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Unit 3 Principles of Human Resource Management Pearson EDEXCEL HND Business Management Level 5

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Introduction

The HRM is the main base of every company. In order to increase the business range, develop the service process and product quality and improve the employee's skill and the commercial site is under the control of HRM. Aldi is a retail company of grocery and founded in the year of 1993, in United Kingdom Aldi founded in 1990. The headquarters of this company located in Germany. This company has 7000 stores in 70 countries of the world and in the United Kingdom, 20000 people are working in the 500 stores. The aim of the company is to provide the best service to the customers around the world.

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1.1 Explaining the purpose and functions of HRM

The most vital post of every organisation is their human resource department. According to Mondy and Martocchio (2016, p.125), the business of every company grows with the perfect performances of the human resources management. The main responsibilities about the business process and the management of the business depend on the performances of the HRM of the company. The whole business process develops under the observation of the Human resources management. The HRM of the company selects the objectives of the company with the help of the whole management system. Hendry (2012, p.123) stated that the goals and the planning to complete the goal happen under the observations of HRM of the company. The team leaders need to follow the instructions and advice to conduct the goals successfully. In order to grow the business range widely in the world, there are the important duties of the HRM of the company to conduct the process. The selection process of the employees is conducted under the proper observation of HRM.

The process of monitoring the performances of the employees is also a big responsibility of the HRM. Apart from this to attract the customers to their products, the companies need to follow the proper process of the marketing system and the selection of the marketing process done by the HRM of the company. By the right choice and selection of the HRM of the companies, the companies can achieve their goal and reach the highest peak of success. In order to run the business process in the right way, the HRM of the companies needs to be creative about their work (Purce, 2014, p.214).

In the case of Aldi, the responsibility of the HRM is to keep control over the whole business. By the proper performances of the HRM, the company can complete their goal successfully. The growth of the business of Aldi depends on the HRM. As the employees are the backbone of the company, so depending on the perfect performances of the employees the company can provide the best service to the customers.

The performance level of the employees can be improved by the proper observation and cooperation of the HRM of Aldi. The training and the grooming process of the employees are conduct by the HRM. The main responsibility of the HRM of Aldi is to adopt the correct manner of training their employees in order to get the best performances of the employees. The process to deal with the customers is also conduct by the HRM. The HRM of Aldi instructs the employees the correct way to deal and the necessary thing of HRM of Aldi to have the pleasant attitude while dealing with both the customers and employees.

1.2 Explaining the strength and weakness of the different approaches to recruitment and selection of Aldi

In order to provide the best services to the customer, it is necessary for the companies to develop their performances level and the performance level of the company can grow by appointing the perfectly skilled employees (Brewster et al. 2016, p.54). To get the perfect employees for them, every company try to improve their recruitment and selection process. By adopting the perfect recruitment and selection process, the companies can get the correct employees and the team leaders for their company (Flamholtz, 2012, p.15). The perfectly skilled employees and the team leaders can increase the business process the company around the world and can make the popularity of the company. Dias (2016, p.21) stated that as the commercial profit of the companies depends on the performance and the product, quality of the company so in order to attract the customer every company needs to develop their service system.

In the case study help of Aldi, this company mainly recruits for their two posts including general employees and the team leaders. However, the required skill for these two posts is different but the selection process is same. For the post of the general employee, the candidates need to be a graduate and for the post of team leader the candidates besides graduate needs experience in this field of work. The recruitment and selection process of Aldi follows some stages. The first stage is the online process of selection. Based on the data that are sent by the candidates the first stage of selection, Aldi calls the selected candidates for taking part in the written examination. The pattern of written examination is different for the posts of employees and team leader. Depend on the result of the written test the candidates need to go through the personal interview. On the interview, the candidates are selected for the posts.

About the recruitment and selection process, the strength of this company is the process of written examination. By the written examination, the company can understand the knowledge of the candidates. The company selects the candidates who have the correct and proper knowledge. The weakness of the recruitment and selection process of the company is that this company has not the system to take the practical test of the candidates. By taking the written test, the company can understand the academic knowledge but the companies do not understand the skill of the employees. However, Aldi selects the experienced candidates for the post of team leader, but the company does not understand the proper skill of the candidates. Sometimes this process affects negatively on the performances of Aldi.

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2.1 Explaining the benefits of different HRM practice within Aldi

Armstrong and Taylor (2014, p.65) stated that in order to increase the business level, the important thing is to improve the performances. To provide the best service and best products all the employees, team leaders and the HRM of the company needs to give their best performance for the company. The improvement in the performance of the employees depends on perfect observations of the employees (Ferdous, 2014, p.87). Besides the employees and the team leaders, there are also various other responsibilities for the HRM. The duties of the HRM are to develop the whole business process and the commercial sites under the observation of HRM of the company.

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The total business process develops by the perfect effort of the HRM. The business process of Aldi depends on the performances of HRM of the company. The duty of the HRM of Aldi is to observe the performances of the employees, give proper instruction and advice to the team leaders. They need to train the employees, fix the objectives of the company, select goals and make planning to conduct the goal, the proper process of marketing and the methods to deal with the customers and to behave in a pleasant manner with both the employees and the customers (Madera, 2012, p.1276). The process is to expand the business range and the commercial sites under the observation of the HRM.

By monitoring the performances of the employees properly, the HRM of Aldi can get the view about the performance level of the employees and based on the performance of the employees, Aldi can select the correct candidates for their next goal and the company can arrange the system of proper training for the employees who are not performing well. Thus, Aldi can achieve their goal. To complete the goal there are the vital roles of the team leaders. As the team leader leads the team during the project, so with the proper instruction and the advice of the HRM the team leader can complete the goal successfully. To improve the performance level the role of the HRM is the most vital.

By selecting the objectives and the goals, the HRM can fix the proper schedule for the company. With the proper planning, HRM can take the company to the highest peak of success and the company can attract the customers by conducting the proper process of marketing. It is the main responsibility of the HRM to select the perfect process of marketing in order to build their popularity among the customers around the world.

2.2 Evaluating the effectiveness of different HRM practices in terms of raising Aldi

The performances of the HRM of the company's effects on the whole business process of the companies (Meijerink et al. 2016, p.219). Depend on the perfect efforts of the HRM the company can improve their product quality band the service system. In order to increase the business range widely in the world, the HRM of the company needs to provide their best performances. Thus, the companies can achieve the goals and reach to the highest peak of success. To grow the commercial profit of the business there is also the vital role of the HRM (Shaw et al. 2013, p.512).

In the case of Aldi, the HRM controls the whole business process. The selection of the employees and the process of monitoring is under the observation of the HRM. By selecting the proper employees for their company, Aldi can provide the best services to the customers. The selection process of the employees can affect both positive and negative on the business of Aldi.

By getting the correct instructions and advice from the HRM, the team leaders can give their best service. Therefore, this process of HRM affects positively on the business process. With the perfect goals and their planning, Aldi can achieve success, but the fall in the planning can damage the whole project. Therefore, the HRM need to review the planning before selecting the final planning. By providing proper training and grooming the HRM can improve the performance level of the employees (Spencer, 2013, p.346). With the proper training, the employees can provide their best report to develop the service system. The training process for the employees affects positively on the growth of Aldi.

In order to attract the customer, the HRM of Aldi uses the way of online marketing. Through the process of online marketing, Aldi can build the popularity of their product among the customers. To reach to the customers around the world Aldi uses the social networking system also. By making the proper use of the social networking sites like Facebook, the HRM of Aldi can reach to the customers around the world. It provides the positive effect on the service of Aldi.

Apart from this, it is also necessary for the HRM of the companies to use the proper methods to deal with the customers. As the customers are the main source of the commercial profit of the business, so it is important to satisfy the customers to make the perfect commercial profit. The process of dealing of Aldi With the customer are not perfect, this process impacts negatively on the business process.

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3.1 Analysing the importance of employee relation in respect to influencing HRM decision making in Aldi

Yang et al. (2015, p.1039) stated that for every company, the most important matter is the relation of the employees with the other employee, team leaders and the HRM of the company. A negative relation of the employee's effects harmful to the whole business process and interpret the companies to increase their business range. The negative relations of the employees also interpret the quality of the products of the company and the requirements of the customers (Chung et al. 2014, p.549). In order to provide the best services to the customers, the employees of the companies need to give their best effort and the best effort can be given with the help of the positive relations of the employees with the other employees, team leaders and the HRM of the company.

To provide the quality product, to develop the service system, to satisfy the customers and to grow the business range, the most important for Aldi is to maintain the positive relation among the employees, team leaders, and the HRM (Pereira and Anderson, 2012, p.223). To work together the employees need to maintain the positive relation with each other and it is the duty of the HRM to observe the relations of the employees with the other employees. By maintaining the positive relation with each other, the employees can provide their best effort and can get the information about the work. In the time of teamwork the team leader, instruct the employees, so it is important to maintain the good relation between the team leaders and the employees. By maintaining the positive relations, the team can complete the goal successfully. This process affects positively on the whole business and increases the business range and help to increase the commercial profit of the business.

On the other hand, to run the business successfully, HRM need to build the positive relation with the employees. With the help of the good relation, HRM of Aldi can able to find out the problems of the employees about their performances. The relation between the employees and the HRM of Aldi are positive. By maintaining this relation the HRM select the correct employees for the more vital goal can provide the required training to the employees who are not performing well in their work. In the case of making any plan and taking, any decision about the projects and goals the positive relations between the employees and the employees helps to find out the perfect plan and schedule. With the help of the positive relation, the HRM of Aldi can easily divide the responsibility of work among the employees.

3.2 Identifying the key elements of employment legislation and impact of it upon HRM decision making for Aldi

According to Ortega (2014, p.271) in order to follow the proper process, every company needs to follow the employment legislation to provide the best service. To get the proper performances of the employees the important matter is to provide the proper facilities to the employees. To run the business properly the companies should follow the rules and regulations that are created by the government. For the employee's safety and profit, there are some rules that are created by the government and the companies need to follow the rules. The rules about the employees are including Equal pay acts 1970 and National wage rate 1998.

Equal pay act 1970

The government in the year of 1970 created the equal pay act. The companies should follow this act in order to run the business properly. According to this act, no discriminations are allowed in every company. The company should pay the same to all employees who are in the same post of the company. This company is about the perfect right of the employees.

National wage rate 1998

The national wage rate acts created by the government in the year of 1998. The companies also need to follow this rule in order to satisfy the employees. According to this act, the employees get a minimum wage rate per hour. This is also the right of the employees.

In the case of Aldi this company follows these two rules in order to satisfy their employees and to run their business in the proper way. To get the proper business every company need to adopt the equal pay act 1970 and national wage rate 1998. To get the best performances from the employees it is necessary to satisfy the employees (Checchi and Leonardi, 2016, p.532). Besides these two rules, Aldi also provides some other facilities in order to get the best effort of the employees. As the extra facilities, Aldi offers the employee increment and the process of renewal in the case of the contractual employees. In order to motivate the employees about their performances the HRM of Aldi adopted the process of reward, as the motivational theory of the company. Based on the best performances the company provides the employee's reward and the reward can be in the form of money and promotion.

This process helps the HRM of Aldi to make the decisions quick. The process of employee satisfaction helps to improve the performances of the employees and to achieve the goals successfully. Thus, it becomes easy for the HRM of Aldi to select goals and to build plans.

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4.1 Illustrating the application of HRM practice in work-related context using specific examples from Aldi

Caligiuri (2014, p.63) stated that to get the proper result of the practices it is important for every company to apply the practices in practically. By applying the practices practically the company can develop the business process, the service system, and the commercial profit. To attract the customer towards their products can possible by using the HRM practices in the right way (Björkman et al. 2014, p.122). To improve the performance level the companies need to select the correct process of business development (Armstrong and Taylor, 2014, p.35).

In order to gets the perfect result Aldi applying the HRM practices. To provide the best services to the customers the company monitors the performances of the employees by using the various process of monitoring. As by monitoring the employees, the company can improve their service quality so Aldi adopted the new technologies. In order to get the successful project, the HRM of Aldi provides the proper information and advice to the team leaders. To improve the market value of Company, the HRM of Aldi adopted the online process of marketing and the social networking sites like Facebook. With the help of the online marketing and social networking, services Aldi can able to reach to the customers around the world.

In order to increase the sale of the products, Aldi builds the system of online shopping. The customers can buy the products of Aldi from the online sites and the company has the arrangements to deliver the product to the address of the customer. In order to deal with the customers, the HRM of Aldi builds the proper system to communicate with the customers. Aldi also builds the help desk system and by using this system, the customer can take information about the using process of the products of Aldi. On the other hand, the HRM of Aldi can get information about the requirements of the customer and as the requirement of the customer Aldi can improve and make changes in their product.

All the systems that are applied and adopted by the HRM department of Aldi are working well for the business process of the company. Aldi also receives positive feedbacks from the customers about their products and system. Thus, Aldi can build their popularity in the market and increase the commercial profit.


Reference list

  • Armstrong, M. and Taylor, S.,( 2014). Armstrong's handbook of human resource management practice. London: Kogan Page Publishers.
  • Björkman, I., Ehrnrooth, M., Mäkelä, K., Smale, A. and Sumelius, J., (2014). From HRM practices to the practice of HRM: Setting a research agenda. Journal of Organizational Effectiveness: People and Performance, 1(2), pp.122-140.
  • Brewster, C., Mayrhofer, W. and Morley, M. eds., (2016). New Challenges for European Resource Management. London: Springer
  • Caligiuri, P., (2014). Many moving parts: Factors influencing the effectiveness of HRM practices designed to improve knowledge transfer within MNCs. Journal of International Business Studies, 45(1), pp.63-72.
  • Checchi, D. and Leonardi, M., (2016). An Economic Perspective on Employment Protection Legislation and Labour Market Prospects. European Sociological Review, 32(4), pp.532-535.
  • Chung, C., Sparrow, P. and Bozkurt, Ö.,( 2014). South Korean MNEs’ international HRM approach: Hybridization of global standards and local practices. Journal of World Business, 49(4), pp.549-559.
  • Dias, L., (2016). Human Resource Management. Human Resource Management, 1(2)..pp.21-32
  • Ferdous, A., (2014). Recruitment and selection process of Square Pharmaceuticals Ltd.2(5).pp.87
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