Human Resource Management is an strategic approach for effective management practices that help an organisation to gain competitive advantage. It is practice of recruiting, hiring, developing and managing organisation employer as well as employees. In general, Human resource management is concerned with hiring, motivating and maintaining workforce within business. One of its primary function is engaging employees, needed to accomplish determined gaols and objective of an organisation (Foster, 2014). In this report, the organisation chosen is ALDI one of largest brand of Germany. A family owned discount supermarket chains over 10,000 stores over 20 countries founded in 1946. This report is going to analyse purpose and function of HRM, applicable to workforce planning and resources. Its strengths and weakness of different applicable approaches and benefits of HMR practices as well as evaluating them in an organisation. Moreover analysing importance and key elements between employer and employees that is influencing relationship among them or impact of decision making process. Further, evaluating HRM practices in a work related context of ALDI.
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and resourcing an organization
Human resource management refers to process of handling and managing employees in an organization. It also involves hiring, firing, training, and motivating employees. ALDI considers their employees as backbone and lifeblood of organization. managers of respective company maintain good domestic policies and employees engagement (Pattanayak, 2018).
Workforce planning is defined as a process in which ALDI connect their workforce with their desire outcome. It refers to experience, knowledge and skills requirement and chain up the right people at the right place on the right time. For effective workforce planning and resourcing, purpose and function of HRM for ALDI are discussed below:-
Purpose of HRM
There are various purpose of Human Resource Management in an organization. Some of them are mentioned below:-
Staffing: Main purpose and responsibility of HRM is to hire and retain best appropriate employees. For this, ALDI’s HR manager give advertisement to find candidates, then do screening, conducting pre employment testing and coordinating for hiring right people at right job.
Employee Engagement: According to this, HR manager make sure that their employees are satisfied and work at their best in achieving goal (Armstrong and Taylor, 2014). To fulfil this , HR manager of ALDI do various activities to motivate them like solve their quarries, organize party for employees as well as for family etc.
Coordination: Human resource department build the relationship between all organizational departments. They also maintain harmonious functionality within organization. Main focus or aim of ALDI manager is to maintain and create effective use of workforce through proper direction in company.
Cultural Sensitivity: Human resource management should maintain culture awareness in an organization by conducting session, activities, etc. Like when managers of ALDI hire Canadian from one part of the world, they provide training session to them so they can easily fit into that culture without facing much problems.
Functions of HRM
The functions of human resource management plays important role in company to achieve goal, some of them are given below:-
- Recruitment, training and development- This is the most challenging task for HR manager of ALDI, it required lot of engagement to do this function like development of job description, sourcing candidates, interviewing, salary negotiation and finally make job offer (Bratton and Gold, 2017). After hiring HR manager provide training and development session according to the requirement.
- Compensation, benefits and appraisal:- ALDI motivate their employees to attain and achieve goal and objective for this they provide benefits and do appraisal to the employees. Benefits include working hour flexibility, Extended vacation, Dental and medical insurance etc. They can do motivational session, appraise them in monetary and non monetary ways so that they can achieve the goal.
- In managerial function the role of HR manager of ALDI is to do Planning to set goals and objective of an organization, like if company has to hire employees the manager should first do foresee vacancies and make other plan accordingly. In organizing HR manager of respective company develop and design the structure of organisation it include allocate different function, delegate authority etc. HR manager of ALDI do directing and controlling function in it they inspire and direct employees to achieve goal and concern with apprehension of activities according to plan. Controlling end the cycle and prompt again planning.
P2 Explain the strength and weaknesses of different approaches to recruitment and selection.
Recruitment and selection is the major function of human resource department and it refers to the process through which right candidate get selected from pool from applicants for a particular positions of job in an organization. It requires a systematic procedures from candidate's sourcing to arranging and conducting interview. There are various internal and external factors which affect the recruitment and selection process (Briscoe and, 2012). ALDI has adopted various effective approaches for recruitment and selection process like internal and external recruitment which have certain strength and weaknesses mentioned below:-
Strength of internal recruitment
- Reduce time of hire:- ALDI can reduce time of hiring by doing internal hiring such as promotion, department shift etc. internal candidate already aware of workplace culture, so they didn't need time to fir in culture.
- Strengthen employee engagement:- Through internal engagement ALDI can give opportunities to their employees to advance career change role etc. So if respective company do promotion employees feel that they value them and want to invest in them. This help company to build culture of trust that enhance employee engagement and retention.
Weaknesses of internal recruitment
- Limit pool of applicants:- By doing internal recruitment ALDI limit pool of their applicants, even if the company have many quality candidates for specific position, that is not necessary they are open for every role.
Strength of external recruitment
- Fresher skill and input:- If ALDI go for external recruitment, there is more possibility to find and identify a fresher candidates who is capable to adopt ad deliver new skills and input for betterment of the organization.
- Better Competition:- Through external recruitment process ALDI can get best candidates by conducting competition for hiring new talent. The respective company look for those candidate who are capable of handling certain skilled job and who has risk taking ability.
Weaknesses of external recruitment
- Time consuming and high cost:- The external recruitment if time consuming and costly for respective company. Because if company is doing external recruitment they have to plan all thing and do advertisement which is time taking and include high cost.
P3 Explain the benefits of different HRM practices within an organisation for both the employer and employees.
HRM practices are those activities which help an organization in predicting performance of employee and enhance the work, such as HRM system consist of those practices which enhance workforce ability and motivate which leads to opportunities of higher organization performance. ALDI can apply this through HRM practices like developing extensive training courses and motivational programmes which enhance productivity through achieving organizational goal. In respective company, HRM practices are beneficial for both employer and employee who are mentioned below:-
Benefits of HRM practices for employees
Conflict Resolution:- HRM practices of HR manager help in avoiding disputes within an organization, whether between employees or between management and employees. To maintain appropriate workplace behaviour the HR manager interprets company policies and procedure and defines it. HR Manager of ALDI also have to attempt to resolve problems such as insubordination, poor attitude, inappropriate language and other disrespectful workplace behaviour that could possibly leads to conflict and disciplinary action.
Positive working environment:- One of major HRM practices of HR manager is to provide supports for those employees who feel that their rights have been violated by anyone. Employee who faces discrimination or harassment can contact to human resource managers for assignment to remedy of situation (Budhwar and Debrah, 2013).For this type of situation in company HR manager of ALDI establish anti-discrimination and harassment law and assist employees with legal matters. They also conciliate disagreements between superior and subordinates to avoid possible litigation.
Benefits of HRM practices for employers
Develop employee relationship:- HR manager maintain good relationship between the employers and employees, which help employers to track and analysis progress and skills of employees. It also helps employer to evaluate performance of employees and takes necessary actions to control them. HR manager also design and drafts business and marketing plan for company according to employers. Like HR manager of ALDI conduct interaction programmes when they hire new employees, so that employer can analysis quality of them and then design training program accordingly.
Motivate Workers:- Manager of an organization always tries to motivate and maximize performance of employees. So, that employer recruit or promotes their employees who can manage work effectively and efficiently in appropriate time. Such as employers of ALDI organized HRM practices with help of HR manager for employees to increase the thinking of being unique in their position and help organization positively. Because if employees work under positive superior it leads to feel more motivated which result as increase in productivity automatically as they started thinking that they are indispensable part of the respective company.
So, all points which are discussed above shows that Human resource management practices is beneficial for both the employees and employer within an organization such as ALDI, because HRM practices maintain good and motivated working environment in a company.
P4 Evaluate the effectiveness of different HRM practices in term of raising organizational profit and productivity
HRM practices refers to system of HRM which is consist of practices that enhance or increase workforce ability, motivate employees through it, it leads to increase productivity and profit of the organization. ALDI adopt various HRM practices which help an organisation to increase their productivity which leads to maximise profit and growth. Some of the effective HRM practices which are adopted by ALDI are mentioned below:-
Employment Security:- It is the first HR best practices, it generate social contract between organization and its employees who motivate them and make them feel that they are also important part of company. In this employer asks employees to do work, commit to organization and offer up new ideas which leads to growth to organisation. Employee does this only when they get something in return like security of employment, it allow subordinates to do home and spend time with their family, themselves and friends. In ALDI when employee fell laid off, the organisation invest in them by providing training and development session to them. This is costly process but respective company do this because it motivate employees through which productivity will increase which leads to organisation growth.
Selective Hiring:- It is a practice in which employer hire those employees who have some add on value which increase the productivity and growth of organization. For selecting appropriate person instruments used are- structured and unstructured interview, IQ test, Personality assessments, work test, peer assessments and reference checks. These pre employment assessments are use to know ability, train ability and commitments of candidates. If ALDI do appropriate selective hiring, the knowledge, ability, skills, experience and qualification of a candidates help them in growth by increase productivity. Because if respective company hire ideal candidate with appropriate skills, then that person complete more task in limited given time which increase productivity.
Extensive Training:- In this HRM practice company invest heavy amount on training such as skills specific from which increase knowledge and skills of the employees. After recruitment employers plan training programs for their employees according to experience, knowledge and ability so that they enhance their skills and ability. In ALDI when new hiring is done, manager design training programs according to levels and skills of candidate like there are different training programs according to fresher, managers etc., all sessions are draft respectively to skills and ability. The training program of candidates enhance ability of employees performance which increase their productivity because they know exact manner to work.
Avoid Discrimination:- In an organisation it is duty of employer to protect the safety and welfare of their employees, this include that no one is facing unfairly discrimination. Discrimination means treating person or group due to their circumstance or personality, it can be direct or indirect and it can be done on basis of race, age, religious, gender, pregnancy, marital status, union members, disability etc. In ALDI to avoid the situation of discrimination in organization management publish rules and regulation which is essential for employees to follow it and if they didn't follow they get punish or give fines. The respective company also educate their employees, encourage them to respect others, develop work policies, train superiors who to handed this situation etc. to avoid situation of discrimination in company.
P5 Analysing importance of employees relation influencing HRM decision making.
Employees are key resources of an organisation. It is rightly said that success and failure of an organisation is directly proportional to relationship shared among employees. . Employees come up together discuss thing among themselves, come out with certain innovation ideas and accomplish task at a faster rate (Buller and McEvoy, 2012). This sometimes leads to influence the decision making process. In organisation context, ALDI's employees shares a healthy relation with each other at their workplace. There are several issues in which an individual cannot take decision alone. Before implementing any plan, pros and cons must be evaluated on an forum where every employee has right to express their opinion freely. Further, there are certain importance that influence employee relation in HRM decision are as follows:
Work becomes easy if shared: A healthy relation with fellow workers always make workload easy and turn to increase productivity. The HRM department of ALDI, has divided responsibility among its employees to accomplish assigned task within stipulated time frame work. Moreover a good relation with employees will always eager to assist in minimising work load.
A happy workplace: An individual tends to loss focus and concentration if his mind is diverted and dose not happy a working environment. ADLI is providing a good working environment where their employees discuss things with each other. Where they feel safe, secure, tension automatically evaporate and feels better as well as trust each other. As to reduce conflicts among employees, as well as motivating employees to carry out their work with ease. Its main motive is to create a happy environment for their employees.
Healthy employee relation: In an organisation healthy employee relation is very important as it discourage conflicts and fights among employees an organisation. The Human resource management team of ADLI 's make sure that their prevail a health relationship among employer and employees. As it helps in reducing conflicts and fights among employees, so that they can concentrate on their work and strive hard to perform better. Moreover it help to influence positive effect in decision making process of an organisation.
In ALDI , employees are treated fairly and maintaining a continuous interacting among employees. They also reward their employees on their excellent performance and motivate them in creating innovation in work. More over commencing up better ideas and discussion which help the human resource department to take an effective decision of an organisation.
P6 Identification of key elements of employment legislation and its impact upon HRM decision making
Employee legislation is a framework that governs law for employment within workplace where more employees are working together. Employment laws exist as to regulate relationship between organisation and employees. It is complying with relevant legislation, both employees and their staff members can ensure the hiring process, dismissal process are fair for every individual (Purce, 2014). ALI has adopted various government rules and regulation that are mention below:
Anti- discrimination act: This act help in preventing the concept of favouritism in the working environment. Anti discrimination act indicates that each and ever employee should be treated fairly and an organisation do not do any discrimination in selecting or recruiting an individual. ADLI follows a fair process in hiring or selecting an individual. So that they are able too meet objectives and goals of an organisation. Where if favouritism is adopted then it will lead to decrease value of their organisation.
Leave provision: Leave provision act provides certain benefit for employees with ability to take leaves up to 12 weeks of unpaid leaves. Such as in serious health condition of employees, his spouse and children (Nickson, 2013). Even employees are titled with job protecting during absence and their health coverage continues if they had remained at work. ALDI has providing certain health and safety measure the their employees so that they can perform their work with any injury. Even they are providing security with job protecting during absence and their health coverage continues if they had remained at work.
Minimum wage act: In this act, government has govern certain law that every organisation have to pay certain fixed amount to their employees which is set by law. The mangers of ALDI have to pay employees that has been fixed by government. Herein the cannot deny to pay amount to their employees, if they fail to pay then they will liable for penalties.
Equality act: According to equality act, an organisation should treat each employee equally in the workplace without any discrimination of male and female (Pieper, 2012). ALDI are treating their employees fairly in working environment as well ensure that in all aspect employees are treated equally without any discrimination. If they are not obeying this law then they are liable to certain penalties abided by government.
Wage and hour act: In this wage and hour act, the amount of minimum wages are revised on periodic basis. As this differ from state to state, require to pay on basis of hour, overtime of any hours done by employees. ALDI's human resource manager ensures employees are classified according to their appropriate job duties. They need to check continuously list of employees working hours and according to it pay their workers without any discrimination. This will lead to increase the performance as well boost to motivate employees, if they are rewarded with good pay for their performance.
Medical and disability: This act prohibits an employer from discriminating against employees on basis of disability or perceived disability. It also ensure that employers to make certain reasonable accommodation to allow employees to perform their job duties. ALDI are providing certain medical and disability facilities to their employees in order to encourage them. Further, by providing essential benefits so that they can perform their work with ease in an organisation.
Above discussed points are employment laws that have major impact on human resource department in decision making process. ALDI has adopted these employment laws to prevent itself from certain penalties that are abided by government. Further carrying out activities of organisation without any deviation. More over, employment law exerts some amount of control over employee relations. It provide certain rules and regulation that employer should perform certain rules and also what they need to perform for betterment of an organisation.
P7 Application of human resource practices related to workplace
Human resource management is defined as practices, polices and system that influence employees behaviour attitude and performance. This are those means of practices that help an organisation to develop a good leadership quality among its employees (Kim, 2012). It occurs through practice of developing, extensive training and development course and various motivational programs. Such as devising an workplace that directly and indirectly assist in performing on going performance. ALDI has applied various human resource practice related rot their working culture.
There are discussed below:
Recruitment and selection process: Recruitment and selection process is very essential for a particular organisation. It is important because it help determining success of an organisation by recruiting and selecting the right candidate that suits a job profile (Kehoe and Wright, 2013). This are most crucial and significant human resource function. It drives motivational levels of employees that is need to be high in order to attain an organisation gaols and objectives. The managers of ALDI need to match the exact job position by hiring right candidate that suits job profile, possessing right skills and aptitude for the job.
It is major duty of a manger to identify requirements of each position in an organisation. As they must determine acceptable levels of qualification, past experience and skills of an individual before hiring for a specific position. Human resource department of ALDI, crucially plan and check list of all task that are required to perform by employees at a particular position. It is essential because employees need to understand, certain skills and knowledge are required if they are being hired for a particular position.
Moreover, the mangers should post vacancies whenever arise in an organisation. It should be communicated widely both to internally to existing employees, if they are interested for position and externally by placing divertissement.
Training and development: Training and career development are very vital for an organisational. It includes decision making process, thinking creatively and moreover providing knowledge of a job profile. It is important because it help in addressing strength and weakness of a employee. It helps an individual to improve their skills. ALDI provide training to their existing employees and new employees so that they can improve their performance. Such as:
- Improved employees performance: ALDI is providing training and development improved performance of employees so that are able to understand their roles and responsibility. Moreover, it help to build confidence that will enhance performance of employees as well as benefit organisation.
- Addressing weakness: Mostly employees do haver certain weakness in their workplace performances. Herein, to address weakness of employees they are providing proper and effective training and development session. This help to reduce weak points of employees and they are able to perform their best in an organisation.
- Increased productivity and adherence to quality standards: With proper training and development session, productivity usually increase efficiency of employees. This helps ALDI to increase its productivity and quality standards as well as employees turnover and potential market share in the competitive advantage.
Performance appraisal: A performance appraisal is periodic process that assesses an individual performance in a workplace. It is an effective management process that have significant impact on organisation culture, staff morale and employees engagement levels. ALDI has adopted certain steps to reward its employees they are as follows:
- Employee recognition and rewards: This appraisal provides an opportunity to recognise and reward employees to ensure them that they are valued for their performance. The managers of ADLI, continuously monitor performance and progress against objectives of their work. They reward their employees by increment in salary, promotion or bonuses.
- New challenges and clear objective: Organisation with great work place culture are ones where employees feel sense of belongingness. ADLI are providing their best working culture environment to their employees, it leads motivate themselves. Employees recognise their value in organisation and carry out their work with ease. Moreover, they accept new challenges and opportunities to show out their best performance. They also provide regular great opportunity ongoing challenges as to ensure employees remain motivated with new goals and experiences.
The above mention points are human resource practices that help an organisation to know their plans, policies and practises in their working environment. ADLI has applied this practices to know their work performance of employees. Moreover, it is beneficial for both employees and organisation.
From the above discussion it has been concluded that human resource management plays a very important role in an organisation. Its purpose and function are very effective to know both employers and employees roles and responsibilities. It also helps out in selecting best candidate that suits job profile in order to accomplish goals and objectives. Moreover it help an organisation to overcome employees weakness as well as create opportunities and challenges to know their capabilities and reward them for same. Further, it impoverishes productivity of employer and employees relation that influences in taking best decision for organisation. With various government laws and also by applying human resource management practices.