Human Resource Management Report: Analysis of ALDI's HRM Strategies

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at ALDI, a global supermarket chain. It begins by outlining the core functions and purposes of HRM, including recruitment, safety, and employee relations, emphasizing their strategic importance in maximizing employee performance. The report then delves into various recruitment and selection approaches, contrasting internal and external sources, and evaluating their respective strengths and weaknesses. The second task explores the benefits of different HRM practices, such as performance evaluation, team building, training and development, and maintaining legal compliance. It also assesses the effectiveness of these practices in terms of reducing employee turnover, promoting sustainability and growth, and enhancing employee skills. The final tasks discuss the significance of employee relations and key elements of employment legislation within the organization, including their practical application in a work-related context. Overall, the report provides a detailed overview of HRM strategies and their impact on ALDI's success.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1. Functions and purpose of human resource management applicable to workforce planning
and resourcing.............................................................................................................................3
P2. Different approaches of recruitment and selection with their strengths and weaknesses.....5
TASK 2............................................................................................................................................6
P3 Benefits of different HRM practices within an organisation ................................................6
P4 Effectiveness of HRM practices ...........................................................................................7
TASK 3............................................................................................................................................8
P5 Importance of employee relations within the organisation ...................................................8
P6 Key elements of employment legislation ..............................................................................9
TASK 4..........................................................................................................................................10
P7 Application of HRM practices in work related context ......................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is the main affair within business organisation which is
focused on recruitment, selection, induction, orientation, training and development as well as
assessment of employees. HR department also provides compensation benefits, deals with
managing proper relations with staff members as well as trade unions along with maintaining
employee’s safety in compliance with the labour laws. ALDI is the chosen organisation in this
present assignment which is a common global brand of leading supermarket chain of retail
products and services. It has almost 10000 stores in 18 countries across the world and has an
estimated annual turnover of more than €50 billion. The report will describe various functions
and purpose of human resource management in company (Soltis and et. al., 2013). There will
also be discussion on various HRM practices and their impact upon employees' productivity and
performance. In addition, importance of employee relations and various labour laws and
legislations are also have been discussed in this assignment.
TASK 1
P1. Functions and purpose of human resource management
In ALDI limited, HRM is designed in order to maximise employee performance and it is
focused upon strategic and policy development. It also deals with providing leadership and gives
advice to resolve certain issues that are related with the people in business entity. Below
mentioned are the purposes of human resource management which are stated as follows: Recruitment – Recruitment and selection is the most important work of HRM. In every
business organisation, recruiters have an essential role in order to provide well skilled and
qualified employees to company. The role of HR manager in ALDI limited is that they
advertise job postings, sourcing and screening candidates along with conducting
interviews and coordinating in hiring with managers for making final selection of the
applicants. Safety – Maintaining health and safety at workplace is another important purpose of
HRM. Under health and safety act 1970, it is the prime responsibility of employers to
provide a positive and safe working environment to their workers. They need to give
proper training and development assistance regarding workplace injury and accidents.

 Employee relations – HR manager of ALDI is also obligates to manage or maintain
healthy employee relationship. Along with this, employee relationship gives strengthen
to the employee- employer coordination by monitoring job satisfaction, which is helpful
in resolving conflict and employee engagement at workplace (Seibert, Wang and
Courtright, 2011).
Functions of Human resource management: - Planning – Planning has an important role in order to create or set goals and objectives
for company. HR manager develops policies and strategies which are laid down for
accomplishing such goals. Planning is helpful to anticipate vacancies, recognise job
necessities and determine the origins of recruitments. Along with this, HR manager
forecast demand and supply for every job group. This is to be needed to the HR
professional who is cognizant towards job markets and the strategical visions of the
company. Organising – It is another major function of HRM which helps in designing and
developing the organisational structure. Organising means that employees are grouped
into various activities and positions in which they will be performing. HR manager also
allocates divergent roles and responsibilities to employees so that company can easily
achieve its goals and objectives in the competitive market. Organising also focuses on
delegating the authority as per tasks and duties which are assigned to staff members. Directing – The function of directing is determined in order to direct and inspire the
employees to accomplish set aim and targets. Along with this, it can be achieved by
having proper planning of career of employees as well as maintaining cordial relations
with the manpower along with using different motivational methods. But, it is a great
challenge for HR manager of ALDI limited so as such person is liable to find out
employees' needs and identify the ways to satisfying such desires (Ployhart and
Moliterno, 2011). Each and every activity towards goal attainment requires directing.
 Controlling – This can be related with the foreboding of operations as per plans and
policies that were codified on the basis of mission of company. In controlling, HR
manager makes an evaluation of the outcomes attained with standards which were
develop in the designing stage in order to perceive if there is any deviation from the set

values and morale. In addition, the function on controlling is the end of planning cycle
and again focus on re-planning.
P2. Various approaches of recruitment and selection
Recruitment is the activity of identifying the best and well qualified candidates for the
vacant post within organisation in a cost and time effective manner. In ALDI limited, it
encompasses to examine the job necessities, attaining employees towards job, screening and
selecting applicants as well as hiring and assimilating new staff members towards the company.
Along with this, recruitment is the core function of human resource management that promotes
to find out right employees for the suitable posts. Apart from this, selection is the procedure of
evaluating and interviewing persons for a peculiar job and choosing an individual for particular
occupation that is based upon certain criteria of the company. In addition, employee selection
can starts with a simplex process to a complicated one that depends upon firm's hiring and vacant
position. But during selection, managers need to obey or follow definite employment laws and
legislations such as anti- discrimination laws.
There are two approaches of recruitment and selection which are as follows:
Internal sources - Best employees can be found in the business organisation. Internal
sources consist of recruiting candidates within company. There are different sources of internal
recruitment such as transfer, internal advertisements, retired managers, promotion and recall
from long leave (Oechsler, 2011). In ALDI limited, promotion refers to give a higher position or
profile, responsibility and salary to employees. So as the vacant profile can be filled up by
promoting a appropriate person from the same organisation. Whereas transfer consists to change
job location from one place to another or may be at one department to another one. But it does
not include any changes in rank, obligations and prestige.
Merits
 Time saving, economical, reliable and simple. In internal recruitment, there is no requirement of orientation and training as such
candidate previously knows each and everything about the company, its rules and
regulations, overall working process etc.
Demerits -
 Limits the range of new and potential applicants.
 Cannot introduce towards new ideas and innovations.

 Internal recruitment also creates another new vacancy over the company that also needs
to be filled.
External sources – It involves the sources which are used in order to hire people form
outside the business organisation. There are many methods of external recruitments, such as –
advertisements, employment agencies, recommendations of existing employees, factory gates,
labour unions etc. Along with this, when the HR department of the company post or advertise the
vacancy in newspapers, internal, job portals, television etc. The advertisement helps to give
information to the candidates about the vacant profile, required skills of the applicants as well as
the company (Bröckermann, 2012). It also invite application pool of suitable candidates. Apart
from this, there are many private agencies are available in market; they charge for their services.
Merits
 It motivates or encourage young blood with new ideas and opinions to enter into the
business enterprise.
 There are less chances of partiality and bias. External recruitments can offer wide scope of selection. Because a large number of
suitable persons will come for the particular position.
Demerits
 It is very costly cause of the higher costs of advertisements, medical examination and
tests etc. has be organised.
 It may not developed loyalty between the existing managers.
 Time consuming because selection process is very lengthy.
TASK 2
P3 Benefits of different HRM practices within an organisation
Human resources practices has a critical role in the ontogeny and development of
business administration. In ALDI limited the HR managers is liable to motivate and encouraging
employees as they can perform well at workplace. Below mentioned the main advantages of
HRM practices within the business organisation, such are stated as follow: - Helps in evaluating employees performance – Human resource practices are helpful in
measuring and evaluating employees' performance within business organisation. HR
manager sets some standards for their employees and it is essential for them to achieve it

(Campbell, Coff and Kryscynski, 2012). By conducting various promotional activities,
tasks, programmes weekly or monthly, employers can easily evaluate the performance
and productivity level of employees. With that, managers can find out the area in which
they need to provide training to their subordinates. Team building – It is the most important task for the HR manager of ALDI limited.
Along with this, human resources practices are helpful to foster a sense of team spirit in
the business organisation. Teamwork has a great impact on the growth and development
of an individual or the company. There are multicultural people are working in a team; all
of them have new and innovative ideas for the betterment of the business entity. Training and development – Human resource practices are beneficial to provide training
and development assistance to their employees. If staff members are getting proper
training guidance as they can perform at workplace. In addition, employees can also
acquire various skills and high production through which they can meet the pre-
determined standards of cited business entity. The prime intent of training and
development is to make better the job performance of individuals or groups. Employees
always desires to develop career enhancing skills that will always leads to employee
motivation.
 Keep the organisation legal – The last advantage of human resource practices is to keep
organisational activities and operations in legal manner. HR has key role in order to make
sure that organisation's strategic plan is not only legal but also amendable enough. So as
it can be adaptable the changing legal circumstances. But the governing laws and
legislations are complex and can among jurisdictions.
P4 Effectiveness of HRM practices
Below mentioned effectiveness of HRM practices which are stated as follow: - Reduction in employee turnover – As human resource practices are helpful in providing
training and development assistance to employees which can increasing employee skills
and production level. In addition, it will also supportive in motivating and encouraging
employees towards job. So as they can retain for a very long term period over the
organisation. So that, company can easily achieve its competitive advantages in an
effective manner.

 Sustainability and growth – HRM practices also has an effective role in sustainability
and growth of the business organisation. It explicitly find out the positive as well as
negative impact of HRM upon a group of stakeholders (Cloke and Park, 2013). In
addition, this will helps in attaining and retaining external investors towards the
company, through which company financial condition will be strong as it can make
reputed position in target market. Enhancement in skills and abilities of employees – The main role of human resource
practices is to provide training and development assistance to employees as they can
perform in well being manner. In addition, this will also increases skills and capabilities
of staff members with which they can meet with goals and objectives of the company. In
competitive market, it is very essential for ALDI limited is to provide training and
development sessions to their workers as it can easily compete with external environment
over the globe.
 Promoting long term success – It is the last effectiveness of human resource practices.
HR manager of ALDI limited develop various polices and strategies for the growth and
success of the company. Along with this, managers can easily achieve their goals and
objectives by effective strategies; this also helps in guiding employee by improving their
current skills and abilities.
TASK 3
P5 Importance of employee relations within the organisation
People are the most indispensable part of business organisation. Any company will not
run its functions effectively without them, but individual cannot work in desolation; they require
to talk with another person in order to work together. For that, employers have to manage cordial
relationships at the workplace; this will help in keeping the business functions smoothly and
avoid problems. Along with this, employee relations is the term that refers the efforts of the
company to manage among employers and employees (Coff and Kryscynski, 2011). In addition,
ALDI limited has good employee dealings which implements fair consonant treatment to all
employees so as they can easily wrapped up towards their job role and allegiant to the company.
Importance of employee relationships: -

 Increasing productivity – In the business organisation, if employees are shared an
effective and efficient relationships as they easily work together for a particular goal and
objective. Along with this, strong employee relations are able to create a pleasant
environment over the company, it is also assistive in increasing employee motivation.
This results, employee can work effectively and the annual turnover of the company will
also be increase. Higher level of production will enhancing employee morale as they try
to work hard with the aim of goal attainment. Reduce conflicts – Healthy and good employee relationships will also reduce conflicts or
disputes among employees (Fine, 2012). Because if working environment is effective and
friendly as it can reduces conflicts and misunderstandings from workplace. Outcome of
less disputes are workers are being able to focus on the tasks and they become more
productive. In addition, this will also develop employee loyalty and improves workers
retention, so as the cost of recruitment, selection and training is cut drastically.
 Communicate effectively – Effective and cordial relationships are able to make
communication process more effectively and efficiently across the employees as well as
managers. Along with this, if employee- managers are having a good relations as they can
communicate easily regarding the issues and problems. This will also helps in taking
sufficient decisions for the betterment of the ALDI limited.
P6 Key elements of employment legislation
Employment laws and legislations are developed in governing employee relations as well
as protect their rights at workplace. There are given some acts, which are come under
employment legislation, that are stated as follow: - Sex discrimination act : - It preserve employees against favouritism or discrimination on
the basis of sex, age etc. for instance – in the assortment process of the company, in
encouraging staff members, in job advertisements, purposing training and career
evolution opportunities. Along with this, the sex discrimination act, 1975 is constituted
by the Equal Opportunities Commission whose primary responsibilities to work for the
evacuation of favouritism. It is helpful in order to promote equal opportunities to
different genders and to keep under revaluation the workings of the Sex Discrimination. Equal pay act: - The equal pay act, 1970 concentrate on providing equal wages to all
employees at same position. It sets out that male and female has should acquire the same

pay for doing same type of work or ranked as being of the same value. Under this act,
employees also have right to claim against organisation if they are not paying as same as
their colleagues (Gatewood, Feild and Barrick, 2015). Employment rights acts – The act was created in 2008. Employment act make a
provision about the operations for the reduction of employment resistances. It is also
provides compensation for frugal or economical loss in cases of illegal underpayment or
non-payment. Employment right act also make provision about the enforcement of
minimum wages.
 Race relations act – The act was implemented in 1976. Under this act, all employees has
equal right to well behaved and treat over the organisation. Race relation act make the
stipulations with the respect of favouritism at racial grounds and relations among the
persons of various multiracial groups.
TASK 4
P7 Application of HRM practices in work related context
Below mentioned some major aspects of Human resource practices by the help of soft
and hard model of HRM.
Soft HRM It is concentrate of different needs and desires
of individuals at workplace. Soft model of
HRM is also included commitment towards
work, self governing attitude and motivation in
the context of strategic approaches of
employees. In addition, it concentrate that
workers are the most important resource within
the commercial enterprise and main origin of
competitive advantage (Gruman and Saks,
2011),
Hard HRM It is centring on distinguishing workforce
inevitably of the company and then recruit &
manage them accordingly. Hard HRM
includes, minimal communication, from top to

down, little delegation or empowerment
appraisal system are focused while making
judgements.
Example-
 If training programmers are organised by ALDI limited than it will help in maximising
the knowledge and skills of employees. In addition, this will be also helps in evolution of
new methods of assessing employees performance which results in profits for the firm.
 HRM practices are liable in order to encouraging or motivating employees by boosting
their knowledge level and increasing their skills and competencies as well (Jackson and
Parry, 2011).
 Positive work environment can be implemented ; it focuses on treating equally to all
employees and decentralised the power between the staff members of ALDI. Curriculum Vitae (CV)
CURRICULUM VITAE
Name
Address
Mobile No.
E-mail ID
Career objective – To be a prosperous person in life. My prime goal is to accomplish the task
that are necessary for me to execute the heights of success.
Educational qualification – MBA, Graduation.
Experience – 6 months experience in business associate.
Personal skills – Ability of team leader, good communication skills, interpersonal
competencies.
Declaration – I hear by that above mentioned information is true to my acknowledge.
Organisation – ALDI Ltd.
Job Profile : Human resource manager
Job-Location : UK

Reporting Person : Sr. HR manager
Roles and obligations : Overall recruitment process, hiring and selecting candidates, conduct
employee engagement activities, ensuring benefits to employees i.e. pension plans etc.
Salary – 7 to 9 LPA.
Experience – 5 to 6 year exp. in relevant field.
CONCLUSION
As per the above mentioned report, this been terminated that human resource department
has a significant function in the growth and prosperity of the business organisation. This case
study is based upon ALDI limited, it includes various functions and purpose of human resource
management. Along with this, the document include that effective implementation of HR
activities are useful in order to maximise growth as well as the productivity of the firm. HRM
practices are developed with the aim of achieving goals and objectives of the company in
competitive market. The present report also has been included the various laws of employment
legislation and its different aspects in work-related context.