Human Resource Management Report: HRM Practices in Aldi

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Aldi, a multinational grocery retailer. It begins with an introduction to HRM functions and their importance, followed by an examination of Aldi's recruitment and selection approaches, comparing the strengths and weaknesses of internal and external recruitment. The report then delves into the advantages of various HRM practices, such as conflict resolution, training and development, employee engagement, compensation, and performance appraisal, for both the employer and employees. It evaluates the effectiveness of these practices and their impact on organizational performance. The report further analyzes the significance of employee relations and explores key elements of employment legislation, discussing their influence on HRM decision-making. Finally, it illustrates the application of HRM practices in a work-related context, drawing conclusions on the overall effectiveness of Aldi's HRM strategies.

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Functions and purpose of HRM............................................................................................1
P2 The strengths and weakness of different approaches to recruitment and selection...............2
TASK 2............................................................................................................................................4
P3. Advantages of different HRM practices in Aldi for both the employer and employee........4
P4. Evaluate the effectiveness of different HRM practices .......................................................5
TASK 3............................................................................................................................................6
P5. Analyse the importance of employee relations ....................................................................6
P6. Key elements of employment legislation and the impact it has upon HRM decision-
making ........................................................................................................................................7
TASK 4 ...........................................................................................................................................8
P7.Illustrate the application of HRM practices in a work related context..................................8
CONCLUSION................................................................................................................................9
REFERENCES ............................................................................................................................10

INTRODUCTION
Human resource management is a discipline which is concerned with the planning,
organising, motivating and managing people of an organisation. It is one of the most important
department within an organisation that deals with dynamic force that is impacted by internal and
external factors. To achieve success in the market and attain all goals, company needs to have a
efficient and effective workforce management (Alfes and et. al.,2013). If the human resource is
satisfied and is guided in a proper manner than it will assist organisation in gaining competitive
advantage. Their motivation will also boost their efficiency and effectiveness. This report is
based on ALDI, which is a multinational grocery merchandise retailer. It is one of the biggest
retail company in the world. In this project, various issues related to human resource will be
discussed. Also, the approaches employed by employers will also be stated while understanding
the importance of employee relations.
TASK 1
P1. Functions and purpose of HRM
There are different types of functions that are performed by human resource department
within ALDI. These functions are important as they assist in workforce planning and resourcing
(Batt and Colvin,2011). It is very essential for company to ensure that all people are placed on
right jobs at right time. Some of the functions performed by HR department is as follows: Planning: The human resource departments is responsible with preparing a plan that will
state about how many people will be required and ways in which they will be hired. It
also plans for training and management of existing individuals within organisation. Staffing and organising: After planning, managers recruit and select people as to fill up
the vacant post within organisation. Also, they are responsible with organising all the
individuals who are staffed as per their skills and job profiles.
 Employee development: This is the task which is important as to maintain and enhance
motivation as well as interest of employee towards work and organisation (Boxall and
Purcell, 2012). The HR manager has to develop different types of programmes as to
ensure that employees are properly trained and their skills match the job profiles.
Purpose of HRM
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 Internal customer management: The HR is responsible with making better polices
which attract more people from outside world into organisation. Matrices: The HR has to keep on interacting with every employee as to ensure that their
issues are resolved which will boost their efficiency and effectiveness. Employee relation: This is another purpose behind creation of HRM. It is responsible
with maintaining proper level of communication and employee relations (Bratton and
Gold,2012). It also creates awareness between employees about different changes that
will be taking place in organisation.
 Policy and procedures: There are different laws and legislation related to employment of
human resource within organisation. They have to be followed by company as to ensure
that they provide people with all facilities as stated in legal law.
The human resource department in ALDI has to do all the task so that it can achieve its
goals and objectives. Today, it is very difficult to manage human resources but with proper
policies and procedures, organisation can direct them towards a path that leads to achievement of
goals (Brewster and Hegewisch,2017). The human resource managers need to have knowledge
of all the legislation that are enacted by government, so that company do not run into any legal
issue.
P2 The strengths and weakness of different approaches to recruitment and selection
There are various approaches that are used by ALDI in recruitment and selection of
employees. Managers need to analyse various requirements and according to them, he needs to
derive strategy and approach as to recruit people who are capable to perform required task with
efficiency and effectiveness. Following are the approaches which are used by managers to recruit
people into organisation:
Internal recruitment: This is a approach which assist managers in filling up a job by
promoting or transferring individual within an organisation (Chelladurai and Kerwin,2017). It is
a very cost efficient and effective method as it boosts employee motivation and also his
performance. It is usually used when there is post that required same skill set that exist within the
employees of organisation. Usually when there is a new type of job, Managers tend to opt for
external recruitment and selection method. There are certain advantages and disadvantage of this
method:
Advantages Disadvantage
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ALDI will have many benefits of this method.
The first advantage is that it boosts employee
morale which leads to enhancement in his
working and productivity.
It presents a new challenge in front of
employee which increases his interest in the
job.
It also assist in motivating other employees for
working and learning so that they too achieve
success.
There are different disadvantages of this
methods for ALDI.
The first one is, there is no new innovation in
organisation.
People who are not promoted feel very low or
demotivated.
This approach might even cause conflicts with
organisation.
Sources: Present employees, Referrals, Former workers, Past applications.
External recruitment: This is an approach that is used by managers in ALDI when there
is new type of job that has been created or in a situation where they need a person who have
different capabilities than existing employees (Daley,2012). External recruitment presents a pool
of new talent that will boost creativity and innovation within organisation. It is a method that
brings in fresh blood that leads others to work even more efficiently and learn new things. There
are certain advantages and disadvantages of this approach:
Advantages Disadvantage
The benefits of this approach for ALDI is as
follows:
It brings in fresh mind into organisation that
boost innovation and creativity.
These people are more suitable for job as their
capability match requirements.
Managers have huge talent pool from which
they can select best.
There are few weaknesses of this approach that
have to managed by managers:
Managers do not have any specified way to
measure their past experience and performance
level.
Also, individuals are recruited from external
sources has to be given proper training and all
information regarding their job and company
has to be given (Flamholtz,2012). So that they
do not have any confusion in their mind
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regarding any policy and procedure.
Sources: Employee exchanges, Advertisements, Agencies, Associations, Campus recruitment.
Deputation.
TASK 2
P3. Advantages of different HRM practices in ALDI for both the employer and employee
There are many advantages of practices adopted by human resource department of
company. In ALDI, workforce managers roles and responsibilities are not just limited to the
recruitment and selection, but he has to perform other activities also which will boost employee
engagement and relation. The practices include functions such as payroll, hiring and training and
development (Guest,2011). These activities benefit all the employers and employee which
ultimately assist organisation in achieving its goals and objectives. Following are the activities
and benefits: Conflict Resolution: This is an activity which assist organisation in maintaining harmony
between management and employees. It also resolves various issues that exist between
workers. There are different types of conflicts which takes place in company. These are
responsible for lowering performance and productivity. They also minimise co-ordination
between workers and department which hampers operational effectiveness of
organisation. This is why this activity is important. Training and development: This is another important aspect where HR department look
after needs of individual and after proper assessment he develops programmes which will
be used for training employees and developing their skills, abilities and knowledge. Employee engagement and relations: There are various offline and online events
organised by HR department of ALDI as to ensure that interaction between employees
and organisation is at par (Jabbour and et. al.,2013). Basically, the aim of this activity is
that it aids company in improving interaction with different employees and know their
issues and problems which are solved later on. Compensation: Every one working in any organisation has one prime motive and that is
to earn money as per their work (Hendry,2012). A person aims to gain financial
independence after working in a company and to fulfil that HR department has to ensure
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that all job profiles are at par with government regulations and they are giving right
amount of salary to workers.
 Performance Appraisal: The human resource managers have a very important task
which needs to be conducted as to analyse productivity of employees working in an
organisation. ALDI have a well-established department to look after process of appraisal
which is concerned with evaluation of employee’s performance in a set period of time.
These activities are beneficial for employees too:
 They are able to learn more and improve their skill set.
 They are able to identify opportunities in their life as these activities assist in personal as
well as professional development.
 A positive environment is established as every process is at par with the laws and
legislations.
 It enhances efficiency and effectiveness as their motivation levels also improves.
 It makes them flexible which means they will be ready to face uncertainties while using
critical thinking and innovative approach.
These are the benefits of various practices of human resource department and its
activities.
P4. Evaluate the effectiveness of different HRM practices
HRM practices impact organisation and its effectiveness to a great extent. They affect
revenues and productivity of company. Human resource department has a prime task of placing
right candidate on right job at right time, so that all desired goals and objectives can be achieved
(Kehoe and Wright,2013). If employees are not allotted task as per their capability then they
won’t be able to perform in a proper manner. ALDI is constantly working to boost human
resource management practices within organisation as to enhance their effectiveness and
efficiency that will assist in gaining competitive advantage. These practices include, employee
engagement, compensation, training and development, performance appraisal, rewards, etc.
Basically, HR practices are linked with different results, such as productivity, quality, turnover,
market value and profitability.
The Human resource department assist ALDI in aligning their goals with individual
objectives which leads to successful achievement of goals (Messersmith and et. al.,2011). There
are different ways by which the effectiveness of various practices can be evaluated, such as-
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Auditing and appraisal. This is a technique which is used by ALDI as to know whether its HR
department is working effectively or not. There are various aspects which are covered but the
prime assessment is done on the basis of employee feedback regarding various practices and its
impact on their performance.
As mentioned in previous task there are various activities which are undertaken by
Human resource department such as conflict resolution, training and development compensation
and employee engagement which are important for overall organisational functioning. There are
various issues which are addressed with the aid of these methods (Moutinho,2011). By proper
problem solving and training, HR department aims to improve co-ordination and cooperation
between employees and management. Also, this is done to boost their productivity and
effectiveness. ALDI aims to introduce all of its employees to new methods and technology so
that they understand how they function and they can use them in improving their working.
Concluding this, it can be said that ALDI needs to keep on auditing and assessing the
practices of HR as to ensure that they are at par with current legislation and policies. Also, this is
important activity, as this will assist managers in understanding different aspect which are
required to be updated and implemented with organisation (Ployhart and Moliterno,2011). The
laws regarding salary and wages is also an important aspect which needs to be analysed and
integrated into system so that fair wages can be given to all.
TASK 3
P5. Analyse the importance of employee relations
Employee relations is a very important aspect of an organisation which needs to be
maintained by managers and employees. The leaders in organisation are working in a direction
that will lead them towards the achievement of desired level of efficient and motivation. There
are many reasons because of which employee relation take a hit and whole environment within
organisation gets polluted (Renwick, Redman and Maguire,2013). The HR department in ALDI
has to ensure that they are able to maintain right level of co-ordination and interaction between
employees and management so that all issues are addressed in a proper time.
Good employee relations tend to boost workers ability to perform well and provide good
customer services which boost their satisfaction level. Strong relationship also assists in
developing healthy environment within organisation that is necessary for ensuring higher level of
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productivity and efficiency. There are different decisions which need to be taken by HR manager
for fulfilling his roles and responsibilities. Strong employee relationship will assist organisation
in formulating and implementing strategies in a proper manner. Workers will be boosted to state
their ideas to their seniors which will improve innovation and creativity in achieving targets.
ALDI strategies aim to boost employee engagement and relationship which will helps in
building a capable and effective workforce for organisation. This also reduces confusion that
exist in the mind of employee regarding strategies and polices. Following are few benefits to the
ALDI which will be there due to good employee relations: Higher Productivity: When employees are highly motivated and their queries are sorted
out, they tend to perform in a better and effective manner which is good organisation
(Storey, 2014). They perform in an efficiently manner which reduces cost of an activity
and increase margin of profit. It also boosts retain ship of employee within organisation. Employees Loyalty: Motivation of employee is very important as it enhances their loyalty
towards organisation. It is also responsible for reducing higher rate of employee turnover
which hamper company operational capability. Firm do not have to recruit more people
again and again as the employee turnover rate is very low. Team building and working: Employees tend to build and work in teams when their co-
ordination is at par with requirements. Teams assist organisation in achieving all their
targets and goals in a efficient and effective way. Task tends to be completed in a set
period of time as more people are involved.
 Competitive advantage: Employee relation boost motivation of workers and also co-
ordination between management and employees (Kehoe and Wright,2013). This
motivation makes them in working together in a efficient and effective manner which
leads organisation in gaining competitive advantage over its competitors.
The human resource department has to ensure that all policies are employee friendly
while they aim to fulfil the objectives and goals of organisation.
P6. Key elements of employment legislation and the impact it has upon HRM decision- making
There are different laws which are enacted by government to protect employees and
employers against any circumstances. Legislations which are used ALDI are as follows:
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 Equality Act 2010: It states that no person should be discriminated at the workplace and
everyone should be treated as per standards. This act has replaced different laws which
stated about different aspects on whose basis discrimination was done. Health and safety act 1974: It is an act which states that employer needs to make
necessary arrangement as to protect employees from any hazardous situation. It also
states that employer need to aware employees regarding various measures that has been
taken in regard to safety. Equal pay Act 1970: It states that all employee should be given a minimum level of pay
per hour as to ensure their survival and development (Messersmith and et. al.,2011). Also
it focused on reducing gap that exist between women and men salary and wages.
 RIDDOR 1995: ALDI managers have to report on all disease and disability on work
place that take place. There is requirement of proper reporting as to inform authorities so
that they can assist in controlling situation.
These laws have impact of human resource activities and budgets. While preparing
strategies, managers have to look after various legislations as to ensure that they do not violate
any of them and company do not run in trouble. Also, they provide a platform to develop policies
and procedures which are at par with standards.
TASK 4
P7. Illustrate the application of HRM practices in a work-related context
There are different types of human resource practices that are implemented in ALDI .
These activities are in context of training and development, performance appraisal, motivation,
learning events, payroll, etc. ALDI is on the process of expanding its resources even more so that
it can gain more market share and also profitability. For this process, company needs to hire
more people and invest more financial as well as non-financial resources into business.
They need to prepare a strategy for recruiting people, so that desired goal can be
achieved. The first thing that needs to be done is job analysis and evaluation so that specified
information can be obtained. After this, they need to float information regarding vacancy on their
own site and other job portals as to gain attention of people (Wright and McMahan,2011). Once
HR manager have pool of applicants, he can shortlist and interview them as well as select best
candidate for job.
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Whenever there is a requirement of workforce within organisation, managers need to
inform HR department so that they can process requirement and fill vacant post. Also, they are
required to provide training and development opportunities to new as well as existing employees
so that they can be trained to face future uncertainties and achieved goals and objectives. Every
activity conducted by human resource manager has to be aimed at increasing employee
productivity as well as efficiency and effectiveness which will assist organisation in gaining
competitive advantage over its competitors.
CONCLUSION
In this report, various aspects of human resource management were mentioned. It assists
ALDI in ways that it leads to achievement of goals. The organisation has well established goals
and objectives which has to be achieved by employees. For this task companies wants human
resource department which will use different methods and techniques as to boost organisational
effectiveness via improving employee’s performance. The HRM polices need to be aimed at
development of human resource. So that they can be motivated. Also, the managers have to
follow all laws and legislation so that a standardised environment can be created which focuses
on innovation and creativity. HR manager has to ensure that there is a positive environment
within organisation so that employee performs as per requirement.
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REFERENCES
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Online
Goals of Human Resource Management. 2017. [Online]. Available
Through:<http://smallbusiness.chron.com/goals-human-resource-management-
21317.html >. [Accessed on 14th July 2017].
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