Human resource management is concerned with developing the interest and working behaviour of employees with the hope of maximising their contribution towards organisational goals and objectives. Such development can be made through adopting various HRM practices which includes training and learning programs, rewards, performance appraisal etc. ALDI, a UK based supermarket chain which is engaged in providing grocery products is selected for the purpose of study. The present assignment report includes the purpose and function of HRM, strengths and weaknesses of recruitment approaches, benefits of HRM practices, advantages of maintain healthy relationship with employees and application of HRM practices within an organisation. The role of HRM practices in increasing organisational profits has been also discussed under this report. All such aspects are briefly explained under this report with the context of Aldi (Anderson, 2013).
P1: Purpose and functions of Human resource management
Human resource management is usually focuses on finding out the better ways of improving the skills and knowledge of the employees employed in an organisation. Therefore, HR manager should required to first conduct research through which they are able to identify the needs and requirements of their human resource and accordingly make further corrective actions to fulfil them as quickly as possible within limited period of time. As thinking for the betterment of employees will directly make profitable impact on the company’s performance thus it must required for an organisation to improve the performance level of their employees so as to get maximum contribution from them. Due to this, HR Manager required to perform several functions which are briefly explained as below:
Recruitment and selection: It is the primary function of HR management to fulfil the human resource requirements in an organisation through adopting various approaches of recruitment process and selection. As Aldi is one of the largest grocery retailer in United Kingdom which deals with large number of customers every day. Therefore it is must required for an organisation to have sufficient number of employees so as to deal with large number of customers and make efforts in maximising their satisfaction level. Thus, it is important for HR manager to recruit and select well knowledge and skilled candidates on the basis of their experience and communication skills so that they can get effective services from them (Bloom and Van Reenen, 2011).
Orientation: It an effective planning made by HR managers with an objective of eliminating communication gap between them and employees. It is such a program which must be conducted by an organisation on regular basis in which the HR manger describes company’s mission, vision and objectives of Aldi with the hope of getting maximum support from them. All the policies and regulations are also explained in this program so that employees can follow such rules while working at workplace.
Creating healthy working conditions: The employees can give their maximum contribution only when they get a healthy work atmosphere where no barriers and difficulties are present in the process of performing business activities. It can be done through providing an effective techniques and proper guidance to the employees so as to overcome the issues faced by them at workplace.
Training and development: It is one of the types of HRM practices which are essential to adopt by Aldi in order to enhance the performance level of employees. Dealing with lots of customers every day is not an easy task thus it is essentially required for an organisation to educate their employees that how to treat customers and influencing their buying behaviour towards purchasing their products and services (Cooke and Saini, 2010).
Managing employee relation: In order to maximise the performance level of employees, it is must required for HR manager to make proper communication and coordination with their employees and ask them for any suggestions and views in order to make an effective business decision. This will help manager in maintaining healthy relationship with their human resource.
P2: Strengths and weaknesses of different approaches to recruitment and selection
Recruitment and selection is an essential need of every organisation with the help of which they have attained skilled and knowledgeable employees who contributed their more efforts in achieving desired goals and objectives. Therefore, HR managers are wholly liable to fulfil human resource requirements through following different recruitment approaches and selection. It can be further defined as below:
Recruitment: It is a practice of giving job opportunities to the candidates through inviting them to apply for the vacant job position offered by an organisation. Such invitation can be made through giving advertisement in Newspaper, Pamphlets, company’s website etc. Such recruitment process can be done through internal and external approaches which are described as below:
Internal approach: Using such approach, HR manager has focuses on recruiting candidates among existing employees within an organisation thus HR manger no need to give many efforts in identifying their skills and knowledge. They need to just anise their actual performance through comparing their past with standard performance and on the basis of which decision should be made to recruit them to higher position or not. Under this approach, the existing employees are recruited in the form of:
Promotion and transfer: It is related with giving higher position to employees on the basis of their past performance in an organisation. As promoting to higher designation will includes additional roles and responsibilities thus HR manager need to concentrate more on the capability of employees in order to perform such additional roles in an effective and efficient manner (Farndale, Scullion and Sparrow, 2010).
Employee referrals: It is also one of the ways of recruiting candidates with the help of referral given by existing employees. In this, the relatives and family members of existing employees are giving more priority for the purpose of recruitment so as to strong commitment of existing employees with an organisation.
- No need to advertise the vacant job position offered by an organisation thus saves cost and time of company.
- Giving priority to existing human resources instead of new candidates who maximises their interest and working behaviour.
- Retain existing qualified and experienced employees for longer period of time.
- Due to restricting new candidates to apply for the vacant job position, the company fails to get new and innovative ideas of executing business activities.
- Promoted employees may be over-confident due to which their performance level may decrease (Huselid and Becker, 2011).
- Conflicts may arise between promoted and non-promoted employees.
External approach: It is such a recruitment approach in which HR managers focuses on recruiting people outside of an organisation with the purpose of entering new talent and techniques within an organisation. Aldi is a multinational UK based company which deals in maximum number of customers which comes from different culture and backgrounds. Therefore it is important to hire new candidates who are having different cultures due to which they can easily achieve huge customer strength throughout ht world.
- Such recruitment approach is more suitable when an organisation is opening new outlets in different countries.
- Large number of applicants increases the chances of recruiting skilled and knowledgeable employees.
- Can compete with rivals through inviting new and fresh talent within an organisation (Kehoe and Wright, 2013).
- Dissatisfaction among existing employees which make negative impact on their performance level as well.
- Due to existing employees, the working environment are not enough good for new employees.
P3: Benefits of HRM practices within an organisation
As every organisation wants to have an effective human resource who are capable to deal with any complex situations and challenges so as to achieve maximum possible result. For this, HR manager need to focus on adopting various HRM practices which includes performance appraisal, training and development programs, flexible working etc. These all practices plays an important role in enhancing the performance level of employees thus brings beneficial result to company. It is essential for an organisation who are employed large number of employee such as Aldi to implement such practices for the betterment of their employees as their growth and success are depend on the performance level of their human resource. To motivate and maximising the interest and working behaviour of employees, adoption of different HRM practices are must. Following are the some HRM practices along with the benefits to employees and employers (Ployhart and Moliterno, 2011).
Performance appraisal: It is an activity of giving appreciation to the employees after analysing their past performance with an objective of motivates them to perform better than before. Such appreciation can be in the form of giving rewards, promoting to higher designation, incentives etc. which help company in retaining experienced employees for longer of period.
Training, Learning and development programs: It is essential for every organisation irrespective of size whether small, medium or large to conduct different programs which gives support in enhancing the performance level of employees. Such programs include training, learning programs which increases the knowledge of employees about execution of different business activities in more effective and efficient manner. Therefore, such programs should be conducted on regular basis in order to achieve maximum outputs from their employees.
Flexible working options: It is based on the willingness of employees to perform business activities in what working hours so that they can give maximum contribution in achieving desired goals and objectives. HR manager should require to give flexible working options to their employees through which the employees can work as per their willingness. For example, some employees want to work on daily shifts whereas some are willing to work on night shifts.
Benefits to employer:
Increasing profitability: Adoption of different HRM practices maximising the performance of employees which results in getting profitable outcomes to company. Thus, it becomes easy for employer to giving direction and guidance to their employees as they are much qualified and knowledgeable after conduction of training programs (Renwick, Redman, and Maguire, 2013).
Trustworthy employees: Implementing activities and programs for the betterment of human resources increases the commitment of employees towards an organisation. It also help employer in retaining experienced employees for longer period of time thus company can get valuable contribution from them on regular basis.
Quality products and services: Increasing knowledge of employees about how to utilising available resources will help company in providing quality products and services at affordable prices.
Benefits to employees:
Feel motivated: Various HRM practices such as training, learning and development programs play an important in bringing motivation and self-confidence among employees due to which their performance level are also improved. Providing appreciation for the work done by them is also another way of motivating employees to perform future business activities better than before (Tarique and Schuler, 2010).
Higher promotional chances: Training and development programs enhance the skills and knowledge of employees about different field areas through which their chances of getting promotion in company are more. It means the value of employees has been increased thus can be easily get job without facing any difficulties.
Personality development: HRM practices teach employees how to deal with upcoming challenges and issues in more effective and efficient manner. Therefore, they are more capable in dealing with complex situation thus can perform any task in more profitable manner.
P4: Effectiveness of HRM practices in increasing productivity and profit of organisation
Profit is the main objective for which all business activities have been performed within an organisation. Therefore, to achieve such objective an organisation should required developing HRM practices and implementing them in more effective and efficient manner. Such practices play a valuable role in helping company to gain huge profits and productivity. Through HRM practices, the management are able to assign roles and responsibilities after identifying the skills and knowledge of employees which results in achieving productivity and profit. There are several HRM practices which must required to adopt by company to achieve growth and success in competitive market. Such HRM practices include:
- Training, learning and development programs
- Performance and reward system
- Talent management
- Employee relation
- Career growth and planning
All such practices help in improving the abilities and skills of employees due to which they are able to perform quality work. This will bring benefits to company in terms of productivity and profitability (Wagner, 2011). The management of Aldi is required to understand the important of such practices due to which they give more efforts in implementing them at workplace on regular basis. As Aldi is multinational retailer company of United Kingdom which has operated business operations on large scale therefore it should required for management to maintain healthy relation with their human resources with a hope of getting maximum support from them in achieving desired goals and objectives. If the company successfully adopts such HRM practices then it makes good impact on different sectors such as financial, legal, organisational etc.
P5: Importance of employee relations in respect to influencing HRM decision making
Employee relation: It is an efforts made by management of an organisation to make good relation with their employees with an objective of gaining maximum support from them in operating different business functions. It will also help in retaining experienced employees and commitment with an organisation for longer period of time. It can be done through resolving issues of employees after identification, providing them an opportunity to take participate in decision making process, collecting feedbacks etc. It will bring motivation and self-confidence among employees which results in increasing performance of employees as well as an organisation (Wright and McMahan, 2011).
Importance of employees relations:
- There are various advantages an organisation can get which are determined as below:
- Maintaining good relation with employees minimising the chances of misunderstanding and conflicts among employees.
- It is helpful for management in assigning roles and responsibilities through communicating them regarding their willingness to work.
- It motivates existing employees to work in a team and gives combined efforts in achieving desired goals and objectives.
- It helps management in creating healthy working environment which makes positive impact on the performance of employees.
- Maintaining good relation with employees attracts lots of new candidates due to which they are also show their willingness to apply for the job in an organisation.
- It will overall help company in achieving its desired goals and objectives within pre-determined period of time.
Therefore, if HR manager of Aldi makes efforts in maintaining good relation with their human resource then it will bring positive outcome to company. It makes the employees more trustworthy due to which they can accept additional roles and responsibilities for the betterment of an organisation. Thus, it is essential for HR manager of Aldi to maintain healthy relation if they want to achieve success and growth for an organisation.
P6: Key components of employment legislation and its impact on HRM decision making
Employment legislation: It includes various laws and legislations made by government of United Kingdom for an organisation operated at such country. The main purpose of formulating such legislations and laws is to protect employees from any discriminations and violence in an organisation. Thus, it is the responsibility of management of Aldi to implement such laws in an organisation in order to run business more smoothly. Such legislation laws and acts are described as under the following:
Equality Act, 2010: Under this act, the management has given strictly direction to treat their employees equally and should not be partial on the basis of their position in company, age, gender, race etc. If any such activity has been done within an organisation then it will damage the interest and working behaviour of employees which in result decreases in profits and productivity. For example, during promotion, qualified employees have been rejected due to not having good relation with the management of an organisation.
Working time regulation act, 1998: Such act states that the managers have no right and power to stop their employees in an organisation more than working hours as it will brings disadvantage to company as well. Du ton having any reason, the manager are not allow to force their employees to work more than the normal working hours. The managers are also liable to give some time to employees for relaxation in order to reduce their stress and workload (Human resources. 2017).
Health and safety act, 1974: It is such an act which is made with the purpose of maintains good health of employees while working at workplace. Sometimes due to negligence, the employees may indulge in any accidents which affected their health on adverse basis. Therefore, it is important for management of Aldi to implement safety equipments such as fire extinguisher in order to protect employees from any hazards and contribute gives their valuable services to company for longer period of time.
Data protection act, 1999: It is such an act which is made by government with the purpose of directing company to record and protect their crucial and important data regarding strategies, customers and employees’ information etc. Such act informs management to store data in such a confidential way that should not be leaked to outside parties.
Minimum wages act, 1998: It an act which is made to direct management of Aldi to provide fair remuneration to their workers for the services they get in return. Such act informs the minimum wages that must be paid by management to their workers who are getting legal employability of company. This will help in protecting employees from any exploitation.
P7: Application of HRM practices in a work-related context
As employees are determined as the main asset of an organisation thus need to be take care of their needs and requirements at workplace. It is the responsibility of HR manager to apply HRM practices in an organisation which play an important role in enhancing the performance of human resource. At present, the revenue of Aldi has been decreased and employee turnover has increase which requires from management to adopt an effective HRM practices at workplace so as to recover from downfall and attaining stable position in competitive market. Therefore, the managers of Aldi are required to apply HRM practices in following areas:
Planning of manpower required: HR manager need to identify the requirements of human resources in an organisation and accordingly make an effective recruitment plans and strategies so as to attain more skilled and knowledgeable candidates has been employed for an organisation. It helps Aldi in operating business functions in more effective and efficient manner (Functions of HRM. 2018).
Decision making: It is the responsibility of HR manager to identify the issues and problems faced by human resource at workplace so as to resolve them as quickly as possible. It can be identified through conducting research within an organisation and collecting feedbacks and suggestions for the employees in order to make effective decisions.
Development and training of employees: Sometimes the employees failed to execute allotted business activities in an effective and efficient manner due to having less knowledge and capabilities. Therefore, it is must required for management to conduct training and development programs for them with a motive of providing an opportunity to employees in order to develop their skills and knowledge so as to perform different business functions in better way.
Maintaining the quality of business products: As Aldi deals in providing grocery product which should be optimum in quality which help in enhancing the standard of living of people. Therefore, HR management should required to teach their employees through adopting HRM practices that how to utilise available resources in an optimum manner so as to produce quality products and services. It will help in attracting large number of buyers to purchase their products and services.
Performance evaluation: It is must required to identify the actual capability and skills of employees due to which allocation of roles and responsibilities can be done in proper way. It can be done through comparing the actual with standard performance which help management to identify the low skilled and high skilled workers.
Creation of vision or mission: It is important for management to communicate company’s mission and vision to employees through conducting orientation programs which brings motivation and self-confidence among them due to which they perform in best possible way.
It has been concluded from the above project report that HRM is considered as valuable department of every organisation which are responsible to fulfil the requirements of human resource in an organisation. Aldi can achieve growth and success in competitive market environment when they have skilled and knowledgeable human resources which are more capable to give maximum efforts in achieving desired goals and objectives. There are internal and external approaches of recruitment process through which qualified and skilled candidates has been selected. Maintaining healthy relations with employees are also brings maximum advantages to company which results in increasing profit and productivity. Various HRM practices and legislations laws are also required to be implement by management in order to operate business in more effective and efficient manner.
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