Strategic Human Resource Management Analysis: A Case Study on Aldi

This report provides an in-depth analysis of Aldi's strategic human resource management (SHRM). It begins by examining Aldi's HR practices and policies within a theoretical context, focusing on high-commitment HRM and best-fit HRM approaches. The report explores the company's application of these practices, including training programs, employee empowerment, and compensation strategies. It then evaluates the impact of external factors, such as unionization and workforce skill levels, on Aldi's HR decisions. The report also analyzes how HR functions are organized and delivered, specifically using Ulrich's model to illustrate different roles within the HR department, such as HR business partners and employee champions, and discusses the roles and challenges of line managers in delivering HRM. The analysis includes references to relevant literature and provides a comprehensive overview of Aldi's SHRM strategies and their effectiveness.

Strategic Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1)Analysis of humans resource practices and policies in the firm against theoretical context ..1
2)Evaluation of external factors and its influence on human resource strategic decisions.........3
3)Evaluation of ways in which HR functions are organized and practices and policies are
delivered......................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic human resource management are the policies and procedures through which
human resource are managed and organized. This also helps the company to give rewards to
employees and thus they can easily retain the staff members (Banfield, Kay and Royles, 2018).
Manager can provide training and motivate staff members so that they can perform well in firm.
Through these policies workers can give superior results. Hence firm can maintain good position
in market as well as in minds of all employees. Assignment describes about Aldi company which
is a retail firm. It was found in 1913 in U.K. Project describes about the policies and practices in
the firm and the theories which are performed in the company. It further explains about the
different external factors and the influence of these elements on firm. It describes the various
functions of human resource and the methods through which policies and practices are delivered
by firm.
TASK 1
1)Analysis of humans resource practices and policies in the firm against theoretical context
Human resource practices and policies are practised in the firm and they are based on
approach. Through these policies firm can give training to all employees and they do not make
any discrimination in sections of staff members. Through this they can easily maintain diversity
in the firm. This also helps the company in maintaining good governance and manager can take
commitment from employees. In this Aldi company creates various strategies and policies so that
they can give appropriate training to all employees and thus workers can give superior results.
They they can also accomplish their objectives and goals. Hence firm can perform better and it
leads to development of Aldi (Brewster, 2017). Human resource practices are explained below:
 Regulatory bodies
 Policies in which employees can choose their working hours
 Leaves of absence policies
 Business and travel expenses
 Use policies and practices
 Time of practices and policies
Human resource practices
 Selection and recruitment
 Pre recruitment policies and rules
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 New employees policy
 workers retention strategies
 Compensation plans and polices
 Training plans and programmes
Human resource policies and practices adopted by Aldi are:
High commitment humans resource HRM are different rules and policies through
which it can improve the performance of all workers (Brewster, Mayrhofer and Morley, 2016).
These practices are followed so that there can be absenteeism, and they can provide efficient
services to all customers. Through this they can improve performance of all staff members and
thus they can easily accomplish their objectives and goals. These practices are beneficial for as
well and for workers. Human resource practices result in enhancing quality of employees and
thus can easily give superior results. According to Pfeffer J.,best policies are:
 Selection of few individuals
 Organising of training and development programmes
 Based on performance all employees can receive high incentives
 Appraisal of their performance and career growth
 Working in a team
 Reducing of different in status
 Balance between job and personal life
 Security of workers and internal markets
High commitment is applied by Aldi so that they can give training according to suitability
of all employees. They have created different logo through which they can attract many people.
They also delivers superior quality of products to various users which leads to increasing of
customer satisfaction (Chelladurai and Kerwin, 2017).
Application of these policies and practices include that all employees can give their
suggestions in creation of strategies of firm. Aldi organizes training programmes so that they can
deliver good training to workers and hence it directly increase their zeal and enthusiasm. Thus
they can give best results. They also give option to workers to choose their working hours which
is very beneficial for the company (De Lange, Kooij and Van der Heijden, 2015). At time of
risk all workers have to work for extra hours in company. Aldi has come with different
transformations through which they can change the policies and procedures. Thus they can also
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change attitude and behaviour of staff members. Company had modified their technology,
behaviour of all employees so that they can improve performance of company. This model is
used by firm so that they can create effective HR policies and practices and thus they can easily
accomplish their objectives.
Best Fit HRM:
Best Fit approach approach creates HRM policies and practices according to different
business strategy. Strategies and methods include goals related to performance,planning of
various futuristic activities and thus they can easily accomplish their goals. These strategies of
HR is created so that they can support corporate strategy. So it emphasis on the human resource
practices and different strategies. Through these policies they can fulfil all needs and wants of
workers. These are created so that they can be applied in all situations and thus they can
improve performance of workers.
2)Evaluation of external factors and its influence on human resource strategic decisions
Different external factors are there which can impact the human resource practices and
policies. Hence factors which can influence decisions of human resource management in Aldi
are:
Unionised or Non unionised
Unionised manpower are the employee association through which all workers can be
satisfied. All staff members can easily negotiate their salary or wages through through this union.
It also includes the various advantages of staff members and they can also complain and tell their
problems and issues to this association. Thus thus union help in protecting their rights and thus
provide different advantages to staff members. They can only get these rights with which they
had performed agreement with the Union (Marchington, 2015). They cannot suer against their
manager or company in case if they are exploited or being terminated from their job.
Non unionised are staff members are not workers of union and they don't have any union
in the company. They have much more power and they can protect the rights of all staff
members. Employees can sue against their manager can they can move to court in case if they
are been terminated or exploited. Both the associations can affect decisions of humans resource
manager (Moutinho and Vargas-Sanchez, 2018).
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Aldi has non unionised employees and thus company has protect their rights and they can
give freedom to all staff members. Thus company can follow a lengthy process and methods in
case they terminate employees such as in case of retirement. In non union workforce they do not
follow lengthy process and methods and thus they can easily terminate employees without any
particular reason.
So hence non union workforce can effectively influence decisions of Human resource
management. Thus they can their own decisions such as performing promotion or termination of
all staff members. Through their effective and efficient decisions they can directly improve the
performance of all workers and it directly improves the performance of staff members. Hence it
can improves the quality of staff members and thus they can easily accomplish their objectives.
Hence they can easily maintain unique position in the market as well as in minds of staff
members.
High skilled or low skilled workforce:
Skilled and non skilled workers can influence decisions of human resource management.
All employees of the company can influence decisions such as training and
development,recruitment and selection and salary that they are receiving. For example if
employees are highly educated and skilled they want more salaries and incentives as compared to
low skilled staff members. Aldi had educated and talented employees which can render efficient
and effective products and services to all customers. Through this they can maintain unique
position and can increase the level of joy and pleasure of user's. Hence they can also maintain the
customer loyalty in the company.
Employment market
Employment market is place where manager and staff members can easily communicate
with each other (Reiche, and. et. al., 2016). So hence Human resource manager can evaluate the
employment market and they they can select the employees who are needy and give therm higher
salaries. Employment market can highly influence the decisions of human resource management.
Thus as a result they can easily provide effective services to staff members. So thus company
selects such staff members who have high calibre and talent and they can give them low wages.
This benefits the company a lot.
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3)Evaluation of ways in which HR functions are organized and practices and policies are
delivered
Ulrich's model
It was introduced by David Ulrich and they want to organize different functions of human
resource management (Shields, and et. al., 2015). Their main objective is to create different and
unique policies so that they can easily support different unit of various business. They had given
suggestions that functions of human resources can be divided into four parts. Four parts which
are applied in Aldi are described below:
HR business partner: Main objective of HR business partner is to interacts with the
internal customers so that they can satisfy all stakeholders. Stakeholders include
employees,suppliers,owners and creditors etc. It is a unique concept in which manager can easily
interacts with internal stakeholder and they can easily solve their problem and issues. Manager
can interacts with stakeholders and can tell their objectives and they also said their plans and
policies. Through this all staff members can easily perform well and thus they can easily
accomplish their objectives. It results in enhancing of quality of all employees and it results in
growth and development of company.
Change agent: In this company can transform their objectives and goals of the company.
Thus they can interact with all employees and they can easily tell them to to prepare strategies to
accomplish then. Hence they can organize training programmes so that they can get training
according to their skills and talent. Thus as a result they can increase their potential and skills.
Thus they can perform better and can give best results in their respected jobs.
Administration expert: These are the persons who can manage all activities and tasks of
the company. They modify all rules and regulations related to trade and health. They also stores
different information related to staff members in their computer database. Through this they can
easily evaluate the employees information. Thus they can give it to firm and thus company can
take relevant decisions.
Employee champion: These are the people who provide all rights and protect this in case
of employees in case if they are exploited. They tries to create more opportunity of all staff
members so that they can perform well. They organize training programmes and organize
motivational sessions and seminars so that all staff members are motivated and thus they can
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give good results. They also monitor the satisfaction level of workers(Taylor, Doherty and
McGraw, 2015).
In Aldi this model is very important so that they can organize various employees in
company and they can easily understand their roles.
Roles and challenges of line manager in delivery of HRM
HR manager performs various functions of human resource and they tries to manage all activites
of business.
Responsibilities
 They create quality of standards of all processes
 They select qualified employees
 Maintains good communication level with all employees
Challenges:
Recruiting skilled employees: Proper and defined criteria is to be chosen by HR
manager so that they can recruit qualified and educated employees. Through this they can
directly imp rive performance of workers.
Employee motivation: It is the toughest challenge for company to motivate employees.
They can be given rewards and incentives so that workers can be motivated and they can perform
activities in an efficient manner.
Balance between employees and management: Manager can create balance between
employees benefits and management. Management can offer salaries and wages,safety and use
various methods to motivate all employees. While employees can perform well and tries to
increase profits, maintain loyalty and cooperation with managers. (Shields, and et. al., 2015).
CONCLUSION
From the above report it has been concluded that strategic humans resource management
is important part in organization. Different HR practices and rules are followed by the company.
Different external factors can influence HR decisions and these use different methods used by
HR to organize various functions and their methods to deliver these policies in company.
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REFERENCES
Books and Journals
Banfield, P., Kay, R. and Royles, D., 2018.Introduction to human resource management. Oxford
University Press.
Brewster, C., 2017. The integration of human resource management and corporate strategy.
InPolicy and practice in European human resource management (pp. 22-35).
Routledge.
Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016.New challenges for European resource
management. Springer.
Chelladurai, P. and Kerwin, S., 2017 Human resource management in sport and recreation.
Human Kinetics.
De Lange, A. H., Kooij, D.T.A.M. and Van der Heijden, B. I. J. M., 2015. Human resource
management and sustainability at work across the lifespan: An integrative
perspective.Facing the challenges of a multi-age workforce: A use-inspired approach,
pp.50-79.
Marchington, M., 2015. Human resource management (HRM): Too busy looking up to see where
it is going longer term?.Human Resource Management Review.25(2).pp.176-187.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018.Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Reiche, B. S. and. et. al., 2016.Readings and cases in international human resource management.
Taylor & Francis.
Shields, J. and et. al., 2015.Managing Employee Performance & Reward: Concepts, Practices,
Strategies. Cambridge University Press.
Taylor, T., Doherty, A. and McGraw, P., 2015.Managing people in sport organizations: A
strategic human resource management perspective. Routledge.
Online
Roles and Challenges of Line Manager, 2017. Online available
through<https://www.thebalancecareers.com/role-and-challenges-of-a-line-manager-2275752>
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