HRM Functions, Practices, and Impact on Aldi's Success

This report provides a comprehensive analysis of human resource management (HRM) practices within Aldi, a major international retail chain. It begins with an introduction to HRM and its core functions, emphasizing workforce planning and resourcing. The report delves into the strengths and weaknesses of various recruitment and selection approaches, both internal and external, offering insights into Aldi's strategies. It then explores the benefits of different HRM practices, such as training and development, and examines their effectiveness in enhancing Aldi's profitability and productivity. The analysis extends to the importance of employee relations in shaping HRM decisions and identifies key elements of employee legislation and their impact on Aldi. The report concludes by applying HRM practices within a work-related context, providing a holistic view of HRM's role in Aldi's operations.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Explanation of the purpose and the function of HRM, applicable to workforce planning and
resourcing the Aldi..................................................................................................................................3
P2Explaination of strength and weakness of various approaches of recruitment and selection in the Aldi
.................................................................................................................................................................4
Task 2..........................................................................................................................................................5
P3 Explanation of the benefits of various HRM practices with in Aldi...................................................5
P4 Evaluation of the effectiveness of various HRM practices in terms of raising Aldi profitability and
productivity.............................................................................................................................................6
TASK 3.......................................................................................................................................................7
P 5 Analyzing the importance of employees relations in respect to influencing HRM decision making
for Aldi....................................................................................................................................................7
P6 Identification of key elements of employee legislations and the impact it has upon HRM decision
making for Aldi.......................................................................................................................................8
TASK 4.......................................................................................................................................................8
P7The application of HRM practices in a work related context...............................................................8
Conclusion...................................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
Human resources management is a process of recruiting, motivating, encouraging, evaluating
personnel so as they can attain desired objective within a time period. The entire process and activity of
organization is largely depends on the effectiveness and efficiency of employees performance.
Therefore, corporation requires to maintain and motivate them for higher performance and
productivity. In the absence of employees, business enterprise can not services its function and
activities. The following report is going to discuss the important of HR planning and management of
human resources with respect of Aldi (Miner, 2015). It is the world largest retail outlet which dealing
with consumer products. In addition to this, in this report various functions of HRM and their role has
also discussed. Furthermore, strength and weakness of recruitment and selection process has also
studied in this report. The major objective of this report is to get deep knowledge about the
management of human resources and understand its importance in the Aldi organization.
TASK 1
P1 Explanation of the purpose and the function of HRM, applicable to workforce planning and
resourcing the Aldi
Human resource management is very important aspect for the business organization through which
it manage and measure employees performance in order to attain desired objective. In the absence of
proper management, business activities and functions may largely negatively influence. In the context of
Aldi it is a one of the world leading grocery retailers with more than 7000 stores across 70 countries. In
the UK it has over 500 stores employing in excess if 2000 people. Its major objective is to earn maximum
market share and profitability by delivering high quality of products and services. For the attainment of
this objective, company requires to manage human resources and its performance in an effective
manner. Human resource management department of the cited organization have major objective to
maintain, manage, motivate employees in such manner so that desired outcomes can achieve. In
addition to this various function of HRM are as follows-
 Recruitment and selection- it is the major function of HRM of Aldi under which management
can hire or recruit the talented and skilled employees in the organization (O'Neil and Drillings
eds., 2012.). With assistance of this function, cited venture can improve the productivity
because it is a process under which firm can search and select the effective candidates which
helps in attaining desired objective.
 Orientation- This is the fundamental step to assist a new employees to adjust himself with the
employer and with his new job. Employees orientation program should includes the objective
and goal of corporation .Provide intensive orientation to employees is one of the major function
of HRM. The programs should aid the personnel to know his assigned responsibility and his
exact job description, job role.

 Training and development-This is another major function of HRM which assist in achieving
objective within a time period. In this manner, Aldi can organize training and development
programs through which employees have opportunity to improve their existing knowledge, skill,
ability and efficiency. This will assist in achieving objective of Aldi.
 Managing employees relation- Employees relationship is a very broad concept and it one of the
crucial function of HRM. It assist to foster good employee relations. They have the ability to
influence behavior and work outputs.
As per the above discussion it has been ascertained that there are various purpose and functions of
HRM which assist corporation in achieving the objective within time period. These all function of
HRM highly helpful for human resource planning. It is a process under which HR manager analyze
the present condition and requirement of workforce in the company (Yidong and Xinxin, 2013).
According to the situation of workforce, HR manager develop planning for hiring employees in the
company for right position, at right time. The major objective of workforce planning is to recruit
right employees for right job, at right time at workplace. For this planning, purpose and function of
HRM play a very crucial role because by these function, HR manager can effectively recruit the
employees and analyze their efficiency. For example, at the time of workforce planning, HR manager
requires to conduct the recruiurment programs which is major function of HRM.
P2Explaination of strength and weakness of various approaches of recruitment and selection in
the Aldi
Recruitment and selection is a process under which manager of organization invite candidates
for vacant position and analysis their efficiency buy conducting interview. In this process, manager
analyze, assess, observe the efficiency, capability and knowledge of deserving candidate and recruit
them according to the requirement of corporation. With assistance of the recruitment and selection
process, organization can easily identify and determine desired candidates and recruit them according
to requirement and vacant position of organization (Prince, 2011). This is very important aspect for
business because through this company can able to search and select the new skilled and talented
employees which aid in attaining business objective. There are two kinds of recruitment and selection
that is external and internal. The strength and weakness of internal and external recruitment are as
follows-
External recruitment and selection
In the external recruitment and selection, corporation invite the candidate for required vacant
from outside of the firm. In this manner, HR manager of the company prepare documentation for
recruitment and publish in various promotion medium like newspaper, emails, ,magazines etc. In this
process, HR manager does not hire or select the internal employees for the vacant position.HR manager
only allow for vacant position to external candidate and analyze their efficiency at the time of interview.
In this process, firstly HR manager prepare the documentation of recruitment for vacant position
according to requirement of corporation (Vanhala and Ritala, 2016). In this manager add job
specification and person description so as desired candidate can easily understand the requirement of
organization as well as roles and responsibility of vacant position. While various applications collect by

HR manager of organization then he/she shortlist selected application for interview. After that manager
invite shortlisted candidate for interview and organize three or two round for final selection. Manager
takes the aptitude test for shortlisted candidate and those who selected inaptitude test than manager
conduct the final face to face interview. In many recruitment, manager organize or conduct three round
of interview such as aptitude test, group discussion and final face to face interview. In the final
interview, manager analyze and assess the skill, capability, ability, efficiency, knowledge and quality of
candidate and select them for vacant position in the organization.HR manger select candidate according
to requirement of the company and describe all roles and responsibility for desired position (Dessler,
2016).
The major advantage of external recruitment is that HR manager of organization can easily
identify and search the various skilled and talented candidate from outside of the organization. In
addition to this, company can easily invites the candidate who are from outside of the states or city.
However, the major weakness of this external recruitment and selection process is that corporation
have to spend the money for publish the advertisement. Furthermore, HR manger have to spend money
on the various promotional activities and short listing candidates. The external recruitment is a long
process so HR manger have to spend his time in order to organize various round of interview and
aptitude test.
Internal recruitment and selection process
Internal recruitment and selection process is different from external recruitment. In this process,
organization recruit internal employees by job rotation, job promotion and transfer. In this process,
organization does not invite candidates from outside of the organization , it just recruit or promoted
employees for higher position or different position in the company (Gruman and Saks, 2011)
The major advantage of this internal recruitment process is that company does not need to
invest money in the various promotional activities. In this process, HR manager neither prepare the
documentation of recruitment nor short listing the applications of candidates(Locke and Latham, eds.,
2013). Manager have not need to conduct the various round of interview for analyzing the strength,
quality and efficiency of candidate. In this process, manager just promote or transfer the employees for
different position or for higher authority in the organization. The major disadvantage of this internal
recruitment is that corporation have lost the opportunity for recruiting candidate from outside of
organization. They just hire internal employees for required position so company unable to search the
higher skilled and different talented candidate for required position.
Task 2
P3 Explanation of the benefits of various HRM practices with in Aldi
Human resource management is a very important aspect for employer as well as employees. In
the absence of HRM department in the corporation, management can not smoothly run its business
function and activities and also can not attain desired objective within a specific time period. This assist

Aldi in managing performance of employees and also aid in motivating them for higher productivity and
profitability (Li, Tan and Teo, 2012). There arte various kinds of practices of HRM such as maintain
good working environment, organize training programs, , conflict management, helps in performance
management etc. With assistance of this practices, both employer and employees are highly beneficial.
Following are some benefit of HRM practices for employer as well as employees-
 Training and development programs- This is the major important practices of HRM
which assist employees so as they can easily improve their personality and
professionalism. With assistance of this HRM practices, personnel can enhance their
existing knowledge, ability, talents, skill and criteria of working in the organization. In
addition to this they can able to take initiative for higher performance and responsibility
in the organization. This assist in increasing their current status and professionalism in
their working profile (Chaudhry and Javed 2012). On the other hand , by this HRM
practices, employer are also highly beneficial because while employees performance
and ability will increase then business productivity will automatically improve. This also
aid in enhancing profitability of Aldi business organization.
 Developing good relation-This is another important practices of HRM through which
human resource department maintain and develop healthy relationship among the
various department of organization. This is major responsibility of HR manager to
maintain health relationship among employees and employer so as productivity and
profitability of Aldi can improve. By this practices employees are beneficial because they
can easily share their issue and conflicts related to working with employer or top
management (Graves, Sarkis and Zhu, 2013). This aid in improving employees moral
toward organization. On the other and , employer are also beneficial by this HRM
practices because they can easily identify various suggestion and opinion of employees
regarding working policies and practices. This assist in managing health working
environment at workplace.
 Performance management system- Human resource manager is responsible for keeping
people feel motivated for their work. By developing effective working policies and
render attractive motivational reward, HR manger can easily motivate employees for
higher performance and productivity. This assist in improving the personality and
professionalism of employees because hey can gain effective salary package, incentive,
fringe benefits, promotion, increment. Thus their status and working profile can
improve. On the other hand while employees motivation level increase then Aldi’s
productivity and profitability will automatically increase.
P4 Evaluation of the effectiveness of various HRM practices in terms of raising Aldi profitability
and productivity.
As per the above discussion it has been ascertained that there are various kinds of practices of HRM
such as recruitment and selection, training and development, job design, workforce planning,
motivation and recognition, work life balance, good relationship and working environment and so on.

These all practices of HRM have major objective is to attain the organizational goal (Pilbeam and
Corbridge, 2010). Aldi is a famous retail outlet in the UK which have major objective is to earn
maximum profitability and market share by delivery high quality product and services and along with
high customer satisfaction. For this objective, company have to contribute its best efforts so as each one
in corporation can perform effectively. In this manner, HRM department have major roles and
responsibility to manage people in such manner so as they can appropriately perform their job and
attain objective. Following are various effectiveness of HRM practices which aid in gaining profitability
and productivity of ALDI-
 Employee Retention- The major effectiveness of HRM practices is employee retention because
while HRM department successfully meet employee requirement and solve their issues and
conflicts regarding their working then they will motivated for retaining in organization for long
time. Furthermore, motivation and recognition by providing effective salary and incentive is
another major HRM practices which assist in encouraging people for carry their job in the
organization for long time. This effectiveness of HRM prices assist in improving profitability and
productivity of Aldi for long time because it can easily retain employees for long time.
 Employer branding- HRM practices assist Aldi in improving its brand and goodwill in the market.
With assistance of training and development programs, motivation techniques, god relationship,
HR department aid in increasing employees performance level as well as their
professionalism .Thus, by this practice company can able to develop strong brand image and
good will in the market and effectively compete with rivals (Iles, Chuai and Preece, 2010).
 Quality enhancement- With assistance of training and development programs, HRM
department can able to improve existing performance of employees, their knowledge,
efficiency, skill, ability, capability and strength. This helps in improving the quality of working of
personnel in the Aldi.
 Conflict resolution-This is another important effectiveness of HRM practices through which work
related issues and conflicts among workforce can resolve. In this manger, HR manger is
responsible to manage good relationship with workforce so as they can share their personal
issues and conflicts with manager .By this manager can easily identify the major problem among
the workforce and find best alternative option and strength to resolve that issue at workplace.
So it can be said that HRM practices assist in resolving work related conflicts in the organization.
TASK 3
P 5 Analyzing the importance of employees relations in respect to influencing HRM decision
making for Aldi
In the context of Aldi, managing employees relation is very important because entire working
and productivity of business is largely depends upon employees. Thus, for HR department it is very
essential for develop and maintain healthy relationship with workforce. The major advantage of
effective employees relation is that company can easily identify the current issue and conflicts related to
working of employees at workplace. While, management develop effective relation with employees

then they can freely or openly take or discuss their issue with top management. This will assist in
resolving problem from organization and taking healthy decision for business (Holtbrügge, Friedmann,
and Puck, 2010).In addition to this, with assistance of healthy employees relation, management of Aldi
can also identify various suggestion, opinion, reviews , feedback and idea of employees related working
policies, practices, strategies and activities. This will assist in taking business related decision in the
organization. It can be said that effective employees relation helps in taking healthy business decision
because management can easily determine various issue, suggestion and idea of employee regarding
existing performance of business as well as future development. On e another important significance of
employees relation is that management can retain employees for long time in the organization.
P6 Identification of key elements of employee legislations and the impact it has upon HRM
decision making for Aldi
In order to provide protection and security to employees regarding their employment and
workplace, UK government has developed various kinds of employees legislations and regulations which
organization have to follow and apply in the business working. In the context of Aldi, it have to follow
various employees legislation which influence decision making of HRM-
 The sex discrimination act 1975-As per this act, Aldi can not discriminate any candidate at the
time of recruitment and selection on the basis of their age, sex, religion, personal relation,
culture etc. The selection and promotion should made on the basis of employees skill,
knowledge, efficiency and qualification (Furtmueller, Wilderom and Tate, 2011).
 The equal pay act 1970- As per this act, all male and female should receive the same pay for
doing the same types of work or ranked as being of the same value. The HR department of Aldi
can not provide more value to male candidate as compare to female if both working as same
designation. They have to provide equal facilities , salary, promotion to male and female
employees in the organization
TASK 4
P7The application of HRM practices in a work related context
In the Aldi organization, HR department have various HRM practices such as training and
development, performance management, job design, motivation and recognition, health and safety,
good relation etc. With assistance oif these practices, company can improve profitability and
productivity. It is significant for working in the corporation of Aldi. For example, training a d devilment
programs is direct related to business performance and productivity in the organization (Bondarouk,
Ruël and Looise, 2011). Aldi organize on job training programs for employees through which
employees has successfully gained the knowledge and skill of higher performance. This aid in attaining
objective of Aldi within a specific time period. On the other hand with assistance of recruitment, Aldi Hr
manager has successfully hired skilled and talented candidate from outside of company.

Conclusion
From this project report it has been concluded that HRM practices is very important for Aldi
organization through which it can improve its productivity and profitability. With assistance of various
employees legislation, corporation can provide safety and security to employees regarding employment.
It has been also concluded that employees relation assist management in taking healthy and good
decision making.

REFERENCES
Books and Journals