The Impact Of Human Resource Management On Aldi’s Economic Performance

Analysis of Aldi’s Human Resource Management System

Aldi supermarkets commonly known as ALDI, is a brand of German discount supermarket chains that have over 10,000 stores in 20 countries worldwide. The supermarket has an estimated turnover of 50 billion euros in the countries of operations. The supermarket chain was founded in 1946 by two brothers Theo and Karl Albrecht after taking over their mothers’ store.  The supermarket is headquartered in Essen in Germany (Armstrong, and Taylor, 2014). Aldi consists of two companies Aldi Sud and Aldi Nord which have been operating separately since 1966 and have different headquarters. There are 35 individual separate companies operating under Aldi Nord while Aldi Sud operates about 32 regional companies operating in 20 countries.

The problem with Aldi is that it has an issue with its human resource management in most of its stores. The employees in some countries are underpaid and overworked and therefore there is a high human resource turnover. In the work a detailed analysis of the working hours of the employees of the enterprise was carried out when planning the use of human resources. The questions of the organization of the workplace are considered, recommendations are given for planning the working time of the employees, equipping the workplaces and their workplace equipment (Bratton and Gold, 2017). The success of a modern company like Aldi is wholly and entirely determined by the effectiveness and quality of training of its employees. To date, the value of a successful company is only 25% of its tangible assets, and the remaining 75% are intangible assets, namely human resources. Aldi is just the same as other organizations. In this paper, will examine how the management of the company’s human capital affects the economic performance of its activities and the company’s place among similar ones on the global market (Jackson, Schuler, and Jiang, 2014).It is known that in the country there is a shortage of skilled workers in high-tech enterprises, in particular, because the labor succession of generations has been violated.

This problem will increase in the conditions of creating new jobs in high-tech sectors of service and retail. Sustainable Development and it is obvious that these jobs cannot be staffed with low-skilled migrant workers.At the same time, it should be noted that at the present time most entrepreneurs have no economic interest in replacing living labor with materialized ones, i.e. in the replacement of workers engaged in unskilled manual labor, expensive equipment (Brewster, Chung, and Sparrow, 2016).

Effect of Remuneration on Employee Productivity

Availability of access to cheap unskilled labor inhibits the process of reducing manual unskilled labor, the release of people engaged in heavy work and in conditions that do not meet the hygienic labor standards. On the other hand, in the conditions of creating high-tech jobs, the role of personnel planning in enterprises is increasing, which is due to the lengthening of training terms specialists. Thus, the preparation of a skilled worker for a high-tech enterprise can be 8-10 years (Brewster, and Hegewisch, 2017). Obviously, the preparation of skilled workers must begin long before the appearance of such jobs. Personnel planning can cover the following areas: – the need for personnel, – the involvement or reduction of personnel, – the use of personnel, – the development of personnel, – the costs of maintaining staff. Every enterprise must implement a planning meeting its needs.

 Long-term hiring is especially important for high-tech enterprises, since in this case, substantial investments are required in training, training and retraining of new personnel. In addition, the management of the enterprise should be sure that the employee after training at the expense of the enterprise will not go to work for a competitor (Chelladurai, and Kerwin, 2017). The principle of seniority, in which the boss is always older in age than his subordinates, encourages older professionals to share their knowledge with young people, since they do not view young professionals as their competitors.

Aldi food stores and supermarkets have many employees in each of the store it operates. The main research design methodology is a questionnaire while others may use an interview to get information from the employees and the management. The research questionnaires may have questions regarding employees’ salaries, working conditions and promotions.  

 On the other hand, Stakeholders are groups, organizations or individuals that are influenced by the company and on which it depends (owners, clients, employees, business partners in the production chain, etc.), outsourcing of employees requires certain costs of the search and selection procedure. In addition, the salary of such employees is usually higher than when the vacancy is filled by the current employees of the enterprise (Collings, Wood, and Szamosi, 2018). At the selection stage, the most suitable candidates from the reserve created during the search and recruitment are considered. It is recommended to give preference to candidates who have the highest qualifications for performing actual work in the position they occupy, and not to those who appear to be most suitable for promotion. An objective decision about the choice can be based on the following characteristics: – education, – professional skills, – experience (experience), – medical characteristics, – personal characteristics. Interviews and tests are the most widely used methods of selection. Preliminary planning of staff reduction allows mitigating social problems (Knies, Gould-Williams, and Vandenabeele, 2017).

Comparison of Profit and Employee Welfare at Aldi

Secondary data is found from books magazines and internet sources concerning the management. The website of Aldi has a lot of materials associated with employees and employment planning. The organization has more than 80,000 employees worldwide. In some country they are paid above average wages while in some they are paid minimum wages with a lot of working time and a lot of work.

 The employees’ work is characterized by the use of their working time, as it is an indirect estimate of labor costs. In fact, economists cannot estimate labor costs directly (for example, the amount of calories expended) and measure them usually by the number of hours worked, and for the total number of workers – by the number of hours worked. Initially at any enterprise it is necessary to determine the fund of working time, which can be given to production (the maximum possible fund). To do this, from the calendar fund, absenteeism should be removed, which are mandatory (days off, holidays, regular holidays). Absences that are optional (illness, absenteeism, absence with the permission of the administration, etc.) are usually associated with the qualitative characteristics of the personnel themselves (Kramar, 2014). The likelihood of such non-attendance increases with the increase in the proportion of young people, disabled people, persons who have returned from places of detention, etc. Here we should pay attention to the indirect contradictions between the interests of employers and the state. In particular, the state is interested in full employment of young people, since it is at an early age that certain norms and ethical standards are formed, but this is not always reflected in the position of the administration of enterprises. Probably, the state should force or encourage employers to recruit young people by setting quotas or corresponding tax incentives. When planning the use of personnel, two tasks should be solved: 1) planning the working time of the company’s personnel for a certain time; 2) planning jobs with the prospect of expanding opportunities company and taking into account the introduction of technological product and process innovations. When planning the working time, the company’s managers are obliged to determine for the specific terms, sequence and stages of performance of official duties by employees for a certain period of time, with the possibility of adjusting plans in the course of their work activities and changing the working conditions.

In addition, while minimizing the costs of physical labor, psychological and mental energy of employees, which allows them to more effectively and successfully solve their tasks to increase productivity and reduce production costs [1]. The employee, in turn, independently solves the actual tasks facing him, for example: – draws up his list of tasks assigned to him and the terms of their fulfillment; – independently determines the priorities of the performed work; – develops a personal timetable for performing work; – makes changes to the schedule work performed when obtaining an urgent task or solving urgent tasks – independently monitors the deadlines for the performance of work – timely informs its management about the circumstances that prevent the timely implementation (Reiche, Harzing, and Tenzer, 2018).The list of tasks, schedules and deadlines for their implementation are compiled on the basis of the following: 1) the developed and approved employee work plan for a certain period; 2) associated instructions of the management for this employee; 3) additional tasks from adjacent departments of the company; 4 ) applications from suppliers and customers of other companies, 5) additional issues arising in the process of the main task. It is very important in your work to determine and think over the criteria for assigning cases to the category of special knowledge miscible. In this case, the principles of Pareto and Eisenhower can be used, and these tasks must first begin to fulfill the assigned tasks. [5] The next important condition that contributes to the successful accomplishment of the tasks is the ability to delegate authority and responsibility to subordinates (Sikora, and Ferris, 2014). Usually it is recommended to delegate tasks of less important, but urgent. Insufficient delegation is considered as the main reason for manager overload. However, before delegating assignments to employees, the manager must be assured of their competence and must follow the following procedures.

Importance of Long-term Hiring for High-tech Enterprises

Conclusions

First of all, it is necessary: ??prepare in advance for the meeting and state the final result without unnecessary reasoning and unnecessary conversations, 3) do not be distracted by extraneous conversations in your workplace by phone, discussing the company’s news, reducing the time for smoke breaks and drinking tea, The second component in planning the use of the company’s human resources is planning work places (Swart, Hansen, and Kinnie, 2015). It should be noted that if the workplace has a low technical equipment (capital adequacy), then talk about the effective use of personnel, even with full use of working time is impossible. in the social aspect – this is the scope of the individual worker’s activity, which determines the quantity and quality of tasks to be performed by this employee. It is an indicator of the employment of the country’s able-bodied population, as well as an indicator of the efficiency of the enterprise and the criterion of the quality of life of a person. In the economic aspect, it is the primary source of receipt of the employee’s salary and profit by the enterprise. Technologically, it is the main indicator of the production process, an indicator of the company’s efficiency and competitiveness in the market (Tian, Cordery, and Gamble, 2016). Jobs can be classified according to the following criteria: At the workplace, you need to have everything that is required to do the job. To do this, a detailed plan of the work to be done and to purchase all necessary items and tools. It is desirable to minimize unnecessary movement of the employee, not related to the performance of immediate work.

References

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