HRM Report: Functions, Practices, and Employee Relations at Aldi

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Aldi, a leading grocery retailer. The report begins by outlining the core functions of HRM, including human resource planning, job analysis, orientation, and training and development, emphasizing their importance in ensuring efficient operations and achieving organizational goals. It then delves into the strengths and weaknesses of different recruitment and selection approaches, contrasting internal and external methods and their implications for innovation, cost, and employee morale. The report further examines the benefits of various HRM practices, such as conflict resolution, improved employee-employer relations, and resource availability, highlighting their role in fostering a positive work environment. It also assesses the effectiveness of HRM practices in raising organizational profit, focusing on innovative employees, effective direction setting, and skill development. The report concludes by emphasizing the significance of employee relations in influencing HRM decision-making and the key elements of employment legislation. Overall, the report provides a detailed overview of HRM's impact on Aldi's success.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and the functions of HRM, applicable to workforce................................................1
P 2 Explain the strengths and weaknesses of different approaches to recruitment and selection
.....................................................................................................................................................2
TASK 2............................................................................................................................................4
P3 Benefits of different HRM practices within an organisation.................................................4
P4 Effectiveness of different HRM practices in terms of raising organisational profit..............5
TASK 3............................................................................................................................................5
P5 Importance of employee relations in respect to influencing HRM decision-making............5
P6 Key elements of employment legislations.............................................................................6
TASK 4............................................................................................................................................7
P7 Application of HRM practices in a work-related context......................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management is an important function of any organisation as all the
corporate strength are depended upon the workforce which is part of any enterprise. It is
important that they are managed in an effective manner so that the profitability of firm can be
maximised. Managing people is of complex nature as everyone has their own beliefs and desires
from the work place which should be fulfilled so that their productivity can be raised to a great
extent (Albrech, 2011). HRM by performing different roles and responsibility at work place
facilitates the most appropriate use of people which further helps in the achievement of
individual and organisational goal with minimum variations. Aldi is one of the worlds leading
industry grocery retailers which has its stress in different parts of the world. More than 20,000
employees are working with this brand which makes it more important for the firm to have good
management of human resource. The following report will talk about the different aspects of this
concepts like functions and roles which are being performed the HRM in Aldi.
TASK 1
P1 Purpose and the functions of HRM, applicable to workforce
In Aldi the roles and duties which are performed by HRM is crucial. There are a number
of departments in the refereed organisation and it is required that each division is provided with
require human resource facilities so that operations of the organisations are managed in an
appropriate manner (Armstrong and Taylor, 2014). It assist each division in carrying out its
functions by performing the various roles like:
Human resource planning – It is one of the basic and most important function which is
performed by this department. It ensures the availability of employees so that no operation gets
hampered. For this it checks the present availability of work force and forecast the future needs.
After comparing both planning regarding the human resource is done like how the vacant places
will be full filled and in case of excess staff termination plans are made so that total cost of firm
can be reduced. This helps in maintaining efficiency in whole work place and unwanted cost can
be avoided which is further utilised in other productive purposes.
Job analysis – Under this function HRM department analyse the need and requirements
of different job that need to be performed by different individuals. It is another important
function as through this the required skills are recognised so that accordingly placement of
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distinct candidates can be done. It helps in putting right person to work on right job so that full
capacity utilisation of resources are done. It also assist in getting the required results which are
possible only if the person working has all the needed knowledge (Armstrong, 2011).
Orientation – Before making a person to start working at his/her work station it is
needed that he is introduced with the work place. This is another function which is performed by
the HRM department in which the fresh candidates are made familiar with the new work place so
that they can be made comfortable and also they get to know about the policies and vision of the
company.
Training and Development – As the refer organisation deals with the customers and
also operating at a such a grand level it is important that the concerned employees are given
required level of training before making them work with the actuals tools ad resources. This
helps in reducing risk from work place like avoiding accidents due to lack of knowledge.
The above discussion shows that the purpose of human resource management in Aldi is
essential and can not be overlooked as it is facilitating smooth functioning of different divisions
(Bakker and Leiter, 2010).
P 2 Explain the strengths and weaknesses of different approaches to recruitment and selection
In Aldi the human resource department has a wide range of choice to select the best
candidate for its different available vacant jobs. Internal and external recruitment are the two
broad categories through which candidates can be encouraged to apply for prospective job. Each
method has their positive and negative sides which are discussed below under different heads:
Internal method – It is a well known and commonly used method to full fill the job
requirements of different departments. Under this process the job opportunity is filled within the
boundaries of business (Berman and et. al., 2012). It is an effective method as it develops a
positive work culture and create motivation in the existing work force. All the present fixed
employees, seasonal work force, retired and other current disabled employees of Aldi can apply
for the available job vacancy and they are given first priority. Different modes of fulfilling the
job needs under this system are:
Promotion – It is a through which a deserving candidate is promoted to a higher
designation and his position is further fulfilled by some other prospect of business.
Transfers – In case of requirement at one branch employees are transferred from some
other branch in the same brand and the employee need is fulfilled.
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Retired employees for freelancer position or part time – Under this system of the x
workers of the same business are re approached and given to do freelancing for the business
(Bloom and Van Reenen, 2011).
Advantages of internal recruitment
Easiest – It is the simplest way of hiring candidates as no planning is required and
vacancy can be fulfilled without doing any marketing and following complex selection process.
Less time consuming – As the candidates are selected from within the organisation
boundary it helps in saving much time. No separate panel needs to be constructed to carry out the
whole recruitment process.
No deep interview required – Since the management is already in contact with the
employees, they do not have to invest much time in the selection process. Simply the candidate is
made to work on the new post after a normal discussion.
Improve employee morale – When work force know that their actions are being
monitored and appraisals are given to the desired candidates than in that case existing employees
feel motivated and work with more dedication (Bratton and Gold, 2012).
Disadvantages
Lack of innovation – In case of this form of selection, modification and changes in the
existing business environment gets restricted.
No opportunity for external resource – Through limiting the resource from within the
boundaries a fresh talent is ignored which may help business in development and expansion.
External source of recruitment – This is another method of selecting potential candidates to
apply for the job. Applicants are invited from outside the business boundaries. It again has its
positives and negatives:
Advantages
Increases business strategy – Fresh candidate come with a new business idea and can
help management in constructing more productive policies.
High productivity – When candidates are hired from outside more attention is given on
the skills required to perform a job. This way a person who full fills all the required criteria can
be recruited and made to work on the vacant post. This way the total productivity level of the
firm can also be raised (Cascio and Boudreau, 2010).
Disadvantages
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High cost – In order to make candidates aware about the available vacancy it is important
that good advertisement is done so that maximum market can be covered. For this management
needs to incur high cost which further reduce the profit margin of that particular financial year.
Time consuming – Selecting prospectus from outside business is a time consuming
process as whole process of recruitment needs to be followed.
TASK 2
P3 Benefits of different HRM practices within an organisation
As discussed above there are different roles and functions which are performed by the
HRM in Aldi. It helps both the employees and employer in different manner. The assistance is
discussed further in more detail which further clear the benefits of having effective HRM
practices in the refereed organisation:
Conflict solving – There are a number of employees which are working in the given
organisation and everyone is from different caste creed and culture. This way their way of
looking at things are different and hence leads to problems. HRM in that case participates in the
matter and try to resolve same as early as possible. It ensures that the matter does not reach to the
top management and is resolved without disturbing the higher authorities (CHUANG and Liao,
2010). It helps the high management to concentrate on more crucial matters which require
attention and analytical thinking.
Better connection in employee and employer – Due to diversified working
environment it is difficult for the top management to have direct contact with all the available
work force. In that case HRM plays a very important role as he act as a mediator for both and
deliver all the quality information to them. This way a relation is developed in both the parties
which makes it easier to to achieve organisation goals.
Availability of resources – In order to carry out various operations it is important that all
the required tools and raw material are made available with the operation staff so that they can
utilise the same to produce final product. HRM assures this that timely the required inputs are
provided so that continuity in work can be maintained (Boxall and Purcell, 2011).
Performance appraisals – To plan promotion it is important that monitoring is kept on
the work force so that accordingly decision is taken by the management. HRM deliver all the
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quality data to both employee and employer so that they can respond on time and no opportunity
is missed due to delay in receiving message.
P4 Effectiveness of different HRM practices in terms of raising organisational profit
HRM of Aldi is capable of raising the required profit and production level of the
organisation. The following points will show how this department is contributing in achieving
huge profitability and productivity.
Innovative and high performing employees – The department of HRM in refereed
organisation puts great efforts in order to raise the production capacity of existing employees by
motivating them to work better. It helps in getting effective work done by the different
departments and accomplishment of goals become easier (Cox, Arnold and Tomás, 2010).
Effective direction setting and execution – Leaders and management take great efforts
to formulate proper code of conduct for the business. HRM ensures that these policies are
properly executed in the organisation and are followed through out the work place. It brings
uniformity in operations and develops organisations efficiency level.
Update employees skills to maintain productivity – as competition is at its peak in the
present world Aldi has to make a lot of alterations in its present code of conduct. It has to take
care that its work force is capable of bringing positive change in the results when provided with
advanced technology and resources. HR identifies the different areas of business which needs to
be raised and improved and therefore provide the required learning.
From the given discussion it is clearly understood how HRM work with effectiveness
with the company and helps it in achieving the desired goals.
TASK 3
P5 Importance of employee relations in respect to influencing HRM decision-making
In order to implement HRM practices at the work place it is of great importance that
good relations are maintained among the different employees as only than the policies of HR can
be executed. Decisions are taken by the authorities of HR and there are a number of employees
who gets effected by the same. Only if there is a positive relation with the employees the change
will be acceptable. HR has to influence the work force to use the provided resources with great
efficiency so that the cost of production is minimised (Crook and et. al., 2011). Cutting cost to
minimum is the main aim of HR department for which it motivates the existing staff to perform
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well. HRM ensures that latest technology is made available with the work force so that it can
utilise it for better results.
Acceptance of innovation – The HR of refereed organisation needs to plan motivating
strategies for the work force so that they do not resist to change and voluntary accepts the new
ideas in business. This helps in saving much of total business cost.
Availability of required personnel – The HR team of Aldi ensures timely and proper
availability of different work force so that operations can be carried out on continuous basis and
work do not get effected due to non availability of employees.
Provide direction – HRM also takes care that a common vision is established through
out the enterprise so that everyone works with a common goal. Uniformity is established through
this which further increases the possibility of achieving goals.
Cost – Minimising the operation cost of business is another aim of HRM which it does by giving
proper guidance and learning to work force. It ensures that before a person is made to work at his
post he should have all the required data and knowledge.
P6 Key elements of employment legislations
Workers laws and legislations gives some rights to employees in their organisation which
should be followed by them. It help in satisfying employees for better doing effective working.
ALDI manager follow such Acts that includes policies and plans which are made by human
resource at recruitment time. Minimum Payment act- In this act, workers are get appropriate wages for their specific
work. Company can not decreased their employees salary if they are done that work. Employees right act- This act will gives proper rights to each worker for secure their jobs
and health by firm (Armstrong and Taylor, 2014). An organisation will provide proper
facility to their employees regarding the health and jobs of holidays and different
situations. Disability discrimination act- In the context of act, firm should provide equal rights to
disable person and can not do discrimination among normal and disable people. Employee Equality act- This act states that each workers have equal opportunities of
promotion and there are no discrimination among age, gender, caste, race and other
factors. Company should provide rights to each employees.
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 Working time deliver- In this act, employee must be complete their working hour that is
maximum 8 hours. If any worker will do work in extra time then company can pay wages
for them.
 Equal wage act- The act states that equal wage act will provide same salary to employee
who are in same position in company (Boxall and Purcell, 2011). An organisation can not
bias among workers on the basis of their caste, gender etc.
TASK 4
P7 Application of HRM practices in a work-related context
Human resource management play an essential role in an organisation such as managing
and controlling all functions, operate different business, solving problems of employees and
many other. They also help in performing various practices that are used for recruiting best
suitable employees who easily achieving desired goals and objectives in proper manner.
Company manager also play vital role in motivating employees for attaining required aims and
targets (Chen and Huang, 2010). They also help in maintaining strong relation with each workers
for resolving their issues and problems which occurs within an organisation. There are different
practices which are perform by manager of ALDI company that are as under: Talent acquisition- Firstly recruiter choose various number of candidates who have talent
to handle and manage all task or work which are performed within an organisation. Selection and recruitment- It is one of the major work which should be perform by
managers of the company. ALDI manager are specialised in knowledge and they are
choose those candidate who have excellent ability and capability for manage the job
position in proper manner. Resolve issues- HR manager main duty is to solve major issues and problems of
employees which create conflicts while doing work. After that personnel also evaluate
and measure all problems and issues of their employees and try to resolve it. Training and development- The main responsibility and duty of HR manager is to
provide proper training and development sessions to their new employees which help in
improving their skills and knowledge in appropriate manner. ALDI Human resource
manager must be identify all the basis needs and demand of workers and try to satisfy
them.
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 Gives flexibility in working- This is required for HR manager is to provide flexible
working to all their workers so that they can easily manage and control functions of the
firm (Collings and Mellahi, 2011). It is useful for ALDI company if they are doing work
according to them it will help in achieving targets and goals.
CONCLUSION
From the above discussion this has been summarised that human resource management
plays a important role in business. It helps in accomplishing the desired objectives and ensures
continuity in operations. In Aldi it perform various function of recruitment and selection after
deciding on the best suitable technique for itself. It also helps in developing better connections
among distinct employees so that management can implement change and do not find the
problem of resistance on the part of work force. Thereafter, different legislations related to the
employment are also highlighted which shows that they have great influence on the business
functions and to be considered while operating business. Lastly, the above file concluded with
the different practices which are carried out by the HR department in case of opening a new
branch of Aldi at a new location.
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REFERENCES
Books and Journals
Albrech, S. L., 2011. Handbook of employee engagement: Perspectives, issues, research and
practice. Human Resource Management International Digest. 19(7).
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Armstrong, M., 2011. Armstrong's handbook of strategic human resource management. Kogan
Page Publishers.
Bakker, A. B. and Leiter, M. P. eds., 2010. Work engagement: A handbook of essential theory
and research. Psychology Press.
Berman, E. M. and et. al., 2012. Human resource management in public service: Paradoxes,
processes, and problems. Sage.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook
of labor economics. 4. pp.1697-1767.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Cascio, W. and Boudreau, J., 2010. Investing in people: Financial impact of human resource
initiatives. Ft Press.
CHUANG, C. H. and Liao, H. U. I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
Psychology. 63(1). pp.153-196.
Cox, M., Arnold, G. and Tomás, S.V., 2010. A review of design principles for community-based
natural resource management.
Crook, T. R., and et. al., 2011. Does human capital matter? A meta-analysis of the relationship
between human capital and firm performance.
Boxall. P. and Purcell. J., 2011. Strategy and human resource management. Palgrave Macmillan.
Chen. C. J. and Huang. J. W., 2010. Strategic human resource practices and innovation
performance—The mediating role of knowledge management capacity. Journal of
Business Research. 62(1). pp.104-114.
Collings. D. G. and Mellahi. K., 2011. Strategic talent management: A review and research
agenda. Human Resource Management Review. 19(4). pp.304-313.
Online
Human Resource Management (HRM) - Definition and Concept. 2016. [Online]. Available
through: <http://www.managementstudyguide.com/human-resource-management.htm>.
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