Human resource management is considered as a heart of an organisation which are liable to take care of needs and requirements of every employees working in an organisation. Their main role in an organisation is to enhancing the overall personality of employees so that they are more capable of doing task in an effective and efficient manner. Out of many functions of HR managers, some functions consists of recruiting, screening, training and development programs for new as well as existing employees. Aldi, a UK-based multinational retailer company which deals in providing quality food and other products is selected for the purpose of preparing this report. The project covers the functions and purposes of HRM along with their effectiveness in achieving productivity and growth. Different legislations, HRM practices, benefits of employee relations has been also discussed under this report (Ployhart and Moliterno, 2011.)
P1: Purpose and functions of Human Resource Management
Human resource management is formed consisting of skilled and qualified members which are more capable to make an effective decision and plans for the betterment of employees. The main purpose of HRM is to fulfil human resource requirement in an organisation. Their function is to find out the new and effective ways of increasing the skills and knowledge of employees. For this, training and development programs are required to be conducted on regular basis. Therefore, Human Resource Management play a crucial role in the growth and success of employees.
Functions of Human resource management:
Recruitment and selection: It is main function that HR manager need to perform in an organisation. Recruitment is the process of inviting skilled and qualified candidates to apply for the vacant position offered by an organisation. As ALDI is already attained brand identity in market, thus to maintain their current image they need to make changes in their workforce through recruiting new candidates and promoting existing employees to higher position in company.
Orientation: This is such a program which is conducted with an objective to define goals and objectives of company towards the new employees and also gives an opportunity to employees to interact with each others in order to build good relation among between them. There are large workforce in ALDI thus it is important to maintain healthy relation among them in order to direct them to perform well (Bloom and Van Reenen, 2011).
Maintain healthy working environment: HR manager always tries to give maximum efforts in creating good working environment with a motive of bringing motivation and confidence among the employees due to which they perform better than before. As ALDI generated huge revenues every year therefore investing amount in giving financial as a swell non-financial benefits to the skilled employees will bring more profitable outcome to company near future.
Building employee relation: An organisation is totally based on the the performance of their human resource thus establishing good relation among them through creating proper communication channels and well co-ordination. Aldi employed huge workforce thus having good relation among between them will guaranteed achieving future success.
Training and development: Every organisation wants skilled and more knowledgeable employees which brings profitable outcome to them. Therefore, conducting training and development programs should required to be conducted for their employees on continuous basis so that the company can easily get support from them in achieving desired goals and objectives.
P2: Strength and weaknesses of different approaches to recruitment and selection
Recruitment is the process of inviting new candidates to apply for the vacant job in company after analysing their actual skills and knowledge with required skills needed by company for such position. On the other hand, selection is the process of giving legal employability after confirming that selected candidates have enough skills and capabilities to perform defined roles and responsibilities. Recruitment process to be done through internal and external approach due to which the company can get desired candidates who brings positive result to them in near future (Ployhart and Moliterno, 2011). Such internal and external sources of recruitment adopted by Aldi are described as below:
Internal sources: Under this the company offered existing employees to apply for the vacant job position in order to increase their position in an organisation. This can be done through analysing the past performance of employees. There are mainly two ways of recruiting within an organisation which are as follows:
Promotion and transfer: Promotion to the existing employees to get higher position in order to fill the vacancy available in an organisation. Along with higher position, additional roles and responsibilities has also be attached after identifying the skill and knowledge of promoted employees.
Employee referrals: In this, the employees are appointed to vacant job position with the help of using existing employee referrals. It an unethical way of recruiting as the promotion is given through taking consideration of existing employees.
- Cost saving as no need to invest in publishing advertisement of vacant job position.
- Increasing morale and motivation level of employees through promoting them to higher position.
- Motivates to workers to perform better than before (Crook and et. al., 2011).
- Need to educate them about higher position through giving training and development programs.
- Conflicts among employees who are not provide promotion in an organisation.
External sources: This approach of recruiting is mostly selected by multinational companies such as Aldi in order to obtain new and fresh talent within an organisation so a to achieve competitive advantage. Through adopting various practices such as online advertisement, publishing information about vacant job position in newspaper etc. Therefore, it consumes more cost and time as well.
- Company have large number of options due to which the chances of selecting qualified and skilled candidates are more.
- Welcoming new and fresh talent from the market in an organisation.
- In this source, the company totally ignores the existing employees to apply for vacant job position.
- Lack of support given by existing employees to new employees.
P3: Benefits of HRM practices within an organisation
HRM practices consists of different types such as training, learning and development programs, performance appraisal, flexible and caring management style etc. which brings motivation and confidence among the employee due to which they perform well for the betterment of an organisation. Therefore, HRM practices play an important role in improving the performance of employees. Aldi is one of the largest retailer company which has attained large workforce thus their performance are all depend of the performance of human resource (Bloom, and Van Reenen, 2011). Therefore, it must required to increase their motivation and confidence level so as to increase productivity and profitability. HRM practices includes:
Performance appraisal: It is a practice in which the employers giving appreciation to the employees through giving them reared, incentives, promotion to higher position etc. after analysing their actual performance with expected. This will increases the satisfaction level of employees.
Training, learning and development programs: There are large number of employees who works for the welfare of Aldi. Among various, there are more skilled and low skilled workers are founded which affects the performance of an organisation. Therefore, HR manager is held liable to identify the needs of employees and accordingly conduct training, learning and development programs fro them so as to enhance their capabilities and skills which brings motivation among them to work in an optimum manner.
Flexible working options: HR manager is held responsible to provide healthy environment at workplace and took all beneficial decision which maximises the satisfaction level of employees. For example, some employees are not comfortable in working in shifts as they feel unsafe and unrelaxed. Thus, HR managers should required to provide them flexible working options in which the employees has given an option to work in the shifts they want and compete their working hours too. It increases morale and performance level of employees (Alfes and et. al., 2013).
Apart from this, HRM practices brings many advantages to both employer and employees which are determined as below:
Advantages to employer: A company which is large in size such as Aldi has gained lots of benefits through HRM practices which are as follows:
Increase profitability: Implementing HRM practices doe the betterment of employees will brings positive result indirectly to the company in the form of increasing productivity and profitability. As if the employers work on increasing the skills and knowledge of employees then they will easily get maximum result from them which in results increasing profitability and productivity of company.
Trustworthy employees: HRM practices motivates employees through providing rewards and incentives on he basis of their performance which enhances their satisfaction level. Doing something for the betterment of employees will increases the commitment of employees towards the company. Therefore, it build trust among employees due to which they gives their services to company for longer period of time (Renwick, Redman and Maguire, 2013.).
Quality products ad services: Training and development programs will increases their knowledge of utilisation of available resources in production process due to which the quality products can be manufactured through minimising the wastage.
Benefits to employee: All such HRM practices are implemented in an organisation with an objective of maximising the interest and working behaviour of employees so that they can give their maximum efforts in achieving desired goals and objectives of an organisation. Following are the some benefits to employees:
Feel motivated: There are different needs of employees at workplace such as training, compensation, solution for their issues etc. thus if fulfil all such needs then it will bring motivation and self-confidence among them which improves their performance as well.
Promotion: HRM practices increases the knowledge of employees to perform their roles and responsibilities in an effective and efficient manner which increases the chances of their promotion in an organisation.
Personality development: HRM practices enhances the skills and knowledge of employees through conducting training, learning and development programs for them on regular basis which increases their overall personality. Due to which the employees can able to handle any situations with their own skills and capabilities (Lengnick-Hall and et. al, 2011).
P4: Effectiveness of HRM in increasing productivity and growth
The objective of Aldi is to increases their revenues and profits through providing quality products and service. To achieve this, the company focuses on adopting various HRM practices such as training, learning and development programs, reward system etc. which increases the skills and capabilities of workforce due to which they are able to contribute maximum efforts in achieving desired goals and objectives of Aldi. As if HR managers focuses on improving the performance of employees then it will directly make positive impact on the overall performance of an organisation. HRM practices includes flexible working options, and other kinds of payments and reward system which motivates staff members to perform best so as to achieve their own profession goals as well as organisational objectives. Providing training and development programs to the employees help them in gaining knowledge of utilising the available resources used in different process of business operations. For example, utilising resources in production process reduces the wastage due to which the company able to provide quality products and services at an affordable prices. This increases the sales figure as well as revenue of company thus earn huge profit. Therefore, it can be clearly said that HRM practices play a beneficial role in achieving huge productivity and profitability of company.
P5. Importance of employee relation and their influence in HRM decision making
Employee relations are very important in the management of operations if ITV. The meaning of employee relationship means that there should be a good and healthy relation between the supervisory level managers and employees. This relationship between employees and supervisors provide the management to effectively communicate the roles and responsibilities to the employees of the company to attain the objectives set by the organisation in a more effective and efficient way. Good relationship between the employees improve the working in a departments because of better coordination, which also leads to positive workplace environment (Sparrow, Brewster and Chung, 2016). It is very important to have an employee relationship in the management of the company which are discussed below:
- Decision making: Employee relationships help in the decision making of some important matters which requires the views of the employee while coming to a particular decision in such matters. Honest feedbacks and the views of the employee can only be attained if there is good relations between the management and employees. These discussions with the employees of the organisation can help the management in getting innovative ideas which help in the overall growth of the organisation. Also, if employees are asked for their opinions in the management then they can also advise the management in taking corrective measures whenever they are going wrong.
- Easy work performance: Good relations between the employees of the organisation helps them to communicate and coordinate better with each other which helps them to perform the work easily (Storey, 2014).
- Maintaining healthy relation with employees helps in creating good and friendly environment at workplace due to which the employees feels satisfied and give their more efforts in increasing the performance of company.
- Providing solution to the problems faced by the employees at workplace help in increasing loyalty and commitment of employees due to which they provide their service to company for longer period of time.
- A healthy relation among managers and employees helps in developing team due to which HR managers can able to make an effective decision and plans after collecting feedbacks and suggestions from their employees.
- It helps in attracting new employees as well after getting knowledge about the treatment given to existing employees. This will help company in attaining skilled and knowledge employees thus the chances of achieving desired goals and objectives within limited period of time will be more.
P6: Key elements of legislation act of employees
Employment legislation: It consists of various laws and regulations which directs an organisation to adopt in order to run business more smoothly. All such rules defined their roles and responsibilities of employers as well as employees. Therefore, during making an effective decision and plans such legal laws and regulations should required to be considered to implement within an organisation.
Therefore, Aldi should also required to be implement such laws and regulation in the company which help them in sustain in competitive market for longer period of time. Such laws and rules for the purpose of safeguarding the rights of employees are described as below:
Employment rights act: This act directs the employer of an organisation to give equal basic facilities to all employees and should not be discriminated on the basis of their positions in company. It also states that the manager of Aldi should required to provide quality right to employees regarding getting advantages of services they liable to get from the company (Berman and et. al., 2012).
Minimum wage act: According to this act, the employer of an organisation are liable to give at least minimum wages to the workers which is decided by the government in this regard. The rate may change by the government due to changing political and economical factor. Therefore, Aldi having large workforce should required to implement such act within an organisation.
Workers discrimination act: This act restricts employers and employees as well to not discriminate other workers on the basis of their religion, caste, colour, gender etc. as all employees holds equal rights. Giving equal chances for getting promotions help in improving the motivation and satisfaction level of employees thus need to be implemented such act by Aldi.
Equal pay act: This act states the employees attaining same position on company have right to get equal payment by the company. Such act is helpful in protecting the interest and Working behaviour of employees as if they found that any employee at the same position get extra payment from the company the it will may damage the loyalty and commitment of employees towards the company.
Working time directive: This act states that the employees who get legal employability in an organisation are liable to complete at-least 48 hours in a week. Otherwise they are not liable to get services and other facilities offered by the company. Thus, also need to be adopted such act by Aldi which are attaining large workforce.
P7: Different application of HRM practices
Aldi is one of the largest retailer multinational company which has operated in many countries due to which they have generated huge income and revenue. To achieve this, firm need to face various issues such as shortage of manpower, increment in number of customers complaints, lower quality of products and services (What is human resource management, 2017).
Training and development: It can be considered as the most essential element for firm which create value in attaining high growths and success of firm at market place. It is the prior responsibility of management to provide training to their new and existing employees in order to developing the skills and knowledge of people at work place. This create value in completion of organisational task in effective and efficient manner.
Create vision and mission: This can be described as the predetermined statement which plays effective role in providing a significant direction to the management to implement all organisational operations in effective manner as to attaining high growth and profitability.
Maintain quality of product: Addition number of buyers is one of the main issue which ALDI is facing and this can be handle by enterprise by evaluate performance of employees. In this modern and competitive business era customers are focused toward high quality products rather than the price so ALDI is concern on producing high quality products in order to fulfilling the desires of people at market place.
It has been concluded from the above project report that Human Resource Management play a crucial role in the development of employees which directly make positive impact on the overall performance of company. HR manager need to adopt HRM practices within an organisation which help in maintaining the healthy environment at workplace due to which the employees feels motivated and self-confidence. There are various legislations and legal laws formulated by government which need to be comply by organisation if they want to survive in competitive environment for longer period of time
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