Strategic Human Resource Management Report: Aldi Analysis

This report provides a detailed analysis of Strategic Human Resource Management (SHRM) within the context of Aldi, a retail organization. It begins by outlining the importance of SHRM, its purpose, and its contribution to achieving organizational objectives, including performance appraisals, maintaining a positive work environment, dispute resolution, recruitment and selection, employee motivation, and overall organizational development. The report then delves into the specific SHRM activities within Aldi, focusing on recruitment, selection, training and development, and employee motivation. Furthermore, it evaluates the contribution of SHRM in achieving Aldi's objectives, such as enhancing efficiency and effectiveness, improving quality and productivity, managing employee turnover, and promoting employee retention. Finally, the report analyzes the business factors that underpin HR planning in Aldi, including location, labor cost control, technological impact, labor market competition, and employee development, highlighting their influence on the company's HR strategies and plans.

Strategic Human Resource
Management

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Importance of Strategic human resource management:.................................................................3
1.2 Purpose of SHRM activities in Aldi .........................................................................................4
1.3 Evaluate contribution of strategic Human resource management in achieving the objective of
Aldi..................................................................................................................................................5
2.1 Analyse the business factors that underpin HR planning in Aldi..............................................6
2.2 Assess the HR requirement in Aldi............................................................................................8
2.3 Develop a HR plan for Aldi.......................................................................................................9
2.4 Critically evaluate how a human resource plan can contribute in meeting an organization's
objectives.......................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES...................................................................................................................................13

INTRODUCTION
Strategic Human Resource Management (SHRM) is a concept which defines how the
objective of the organization will be accomplished with the policies and strategies adopted by the
human resource managers (Chand, 2015). The HR manager defines the organization's plan and
intentions and the ways to achieve the business goals through people.
In the task 1, this report stresses on the importance, purpose and contribution of SHRM in
achieving organization's objectives. Through analysing various factors, assessing the HR
requirement in Aldi and then develop the human resource plan for the organization. Further, the task
2 is explained through the power point presentation in which the major focus is on the aspect of HR
policies and the impact of regulatory requirements on these policies. The impact of Organization
structure and culture on the management of human resource are also taken into consideration. At the
last, the effectiveness of human resource management will be monitored by considering various
factors.
TASK 1
1.1 Importance of Strategic human resource management:
The importance of strategic Human Resource management is as follows: Performance Appraisals- HRM encourages the employees of the organization to work as
per their potential and capabilities and also provide them the direction which can bring
improvement in their working. The SHRM can time to time appreciate the work of
employees and guide them which will assist in enhancing the performance of individual
(Gannon, Doherty and Roper, 2012). This helps the HR manager to motivate their
employees and results in better performance of the company. Maintaining Work Atmosphere- SHRM is beneficial and plays a very important role in
creating friendly environment in the organization. It is the responsibility of the SHRM for
maintaining the healthy relations between all the employees and staff (Truss, Makin and
Kelliher, 2012). It develops and supports the work culture in order to encourage the team
work and sense of belongingness. Managing Disputes- SHRM creates a better work culture and motivates the employees to
co-ordinate with each other. This can be beneficial for the organization as the Human
resource manager’s assists in solving the disputes between the employees and because of it
the work will not get affected (Armstrong, 2008). Recruitment and selection- The main work of the Human resource manager is to select the
efficient staff as it will help the firm to be successful. Recruitment and selection helps in

fulfilling the requirement of the staff by hiring the best candidate for the organization. Motivate Employees- SHRM encourages mangers to think ahead which helps the company
in achieving the organizational goal (Schuler, and Jackson, 2008). By appreciating the work
of the employees and by providing them with timely training, workers feel motivated and
work with more efficiency and zeal.
 Development and Growth of the Organization- SHRM helps in enhancing the skills of
manpower through various seminars and workshops. By the help of efficient staff, the
organization can develop and achieve the overall organizational objective.
1.2 Purpose of SHRM activities in Aldi
The purpose of Strategic Human Resource Management activities in Aldi are as follows: Recruitment: Recruitment is the process of identifying or searching for the suitable
candidates for fulfilling the specific requirement of the job. The purpose of recruitment is to
attract pool of candidates to fill the job vacancies. Aldi is planning to expand its business, in
that case company have to hire new employees in fulfilling the vacancies (Zhang, Dolan
and Zhou, 2009). Recruitment process helps in differentiating the employees as per their
qualification and as per the job profile demanded by the company. . It helps in finding the
best talent out of many candidates. Selection- Selection is the process of choosing the best candidates which fits in the profile.
The purpose of the SHRM is to get the right people to do the right job and in the right place.
This activity is a very difficult and important for the company's success and for achieving
organizational goal. The overall working of the company is depended on the employees
working in the organization (Harness, 2009). If the employees are talented, hard-working
and efficient. This will help the organization in running successfully in the market. So,
SHRM needs to critically evaluate the potential of candidate and select the best person for
the specified job. For Example- Aldi is planning to expand their business, in that case
company needs to hire the new employees, so SHRM department of the Aldi need to be very
efficient to hire the best candidates for fulfilling the vacancies. Training and development- The purpose of training and development is to improve the
efficiency of the employees. Training helps in updating the knowledge of manpower . It
assists in upgrading the skills of employees and they can able to learn the new tactics for
performing the same work (Gannon, Doherty and Roper, 2012). The reason for introducing
For Example- Aldi is planning to expand their business, in that case company needs to hire
the new employees, so SHRM department of the Aldi need to be very efficient to hire the
best candidates for fulfilling the vacancies. Morkshops is to enhance the capabilities of

employees and to make them aware about the new technologies which can help in making
their work easier. By attending these workshops, employees feel motivated and by learning
they can increase their working efficiency and will feel motivated. For Example- HR
manager hires the professional trainee and arranges the workshops which upgrade the
knowledge and skills of the employees and fulfil their responsibilities by train and develop
the employees.
 Motivation- Motivation is the inner state that energizes and sustains human behaviour. The
purpose of motivation is to increase the morale of the employees (Dowling, Festing and
Engle, 2008). By adopting various motivational techniques, like Maslow's hierarchy theory,
Herzberg two factor theories, company can raise morale of the employee. It is very
necessary to boost up the human resource so that they can perform well and company can
able to achieve its objectives. For Example- Employee can be motivated through the
recreational activity, training and rewards can boost up the morale of employee.
1.3 Evaluate contribution of strategic Human resource management in achieving the objective of
Aldi
The contribution of HR management in achieving the objective of Aldi is as follows:
 Making contribution to organization's Efficiency and effectiveness- The HR department
provides the company with the efficient staff by measuring the work performance of
employee and properly training them (Chand, 2015). HR management is responsible for
solving the difficulties of employees and making them comfortable with the work. The
objective of the organization is achieved by the proper management of work by all the
employees. So, it is responsibility of the HR department by timely supervising the work of
staff and motivate them to work with greater efficiency and effectiveness. For Example, HR
manager can arranges the performance appraisal program to motivate the employee. Also,
HR manger can plan a activities for the employees which will results in creating new energy
in the employees and they can able to perform well which improve the overall
organizational efficiency. Improve quality and productivity- HR department always boost up the employee morale and
solve the problems of employees. By providing training and guidance, the efficiency of
employees can be increased (Ananthram, Nankervis and Chan, 2013). Through training,
employees can be able to learn new techniques of work which results in greater productivity
and results in better output from the employees. The satisfaction level of employees
motivates them to give them better quality of work and they can perform their best and it
will also help in achieving organization's objective. Example- HR manager of Aldi can use

total quality management techniques to judge the performance of the employees and if any
improvement is needed it can be timely sought out. This will results in improving the
efficiency of the employees and ultimately helps in achieving the objective of Aldi. Employee Turnover- HR department contributes in increasing employee turnover by hiring
efficient employees. By the hard-working and efficient employees, the quality and
productivity of work can be improved (Dowling, Festing and Engle, 2008). It will result in
gaining more profits to the company. The more satisfied employees, means more quality of
work and by which the company may not have to hire the new employees which reduces the
cost to the company. For Example- Aldi can give incentives and involve the employees in
the decision making which results in boosting the morale of employees and they will work
with greater efficiency.
 Employee retention- Human Resource Manager helps in building the employee morale and
raises the confidence. This results in employee retention and creates more satisfied
employees. By this, the reputation of the organization in the market increases and the share
price of the organization gets enhanced (Maley, 2011). Aldi is planning to expand its
business as in that case, they need more employees and for this Company have to create
their positive image in the market. By building positive image in market more number of
candidates may apply for job in the company. This helps HR department of Aldi to choose
the best candidate out of many options available. For Example- Aldi always work in the
beneficial of employee. The HR manager works in the direction of developing the
employees through training and development program, this helps in motivating the
employees morale and by this company can able to retained the employees.
2.1 Analyse the business factors that underpin HR planning in Aldi
There are different factors which can affect the HR planning of Aldi. These factors include
Labour cost control, location of operation, and changing nature of work, technological impact, and
labour market competition and employee development. All these business factors are described as
under:
 Location: Aldi wants to start its business operation in different location of greater London.
It is developed country and organization will face huge competition in this market. So, it
will also affect HR plan in negative manner. This is because because manager of the
organization will face difficulty in hiring new employees at different location. For example,
if Aldi transfers present employees to new location then may face travelling issues and are
likely to demand more salary (Schuler, and Jackson, 2008).
 Labour cost control: Aldi needs to focus on reducing unnecessary labour cost. So, human

resource budget and labour cost are also considered as major factors which can also affect
HR plan of Aldi. This is as if Aldi is able to fix the labour budget then there will not be a
need to employ surplus labour. It can thus save company from unnecessary expenses. Technological impact: Technologies are also changing day by day and it affects the labour
requirements of the organization. Sometimes it has positive and negative impacts on HR
plan. For example, the technological change can benefit Aldi in terms of reducing time.
However training on technology can be a costly affair for the company. Aldi needs to hire all
those employees who have appropriate technical knowledge and skills which can increase
the total cost of Aldi. So, it can affect whole HR plan. Labour market competition: Labour market competition is also increasing day by day and it
creates difficulty in terms of reduced sales, decreased profitability, employee turnover and
dissatisfied consumers. Including this, due to high competition Aldi cannot fulfil the all
requirements of roles and responsibilities. Therefore, high competition in labour market also
affects the Hr plan of Aldi (Alcázar, Fernández and Gardey, 2013). Nature of the business- The HR planning is a very important concept and it changes with the
various factors. The nature or type of the business in which the organization is dealing
affects the HR planning policy. The number of persons hired, planning for the training of the
employees is all decided on the basis of nature of the business. The HR planning is affected
by various similar kinds of factors like the size, nature, type of business which makes a lot
of difference in the planning activity. Aldi is a retailing company, and the sales people of
retailing company needs time to time training for upgrading the skills and knowledge of
sales people to deal with the customers. Business environment- The internal and external environment of the business affects the
planning of the HR. For example, internal business changes in terms of organization
policies, changes in department may led to conflict and change in status quo. On the other
hand, external environment changes such as decreased consumer demand, increased cost of
raw material may affect productivity of company. Through self-assessment of the company,
HR manager have to identify the need of the employees and according to that, he will do the
HR planning. As per the need, HR will plan for the training and workshop of the employees
to make them update about the current scenario and the latest technology
(Ananthram, Nankervis and Chan, 2013). Culture of Organization- Every company is having their own rules, regulation and the
working environment. Employees abide by the system which company sets for their staff.
All the planning is done according to the prescribed rules and regulation of the company
(Zhang, Dolan and Zhou, 2009). HR department cannot apply their own rules over any HR

functions. The culture of the organization depicts the working style and the limitations
according to which all employees have to work in the organization. Demand and Supply of labour : The demand and supply factor also affect the planning of
HR. For example- If the demand of the employees are more but the HR manager not getting
the qualified candidates, in that case the company needs to hire the professional trainee and
train the existing staff to fulfil their requirement. In this way the factor of demand and
supply affect the decision of HR planning.
 Policy of Management- The policy of management is the criteria or style of the company
beyond which the company will never go. So, HR department while preparing the Human
resource plan have to go through policies of management and according to that, all the plans
and policies will be structured. Aldi is planning to hire 600 more employees and the
recruitment and selection process is designed according to the policies of the company
(Armstrong, 2008).
 Impact of technology- By the development of technologies and various tools and techniques,
more skilled staff is required to work in those tools and technologies (Alcázar, Fernández
and Gardey, 2013). HR planning needs to be revised according to the current requirement of
the organization.
2.2 Assess the HR requirement in Aldi
As per the given case study, Aldi wants to expand its business in greater London by starting
eight stores. This establishment increases the requirements of human resources. According to the
case, there are 600 new job openings in organization so; organization needs to hire 600 people for
different job positions. There are different source of recruitment and selection such as internal and
external source of recruitment. In addition each and every person will require different skills and
knowledge to complete their roles and responsibilities in effective manner (Bhattacharya, 2009).
Aldi is planning for opening eight more stores in the Greater London, which will create 600 new
jobs. This that means there is a need for hiring new staff in the organization for the stores which are
going to open by the Aldi. In recruitment and selection process, HR manager plays a very important
role (Ross, 2014). All the activities right from the recruitment till the selection and training of
employees are done by the HR manager only. HR department is required for:
 For the proper workforce planning.
 To accomplish the work of recruitment and deployment.
 To maintain the work environment and for the healthy relation between the employees.
 For the job satisfaction of employees and also assist the human resource in career
development through various training and development program.

 HR department requires financial resources for fulfilling all the process successfully.
Employees will be required in each areas like the finance, marketing, Operations etc. HR
needs to update themselves with the requirements of the company and assign the right job to
the right person (Schuler, and Jackson, 2008). HR is responsible for managing all the
activities related to the employees training and development and should enhance the skill of
employees and make them efficient as well as aid in improving the performance. After
hiring appropriate personnel, Aldi needs to make suitable arrangements of training and
development programs for improving skills and capabilities of employees for fulfilling their
roles and responsibilities in effective manner.
Human Resources requirements
According to the given situation, it has been analysed that personnel requirements of the
human resource working in the organization are of core need. HR department make complete efforts
to identify the aspects about new employees at Aldi. Following points will be considered as a need
for which new requirements of the new personnels are required at this organization. Identification
of these points with respect to the given situation has been stated as follows: Number: HR planning is made by considering the number of people who are required. At
Aldi, this will depend on the vacancy post or new the demand for new employee. Skill sets: Once, the requirement for number has been made, the next thing which is
required to be taken care is the set of skills (Millmore, 2007). Hiring of vacant or required
post at the Aldi will be taken on the basis of qualification, skills and knowledge that are
required. Experience: It is considered to be very vital for the post which is required to be made. The
experience of the individual counts and therefore, it is essential as Aldi considered the same
of an individual in recruiting. For example, for the post of training manager company
will prefer experienced candidates as they have knowledge regarding the employees
perception and how to train them which helps in better improvement of employees
skills and abilities. Qualifications: The qualification of an individual who is hired for a position must possess
the desired and suitable qualification for the vacant post. For example, if a candidate is
applying for the post of HR recruiter then he must have proper education and
experience in that field. Candidate having experience in finance field is not applicable
for this post.
 Match personnel to organisational requirements: The hiring process done by the HR
department of the Aldi is done through matching of personnel to organisational requirement.
On the basis of same the, the final selection is made at Aldi. If there is requirement of more

staff but organisation is not in condition to afford them then in such case personnel
department will try to manage work among the existing employees rather then hiring new.
Or it will find out if organisation can recruit members internally then it will not hire new
employees externally.
What is Organisational requirement and how it will math to the personal requirement
2.3 Develop a HR plan for Aldi
HR planning is an important component of strategic HR management. . HR plan includes
the issue of allocation of resources so that HR development goals can be achieved. In short, it can
be said as it organizes the right people at the right time. The structure of HR resource plan consists
of assigning roles and responsibilities of employees, organization charts and the plan for employee
management. HR plan identifies the number of employees and skills required in the future (Gannon,
Doherty and Roper, 2012). While developing HR plans, various factors are taken into consideration
like social, economic, technical, legal, so that, impact of this on HR management can be analysed.
The steps which are included in developing HR plans are as follows:
 Defining Purpose of plan: Major purpose of this Hr plan is recruiting appropriate person to
fulfil all roles and responsibilities in effective manner. Aldi wants to start 600 new stores at
different locations of London. So, hiring skilled and knowledgeable employees for different
job position of the company.
 Setting objectives:
 To select skilled and knowledgeable employees.
 To reduce employee turnover by 10 percent.
 Resources required: For implementing this HR plan different resources are required such as
human resources and monetary resources (Schuler, and Jackson, 2008). Planning restructuring employees or resources- This plan includes re-assigning work to
employees, shuffling the members of group to maintain the healthy relation between all staff
of the organization. If there is oversupply of employees then in that case, termination of
inefficient or less skilled employees can be done to reduce the staff (Bhattacharya, 2009).
Aldi is hiring new staff for their new stores in case if there is over supply of employees the
inefficient employees can be fired.
Store manager
Finance managers
Sales Personal/ Customer assistants
 Carrying out recruitment activities- Recruiting of new staff according to the skill and

capability which the firm will need in the future. HR manger has to find all the skills which
are required in the candidates that match with the job (Dhar, 2008). For opening new stores,
the recruitment plans helps Aldi in recruiting the candidates which are perfect according to
the job profile of the company (Maley, 2011).
 Training the new recruits- Training and development of the existing employees is necessary
to upgrade their skills and knowledge. Seminars and workshop can also be arranged for the
employees to boost up the morale of the manpower (Truss, Makin and Kelliher, 2012). In
Aldi, it is the responsibility of HR manger to train and develop the employees as per the
skills required in their new stores (What is strategic HR, 2015).
HR plan is inclusive of planning for the manpower which has been done on the basis of
functions and tasks as follows:
Table 1: Human Resource Plan Aldi
Functions/tasks People on
staff
currently
Additional
people needed
now
People needed
in 6 months
People needed
in 1 year
What skills
needed to
increase
performance
and capacity
explanation
Store manager 50 25 15 - Strong
management
skills.
Finance managers 100 20 30 15 Skills of
managing fund
and its
allocation
Sales Personal/
Customer
assistants
250 50 25 20 Communicatio
n and
interpersonal
skills
Current Minimum wage levels across London and how much Aldi should pay to promote its
performance and expansion
Please justify the table because you have mentioned 600 staff are required for expansion of the

business. But you have mismatched information. The data given in the table is contradicting
the data you have given in the interpretation of LO 2.2
Table 2: Current Minimum wage levels across London
Jurisdiction Self employed Full time Pay rate Effective Date
London 6 4 £8.99 and based
on the experience
Feb/2016
2.4 Critically evaluate how a human resource plan can contribute in meeting an organization's
objectives
The HR plan can contribute in meeting an organization's objectives: Hiring efficient employees- The HR manager by hiring efficient and qualified staff helps the
organization to achieve its objectives. Efficient and hard-working employees can efficiently
perform the work and meet the organizational need. For example- the efficient sales staff
helps Aldi in increasing the sales by satisfying the customers. The sales people are in direct
touch with the customers so, they can take the feedback from the customers and can also
know about the preferences and choices of them (Harness, 2009). By satisfying the need of
customers, company can increase the sales volume as well as can enhance the profits of the
company. So, the HR manager of Aldi efficiently performs the work of hiring right persons
at the right job. For example, Aldi may face an urgent need to hire employee s during peak
work load. If the HR activities were properly planned then it could have saved the company
from issues that may arise in hiring employees during load. The challenges may be with
respect to training them, making them learn new responsibilities fast. Performance management program- HR is responsible in creating healthy relation between
the employees. By this development and training program, employees can upgrade their
knowledge and perform well for the Aldi. The firm can build their reputation in the market
by hiring satisfied employees and creating healthy work culture (Gannon, Doherty
and Roper, 2012). Objective of Administration- It is the responsibility of HR manager in Aldi to assist the
smooth operation of the organization. They must maintain comprehensive and accurate data
on individual employees working in varied departments of Aldi. They are required to
maintain employee performance report, terms and condition of employment, training and
attendance records, payroll, and the personal detail of human resource (Ruiz, 2015). All the

data are properly managed and it helps in smooth functioning of Aldi by precise record-
keeping of information related to employees.
 Create the reputation in the market- The more number of satisfied employees results in
enhancing the image of Aldi in the market. The satisfaction level of employees keeps them
attached with the organization. By working in the organization for a long period, make the
employees expert in their work which is beneficial for the company (Millmore, 2007). The
perfection comes in the employee work and by which the organization can able to give
tough competition to the competitors and create their image in the market. By providing
timely training to the existing employees, company can outshine the work of employees.
However, the organization can also save the cost of hiring new employees.
Business expansion is one of the major objectives of Aldi and HR plan contributes in attaining
this objective in effective manner. HR plan helps in recruiting appropriate number of personnel with
suitable skills and knowledge. It helps in completing business operations in appropriate way which
will help in business expansion of Aldi.
CONCLUSION
By summing up the project it has been observed that, the role of SHRM is very important in
the organization to meet the objectives and goals. By focusing on various aspect of strategic human
resource management, finally conclusion is drawn. Assessed the HR requirements in the Aldi
because company is planning for the expansion of the business. The factors that underpin the HR
planning in the organization were also discussed. The contribution of human resource plan in
achieving the organizational objective is also identified in the project. Through the power point
presentation in task 2, the actual purpose of HR policies that is control over all the activities of the
organization had been discussed and the impact of regulatory requirements on HR policies was also
taken into consideration. So, it can be concluded that HRM is very important for the Aldi and the
company should follow the policies, and time to time monitor the work of HRM department to
improve the effectiveness of the overall organization.

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