The purpose of this report is to develop an understanding and knowledge in the context of strategic human resource management. This will assist in determining the effectiveness of such in enhance business productivity and profitability.
- Discuss strategic approaches to Human Resource Management in Aldi.
- Provide an application of academic theory over the given scenario of Aldi.
- Identify the positive and negative impact of HR management practices.
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.
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
- 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 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).
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 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.
3)Evaluation of ways in which HR functions are organized and practices and policies are delivered
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