Human Resource Management: Analysis of HRM Practices at ALDI

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on the context of ALDI, a leading retail company. The report begins by explaining the core purposes and functions of HRM, including cost management, training and development, and performance evaluation. It then delves into the strengths and weaknesses of different recruitment and selection approaches, differentiating between internal and external recruitment methods. The report further explores the benefits of HRM for both employees and employers, highlighting the roles of conflict resolution, training, and employee relations. Additionally, the report examines various HRM practices aimed at enhancing organizational profit and productivity, such as effective recruitment and selection processes. The importance of employee relations and the impact of employment legislation on HRM decision-making are also discussed. Finally, the report applies HRM practices within a work-related context, using specific examples to illustrate key concepts and provide practical insights into HRM within the retail industry. The report concludes by summarizing the key findings and implications of the research, offering valuable insights into the effective management of human resources.

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
P1. Explaining the purpose and functions of HRM....................................................................1
P2. Strengths and weaknesses of different recruitment and selection approaches......................3
TASK 2............................................................................................................................................5
P3. Benefits of HRM for employees and employers of company...............................................5
P4. Different HRM practices in terms of raising organisation profit and productivity..............6
TASK 3............................................................................................................................................7
P5 Importance of employee relations in respect of influencing HRM decision making............7
P6. Key elements of employment legislation and impacts on HRM decision making...............9
TASK 4..........................................................................................................................................10
P7 Application of HRM practices in a work related context, using specific example..............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
In current scenario, Human resource management is an effective concept which helps in
management of human resource in the effective manner. Furthermore, HR department of the
organisation assists to improve working performance and involvement of employees towards
their works. This assignment will be discussing about major purposes and functions of HRM in
context of ALDI company (Armstrong and Taylor, 2014). ALDI is one of the leading and largest
retail store of UK, which is dealing with all kind of home products and goods. Additionally, it
will determining and identifying strengths and weaknesses of recruitment and selection process.
As well as major benefits of HRM for employees and employers will be demonstrated in a
appropriate way. In this light, several kind of HRM practices will be elaborating, which will
helps to improve production level and profitability of cited organisation.
TASK 1
P1. Explaining the purpose and functions of HRM
Human resource management plays significant role in every organisation, because it aids
to manage and control business resources in the effective and efficient manner. In this light, HR
manager of the cited organisation focuses on to conduction of training and development
programmes and activities for employees, so they can learn how they should complete the task as
well as how they will achieve goals and objectives in minimum time period (Boxall and Purcell,
2011). Apart from this, HR Manager regularly monitor and analyse actual working performance
and involvement of employees. Because it directly impacts on company and their working
environment. Furthermore, it has some purposes and functions which are explained below:
Purposes Explanation
Manage cost of
personnel
One of the major and important purpose of HRM is managing and
controlling business activities and operations in appropriate manner as
well as reduction in cost of personnel. Due to, before investing fund in
employees development, must be determine their actual working
quality of them. After that, as per the requirements and demand must
conduct several useful programmes and activities for them so they can
learn something new and innovative things for effectively completing
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the tasks.
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Training and
development
Training and development is also an aspect of HRM. It assist in
improving work performance and quality of employees. In which
identify, which one strategy must be adopt and choose for completing
the tasks in minimum time period within better outcomes. Training and
development programmes are conducted by the HR manager for
employees as per the requirements and demand.
Evaluation of
performance
HR department concentrate on to adopt smart and new techniques in
organisation for analysing and evaluating actual working quality and
performance of employees. Proper evaluation assist to define actual
working capabilities and skills as well as it helps to take corrective
action regarding employees presentation.
Functions Explanation
Recruitment and
selection
It is a continues process, it helps in finding out appropriate and
applicable candidates for select job profile in the cited organisation.
This procedure includes several tests and exams, with the help of them
it will be easy to identify communication skills, capabilities, abilities,
knowledge, learning power, personality and so more. Recruitment is a
positive process but selection procedure sometimes negatively impacts
on candidates because in which selected and suitable candidates are
going for final round.
Orientation Orientation programmes are conducted by the HR manager of firm for
employees. by these activities new employees can easily interact with
their seniors and their peers. It is helpful for new employees because it
assist in increase mutual understanding.
Managing and
directing
Another function of HRM is to manage and control human resources as
well as business operations in effective manner. Furthermore, with the
help of HRM, can get proper utilisation employees of the firm as well
as achieve goals and objectives in minimum time period.
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P2. Strengths and weaknesses of different recruitment and selection approaches
Recruitment is a process which assist to find out appropriate candidates and selecting
them for selected job profile in the cited organisation. Human resource manager of ALDI has
some skills and capabilities, with the help of them they can easily identify and analyse actual
working abilities and performance of the candidates. HR manager can use several kind of
recruitment sources for recruiting candidates for the ALDI. Apart from this, in the recruitment
process every person can participate but in the selection procedure applicable and selected
candidates take chance for final round as well as sometimes it has negative impacts on person
(Brewster and Hegewisch, 2017).
Illustration 1: Recruitment and selection
(Source- Recruitment And Selection – The Most Important HR Function, 2016)
Strengths and limitation of internal recruitment and selection
In the context of internal sources, HR manager of ALDI wants to hire applicable and
knowledgeable persons for selected vacancy. Internal hiring concept includes several techniques
and methods but also has some strengths and weaknesses which are as follows:
 Transfer: It defines, still existing employees in the organisation, they will shift from one
designation to another within some changes in their duties and responsibilities.
 Promotion: It elaborates, upward movements in the designation of the employees. Also it
can be explained as existing workers of the firm are promoted on the upper level in the
business. This directly changes powers, rights, duties, responsibilities and so more
(Recruitment And Selection – The Most Important HR Function, 2016).
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 Employee referrals: Sometimes company can use employees references for hiring new
candidates in the organisation. Result and outcome of this sources can be either positive
or negative. Basically, employers can take referral from family, friends, colleagues and so
more.
Strengths
 With the help of internal sources of recruitment, effectively will increase motivation and
confidence level of employees.
 Basically, its time managing and cost saving procedure for ALDI.
 These recruitment and selection sources aids to increase positive competition between
employees of the firm.
Weaknesses
 Sometimes, internal sources creates conflicts and obstacles among employees.
 It provide limited opportunities to employees, so they doest not have any chances to
improve their skills and learn something new things in their life.
 It develops bias and discrimination between exiting employees of the business.
External recruitment and selection
It refers to, hiring, selecting and appointing new candidates in the organisation while
using external sources (Guest, 2011). Basically, it includes pool of vacancies, campus placement
form colleges, e-recruitment, advertising and consultants etc. All these sources have some
strengths and weaknesses, which represent their importance in the effective manner.
Strengths
 External recruitment and selection sources gives several opportunities to fresher.
 The management of the ALDI can adopt new and smart ideas for recruiting new
candidates in their organisation.
 It helps to reduce bias and discrimination nature.
Weaknesses
 External recruitment and selection process is more expensive and time consuming as
compare with internal sources.
 There are need to provide proper training to new candidates, who appointed by external
sources.
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TASK 2
P3. Benefits of HRM for employees and employers of company
Human resource management plays significant role in every organisation, because it
helps to manage and control all over business activities and operations in the effective manner.
Furthermore, HR manager of the firm regularly monitoring actual working performance and
involvement of the firm (Jiang and et. al., 2012). If there are require to conduct nay kind of
motivation activities, programmes, training and development function etc. then must be conduct
for employees. Because it helps to improve their moral and motivation level towards their works.
Apart from this, with the help of them employees of the business will impressively achieve
organisation targets in minimum time period. Moreover, human resource management having
some benefits for employees and employers of the organisation, which can be explain under
follows:
 Conflict and obstacles resolution: Human resource management assist to resolve
conflicts and problems in the effective manner. Because issues and negative things in the
organisation as well as in their working environment directly impacts on working
performance and quality of work. Due to, HRM Plays important role in every
organisation (Wright and McMahan, 2011).
 Training and development: Human resource management of the organisation assist to
manage and control human resources in the effective and efficient manner. Because
proper management system assist to improve working performance and involvement of
employees in company. Due to, HR manager of the firm concentrate on to provide proper
training to every workers or employees towards their works. Because with the help of
this, they can learn and improve their capabilities and skills in the effective manner.
Better training and development programmes and activities helps to improve motivation
and confidence level of employees regarding their works with the help of them, they will
systematically perform their tasks and achieve goals and objectives in the impressive
manner (Lengnick-Hall, Beck and Lengnick-Hall, 2011).
 Employment relationship: With the help of human resource management improve
healthy relationship within employees of the organisation. Furthermore, healthy
relationship between peers and workers impacts on their working quality either positive
or negative in nature. Apart from this, it assist to increase employment relationship in the
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effective manner. Due to, improve unity and mutual understanding among them. With the
help of this, employees of ALDI significant ally perform their tasks.
 Information research: HR manager of the organisation concentrate on to find out
something new and innovative things from external market place. Due to, employers of
the firm conduct research or survey in the external market place. With the help of this,
systematically identify current market trend as well as customer's demand. In this light,
research is one of the best method for increasing production and profitability of the firm.
Apart from this, it is very important for every organisation, must conduct survey and
research in the market place for identifying and determining actual condition and demand
of customers, because at this time most of the customers wants something new and
innovative things from external market place.
P4. Different HRM practices in terms of raising organisation profit and productivity
Human resource management plays significant role in every organisation, because it
assist to manage and control all human resources. Due to, they will systematically perform their
tasks and achieve goals and objectives in minimum time period. It includes some effective HRM
practices, which very important for getting successes in competitive market place (CHUANG
and Liao, 2010).
 Recruitment and selection: It is a continues process, which assist to hire and appoint
new and applicable candidates in the organisation. Therefore, recruitment is a positive
procedure of find out of new persons. Because in which all persons are easily participate,
there has no any rules and regulations for them. Apart from this, selection is an negative
process of appointing new candidates in the organisation, because in this stage not every
candidates has equal chances and rights to participate final selection or interview. In this
process, only some selected and applicable persons take chances for final interview. In
this addition, recruitment and selection process is plays important role because with the
help of this significantly find out applicable and suitable person in the company then easy
to achieve goals and objectives of the firm (Bloom and Van Reenen, 2011).
 Work life balance: HR department of ALDI focuses on to implement negotiable and
suitable time schedule for all over workers. So they will impressively complete that task
within proper utilisation of resources and time. Proper management and better time
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scheduling assist to manage and control personal and professional life of employees. It
helps to improve their motivation and confidence level towards their works.
 Training and development: It is one of the important function of HRM as well as it is
practice. With the help of this significantly improve learning skills and capabilities of the
employees. Due to, HR Manager of the firm regular monitoring actual working
performance and quality of workers as well as their involvement in their works. With the
help of proper training and development, employees of the firm can achieve their long
and short term goals and objectives in the effective manner. In this light, workers
performance and involvement plays significant role for every organisation, because it
impacts on their profitability and production level.
 Compensation: Compensation is one of the important practice of HRM, it helps to
improve moral, confidence and motivation level of employees towards their organisation
as well as their works. With the help of this HRM practice, employees will significantly
play their task and achieve their decided goals and objectives in the impressive manner.
Apart from this, HRM practices plays important role in every organisation because it
helps to manage and control business activities and operations. With the help of this
improve production and profitability in a appropriate way (Kehoe and Wright, 2013).
TASK 3
P5 Importance of employee relations in respect of influencing HRM decision making
In the every organisation must be implement effective and smart management system for
managing and controlling business activities and operations in the systematic manner. Healthy
working environment in the organisation, assists to improve production and profitability. Further,
HR department of ALDI plays an important role, which maintaining human resources and
conducting several programmes and activities in the firm for enhancing their working
performance and skills in the effective manner (Vörösmarty and et. al., 2010). Due to, they can
perform their tasks as well as achieve their long and short term goals and objectives. Apart from
this, employee relation and their communication directly impacts on organisation and their
working environment. Due to, it is important to build an healthy environment inside of the
company as well as should conduct some motivational and smart activities for employees. So,
every workers can easy to interact with each other. Healthy employment relations assist to
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improve mutual understanding between workers. Due to, they will perform their tasks in unity.
Employee relations aids to take corrective and appropriate decision in critical situation of the
business firm as well as it helps to reduce conflicts and problems from external market place.
Further, employment relationship has some importance, which can explain under follows:
 Productivity: Every company's productivity depends on employee relationship, due to it
is important to be maintain mutual understanding and unity among employee of the firm
(London and Hall, 2011). So they can perform their operations in the effective and
efficient manner. While employees of the company, perform their tasks in healthy
environment, so consequently improve their moral and motivation level towards their
works.
 Reduction of conflicts and issues: Healthy employees relationship in the organisation
plays a vital function, because it helps to reduce conflicts and issues from company. With
the help of this, workers of the enterprise perform their tasks in minimum time period as
well as achieve their long and short term goals and objectives. Conflicts and obstacles
directly impacts on organisation and their production level of products and goods. Due to,
it is important for HR Manager of the firm must try to reduce and resolve them in
minimum time period as well as should try to develop healthy working environment in
the organisation ( Bourne and et. al., 2013).
 Motivating employees: Employment relationship assist to improve motivation and
confidence level of employees. With the help of them, they will significantly perform
their decided task and attain targets. By the HR manager must be conduct some effective
and appropriate motivational activities and programmes for employees. Motivation and
confidence level of employees positively impacts on their working performance and
involvement in their works. Due to, employees can significantly concentrate on their
tasks and their decided targets. Apart from this, employment relationship assist to
improve working performance and quality of works as well as it helps to take corrective
action towards organisation. Moreover, it is necessary for HR department of the firm
should maintain and develop healthy environment inside of the company. So employees
will significantly complete their operations. Healthy and impressive employment relation
helps to improve production and profitability as well as it aids to build an brand image in
external market place.
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