Human Resource Management Report: Aldi's HRM Strategies and Analysis

This report delves into the core functions of Human Resource Management (HRM) within the context of Aldi, a large grocery store chain. It examines the practical application of HRM principles, including the development of policies, staffing strategies, compensation and benefits management, and employee retention and training programs. The report analyzes the strengths and weaknesses of Aldi's recruitment and selection processes, assessing their impact on talent acquisition and organizational performance. It further explores the advantages of HRM for both employees and employers, focusing on how HRM practices can enhance employee motivation, foster innovation, and contribute to increased organizational profit and productivity. The analysis extends to the importance of employees in influencing HRM decision-making and the impact of employment legislation on HRM practices. Finally, the report evaluates HRM practices in the context of the work environment. The report provides a comprehensive overview of HRM in action, providing insights into the strategies and practices that contribute to organizational success and employee satisfaction.

Human resource
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions of HRM which applicable in planning.............................................................1
P2 Evaluate strength and weakness of recruitment and selection process.............................3
TASK 2............................................................................................................................................3
P3 Advantages of HRM for both employee and employers...................................................3
P4 HRM practices for increase organisational profit and productivity..................................5
TASK 3............................................................................................................................................6
P5 Analyse the importance of employee which influence HRM decision making................6
P6 Element of employment legislation and impact of HRM decision making......................7
TASK 4............................................................................................................................................8
P7 Evaluate HRM practices in work location........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource management is the backbone of an organisation. It helps to maximise the
performance of an employees that control and manage the effective work of a company. The
human resource department is an important part of the company which coordinate all activities
and functions of organisation. The managers are responsible for recruitment, promotions,
transfers and termination of a particular workers of an organisation. It provides benefits and
compensation to their employees in an effective manner. The company's manager duty is to
handle the work of employees and their subordinates (Alfes and et. al., 2013). It helps in
increasing the prod and profitability of the company. Aldi is one of the largest grocery store in
UK. It has approx 7,000 stores over 70 countries. The company is founded in 1913. Aldi is
largest private company and its shareholders are customers, employees, suppliers and
communities. The purpose of this report is to understand the function of HRM and also planning
towards their resourcing in an organisation. In this report the company analyse the strength and
weaknesses of recruitment and selection process in company. It also help to provides benefits
from both employee and employers. The evaluation of human resource in an effective and
efficient manner in an organisation.
TASK 1
P1 Functions of HRM which applicable in planning
Human resource management is the process that helps to perform activities such as
recruitment, training and development which improves their employees performance and also
need to satisfy customers demands and wants. It is an important factor which help to identify its
employees issues and problems and try to solve it in an effective manner. HRM helps to manage
and controls activities and functions of an organisation and participate those workers who does
perform in any activity. There are some goals and functions of HRM which discussed as under:
Development of policies- HRM helps to develop plans and policies and make rules and
regulations that achieves to target goals and objectives. It help to build image of its products in
the mind of customers (Armstrong and Taylor, 2014). Human resource management improve
such terms which are given below:
 United system
 Moral term of company
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 Discipline plan of action
Staffing- Aldi recruit that employees who have good skills and knowledge in an effective
manner. Staffing is the process which is important in every organisation like Aldi. In the
company candidate are recruit on the basis of skills and talented experience which is based on
effective manner (Bloom and Van Reenen, 2011). There are some process which maintain
staffing function in this ways:
 Staffing planning- HRM plan to recruit and design some techniques which help to attracts
large number of customers. It provides demand and wants which increase customers
volume.
 Selection- HRM selects candidates in different ways it includes interviews, tests, group
discussion, evaluation and personal face to face round interview and training and
development programmes.
 Multicultural activities- It is very important for an organisation to search that employees
who adopts different cultures in a same society.
 Final hiring- Company recruit talented workers in right position at right place.
Compensation and benefits management
HRM process manage and control the business activities or functions which are required
in the market that motivate and encourage an employees in an effective manner in Aldi. Human
resource management provides many functions to mange their workers and give some benefits
such as incentives, bonus, compensation, pension scheme etc. There are some other benefits or
compensation like health security, incentives, wages and job security.
Retention of employees- Retention describes that inspires workers and attracts towards
company plans and policies. Compensation plays an important role in retention of employees in
the Aldi. There are some situations which helps to keep workers in an effective manner such as
problem of performance, working environment and demand of employees.
Training and development- It is the process of training and development, in which
organisation gives training for new technology and techniques with an effective manner (Boxall
and Purcell, 2011). It help the workers to enhance their skills and knowledge towards the new
technology and innovative products. Training gives knowledge of new techniques and modify
their skills and performance. There are some training and development activities and functions
that are as under:
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 Training to enhance skills and knowledge
 Better communication skills
 Provides technical experience
P2 Evaluate strength and weakness of recruitment and selection process
Recruitment and selection is process which recruit talented candidates with matched
skills and experience and required in an organisation. It is an important process which analyse
different methods like interviews, written test, group discussion and other activities (Bratton and
Gold, 2012). Aldi designs and make recruitment process which helps in hiring new and capable
employees in and effective manner. There are some process which helps to maintain and control
recruitment and selection are as under:
Strength- Aldi improves the growth scenario and develop skilled in an employees that
increase sale of products in the market. It adopt new approaches which helps to build skills and
knowledge and achieve goals and objectives of the company. HRM provides innovative ideas
and process which helps to boost profit level of Aldi company. Organisation recruit those
candidate who best suitable for position at right job. It can fill vacant position which required
talented employees. The company main focus is to retain the employees who are talented and
skilled ion their work performance.
Weakness- Aldi try to adopt many approaches of recruitment and selection process but
can not achieve it and suffer from lot of losses in an organisation. HRM helps to evaluate
different methods in an effective manner that increase quality products that serve to an
individual. Some company use internal factors for recruit best talented worker but they don't
know the external environment of market. Company fail to retain more employees because of
their plans and policies schemes.
TASK 2
P3 Advantages of HRM for both employee and employers
Human resource management helps to innovate new products that serves to their target
customers which increases its sales in an effective manner (Buller and McEvoy, 2012). They
control and manages the management activities which are necessary to organise by manager.
There are some practices which help to perform business operations and help to reach with the
target goals and objectives. Human resource management help to make strong relationship
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between employee and employers of Aldi company. Thee are many practices which controlled
by HRM are as under:
 Motivate employees- HRM practices should be control in an organisation. The manager
can motivate and inspires workers in a positive manner. It helps to perform good work in
an effectively and efficiency way (Guest, 2011). Aldi develop its marketing plans and
policies which attracts more employees.
 Training to workers- Human resource management control and manages activities of
Aldi company that helps to identify needs and wants of an organisation. There are some
practices wh8ich help to improves employees performance and enhance skills and
knowledge in an effective manner. They have to maintain abilities and capabilities which
increase employees work.
 Innovation in employees proposal- It is important to perform better in an organisation
which achieve goals and objectives in an effective manner. There are practices which
helps to produce and distribute products in lower prices to their customers. It provides
reputation and goodwill that is necessary to manage in the market place. This help to
innovate new goods and serve in the segmented market area.
Benefits to employees
There are some benefits to employees in an organisation which help to make decision ,
build new team or group, helps to perform better activities or functions and maintain marketing
strategies of the company. It helps to know the workers needs and demands that helps to attracts
new employees with an organisation.
 Build new team- HRM plays important role in an organisation to achieve target goals
and objectives in an effective manner. It help to build new team that provides new ideas,
strategies and plans of Aldi. They help in designing suitable activities and functions
which gain performance in an effective manner (Han, Chiang and Chang, 2010). There
are some elements which build team and new employees in an organisation.
 Better performance of employees- Human resource management is essential part of an
organisation. It help to identify laws and policies which manage internal and external
environment. Organisation can work smooth and also evaluate performance of an
employees. HRM develop all activities which perform better in the environment. They
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help to perform work in a better way in an effective manner. Aldi's employee build strong
relation with their employers in an organisation.
 Helps in decision making process- An organisation manages some roles and
responsibilities which identify data and information of a particular employees wh8ich are
needed by manager. It helps to communicate with top management of the company.
HRM help to provides some power to an employees which help in decision making
process in an effective manner (Huselid and Becker, 2011). Hence, Aldi help to make
decision to their employees and build marketing strategies in the future and current
market. It help to enhance workers performance level in an organisation. The company
provides power and authorities which help to identify activities and functions.
P4 HRM practices for increase organisational profit and productivity
The main purpose of Aldi is to gain maximum profit that help to achieve objectives of
long term. It is difficult to survive in the market without any capital. An organisation help to
make strategic planning and development which operate large profit and provides benefit to their
customers for offer discounted products. The aim of HRM is provide management practices
which help to give extra products or services to their customers in minimum price.
All training and development activities of Aldi organised by human resource
management and they focus on provides best services that enhance the employees skills and
knowledge in an organisation. There are some practices which help to produce quality products
and make best suitable goods to their customers and earn profit. Aldi company's managers and
leaders provides practices which help in enhancing HRM functions. It provides maximum profit
to an organisation in developing resources. The company need to motivate and inspire the
employees and employers which help to get more profit and expand their business in large
marketplace.
The human resource management influence their employees to done their work in an
effective manner and complete task with producing quality products to their customers (Jiang
and et. al., 2012). HRM help to motivate and encourage their workers to enhance skills and
knowledge and provides best products or services to the customers. They motivate to being loyal
and honest towards the company. Aldi need to enhance HRM activities and functions that help to
achieve goals and objectives of an organisation. The company need human resources
management which help to fulfil needs and wants of employees and provides better performance
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that enhance skills. It help to make strong relationship with their customers. Aldi build image of
their products and expand the business in wide area.
TASK 3
P5 Analyse the importance of employee which influence HRM decision making
An employee is an important part of an organisation and it play role to provides growth
and development to the company. A manager and leader manage the workers activities or
functions that build to make relation with their customers in an effective manner. It necessary to
managers and team leaders that they should communicate them in a proper way which enhance
their performance and provides best result to increase profitability and productivity (Renwick,
Redman and Maguire, 2013). An employees can guide by managers and leaders that enhance
their skills and knowledge. The work of workers affects the business activities or performance of
company that develop issues and problems in success direction. It create hurdles in the path of
business goals. Market is change in each situation but they provides entry to their competitors
and serve best quality goods or services.
Aldi company recruit an employee who have complete skill and knowledge that match
with their job profile. HRM influence the decision making process and make strong relationship
with the employees and employers. The workers help to provides better solution of their
problems and issues which affects the marketing strategies and methods that used by Adli
company. There are factors that understand the employee and employers relation:
 The decision-making process help to increase the employees or staff engagement in each
activities that build strong relationship.
 Aldi provides open environment to their workers which help to understand the trouble
and issues of company that are face in each day to day activities.
 An organisation has to manage or control work profile that can build interest in the
employees for original task and they became excited to learn new thing in different way.
It help to achieves goals and objectives of an organisation in an effective manner.
 Training and development of workers to know the new technology and techniques which
adopted in an organisation (Schalk, Timmerman and Van den Heuvel, 2013). The
managers and leaders helps to guides and inspires their employees towards the goals that
enhance performance level within an organisation. BY this training, the skills and
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knowledge can increase of workers that help in satisfying the customers needs and wants
in an effective manner. Aldi adopt new technology which attracts more buyers towards
their innovative products.
 ALDI gives good performance award to their capable employee and they provides
bonus, incentives and extra income of company (Vaiman, Scullion and Collings, 2012).
The strategic planning help to enhance value and develop skills and experience that need
to fulfil the customers expectation.
ALDI manages and controls the performance of an employees which enhance expectation
of customers towards their goods or services. Training provides the knowledge of new methods
and technology to their employees for better the performance and increase goodwill of company.
An organisation need to evaluate the performance of workers. The company face many problem
or issues which create hurdle in the direction of success that achieve goals.
P6 Element of employment legislation and impact of HRM decision making
In an organisation, every employees provides some laws and legislation which must be
follows by them. This helps to maintain the discipline in the workplace. ALDI managers
provides some Acts which must be followed by an employees in an effective manner are as
under:
 Minimum payment act- This is the act which give minimum payment or wages for a
particular work. Company can not reduces the employees salary or wages in any
condition.
 Equal wage act- Equal wage act provides equal wage or salary price to each and every
employees in an organisation. Company does not partial with their workers includes age,
gender, caste, culture, race etc.
 Employee right act- It is that act which provides security and safety to the employees in
the company. An organisation provides various facilities and safety securities such as
health, job, leaves, promotions, transfers etc.
 Employee Equality act- In this act company provides equal work, task and chance to
their employees and can not favouritism according to age, gender, race, caste etc.
 Disability discrimination act- In this act, company can not provides any extra facilities
to disable person and if they do some thing this is not right according to law.
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 Working time deliver- This is act which set the time of working hour of an employee. If
any worker work more than this time period, the company must pay income for the extra
work.
TASK 4
P7 Evaluate HRM practices in work location
Human resource management is important part of an organisation. It helps to evaluate
best candidate in right job at right position. The human resource department help to evaluate
operational activities or functions which determine powers of managers. They need to evaluate
appropriate employees which suitable for job profile that achieves target goals and objectives in
an effective manner (Wright and McMahan, 2011). HR play important role to motivate and
inspire an employee which help to fulfil needs and wants of workers. The department has to
manage or maintain relationship with their workers and co-workers in effectively and efficiency
manner. A manager face many issues and problems which help to achieve desired goals and
objectives within an organisation. Human resource department is backbone of every company.
ALDI human resource department help to organise or manages their employees and
employers in an effective manner. The manager recruit those candidate who have perfect skills
and experience which fulfil customers demands and wants in a given period of time. There are
various practices which performed by ALDI managers to achieve the target objectives are as
under:
 Acquiring of talent- Recruitment is process which help to identify talented candidate
which search by manager. They help to achieve target goals and objective by giving best
performance in an effective manner within an organisation.
 Recruitment and selection process- ALDI managers search those candidates who are
best suitable for current job profile and have required skills and experience which is
necessary to reach goal.
 Resolution of issues- It is the duty of manager to solve employees issues or problems in
an effective manner (Van Solinge and Henkens, 2014). They need to eliminate errors and
reduce conflicts between employees and employers of company.
 Training and development- This is the practices which provides training to employees
when company adopt new technology and methods to improves the performance.
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 Flexibility in working- ALDI managers provides flexibility in their employees working
that help to manage and control activities.
CONCLUSION
As per above project report can be conclude that Human resource management practices
provides growth and development of an organisation. ALDI increases their income and help to
perform employees activities in an effective manner. HRM manages such activities that includes
recruitment and selection process, training and development methods that build strong
relationship with their employees and employers. There are some practices which are adopted to
run the business operations in smooth way and maintain working environment. The company has
to build image towards their products and increase status of an organisation. Hence, report
evaluates the activities or functions which help to increase employees performance.
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