Introduction To Human Resource Management Case Study

Introduction - Key Talent Management Issues at ALDI UK & Solutions

Human resources management refers to as indentifying and implementing various process and strategy which help in attracting, retaining and managing employees of the company. This report is based on the implication of talent management within ALDI, UK. It is one of the leading retail companies of UK which aims at providing all grocery items at reasonable rate to the costumer. Company is having more than 12000 stores in the world and has attractive online presences. Market share of ALDI stood at 9.9 in year 2023 with annual revenue of £178.7 m in previous year (Revenue of Aldi, 2023). This report includes various issues which are facing by organization in relation to managing employees. It will also include various recommendations and finding which proves to be helpful in resolving various issues.

Talent Management:

Talent management refers to identifying various measures which prove to be helpful in effective attraction and retention of human resources. This management should be effectively carrying out in the organization as this helps in reducing employee’s turnover in company and support in improving employee’ satisfaction (Al Aina and Atan, 2020). It helps in controlling the cost of organization and assist in improving profitability of company. Talent management aims at enhancing skills and techniques of the existing employees by providing them effective training and development session which assists in improving overall working of company. This management includes 6 main components:

• HR Planning: Under this, plans are formed related to the needs of employees and decide on method by which employees could be acquired. This includes deciding on method for measuring employee’s performance and determines goals which each employee needs to achieve.
• On-boarding: This involves making the organization familiar to the employees by making them aware of all rules and regulation.
• Retention of employees: Various financial and non financial incentive are decided that assists in retention of employees.
• Career development and learning: This component involves providing training and development session that support in overall development of employees.
• Performance Management: These steps involve measuring actual performance of employees and determine policies for continuous improvement.
• Talent Management System: Each organization focuses on installing this software which assist HR in fulfilling all it duties effectively.

Key issue faced by ALDI in talent management

There are various issues which are faced by ALDI while managing employees in organization. Some of the issues are as follows:

Faced challenges in identifying competent talent: ALDI is facing challenges in attracting and acquiring talented employees due to large number of competitior in industry. Less competent employees results in reduction in effeciency with which worked have been done and ultimately increases cost of operations.

Determining growth potential of employees: For deciding effective training and development sessions for employees, company should focuses on determining growth potential of each employee (Choraś et al, 2020). It creates difficulty for HR manager to effectively determine growth potential of each employee as workers are less interested in sharing such information. Firm is not able to identify capabilities and potential of employees that results in ineffective talent management.

Improving performance of employees: If company is able to find growth potential of the employees then also it is difficult to improve performance of employees. Firm is also facing difficulty in motivating employees that can be beneficial in enhancing their performance. ALDI has provided various opportunities for employees that result in enhancing their performance but all employees are not interested towards indulging in such session and focused on completion of their work. Employees do not want to donate extra time which unable company to improve their performance and results into creating issues in talent management.

Accumulating need for training: Before deciding on development activities, company should determine actual need and preference of employees. If employees goals did not align with organizational goal than effectiveness of training session could not be gained. Manager should determine actual demand of employees and areas in which particular employ wants to gain skills (Kumar et al, 2019). Firm are unable to determine development needs of employees and decide on training and development for them, which creates issue in carrying out effective talent management in company.

Ineffective performance management: Performance management aim at determine actual performance of employees in comparison to standards which has been set. ALDI do not follow proper performance management tool which unable company in determining the growth of employees. This leads to generation of issue as company did not able to find workers who are lacking behind in completion of their task. Unawareness regarding this approach creates issue in providing appropriate training session to employees. Manager did not able to provide incentive to workers that are working optimally and results in reducing their motivation level.

Lack of accountability: It has been identified that major issue which company is facing is lack of accountability in organization. This create issue in identify individual responsible for carrying out particular task (Kumar, 2022). This unable company in determine skills and capabilities of employees and allot task accordingly so that scope of mistakes within firm reduces.

High employee’s turnover: ALDI is having high employee turnover rate which create issue for company in managing its cost and acquires new talent when required. Company need to incur cost on recruitments process and training and development session to new worker which increases cost of organization.

Key sources of Issue and opportunity:

There are various reasons because of which this issue has been occurred in ALDI. These issues are related to rules, ethics and regulation of organization or due to employees’s behavior or attitude. Company should focus on identifying all this sources that will be beneficial in determining appropriate course of action through which issues could be resolved. Various sources of issues are mentioned below:

Lengthy process of recruitment: Company is following a lengthy process for selecting an employ. It has been identified that company carry out minimum 4 online and offline interview before selecting an employees. It takes huge time in evaluating performance of candidate and company also provides late reply. Sometime during this period employees drop out current selection process or get job form other organization. It leads to generation of issue for company in acquiring talented and competent employees in firm.

Lack of communication and involved of employees: Management in company believe that employees should not be included in decision making process and they should not be allowed to provide their suggestions (Noor, Rahutami and Ahmad, 2020). They believe that it will result in lack of confidentiality and also results in delaying in decision making. This leads to reduction in satisfaction level of employees and eventually results in increasing employee’s turnover. There is no clear an authentic communication channel establish in company that leads to generating confusion among employees and impact overall working.

Inadequate compensation and incentives: It has been identified that firm compensation pattern has been given 3.5 rating out of 5 which is not so attractive (Compensation rating of ALDI, 2023). Company is least focused towards determining the changes in employees performance and not concentrated on reward strategy through which they can be motivated. This creates issue in retention of employees and improves performance of workers. ALDI has not adopted any standard method of performance management which unable company in evaluating employee’s effectiveness in completion of particular task.

Ineffective training and learning opportunities: Business entity is not focused towards providing effective training and development session to the employees. Company is providing training to new employees but they did not focus on providing additional training to exiting employees which will help in improving their skills (Rahma et al, 2021). It has been identified that company did not evaluated needs and requirement of employees before deciding on training sessions. These result in reducing effectiveness of training session and leads to decreasing employees’ satisfaction.

Bad work culture: It has been identified that only 55% of total employees are satisfied with the working culture of ALDI. People are interested in working in company which provides adequate work culture for employees. This creates issue in attracting and retention of employees in company which create issue in effective management of workers.

Recommendation

Evaluation all the issue which are impacting the working of company and various reasons behind such issue, it has been identified that there are various measures which company should include in their strategies. This measure will help in reducing the scope of issue and assists in effective management of issues. Some of the ways in which company could mitigate such issue are as follows:

• Encouraging employees for development: Company should focuses on motivating employees to identify their developmental needs and convey it to HR manager. These will unable manager in deciding on the skills and capability of particular employees and assist in deciding skills which they need to develop. It will support employ’s in enhancing their satisfaction level by providing them opportunity to develop and help in retention of employees.
• Using talent management software: This software aims at reducing burden of management and assist in carrying out core function by using such systems. HR of company could use this software for carrying out recruitment, selection, management of performance, training and competition activities (Schmid and Morschett, 2023). This will leads to completion of all tasks in less time and in effective manner.
• Review their compensation pattern: ALDI should focus on evaluating their compensation pattern and concentrated towards providing both financial and non-financial benefits to employers. This will assist in enhancing motivation level of employees that support them in improving their performance. It will eventually result in reducing turnover rate of employees by increasing their satisfaction level.
• Taking employees’ review: At the end of every quarter, company is required to lay more focus on taking review from employees regarding various rule of organization. Perception of employees regarding various strategies will be gained thorough this survey and company will easily identify satisfaction level of employees in company. HR should focus on taking review from employees which are leaving the entity as they will able to get better insight of the issues.
• Implementing performance measuring metrics: It has been depicted from above finding that company is not using any standard metric for measuring performance of employees. This creates issue for company in determining the most employees that are not working effectively (Szabó, Németh and Szigeti, 2023). Company should use 360 degree performance review system in company that assists in getter better knowledge regarding employees working. This will support company in forming strategies and deciding on training and development session by which employee’ skills could be enhanced.
• Improving work culture: For improving satisfaction and maintaining retention of employees in company, firm needs to lay more focus on improving its work culture. This could be achieved by providing equal opportunity to each employees and establishing an effective communication channel which help in reducing confusion in company. Adequate recognition program should be conducted in firm that assists in enhancing their motivation level and results in improving overall performance of employees. Focused should be paid toward gaining trust and confidence of employees by compiling organizational objective with personal goals.

Conclusion

It has been concluded from the report that talent management should be effectively carrying out in company that helps in improving overall position of company. ALDI is unable to implement effective strategies for managing employees. It has been identified that company is not able to gain efficient employees and incapable in finding growth potential of each employees. There is high employee’s turnover rate of company that leads to increasing overall cost of organization. Company is facing such issues because of lengthy process of recruitment, lack of adequate compensation policies and ineffective performance management in the firm. It has been determined that Installing talent management system, improving work culture, using 360 degree performance metrics etc are various measures by which talent management process could be improved.

References

Books and Journals

• Al Aina, R. and Atan, T., 2020. The impact of implementing talent management practices on sustainable organizational performance. Sustainability, 12(20), p.8372.
• Choraś, M., Springer, T., Kozik, R., López, L., Martínez-Fernández, S., Ram, P., Rodriguez, P. and Franch, X., 2020. Measuring and improving agile processes in a small-size software development company. IEEE access, 8, pp.78452-78466.
• Kumar, A., Waclawik, P., Singh, R., Ram, S. and Korbel, J., 2019. Performance of a coal pillar at deeper cover: Field and simulation studies. International journal of rock mechanics and mining sciences, 113, pp.322-332.
• Kumar, S., 2022. The impact of talent management practices on employee turnover and retention intentions. Global Business and Organizational Excellence, 41(2), pp.21-34.
• Noor, J., Rahutami, N.C.A. and Ahmad, Y., 2020. Using Digital Technologies by Human Resource Management During COVID-19: A Case Study of E-Office and E-Learning. Journal of Entrepreneurship and Business (JEB), 8(2), pp.106-114.
• Rahma, A.A., Harahap, T.F., Ilona, D. and Aldi, F., 2021. The Role of Ethnicity, Gender and Diversity of Director's Experience on Company Performance. UPI YPTK Journal of Business and Economics, 6(1), pp.25-31.
• Schmid, D. and Morschett, D., 2023. Retailers’ foreign market exits over time: A strategic management perspective. International Business Review, 32(5), p.102164.
• Szabó, D.R., Németh, T. and Szigeti, C., 2023. Green Thinking-Green Positions. Chemical Engineering Transactions, 107, pp.403-408.

Online

• Compensation rating of ALDI. 2023. Online Available through :< https://www.glassdoor.co.in/Reviews/ALDI-Reviews-E7337.htm#:~:text=According%20to%20anonymously%20submitted%20Glassdoor,salaries%20and%20benefits%20at%20ALDI.>
• Revenue of Aldi. 2023. Online Available through :< https://www.statista.com/statistics/386763/aldi-sales-percentage-change-great-britain-uk/>