The Strategic Role of HRM in Achieving Organizational Success

Human Resource Management (HRM) is pivotal for organizational success, requiring alignment with corporate goals through effective HR models. This research explores the critical role of HRM in recruitment, selection, workforce development, policy-making, and talent management. The paper emphasizes strategic human resource practices that enhance employee performance and retention while mitigating challenges like high turnover rates and labor shortages. Key strategies include comprehensive staffing plans, robust training programs, and adaptive policies to accommodate changing business environments. By integrating these HRM approaches, organizations can foster a sustainable competitive advantage, ensuring both short-term efficiency and long-term growth.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Goal and functions of HRM that apply in planning and resourcing organisations................1
P2 Strengths and weakness of recruitment and selection approaches.........................................3
TASK 2............................................................................................................................................4
P3 Advantage of HRM practices for employee and employer...................................................4
P4 Effectiveness of HRM practices in raising organisational profit and productivity...............5
TASK 3............................................................................................................................................6
P5 Importance of employee relations to influencing HRM decision-making.............................6
P6 Major components of employment legislation and its impact on HRM decisions................8
TASK 4............................................................................................................................................9
P7 Implementation of HRM practices in work environment......................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
HRM refer to management of human resources within a company who organise
recruitments process as well. They maintain or plan new innovative activities to increase
performance quality of employees (Jiang and et. al. 2012). Human resource management is
mainly concerned with expansion of policies, organisation management, terms as well as
represent employee requirements and expectation. They work for organisation creating a bridge
of communication among staff members. ALDI is one of the largest UK based retailing company
who provide wide range of services worldwide. In this, the assignment will study recent purpose
of HRM of ALDI and various practices as well as approaches that the enterprise adopt for
maintaining their relationship with employee. It will also analyse their role in decision making
process as well as strengths and weakness of HRM.
TASK 1
P1 Goal and functions of HRM that apply in planning and resourcing organisations
HRM is a process that include activities which is being held in ALDI for managing
human resources such as training of employees for modifying their skills, hiring new candidates
for vacant profile regarding the recruitment of organisation, develop their terms, balance
employees. This helps in avoiding conflicts and issues with trade unions for balancing
relationship of company with society as well as government.
Human resource management coordinate whole entity by designing or organising team
work activities for employee that assist them in creating more flexible, friendly and positive
workplace. Here are some goals and function of HRM in ALDI:
Evolution of policies -
HRM evolve terms, policies, rules and limitation of company in order to maintain
discipline in workplace and fair regulation (Kehoe and Wright, 2013). It is their responsibility to
create a managed environment by building such policies that is written below:
 Organization Ethical Policies
 Uniform System Disciplinary policies
Staffing -
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ALDI hire bright and hard working employee with more potential. In any organisation,
including ALDI, staffing procedure is significant and basic. Companies try to hire people by
offering minimum wage to balance expenses but more than they were getting from previous job.
There are few steps that is required to be followed in staffing process which are:
Staffing Planning –
Human resource management design a plan that investigate the vacant job profile which
is required to be filled in company . In this, major aspect that determine budget is amount of
revenue.
Multicultural Activity-
It is essential for ALDI because company have deployed its business in many
demographic areas (Human Resource Management (HRM) - Definition and Concept, 2016).
Selection -
They rectify selected applicant by undergoing interview, written test or other tools and in
final stage they render inspiration,training ad retentions to them.
Hiring –
To fill vacant places, ALDI recruit skilled employee for their company.
Compensation and benefits administration -
Human resource managers ask to balance ALDI's actions for symbolizing industry needs,
plenty broad to stimulate and motivate workplace of company. HRM is concerned with wages of
staff members and facilitating employee satisfaction by providing them job security or other
facilities such as incentive, pension etc. Here are few employee's compensation which include:
 Job Security
 Wage
 Incentive
 Health security
Retention -
Retention is performed for stimulating employee performance level to earn their loyalty
and commitment for ALDI (Guest, 2011). Compensation is significant in this process so that the
employees become more stable in the organisation and avoid situations like:-
 Issues with quality of work.
 Unfavourable workplace.
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 Grievance and demand with manager.
Training and development -
After the selection procedure, ALDI employee are provided training for developing of
their skills. This helps worker in understanding different aspects of their job according to which
they can modify their abilities. To become familiar with staff and work profile, training and
development period is being organised by HR of ALDI for new recruitments. This process
undertakes few steps or practices which is:
 Training to develop skills according to job.
 Description of policies and legal terms.
 Communication and grooming.
P2 Strengths and weakness of recruitment and selection approaches
Selection and recruitment procedure in a company explains hiring of candidates in empty
job profiles in order to fill those vacant requirements of employee in an organisation. This
undertakes several tactics that involves interview, written examination, aptitude test, online
application, and many other modes. ALDI is one of biggest retailing company in entire UK
which follow a structure and designed process of selection in their organisation of which all
applicant have to go through to get selected by this enterprise. But as it is clear, every system has
a loophole so if it has positive impact then it will have negative affect too. Here are some
strengths and weakness of this process explained below:
Strengths -
To recruit best employee for their company, ALDI have selected some effective selection
and recruitment structure or models (Hendry, 2012). These approaches not only help in hiring
best workers from all over Europe and United Kingdom but also helps in building strong
workplace in company that indirectly increase efficiency of products and other procedures. HRM
create as well as communicate with internal employee that helps in collecting diverse concepts,
ideas or views over a specific strategy helps in getting maximum result by implication.
These process also aid in accomplishing various tasks which is required to complete on
time which is only possible with the help of employee. It seek deserving and skilled employee
and rectify those talented applicant out of pool of thousand candidates. HR through organising it,
attain their pursuit by going through various steps and determining conclusion over the basis of
process instead of hiring them according to references or being biased (Boxall and Purcell,
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2011). They observe several aspects in the applicants including eligibility, ability, education,
certainty, experiences etc.
Weakness
Major disadvantage of this process is after the whole process of hiring, if candidate do
not give benefits to of organisation, it will be a loss of capital as well as time for ALDI.
Therefore human resource manager have to seek most effective and efficient method in order to
avoid such situation.
In case of internal recruitments, many organisations miss qualified and fresh conceptual
employee that they could have had . Thus, it is duty of HRM to adopt internal and external hiring
procedure to make best out of all efforts and give preference to new ideas and concepts
according to trends.
TASK 2
P3 Advantage of HRM practices for employee and employer
HRM practices contributes a vital role in building internal environment of an organisation
strengthening little details of it by focusing and analysing them. This increase internal
productivity of firm that result in gain in revenues from market. Human resource management
creates a bridge of communication between employee and employer that cater many positive
benefit in ALDI as well as both bodies (Beardwell and Thompson, 2014).
Advantage to Employee
Deliver Training
Human resource manager organise several programmes for development of skills of their
employees. It help them understanding worker's needs and expectation from their company as
well as issues they are facing related to productivity or external environment. These practices
assist worker to become acquaint with new technologies along with developing their own
abilities and knowledge. It also create endurance abilityin labour in the tangled and pressured
situation.
Inspire Employee
Human resource management activities inspire employee's moral and values in regard of
company by committing a long terms relationship with ALDI. Cited organisation offers their
worker a career more than good wage. They organises training and development, monthly
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reward, appraisal and promotion etc. Thus, this, not only increase their knowledge but refresh
their concepts to make a new start with full energy (Thompson, 2011).
Modify Employee Presentation -
Company brand image also indicate work performance and abilities of an worker.
Flexible work place offer achievement to individual or entire organisation. HRM activities not
only motivate employee and enhance their abilities related to their work but also build them
more presentable in matter of communication, interaction and knowledge than general people.
Employer Benefit
Building Team -
Company can accomplish their objectives as well as personnel management with the help
of human resource management more effectively and innovatively. HRM come up with very
creative ideas or concepts through communicating with employees which strengthen employer's
team working habits.
Create Optimistic and Better Workforce-
HRM work hard to encourage their employee as well as employer through organising
various team work activities which facilitates more optimistic working environment at
workplace. It assist in building a place of friendly, flexible and workaholic surroundings. They
convey policies or terms of company to the employee to avoid conflicts in future.
Aid in Planning and Decision Making Process -
Employer have to allocate or assign everyday routine and make changes in system
focusing according to requirements of company. HR interact with employee main information to
keep informing them about the changes and new planning which is occurring in company. Also
they give preference to worker's ideas, or concepts in decision making process which also assist
employer to come up with creative and innovative strategies (Renwick, Redman and Maguire,
201).
P4 Effectiveness of HRM practices in raising organisational profit and productivity
In organisation, major objectives is maximizing their amount of benefits or revenues by
selling their products and services in market. It is very complicated to sustain in market which is
full of strong competitors. Effective strategy can assist a company to raise their profits by
creating new consumers. Human resource management duty is to balance internal working
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environment of company by influencing employee which increases quality of products to
indirectly help in management process of company.
Training and development period of a company is called energy booster time that
enhance quality of performance of workers for better results of their efforts and introduce them
with new technology which strengthen internal workplace of ALDI (Carter and Liane Easton,
2011). These practices aid organisation in manufacture process because satisfied employee create
more quality products which company aims to have in order to satisfy consumer needs. This
benefit enterprise in form of increment in the overall profit including financial and other
advantages. For better conclusion, ALDI's employers and leaders need to utilize better
approaches of managing HRM in their company for its evolution in market. Also these activities
enhance productivity of products and services of organisation by facilitating worker a better
environment to work.
Human resource management convey the message of organisation to employee in regard
of increasing their participation in decision making process that make them commit more longer
with company. Stimulation and motivational activities boost their values and morals which
refresh their minds impacting over the quality of services they manufacture. Through negotiating
terms and policies of ALDI, they build a strong relationship with their workers that reduce
conflicts from workplace. Through this, they earn loyalty and potential toward their work, that
render more dedication for their leaders. This is how HRM perform and increase the productivity
and efficiency at workplace. It also helps firm in portraying positive image in society as well.
TASK 3
P5 Importance of employee relations to influencing HRM decision-making
Worker are crucial part of an organisation who play a vital role in success and growth of
a company. worker are those people who imply entire marketing plans which are created through
leader (Boxall and Purcell, 2011). This is essential for leader to interact company culture to
employee for work them accordingly. This also inspire them to perform better in order to get
maximum, results in context of gaining revenues. In the dynamic market, it is very complex to
refrain in industry full of rivals providing the same products in lower prices. These are few
element in which it is briefed that why manager should maintain employee relations:
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 Increase in entire staff member involvement in decision making of strategies or other
plans to attain company goals.
 ALDI should utilize various activities which can open employee to express their thoughts
and views related to any subjects such as consultation process, behaviour survey and
suggestion strategies.
 Enterprises like ALDI should rotate work profile within employee among them which
can emerge curiosity in workplace of learning something more and interesting
(Armstrong and Taylor, 2014). This create a creative aura at workforce and give them
chance to widen their knowledge and experiences and seek HR more skilful person for a
specific work.
 Evolution and grooming of worker should be organise in workplace that can help in
learning new technology according to evolving trends as well as increase knowledge
about industry. It can help in developing their abilities, deploying information in other
field rather than one's specialised technologies.
 Also company should provide an award opportunity in workplace by promoting, extra
incentive, appraisal, appreciation for better performance or creative idea of them which
company can optimized. This can also motivate other worker to participate in decision
making process.
ALDI employer understands the value of managing employee relation in their
company.These activities or models can help in improvement of enterprise in industry. This also
assists in raise productivity of entity performed for getting specific goals. Employee serves
customers directly and indirectly which means that they represent company among market. They
are responsible for consumer satisfaction and increasing sales of ALDI products.
P6 Major components of employment legislation and its impact on HRM decisions
European Unions have come up with these revolutionary idea of industrial democracy
which facilitates worker some laws at workplace. These are made for increasing their standard of
living, protect them for exploitation and provide them rights to sustain in business firm. HR
undertake all those legislation while determining company policies. Here are basic acts of
company that HR consider while finalising terms:
Health and Security Right -
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According to this act every employee have rights of job security after a period of time
working for the same company (Unger and et. al. 2011). Manager or employer can not terminate
any employee without giving a valid reason or termination notice.
Minimum Payment act -
To avoid labour exploitation, this act was introduced by government of UK (Keep and
James, 2010). They have set minimum wage amount which a worker should be paid for fulfil
their needs fir survival.
Equal Wage act -
This act enable all worker the opportunity to have equal wage for the same working
profile. Organisation can not differ workers on basis of gender, caste and other factors.
Delivering Time of Work
In this act, there are determined working hours which have been set by government that is
48 hours. In case, if company want worker to work more than this, they have to pay for that
according to circumstances.
Worker Equality Act -
In an organisation, every worker should be allotted equal chance to develop or appraise
Discrimination on the bases of gender, colour, race, region would not be supported.
Disability Discrimination act -
According to this act, company can not discriminate an employee who is disable as well
as hurt their emotion or values on basis of inability. Such case will be undertake as a crime by
the court.
TASK 4
P7 Implementation of HRM practices in work environment
An organisation maintain a human resource department in their management to manage
personnel andincrease performance of employee. Through hiring best candidates for job, they
function more smoothly and sustain in competitive market. HR has a crucial part in
encouragement of employee of cited company through using various models (Wilden, Gudergan
and Lings,2010). They are the mediator who communicate message of employer and employee
among them. These relations keep refreshing worker attitude, behaviour and resolve issues of
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them related to role at workforce. HR is considered the heart of organization which function its
whole body.
HRM aid company in performing task in effective designed way that can get full
efficiency of implemented strategy in market. They select those applicant for company which are
useful and talented in respect of earning benefit in appropriate manner. For that, HR imply
various tactics in workplace to enable more productive services which are as below:
Talent Acquisition -
To identify those applicant of work profile who have skills and abilities to fit on even
most pressured situation is duty of HR. They convey the message, mission, vision and objectives
of company in effective manner that can inspire worker (Taylor, 2014).
Recruitment and selection -
This is the major task which is done by HR of ALDI. To fill they vacant places for job
profile, HR organise recruitment and selection process for seeking or hiring deserving skilled
candidates enable company in development in industry and company itself by contributing their
best. HRM examine all processes and undertake whole steps for efficient use of money and time.
Resolve issues -
This is responsibility of HRM to resolve issues that emerge in internal working
environment by investigating entire conflicts and come up with best possible solution of it.
Hence, ALDI HR undertake many alternative approaches to avoid these problems as well as
solve every small difficulty of employee and employer.
Training and development -
Proper training of work or new technologies occur in market is essential to provide to
employees as they are in majority serving customer services of company. It helps enterprise for
developing overall performance as well as increasing revenues through raising insights of sales.
It is duty of HR to understand or identify most skilled people and provide them proper training
and appraisals for attaining aims.
Workplace Flexibility -
Human resource management facilitates a flexible working environment including work
from home, shifting time etc. according to the consequences. This is assisting company because
if firm will provide them such environment, it will increase worker's interest in their job profile
that create potential among them (Rees and Rumbles, 2010).
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