Human Resource Management in ALDI: Strategies, Culture, and Employment

This report delves into the human resource management (HRM) practices of ALDI, examining how the company creates value through its HR strategies. It analyzes the impact of regional and national cultures, particularly in Asia, on HRM practices. The report contrasts personnel management with HRM using Storey's 27 points, and explores organizational employment models, specifically the supportive employment model. Furthermore, it discusses the importance of local culture in hiring and firing within transnational subsidiaries and differences in employment laws. The report uses corporate examples to illustrate HR practices and concludes with recommendations to enhance organizational performance. The report aims to understand how culture impacts HRM practices and contributes to business growth and expansion within the retail industry, focusing on ALDI's operations across Europe, Africa, and Asia.

Human Resource
Management
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TABLE OF
CONTENT
INTRODUCTION...........................................................................................................................3
A) The way firm by making use of HR strategies has created value...........................................3
B) The impact of regional and national culture on practice of HRM in Asia country................4
C) Organizations model of employment and the organization levers used by firm in order to
create value..................................................................................................................................5
D) Difference between personnel and HRM using Storey’27 points..........................................6
E) Importance of local culture and HR practices in context of hiring and firing in transnational
or international subsidiary............................................................................................................9
F) Differences in term of employment law in case international HRM change local business
system........................................................................................................................................10
G) Making use of corporate example to explain about HR practices........................................11
H) Recommendation pertaining to HR practices that could lead in enhancing organizational
performance...............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Human resource management is practice of managing diverse range of people that are
working in the organization with an motivate to enhance overall performance and productivity of
company. The manager hire right individuals at right place so that various operation or function
of enterprise can easily completed and end goals of organization can be attained in the best
possible manner. ALDI is company in Europe that has also operation in Africa and Asian
countries that helped in its growth and expansion. It is British multinational providing range of
products and services to customers with range of brand such as Jacks, One shop and Makro. The
report has highlighted crucial point pertaining to the way firm has created value by making use
of HR strategies. Impact of regional and national culture on practices of HRM, differences
between personnel management and HRM. Moreover, contained detailed relevant to difference
in employment law, hiring and firing procedure in transnational or international subsidiary
company. So, the aim of the report is to understand the way culture of different countries impact
of Human resources manager practices and lead in growth and expansion of business in retail
industry.
A)
Strategic human resources refers to coordinating several employees that are working in
the organization so that overall end objectives of business can be achieved. The HR focused on
bringing innovation, flexible culture and environment to employees so that they are motivated to
work for expansion of company. So, overall HR manager of ALDI make several strategies
pertaining to hiring, training and rewarding employees in order to improve business performance
(Doz, 2020). Therefore the way firm is able to make use of HR strategies to create value for
organization in minds and hearts of people can be illustrated as follows:
Understanding of company objective: The first strategy of HR of ALDI is to understand the
main objective of organization in order to decide appropriate course of action that could be taken
for benefits of company. The HR of company has clearly communicate information pertaining to
its vision, mission to employees that helps in influencing them to put more efforts toward
company objective.
Evaluation of HR capabilities: The second steps is evaluation of HR capabilities in terms of
the way employees are being manage and handle. Thus, it helps manager in making necessary
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improvements in its existing capabilities so that company can retained its market positioning
(Bercu and Vodă, 2017).
Analysis of HR strategies in relevance to goals: Moreover, it can be analyse that Hr strategies
are directly relevant to goals of ALDI such as it has make use of financial increment, promotion
and different method to motivate employees. Furthermore, provided safe and secure environment
to employees lead in increasing productivity and achievement of end goals.
Company future HR requirements: The HR of ALDI has also make strategies to identified and
estimate total number of human resources will be required in future scenario. Skills, knowledge
and capabilities that need to be present in them so that they can easily complete the task
(Budiarti, 2017).
Tools required by employees to complete their respective task: It has been identified that HR
manager of ALDI by understanding and arranging type of resources, tools that are required by
employees to complete the task is able to reduce wastage of time.
Implementation of HR strategy: ALDI of HR finally implement the set strategy in order to
manage and retained highly qualified, talented and skilled employees in the organization.
Evaluation and corrective action: At last continuous evaluation and taking corrective action by
HRM manager of ALDI lead in making necessary improvements and creating maximum value of
company.
B) The impact of regional and national culture on practice of HRM in Asia country
Culture can be defined as the way various individuals or group of people in society live,
behave or people having similar kinds of ritual, social habits or the way particular task need to be
completed etc. Each country have its own tradition and culture that has directly impacted on
practice of HRM in Asian country. Such as EU has complete different culture as compared to
Asian country in which ALDI has its expansion (Rana and Malik, 2017). Therefore Human
resources while making any policies need to considered regional and national culture in order to
motivate and inspired individuals to work hard. The way regional and national culture impact on
practice of HRM in Asia country such as most of the human in Asian country like to work in
team or have social relationship. The regional culture of Asian has motivate HR manager of
ALDI to create a healthy working environment for employees so that they are motivated to work
for benefits of organization. The manager has also considered the national culture while
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managing the people so that overall production and profitability of company can be increased
and it can retained its market share in retail sector of UK as well as Asia. Likewise their is local
and national culture to give respect and recognition to culture of each individuals so Hr manager
of ALDI while handling numerous individuals (Kavanagh and Johnson, 2020). So, on the basis
of type of culture at regional and national level HR decided practices in order to manage and
motivate employees so that company can retained its market positioning in international
operation also for many years. European countries have different language, belief and value as
compared to Asian so HR manager also considered the same while communicating informing to
range of people for better outcome. Therefore, regional and national culture have direct impact
on HR practices of ALDI.
C) Organizations model of employment and the organization levers used by firm in order to
create value
Supportive employment models state that individuals can be employed within company if
they are provided wages or employment with necessary support to complete the task. Moreover,
the model is continuous and flexible that helps in meeting needs of each individuals in most
effective manner. ALDI Hr manager by making use of supportive employment model is able to
retained maximum number of highly skilled, talented and qualified employees in the company
for longer time frame (Hu and et.al., 2018). Therefore it can be state that the model has set of
value and principle that each employees needs to perceive in order to delivered better and
consistent services to customers for benefits of organization (Nam and Lee, 2018). Five stages of
Supportive employment model can be illustrated as follows:
Client engagement: It is the first stage which clarify that individuals search for relative job in
specific company through over-viewing the advertisement pertaining to vacancy for specify post
in the company.
Vocational profiling: ALDI hr manager has provided all necessary detailed pertaining to
vacancy of post in company and necessary skills, qualification and experienced required.
Moreover, clarified the criteria that will be use to select potential candidate in the company thus
they are able to identified thing to be achieve and plan strategies to achieve the same.
Job finding: Both HR manager and employees or individual put their best efforts in order to get
respective job in particular organization for satisfaction of their needs. Thus, ALDI manager by
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selecting right individual at right place in company is able to enhance overall profitability and
productivity (Rigby and Ryan, 2018).
Employer engagement: The HR manager of ALDI has find alternative method to engage
employees in workplace so that maximum value can be delivered to customers in limited time
frame and cost. So it by providing appropriate supportive and friendly environment is able to
enhance overall productivity of each individuals.
On and off the job support: At last it can be state that human resource manager by offering
both on the job and off the job support likewise training and development program, guideline
related to the way task can be completed is able to increase revenue and market share of
company.
So, ALDI HR manager in order to handle employees in Asian countries has make use of
various levers that are explained in the supportive model that has helped in retaining highly
talented, skilled and qualified individuals in the company for more time frame (Hou, Hu and
Butt, 2017).
D) Difference between personnel and HRM using Storey’27 points
Human resources manager of ALDI is generally responsible for hiring, selecting and
retaining talented employees in the company so that various operation can be completed in
limited time frame. It also responsible for resolving conflict among employees, so that they
are motivated to work in team for achievements of end goals of organization (Syed and
Kramar,2017). On contrary note, personnel management is administrative specialization
that emphasis on hiring and developing employees that are ready to make optimum
utilization of their skills for benefits of organization. So, it ensure having, maintaining
talented and satisfied workforce that are ready to delivery qualitative services to customers
so that they are influenced to have purchase for specific company only (Hughes, 2019).
Therefore, the main difference between HRM and personnel management is HR is
resource centred while personnel management is workforce centred. Storey’s 27 points can
be used to explained difference between personnel and HRM can be illustrated as follows:
Personnel management HRM
Contract It carefully abide to all rule
and regulation specified in the
HR manager focus on going
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contract. beyond to the contract”.
Rule It emphasis on making clear
rule and regulation that need
to be followed by each
employees.
On contrary, HR manager
change rule and regulation as
per situation and
circumstances for better
outcome (El-Ghalayini, 2017).
Action Personnel management take
action as per set procedure and
policies of company.
It take action as per business
objective and needs.
Behaviour referents Each employees need to
perform specific norms and
custom.
HR manager in its behaviour
referent focus on value or
mission of company.
Management Personnel management of
ALDI monitor activities
performed by each individuals
(Wehrmeyer, 2017).
On the other hand Hr manager
care and handle diverse range
of individuals so that they are
ready to give their best for
achievement of company
objectives.
Nature of relationship Having different type of
relationship with different
people.
ALDI HR manager is mainly
responsible for delegating
each task that need to be
complete by individuals or
relationship between
employees.
Conflict It established a norm or
procedure to resolve the
conflict arising between
employees (Paillé, Valéau and
Renwick, 2020).
It tries to reduce conflict to
maximum extend.
Key relation Emphasis of labour HR tries to make strong
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management. relationship with customers by
satisfying needs of employees
(Natalicchio and et.al., 2018).
Initiatives It take one initiative at
particular point of time.
It take initiative to integrate
resources and various
operation.
Corporate plan Marginal to The corporate plan of HR is
central.
Decision Decision are taken very slowly
by personnel management
Rapid decision are taken by
HR
Management role Transnational role by
personnel management.
Transformation role is played
by ALDI HR
Key manager Personnel is key manager. HR
Communication Focused on indirect
communication method.
Use direct communication
(Lee and et.al., 2019).
Standardization Focused on standardization
more
Less
Selection Employees are selected on the
basis of job need to be
performed.
Integrate all task to select
potential candidate in firm.
Pay Fixed amount As per performance of
employees
Condition Healthy and safe working
condition provided to
individuals.
Harmonize environment is
provided to employees.
Labour management Particular contract. For labour management make
individual contract
Grade many Few
Communication Limited amount of flow Promote Open communication
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Job design Segregate task that need to be
completed by specific
individuals (Wang and et.al.,
2017).
Take steps toward developing
strong team work.
Conflict handling Identified conflict and find
alternative method to resolve
them.
Providing friendly culture to
handle conflict.
Training and development Organizing training and
development program.
Learning environment.
Interventions Personnel procedure Use of different strategies
such as culture, motivation
and proper structure (Berman,
and et.al., 2019).
E) Importance of local culture and HR practices in context of hiring and firing in transnational or
international subsidiary
Local culture can be defined as collective sharing of belief, value and knowledge among
group of individuals such as in Asian countries there are wide range of people that living in
society which belong to different tradition and culture. HR also make use of different practices
and method in order to recruit potential candidate for specific position for smooth operation of
business. While hiring and firing of employees, local culture and Hr practices are considered
important in transnational or international subsidiary as Hr manager needs to hire individuals
pertaining to their culture (Chaudhary, 2018). So that they can easily understand needs of
customers and find alternative method that could be used to satisfied them for benefits of
company. While deciding the hiring procedure, it must have knowledge pertaining to language
used by group of individuals so that they can be aware of which position they need to work
(Parry and Battista, 2019). The local culture and HR practices are also significant in case of
firing of employees, as HR only decide the procedure or policies on the basis of which an
individuals can be terminated from the organization. There are different ethics, belief and value
of people living in specific society, so Hr manager decide fire to employees on the basis of them
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(Greer, 2021). HR manager of ALDI followed equality practices while hiring and firing of
individuals, as it provide equal chance to all individuals to being recruit in the company. At the
same time terminate them for the company on similar rules and regulation so local culture and
HR practices play important role in hiring and firing of employees in the company.
F) Differences in term of employment law in case international HRM change local business
system
Employment laws are rules and legislation made by government that govern the
relationship between employer and employees of the company. It helps in protecting the right of
employees within company so that they cannot be forced to work in specific manner. Each
country have its own rule and regulation pertaining to employment that needs to be considered
by HR manager while taking any decision related to management of diverse range of individual
in the company (Guest, 2017). There is difference in employment law in international HRM
when it change business system as minimum wages need to be paid in Asian country is totally
different as compared to European. Similarly the employees of EU and Asian are entitled to
different types of holiday and working hours for which they have to work in particular week (Lee
and Lee, 2018). Furthermore, the right and responsibilities performed by employer and
employees also change as per local business system. So international HR manager of ALDI
needs to have complete knowledge pertaining to differences in employment laws in order to take
correct decision to manage all employees work for growth and development of company. The
employment regulation can also vary pertaining to discrimination, equality or ethical procedure
that needs to be followed by each individuals while completing the task (Stewart and Brown,
2019). Therefore it can be illustrated that Manager should have complete knowledge pertaining
to employment law in particular country in order to maintained good and harmonized
relationship among range of individuals that are working for smooth operation of company in
competitive environment.
G) Making use of corporate example to explain about HR practices
From the secondary research, it can be stated that there are different organization in
which HR manager are making use of several method or practice to attract and retained talent
individuals in the company. For instance, Sainsbury Hr manage focused on provide fair
compensation to each employees on the basis of their actual performance that has help in
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motivating individual to give their best for growth of company. Moreover, there are many other
companies in retail sector whose HR manager is taking continuous measure to provide safe,
secure and healthy working environment so that employees are motivated to improve their
overall performance (Kianto, Sáenz and Aramburu, 2017). For example: Morrison is one such
corporate example in which Hr manager has focused on providing friendly and supportive
environment to individuals so that they can easily complete the task without much mistake and
wastage of time (Sapegina and Weibel, 2017). So, these two companies are major examples of
HR practices that has been used in order to handle all employees that are working in the
organization.
H) Recommendation pertaining to HR practices that could lead in enhancing organizational
performance
From the above study pertaining to ALDI, it has been identified that HR manager needs
to make certain change in its practices to have more skilled, qualified and knowledgeable
employees in the company. So, various suggestion in context of HR practices that can enhance
organization performance can be illustrated as follows:
360 performance management feedback system: The first and foremost suggestion is that Hr
manager needs to take 360 performance management feedback in order to effectively understand
the needs and preferences of each employees (Hou, Hu and Butt, 2017). Moreover, it will helps
in finding key areas in which they lack and the way their overall performance can be improved
so that company can earn maximum revenue in retail sector.
Use of innovative technology: It can also be suggested that ALDI Hr manager in international
operation of business needs to make use of innovative technology in order to have knowledge
pertaining to culture of each country (Michael, 2019). Thus, decided appropriate method that
could be used to manage employees so that company can enjoy more profit margin and brand
image in external environment. Therefore, HR manager by making use of digital platform can
have information related to local and national culture, employment laws thereby decided right
method to influence people to delivered better services to customers (Wehrmeyer, 2017).
So, ALDI HR by applying the above suggested recommendation can easily sustain
business operation of company in Asia country and expand more in international market by
fulfilling needs of employees and customers.
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CONCLUSION
From the above report it can be concluded that HR manager is mainly responsible for
planning, organizing and motivating employees to improve their performance so that company
can enjoy higher market share. Moreover it can be summarized, that local culture and Hr
practices have direct impact on management, hiring and planning for growth and development of
employees. At last it can be concluded that HR manager of ALDI needs to considered both local
and national culture while taking any decision that is fruitful for organization in longer run.
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