ALDI's HRM Strategies: Recruitment, Benefits, and Legislative Impact

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within ALDI, a leading grocery store in the United Kingdom. It explores the functions and purposes of HRM, including workforce planning, job analysis, and recruitment strategies, highlighting both internal and external approaches with their respective strengths and weaknesses. The report also examines the benefits of HRM practices for both employers and employees, such as promoting positive behavior, employee development, and creating a flexible workplace. Furthermore, it assesses the effectiveness of these practices in raising organizational profits and productivity, emphasizing the importance of communication and clear role division. The report concludes by discussing the significance of employee relations in HRM decision-making and key elements of employment legislation, underscoring their impact on HRM practices within ALDI. This assignment is available on Desklib, a platform offering a wide range of study resources for students.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Functions and purposes of HRM......................................................................................1
P2. Various approaches of recruitment and selection with their strengths and weaknesses. .3
TASK 2............................................................................................................................................4
P3 Benefits of various HRM practices within organisation for employer and employee......4
P4 Effectiveness of various HRM practices in terms of raising profits of organisation and
productivity.............................................................................................................................6
TASK 3............................................................................................................................................8
P5. Importance of employee relations in HRM decision making..........................................8
P6. Key elements of employment legislation and its impact of on HRM decision making...9
TASK 4..........................................................................................................................................10
P7. Application of HRM practices.......................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An activity which is directly associated with the management of organisation’s available
human resources is stated as Human Resource Management (HRM). It is framed by the firm in
order to improve performance ability of its employees for achieving desired goals and objectives
(Barney, Ketchen and Wright, 2011). Human resource department of an organisation mainly
concentrates on framing effective plans and policies for the recruitment, selection, training and
development as well as for performance appraisal. Following assignment is based on ALDI
which is a leading grocery store functioning in the United Kingdom. Assignment will help
learners to understand different functions and purpose of HRM. Besides this, various approaches
to recruitment and selection with their strengths and weaknesses will be studied in brief. Report
will also support in understanding benefits of HRM practice for employers as well as employees.
Apart for this, assignment will provide the best knowledge about HRM practices which helps in
raising profits and productivity of organisation along with discussing the significance of
employee relation in HRM decision making. Moreover, key elements of employment legislations
and their impacts over decision making will be highlighted.
TASK 1
P1. Functions and purposes of HRM
Human resource management is directly related with the management of available
workforce within organisation. It mainly concentrates on better utilisation of firm’s available
human resources within organisation for ensuring effective achievement of desired goals and
objectives in a stipulated time period. The effective HRM practices within organisation helps in
building better relationship among employers and employees as well as it is essential in order to
maintain a healthy and positive environment at workplace. There are various functions
performed by human resource department of business for certain purposes. Some functions and
purposes of HRM with respect to workforce planning and resourcing in ALDI are being
described as follows: -
Main purpose of HRM: -
 To increase the number of employees working within organisation is main objective of
HRM (Batt and Colvin, 2011).
 Another main purpose of HRM is to improve skills and capabilities of workforce
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 It checks healthy relations among employer and employees of firm.
As Aldi is a leading retailer functioning in the economy of United Kingdom, it is
essential for firm to concentrate on effective management of available human resources. It will
help organisation in achieving the competitive advantages in today's competitive business market
(Bolman and Deal, 2017).
Functions of HRM: -
Main functions which are carried down by human resource department of Aldi for
attaining its predetermined goals and objectives are being described as follows: -
Human resource planning: - It is the primary function of HR department where all plans
and policies are prepared in order to manage available workforce effectively. It ensures effective
working of all workers in operating business activities. Following function is having a great
importance in order to develop and increase the performance level of human resources.
Job analysis and work design: - This function supports in determining nature of job
which in future helps in evaluating skills and qualities required by employees to perform the
work effectively. Besides this, it assists the firm in analysing requirement of roles and
responsibilities for performing job assigned effectively within a stipulated time frame. Along
with that, it has significance at the time of hiring new candidates.
Recruitment and selection: - It is also the main and necessary function of human
resource management that is concerned with recruitment of new capable employees for
performing assigned tasks effectively within specific timeframe. HR department of Aldi must
perform this function in a better manner in order to hire skilled and qualified workforce. The
following helps firm in increasing its competency level within its competitors.
Training and development: - It is another significant function of HRM by the help of
which skills and capabilities of employees are developed. This function is needed for enhancing
the performance level of workforce and for increasing firm’s productivity and profitability. It
helps the organisation in achieving goals and objectives with ease. Training sessions are
conducted by Aldi for the development of employees (Bröckermann, 2012).
Compensation: - All members working within organisation have the main purpose to
earn higher amount of salary with respect to job work carried out by them. Aldi organisation
provides attractive salary to its employees according to work performed by them. This supports
in motivating them towards performing given tasks effectively.
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P2. Various approaches of recruitment and selection with their strengths and weaknesses
Recruitment and selection both are key factors of hiring process which are carried down
by the firm. Both the processes are performed by human resource department of organisation. As
Aldi is a leading grocery retail organisation functioning in the economy of United Kingdom, it is
needed to appoint employees who can benefit Aldi by performing the assigned job effectively
(Campbell, Coff and Kryscynski, 2012). There are two types of different approaches to
recruitment and selection of new employees and it also has some strengths and weaknesses.
These are described as follows: -
Internal approach: - It is the best approach to recruitment and selection which assists in
hiring employees internally from a firm. Internal hiring of firm is done in various manner. For
instance, a vacant place can be filled by Aldi through a transfer of employees who are working
already in a organisation from one post to another. Promotion of employees is the best tool for
filling up of vacancy. Apart from this, approach enables existing workforce to give reference of
their family members and friends who are suitable for the vacant place.
Strengths: -
 Approach helps in conducting process of recruitment and selection within a short period
of time.
 It is good as it does not incur more cost for Aldi in recruiting workforce.
 Approach removes the risk of hiring unskilled employees. It supports in recruitment of effective employees.
Weaknesses: -
 Approach results in demotivation for the employees who are not promoted for new
position.
 It also leads to discrimination. Approach has limited scope with regard to hire creative and innovative workforce.
External approach: - The following approach is used to recruit employees form various
external sources (Cloke and Park, 2013). Application can be received from many candidates who
are willing to apply for the job. This can be done by giving advertisement on different tools of
media with respect to job vacancy. The following approach is more time consuming as compared
to internal as it helps in hiring creative and innovative employees from many number of
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applications received. It have advantage for firm which increases its competency level and also
enhances firms productivity.
Strengths: -
 Approach helps Aldi to hire highly capable and innovative workforce.
 It ensure high productivity of cited firm (Coff and Kryscynski, 2011).
 Approach support business in its external promotion It enables huge number of candidates to apply for the vacant job position.
Weaknesses: -
 It needs more time for conducting the process of recruitment and selection.
 It incurs high cost for firm.
 It have risk of recruiting the employees who are not fit for the place.
TASK 2
P3 Benefits of various HRM practices within organisation for employer and employee
The effective practices carried down by HRM is beneficial for both the employers and
employees. The human resource management practices involves management of performance. It
is important of organisation to coordinate the tasks and activities with its workforce in order to
achieve desired goals and objectives without coordination it is not possible. Some benefits of
HRM practices for employer and employees is being described as follows: -
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Promoting positive behaviour: - It is most important HRM practice of Aldi which helps
business in influencing behaviours of workforce positively towards better performance. The
following practices is best and must needed in order to maintain healthy environment and
relations among all members by altering their behaviours. HRM works in developing a better
working environment in the organisation which direct or indirect impacts on the performance of
employee which finally effects on the organisational performance. HR managers develops a
better working environment which enhance the productivity of employees and motivates them to
work better for their company. These over all supports to employers to increase their annual
profits.
It supports in increasing productivity of all workers which directly benefits firm in
achievement of business goals and objectives effectively and this is main benefit for employer.
Beside this, it assist employer to provide high quality of products and services to its customers. It
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supports in developing loyalty among employees that is good for operating business functions
for longer period of time frame (Fine, 2012).
Development of employees: - It can be easily said that employees of firm are key
elements in success of organisation and in achievement of desired goals and objectives.
Employees development is important practices carried out by HRM. The practice have great
benefits for employers as well as employees. Training and development program is also
organised by the HR management which helps to improve skills of employees which supports
them to work better and it helps them to utilise their resources effectively which helps to cost
control which is a benefit fr employer.
Training is given to employees working within business for increasing their skills and
abilities which supports in performing assigned work effectively. It helps in improving level of
productivity and profitability of business which is a employers benefit. Beside this it benefits,
employer by development of their abilities and skills which is must needed in their own personal
and professional life (Gatewood, Feild and Barrick, 2015).
Creating flexible work place: - In today's world, all members of organisations have expectation
to work in various shift hours according to their suitability. HRM practices supports in creation
of flexible work environment for its employees. It helps in increasing the dedication of
workforce in regard to performing assigned work effectively and enhances firm productivity.
Providing flexible working environment is essential benefit for employees while more
productivity is employers benefit.
Motivating employees: - It is also another practice carried down by HRM of organisation.
Motivation is an factor which influence interest of workers towards better performance. They can
be influenced by payment of higher salary and certain non monetary benefits to employees. It
helps in enhancing performance of employees and directly increases productivity. Increase in
profitability due to more productivity is core benefit for employer while monetary and non
monetary paid to workers is their benefits.
P4 Effectiveness of various HRM practices in terms of raising profits of organisation and
productivity
Human resource management of Aldi provides best information and knowledge to all
workers and it is must needed for performing job assigned effectively in ease. This is good for
employee in order to attain brief knowledge about firms plans and policies. These help
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employees in carrying out activities according to business plans and policies that is must for
attaining goals and objectives significantly. This directly increases productivity of firm and
improves profitability (Gruman and Saks, 2011).
The effective channel of communication within business supports in eliminating
miscommunication within workers which helps in improving level of productivity and directly
results in raising profit levels of Aldi.
Division of roles and responsibilities within all workforce of organisation according to
their skills and abilities supports in performing tasks effectively with a time frame. This
performance effectiveness helps in increasing productivity as well as earning more profits out of
it (Jackson and Parry, 2011).
Human resource management of business significantly concentrates on building and
maintaining healthy relationships between employees within work place. This is beneficial in
improving level of productivity as well as profitability.
HRM help in motivating workers in respect of effective performance by giving them
some monetary and non monetary benefits.
Employees development with a support of training sessions assist in improving skills and
capabilities of workers which is must needed for performing activities of firm effectively with
efficiency. This in future increases productivity of Aldi and help in earning more profits out of
its products and services.
The effective HRM practice within a organisation assist in removing employee turnover
at a high level. Labour turnover may hinder performance level of firm and this generates more
cost for human resource department. The HRM practice significantly retain employees for
longer period of time frame which supports in enhancing profits of firm.
Beside this, decrease in employees turnover help business to retain existing skilled and
qualified employees that directly enhances productivity of enterprise. For maintenance of labour
turnover ratio Aldi give flexible working environment to its workforce which supports in
creation of job satisfaction and helps to retain them. Thus HRM practice assist in increasing
profits and productivity.
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TASK 3
P5. Importance of employee relations in HRM decision making
Maintenance of good and healthy relations among all workers is most significant factor
that defines the success of a business (Kinicki and et. al., 2014). Healthy relations between
members of organisation supports in enhancing productivity which directly improves profit
levels of Aldi. Apart from this, it also supports in gaining employees job satisfaction and
enhances efficiency in working. Strong relations with the employer is the only one factors that
helps in solving conflicts and problems arise. Employee relations are needed for the organisation
to attain it's objectives in the set time frames. HRM is a central link of the employer and
employees which helps to maintain relationship in the both. Employees can communicate their
problems and issues to the HR managers which can help to them to resolved it easily and faster
manner. Issues like; remunerations, working hours, leaves etc. can be communicate by the HR
managers which can help to employees resolves in a particular time period. It is liability of HR
managers to manage an appropriate relationship in the employer and employees by taking
effective decisions regarding to issues of employees and providing them monetary and other
benefits regularly.
Building healthy relation with working individuals at a workplace is dependent upon
many different factors such as environment of working, communication channel and managers
behaviours as well as motivation and others. It is necessary to consider all these factors as an
important in order to develop to healthy and strong relations. All these factor effectively supports
in increasing productivity and sales by which firm is able to earn huge amount of profits out of
its business functions (Oechsler, 2011).
Aldi organisation can follow some techniques in order to develop a strong and healthy relations
among workforce. Some of the following is being described as follows: -
Communication: - It is important for firm to deliver complete information to its workers
by making use of proper channel of communication it supports in enhancing performance level.
The effective delivery of relevant information among employees helps in increasing firms
productivity and profitability. Beside this it eliminates rivalries crated due to miscommunication
and directly supports in developing and maintaining healthy relations within employees.
Career development opportunities: - The working individuals of firm has significant
expectation from employer that they will provide better career opportunities. It is essential for
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Aldi to provide them effective facilities towards their career development. The firm must have a
commitment with their workers that they will get promotions at a certain stage on basis of their
level of performance and it effectiveness. This influence their interest towards better
performance of work and helps in developing healthy relations between employee and employer.
Motivation: - It is described as influencing work force of organisation positively towards
better performance by which desired goals and objectives can be attained. Employees of a
business can be influenced or motivated by giving them certain monetary and non monetary
advantages. In case, where Aldi provides some additional benefits like bonuses, incentives and
rewards on basis of their performance it will help in building better relations with employees.
This supports in increasing productivity level as well as business profits.
Good health: - The employer must have check on health of workers by providing them
better working environment (Ployhart and Moliterno, 2011). Aldi organisation provides complete
healthy and safe environment to its workforce which is good in order to maintain the health of
employees. Beside this it also provides safety equipment in order to work effectively. This
supports in building better relation with its employees.
The strong relation with employee within Aldi supports firm positively in increasing its
productivity and profits.
P6. Key elements of employment legislation and its impact of on HRM decision making
The decision making of HRM is directly impacted by various legislations in regard of
employment (Seibert, Wang and Courtright, 2011). These legislations are described as follows : -
Equality Act 2010: - The following act combines two laws framed by government of
United Kingdom. The combination is of Race Relation Act 1976 and Disability Discrimination
Act 1995. As per this, it is important for business to follow these acts and they must provide
equal opportunities to all working individuals at its workplace. These laws prevents all
employees from getting discriminated on the basis of their gender caste, religion and race. Aldi
must follow this in order to eliminate its impact over decision making in case, it fails to do so
then court have power to close down its operations.
Health and Safety at Work Act 1974: - As per the following act business firm must
ensure good health of employees by providing them better working conditions at workplace.
Apart form this law states that firm should provide all safety gadgets to its workers.
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