Strategic Human Resource Management (SHRM) is a concept which defines how the objective of the organization will be accomplished with the policies and strategies adopted by the human resource managers (Chand, 2015). The HR manager defines the organization's plan and intentions and the ways to achieve the business goals through people.
In the task 1, this report stresses on the importance, purpose and contribution of SHRM in achieving organization's objectives. Through analysing various factors, assessing the HR requirement in Aldi and then develop the human resource plan for the organization. Further, the task 2 is explained, in which the major focus is on the aspect of HR policies and the impact of regulatory requirements on these policies. The impact of Organization structure and culture on the management of human resource are also taken into consideration. At the last, the effectiveness of human resource management will be monitored by considering various factors.
1.1 Importance of Strategic human resource management:
The importance of strategic Human Resource management is as follows:
- Performance Appraisals- HRM encourages the employees of the organization to work as per their potential and capabilities and also provide them the direction which can bring improvement in their working. The SHRM can time to time appreciate the work of employees and guide them which will assist in enhancing the performance of individual (Gannon, Doherty and Roper, 2012). This helps the HR manager to motivate their employees and results in better performance of the company.
- Maintaining Work Atmosphere- SHRM is beneficial and plays a very important role in creating friendly environment in the organization. It is the responsibility of the SHRM for maintaining the healthy relations between all the employees and staff (Truss, Makin and Kelliher, 2012). It develops and supports the work culture in order to encourage the team work and sense of belongingness.
- Managing Disputes- SHRM creates a better work culture and motivates the employees to co-ordinate with each other. This can be beneficial for the organization as the Human resource manager’s assists in solving the disputes between the employees and because of it the work will not get affected (Armstrong, 2008).
- Recruitment and selection- The main work of the Human resource manager is to select the efficient staff as it will help the firm to be successful. Recruitment and selection helps in fulfilling the requirement of the staff by hiring the best candidate for the organization.
- Motivate Employees- SHRM encourages mangers to think ahead which helps the company in achieving the organizational goal (Schuler, and Jackson, 2008). By appreciating the work of the employees and by providing them with timely training, workers feel motivated and work with more efficiency and zeal.
- Development and Growth of the Organization- SHRM helps in enhancing the skills of manpower through various seminars and workshops. By the help of efficient staff, the organization can develop and achieve the overall organizational objective.
1.2 Purpose of SHRM activities in Aldi
The purpose of Strategic Human Resource Management activities in Aldi are as follows:
- Recruitment- Recruitment is the process of identifying or searching for the suitable candidates for fulfilling the specific requirement of the job. The purpose of recruitment is to attract pool of candidates to fill the job vacancies. Aldi is planning to expand its business, in that case company have to hire new employees in fulfilling the vacancies (Zhang, Dolan and Zhou, 2009). Recruitment process helps in differentiating the employees as per their qualification and as per the job profile demanded by the company. . It helps in finding the best talent out of many candidates.
- Selection- Selection is the process of choosing the best candidates which fits in the profile. The purpose of the SHRM is to get the right people to do the right job and in the right place. This activity is a very difficult and important for the company's success and for achieving organizational goal. The overall working of the company is depended on the employees working in the organization (Harness, 2009). If the employees are talented, hard-working and efficient. This will help the organization in running successfully in the market. So, SHRM needs to critically evaluate the potential of candidate and select the best person for the specified job. For Example- Aldi is planning to expand their business, in that case company needs to hire the new employees, so SHRM department of the Aldi need to be very efficient to hire the best candidates for fulfilling the vacancies.
- Training and development- The purpose of training and development is to improve the efficiency of the employees. Training helps in updating the knowledge of manpower . It assists in upgrading the skills of employees and they can able to learn the new tactics for performing the same work (Gannon, Doherty and Roper, 2012). The reason for introducing For Example- Aldi is planning to expand their business, in that case company needs to hire the new employees, so SHRM department of the Aldi need to be very efficient to hire the best candidates for fulfilling the vacancies. Morkshops is to enhance the capabilities of employees and to make them aware about the new technologies which can help in making their work easier. By attending these workshops, employees feel motivated and by learning they can increase their working efficiency and will feel motivated. For Example- HR manager hires the professional trainee and arranges the workshops which upgrade the knowledge and skills of the employees and fulfil their responsibilities by train and develop the employees.
- Motivation- Motivation is the inner state that energizes and sustains human behaviour. The purpose of motivation is to increase the morale of the employees (Dowling, Festing and Engle, 2008). By adopting various motivational techniques, like Maslow's hierarchy theory, Herzberg two factor theories, company can raise morale of the employee. It is very necessary to boost up the human resource so that they can perform well and company can able to achieve its objectives. For Example- Employee can be motivated through the recreational activity, training and rewards can boost up the morale of employee.
1.3 Evaluate contribution of strategic Human resource management in achieving the objective of Aldi
The contribution of HR management in achieving the objective of Aldi is as follows:
- Making contribution to organization's Efficiency and effectiveness- The HR department provides the company with the efficient staff by measuring the work performance of employee and properly training them (Chand, 2015). HR management is responsible for solving the difficulties of employees and making them comfortable with the work. The objective of the organization is achieved by the proper management of work by all the employees. So, it is responsibility of the HR department by timely supervising the work of staff and motivate them to work with greater efficiency and effectiveness. For Example, HR manager can arranges the performance appraisal program to motivate the employee. Also, HR manger can plan a activities for the employees which will results in creating new energy in the employees and they can able to perform well which improve the overall organizational efficiency.
- Improve quality and productivity- HR department always boost up the employee morale and solve the problems of employees. By providing training and guidance, the efficiency of employees can be increased (Ananthram,Nankervis and Chan, 2013). Through training, employees can be able to learn new techniques of work which results in greater productivity and results in better output from the employees. The satisfaction level of employees motivates them to give them better quality of work and they can perform their best and it will also help in achieving organization's objective. Example- HR manager of Aldi can use total quality management techniques to judge the performance of the employees and if any improvement is needed it can be timely sought out. This will results in improving the efficiency of the employees and ultimately helps in achieving the objective of Aldi.
- Employee Turnover- HR department contributes in increasing employee turnover by hiring efficient employees. By the hard-working and efficient employees, the quality and productivity of work can be improved (Dowling, Festing and Engle, 2008). It will result in gaining more profits to the company. The more satisfied employees, means more quality of work and by which the company may not have to hire the new employees which reduces the cost to the company. For Example- Aldi can give incentives and involve the employees in the decision making which results in boosting the morale of employees and they will work with greater efficiency.
- Employee retention- Human Resource Manager helps in building the employee morale and raises the confidence. This results in employee retention and creates more satisfied employees. By this, the reputation of the organization in the market increases and the share price of the organization gets enhanced (Maley, 2011). Aldi is planning to expand its business as in that case, they need more employees and for this Company have to create their positive image in the market. By building positive image in market more number of candidates may apply for job in the company. This helps HR department of Aldi to choose the best candidate out of many options available. For Example- Aldi always work in the beneficial of employee. The HR manager works in the direction of developing the employees through training and development program, this helps in motivating the employees morale and by this company can able to retained the employees.