Human Resource Management Report: ALDI's HRM Practices and Policies

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within ALDI, a major retail chain. The report begins by outlining the core functions and purposes of HRM applicable to workforce planning, including recruitment, performance appraisal, and training and development. It then delves into the strengths and weaknesses of various recruitment and selection approaches, such as job analysis, job descriptions, and the use of internal and external methods, highlighting the benefits and drawbacks of each. Furthermore, the report examines the benefits of HRM practices for both employers and employees, encompassing issue resolution, training, and career management. The report also explores the effectiveness of these HRM practices within the context of ALDI's operations, emphasizing the importance of employee relations and the impact of employment legislation on decision-making. Finally, the report illustrates the practical application of HRM practices within ALDI, providing a holistic view of HRM's role in the company's success. This report aims to provide insights into the strategic importance of HRM in a large retail organization, focusing on the practical application of HRM principles.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Purpose and functions of HRM applicable to workforce planning........................................1
P2 Strengths and weaknesses of different approaches to recruitment and selection..................2
P3 Benefits of different HRM practices for both the employer and employee...........................5
P4 Effectiveness of various HRM practices................................................................................6
TASK 2............................................................................................................................................6
P5 Importance of employee relations in decision making..........................................................6
P6 Key elements of employment legislations impacts on decision making...............................7
P7 Illustrate the application of HRM practices...........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The term human resource management refers to manage al the staff members of an
organisation to carrying out regular activities or procedures in an appropriate manner. This will
facilitate to conduct every process proper to generate desired outcomes in terms of boosting
productivity as well as profitability of company. Human resource can be described as the work
force of an enterprise who perform properly to create required outputs on daily basis to achieve
growth of business (Ekwoaba, Ikeije and Ufoma, 2015). This report is based on ALDI which is
known as common brand of two super market chains and deals in retailing sector. It was
founded by Karl Albrecht and Theo Albrecht in the year 1913, almost 104 years ago. It has
around 10,000 stores in 20 countries having an estimated turnover of more than €50 billion along
with 104,400 number of employees approximately. This assignment will discuss about purpose
and functions of HRM and impact of employment legislations on decision of an organisation.
TASK 1
P1 Purpose and functions of HRM applicable to workforce planning
The human resource management is all about to allocation of activities or tasks as per
their field of expertise so that they can perform in better way and generate required outcomes. It
includes several kinds of procedures that are carried out in the company to create regular
productivity to earn desired profits. There are various types of functions and purposes for which
an effective HRM team should be established in ALDI. Some of them are described below:
Functions of HRM
Recruitment of required people: - This can be described as to conduct an accurate
procedure to hire an more desired people as per required abilities or skills so that they can fulfil
roles and responsibilities of particular designation properly (Keep and James, 2010). It is
necessary to recruit a person through analysing capabilities and experience so that needed
benefits can be earned by ALDI by efforts of these candidates.
Performance appraisal: - The term performance appraisal can be described as to
motivate people for their better performance so that they will improve they will encouraged to
generate desired outcomes on daily basis. It also include to make workers aware about their
mistakes and threats of performance along with methods to overcome with them. ALDI have to
conduct events of performance appraisal to encourage employees to achieve better outcomes.
1

Training and development activities: - There are different kinds of learning and training
activities are carried out in an organisation to boost up skills or abilities of employees. Training
procedures are helpful to improve their efficiencies that support to generate better outputs on
regular basis which helps to attain growth of business. ALDI have to conduct an effective
training events that support to achieve development in the company.
Purpose of HRM
Improve working environment and culture in company: - This refers to build an
appropriate strategies or policies in an organisation to maintain an effective working
environment (Cordner and Cordner, 2011). It will provide support to establish peaceful and
healthy culture of company that facilitate to perform well along with reducing chance of conflicts
as well. ALDI have to balance an appropriate culture that helps to earn better outcomes through
efforts of staff members.
Implement legal rules and policies: - This can be explained about various types of legal
rules and regulations which are prepared by legal authorities and mandatory to be followed by
every organisation. Several legislations are made by government agencies that are necessary to
be considered by each enterprise for running business without any legal issue or problem in
ALDI.
Engagement of employees and management: - The involvement of workers into several
meetings or conferences is beneficial as they can learn about tasks properly which improve their
performance and feel valuable in organisation which facilitate to reduce employees turnover as
loyalty of staff members get increased towards company. ALDI is required to engage their
employees in certain meetings and ask them for suggestions to conduct any project.
Maximum use of resources: - This can be defined as to make sure that an optimum
utilisation of resource should be done along with generating maximum outcomes as well. It is
necessary to apply an effective strategy to use sources properly and create regular outcomes ion
required manner (Rees and Rumbles, 2010). ALDI have to make sure that resources should be
used in correct way and gain desired outputs.
P2 Strengths and weaknesses of different approaches to recruitment and selection
Recruitment and selection can be described as that process in which vacant positions in
company are fulfilled by hiring more appropriate candidates by analysing their experience,
education and capabilities. It is necessary to determine actual abilities of people and match them
2

with required skills for particular designation so that they can complete roles or duties of specific
position in ALDI.
Job analysis
The term job analysis can be explained as to gain information about all the vacant
positions and prepare an appropriate procedures to hire an appropriate person for particular
designation. It helps to complete roles and responsibilities in proper way (Taylor, 2014).
Job description
This can be described as brief description of specific vacant position including several
factors such as working hours, salary package, incentives, required qualification, experience and
so on. It provide support to candidates to make correct decision to apply for particular job in
company.
Person specification
It basically involves the details about a person like abilities, skills, education, experience,
specialisation for any particular position in an organisation.
Internal approaches
This can be explained as various types of internal sources of company to hire required
candidate for particular vacancy position. ALDI can utilise this method as it save times as well as
cost of recruitment. Some of them are give below:
Promotion: - The term promotion can be described as to promote an individual from
lower to higher position. It includes increase in salary, power of authority, roles and
responsibilities. ALDI can adopt this techniques to encourage people for their better
performance. It will influence other workers to perform well and get promotion in the company.
Transfer: - This can be described as to improve duties, authority and get transferred to
other brand of same organisation so that they can fulfil responsibilities properly. Skills ad
abilities facilitate to make transfer of desired person as per requirement (McGraw, 2013).
Employees referral: - It involves that current staff members refer their friends, relative
and known people to company. The firm will conduct their selection process and hire them as
per their skills or abilities for specific vacant position.
Strengths
The internal methods provide support to boost
Weaknesses
It will results into decreasing in number of
3

up morale of staff members and decrease
possibilities of threats or mistakes in process of
recruitment.
It will help to reduce employees turnover along
with improving loyal behaviour of employees
towards company.
fresh and innovative talent in the company
which is not much beneficial in scenario of
changing trends of market.
Creative position should not be fulfilled
through internal resources because it required
unique and innovative skills.
External approaches
This can be defined as different types of methods which includes to select required
candidates from external environment of company (Board, 2017). It helps to welcome more
innovative and creative talents in an enterprise and achieve better outcomes. ALDI can use these
techniques which are as follows:
Advertisements: - The advertisements are helpful to display an appropriate details about
particular vacant designation which influence candidates to apply for that position. ALDI can use
this techniques to render desired information about vacancies so that people can apply for the job
and then conduct interview of other vents to hire correct person in company.
Campus selection from colleges: - There are various kinds of organisation that carried
out poll campus dives through establishing links from different colleges or institutions. It is
helpful to get new and creative talents to be welcomes in company and have opportunity to judge
bulk of candidates and then select best one from them.
Factory gates: - It is usually observe that semi- skilled workers are already available at
factory gates and company can hire them for particular project or contract as per requirements
(Bryson, James and Keep, 2013). ALDI can apply this method to recruit several people for
specific project which is carried out in limited period of time.
4

Strengths
This is an effective approach that support to
achieve fresh talents into organisation and
generate desired outcomes.
It provide help to gain unique an innovative
ideas or thoughts in company.
Weaknesses
It make people demotivated when not selected
which and many individuals think that they
will not apply again in same company.
This process is quite expensive and time
consuming.
P3 Benefits of different HRM practices for both the employer and employee
There are various kinds of HRM practices that helps in many aspects on the company.
These activities are involve to prepare an effective as well as efficient strategies that helps to
conduct different procedures in correct way to get desired results. Several profits are achieved in
company with the helps of an appropriate HRM practice to get required outcomes (Garner,
2012). Benefits that gain by employees and employer in ALDI are given below:
Benefits of HRM practices to an employee
Solve issue or conflicts: - This can be defined about various kinds of problems or
conflicts which are generally observed between staff members. Issues amongst employees
interrupts in daily routine work due to disturbed coordination as well as cooperation which is
necessary to run business successfully.
Training and development: - Several training and learning programmes are carried out
by enterprise to boost up skills or abilities of employees. It is necessary to provide required
learning to employees because it will facilitate to earn better outcomes on regular basis to attain
growth of business.
Employee relations: - This can be defined as to maintain employees relations through
following same rules and regulations in company. It includes to maintain healthy relation
between staff members that help to conduct different activities in more correct direction to gain
desired outputs.
Benefits of HRM practices to an employer
Conduct learning programmes: - It can be defined as several learning events to make co-
workers more capable so that they can achieve growth in both personal as well as professional
career. This will make sub-ordinates to feel positive about their superior and obey their
instructions properly (Boxall and Purcell, 2011).
5

Career management system: - The term career management system refers to focus on
goals or objectives of an organisation and put appropriate efforts to gain better outcomes. It is
mandatory to get required outcomes through managing growth of business and earn more profit
share in market.
Performance management system: - This refers to manager performance of employees
on daily basis through observing them in correct way. It is necessary to fist set standards of
working and then measure actual performance and staff members to determine gab between both
these aspects. ALDI can manage working of workers to improve productivity as well as
profitability.
P4 Effectiveness of various HRM practices
The HRM practices are required in every organisation to conduct regular activities or
tasks in correct way. It is necessary maintain effectiveness and efficiencies of such policies to
generate better outputs (Armstrong and Taylor, 2014). ALDI have to establish an appropriate HR
team which is capable to conduct different events in proper manner. Some of them are as
follows:
Recruitment and selection: - This refers to process of hiring desired candidates for
required vacant positions in company so that roles or responsibilities can be fulfilled properly. It
is task of HR department to recruit well educated and experienced person to earn better profits
through their efforts. ALDI have to apply a effective HRM practice to hire more talented and
creative people.
Performance management and rewards: - It can be described as to conduct an
appropriate activity or event to do performance appraisal and render awards to more desired
person. It will help to motivate employees and provide information to them about threats in
working to improve their future productivity in ALDI.
Workforce management: - This is all about to manage work force of an organisation. It
includes criteria of hiring correct candidate and allocating an appropriate tasks top employees as
per their field of expertise. It will render help to generate better outcomes on daily basis and
facilitate workers to perform interestingly in ALDI.
Reduce employee turnover: - Management is very important to run business and it will
also help in reducing employee turnover (Guest, 2011). HRM practices involves criteria of
6

motivating employees through performance appraisal and learning programs which make people
loyal for company and decrease turnover in ALDI.
TASK 2
P5 Importance of employee relations in decision making
Employee relations refers to better coordination and cooperation between them and
healthy communication as well. Relationship between staff members is necessary to be balance
because it help to carrying out different types of activities or processes on regular routine to
generate desired outputs. This is also supportive in making decision in proper manner in ALDI.
Some of significances that are achieved by employee relations are given below:
Improve Regular Productivity: - Better relations between employees help to generate
an effective coordination as well as cooperation amongst them which facilitate to conduct tasks
properly (Jiang and et. al., 2012). It will support to boost up regular productivity of ALDI on
regular basis.
Effective environment in company: - Effective employee relations are helpful to avoid
several issue or conflict between workers that may impacts negatively on outcomes. It is
mandatory to maintain a healthy environment in ALDI by creating better relationship amongst
staff members.
Balance cost or production and profit: - The employee relation facilitate optimum
utilisation of resources and reduce wastage of the same. It will help to decrease cots of
manufacturing that make possible to balance expense of production and profitability of an
organisation. ALDI can also put required efforts to establish health relationship between
employees to attain desired outcomes.
Create and innovative concepts: - Peaceful relation amongst employees help to create
number of alternative ideas or concepts which can be applied in company to boost up regular
productivity as well as profitability. Implementation of creative thoughts can support to achieve
growth of business of ALDI by grabbing more profit share.
P6 Key elements of employment legislations impacts on decision making
There are various kinds of legislations and rules which are made by legal authorities to
protect fundamental rights of employees (Wright and McMahan, 2011). It is necessary for each
and every organisation to follow all the rules or polices made by government authorities to run
7

business properly for achieving success. It is mandatory for ALDI to apply legal rules which are
given below:
Equal Pay Act of 1970: - This legislation was introduced in year 1970 which includes
rule that every company is required to follow this act and provide equal payment to employees. It
indicates that very employee have to get desired salaries or wages without facing partial
behaviour in organisation.
Disability Discrimination Act, 1995: - Many individuals are observed who are
physically challenge and unable to do several activities properly. This act indicates that,m
companies have to render certain opportunities to these people so that they can spend their life
properly (Berman and et. al., 2012).
National Minimum Wage Act, 1998: - The national minimum wage act was introduce
in year of 1998 in which it is decided by government about limited amount of money to workers.
It is mandatory to follow this act and render minimum wages to staff members.
Sex Discrimination Act, 1975: - This act is basically reduce fact of partial behaviour on
basis on gender and other factors. It is necessary to follow this rule and provide equal
opportunities or benefits to all kinds of indovioduals.
P7 Illustrate the application of HRM practices
There are different types of procedures and event which are necessary to be carried out
through better tools and techniques to attain desired outputs. ALDI can select and implement an
appropriate policy to conduct required activities to create needed outputs.
Function of Job Advertisement
VACANCY
The vacant position for FINANCE MANAGER is there in ALDI which is a common brand of
two super market chains and deals in retailing sector. ALDI is open now to render certain
chances to number of candidates who are interested to join.
Requirements for this post:
 Applicants have age below 33 years.
 Must have experience of 2-5 years in Finance Field.
 Must know about accounts and have perfection in calculation methods of finance to
maintain debits and credits of company in proper way (Scullion and Collings, 2011).
8

 Effective financial knowledge and accounting skills.
 Intelligent and perfection in numerical part.
 Salary package: 3000-3500 pounds per month in order to experience.
Candidate who are interested to apply for this job with appropriate qualifications are requested
to upload their resume on company's E-mail id: [e-mail].
Last date of applying: Till 15th July, 2018.
There are various kinds of procedures and tasks which are necessary to be conduct in
correct way to get desired results properly (Renwick, Redman and Maguire, 2013). ALDI can
utilise an appropriate activities to gain better outcomes on daily routine and achieve growth
business as well.
Job Specification
Job Specification of HR Manager
Educational Qualification Must be from field of specialising finance.
Experience 2 years and more.
Special quality Effective accounting skills and numerical part.
Other attributes Must have concentration factor and ability to
do accounts and maintain all tasks relevant to
money accurately.
Must have perfect abilities to maintain records
of debits and credits to avoid issue relevant to
finance in company.
CONCLUSION
The above report had concluded that human resource management refers to manage al the
staff members of an organisation to carrying out regular activities or procedures in an appropriate
manner. Recruitment and selection can be described as that process in which vacant positions in
company are fulfilled by hiring more appropriate candidates by analysing their experience,
education and capabilities. Several profits are achieved in company with the helps of an
appropriate HRM practice to get required outcomes. It is necessary maintain effectiveness and
9

efficiencies of such policies to generate better outputs. Employee relations refers to better
coordination and cooperation between them and healthy communication as well. There are
different types of procedures and event which are necessary to be carried out through better tools
and techniques to attain desired outputs.
REFERENCES
Books and Journals
Ekwoaba, J. O., Ikeije, U. U. and Ufoma, N., 2015. The Impact of Recruitment and Selection
Criteria on Organizational Performance.
Keep, E. and James, S., 2010. Recruitment and selection-the great neglected topic.
Cordner, G. and Cordner, A., 2011. Stuck on a plateau? Obstacles to recruitment, selection, and
retention of women police. Police Quarterly. 14(3). pp. 207-226.
Rees, G. and Rumbles, S., 2010. Recruitment and selection. Rees, G. and French, R. Leading,
Managing and Developing People, pp. 169-190.
Taylor, S., 2014. Recruitment and selection. Strategic Human Resource Management: An
International Perspective. 10(6). pp. 139-14.
McGraw, P., 2013. Recruitment and selection. na, p.205.
Board, G., 2017. Recruitment & Selection.
Bryson, J., James, S. and Keep, E., 2013. Recruitment and selection. Managing human
resources. Human Resource Management in transition, pp. 125-149.
Garner, E., 2012. Recruitment and Selection. Bookboon.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp. 3-13.
Jiang, K. and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp. 1264-1294.
Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp. 93-104.
Berman, E. M and et. al., 2012. Human resource management in public service: Paradoxes,
processes, and problems. Sage.
Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1). pp.
1-14.
10