The objective of this report is to analyze Human resource practices that can assist in an organisation to develop skilled and professional workforce. The objective of this report is to carry out management related activities in order to develop effectiveness at workplace.
- Evaluate the scope and purpose of HRM in talent and skills development practices for Aldi.
- Determine the effectiveness of crucial elements of HRM in Aldi.
- Determine the internal and external factors that has a direct impact over HRM decision making.
- Discuss the human resource management practices in the work-related context of Aldi.
Human resource management forms the integral part of any organization as it undertake and control some of the most prominent functions of management i.e. planning, organizing, recruitment and selection, employee compensation and so on that are of vital importance for firm to maintain and develop its profitability and productivity level (Human Resource Management, 2018). HRM is a formal system of management whose major responsibilities are to manage a business most valuable assests -its People, both customer as well as employees (Anderson, 2013). Thus, Hrm formulate and implement those policies, procedures and strategies that helps a company to achieve its objectives by utilizing the efforts of its employees to satisfy its customers and generate maximum output.
Aldi is one of the top most leading discount supermarket chain dealing in daily necessary household commodities, dairy products, vegetables, beauty products, kitchen appliances and so on. It was established in 1960 with its base in Germany and currently has its operations running in more than 10,000 stores in 20 countries across the globe.
This assignment will cover a brief explanation about role and responsibility of HR manager along with various HRM practices and their benefits. Moreover it will give synopsis about various approaches with their potential strength and weakness that a management can apply for enhancing its relations with its employees. It will also brief about the importance of employee relations along with certain legislations that are enforced by government for protection employees right.
P1 HRM Purpose and Functions
Human resource management forms the backbone of an firm as it plays critical role in converting the limited available resources into maximum returns by managing its employees (Armstrong and Taylor, 2014). As business deals in a dynamic environment with a number of competing factors to affect its profitability HRM tries to maintain an edge over its competitors by enhancing its internal factors. Thus, it formulates those strategies that helps them to maintain amicable relations with its employees. It is because a committed workforce serves as a cornerstone for a firm enabling it to accomplish its targets by providing customer satisfaction. Therefore a dedicated,proficient employee is worth retaining s the work efficiency, skills and knowledge of a person cannot be substituted in this competitive business environment.
Aldi being global leading firm maintains a workforce of more than 30,000 employees who manages its operation in more than 20 nations. The Human resource management of Aldi ensures that it has a proficient employee, at right job at right time whenever his services are required. Its employees forms focus of center at the time of preparing any policies, procedures in a such a way that it is in perfect alignment of firms objectives with personal goals of an employees profile hat they have a proficient employee, performing right kind of job should be presented at the right time when he is required (Aswathappa, 2013.). The mangers of Aldi puts their employee in the center of focus while formulating any policies and procedures keeping in mind that there is perfect alignment of organization goals with the individual objectives so as to maintain cordial relationship between the employees and management.
- Recruitment and selection: Hiring process forms the foremost process of human resource management as it deals with hiring most appropriate employee for the job vacancy by thoroughly identifying the job profile requirement, selecting few chosen applicants, screening and interviewing them to find out their capabilities, skills and knowledge and then matching it with particular job position. It is a critical task as a firm's success totally dependents upon efficiency of its employees and any misfit candidate can negatively impact its productivity and performance
- Orientation: It is a formal programme that is organized by management to introduce a new employee with its fellow members. Orientation helps an employee to get familiar with policies, procedures, responsibilities, roles, work culture etc. related to business enterprise enabling him to get accustomed and adjust in new work environment (Batt and Colvin, 2011).
- Managing employee relations: Employees forms pillar of a business, a crucial factor behind the success and growth a firm. Thus it becomes essential as well as profitable for a company to have a harmonious relation with its people. To maintain and develop this understanding HRM conducts various team building activities with employee which help in developing coordination, mutual trust and respect among employees themselves and between workers and management too.
Mentioned above are certain functions which Aldi follows for managing its workforce with efficiency ensuring timely achievement of all its goals giving maximum returns. Mentioned below are scopes of human resource management:-
- Planning about company's human resource
- Job analysis and Designing
- Appraisal of employees performance
- Planning out Compensation and Benefit schemes
There are variety of approaches to manage HR in a business. Two main approaches are,
- Hard HRM- This approach is mainly concerned with getting work done from employees any how and treats workers as machines (Beardwell and Thompson, 2014). It follows a autocratic leadership style wherein there is minimum communication between top and down levels of management and workers ned to follow orders as per instructions generated from higher authorities.
- Soft HRM: This approach believes in democratic style of leadership treating employees as most valuable resources of a firm generating maximum returns for company and helping in maintaining competitive edge over business rivals. The management maintains two way communication giving opportunity to its employees to participate in decision making process. .
P2 Strengths and weaknesses of different approaches to recruitment and selection
Recruitment and selection functions forms the basic and most significant aspects a business crucial for its growth and development (Berman, Bowman, and Van Wart, 2012). Recruitment is process of attracting , short listing, and approaching most appropriate candidates whereas selection is concerned with interviewing the selected candidate and evaluating his capabilities, skills and knowledge in reference to job profile criteria by applying certain psychological and aptitude tests (Recruitment and selection process, 2018).
There are two main recruitment sources and are mentioned below:
Internal sources: It is describes as recruiting an employee from within organisation by the means of transfers, promotion and other means. Transfer refers to shifting an employee from its current job to other similar or different job. Promotions is shifting of a individual from its present job position to a higher level with higher responsibilities, better prestige and more pay.
Advantages of internal sources:
- It enhance employee morale and loyalty.
- It is less tedious and less time consuming in hiring an employee from within a firm as management ned not follow whole process from screening to orientation (Bloom and Van Reenen, 2011).
- It is less risky for an organization to recruit within as an employees background, performance level, areas of specialisations and lacking are already known to manager.
Disadvantages of internal sources:
- It lead to internal conflicts among employees.
- It limits organization choice of talent a sit restricts entry of new and creative ideas from outside more proficient person.
External sources: It is the process of hiring the most appropriate, potential an proficient candidate from outside and organization (Bröckermann, 2012). It mainly include sources like placement agencies, employment exchange press advertisements, campus interview, walk in interviews and competitors.
Advantages of external sources:
- Best and most appropriate candidate could be hired according to specification of the job profile
- It promotes entry of fresh , innovative ideas as well as to give advantage engaging insight of other business rivals strategies.
- It induces existing employee to give their best efforts thereby promoting healthy competition.
- Disadvantages of external sources:
- It is a time consuming process requiring lots of efforts, resources of company to be spent on new employee on its orientation, training and development programme.
- It is risky for company to hire people from outside as skilled employees can switch to other firms.
P3 Benefits of different HRM practices for both the employer and employee
Human resource management is identify as an important and necessary part for the all organisation in order to maximise their profitability and accomplish competitive edge over others. In this business they play vital role in preventing risk or difficulties which can effects on company productivity and functioning (Coff and Kryscynski, 2011). Effective practices of human resource should be implemented to gain long term objectives and goals effectively. There are different practices which are benefited to the employees as well as employer also. These are explained as below:
Human resource practices for employer: There are certain practices of human resource which benefited to the employers. These are identified as below:
Performance Appraisal system: It is essential and important part for an enterprise which assist in identifying the employees behaviour. A better system not only destroy work related problem or bad behaviour but also encoura