in raising
productivity of business unit (Kianto, Vanhala and Heilmann, 2016).
Company ALDI
Post Security officer
Location London
Report to Security Head
Qualification Graduation from renowned University
Responsibilities Handling security complains
Ensuring complains
Respond to emergencies
Protection of company’s assets
Title of the job
Qualification required Essential/ Desirable Application form/
Interview
Graduation
Post Graduation
Essential
Desirable Application form
Need of Experience
1-3 year in relevant field Essential Supporting statements

Personal characteristics
Having good command over maths
and English
Basic knowledge of civil and
criminal laws
Good verbal and written
communication skill
Computer literacy
Team leading capabilities
Essential
Essential
Essential
Essential
Essential
Supporting statements
Supporting statements
Supporting statements
Supporting statements
Roles and Responsibilities
Handling security complains
Ensuring complains
Respond to emergencies
Protection of company’s assets
Essential
Essential
Essential
Essential
Supporting statements
CV
CV of first candidate
Nicoleta Anton
1019 High street, London
T:01457896