Aldi Human Resource Management

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Recommended: Importance of developing a human resource plan in strategic human resource management

Human Resource Management (HRM) is build from numerous sectors within allowing better efficiency levels to be reached my organisations. Some believe that certain topics such as performance management and rewards are the most crucial topics in HRM. In this essay these areas of HRM will be critically analysed to see why they are the most significant in running a successful operation of HRM in organisations.
Performance management is the scheme through which organisations lay down work goals, establish performance standards, allocate and assess work, offer performance reviews, decide upon training and development needs and issue rewards (Briscoe and Claus, 2008). Performance management is a vital tool used in HRM to ensure a similar vision is …show more content…

They can use this data to recognise gaps in the organisation. This can then be used to plan the training and development needs; it can find the most appropriate employees for the leadership development programs. Aldi is a well known retailer with over 8,000 stores worldwide; they spot future training needs through an on-going analysis of company performance in key areas at all levels. For example, the company monitors the availability of its products on offer to the customer within its stores. If the level drops below the targeted level of availability then a programme of training on order accuracy would commence. A typical off-the-job training course offered to employees by Aldi is performance reviews. Using this they decide whether further training is required and if so which training programme is the better option. In response Aldi is able to benefit by gaining more motivated staff, greater staff productivity and employees with greater skills and the capability to provide improved customer service (Jean Naylor, …show more content…

As highlighted by Egan (1995) this kind of collaborative development systems works most effectively indicating that performance management is a fundamental aspect of HRM. The process identifies the best candidates in the organisation, and it differentiates them from the rest. This procedure within performance management decreases the personnel expenses and controls them. This was applied to a Dover Grammar School for Girls through careful planning and a strong focus on performance management, which proved to be successful in keeping payroll costs down while not compromising on quality of teaching. The bonuses are paid to only top performers as performance management ensures that they are distinguished from the others (GOV.UK, 2013). Another example is CEMEX UK, a supplier of cement and ready mixed-concrete containing 4,000 employees. This company uses individuals’ rating in their end of year appraisal meetings to determine whether they are entitled to a bonus (Armstrong, MA, 2009). In return motivation for employees’ increases, instability in motivation reduces and personnel expenses also lessen. This further emphasises that performance management is a crucial topic to the successful operation of HRM in

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