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Human resource management main work is managing people in the organisation by proper formal system. Along with this there are several other roles and responsibilities in the company which perform by the same division. Major three functions are done by them training and development, staffing, recruitment and selection (Anderson, 2013). Several other area which are related with increasing productivity and profitability by utilising man power in best possible manner. Although HR always focuses on developing, acquiring, aligning the entire workforce in the company so that goal and objectives which is pre determined can be achieved by company is best possible manner. This entire assignment is based on ALDI which is retail sector business founded in 1913 on 23 June and founder is karl Albrecht, Theo Albrecht. Products serving by them are sanitary Articles, food, beverages and household goods. Below mention report explain function and purpose of Human Resource management in company. It also through light on strength and weakness of different recruitment and selection approaches with their benefits for employees and employers. This also defines effectiveness of HRM practices in organisation for increasing productivity and profit maximisation. Significance of staff member relationships and employment legislation which persuade HRM decision-making. It will exemplify applications of human resource practices in the administration.
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P1 purpose and functions of HRM that applicable for workforce planning and resourcing
Human resource management is department is full of activities like recruiting and managing people within organisation. HR manager of organisation hire and select candidate as per their skills and knowledge for filling vacant position in enterprise. They are responsible for selecting, recruiting and developing every individual staff member for achieving goals and objective of business. Main motive of HRM is to develop skills and knowledge of every individual employee’s by providing training and development session to them which results in increasing productivity and profit (Aswathappa, 2013). Human Resource manager perform several roles and responsibilities in the ALDI for maintaining and managing staff members as well as construct strong harmony system within them. It is very advantageous for the firm in enhancing growth and achieves competitive advantages.
Purpose of Human Resource Management
Human resource department play various roles and activities in the company as they focus on building effectual workforce and build strong relation within staff member. They usually try to make a proper bridge between workers and line management of the administration. ALDI is one of the most popular groceries retail business they manage their workforce in proper ways so that company can be handling in any critical situations easily (Brewster and Hegewisch, 2017). Manager of ALDI play various activities and perform functions with the motive of make healthy relations between staff members. So, that work productivity can be increase. Some purposes are given below:
- People management: HRM is famous and popular in company for managing people in an effectual manner so that better environment can be formed. This is a necessary for increasing productivity and profitability of the administration by using manpower in proper manner (Cascio, 2010). ALDI has a good image in the market main reason behind this is that manager always focuses on managing and maintaining staff member so that coordination and collaborations can be bring while doing any tasks or activities. Human Resource Management is also linked with several other division of firm also such as IT, operations, marketing and financial etc.
- Create better organisation culture: : It is the main purpose of HRM department to create as well as build healthy working environment so that whole tasks can be managed within systematic manner. In ALDI, manager always focuses on creating positive culture by handover or allocating every task between employees’s so that cultural differences can be avoid and manage.
- Law: There are various legislations and laws which are given by UK government and these are compulsory to be followed by everyone. These laws include labour relationship, employee’s legislation, union and negotiation which can influence decision making of HRM. Therefore, company is required to consider entire laws for making decisions regarding hiring, selecting as well as terminating any person within the firm. These activities can be done by considering legal rules and regulations and acts in an appropriate manner (Boudreau, 2010). Manager of Tesco plc also undertakes several employment legislations while making retirement plans, benefits of employees and many more decisions.
Functions of Human Resource Management
HRM normally consist number of activities and functions that are perform in the enterprise. It play major role in supervising the entire workforce and manpower so that productivity can be increased and objective and goals can be accomplish in a proper manner. Manger of ALDI always tries to maximise wealth with enhance volume of sales so that number of customers can be satisfied with quality of products and services (Chelladurai, 2017). Below mention are some functions of HRM in firm:-
- Recruitment and selections procedures: This is necessary function for filling vacant position in company with suitable candidate as per the required of enterprise. Recruitment and selection program conducted by HR manger of organisation for placing right person at right place.
- Employee relations management: Human Resource manager make sure about relationship between people within the enterprise that it should be effectual and positive. It is the ethical responsibility of manager to manage the relationship and harmony in the ALDI for creating better and proper group in the company.
- Training and learning sessions: It is an essential function of HRM in this employers design training and development program in the organisations for personnel’s. This entire activity assist in enhancing work productivity by brushing up individual’s skills or abilities so that they can perform in well manner and achieve pre determined targets.
- Orientation: This is a common function of human resource manager in this they conduct orientation program at the time of new employees joining in the organisation. It assists in interacting with every particular person so that they can understand and adjust in the working environment (Kerwin, 2017). Employers introduce new candidate with existing staff members and give guidelines to them that how they have to work for achieving goals or objectives.
P2 Strengths and weaknesses of various approaches to recruitment and selections
Recruitment and selection is not easy task because in this new candidate comes in company which can take it up-to it’s high and low. This is must necessary to take corrective decisions for creating effective team in organisation according to the skills and knowledge of individual person firm (CHUANG and Liao, 2010). Recruitment and selections is the procedure where particular person is selected as per their matching profile and abilities of doing work and also skills or knowledge. HR manager of ALDI always put their hard efforts for hiring talented candidate with the help of effective process. There are several approaches presents for recruitment and selections procedure that manager undertakes for hiring best person with matching their suitable criterion. ALDI also focus on reactive and pro-active attitudes while making decisions related to recruitment. Their main motive is to build a pool of applicants who are experienced and skilled so that latest innovative ideas can be create in the enterprise. Some approaches are given below;
- Job analysis: This is the first and foremost phase in which manager gather information about any vacant position in the enterprise. They make decisions related to conducting recruitment and selections program for filling vacant position by placing right person at right place. Manager considers numerous activities for hiring qualified and skilled candidates for better outcomes.
- Job Description: It is interrelated with information or detail about vacant position and job description includes important information or data such as salary, needed experience, task or work, role and responsibilities of supervisors so that interested candidates can be apply for vacancy.
- Person specifications: This point is most important because it describe what is required in person for the vacant position. Job specification is related to qualities, qualification knowledge, abilities and skills for particular job (Daley, 2012). It is associated with job descriptions that examine suitable person.
- Job posting strategies: It is the duty of HR department in organisation to frame proper strategies for the process of recruitment and selections. So, that suitable candidate will fill vacant position. Therefore, ALDI use best strategies or method for hiring eligible and interested candidate.
- Multi phase recruitment: It is also a finest systematic method which support in finding qualified and talented person which is suitable for the vacancy in the organisation (Fulton, 2011). It includes several methods of interviews such as face to face, telephonic round, examinations and several others for recruiting individuals.
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Strengths of recruitment and selections
- Internal method is best for hiring candidates in the company so that vacant job position can be filled without any delay.
- It is cost effectual and less time utilising techniques as there are no need of too much amount for conducting recruitment and selection programs.
- External recruitment is also a source that assists in developing unique ideas, innovations and creative thinking by selecting candidate for job from outside of a company.
- This procedure is very valuable for creating effectual labour force by attracting capable person towards enterprise so that goal and objective can be achieved in best possible manner.
- ALDI is focusing on hiring eligible and knowledgeable person who can handle any tasks in critical situations and complete work.
Weaknesses of recruitment and selections
- Sometime internal procedures are not appropriate for organisation as it put off fresh talents and innovations (Glendon, 2016). Main reason of this is to selecting candidates from inside firm.
- External method can be expensive and costly because in this funds are required for advertisements, media or any form of medium to give information or data related to specific job to the talented or interested persons.
- It can be long duration method because external recruitment has long procedure for hiring an individual.
P3 Benefits of HRM practices for both the employer and employee
Human resource management is very important for each and every individual person working in the firm. Various benefits and advantages are available for both as employee and employers with the help of effectual HRM practices in the company (Clarke and McKenna, 2016). Manager of ALDI always think about the effectiveness by managing people relationship and labour force in more suitable manner. Here are some benefits such as;
- Focus on tasks or assignment: Employer can recompense by dividing tasks or work into various small activities for getting done in effectively and efficiently. They try to find appropriate ways for completions of work in the well manner.
- Using work time: It is also benefit for employers with the help of HRM practices that they can use time as well as efforts for work completion in the company. ALDI implement several HRM practices for achieving its goals or objectives within specific time period.
- Reduce absenteeism: These are beneficial in reducing chances of absenteeism and motivate or encourage staff member for doing work in more proper manner. It is useful for ALDI in increasing growth and productivity.
Benefits for employees
- Experiences in new areas: It is the best benefit for employee because of HRM practices. Workers have opportunity to get more experience and enhance their knowledge and skills with the assistance of realisation related to new areas.
- Opportunities of training and development: workers have best opportunities to increase their knowledge or skills with the help of learning sessions (Guest, 2011). ALDI frame training and development session for increasing productivity and also profit maximisation by brushing skills of their employees.
- Personal satisfaction and cultural interest: HRM practices are supportive in providing individual satisfaction and their cultural interests in more effective manner.
P4 Evaluation of effectiveness of HRM practices for organisational profitability and productivity
- HRM practice includes several rules and regulations as well policies which must be followed in the organisation for its smooth working (Knowles and Holton, 2014). These tools and techniques are very helpful in controlling entire business activities and maintain labour force accordingly so that goals or objectives can be accomplished in better manner. ALDI undertakes all these for rising profitability and productivity by utilising several HRM practices.
- Setting of directions and implementation: It is the most important duty of manager that to give proper guidelines and directions to the staff member for attaining pre determined goals and objectives or targets in more efficient manner. Leaders take responsibilities for setting purpose, goals, missions or objectives in the workplace of ALDI. These will be support for enterprise in increasing their profitability and productivity.
- Excellent performer and innovative staff: This is also helpful for company as they can bring innovative and creativity ideas for performing task in more beautiful manner (Swanson, 2014). Leader and manager focus on bringing valuable atmosphere and optimistic environment for gaining particular targets.
- Individual and team goals by effective communication: HRM policies and practices also supportive in providing best method of communication for transient information or data to the staff member so that well defined goals and objectives can be achieved.
- Update skills and maintain productivity at workplace: HRM practices support in ensuring about needs or training and development so that learning sessions can be (Marchington, 2016). Tesco plc generally concentrates on updating its employee’s skills or abilities by training and development programmes to achieve competitive advantages.
P5 Importance of employee relations that influence HRM decision-making
For successful enterprise, personnel’s relationship plays a crucial role to achieving pre set goals. Manager considers the effectual relation between people for good collaborations and management within team members. It simple words this can be said that firm have to take care about their employees by offering those benefits and compensations according to their working. They should offer good working environment to staff members and encourage them so that output can be increased (Meredith and Belbin, 2011). ALDI provide support to their workers as Human Resource manager focus on encourage employees and motivate to them for doing work in more effective manner.
Sharing work: This help in doing work efficiently and also in more effective manner. It is can turn into more simple and effectual through better good relation as every tasks can be accomplish in less time by sharing these between people in an effective way. Sharing work is an essential that support in construction strong group and attain set goals or objectives.
Resolve conflicts: This is important to have good relationship between employees which will support in decreasing chances of conflicts and solve any issues or problems in more effective manner. Joint effort is very important for achieving well defines targets and achieves positives outcomes.
Employee’s loyalty: organisation can make their staff member loyal by various HRM practices in an effectual manner. For this, manager has to focus on building positive and healthy surroundings so that relation can be maintaining between employees.
P6 Key elements of employment legislation and its impacts upon HRM decision-making
There is several employment laws and legislation that formulate by government it is linked with organisation and their structure according to the nature of business. Most of the enterprises apply a proper hierarchy system for their business activities and good communications. Small scale organisation has limited structure of labour force so that workers can work together with each other in better way. Large scale enterprises generally have number of layers and enormous hierarchy structures which generate complexities in interact with every member of staff in the administration (Purce, 2014). Human Resource manager needed to consider the hierarchy system for providing essential information or data to the workers. ALDI consider this for forming better working atmosphere and effectual workforce such as;
- Equal wage act: This act says that company cannot do partiality or discrimination between their employees who are working with them. On the basis of their caste, race, colour, religion and gender. Hence, they should be equality treated for building positive working environment in organisation.
- Analyse position: This is a significant task which define particular vacant position with suitable required information. It is required to fill job applications, therefore administration focus on giving proper information to employees about their roles and responsibilities in the ALDI for achieving objectives and goals.
- Workmen's compensations act: This law was created for given that better compensation to the staff member of company. It includes various safety major linked with injury and accident that workers gets while task completion within an enterprise. ALDI offer proper compensations to personnel against of any harm and injuries.
- Minimum payment act: This explains related to minimum rate of wage which is constructing by government of every particular. ALDI has to consider this and offer equal wage or compensate to each and every individual working in company as per law.
P7 Illustrate the application of HRM practices in the organisation with examples
In organisation there are several functions which is performed by Human resource department. Major work doing by this division is to manage entire workforce in effectual manner (Scullion and Collings, 2011). Along with this many other activities are also their which is performed by HR manager such as recruitment and selection, performance appraisal, training and development etc. these all functions are performed by manager of ALDI for increasing sales in effective manner. Here some HRM practices which can be applied are given below:-
Job Analysis – It is an written statement in which all the details according to job title is given. Generally job description includes roles, responsibility, purpose, scope, working condition with job title as well name of the candidate and designation. It can be understood with the help of suitable example:-
Human Resource Executive
HR Administration office
Roles and Responsibilities
· Formulates policies and strategies of Human Resources.
· Keep record of attendance and management of staff members.
· Program for Performance reviews and appraisal conduction.
· Help in recruitment and selection process.
· Training and development programmes for new personel's or joiners.
MBA (Master degree in business administration)
1 to 3 years
8 to 10 lac per annum.
When job description is formed next step is using proper media for providing information related to particular job and vacant position. For applying this there is requirement of CV (curriculum Vitae). Below mention is the CV of the candidate which is given below:-
Curriculum Vitae (CV)
Career objectives: To grab opportunities for showing my talents in Human resource management field and achieve growth in the future.
MBA (Master in Business Administration)
2 year experience in HRM field.
Good communication skills
I hear by declare that the above information is true as per my experience and knowledge.
Recruitment and selection procedure – After taking suitable information about the candidate which is necessary for filling vacant position. HR manager conduct recruitment and selection process for selecting best candidate. This process includes several techniques such as interview, group discussion and examination. It is important process for hiring candidate.
Documentation - this is last step of verifying documents manager of ALDI collect documents of interested or selected candidate for further verification. These involve mark-sheet, Experience letter, ID proof and other necessary also. All these are necessary for getting proper information about the employee.
From the above assignment it has been concluded that human resource management is important for company. For managing day to day activity of business within the company which help in achieving goals and objectives. Major role perform by human resource department in enterprise is planning, staffing, directing, controlling, training and development, recruitment and selection for hiring candidate for brining new ideas as well thoughts in firm for achieving goals and objectives in better manner. HR manager is responsible for managing and maintaining relationship within personnel for creating health and positive working environment in ALDI.
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