Human Resource Management plays a crucial role in an organization. It assists in developing or empowering employees by conducting planning, personnel needs, recruiting, provides benefits and incentives. The HR department is highly indispensable at the workplace because it helps in managing business activities in a smooth manner (Bratton and Gold, 2017). This report covers ALDI company is a supermarket established in the UK. It provides a wide range of products that includes women, men and kids wear such as clothing, accessories, handbags, and many more. The purpose and functions of HRM in the workplace help in determining the strengths and weaknesses of different approaches related to recruitment and selection. Also, bring highlight on employees relations and their impact at the time of decision making. Basically, Human resource management help in accepting the changes by employees which support growth in an organization.
P1. Purpose and the functions of HRM
Human resource management plays vital role in an organization that facilitates most effective use of a workers in achieving business and individuals goals. Workforce planning is proactive activity which enhance organizational performance, use calculative and strategic aspects in managing human resource in a systematic approach in a ALDI company. The purpose of HRM are as follows:
- Compensation and its benefits: The HR manager has responsibility to perform a function of compensation and employees benefits. It includes all rewards that are obtained by employees such as pay by receiving bonus and benefits includes sick leaves, holiday and other facilities (Kim and Bae, 2017).
- Employees and labour relation: It include the formation of union among employees in a business firm. This help them in improving their working conditions, providing common and basic facilities to co- workers, on one can pressure them to work forcefully.
- Improves strategic plan: As a HR manger, it is an essential part of every organization to adapt strategic planning to achieve their goals. This will result in higher productivity and improves the current position of a company.
The function of Human resource management, these are described in follows:
- Staffing: It is an effective tool, used in every organization, by positing right person on a right job to help in accomplishing objectives of a business firm. Staffing assist in managing organizational changes which are adopted for development of employees and co-workers and improving their standard of living of ALDI company.
- Training and development: It play an important role within workplace which are conducted along with a career planning of labour force to get promote in ALDI company. Training helps in improving the performance of an individual and also enhance their skills, abilities and knowledge for current position of jobs. Development bring knowledge and specialization among employees which leads to changes for better results of ALDI company (Budhwar and Mellahi, 2016).
- Evaluating performance: This function plays an important role in organizational changes as an HR manager it is necessary to evaluate the performance of an employees on an individual level. This will able to know each and every worker performance and resultant in provide training by experts or their seniors to overcome from their problems.
- Controlling: This function help in taking corrective measure at the time of any issues. Controlling helps in comparing actual performance with a standard performance. This includes minimum utilization of resources, job insecurity and many more in ALDI firm.
P2. Strengths and weaknesses of different approaches to recruitment and selection
Recruitment is a process of identifying and selecting the potential candidates to apply for a job with wanted skills and knowledge for a company in order to select most suitable candidates to fill job vacancies. Selection is the process used to identify and hire individual or people to fill vacancies in an enterprise. This method includes eligibility criteria, tests and interview basis etc. to select desired candidates (Sanders and Lin, 2016).
There are different approaches of recruitment and selection. These are described in detailed as:
This approach is used for internal promotion of an employees. It will bring a positive effect in existing employees and motivate them for career growth and development.
- Strength: By using internal approach, company can motivate existing worker of organisation. This will assist in organizational changes that perform better results and also is regarded as cost effective method because company do not expense on advertising and recruitment procedure.
- Weaknesses: By an internal approach, there are new ideas influenced by the employee as they are chosen for existing one. This limit the creative and diverged ideas within an organisation.
This approach bring fresh and new ideas as the candidates are selected from an outside organization. It leads huge cost as there are hiring from an external action.
- Strength: By using this approach, it will bring fresh and innovative ideas to a business firm as individuals are appointed from an outside company (Buttimer and Seamon, 2015).
- Weaknesses: By using external approach, it includes huge amount and also a time consuming process for ALDI company.
Third party approach
This approach include the third party agencies for the recruitment such as a consultancy which acts as a mediator in between a company and an individual candidate.
- Strength: As a management of a company, HR manger trust on consultancy , as they are serving them from a long period.
- Weaknesses: This process is more costlier as they have to pay consultancy and also, sometimes candidates are not suitable for a job, but are forcefully hired from a consultancy.
P3. Benefits of HRM practices within an organisation for employer and employee
The welfare of HRM practices will increase the work performance of both employer and employee. It will help in to know the skills, abilities and experience on the basis of an individual performance. These are discussed in below as:
P4. Effectiveness of different HRM practices
There are various effective methods of HRM practices of ALDI company. These are described in detailed as follows:
- Training and development: It is an effective method in practising of HR in ALDI company. This will ensure about the quality of products and services as it stands on global platform. On the hand, it provides training to newly joined employees and existing employees for enhancing their skills and knowledge regarding company’s terms. It is an initiative step for overall growth and development of ALDI company and therefore, bring higher production and reduces the cost effectively (Waddock and Bodwell, 2017).
- 360 degree performance evaluation: This HR practices includes the overall performance of an individual to motivate them through their performance appraisal which help HR manager to evaluate the problems and other related issues regarding an employee performance of ALDI company. This will bring efficiency in terms of their work and improves their overall performance by this method.
- Rewards: By providing rewards to an employee through bonus, increase their incentives, offering family trip are various sources to motivate existing employees in ALDI company. It will bring an optimal output by enhancing their efficiency and effectiveness of an individual employee.
- Fair evaluation system: By using fair evaluation method, it links an individual goal with the organizational goals to achieve them on target. In case of ALDI company, it uses this technique to accomplish their goals on time.
P5. Importance of employee relations in respect to influencing HRM decision-making
Employees relation refers to a business firm effort to manage the relationships between employer and employees. It is typically part of ALDI company to ensure most effective use to accomplish their mission. The importance of employee relation to influencing HRM decision making as follows:
- Productivity: Employee relation helps in improving the cost production of ALDI company by engaging them in their work. This will bring positive aspect at a time of productivity. There will be more cooperation and coordination among workers, it will help in effective decision making (Seamster and Redding, 2017).
- Employee loyalty: Employee relation bring loyalty among subordinates. It will encourage them to work properly, this will result to generate trust on exiting employees and help in reducing conflict within ALDI company.
- Conflict reduction: By using employee relation it will reduce the conflicts among employee and employer, this will bring an effective decision making. As a result, bring harmony in ALDI company.
The following are the different approaches which are used in employee relation are as follows:
- Psychological Approach: This approach includes the different perspective of employers and employees to give rise to issues of employer and employee relations.
- Sociological approach: This part involves society and community which are belonged to different background, personality, likes and dislikes of each and every individuals. The customs, values of society in which industry affect relations of two parties.
- Human relation approach: This approach deals with human beings who want freedom of thought and expression and control their actions according to a situation. It helps in taking opportunity to participate in decision- making.
The employment laws which effect at the time of decision making are as:
- Minimum wages act: This Act is used for a minimum wages paid to each and every employees. It will bring a positive impact on decision making of ALDI company so that every employee will treat same in a business firm.
- Equal remuneration act: This Act is used to distribute equal salary among employees that is among men and women, in a result it will bring every employee as same which corporate at a time of decision making (Mosakowski, 2017).
- Health and safety act: This act is used for employee’s health and safety measures, it leads to take care of single employee of ALDI company as a result, at a time of decision making employees coordinate with their existing members.
As HR manager of ALDI company, it reflects roles and responsibilities of recruitment and selection to run a business enterprise in an effective manner. This require a detailed procedure of job for recruitment and selection, training and development etc. ALDI analyse the deserving candidates by taking an interview of an individual which will includes some basic questions and their eligibility criteria. As HR manager will required essential parts in job positioning that will recruited by fulfilling the norms of a business enterprise (Bryson, 2017).
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Impact on the Macro Environment
It is a first phase to describe job details or vacancy who are interested individual can apply to get a job. It includes the basic criteria requisite for finance executive and also minimum qualification that MBA in finance is needed for job position. For instance:
This part includes the acceptance of job as a desired candidate fulfill the required qualification that is needed. Hence, it is accepted.
From the above discussion, it can be concluded that, main purpose of HR manager is to place right person for a right job, this leads to become more valuable business enterprise. This is the important role of HR to maintain creativity is on and innovation dynamic activities which allows a business firm to respond internal and external aspect. It is strategic, integrated and bring development and well being of people in a business firm. Therefore, it is the responsibility of HR manager of managing career development for all including employees and employers.