An organization consist many departments who performs different activities but with common purpose is to achieve business objectives and goals within specific period of time. The main role behind success of a company is efforts of people. Therefore, they are the most valuable assets of enterprises. Introducing manpower into workforce, providing them benefits and make them able to work accordingly are all done by human resource management of a firm. HRM performs various activities like staffing, planning, controlling and coordinating the organisations. These processes help companies to gain productivity of workers as well as high return on investment. In order to recognise importance of HRM in organisations like ALDI following report has been made. This company deals in retailing sector having 7000 stores in more than 70 countries. It has more than 2million employees in outlets so, to manage those managers of this company use various methods ((Heikkilä and Smale, 2011). This assignment entails main functions of management along with purpose in present company. It also describes role of managers in enhancing profitability and productivity of organisation.
P1. Importance of HRM along with its purpose and functions in an organisation
The main function of human resource management in an enterprise is to recruit best talented persons in workforce. HR managers always engage in planning workplace which states that a team having required skills and abilities to work according to company’s desire (Kaufman and Miller, 2011). With the help of these workers, employers become able to achieve business goals and objectives on time. Along with this, managers used to provide essential training programs to employees to make them more capable. Some major functions of management in an organisation like ALDI can describe as below:
Functions of HRM:
Recruitment and Selection: As stated earlier HRM uses many methods of recruitment and selection to fulfil vacancy of a company. In context with, ALDI Company, its managers use online procedure to recruit employees who consists effective knowledge of customer service.
Training and Development: HR managers of ALDI provide essential training programs to not only new persons but also existing workers also. This company is known for its prosperity at UK marketplace, so such type of programs help in enhancing skills of employees. This would make them able to provide customer service as well as to work on new techniques with full efficiencies.
Compensation & Benefits: This firm is also facilitates workers with compensation and benefits (Keegan, Huemann and Turner, 2012). It includes flexible working hours, casual leave, life-term insurance etc. so that employees can work with enthusiasm. This would assist company to get their retentions.
Ensuring Legal Compliance: Along with providing compensation, HR managers of ALDI inform recruiters about terms and conditions of working organisation and rights of them in company.
Performance Appraisal: In order to make employees happy and generate job satisfaction in them, superiors of ALDI provide performance appraisals. It includes extra bonus, holiday trips, incentive etc. which appreciate workers for their performance.
Purpose of HRM
Since human resource management performs various activities and functions in enterprises but, main purpose behind all these is to maximise productivity of workers. Skilled and high qualifies workers help in enhancing profitability of company as well as achieve set goals within limited period of time (Heikkilä and Smale, 2011).
P2. Strengths and weaknesses of approaches for recruitment and selection process
Human resource management conducts various methods to recruit high skilled and qualified workers in ALDI by concerning on its objectives i.e. to provide good customer service. In context with recruitment which states a process of hiring persons through internal and external resources, they used both methods for fulfilling vacancies in organisations. Some major advantages and disadvantages of these processes can be described as:-
External source: This process includes advertisement procedure for recruiting candidates in firm. HR managers, therefore, used to make job specification, questionnaire format etc. procedure for recruitment. Along with this, they use campus interviews, employment exchanges, and online methods etc. for searching best candidates (Guest, Paauwe and Wright, 2012).
· This process helps in providing a list of interested candidates for a specific position in a firm. These applicants have possessed all eligibilities required to fulfil vacancies.
· External method assists companies to get persons having fresh and innovative ideas.
· The main weakness of external source of recruitment is that it requires lot of capital and time.
· It requires a long procedure like screening resumes of various candidates, legal verifications of them and more for recruitment.
Internal source: It entails managers to recruit persons from within an enterprise. In this management used to transfer job of employees by giving promotions or demotions to them (Gomes and et. al., 2012).
· Through this process, managers can provide job satisfaction in employees as well as brings their morale up.
· Getting new positions in company motivate workers to work with full enthusiasm.
· It generates competition among people of firms which impacts on their relation too.
· Employees expect much when they get new position from organisation which sometime not possible to give by managers.
Sources of Selection method in ALDI Company: Managers of this firm uses internal and external procedures for recruitment according to requirement of jobs. They use online procedure also which requires many documentation like posting job requirements on web portals, in newspapers etc. But this method needs much time for further selection procedures.
P3 Benefits of HRM for employer and employee in ALDI
Practices of HRM are essential part of companies especially for big organisation; it helps in managing situations of workforce. Human resource activities help enterprises to enhance productivity of employees which assist in accomplishing set targets on time (Benefits of employee and employer through HRM practices. 2017). Through practices, employer and employee get various benefits like sharing views and opinions, developing new skills and knowledge’s etc. In ALDI Company, benefit of these practices can be explained as:-
Training and Development: In order to develop abilities of workers, HR managers of a company used to provide trainings programmes to them (Kim and Bae, 2017). It facilitates workers to widen their knowledge’s in a particular field so that they become able to work in a desired manner. ALDI Company provides training like apprenticeship, on-the-job etc. to organise its existing workers and new recruiters with changing technologies. This will help employees to provide effective services to employees.
Resource of Information: With technological changes, it is necessary for all firms to adopt latest techniques in operations. It helps them in making innovations in products or services through which they can gain competitive advantages and sustainability at marketplace. Therefore, HR practices involve methods like inform employee about changes at workplace as well as keep them update with the same. In context with ALDI, its management used to organise conference meeting with workers to communicate them about new techniques.
Stimulate Employee: In this process, managers used to provide different appraisals programs in order to appreciate workers for their efforts in achievement of company's success. It includes safe and healthy working environment, extra wages, flexible working hours etc. Through these benefits, employees feel happy and motivated as well as retain in a firm for long time.
Enhance benefits of Organisation: Getting commitment of employees and retain them in long time in companies help employers to gain high return on investment and revenues. It increases their performance and productivity at marketplace (Kultalahti and Viitala, 2015).
Organisational Culture: The management of ALDI provides diversities in organisational culture. Diversification provides fair, transparent and high performances of employees. This would help owners to gain honest and hard-workers at workforce through which they can gain sustainability easily.
Decisions Making Assistance
Human resource manager of ALDI provide flexible working hours to employees as well as supportive and healthy atmosphere of workers. Friendly atmosphere assist workers to share their views and opinions through which employers can get their feedback in decision-making process. Including employees in such procedures reduces chance of resistance also.
P4 Evaluation on effectiveness of different HRM practices
The best HRM practice in an organisation is to frame activities like training. These practices proved to be effective if employees can work in desired manner. In retailer companies, like ALDI, through training programs workers become able to handle complaints of customers in own way. They can fulfil demand of people in outlets on time as well as interacts with them in efficient manner (Lamba and Choudhary, 2013). Thus, through these practices of HRM employer can raise productivity of workers which enhance profitability and growth of business as well.
Improvement in Abilities and Skills of Employee
In order to improve abilities and skills of employees, HR managers of ALDI not only give training programs but also used to perform some entertainment activities for freshness of their minds. They provide timely picnics, holiday tours, yoga activities and more which help workers to get some relaxation from hectic schedule of work. This would help people to overcome from workload pressure also.
Effective connection grouping personal and team
HR managers of ALDI organise various activities to involve workers in team. They always try to engage people in group so that they can share their views and opinions to each other. This process helps managers to generate good relationship among workers. Along with this, working in team assist companies to reduce conflicts between people (Nijssen and Paauwe, 2012). Through which employees can accomplish target on time as well as increase sales performance, customer service etc.
In terms of Return on investment
Training programs like apprenticeship, systematic and structured are used as techniques to make workforce high talented. Since ALDI Company used to adopt latest technologies on regular basis to carry its operations successfully, therefore, these programs help workers to work on new system in a desired manner. Thus, through this practice of HRM, enterprises become able to gain high return on investment as well as to increase sales performance.
P5 Importance of workers relations to influence HRM decision-making
Employees are the most valuable part of all types of companies whether they are dealing in manufacturing and retailing sectors. Contribution of workers in achievement of success cannot be neglected as these persons always support organisations to achieve their goals as well as stay with them in all conditions. Therefore, it is a duty of human resource management to provide them all benefits. For increasing productivity of workers HR managers should maintain employee relation with employer in adequate manner so that they can help in accomplishment of business targets (Vermeeren, Kuipers and Steijn, 2014). Relationship among people plays an important role in decision making process of human resource managers. If HR department has got success in maintaining good relation among employees then they can take proper decision regarding working procedure and organisational culture of enterprises. But if they fail to manage the same then it will arise conflicts and employee resistivity within business as well. Along with this, impact of workers relations on operations of company including ALDI can be described as:-
- In big companies like ALDI, taking actions in change management is not possible by an individual. So, HR managers need to discuss about changes with employees and communicates with them in a proper way. This would help in getting reviews and opinions on implementation of alterations.
- Include workers in decision-making procedure help management to bring up morale of them as well as motivate to work hard.
- Good relations among workers and employees with management assist companies to eliminate chances of conflicts.
- Along with this, HR team can easily identify needs and requirements of workers for accomplishing a task. This will aid them in formulating policies and according to employees.
Therefore, management of ALDI Company has used many methods to maintain relation of employees like bargaining and consultation. Through collective bargaining, HR managers used to take opinion and views of workers on a certain point and according to their feedback they make decisions (Gheiratmand and et. al., 2015). This procedure helps in generating feelings of equality and equally important like other persons in employees which brings their productivity in companies. Along with this, for understanding needs of people, HR manager has elected a representative of each department who inform them about demands of workers. Moreover, on regular basis superiors used to consultant these representatives about how to generate healthy and friendly relations among employees. It also promotes effective employee relation in an entity for their betterment and growth.
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P6 Key element of employee's legislation and its impact on decision making process of HRM
In order to provide equality in workers and protect them from humiliation, Government of UK has made employee legislations. It includes structure and guidance for organisation which states rights of employees. For eliminating discriminations occur on the basis of sex, age, gender, caste, colour and nationality etc. from workplace, regulatory bodies has made mandatory for organisations to comply their business with employment legislation. These regulations normally impact on decision-making process of human resource management (Ganopoulos and et. al., 2013). Therefore, HR managers are required to aware existing and new employees at the time of recruitment and selection about their rights in company including appraisals, dismissals and lay-offs procedure. These legislation impacts on decision-making process in following ways:-
- Employee legislations has made compulsory for companies to provide healthy and safe working environment to workers. They much used safety equipments and precautions to secure people who are working in their workplaces. If they didn't do so then government can take necessary actions against them (Importance of employment legislations on organisation. 2018).
- HR managers have to provide essential training and development programs to existing and new workers in order to make them able to work in a desired manner. At the time of recruitment, they should entails new workers about terms and conditions of enterprise, pay scales, appraisal period as well as provide them inductive training for at least three month. These programs help recruiters to become familiar with new working organisation.
- Such regulations impact on CSR (Corporate Social Responsibility) of firms.
Employee legislations include various laws and regulations in order to create equality among workers as well as protect them from all type of discriminations and harassment (Ehrnrooth and Björkman, 2012). Such laws include Employment Rights, Minimum Wage Act, Sex Discrimination Act, Equal Pay Act etc. All acts has different meaning but have same purpose i.e. to generate equality among people in industries
Sex Discrimination Act 1984: This act has establishes in order to protect workers from unfairness which occur on the basis of their gender, marital status, sexual orientation and personal identifications. It also preserves employees from harassment and humiliations which includes inappropriate behaviour with them by another person. If any such activity has done in office that make persons uneasy and insecure while working then its responsibility of HR management to take action against these. Along with this, if harassed persons think that no action has taken then they can lodge complaint in regulatory bodies. Currently, ALDI has 7000 stores in various countries in which millions of people are working (Durão and et. al., 2012). Apart from large working organisation, its management always try to provide equality among workers.
The Employment Right Act: This law defend employees from unfair dismissals, heavy workload and redundancy. It strengthens the right of workers to get flexible working hours and parental leave in workplace. As stated in Section 86 of this Act, it is amendable for all enterprises to give notice period to employees with proper reason before termination. Any firm cannot terminate a worker without specific reason if they do then will be legally penalised by government. Section 135 Act include redundancy payment that provides the right to compensation for an employee. An employee can demand compensation if his job becomes obsolete. This redundancy payment can be calculated on basis of employees experience in a company as well as his age also matters in the same.
Equality Act 2010: This is the most powerful act established in 2010 which replaces all previous laws of employment legislations. Through this law, UK government gets much success in eliminating illegal discrimination, harassment and humiliations from workplace of organisations (Costea, Amiridis and Crump, 2012). Equality Act provides various rights to employees like equal opportunities for all people to get jobs according to their skills and qualifications. Therefore, HRM of ALDI provides equality among workers by giving equal salaries on the basis of their jobs, flexible working hours in order to reduce stress and heavy workload pressure. Along with this, for their retentions managers provide appraisals like incentives, holiday tours, insurance and pension scheme etc.
P7 Application of HRM practices
A retailer company like ALDI can achieve its objectives only with the efforts of workers. This company has main goal is to gain high retention of customers, therefore, it needs to replace CRM (Customer Relationship Manager with) with new one who has possessed all required skills and knowledge. With this assistance, its HR manager has made job specification and further documents to recruit best person for this job in the following manner:-
Post: Customer Relationship Manager
Department: Customer Relationship Management
· Maintain relationship with customers in order to optimise long term value
· Manage demands and complaints of customer efficiently
· Determine ways through which workers can enhance experience of each customer so that they can retain with firm.
Roles & Responsibilities
· Assign workload to employees according to their skills in order to meet project on time
· Develop short-term goals for achievement of long-term targets.
· Set bold aims and objectives with clear vision for development of customer relations.
· Formulate strategies by concerning on issues related to consumers.
· Engage employees in group and leads them proper by providing appropriate facilitates.
· Enhance sales performance
Aggressive Customer relationship manager in big retail companies who assess an effective deal of information to provide best services. Worked with sales and customer service departments so, able to update policies regarding consumer services.
· Master of Business Administration
· Graduate in commerce faculty
Ten Years of experience in CRM as officer
· Excellent Corporate Communication skills
· Dedicated to create high customer service
· Interact consumers to get their feedback with full efficiencies
· Ability to resolve conflicts between workers
· Believe in providing ongoing training to all associated workers.
· Driven and energetic
· Sense of urgency
· Competitive nature
Creation of Structured Interview: After getting list of applicants by advertising job specification on websites, newspaper and other resources of social media, HR managers have to formulate some questionnaire for further interview procedures (Chang, Chiang and Han, 2012). This process will help committee to choose a right candidate for specific position of CRM department. Therefore, Managers and other committee members has made following questionnaires to judge skills of candidates:-
- Introduce yourself into one line.
- According to you what qualities a customer relationship manager should have?
- How can you manage conflicts among large number of employees in a workplace?
- What can you maximise productivity of workers?
- Elaborate the term CRM.
Offer Letter: Through analysing skills and knowledge of candidates, HR managers will choose a right candidate (Bondarouk and Ruël, 2013). So, it is a duty of them to provide offer letter to selected applicant who includes roles and responsibilities of CRM manager in retail industry, pay scales, working hours, joining date and more. This would help new recruiter to know duties as well.
From this report, it can be summarised that human resource management is main department of an organisation whose main function is to provide workers. HR managers used many methods to recruit best talented workforce within workplace. Along with this, managers manage people of all departments as well as their activities and provide them various facilities so that they can work in a desired manner. Efforts of workers assist companies to achieve success and growth in business appropriately. Therefore, managers used to create healthy and positive working environment which help them to perform their job roles adequately. Superiors of human resource management concerns on employee legislation and comply workforce accordingly.
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