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THL122 Human resource management

Table of Content



Human resource management deals with managing and controlling manpower of an organization in a structured and through manner so that they can achieve pre-defined goals and objectives within stipulated time frame (Armstrong and Taylor., 2014). It involve recruitment & selection, training and development, compensation and benefit, performance appraisal etc. It also assist in formulating effective HR policies and strategies related with satisfying diverse needs and wants of employees. This selected organisation for this report is ALDI which is a leading discounted supermarket chain located in Essen, Germany. The aim of this report is to determine various purpose and function of human resource management, strength and weakness of different approaches of recruitment and selection, benefit of HRM practices, key employment legislation and lastly effectiveness of different practices of human resource in terms of raising organizational productivity and profit.


P1 Various purpose and functions of human resource management

The HR department of any organisation is primarily responsible for managing and controlling labour resources in an optimum manner so that all business activities can be carried out effectively and efficiently. It mainly covers the field of hiring, retention, payroll setting, performance management, change management, training and development and taking of exist of workers from the company to round off activities. Employees are considered as the main asset of business entity and thus it is primarily important to protect their diverse needs and wants and promote welfare so as to retain them for longer period of time. As human resource is directly related with manpower needs, thus the department is mainly responsible for effective designing and execution of various procedures, policies and program that benefit both company and its employees at large. ALDI's is currently operating in more than 20 countries which means each country is having its own distinctive HR department who co-ordinate with each other just to ensure that each of its outlet get skilled and competent labours and earn higher profits and revenue (Berman and et. al., 2012). Some of the common purpose of Human resource Management are listed below:

  • Effective utilisation of resources: One of the primary purpose of HR department is to allocate and utilize resources in an optimum manner which enable company to fulfil diverse needs and wants of target customer in an effectual manner (Boella and Goss-Turner, 2013). ALDI stores gained popularity for its unique store layout which means they need to ensure that all products must be place properly so that customers can easily find them.
  • Recruitment: The main purpose of every association is to earn maximum profits and achieve pre-defined business goals in an effective manner. However in order to accomplish these purposes company needs to employ skilled and competent workforce who work incredibly hard towards achieving these purposes.
  • Employee Relation: Open and healthy working environment encourages strong relationship exist between manager and their sub-ordinates that makes much easier for ALDI to attain pre-defined goals within stipulated time frame.

In addition to that, certain functions of HRM also discussed below:

  • Training and Development: It has been believed that trained employees yield higher profitability ratio for the company. Therefore, it is primarily important to provide adequate training and development to workers that makes them more productive and efficient and also aid in their personal growth and development as well. ALDI is conducting training and development session for its employees on frequent basis so as to make them more competent.
  • Orientation: It is quite difficult for an employee to adjust themselves in new environment. Therefore, every enterprise arrange orientation or induction program for new candidates so as to make them familiar with the company.

P2 Strength and weakness of different approaches of recruitment and selection

Recruitment refers to the process of attracting ample number of candidate and stimulate them to apply for job in the respective organisation. Basically, it deals with searching skilled and talented candidate for a company. On the contrary, Selection deals with choosing most suitable candidate from the pool of applicants who all have applied for the given job vacancy in the company (Boselie, 2010). It refers to the procedure of selecting most competent and appropriate candidate for the company who with their effective skills, knowledge and ability achieve organizational goals and objectives in a structured and through manner. Recruitment can be classified into two categories one is INTERNAL and other is EXTERNAL.

Internal Source of Recruitment: It means when candidate is selected within the company only such as promotion, transfer etc. Various strength and weakness of Internal source of recruitment are mentioned below:


· Develop strong and long lasting relationship with employees

· Reduce loss of work

· Cost of recruitment is economical

· Increase employee morale


· Chances of creating conflict among existing workers

· Limit the choices

· Lack of fresh talent

· Promotion generate another vacancy in the company which means hiring one candidate results in recruiting two employee.

External source of recruitment: This method deals with recruiting suitable candidate from outside the company such as Walk-Ins, campus placement, employment exchange, advertisement etc. Following are the strength and weakness of external source of recruitment:


· Outside people brings more creative ideas

· Main advantage is selecting best candidate from the pool of applicants.

· Fresh talent have wider chance of experience.

· Environmental adaptability


· High cost

· Possibility of selecting wrong candidate

· Consumer extensive time and energy

Since ALDI operates in more than 20 countries, every year they give employment opportunities to large number of people and thus undertake both internal and external source of recruitment and selection approaches.


P3 Benefits of different HRM Practices

Human Resource Management include practices that is mainly related with the welfare of employees and results in making them more effective and productive (Boxall and Purcell, 2011). Some of the common HRM practices that ALDI deals in covers recruitment, firing, training and development, payroll, employee benefits and incentives etc. It is difficult to manage HRM practices in a systematic manner without effective organizational co-ordination. HRM practices play key role in improving the knowledge of managers and personnel that help them in attaining both personal and organisational objectives in an effectual manner. Following are the benefit of different HRM practices for both employee and employer are listed below:

HRM practices



Learning, development and training practices

Employees that are newly recruited can easily improve their skills and ability which further aid them in performing their job in an appropriate manner. It also enable them to learn how to deal with different situation.

In context of employer, training can assist them in enhancing their existing talent or skill which enable them to contribute more effectively towards achieving business objectives and goals. Also it assist in formulating better future strategies and policies.

Flexible working environment

It is important for ALDI to provide flexible working hour to its workers that motivates them to work incredible hard. For employees, it lead to increase the feeling of personal control over work environment and schedule, providing flexibility to employees by reducing overloading and reduces the chances of traffic.

In context of employers, it help in increasing their morale, reduce absenteeism, decrease employee turnover rate, increased the ability to hire outstanding employees and build long-lasting relationship with company and its followers.

Payment and Reward System

Paying attractive salary to employees help ALDI in keep them motivated and retain them for longer period. It also help in increasing their overall personality.

In case of employers, attractive salary and perks retain employer usually for longer period. In addition they start putting much efforts towards achieving business goals and objectives. It also assist in maintaining healthy work environment in the workplace that automatically improves employees productivity as well.

Employee performance management and monitoring

By monitoring the performance of workers on constant basis, company can effectively increase the overall performance and productivity of employees. One of the main objective of this HRM practice is to strengthen the skills, knowledge and ability of newly appoint candidate so that they can carried out task in structured and through manner. Also by monitoring the performance of workers, manager can keep an eye on their overall performance.

With the help of monitoring, employer can adequately learn additional things that help them in becoming extra ordinary or superior from other.

P4 Effectiveness of different HRM practices in terms of raising organisational productivity and profit

Different practices of HRM proves to be effective in context of raising organizational performance and productivity. Such practices covers training and development of employees, appraisal system, health and safety, compensation and benefit, healthy working environment etc. These practices contributes significantly towards achieving organizational goals and objectives in an effectual manner (Daley, 2012). Also it help in increasing the morale of employees & reducing employee turnover rate. As ALDI is a leading retail discounted super market chain that operates in more than 20 countries which means that large number of workers are working with ALDI that help them in meeting customer requirement in an effective and efficient manner. However, for managing and controlling all personnel together, they need to implement various Human Resource Management practices that motivates them and inspire them to work incredibly hard towards achieving task within stipulated time frame that has been assigned to them. In addition to that, it also help in putting positive influence on overall productivity and profit of respective firm. Implementation of different HRM practices in a proper manner assist firm in achieving higher profit by following prospective:

Innovative and High Performing worker: Proper execution of HRM practices promotes innovative environment in the company that help in increasing employee motivation. ALDI is providing healthy working environment that encourage their workers to carried out their task or duties in an appropriate manner. Also it help in maximising employee productivity and yield higher revenue for the firm as well.

Setting effective direction and its execution: The main role of HR Department is to formulate effective goals, policies, purpose, duties and objectives that mainly provide direction and guidance to ALDI's employees so that they can perform assign task in structured and through manner. It is important to put right candidate on right job based on their knowledge and skills. ALDI is assigning task to employees on the ground of their competency and education so that they can yield maximum profit and revenue for the company.

Effective reward drive performance: Performance of a worker is directly linked with rewards and benefits as it possess huge impact on employee overall work performance (Gospel and Sako, 2010). Therefore, it is essential for every company to acknowledge the work done by its personnel by paying them attractive salary and perks that keep them motivated and long-lasting with the company. ALDI is paying attractive pay roll to its employees on the basis of their work performance which encourage them to work more effectively and efficiently. In addition, it also aid in improving the overall performance of workers. When company value employee and their work by providing them extra reward in terms of incentives and bonus makes them feel more satisfied and dedicated towards the company (Heizer, 2016).

Non-monetary factors: There are various other factors that cannot measured in terms of money can be termed as non-monetary factors. It normally include sense of recognition, achievement, learning opportunities, praise,challenge etc. ALDI is providing non-monetary benefits to its workers that leads to raise their energy, motivation, loyalty and dedication towards work. In addition to that, effective utilization of such factors aid in generating higher profitability ratio.

Updating skills of workforce: In modern era, strong competition prevails in the market and in order to deal with market competition, it is essential to create a big pace of change. Simply it means updating or modifying skills, knowledge and ability of an individual on frequent basis that makes them highly productive and competitive in comparison with others. The HR Department of ALDI determine skills needs of employees and provide them training and development accordingly. Providing training as per employee's skill help in making them more productive and efficient. As a result, overall profitability and revenue of the company increases tremendously.


P5 Significance of employee relation

Every individual share special bond or relationship with their followers or sub-ordinates. They viably interact with each other so a decent relationship can be maintained among them. An interactive working environment helps in expanding inspiration among representatives which can't be estimated in money related terms (Hoque, 2013). Opinions of employees encourages supervisor in taking compelling choices. Thus, in ALDI, it is exceptionally fundamental that a decent relationship is keep kept up amongst administration and representatives. Great coordination and collaboration among them helps in fulfilment of an organizational objectives in a successful and effective way. Importance of employee relation is discussed below:

Easy working: If connection amongst administration and employees is great, at that point working turns out to be simple in an association. It diminish work load on single individual and guarantees auspicious completion of pre-defined task. In ALDI, managers delegate roles and responsibilities on the basis of their skills and knowledge so that, coveted objectives can be accomplish on time. Great connection between representatives increment their cooperation in exercises of firm and aides in basic leadership of chiefs.

Reduce conflicts among manpower: Good relations between workers drops down the odds of emerging clashes. It advances coordination and collaboration among specialists. They believe each other and work all things considered towards accomplishment of shared objectives. In ALDI, representatives consider their kindred individuals not as contenders, but rather as partners. It encourages supervisor in settling on better choices and results in higher profitability.

Employee Loyalty: Interactive and wonderful work surroundings of ALDI encourages in creating steadfast workforce. They play out their doled out obligations energetically as they feel spurred as a result of good connection between them. A sound work surroundings contributes a considerable measure in development and accomplishment of organization. It urge representatives to put their entire undertaking in accomplishing goals of firm and lead it towards high benefit and profitability.

Ensure equality by good communication: Managers of each association ought to guarantees that correspondence must be powerful. It helps in creating equity at working environment as it guarantees employee that there is no segregation happens inside big business in any point of view. It increment inspiration level of specialists and advance solid condition at work environment (Jiang and et. al., 2012). It straightforwardly impact their execution and empower them to play out their obligations viably. Legitimate correspondence framework helps human asset administrator of ALDI in taking powerful and right choices on time.

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P6 Key elements of employee legislation

There are certain kind of employment protection measures which are being taken for employment legislation following by every company like ALDI. Certain measures which can put up the certain kind of limit on hiring and firing of workers. Below described are some of common factors of employment legislation which ALDI has been following:

  • Equality: This kind of factor can be stated as highly essential factor for every kind of company who is dealing within marketplace. This has to be made sure that the labour resources in optimum manner along with cost effective (Marchington and et. al., 2016) .ALDI has the need of giving out equal kind of opportunities for all the workers without making any kind of discrimination on certain grounds like gender, race, religion and many more. Support is being given out for having healthy kind of relationship among workers and personnel. Along with this, it is highly essential to pay fair kind of wages and thus retain them for long tenure.
  • Data Protection: In this act, no confidential data can mainly be shared by employees of the respective company with nay kind of third person or any kind of party who has no link with company. If there is any illegal act, then appropriate action will taken. Hence, it is very necessary for the company like ALDI to be careful and thus use the data in specific and fairly related with the stated kind of purpose (Mok and et. al., 2013).
  • Health and Safety Measures: As per this kind of legislation, it is highly essential for every kind of company for protecting the interest of the employees which in turn can give out various kind of facilities which can give out benefits which gave them in physical and mentally. Example can be taken up of ALDI company which has mainly shown their concern for the employees of company regarding the healthy working environment which mainly includes the cleanliness, washing and drinking facilities, training and development sessions along with protective equipment etc.
  • Wages and Remuneration: According to this act, every organisation has the duty towards paying equal and fair wages as per the level of performance. There should be rewards which should be given as per the extra efforts which should be made for attaining aims and objectives of company effectively.
  • Working Condition: It is very essential for a company to conduct positiver and healthy working environment which in turn can give motivation for giving out high level of performance and attain objectives in effective manner (Nickson, 2013).


P7 Application of HRM practices

Some of common HRM practices that has been used by ALDI is discussed below:

Job Specification: It is statement usually prepared by concerned department that requires new candidate. It normally outlines roles and responsibilities related with current job opening, minimum qualification required, requirement of skills etc. It also describe minimum qualification require for current opening.


Organisation name:- ALDI

Job Title:- Assistant finance manager

Qualification:- Preferably MBA OR PGDM specialize in finance

Essential criteria:-

· Complete daily targets within given time period.

· Maintenance of financial data in proper and systematic manner.

· Handle all complex problems and issues in an effectively.

· Deep knowledge and understanding of all accounting policies.

Desirable criteria:-

· Minimum experience of 3 years required.

· Effective intellectual and communication skill.

· Adequate knowledge about current financial situation in the market


Job Description: It is a general document that signifies duties, roles and responsibility of a person related with specific role or position. It include all essential aspects that needs to be taken into consideration while recruiting and selecting new candidate.


Organisation Name:- ALDI

Division:- Finance department

Location of job:- London, UK

Summary of Job:

ALDI is looking for skilled and knowledgable person who effectively fulfil all requirement and roles of Assistant Finance Manager. Candidate must proper understanding and knowledge about all financial instrument, policies and measurement on basis of which they will carry out task appropriately. .

Roles and responsibilities

· Compliance of all laws and regulations related with finance.

· Maintaining peace and harmony in work environment.

· No sharing of financial data with any third party.


Curriculum Vitae

Name:- xxx

Address:- xxx

Contact No:- xxx

Profile Specification:- Require a PGDM or MBA holder specialise in finance stream, having a minimum experience of at-least 3 years or more. Candidate must be effective communicator with adequate knowledge of all accounting principles and techniques.

Specialisation:- Must hold degree in finance field

Working experience with reputed finance firm

Educational qualification: -

· Bachelor in Commerce

· Masters in Business administration specialization in finance sector


I hereby declare that all the above information provided is accurate and best of my knowledge.




According to the above mentioned report it can be concluded that the growth and development of any business association depend upon how effectively their employees are working or contributing towards achieving organisational goals and objectives. Skilled and talented employee can be hire through both external and internal source of recruitment. In addition to that, there are different HRM practices such as training and development, compensation and benefits, orientation that provide benefit to both employee and employer on vast level. Also it aid in carrying out all business activities and operation in a structured and through manner. Further it also highlighted importance of employee relation which is very crucial and beneficial for both employer and personnel.


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  • Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality, tourism, and leisure. Routledge.
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