The Role of HRM and Organisational Development Case Study

Introduction

The report will discuss the role of HRM and organizational development by considering the case company Aldi, which is grocery store that was first established in Germany in 1961. The store aims to abridge the grocery store knowledge and offer far inferior prices than competitor. Today the company’s headquarter is in Batavia, Illinois. The report will deal with the issue of skills famine and hard-to-fill vacancy in the Aldi. The key features of the report are to provide a clear idea and roadmap to achievement. The reports priority purpose is to develop recruitment and worker engagement and encouragement, and to build up internal talent (Pinnington, et. al. 2022). The report will explain and compare the roles and functions of HRM section add to sustainable organisational presentation. This will also review on changing nature of organisation effect skills and information of HR section in an organisation (Sardi, et. al. 2021). The objective of the report is to evaluate HRM in relation to the altering nature of the contemporary business organisation and different recruitment and retention practices that HRM in Aldi may use to attain business objectives

Task 1

The Roles And Functions Of Hrm Section Which Add To Sustainable Organisational Performance

Human Resource Management (HRM) department plays a critical role in ensuring the sustainable performance of an organization (Bhatti, et. al. 2022). Sustainable performance refers to the ability of an organization to maintain its productivity, profitability and growth over a long period of time while fulfilling its social and environmental responsibilities.

The key functions and roles of HRM department that contribute to sustainable organizational performance:

1. Talent Acquisition and Retention: HRM department is responsible for recruiting and retaining skilled and diverse employees who are associated with the organization's vision and standards (Cahyadi, et. al. 2022). 
2. Performance Management: HRM department establishes and monitors performance metrics and processes to ensure that employees are meeting the organization's expectations. 
3. Training and Development: HRM department provides training and development opportunities to enhance the skills and competencies of employees. 
4. Employee Engagement and Well-being: HRM department creates and maintains a positive work environment that fosters employee engagement, well-being, and job satisfaction (Al?Ghazali and Afsar, 2021). 
5. Corporate Social Responsibility (CSR): By engaging in CSR activities, HRM helps to enhance the organization's reputation, attract and retain customers, and contribute to the organization's sustainable performance.

The Varying Nature Of Organisations Affects Skills And Knowledge Of Hr Section In An Organisation

The changing nature of organizations, such as technological advancements, globalization, and shifting workforce demographics, has a significant impact on the skills and knowledge required by the HR department in Aldi. Here are some key areas where these changes are affecting the HR department:

1. Technology: The use of technology is rapidly changing how HR departments operate, and Aldi is no exception. With the increasing use of HR software and systems, HR professionals in Aldi need to have a good understanding of data analysis, automation, and AI (Almarzooqi, et. al. 2019). 
2. Globalization: As Aldi expands globally, the HR department needs to be equipped with the skills and knowledge to manage a diverse workforce across different cultures and geographies. The ability to design and implement HR policies and practices that align with the organization's global strategy.
3. Workforce Demographics: With the changing demographics of the workforce, Aldi's HR department needs to be able to address the needs and expectations of a multi-generational workforce, including Millennials, Gen Z, and Baby Boomers (Zeebaree, et. al. 2019). This requires HR professionals to be skilled in areas such as employee engagement, talent development, and diversity and inclusion. 
4. Agility and Innovation: As Aldi competes in an increasingly dynamic and fast-paced business environment, the HR department needs to be agile and innovative in its approach to talent management (Malik, et. al. 2020). 

An Inspection Of HRM In Relation To The Altering Nature Of The Contemporary Business Organisation

The contemporary business environment is rapidly evolving, and this has significant implications for the role of Human Resource Management (HRM) within organizations. Some ways in which HRM is adapting to the changing nature of contemporary business organizations:

1. Strategic Partner: HRM is increasingly seen as a strategic partner in the organization, playing a key role in shaping the overall direction and success of the business. As organizations face new challenges such as increasing competition, technological advancements, and changing workforce demographics (Bilan, et. al. 2020).
2. Talent Management: HRM is responsible for attracting and retaining top talent in the organization. With the changing nature of work, HRM needs to focus on developing flexible work arrangements that cater to different lifestyles and preferences, as well as creating an engaging work culture that fosters employee satisfaction, productivity, and innovation.
3. Digital Transformation: The digital transformation of the workplace has resulted in new job roles and increased automation. HRM needs to have a good understanding of technology and digital tools, including data analytics, automation, and artificial intelligence. 
4. Diversity and Inclusion: The changing nature of the workforce, with the rise of the gig economy and the increasing number of remote workers, has made diversity and inclusion a critical issue for HRM (Anwar and Abdullah, 2021). HRM needs to develop policies and practices that create a diverse and inclusive work environment, including the recruitment and retention of diverse talent, and the creation of a culture that embraces different perspectives and backgrounds.
5. Corporate Social Responsibility (CSR): The changing nature of the business environment has also increased the importance of CSR for organizations. HRM needs to work with other departments to develop and implement CSR initiatives that align with the organization's values and goals (Podgorodnichenko, et. al. 2020). This also includes the promotion of ethical practices, sustainability, and community engagement.

Re-Evaluate Different Recruitment And Retention Practice That HRM In An Organisation Might Use To Attain Business Objectives

Some recruitment and retention practices that HRM in Aldi may use to achieve business objectives:

1. Recruitment: To attract top talent, Aldi uses a range of recruitment practices, including online recruitment portals to attract and screen candidates. This allows Aldi to reach a wider pool of candidates and to identify those with the required skills and experience. Aldi encourages its employees to refer potential candidates. This is an effective way to identify candidates who are a good fit for the organization and who are more likely to stay with the company long-term (Morris, et. al. 2021). Aldi uses social media to promote job vacancies and to engage with potential candidates. 
2. Retention: To retain top talent, Aldi uses a range of retention practices, including employee’s competitive remuneration and benefits packages, including healthcare, retirement plans, and employee discounts. This helps to attract and retain top talent. Aldi offers its employees opportunities for career development, including training programs and job rotations. This helps to keep employees engaged and motivated and encourages them to stay with the company long-term goals. 
3. Employer Branding: Aldi also uses employer branding practices to attract and retain top talent (Yong, et. al. 2020). This includes promoting the company culture, values, and mission to potential candidates, highlighting the opportunities for career development, and showcasing the benefits and rewards of working for Aldi.

The Use Of HRM Practices In Retention And Recruitment In Relation To The Significance Of The Labour Market

The labor market plays a crucial role in shaping the recruitment and retention practices of organizations. To attract and retain top talent in a competitive labour market, HRM practices need to be strategically designed and implemented. 

1. Recruitment: In a tight labour market where there is a shortage of skilled workers, HRM practices in recruitment which needs to be designed to attract potential employees. This can include using digital recruitment channels, promoting the company's brand as an employer, and offering competitive compensation packages.
2. Retention: In a competitive labour market, it is important to retain high-performing employees to avoid the cost of employee turnover (Ahmad, et. al. 2021). HRM practices in retention need to be designed to create an engaging and supportive work environment. 
3. Employer Branding: In a labour market where talent is in high demand, it is important for HRM to focus on developing and promoting the company's employer brand. 
4. Flexible Work Arrangements: With the changing nature of work, HRM practices in recruitment and retention which need to be designed to accommodate employees' needs for flexibility. 
5. Diversity and Inclusion: HRM practices in recruitment and retention also necessitate to be designed to foster a diverse and inclusive workplace (Shatilo, 2019). This can include implementing diversity and inclusion programs, recruiting from a wide range of talent pools, and providing training and support to managers and employees on diversity and inclusion issues.

Critically assess the strengths and weaknesses of HRM in terms of its role to business accomplishment 

Strengths:

• Talent Acquisition: HRM is responsible for hiring and recruiting employees, which is crucial for the success of the organization. Effective recruitment processes can help to attract top talent, which can lead to higher productivity and better business performance.
• Employee Retention: HRM is responsible for creating a work environment that encourages employee engagement and retention (Farley, et. al. 2020). By investing in employee development and providing opportunities for career growth, HRM can reduce turnover rates and improve business performance.
• Employee Development: HRM is responsible for developing employee skills and knowledge, which is essential for the success of the organization. 
• Strategic Planning: HRM plays a key role in strategic planning by aligning human resources with the organization's goals and objectives. 

Weaknesses:

• Cost: HRM can be a costly function for organizations, especially for small businesses. The cost of recruitment, training, and development can add up quickly, and may not always result in a positive return on investment.
• Resistance to Change: HRM can face resistance from employees and managers when implementing changes to policies and procedures. This can be a challenge for organizations that need to be flexible and adaptable in response to changing market conditions.
• Legal and Ethical Issues: HRM must comply with a range of legal and ethical issues, such as equal employment opportunity laws and privacy regulations (Brown, and Harvey, 2021). This can be a challenge for organizations that operate in multiple jurisdictions with different laws and regulations.
• Lack of Measurable Outcomes: Measuring the effectiveness of HRM practices can be difficult, and may not always result in clear and measurable outcomes. 

Recommendations and Consideration for the Roadmap:

Carry out an study into the external and internal factors that influence HRM decision in the workplace HRM (Human Resource Management) decisions in Aldi are influenced by a range of internal and external factors. Here are some examples of these factors:

Internal Factors:

• Company Culture: Aldi's culture values efficiency and cost-effectiveness. This influences HRM decisions in areas such as employee training and development, where Aldi's focus is on practical skills development rather than theoretical knowledge.
• Organizational Structure: Aldi's organizational structure is designed to enable efficient decision-making and communication (Malik, et. al. 2020). This influences HRM decisions in areas such as recruitment and retention, where Aldi seeks to hire employees who are able to work effectively in a fast-paced and hierarchical environment.
• Resources: Aldi's financial resources are a factor that influences HRM decisions, particularly in relation to employee compensation and benefits. For example, Aldi's compensation package is designed to be competitive within the retail industry, but may not be as generous as packages offered by larger corporations.

External Factors:

• Economic Conditions: The economic conditions of the markets in which Aldi operates can impact HRM decisions in areas such as staffing levels and employee compensation. For example, during an economic downturn, Aldi may need to reduce staffing levels or freeze salary increases to maintain profitability.
• Labour Market Conditions: The availability of skilled workers in the labor market can influence HRM decisions in areas such as retention and recruitment. For example, if there is a shortage of skilled workers in the retail industry, Aldi may need to offer more attractive compensation packages or increase its recruitment efforts.
• Legal and Regulatory Environment: Laws and regulations related to labor and employment can influence HRM decisions in areas such as employee benefits and workplace safety. For example, Aldi must comply with minimum wage laws and workplace health and safety regulations, which may impact its compensation and training policies.

Examine And Evaluate These Factors And How They Sustain Organisational Development

Internal and external factors can significantly influence the Human Resource Management (HRM) practices that an organization like Aldi adopts. For instance, if Aldi has a culture that values innovation and employee development, it may adopt HRM practices that prioritize training and development to encourage continuous learning and skill enhancement among its workforce. This, in turn, supports Aldi's organizational development by fostering a workforce that is more skilled and adaptable to changing market conditions. The structure of an organization also influences its HRM practices. For instance, if Aldi's structure is flat, with few layers of management, it may adopt HRM practices that empower employees to make decisions and take on more responsibilities (Thanetsunthorn, 2022). This approach can support Aldi's organizational development by increasing efficiency, promoting faster decision-making, and creating a more agile workforce. The economic environment in which Aldi operates can impact its HRM practices. For example, during a period of economic growth, Aldi may invest more in HRM practices that attract and retain top talent. A stable political and legal environment with supportive policies and regulations can support organizational development by creating a predictable and conducive business environment. 

Task 2

HRM Practices: A Job Review The Role Of Marketing Manager

Conclusion 

To remain competitive and sustainable, the HR department needs to continuously adapt to these changes by developing new skills, knowledge and capabilities that align with the organization's strategic objectives. Organizations that recognize the importance of HRM and integrate these functions and roles into their overall strategy are more likely to achieve long-term sustainable performance. The report has concluded the HRM needs to be proactive in adapting to these changes by developing new skills, knowledge, and capabilities that align with the organization's strategic objectives. In conclusion, HRM can be a valuable function for organizations in contributing to business success by attracting and retaining top talent, developing employee skills and knowledge, and aligning human resources with strategic objectives.

References

1. Ahmad, S., Islam, T., Sadiq, M. and Kaleem, A., 2021. Promoting green behavior through ethical leadership: a model of green human resource management and environmental knowledge. Leadership & Organization Development Journal.
2. Al?Ghazali, B.M. and Afsar, B., 2021. Retracted: Green human resource management and employees' green creativity: The roles of green behavioral intention and individual green values. Corporate Social Responsibility and Environmental Management, 28(1), pp.536-536.
3. Almarzooqi, A.H., Khan, M. and Khalid, K., 2019. The role of sustainable HRM in sustaining positive organizational outcomes: An interactional framework. International Journal of Productivity and Performance Management, 68(7), pp.1272-1292.
4. Anwar, G. and Abdullah, N.N., 2021. The impact of Human resource management practice on Organizational performance. International journal of Engineering, Business and Management (IJEBM), 5.
5. Bhatti, S.H., Saleem, F., Murtaza, G. and Haq, T.U., 2022. Exploring the impact of green human resource management on environmental performance: the roles of perceived organizational support and innovative environmental behavior. International Journal of Manpower, 43(3), pp.742-762.
6. Bilan, Y., Mishchuk, H., Roshchyk, I. and Joshi, O., 2020. Hiring and retaining skilled employees in SMEs: problems in human resource practices and links with organizational success. Business: Theory and Practice, 21(2), pp.780-791.
7. Brown, D.R. and Harvey, D., 2021. An experiential approach to organization development. Pearson Education.
8. Cahyadi, A., Poór, J. and Szabó, K., 2022. Pursuing Consultant Performance: The Roles of Sustainable Leadership Styles, Sustainable Human Resource Management Practices, and Consultant Job Satisfaction. Sustainability, 14(7), p.3967.
9. Farley, J.U., Hoenig, S. and Yang, J.Z., 2020. Key factors influencing HRM practices of overseas subsidiaries in China's transition economy. In Human Resource Management in China Revisited (pp. 72-88). Routledge.
10. Malik, A., Froese, F.J. and Sharma, P., 2020. Role of HRM in knowledge integration: Towards a conceptual framework. Journal of Business Research, 109, pp.524-535.
11. Malik, S.Y., Cao, Y., Mughal, Y.H., Kundi, G.M., Mughal, M.H. and Ramayah, T., 2020. Pathways towards sustainability in organizations: Empirical evidence on the role of green human resource management practices and green intellectual capital. Sustainability, 12(8), p.3228.
12. Morris, J., Hassard, J., Delbridge, R. and Endo, T., 2021. Understanding managerial work in the modern Japanese firm: The influence of new organizational forms and changing human resource management practices. Economic and Industrial Democracy, 42(4), pp.1378-1406.
13. Pinnington, A., Aldabbas, H., Mirshahi, F. and Pirie, T., 2022. Organisational development programmes and employees’ career development: the moderating role of gender. Journal of workplace learning, 34(5), pp.466-496.
14. Podgorodnichenko, N., Edgar, F. and McAndrew, I., 2020. The role of HRM in developing sustainable organizations: Contemporary challenges and contradictions. Human Resource Management Review, 30(3), p.100685.
15. Sardi, A., Sorano, E., Garengo, P. and Ferraris, A., 2021. The role of HRM in the innovation of performance measurement and management systems: a multiple case study in SMEs. Employee Relations: The International Journal, 43(2), pp.589-606.
16. Shatilo, O., 2019. The impact of external and internal factors on strategic management of innovation processes at company level. Ekonomika, 98(2), pp.85-96.
17. Thanetsunthorn, N., 2022. Organization development and cultural values of trust in international contexts. Review of International Business and Strategy, 32(4), pp.520-544.
18. Yong, J.Y., Yusliza, M.Y., Ramayah, T., Chiappetta Jabbour, C.J., Sehnem, S. and Mani, V., 2020. Pathways towards sustainability in manufacturing organizations: Empirical evidence on the role of green human resource management. Business Strategy and the Environment, 29(1), pp.212-228.
19. Zeebaree, S.R., Shukur, H.M. and Hussan, B.K., 2019. Human resource management systems for enterprise organizations: A review. Periodicals of Engineering and Natural Sciences, 7(2), pp.660-669.