HRM Report: Analyzing Practices and Impact on Organizational Success

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within the context of a case study, Aldi. The report explores the purpose and functions of HRM, emphasizing their applicability to workforce planning, recruitment, and selection processes. It examines the positive and negative aspects of different recruitment approaches, highlighting the benefits of effective HRM practices for both employers and employees, including flexible working environments, training, and performance management. Furthermore, the report assesses the effectiveness of various HRM practices in raising organizational profits, emphasizing the importance of employee relations, training, and development. It also delves into the key elements of employment legislation and its impact on HRM decision-making, providing a well-rounded overview of the subject.

HUMAN RESOURCE
MANAGEMENT

Contents
INRODUCTION.........................................................................................................................................3
L O 1...........................................................................................................................................................3
P 1 Purpose & function of HRM, applicability to workforce planning....................................................3
P 2 Positive and negative aspect of approaches to recruitment and selection........................................5
L O 2............................................................................................................................................................6
P 3 Benefits of HRM practices for employer-employee...........................................................................6
P4Effectiveness of different HRM practices in terms of raising profits...................................................7
LO3............................................................................................................................................................10
P5 Importance of employee relations with influence on HRM decisions..............................................10
P6 Key elements of employment legislation and its impact on decision-making...................................11
LO4............................................................................................................................................................13
P7 Application of HRM practices in work-related context:...................................................................13
References.................................................................................................................................................15

INRODUCTION
Human Resource Management is an important technique to manage people in an organization in
such a way they lead the business to have a competitive advantage over firms. It is concerned
with the personnel management within the company. The basis function of HR department is to
achieve success by human resource (people) of the organization. HR Department looks after
recruitment and selection, training & development, performance management, organizational
change and maintaining industrial relations. Aldi is German based discount supermarket chain
founded in 1946 by two German families. It has over 10000 stores in 20 countries. The chain
was founded by Karl & Theo Albrecht. The company deals in food and beverages, household
essentials and sanitary products. The study includes the purpose and function of HRM and their
applicability to workforce planning, strength and weakness of various approaches to recruitment
and selection, benefits of HRM practices to employer-employee and their effectiveness in
raising profits for the organization. Employment Legislation and its impact upon HRM
decision-making.
L O 1
P 1 Purpose & function of HRM, applicability to workforce planning
Recruitment & Selection: Recruitment means screening and selecting the most qualified
candidates based on required skills for a job. This process aims to attract the qualified
applicants. Before recruitment process, the organizations must analyze the number of employees
needed by the organization. Forecasting of employees depend upon the short and long term
goals of the organization and their annual budget. This process is crucial for organizations as
it’s minimize the problems emerging out of incompetent, under qualified and unmotivated
employees. As firing the incompetent employees and again hiring a new employee is expensive.

So proper planning of this process will lead to proper workforce planning. Selecting right
person for the right job is what Aldi needs to do.
Maintaining flexible working environment: It is the duty of HRM to give flexible working
environment to the employees to make them feel comfortable and friendly with workplace and
work environment. The basic role of HR Department is to motivate the employees. It is found
that due to the lack of motivation employees don’t participate in achieving the goals of the
company as essentially they can do. HRM should bring some new changes in giving financial
and non-financial benefits to motivating employees of various departments. Employee Welfare
is also a major concern of HR team as this promotes job satisfaction. The organization’s flexible
working environment will help retain employees and enhance them in achieving organizational
goals. Aldi must work on giving flexible environment to employees to do their job so that they
never leave the organization.
Employee Relations: Employees are the backbone of any business. Maintaining employees’
relations is something important and crucial functions of HR Department. It helps in boosting
employee relations and has the power to channelize their behaviors and work. Management
should hold some activities which will help the employer and employee to know each other at
some close and professional stage. Properly maintaining employee relations will lead to a
healthy and balanced work environment. Employee relations are the key to successful working
in Aldi.
Training and Development: It is the most crucial functions of HR Department. Training is
given to improve the present and future performance of the employees by providing them with
skills, knowledge of a subject that is needed to increase the efficiency of employees. Through
training and skill development employees feels confident and motivated and that helps the
organization in achieving the goals and objectives effectively and efficiently. By training
employees gain much knowledge about the concept that prevents from duplication of work and
wastage of resources.
Orientation: Orientation is an important part of HR. This is the basic step to help the
employees to get comfortable with the new organization environment and job. Program should
consist the objectives of the organization and help the employees to attain long term and short

term goals. The basic feature of program is to let know the employee about their duties and
responsibilities, job role, job description and the relation with everyone. Aldi focus on having
good orientation program for employees.
P 2 Positive and negative aspect of approaches to recruitment and selection
Recruitment
It consists of internal and external recruitment. Internal recruitment means hiring people from
inside the organization that lowers the cost of recruitment and the employer knows who they are
getting as they already know the previous employee and their work, their capabilities so they
can work on them accordingly. The employees will be motivated that their employer trusts them
and their abilities and this develop self-confidence in them. It makes the employers looks more
attractive. The disadvantages of internal recruitment can create issues in between colleagues and
this effect the environment of the organization. This will limit the employer choices to hire
people; it can easy and quick to do but same it would be difficult. And then you have to hire
another person it place of the personnel you chose to promote.
External Recruitment has advantages such as it increased chances of employer to choose the
best talent from the big market. Employer can choose fresh and skilled talent that has the new
knowledge that is needed for the growth of organization. The new talent will have creative ideas
and competitive spirit. Hiring people from outside will reduce the internal politics in
management. It is fair to hire the new talents as they help the organization to grow further while
being effective. The disadvantages are this process is very expensive and carry high risk as the
new the employee less understanding of the company’s process. It is time consuming process.
New employees can find it difficult to adjust with existing employees and this will create issues
for the employers. The agencies from where the new candidates are hired is not trusted so this
will allow legal risks as well and then it will cause problem for the name of the company.
SELECTION
Selection consists of interviews and psychometric test. Interviews basically means checking the
confidence of the candidates, knowing about their experience, about their interests and check
their knowledge and thought process and see if they will be suitable for the organization,

weather their goals and objectives match with the company’s goals. They are more personal in
nature. The interviewer can ask any question to the candidate to know basic detail and the
interviewer check the confidentiality and validity of the fact written in the resume or where any
detail in asked. The disadvantages can be it is very time consuming process, interviewer can be
biased. Certain skills that are written in the resume need to be verified and checked so that
factor can be checked. It can be a possibility that the candidate fakes try to impress the panel.
Psychometric test is taken to check the emotional and intellectual abilities of the candidates; this
reveals the personality trait of employees who is shortlisted for a post in the organization.
L O 2
P 3 Benefits of HRM practices for employer-employee
Flexible Environment: As employee considers organizations as their second home, they need
to feel like one there. The environment should be so flexible and smooth that the employee
enjoys coming daily. The workers need to feel a sense of belongingness and not being a slave.
As the employer wants to retain its best talents, they have to give them a flexible and nice
working environment to work in. There should be flexible design of everything i.e assignments,
teams, schedules’, locations. This will benefit employees as they will like the surrounding and
they will never leave the company, as they are gaining respect and are happy working their. It
will benefit the employer as the best people will not leave and the environment will be cool and
comfortable to work.
Learning, Training & Development: The employees need training sessions to enhance their
knowledge and gain new concepts prevailing in the world. Employees feel motivated and this
boosts their confidence to work and make them more effective and efficient. Through learning
employees develop their abilities to perform a task and even help organization in achieving their
goals effectively. This benefits employers as after training there will be no duplication of work,
no wastage of resources, more productivity, more efficiency and the training benefits employees
by developing confidence in them, knowledge and motivation that boost their morale so that
they will be more beneficial for the business.

Performance Management: This is an approach by which the performance of each employee
is measured and their productivity is calculated. This is done to ensure weather the employee is
working to their fullest potential or not, or if they need any training or learning sessions to
develop the skills. It is important to calculate the incentives or rewards of employees and for
making their payroll. It benefits employees in knowing their strengths and weaknesses so that
they can work on them. It will help in motivating them towards working on themselves. It
benefits employers to better know about their employees, and what should be done to improve
their performance and employer can analyze through performance management system that who
needs to be promoted or needs job rotation.
Reward Management: Rewards are the motivation factor for employees. Something extra
from the pay is called as reward. It gives people recognition that they want to feel some sense of
belongingness at the workplace this builds their morale. This benefits employer in giving equal
and fair rewards to employees, knowing their value and this benefits employee in knowing
about self.
These approaches help employee and employer both to know about the processes of the
company.
P4Effectiveness of different HRM practices in terms of raising profits.
HRM practices play a very important role in any organization. No organization can work
without proper Human Resource. Companies producing same good or same services and all the
equipment, process are same but they cannot have a same human resource team. People
everywhere have different way of thinking towards any situation. Some Human Resource
practices which can increase profits of the company are:
a) Training: Training which is given in a company is very important. An employee if trained
properly will definitely give more output then the employee who has not been trained
properly. Very less company gives proper training to its employees. No employee can
work properly without training. Producing capacity in future is decided by the amount of

training given to the employee. ALDI gives various types of training to its employees.
The training can be on-the-job training and off-the-job training.
On the job training means the training given by trainers in the job or with working along
with the trainers. Various on-the-job training are:
1) Coaching: Some experienced staff gives training to the new employees by showing
them demonstrations and giving them knowledge of work. Coaching can be given in
classroom as well as in office. Coaching generally includes lectures given by
experienced people. Lectures by big business men also can be a type of coaching
given to a employee. (Barratt,2019. )
2) Mentoring: All the new joiners are divided in number of groups and each group has a
mentor. He gives proper personal training and finds the strength and weakness of the
employee. Mentor can also be called as the head. Every employee chooses a mentor
himself. Mentor can be anyone. En employee can make his leader a mentor or his
subordinate a mentor or his manager a mentor. Mentor is not a post, its just a respect
given to an individual looking at his experience, qualities and his way of working.
3) Job rotation: Job rotation means the jobs are changes if each and every employee so
that they can get a full experience of all the different jobs in the organization.
Off-the-job training means the training which is provided outside the workplace. It
can be in a different center, college or outside office. The various off-the-job
training offered by ALDI is:
 Selection and interview practice
 Teaching new skills
 Employment law

 Performance reviews
b) Employee retention: the focus of the company should be on the retention of employees.
The employees who are currently working in the organization should not be left. The
experienced employee always knows the company better than the new one. He should be
give his equal share and he should be promoted time to time. The customer retention of
ALDI is very high. Very few employees left the organization as they are comfortable
with the organization and all their needs are fulfilled by the company. Employee retention
is very tough for companies as different employee have different demands according to
them for example one employee wants to increase his salary, other wants good working
conditions and third one wants a increment in his post.
c) Leadership development: leaders are those people who are appointed by company as
leaders or who are appointed by people as their leaders. They act as the face of the
employees and they represent the problems of the employees to the heads of the
company. Leaders are generally those people who have good experience in some fields
and can guide people to achieve targets of the company. Targets of a company can be
optimum utilization of employee but for an employee it can be to do the work assigned to
him. No employee wants to work more but due to leader they sometime do extra work.
ALDI also has many leaders in the company who helps the employees by solving their
problems. If the employees of the company are happy with the working then they will
work with their full potential and this will increase the profit of the company.
d) Performance management and rewards: The performance of each and every employee
should be recorded so that it can be noted that how much an employee is giving to the

company. If the employee works very good then proper rewards should be given to him
in form of incentives so that other employees are also motivated and they will do their
best to achieve it. This way the profits of the company will increase to much extent.
( Heilman. and et.al., 2015.)
LO3
P5 Importance of employee relations with influence on HRM decisions
It is important for a company to have good relations with the employees. Sometimes the
innovative ideas of the employee help the company in getting out of trouble. Employees also
help the company in decision making as they too have experience. Various ways in which good
employee relations can help in effective decision making are:
a) A stake at the Table: When employees are involved in decision making their interest and
professional skills increase and this also increases their loyalty towards the company. The
commitment leads to the increase in the profits of the company and which is beneficial
for the growth of the company.
b) Empowerment increases the morale: When employees are empowered to take the
decision of the company then their confidence and morale increases. This leads to the
development of the employees behavior. Employees are motivated to work hard and
prove themselves to the company. This increases the revenue of the company. ALDI
always give chance to its employees to take various decision of the company. The
workforce of ALDI is divided into various stages. Each stage has a senior and the top of
them are store manager.( Dany, and Torchy, 201)

c) Taps into internal Resources: Using employees in the decision making helps the company
in saving their funds and time which are not wasted in outsourcing. The employee remain
loyal for the company for long term. Hiring a consultancy firm is expensive and
employees are already aware of the processes and can share their views on certain topics
of the company.
d) Improves workplace relationships: Participating in decision-making process improves the
workforce relationship between the head and the subordinates. As the relationship
between the employee and manger will increase, there will be more comfortable
environment in the company which will lead to finding the problems of the company and
will indirectly increase the profits of the company. The workforce relationship of ALDI is
very good. Employees and the managers have good relations in the company and this
reduces the chances of mistakes. The employees shares the problem in working and
proper steps are taken to improve the it. There are many stores of ALDI in different parts
of country but all the stores have one thing in common which is good relations with
customers as well as good relations with the employees of the organization.
P6 Key elements of employment legislation and its impact on decision-making
 Fair labour standard act: The act governs that every labour should be given their proper
wage decided by the government and if they are working overtime then the overtime
amount shall also be paid. They should not be forced to work for more hours. 40 hours is
decided by the government and the labour working more than this should be paid
overtime money. No discrimination should be done against any labour.
 Occupational safety and health act: This act governs that the organization should have
proper working conditions in which an employee can work easily without any problem.

There should be proper safety kit between every 15 employees. There should be proper
ventilation in the organization so that workers don’t face any respiratory problems.
Human resource management should keep record of all the hazardous materials and
chemicals in the company and no one should be allowed to go near it.
 The civil rights act: the civil rights act is a very important step towards the rights of the
employees. This law protects employees from the discrimination based on race, colour,
religion, nationality and sex. ALDI follows this act very seriously. Employees working in
ALDI are always treated equally and any conflict between employees is first understood
then then decision is taken. No biasness between the employee and employer is there.
 The Equality Act 2010: This law says that all employees should be treated equally and
they should all have equal pay rights on the basis of their post and their work(Islam,
2018.)
HR professional must be well acknowledged of all the laws and rights of the employees. There
are various other laws other than these which come under the employment regulations. For
example: the working time regulations 1998, the transfer of undertakings regulations 2006 etc.
ALDI follows the rules and regulations by paying proper and equal amounts to each category of
people performing same work. It’s a serious violation for ALDI managers and supervisors to
make employees work without compensation. Working without paid is never accepted. Proper
breaks should be given to employees who are working for more hours. Breaks amount should not
be debited from the employee’s account. It is the right of the employee to get proper break
between the works. If company is not giving break then additional amount shall be given to
employee. People working in night should be paid extra as night charges. No women should be

forced to work in night in any company. The company should stop the business after the working
hours is over. Children below the age of 16 should not be allowed to work in factories.
LO4
P7 Application of HRM practices in work-related context:
Human Resource is used in every company. Two examples of how human resource play the role
are given below:
JOHN DIABLO
29,wooden street,
London, UK(1222111)
Educational Qualification:
Schooling from: St. Xavier’s London, UK(2014)
Masters: Masters in Economics and Business from London Business School, London,
UK(2016)
Work Experience:
Worked in as professor in LONDON School, UK
Qualities:

Technology Friendly
Good Speaker
Learner
RICK JAMES
29, Captain Space,
Canary wharf, Germany(3344569)
Educational Qualification:
Schooling: The Wilsons school, Germany
Masters: Masters in Economics & Commerce from Cambridge school,USA
Work Experience:
Worked as Assistant Manager in Tesco, Bristol, (UK)
Qualities:
Hard working
Know different languages
Disciplined

Workaholic
Basic requirement of the job: A good friendly candidate with the knowledge of the ALDI.
Should be able to work in high pressure.
Some interview questions:
Q1 Why did you leave the last organization?
Q2 Why you want to join this company?
Q3 Why the company should hire you?
Q4 Where do you see yourself after 5 years?
CONCLUSION
From the above study it is concluded that recruitment & selection, training & development,
managing employee relations, flexible work environment help in workforce planning and
resourcing the people in organization. Then the study focuses on the strengths and weaknesses
of the recruitment and selection in an organization. Performance and reward management,
training and development benefits to employers and employees of the organization. Then
effectiveness of these practices have been discussed in the report and analyzed their productivity
and profits for the organizations. Importance of employee relation is studied in context with
their influence on the decision making power. The laws that the organization follow to maintain
the decency and avoid the penalties and issues.

References
Barratt, J., 2019. Recruitment and selection in the UK care sector: a longitudinal study of
effectiveness in resourcing methods and practice (Doctoral dissertation, Aston University).
Dany, F. and Torchy, V., 2017. Recruitment and selection in Europe Policies, practices and
methods 1. In Policy and practice in European human resource management (pp. 68-88).
Routledge.
Goldstein, H.W.and et.al., 2017. The Wiley Blackwell handbook of the psychology of
recruitment, selection and employee retention. John Wiley & Sons.
Heilman, M.E.and et.al., 2015. Presumed incompetent: Perceived lack of fit and gender bias in
recruitment and selection. Handbook of gendered careers in management: Getting in, getting
on, getting out, 90, pp.90-104.
Islam, T., 2018. Recruitment And Selection Processof Janata Bank Ltd (Doctoral dissertation,
Daffodil International University).
Noe, R.Aand et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Chang, E. and Chin, H., 2018. Signaling or experiencing: Commitment HRM effects on
recruitment and employees' online ratings. Journal of Business Research, 84, pp.175-185.