Aldi Hr
Introduction
ALDI is a global food retailer. Since opening its first store in 1913, Aldi has established itself as a reputable retailer operating in international markets including Germany, Australia and the U.S. Aldi has over 7,000 stores worldwide. What distinguishes Aldi from its competitors is its competitive pricing strategy without reducing the quality of its products. In fact, in some cases Aldi’s products are 30% cheaper than those offered by its competitors. Aldi can do this because the business operates so efficiently. (The Times Case Studies, 2011)
ALDI and HR
Aldi has a very flat organisational structure. In the UK it is split into 5 regions (there are 62 internationally); each region operates individually, only sharing the purchasing function. Each region has 5 departments, and there are only 3 levels between the Store Assistants and the Managing Director of the Region.
Organisational Structure
Noticeably, there is no IT, Marketing or HR function in the structure. IT and Marketing are both outsourced to third parties. IT are called on as and when needed by whichever department needs them at the time, whether it be till maintenance, or maintaining the logistics software package. Marketing is outsourced to a company in Atherstone, and their link in the organisation is the Trading function.
HR is stripped back within ALDI, and is headed by 2 HR Managers in the Store Operations Function. All area managers within ALDI are trained in HR, and deal with all personnel issues, from Recruitment, to performance management and Training and Development. The HR managers in Head Office purely focus on making sure the Area Managers are up to date with new legislation and policies. ALDI adopt a grandfather technique, where, store managers have little to do with HR. It is their job to focus on the store, and deal with staff rotas and minor issues. This way, store employees report to their line manager for operational issues, and the Area Manager for HR issues.
ALDI is a global food retailer. Since opening its first store in 1913, Aldi has established itself as a reputable retailer operating in international markets including Germany, Australia and the U.S. Aldi has over 7,000 stores worldwide. What distinguishes Aldi from its competitors is its competitive pricing strategy without reducing the quality of its products. In fact, in some cases Aldi’s products are 30% cheaper than those offered by its competitors. Aldi can do this because the business operates so efficiently. (The Times Case Studies, 2011)
ALDI and HR
Aldi has a very flat organisational structure. In the UK it is split into 5 regions (there are 62 internationally); each region operates individually, only sharing the purchasing function. Each region has 5 departments, and there are only 3 levels between the Store Assistants and the Managing Director of the Region.
Organisational Structure
Noticeably, there is no IT, Marketing or HR function in the structure. IT and Marketing are both outsourced to third parties. IT are called on as and when needed by whichever department needs them at the time, whether it be till maintenance, or maintaining the logistics software package. Marketing is outsourced to a company in Atherstone, and their link in the organisation is the Trading function.
HR is stripped back within ALDI, and is headed by 2 HR Managers in the Store Operations Function. All area managers within ALDI are trained in HR, and deal with all personnel issues, from Recruitment, to performance management and Training and Development. The HR managers in Head Office purely focus on making sure the Area Managers are up to date with new legislation and policies. ALDI adopt a grandfather technique, where, store managers have little to do with HR. It is their job to focus on the store, and deal with staff rotas and minor issues. This way, store employees report to their line manager for operational issues, and the Area Manager for HR issues.
Cited: ALDI, 2012. CSR - Our People. [Online] Available at: http://www.aldi.co.uk/uk/html/company/15435_25201.htm Brewster, C. & Larson, H., 2000. Human Resource Management in Europe. London: Blackwells. CIPD, 2012. Role of Line Managers In HR. [Online] Available at: http://www.cipd.co.uk/hr-resources/factsheets/role-line-managers-hr.aspx Cunningham, I. & Hyman, J., 1995. Transforming the HRM vision into Reality: The Role of Line Managers. Employee Relations, 17(8), pp. 5-20. Hameed, T., 2011. Organisation Strategy and Human Reosurce. [Online] Available at: http://www.hrutilities.com/2011/09/organization-strategy-and-human-resource/ Peterson, E., 2006. Employee Relations. 2nd ed. Chicago: Hardwell Press. The Times Case Studies, 2011. Aldi - Competitive Advantage through Efficiency. [Online] Available at: http://businesscasestudies.co.uk/aldi/competitive-advantage-through-efficiency/introduction.html#ixzz2CEnCsFmq