Human Resource Management Report: Analyzing HRM Practices at Aldi

This report provides a comprehensive analysis of human resource management (HRM) practices, using Aldi as a case study. It begins by outlining the purpose and functions of HRM, emphasizing recruitment, selection, training, and performance management. The report then delves into different approaches to HRM, discussing the pros and cons of internal and external recruitment, as well as the selection process. It explores the benefits of HRM for both employers and employees, including training, development, effective relations, and work-life balance. Furthermore, the report examines how HRM practices can enhance profitability through an open atmosphere, team-building skills, and effective training programs. The importance of employee relations is highlighted, focusing on employee engagement and productivity. The report also covers key elements of employee legislation and provides practical examples of HRM application within Aldi, concluding with a summary of the key findings and their implications for organizational success.

Human Resource
Management
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Table of Content
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
P1 Purpose and functions of human resource management........................................................3
P2 Discuss the approaches of HRM with their pros and cons.....................................................4
P3 Benefits of HRM practice in perspective of both employer and employees..........................6
P4 Determine the effectiveness of HRM to raise profits.............................................................7
P5 Importance of employee relations..........................................................................................7
P6 Discuss elements of employee legislation..............................................................................8
P7 Discuss the application of HRM through examples...............................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Human resource is considered as an asset in an organisation as it is a broader term that
includes recruitment, selection, training, performance management and many more which
involve making planning so that goal is attained within a shorter time (Ashton, Maguire and
Spilsbury, 2016). This report is based on Aldi which is a retail chain as it deals with groceries,
food products as well as household essentials which tends to satisfy the needs and criteria of
customers across the globe. This report consists of scope and purpose of human resource
management and it consist of internal and external factor that affect HRM decision making
which raise profitability. Lastly it cover several legislations and application of HRM practice in
relation to chosen company.
Main Body
P1 Purpose and functions of human resource management
HRM is a process of management as it determine the need to recruiting the best candidate
and tends to polish their skills with apprenticeship programmes as several elements are
considered such as creativity, knowledge, talent and potential for contributing towards business
objectives (Bondar, Hsu, Pfouga and Stjepandić, 2017). The purpose of HRM is to fill the vacant
position and apart from this it performs several other functions such as compensation, appraisal,
training as it has become crucial aspect for any business enterprise. In respect to Aldi, the scope
and function are as follows:
Purpose of HRM
Effective recruitment and selection strategy: The manager of Aldi would place more
emphasise on hiring the right person at the right job in a proper time period. By recruiting the
efficient person would provide the growth of a firm as it renders new and excellent ideas which
ensure a vast success within the confines of retailing industry.
Performance appraisal: The main motive of HRM is to appraise the performance of their
subordinates so that they could work with greater efficiency and zeal and thus bring a desired
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level of output in a workplace. The HR manager of Aldi would tend to recognise the efforts by
sense of appreciation and providing them with financial incentives which encourage them to
work hard and thus they reach their targets in a respective time period.
Talent management: The senior authority of respective firm would tend to retain the
attractive workforce as their constant efforts and wise decision making would generate the
productivity and help in ensuring the growth of a firm with a set time frame.
Functions of HRM
Planning: This is first and foremost function of HRM in which the manager would make
planning by deciding the best alternatives from the various course of action available so that goal
is accomplished within specified time (Chen, Su and Zeng, 2016). The senior manager of Aldi
would form an appropriate strategy as it would make plan so as to facilitate better decisions as it
ensure long term growth and sustainability for a long term. This accelerates the firm to avoid
uncertainties and aids in setting standards which maximise their performance.
Organising: the manager of Aldi would organise the work in a most systematic manner
and delegate the task as the supervisor would divide the work among their subordinates in
accordance of their talent and skills which promote specialisation and increase their level of job
satisfaction and thus improve their morale. By allocation of resources in an efficient manner
would assist in eliminating overlapping of activities which depict transparency in a workplace.
Effective training: The training and development programmes is essential as it help in
building skills and knowledge level of employees and develop confidence and determination
among them. The manager of Aldi would render on the job training to their staff so that they
could accept the changes and could handle sophisticated machines which maximise their skills
and improve their knowledge level as ensure a greater path of success in their career.
Therefore, there is greater scope of HRM in a corporate world as it performs numerous
function which renders an effective growth and ensure sustainability in a long term.
P2 Discuss the approaches of HRM with their pros and cons
There are two approaches of human resource management, namely recruitment and selection as
these are detailed below:
Recruitment: It is the process of searching a prospective candidate as the respective
position is filled for an appropriate role (Dipboye, 2017). There are of two kinds that is internal
and external source of recruitment.
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Internal source: The HR manager of Aldi would conduct internal hiring so that it could
place them for higher authority with additional responsibilities. It can be in the form of
promotion and transfers which provide a greater success in their career and provide an
opportunity to candidate to grow.
Strength Weakness
It is considered as less costly method as no
expenditure is incurred on training
programmes.
This boost the confidence of existing staff as
they work in a efficient manner so that such
opportunity could be grabbed.
There is reduction in scope of fresh talent as
their capabilities and skills are not taken into
consideration.
It is limited as no new ideas would be provided
in an organisation.
External source: The manager of Aldi would consider outside employees to fill the
respective position as this method is preferred when there is search of new talent. Also, this
provide an opportunity to them as they aware of technical awareness and are creative in nature.
Strength Weakness
This method would develop competitive spirit
as new employees are competed by existing
staff which enable better performance.
The manager got wider options to choose from
which is one of the greatest strengths.
It is time consuming and costly process as
expenditure is incurred on rendering training
them with sophisticated machines.
Sometimes, new staff does not get adjust into
new environment which lead to more turnover.
Selection: It can be understood as the process in which position is filled by a suitable
candidate which is most crucial step of HRM (Gallie, 2017). The manager of Aldi would conduct
several interview and medical examination test so as to assess the ability of individuals which
ensure a systematic working procedure in a workplace.
Strength Weakness
Through interview, the manager could
determine the behaviour and get better
knowledge about them.
Selection of efficient employee would aid the
Sometimes, there is chances that company
losses the most efficient employee.
There could be biasness in selection procedure
which may hamper their performance.
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company to ensure growth as their talent is
utilised which proves to be beneficial.
P3 Benefits of HRM practice in perspective of both employer and employees
The practice of human resource provides advantages to both employer and employees
which provide a better environment and thus ensure effective relation among them. In relation to
Aldi, the same are given as follows:
Benefits of employer:
Learning and development programme: The manager of Aldi would render specialised
training to their staff so that employee’s performance could be enhanced as this develop positive
attitude and confidence among them (Mahadevan and Kilian-Yasin, 2017). Employees know
what is expected from their employers so they would work beyond their potential so that targets
could be attained within a shorter time period which prove to be advantageous for firm like Aldi.
Effective relation with employees: By making a formal relation with their staff would
help them in solving their problems and listening their grievances as this ensure long term
growth and sustainability. This promote a harmony in a respective firm as employees would feel
satisfied and gain maximum productivity.
Benefit of employees:
Training and development: The leader of Aldi would provide training with proper
guidance among their employees so as to make them capable of accepting challenging roles and
obligations. This help in boosting their self-confidence which tends to avoid hesitation and thus
provide a superior growth.
Performance management: In this, the performance of employees is determined on the
basis of their results. The manager of Aldi would provide several financial and non-financial
benefits such as compensation benefits, monetary aspects, rewards and appreciating their efforts
which enable employees to work hard so that such benefits could be availed. This ensure positive
attitude which aid employees to improve their performance and work in a most effective manner
so that desired results could be attained (Marchington and et.al., 2016).
Proper work life balance: If there is proper work life balance promoted then employee
would highly feel satisfied as they could ensure more productivity. Improper work life balance
lead to more stress which tends to reduce their creativity as they could feel excessive workload
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and thus affect their overall performance and this led to high turnover. There is proper balance in
work and personal life in case of Aldi which make their co-workers to feel satisfied and help in
retaining the for a longer time period.
P4 Determine the effectiveness of HRM to raise profits
Use of effective HRM practice in a systematic manner would promote transparency
which determine the level of growth and depict fairness and transparency (Noelke, 2016). The
manager of Aldi would determine the use of HRM practice through following ways which raises
profits:
Promote open atmosphere: The senior manager of Aldi would tend to promote an open
atmosphere as it tends to render a best solution of complexities so that fast decision could be
taken. It also invites employees to provide their suggestions and innovative ideas which assist the
concerned firm to ensure prospects of growth and thus build a greater culture and cooperation.
But it could lead to delay in decision making and thus lead to delay in undertaking the overall
activities of an organisation (Ployhart, Schmitt and Tippins, 2017).
Team building skills: The leader would promote a peaceful environment as it provides
equal opportunity to their team members to express their views and opinions so that better
decision could be taken. The leader of Aldi is highly influential in nature as it tends to listen their
staff properly as it makes use of HRM practice more efficiently which improve the overall
productivity. But at the same time, due to change in opinions and language barriers would result
in arise of conflicts and disputed which hamper their performance.
Excellent training programmes: In a dynamic environment, the leader would provide
great training to their subordinates so that they could get knowledge regarding the transformation
taken place and also, they would be aware of new and advanced technologies as this ensure a
reasonable level of growth to an ultimate level. The manager of Aldi would ensure that they
could work with greater efficiency by contributing towards their best so that their performance
could be enhanced (Rees and Smith, 2017). It is time consuming procedure which require several
formalities and also heavy expenditure is incurred on it.
P5 Importance of employee relations
Employee relation is the process of creating mutual relation among both employer and
employee as this involve proper and fair treatment to employees in order to generate greater
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loyalty (Roth and et.al., 2018). With reference to Aldi, the significance of employee relations is
prescribed below:
Employee engagement: The leader of Aldi would continue engage their staff by making
continuous update which involve sharing of information as it promotes open communication so
that issue could be identified and tackled properly. The manager of a respective firm would
involve the participation of employees and encourage them in decision making procedure as they
would feel that they have worth in a workplace and make them delighted.
Boost productivity: The manager of Aldi would assign them task in such a manner that
their skills matches to their work and provide several monetary benefits to them as this prove
improve their overall performance. They promote a unity of command and follow the principle
of authority and responsibility which help in accomplishment of goals successfully. This in turn
maximise the level of productivity and provide an utmost growth of a firm in retailing industry.
Employee retention: The senior manager of Aldi would consider employee relation as
the most crucial aspect so that it could minimised the turnover of employees. The staff of Aldi
are highly efficient and trained as they are provided with several benefits such as promotion,
bonus and paid leaves and so on which ensure that they are satisfied (Sarvaiya, Eweje and
Arrowsmith, 2018). This boost the morale and motivation of employees which provide greater
degree of accuracy to them. Furthermore, this improves employee retention and ensure greater
transparency in a workplace. Also, the manager would abide all rules and regulation and follow
all laws and legislation that promote the interest of workers and thus boost their satisfaction
level.
Employee empowerment: In this, the manager of Aldi would give certain degree of
freedom or autonomy to their workers which assist firm in achieving their targets in a shorter
time period. The top authority of concerned firm would understand the vision and mission of
company which is possible through effective communication strategy so that they could work
with their level best which contribute greater success. Manager tends to trust their staff so that
better atmosphere could be provided as this ensure reasonable growth.
P6 Discuss elements of employee legislation
Several laws and legislations play an important role which determine the overall
functioning of business entity as the manager abides all rules and regulations in a systematic
manner which improve the overall operations of a corporation (Scullion and et.al., 2016). The
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HR of Aldi ensure that they abide all policies and procedures which facilitate smooth conduct of
activities as they tend to manage the overall working procedure in an efficient manner. In respect
to Aldi, the several laws and legislations are described as follows:
Equality act, 2010: This law deal with promoting the equality in a workplace so that
the practice of discrimination is eliminated. The manager of Aldi would abide such law by
promoting the interest of workers as equal opportunity must be provided to men and women in
terms of equal pay and so on. The HR would design their policies in such a manner so that
effectiveness could be gained and thus promote a positive atmosphere.
Health and safety law, 1974: This legislation is used by manager of Aldi to promote
safe and secure environment to their workers so as to ensure welfare. They provide several safety
measures necessary toolkit to them which ensure sustainability and utmost confidence among
them. Also, the HR manager of a concerned would form a strategic planning and organise the
work more appropriately which bring proper delegation and thus improve the overall efficiency.
Data protection act, 1998: This element deal with rendering highly protection of
personal details of employees such as their contact number, address, bank details and so on. The
manager of Aldi maintains confidentiality of such information so as to build their trust as leakage
of personal information would break their performance and this affect the brand image. The HR
manager has to be careful and provide several intellectual rights and take necessary action so as
to prevent such misuse of information.
The HR manager would tend to design policies in a most appropriate manner so that
better output could be gained. The manager would follow all laws so as to maintain effectiveness
and fairness while facilitating smooth conduct of activities.
P7 Discuss the application of HRM through examples
The human resource manager of Aldi would hire a candidate for the position of HR
assistant but for this candidate must possess several skills and good knowledge level which
determine the overall efficiency as it help in attainment of targets within set time frame (Storey,
2016).
Job description: This document is prepared which consist of all necessary details
related to job as it describes the nature of job and skills which must be possessed by candidate. In
respect of Aldi, the same is given beneath:
Job Description
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Name of Company: Aldi
Division: Human Resource department
Job title: Human resource assistant
Location: London, United Kingdom
Summary
The manager would have vacant position of HR assistant as it must have good command over
English and must be responsible for managing and carrying the task. They have to be discipline
and punctual and must have ability to render an effective solution to their subordinates.
Role of Job
 Must abide all regulations and policies of company
 Should conduct induction programmes
 Assist in recruitment procedure
 Maintain proper record of employees
Person specification: This is a formal document which involve several skills and criteria that an
individual must possess. It is given below:
Person Specification
Name of organisation: Aldi
Job title: HR Assistant
Qualification: MBA
Essential criteria:
o Problem solving skills
o Good command over English
o Quick Decision-making ability
Desired criteria:
o Minimum three-year experience
o Affluent verbal skills
o Attractive personality
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Interview Questionnaire document: This is a process in which interviewer tends to ask several
questions from interviewee so as to determine the ability of individual as the way they are
answering for questions.
Interview Questionnaire:
1) Tell me about yourself.
2) Describe your previous job experience.
3) Where do you want to see yourself after five years?
4) Provide a situation when you experienced conflict and how you deal with it?
Offer letter: This is the final step in which letter of appointment is provided which consist of
several details such as probation period, hours of work, salary, pay allowances, working hours
and so on.
Offer letter
Date: 20 June 2020
Name: Shreya
Address: 34, Blue Ocean, United Kingdom
Dear,
We would like to congratulate you on having fared so well in the interview process and for
having made a definite impression in the minds of those who have interacted with you during the
interview process. We believe that you will contribute along with our team of highly dedicated
and motivated professionals. A short synopsis of our conversation is underneath:
Date of joining: 1 August 2020
Designation: HR Assistant
Reporting time: 9:30 am
Working days in a week: 6 days working
Thanks and regards,
Mr. ABC
HR manager
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CONCLUSION
From the above information, it can be comprehended that human resource is most important
element which ensure that hiring the right person would render an opportunity to a firm to grow.
Various functions are performed by HR such as planning, organising and directing the overall
activities by judging the accuracy of standards. Several laws and legislation such as employment
laws, food and safety laws and data protection act has been discussed in this report.
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