Human Resource Management is a vital concept that is very useful in every organization. it is a function that is basically concerned with recruiting and selecting skilled individual who is able to achieve objectives of company (Armstrong and Taylor., 2014). Major responsibility of a human resource manager is to assess present needs and anticipate future requirements. Once the gap is identified, they recruit e candidates in order to fill this gap. Apart from this, it is also necessary to assess training needs of manpower and an appropriate training programme is designed to enhance potential of employees which enable them to fulfill objectives of company. In the present report, chosen organization is ALDI which a retail grocery store of United Kingdom. It is biggest discount supermarket chain which is headquartered in Essen, Germany. This assignment includes various purposes, scope and functions related to human resource management. It also defines about strengths and weaknesses of several approaches to recruitment and selection. Along with this, benefits of HRM practices and its effectiveness in raising profit as well as some employment legislations are defined. Apart from this, significance of employee relation and application of human resource management practices are defined in this report.
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P1 Purpose and functions of Human Resource Management
Human Resource Management includes various functions such as recruitment, selection, employee relation, training and development, compensation, performance appraisal, wages and salaries etc. All these functions are performed by manager in an organisation. This department mainly emphasize on assessment of present needs and forecasting of future needs. Managers first identify the gap between them and then feel this gap by hiring of candidates. Skills, competencies and experience are the main basis on which individuals are selected and hired in the organisation. Human Resource Management is a process in which manpower and resources are coordinated by managers in order to attain objectives and targets of company. This is achieved by utilisation of process, personnel and technology that’s mainly focus on internal part of enterprise instead of external (Armstrong and Taylor., 2014). It creates a bridge among management and employees.
There are many purposes of human resource management on which productivity and profitability of company depends. Effective policies and strategies are designed and execute by administrator which is necessary to to attain and retain work force. Workforce planning is very necessary for every business concern as its growth and success highly rely on it. So, it is important for managers to do proper planning for hiring employees in organisation. In ALDI, major responsibility of human resource manager is to recruit employees who are capable to attain objectives of company. They also design effective training program that helps manpower in their future growth and development. This training program helps them in performing their duties in well manner and attaining objectives of firm in an effective and efficient way.
Functions of Human Resource Management:
Recruitment and selection: It is a crucial function of every business enterprise to recruit and hire skilled manpower in company so that objectives can be attained. It is very necessary for managers of ALDI to carefully assess human resource need in an organisation and fulfill this by recruiting right number of employees at right place on right time. Managers need to ensure that proper planning should be done before Hiring employees. A criteria is set and on the basis of that individual is selected and hired at weekend position of firm. It is necessary to select an individual who have the ability to attain objectives and targets of company. Candidate must have proper knowledge and required skills that I needed to perform job duties in an appropriate manner (Berman and et. al., 2012).
Training and development: it is one of the crucial function of an organisation which should be followed by every form in order to attain high growth and profits. It is very necessary for manager of ALDI to determine training needs and design an effective training program that assist employees in performing their job roles. Training and development increase the capability of Manpower and motivate them. All this helps in performing their duties in well manner and attain business objectives. An effective training session increase potential of employees and provides them an opportunity to develop their skills and knowledge that is very necessary to perform their duties well (Nickson, 2013). So it is very necessary to develop an effective training program so that employees are able to work towards accomplishment of goals and objectives of company.
Employee motivation program: Managers of ALDI needs to conduct various programs and activities that increase motivation level of Manpower. Motivation level of workforce put direct impact on performance of company. So it is required by managers to conduct various activities on regular basis so that moral of employees keep high and there would encourage to work towards attainment of predetermined goals and objectives of company.
P2 Strengths as well as weaknesses of recruitment & selection approach
Internal method: Under this approach, individuals are selected internally rather that outside the organization. the employees who are already working in firm are selected on the basis of their working and participation in activities of firm. There skills and competencies are an important that is considered by manager of ALDI before recruit them internally (Boella and Goss-Turner, 2013). Promotions and transfers are the main methods used in internal recruitment of candidates.
External source: In this, firm invite applications for interested candidates to hire an individual on vacant position. Candidates are recruit from outside the firm and selection in done on the basis of set criteria (Boselie, 2010).It ensures entry of fresh talent within firm and promotes innovation and creativity among employees. By external recruitment, firm have a choice to select candidates from large pool of talented people. This method of recruitment provides firm an opportunity to gain competitive edge over competitors.
P3 Benefits of Human Resource Management practices
A human resource management practice provides benefit to both employer as well as employee. Good employee relation influence performance and profitability of firm. In order to ensure that operations of firm are performed in better manner, it is very necessary to maintain a healthy relationship among management and employees. Human resource is considered as an important part of every business enterprise that highly contributes in profitability and success of company. It increase motivation level of workers and they are more engaged in activities of firm. Increased involvement of Manpower ensures high growth of company (Boxall and Purcell, 2011).
Effective practices of HRM highly influence performance of workforce as well as employees. Implementation of these assists in maintaining healthy work environment within organization which in turn results in high employee morale. If morale of workforce is high, they encourage working in more effective and efficient of manner and are able to easily accomplish objectives of company. Human resource practices improve operations of firm and ensure high profitability and productivity of company. it also improves coordination among workers and enable them to work in team. Team working ensures timely completion of tasks and goals of business enterprise in an effective and efficient way (Purce, 2014).
P4 Effectiveness of HRM practices in increasing productivity and profits of ALDI
The practices of Human Resource Management has always proves to be successful ALDI in context of increasing companies productivity and growth. They have accomplished number of milestones because of its effective HRM practices as it enable company to attain growth and success within a short time frame. In addition to that the company also gain high competitive advantage over its rivals because of the effectiveness of its different HRM practices. Discussed below are the various perspectives whose involvement has influence ALDI's growth are as follows:
Innovative and creative employees: ALDI is promoting healthy working environment that motivates their employee to work incredibly hard so that business objective can be achieved within stipulated time frame (Daley, 2012). Motivated workers yields high profitability ratio for the organisation and also assist in capturing large market share as well. If workers are motivated their productivity level also increases and they work more efficiently (Mok and et. al., 2013).
Effective execution: Both managers and leaders equally contributes towards achieving business goals and target. The also actively participate in formulating company's objective, goals, purpose etc. Of the workplace. The main role of ALDI's HR manager is to put right employee on right place at right time as they are the one who generates maximum profit of the company. It is important to aasign work or task to workers on the basis of their specialised skill and knowledge so that they can complete it properly (Sparrow and et. al., 2016).
Effective rewards impact performance: Every employee works in an organisation for their personal benefit i.e. Salary and incentives. Every company is liable to pay reward to its employee on the basis of their work performance. There are two ways rewards can be given to workforce one is monetary and other is non monetary. In monetary, rewards and benefits are measured in terms of money such as higher pay, extra incentives etc. On the other hand non monetary factors includes sense of recognition, sense of achievement and praise. Such types of strategies assit in retaining workers for longer period. If employees are satisfied, then only they can work dedicatedly towards achieving companies objective.
Team and individual goal with constructive communication: ALDI makes policies and strategies for the employer and employee but it requires to be delivered among them through effective communication channel. There are certain situation information is not correctly reached among employee and employer because of ineffective communication channel. Sometimes due to wrong selection of communication channel performance of employees hampers that ultimately impact overall functionality of organization (Gospel and Sako, 2010). Therefore, every company needs to have better and effective communication channel that directly connect management and employees. Also the main responsibility of ALDI's HR manager listen what other worker is saying then take a decision by providing best possible solution to the given problem.
P5 Importance of good employee relation in context of influencing decision making
Employees of ALDI shares special relationship with each other. This is mainly because the companies promoting open and healthy working environment that that encourages workers to work more effectively towards achieving organisational objectives. Their workers talk and discuss with each other and take decision mutually or with the consent of every worker. This makes them feel important and valued (Heizer, 2016). In addition to that they treat employee as their colleagues not as their rivals. Ring rd significance of employee relation in ALDI:
Work become easy if it is shared among all workers equally: ALDI is promoting positive and healthy working environment that reduces the workload of employees and makes them feel motivated which reduces the chances of higher productivity and profitability. It is difficult for one single person to achieve all task effectively. Therefore work must be divided among employees on the basis of their skills and knowledge so that chances of completing it within given time frame increases. Moreover if workers shares good rapport with other co-worker tasks are become much more easier.
Discouraging conflict among workers: It has been believed that if employees shares good relation with one another chances of conflict among them automatically reduces. Moreover they start trusting each other blindly and and also help each other in their performance is well.
Loyalty of employee: With interactive working environment it become easier for business entities to develop loyal workers who remain with the company for longer period. When working environment is favourable, motivation of employees increases and they start performing incredibly hard which ultimately helps the company as chances of their growth and development increases promptly.
P6 Key elements of employment legislation and its affect on decision making
Employment: This legislation is related with hiring and selecting most talented and skilled employer for the company who with their effectiveness and efficiency companies goal in structured and thorough mannet. ALDI is liable to select desirable candidate on the basis of their skills, knowledge, competency without discriminating among them on the basis of sex, gender, race etc.
Wages and renumeration: Every employee works in an organisation so as to get higher pay and benefits for their performance (Hoque, 2013). Every company is liable to pay minimum wages to workers. ALDI is providing both monetary and non- monetary benefits that retain and motivated them for longer period.
Equality: Under this legislation, ALDI is obliged to provide equal and fair opportunities to all its employees so that all can get a chance of both personal and professional development. Moreover equal treatment to all employees chance of feeling biasness among others workers that ultimatly promotes healthy and open working environment in the company.
Working condition: At the time of recruitment, HR manager of every company is liable to disclose all terms and condition regarding their working hours. They are also required to discuss about rules and regulation regarding vacation, probation period, regulation for young employment, special provision regarding maternity period of women etc.
Data protection: Employee of ALDI is not allowed to share companies confidential data with third person does not belong to the company as well (Jiang and et. al., 2012). If in case they found doing so he/she will have to bear the consequences for the same. It is illegal in the eyes of law to share data or information of one company with worker of other rivarl company.
Health safety and welfare: HR manager also need to discuss regulation concerned with health and safety of employees. For example: There should be one clinical room must available in every company.
Position: The company also needs to define roles and responsibilities of selected candidate so that they he can set his mind accordingly. By defining roles and responsibility to them makes easier for them to perform and work incredibly hard achieving organisational objectives.
Above mentioned are all the legislations made by government which needs to be adhere by managers of ALDI and implement those within organization so that employees stay motivated and operations of firm can be performed in well manner and business objectives can be attain (Marchington and et. al., 2016).
P7 Application of HRM practices in work related context
Job Title: Human Resource Manager
Location: United Kingdom
Qualifications: MBA in related field, i.e., in Human Resource Management
Experience: Candidate is required to have experience of minimum 4 years.
Salary: 70,000$ - 80,500$
Title: Human Resource Management
Pay Grade: 800000 - 950000
Reporting person: Senior Human Resource Manager
Duty hours: 8 hours
Working Days: 6 days
Job Summary: Develop plans and policies, compensation plans, conduct training sessions, performance appraisal, coordinate with various other departments and various other functions.
Qualifications &skills required: MBA in Human resource department with excellent communication skills in various languages.
Job responsibilities & duties:
As per the above mentioned report, it has been concluded that HRM is an important aspect of every business firm which contributes a lot in attaining its objectives. Human resource manager performs various roles and duties in performing its activities. They analyze the manpower needs of the firm and conduct the recruitment process so that skilled employees can be hired. Various strengths and weaknesses are associated with this which managers need to be considered. They should follow all the legislations made by the government and implement them within-firm so that no discrimination can take place. It is very necessary that a good relationship is maintained between employer and employee so that the operations of the firm can be run smoothly.
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