Human Resource Management Report: ALDI UK - HRM Practices

This report provides a detailed analysis of Human Resource Management (HRM) practices within ALDI, a leading grocery retailer in the United Kingdom. The report explores the core functions of HRM, including recruitment, selection, training, and employee relations, emphasizing their significance in achieving organizational goals. It examines the strengths and weaknesses of various recruitment and selection approaches, differentiating between internal and external methods, and systematic versus unsystematic selection. Furthermore, the report highlights the benefits of effective HRM practices for both employees and employers, focusing on creating a positive work environment and enhancing employee performance. The report also evaluates the effectiveness of HRM practices in raising organizational profits, emphasizing the importance of employee relations in influencing decision-making. Finally, the report discusses the significance of employee relations and employment legislation's impact on HRM decisions, concluding with an application of HRM practices in a work-related context.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions and purpose of human resource management..................................................1
P2 Strengths and weaknesses of various approaches of selection and recruitment...............2
TASK 2............................................................................................................................................4
P3 Benefits of Human Resource practices for employee and employer................................4
P4. Effectiveness of various HRM practices in terms of raising profits of organisation.......5
TASK 3............................................................................................................................................6

P5 Significance of employee relations in influencing decision making related with human
resource management.............................................................................................................6
P6 Main factors of employment legislation and its impact on HRM decision making..........7
P7 Application of human resource practices in a work related context.................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is related with managing the employees performance
through analysing their actions that will help in achieving organisational goals and objectives.
Human resource management performs various functions such as performance evaluation,
recruitment, selection, training and development of employees. HR management help in
formulating polices and strategies in order to satisfy the needs and wants of an employees so that
they can contribute effectively to the organisational goals(Manroop, Singh, and Ezzedeen, 2014).
ALDI, a leading grocery retailer in United Kingdom is taken in this report for study. The
company is providing their services in more than 20 countries. The purpose of this report is to
provide the role and responsibility of Human Resource Management and their contribution to the
achievement of goals and objectives of an organisation. It also need to studied about the
importance of employee relations as well as impact on decision making process all mentioned in
this report.
TASK 1
P1 Functions and purpose of human resource management
Human resource management plays an important role in managing the activities and
performance of employees in company. It is the responsibilities of manager to formulate
effective policies and business plans for the company. HRM has main purpose to recruit
appropriate candidates who can contribute maximum to the organisation. The manager of
company has duty to evaluate the performance as well as motivating their employees to perform
better so that they can hire skilled and capable candidates for job they offered. In short, HRM
should concentrate on the overall development of their employees which indirectly helps in the
performance of both employees and company.
Functions of HRM: Recruitment: It means Recruiting right candidates for the right position at the right time
which helps in achieving gaols and objectives of company. In order to recruit the
company should need to advertise about the vacancy so that large number of skilled
people comes toward their company for interview (Ployhart, and Moliterno, 2011). The
manager should first evaluate the skills of applicants and thereafter choose skilled
candidate to perform the job.
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 Relation with employees: A proper communication and coordination between the human
resource manager and employees is essentially required for the welfare of the
organisation. Therefore is is the responsibility of HRM to create a platform for the
employees so that they can receive feedback and issues and problems and thereafter
resolve their problems as early as possible in order to maximise their satisfaction level. Conduct training and development: It is required for HRM to identify the gap between
current and standard skills of employees and therefore accordingly conduct training
sessions and development programs in order to improve and enhance the skills and
knowledge of their employees so that they can effectively contribute to the performance
of an organisation.
 Compliance: There are some rules and regulations that to be followed by every member
of an organisation and if any member fails to comply with rules and polices then a legal
action to be taken against them in order to maintain healthy working environment in
company.
Hence, it is the responsibility of HRM of ALDI to perform these functions in order to achieve
company's goals and objectives.
P2 Strengths and weaknesses of various approaches of selection and recruitment
Recruitment: Employees is an asset of company who can help the company to achieve goals
and objectives of company therefore recruiting skilled candidate for the Job position they offered
is must in order to achieve success and growth of a company (Gruman, and Saks, 2011). There
are various approaches of recruitment through the manager of ALDI can hire skilled candidates
to perform effectively and efficiently:
Internal approach of recruitment: Through applying this approach the manager offers
the higher job for their existing employees in order to promote them in the company. Therefore
manager should need to first evaluate the skills and capabilities of workers and then workers who
qualifies the criteria has got a chance to get promotion. Strengths and weaknesses under this
approach are as follows:
Strengths:
As the job is offered to existing employees so the company does not need to spend money
on advertisement thus it saves cost of company. It also helps in providing motivation to their
existing employees through giving promotions to them so that they can perform better and also
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brings loyalty and commitment towards enterprise. This will create healthy environment and
enhance productivity of entire company. It also helps in saving cost of training and development
programs as the existing employees have already knowledge about the company activities.
Weaknesses:
The weakness of this approach is that the company cannot get fresh talented and
innovation at workplace. Choosing right employees for the promotion becomes difficult for
HRM as it also brings dissatisfaction among other employees which indirectly makes negatively
impact on the the performance of an employees as well as organisation.
External approach of recruitment: It is considered as one of the effective approach of
recruitment. In this approach, manager invite public rather than existing employees to apply for
the job (Glick, Stein, and Edelson,2011). They follows external methods such as advertisement
etc. in order to provide information about the vacancy in the enterprise which helps in attracting
large number of skilled candidates. Thereafter manager evaluate applicants their skills in order to
ensure whether they are perfect for he job or not. Main strengths and weaknesses of this
approach:
Strengths:
In this approach manager has given a chance to the candidates outside the enterprise
which helps the enterprise to bring new fresh talent and innovation in the company that will help
in increasing performance and profit of the company. The manager has lots of option to choose
for the right job therefore chances of selecting a skilled candidate for the offered job is
maximum.
Weaknesses:
Making advertisement and conducting interview for large number of candidate consumes
more time and money (Fulton, and et. al., 2011). And it also demotivate their existing employees
for not given chance for getting job company offered which may create conflicts among new and
existing workers.
Selection: After evaluating the skills and knowledge of candidates through conducting interview
sessions the manager of company select the appropriate candidate for the offered job. The main
approaches of selection:
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 Systematic approach: In this the candidate are selected through evaluation of their skills
and capabilities by following certain steps in sequence. This will helps in eradicating
difficulties that may occur during selection of candidate.
 Unsystematic approach: In this manager select candidates on random basis without
following any steps. The manager can select any candidate according to their skills and
knowledge.
TASK 2
P3 Benefits of Human Resource practices for employee and employer
To maintain healthy work environment, various HR practices are there for provide
benefits to the employees and company. Such practices are:
Benefits to employer Creative positive work environment: The company need to formulate certain polices
which must be followed by their employees in order to maintain better work
environment. Healthy work environment enables the employees to perform better in order
to achieve goals and objectives. For example if the company make changes in existing
technology then manager need to provide guidance to their members that how to utilised
technology in efficient manner. Help in taking future decision: As the manager evaluate the employee's activities which
is to be done in future helps in making better decision for the future activities. If the
manager is estimating the future situation that may arise then he should also responsible
to implement actions in order to bring positive results. For example if managers predict
that demand of their company's product and services increases in future then they need to
produce more now in order to match the requirements. Provide support to evaluate the policies of organisation: Manager need to formulate and
implement specific polices to maintain healthy work environment which helps in
maximising the level of and efficiency and satisfaction of their employees.
 Helps in building team: Manager is held responsible to evaluate the skills and
capabilities of existing employees and therefore manager came to know about their
strengths which helps the manager to build effective team in order to achieve company's
goals and targets (Batt, and Colvin,2011).
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Benefits to employees: Enhancing employees performance: HRM practice helps in providing good work
environment which helps in maximising the performance and efficiency level of
employees that will help the company as well in order to achieve organisation's desired
targets. Training sessions and development programs are such example of improving
performance of employees.
 Understand various needs of employees: The HRM is held responsible to conduct
training sessions and development programmes according to their employees needs
which helps in enhancing skills and knowledge in effective and efficient manner. The
manager of company also need to provide guidance and direction to their workers in
order to perform well so as to achieve organisational goals and objectives. For example
providing satisfaction to employees through incrementing their salaries etc.
 Create healthy working environment: HRM need to formulate policies and guidelines
which must be followed by employees in order to eliminate conflicts or issues that may
arise during performing task. Fair incentives also need to be provided to the workers in
order to improve the quality of performance within an organisation.
P4. Effectiveness of various HRM practices in terms of raising profits of organisation
In order to improve employees performance through which employees can contribute
more to success of organisation, HR Department plays a key role through providing guidance
and direction to the employees as well as managers of company. HR Department need to
undertake various activities and practices in order to maintain healthy working environment
which made positive impact on the performance of employees as well as profitability index of
company (Kakuma, and et. al., 2011). As the resources available in the organisation are scarce
and limited therefore it is essential for the company to utilise available resources effectively and
efficiently which helps in increasing profit of the company. Effective contribution of employees
should necessarily required to achieve desired targets therefore company should need to have a
support and commitment from their workers and this can achieve only if company fulfil the
requirement and provide maximum satisfaction to their workers in terms of reward incentives,
resolving issues etc. HR Department should need to create platform through they can receive
feedbacks, opinions, issues etc. form their employees and thus put some actions on them in order
to resolve their issues or conflict as early as possible.
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Therefore, Effective communication and coordination among different levels of
management should essentially required to achieve desired goals and targets. In order to perform
effectively and efficiently the HR Manager should need to identify the problems that mostly
workers faces during completion of task and thereafter conduct training sessions and
development programs to their employees which helps the employees to complete the allotted
work within time period which indirectly improves the performance of an organisation as well.
So the HRM practices brings overall development of the employees as well as managers of
company which indirectly helps the company to achieve profit targets more effective and
efficient manner.
TASK 3
P5 Significance of employee relations in influencing decision making related with human
resource management
Maintaining good and healthy relations between employer and employees is must in
order to achieve organisational goals and objectives. And it can be only possible only when
employer provide healthy and risk free environment to their employees which also helps in
maximising satisfaction and efficiency level while performing the role and responsibilities
assigned to them (Coff, and Kryscynski, 2011). There are many ways through which the
manager of ALDI can create better relations with employees. Such are as follows:
 Involvement of the employees in the decision making process helps the company to set
mutual goals and objectives. Therefore it is required for the manager to invite their
workers to participate in the decision making process in order to get knowledge about the
working conditions and thereafter implement decisions for the benefit of employees as
well as company.
 Employer should not differentiate workers on the basis of their status in company. They
should give equal treatment to all employees in a friendly manner. For example top
authority such as manager should not dominate employees who have low status which
bringing demotivation in them and it can adversely affect the performnce of employees as
well as company.
 Employers should need to create a platform where the employees gives their opinions,
views and problems to them so that they can provide effective solution to resolve all
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issues and conflicts (Fine, 2012). This will help in maximising the level of efficiency as
well as satifact6ion to the employees after which they can perform well without facing
any difficulties.
 The employees can only be motivated through getting rewards, incentives, compensation
etc. for their work so it is necessarily required for the company to direct the manager to
give incentives or compensations to their workers on the basis of their performance. This
can help in achieving desired targets within time limit.
 In order to create healthy environment the manager should need to provide equal
opportunities for growth of employees which indirectly helps in enhancing the
performance of an individual.
Through these ways manager of ALDI can maintain good and healthy relations with the
employees and it is essentially required in order to get support and commitment from the
employees so that when company allot business activities to workers they can perform well with
full of dedication (Hobfoll, 2011). And if the management fails to maintain healthy relation with
the employees then it will create bad impact on the performance of company. Therefore in order
to achieve desired targets of company the manager should need to offer fair remuneration and
incentives to employees on the basis of their performance through their workers can easily
motivated to achieve desired goals and objectives. Conducting training sessions and development
programs by manager of ALDI helps in enhancing and improving the skills and knowledge of
their workers so that can contribute maximum to achieve organisational goals and objectives.
P6 Main factors of employment legislation and its impact on HRM decision making
There are certain rules and regulations which explain the basic rights and duties of
employees that to be performed at workplace is known as Employment legislation. The manager
can act towards treating employees according to the employment legislation and the factors
which can influence the decision of manager related with employees are as follows: Employment Right Act: This Act provides the rights and basic facilities that are
associated with employees at workplace during working hours. This act also state the
minimum wage that to be paid by company to its worker and healthy working conditions
that to be provided by manager. Equal Pay Act: As per this Act, the employer is liable to make same payment to
individuals performing same kind of job in company. This will help the employees to get
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fair remuneration and positive environment at workplace which also helps in increasing
morale of the workers (McWilliams, and Siegel, 2011). Thus the Equal Pay Act should
also be followed by the manager of ALDI in order to encourage their employees. Employee Discrimination Act: This Act states that employer cannot discriminate their
workers on the basis of their colour, culture, age, religion, gender and status. The
manager should need to treat their employees with full of dignity without behaving any
biased. It will help in improving the satisfaction level of workers through which they can
perform better. And if any situation arises then it will create negative impact on the
performance of employees as well as company. Minimum Wage Act: This act states that the employer is liable to pay certain specified
amount to their workers as per the guidance of the government. Otherwise the
government take some action against company if violation of this Act is founded. This
act helps the employees to ensure that certain amount they will definitely get in return of
their work so that they can fulfil their basic needs of life such as food, shelter and cloth. Working Time Directive Act: This act states the working hours of an employee.
Therefore as per this act, an employee is liable to work minimum hours of working in
order to get legal existence of his employment. As per this an employee is liable to work
at least 48hours per week and can work more than 48hours also on his own will. Worker Disability Discrimination Act: This act state that the employer cannot
differentiate their workers on the basis of disability(Carter, and Liane Easton,2011). An
employee who is disable has right to get equal treatment relating to the services and basic
facilities from the employer. This will help the disable person to work without facing any
biased situation which also helps in increasing morale and feel motivated.
 Employee Relation Act: This act states that the employer should need to put their efforts
to communicate and coordinate with the employees in order to maintain better relations
with them. This will help the employer to receive support and commitment from the
employees so that employer ensured about growth and success of an organisation. Fair
remuneration paid to the workers which helps in increasing satisfaction and efficiency
level of employees also establishes better relations between employer and employees.
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All these are the main factors of employment legislation which need to be consider by the
manager while formulation of policies related with employees. All this employment legislations
Acts should affect the decision making process made by the managers related with workers.
P7 Application of human resource practices in a work related context
Expanding business through out the world brings many difficulties and issues for the
organisation. Therefore if ALDI wants to expand their business through opening a new branch
worldwide they have to ready with some action plan in order to resolve all future
issues(Hammer, and et. al., 2011). Such issues may be related with manpower, product quality
etc. Therefore HRM practices should need to be implemented by company in order to resolve
following issues: Manpower planning: Before opening new branch the company should need to predict
that how many employees are required to execute business operations. And accordingly
ALDI manager should hire employees on the basis of requirement. Training and Development: In order to enhance the performance of the employees the
manager should need to conduct training sessions and development programs through
which they can complete their tasks within time period in effective and efficient manner.
Such training sessions and development programs enable the worker to find better
solution of business problems. Create vision and mission: It is essential for the company and its members to know
about their targets that can be achieved in future. Manager need to define objectives
clearly and provide guidance and direction to their employees so that they can perform
accordingly.
 Maintain quality of products: As ALDI is one of the leading grocery brand based
company in UK therefore the main issue the company faces is related with quality of
product. The company should need to provide guidance and direction to their skilled
employees so that they can produce standard quality of products for their customers.
Therefore manager of ALDI should need to apply HRM practices in order to eliminate above
issues and satisfy their customers.
There is required to develop job specification and need to consider all relevant facts to recruit
right candidate for right job at right time.
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