CASE STUDY

CASE STUDY

CASESTUDY

Aldiis a leader in retailing having more than 8,000 stores globally. Theretailer has seen its expansion in North America, Australia, andEurope. The brand of the organization is usually linked with valuefor money (Prasad,2015 p.74).The stores of the organization offer customers with varied products.Aldi ensures that it emphasizes on offering high quality productsthat have excellent value to the customers. The company worksexceedingly hard in ensuring that it keeps prices low for itsproducts (Brandes&amp Brandes, 2015 p.96).This report will discuss the role of human resources management insupporting the strategic objectives of Aldi, areas that needs to beprioritized so as the organization can attain its aspirations, thechallenges that HRM is likely to face in supporting the organizationand recommendations that should be undertaken.

1.What is the role of human resources management in supportingstrategic objectives of the organisation?

Astrategic objective entails an objective which an organization needsto accomplish so as to make its strategy succeed. The human resourcemanagement plays a critical role in the support of strategicobjectives of an organization. The strategic objectives of Aldi aretwofold how the organization will keep the cost down and ensuremaintenance of quality is high and how the organization will motivateits employees. A critical role of the human resource management inthe support of strategic objectives of the organization is ensuringthat the organization have the right people to ensure the success ofthe strategic objectives (Verweire, 2014 p.104). Thus, the humanresource management has to place a great emphasis on how recruitment,training and development of employees are carried out. The humanresource management has to ensure that employees have the necessaryknowledge and skills so as to make them perform their tasks andduties with competence. Training of employees is critical because ithelps in increasing business efficiency and making employees becomemotivated through increasing job satisfaction. There is nothing moreimportant than having motivated employees in an organization becauseit is the motivation that makes employees become dedicated to theirjobs it is this dedication that translates to better organizationoutcome.

Thehuman resource management has to ensure that it attracts the bestcandidates during the recruitment process. Attracting the bestcandidates is critical to an organization because it would ensurethat an organization retains candidates or employees that areknowledgeable and have the competence in the delivery of services tothe organization. In order to ensure that an organization attractsthe best candidates during the recruitment process, it is importantfor the human resource management to offer industry-leading salariesat the different levels that it needs to have staff. Attractiveremuneration package offered by the human resource management wouldensure that those individuals that hold the right skills required forthe job have an interest in working for the organization (Lauby,2005 p.17).

Also,the human resource management, in supporting the strategic objectivesof the organization, has to ensure that the employees that becomehired possess the right set of skills and have competencies thatmatch the roles that they are expected to deliver within theorganization. This is ensured by the human resource managementthrough having a rigorous and effective selection process during therecruitment process. Furthermore, the human resource management hasthe role of ensuring that employees receive training and development.Continuous training and development is critical in the attainment ofstrategic objectives because it increases the efficiency with whichemployees carry out their roles within an organization. Training anddevelopment also motivates employees, making it feasible to supportthe accomplishment of strategic objectives (Noe,2012 p.102).

2.Explore and identify the main areas that need to be prioritised byAldi to achieve the aspirations identified above.

Aldihas two aspirations that it desires to meet first, the organizationdesires to keep the cost down and ensure maintenance of quality.Second, the organization aspires to motivate its employees.

TheHR can be in a position to meet these aspirations through differentways. One of the aspirations of the organization is to ensure qualityas it keeps the cost down. The human resource can assist with thisaspiration through ensuring that employees carry out their roles withefficiency efficiency will help in keeping the cost down sinceinputs will be utilized in the best way possible in providing optimumoutcome. In making the employees ensure efficiency in the roles thatthey perform, it is critical for the HRM to ensure that theorganization obtains people having the right set of skills. In orderto obtain people having the right set of skills, the company willneed to provide clear and detailed job descriptions for the positionsthat it requires filled. In the job description, the company has toindicate the tasks and responsibilities for the required position andthe skills as well as competencies required for a person to succeedin being considered for the role. Providing of the job description isnot enough in ensuring that the company obtains people having theright set of skills. Human resource manager of the company has toensure that through interviewing and assessment of the candidates,the candidates selected have the precise skills and competencieswhich the job requires. In case the selection process indicates thatthe candidates are suitable, then the candidates would be recruitedand the company can be confident that it would be capable offulfilling its aspiration of ensuring quality while keeping costdown.

Anotheraspiration that the company has is how it would motivate itsemployees. The HRM can assist with this aspiration by providing theorganization with the best alternatives of non-monetary motivationalstrategies. There are different non-monetary motivational strategiesthat the HRM can assist the organization with. One such strategy thatthe HRM can use in motivating the employees of the organization isinvolving them in the making of decisions that are likely to affectthem (Sims,2007 p.81).For instance, the organization may involve the employees whenformulating policies that should guide their working guidelines andwork safety. Involving employees in major decisions of theorganization would make employees become motivated since they wouldsee that the organization values them. Also, the human resourcemanagement can provide a strategy to the organization, where theorganization recognizes the excellent performance of employeeswithout offering any money (Lauby,2005 p. 22).For instance, the leaders can write a note that would circulate inthe organization congratulating employees that do exemplary in theirwork or mentioning their success during regular meetings of theorganization. This recognition would make employees encouraged toeven show better performance in the future. Also, employees may bemotivated through the organization offering them the power to decidetheir main working hours instead of following the usual 9 to 5. Thisflexibility would give employees a motivation to work for theorganization. Furthermore, employees’ development may be anothersignificant way of motivating employees (Bruce, 2003 p.85).

Themost important areas that the organization needs to prioritize inentails recruitment, training and development, as well as providingnon-monetary incentives to the employees. Recruitment is ofimportance because it has to ensure that the organization obtains thebest candidates that are capable of handling its customers well andensure quality. Training is exceedingly critical since it will helpthe organization in attaining the two strategic objectives. Trainingwould offer employees the right skills that would help them deliverquality to customers through ensuring efficiency. Also, trainingwould offer motivation to employees since it would make employees tobecome more confident in handling their roles (Prideet al., 2010 p.264).Alternatively, employees’ development and giving non-monetaryincentives would be important since they would help in motivatingemployees thus, helping the organization accomplish its aspirationof motivating employees.

3.Identify and Evaluate the Role and Challenges of HRM in SupportingAldi

Insupporting Aldi in realizing its aspirations, there are differentchallenges that may face the HRM. One of the challenges that the HRMmay experience in its attempt to support Aldi in its aspirations is alack of sufficient workforce. In realizing its aspirations, it isimportant for the organization to have the right number of workerssince it is through the workers that the organization is going torealize its aspirations. From the case study of the organization, itis apparent that the organization does not have sufficient staffsthat can handle the different roles of the organization withoutstraining. It is indicated that the organization needs to hire 4000new staff members within 12 months so as to have the right number ofemployees in its stores. This represents a challenge to the HRMbecause it is not possible to offer training to employees that arenot there. Also, the organization needs to hire 4,000 new employeesin the next 12 months this may present a challenge to the HRMbecause it is not clear whether the organization would hire all theemployees at once or at intervals so that the HRM can plan for theinitiative. Therefore, lack of sufficient workforce implies that theHRM would have to wait until the organization hires a sufficientnumber so as to proceed with the initiative. Hence, more time may berequired in realizing the aspirations of the organization.

Anotherchallenge is that the organization may not have enough funds that itcan allocate to the human resource departments to accomplish theinitiatives of the organization. Considering that the organizationrequires hiring of 4,000 new recruits to increase its workforce andattain the correct staffing needs, it implies that the companyrequires to have sufficient resources that can cater for the hiringprocess. For instance, for an effective hiring process, theorganization would need to advertise, select, interview, and trainthe employees. Training of 4000 employees may be quite demandingespecially when the employees are trained out-of-job trainings. Sincethe organization wants to cut costs while attaining quality, the HRMmay face the challenge of resources.

Also,another challenge that may face the HRM in the support of theorganization’s aspirations is finding the right individualsmatching the needed skills in different regions that the organizationhas stores. Depending with the needs of the organization, the humanresource department has to offer support to the organization byensuring that it offers job descriptions, including the skills, whichmatch the needs of the organization. Although the human resourcedepartment has the best interest in hiring the right individuals, thehuman resource manager may be faced with the challenge of not findingthe right candidates who have the required skills for the jobdescriptions (Hitchens&amp Hitchens, 2010 p.37).In some regions where the organization has stores, there may be lackof skilled labor. This would make the HRM encounter the challenge ofgetting the right people who have the required skills that theorganization can use in realizing its strategic objectives. In such ascenario, the recruitment process may not be effective since the HRMmay be forced to go for persons who do not match the organization’sneed as a result of lack of skilled labor for instance, HRM may beforced to go for individuals who do not possess all the skillsrequired, but have partial skills.

4.Recommendations

Oneof the recommendations is that the organization needs to first of allhire the 4,000 new staff members. This will help in the realizationof the strategic objectives of the organization. Hiring the rightnumber of employees is essential to the achievement of theorganization’s strategic objectives because it will help theorganization do its plans with the right number of people. In casethe organization does not first of all hire the needed employees inits staffing requirements, it will be problematic achieving itsstrategic objectives because employees will not be motivated to workin an environment, where there is insufficient staffing since theywill be forced to handle more work and roles that should be handledby more than one staff. This would lead to overworking of theemployees, which in turn would result in de-motivated employees.Also, due to lack of motivation resulting from insufficient staffing,the employees would not carry out their responsibilities efficiently.Therefore, it is critical for Aldi to first of all hire the 4,000employees who would help in the realization of the organization’sobjectives.

Anotherrecommendation is that the organization should ensure that the humanresource manager is allocated enough resources that would help inhiring of the right number of employees. Although the organizationwants to keep the quality high and cost low, it must meet the cost ofhiring new employees because it is these employees that will help theorganization in realizing its strategic objectives. The companycannot forgo the cost of hiring the new employees for the strategicobjectives the organization must have the right employees and equipthem with sufficient training in order to accomplish its plans.Therefore, it is recommended that the organization should providesufficient resources to the HRM for the hiring process.

Also,it is recommended that the HRM should ensure that only the rightpeople who possess the skills required by the organization get hired(Sims,2007 p. 54).This is of immense importance because it will help the organizationto use the right people in the realization of its strategicobjectives. In case a region does not have individuals who have theright skills needed by the organization, the human resource managershould not go for anything less, and may think of outsourcing laborfrom other regions that have individuals who possess the rightskills. This would be a great advantage to the organization becauseit would not undergo the extra cost of training the individuals whodo not possess the skills needed. Furthermore, hiring individuals whohave the right skills required by the organization would offer theorganization an easy time to realize its goals since the hiredemployees have the right skills required by the organization inrealizing its strategic objectives.

5.Refer to Appropriate Academic Literature and other OrganizationalExamples to Support the Above

Thevalue of training and development has been indicated by differentliterature, which is a depiction that training and development iscritical for Aldi. According to Schneier (1994), most of the Americanbusinesses today spend approximately $30 billion every year ontraining and development initiatives (p. 209). Schneier indicatesthat development is of great importance because it helps inmotivating employees. Organizations such as the Apple Company haveused training and development in ensuring quality in theorganization. Dunmore (2005) indicates the importance of hiring theright people. According to Dunmore (2005), hiring the right peoplehelp in the fulfillment of an organization’s strategy. Non-monetaryincentives have successfully been utilized in motivating employees indifferent organizations such as Walmart.

Conclusion

Basedon the strategic objectives of Aldi, which are to motivate itsemployees and ensuring quality at low cost, the organization wouldrequire the efforts of its employees. This is an indication thatemployees emerge as the most valuable assets that Aldi can use inattaining its strategic objectives. The organization has to hire theright people who have the required skills this would be a criticalaspect towards the organization’s strategic goals because hiringthe right people with the needed skills would mean that theorganization would have the right minds that it can use in deliveringquality to its customers. Hiring the right people would ensureefficiency that would deliver quality to the organization. Also,through hiring the right individuals, the employees would becomemotivated since they would be in a position to assist each other inresolving issues. Training and development would also be criticalaspects to the organization since they would help in motivating theemployees, which is a key goal of the organization.

ReferenceList

Brandes,D., &amp Brandes, N. (2015). Bareessentials: The Aldi success story.Wien, Linde.

Bruce,A. (2003). Howto motivate every employee: 24 proven tactics to spark productivityin the workplace.New York, McGraw-Hill.

Bruce,A. (2011). Abriefcase book Manager`s guide to motivating employees.New York, McGraw-Hill.

Dunmore,M. (2002). Inside-outmarketing: How to create an internal marketing strategy.London: Kogan Page.

Hitchens,P. &amp Hitchens, J. (2010). Createthe Perfect Brand: Teach Yourself.New York, Hodder &amp Stoughton.

Lauby,S. J. (2005). Motivatingemployees.Alexandria, Va, ASTD Press.

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Sims,R. R. (2007). Humanresource management: Contemporary issues, challenges andopportunities.Greenwich, Conn, Information Age Publ.

Verweire,K. (2014). StrategyImplementation. London,Routledge.