The report focuses on the significance of human resource management in Aldi Corporation. Aldi is the supermarket company which supplies its products in all over the world. It explains the methods and strategies which are used by the company in order to identify the capabilities gaps of existing staff for future store management positions in the market. The firm uses effective and unique methods to attain the mission and vision of the firm. Further, the report shows a contrast between mentoring and coaching. It describes that how mentoring and coaching programs help to enhance and increase the productivity and efficiency of the existing staff. In addition, some recommendations have been given to human resource management in order to fill the vacancy of future store management positions. Aldi is the famous and well known brand of two leading global discount supermarket chains with over 10,000 stores in 18 countries. In today’s era, the firm is maximizing its profit and revenue by providing retail products to the customers. Further, the organization uses unique and dynamic advertisement and promotional strategies to promote and enhance the grocery products in the international market.
Methods of identifying the capability gaps of existing staff
Employee’s capabilities and potential play a significant role to fulfill the goals and objectives of the firm. It also helps to attain the long-term mission and vision of the firm. It also helps to fill the gap between skilled and unskilled employees. Aldi is a retail market who provides various products and services to the customers (Harrison, 2012). Further, human resource department is the backbone of the Aldi in order to determine the growth and success of the company. Further, the firm is trying to develop and enhance the skills and capabilities of the employees. A skill gap is defined as a significant gap between the current capabilities and organization skills of the workforce (Boxall and Purcell, 2011). In addition, skills testing provide an effective and good benchmark in order to attain the long-term goals and targets of the organization. Along with this, the organization also provides training and development coaching to the workers in order to improve and enhance their skills and capabilities in the organization (Elnaga and Imran, 2013). There are various methods to identify the capability gaps of existing staff with a view to developing them for future store management positions which have been discussed below.
Self-evaluation: This method is used by Aldi in order to identify the capability gaps of existing staff in the organization. It is one of the significant methods to identify the skills and capabilities of the current workers. Under this method, the top management and managers should evaluate and identify the performance and efficiency of the workers. The employees take responsibilities for their own learning and professional development (Berman et al, 2012). Self-evaluation is a strong and effective motivator to identify the skills and capabilities of existing workers within the organization. There are several opportunities include in self-evaluation method to measure and identify the capabilities of the workers which have been discussed below.
- Incorporating a task in individual learning plans where team members are mandatory to think about a learning development, training, and development coaching which may help to enhance and improve the skills, capabilities, and knowledge.
- Further, the managers and top management should discuss the individual as well as team needs and requirements in the meetings in order to identify the capabilities and skills gap of existing employees within the organization.
- In addition, supervisors need to discuss the outcomes and results with the employees in order to develop and build skills and potential among the existing staff. Now it is seen that self-evaluation method plays an integral role in order to identify and measure the capability gaps of existing staff for fulfilling the future store management positions (Chang et al, 2012).
Workplace skills assessment: It is a significant method to assist and direct an individual for identifying the skills and knowledge gaps of the existing staff. Aldi uses workplace skills assessment method to set the standards of capabilities and skills of the current employees. The managers and supervisors observe and evaluate the performance and efficiency of the workers. It will help to maximize and increase the revenue and profit of the company. It also helps to gain the current abilities and future potential of the existing staff in order to fill the future store management positions in Aldi. It is one of the important methods to assess and evaluate the skills and potential of the workers at the workplace (Lussier and Hendon, 2014).
Create individual development plans: This method is also used by Aldi to improve and enhance the knowledge, skills and capabilities of existing staff within the organization. Human resource management can develop and build individual development plans in order to identify the capability gaps of existing staff for future store management positions. Under this method, senior managers sit with employees and discuss the interest and career goals of the individual. This will also help to identify and measure the development activities of the workers. The development plan will provide a roadmap to the employees for enhancing and improving their skills and performance within the organization (Armstrong and Taylor, 2014). This development plan will also increase the revenue and profit of the firm. Apart from this, performance metrics is also used by Aldi to prompt and encourage the workers for performing task with more effectively and efficiently. In addition, reviews and feedback should be collected by the managers and top management in order to improve and develop the skills and capabilities of existing staff for future store management positions within the organization. Further, career planning/ development sessions can be conducted by the team members in order to discuss learning requirements and needs of the workers (Werner and DeSimone, 2011). All these methods are used by Aldi in order to determine the capability gaps of current staff for future store management positions. Further, the company can use various theories to identify the skills and capability gaps of current staff for future store management positions within the organization. The theories have been discussed below.
Motivation theory: Various motivational theories can be used by the firm to improve and develop the skills and knowledge of the workers. The motivational theories include Maslow’s need hierarchy theory, Herzberg’s motivation-hygiene theory, McClelland’s need theory, and McGregor’s participation theory. These theories will provide motivation to the workers for improving their productivity and efficiency within the organization. These theories will also provide support in order to identify the skills and capability gaps of current staff for future store management positions in Aldi (Miner, 2015).
Transformational theory: Transformational leadership theory can be used by Aldi in order to measure the capability gaps of existing staff within the organization. The transformational leadership may be found at all level of management. The leaders inspire and motivate the workers to do work effectively and efficiently. In this way, the leaders are able to inspire and motivate the employees to go beyond their task requirements (Avolio and Yammarino, 2013). The model of transformational leadership has been discussed below.
Inspirational motivation: It is the important element of the inspirational motivation theory to attain the mission and vision of the firm to improve the capabilities of the workers. The employees can do work with enthusiastically by using motivation and teamwork (Dörnyei, Henry, and MacIntyre, 2014).
Intellectual stimulation: Such leaders motivate and encourage their subordinates to be creative and innovative. They take new ideas and thoughts of the workers in order to build and identify the capability gaps of existing staff within the organization.
Idealized influence: The leaders act as a role model for the organization. The transformational leaders rely on the subordinates and they build trust and confidence among the employees for improving the performance and efficiency. They maintain ethical standards and policies within the organization.
Individualized consideration: Leaders act as a mentor to their subordinates in order to develop and improve their skills and talents for future store management positions. The leaders provide authorities and rights to the workers to make effective decisions. In this way, various theories can be used by Aldi to identify and measure the capability gaps of existing staff for future store management positions. It will also help to attain the long-term goals and objectives of the company.
Compare and contrast coaching and mentoring
Coaching and mentoring: The coaching and mentoring both are used for the same skills, and capabilities but coaching is based on the short task while mentoring is based on the long-term task. Mentoring and coaching play an integral role in order to gain the long-term mission and vision of the company (Garvey, Garvey, Stokes, and Megginson, 2017). Human resource management uses mentoring and coaching programs in order to determine the success and growth of the firm (Klasen and Clutterbuck, 2012). A mentor and coach help to maintain a dynamic and good culture in the organization. The coach and mentor provide assistance and direction to the employees for improving and increasing their productivity and efficiency. They should resolve the complaints and queries of the workers. The coaching and mentoring programs determine the growth and progress of the employees (Connor and Pokora, 2012). These programs also provide satisfaction and morale to the subordinates in order to increase their performance and efficiency. Further, these programs also help to gain competitive advantages in the global market. The mentoring and coaching programs also increase and enhance the knowledge and experience of the workers (David, 2016). It also reduces the high employee turnover and barriers from the organization. The differences between the mentoring and coaching have been discussed below.
The coaching is task oriented. The coach focuses on the key issues and manages efficiency and effectiveness of the workers. They develop and build skills among the workers in order to run the business activities and operations successfully.
Mentoring is relationship oriented. It provides a safe working environment where a mentor can share ideas, thoughts, and knowledge to the employees. Competencies and learning goals can be used by the mentor in order to build and develop an effective and unique relationship. The mentor also focuses on the work, confidence, and perception of the workers. In this way, mentoring plays a vital role in order to build and enhance the effective relationship with customers.
A coach can successful be involved with a coachee for a short period of time. In this way, coaching programs are conducted for short time period.
Mentoring requires long time period. It also helps to build a climate of trust that creates a healthy environment in which the mentoree can share the real issues and problems that impact her on his progress and growth.
Coaching is related to the performance and efficiency. The main aim of the coaching is to improve and enhance the performance and productivity of the employees at the workplace. Coach is not required for the long time period. It is needed for short time period.
Mentoring is considered the development driven. The main objective of the mentoring is to develop and build individual for the current employment. It also reduces the conflict and disputes between the mentor and employee’s manager.
Design does not essential in coaching. Coaching can be conducted on any given task and topic. A long lead time does not require to initiate the coaching program within the organization.
Design phase requires mentoring to set the strategic purpose and rationale for mentoring. The mentor focuses on the effective relationship and mentoring models to guide the employees for accomplishing the mission and vision of the firm.
The coachee immediate manager is considered a critical and important partner in coaching. The coach uses knowledge and experience to direct and control the coaching process within the organization.
The immediate and direct manager is indirectly involved in mentoring. The mentor provides suggestions to workers in order to improve and increase the efficiency and productivity of the organization. In this way, mentoring plays an integral role in order to develop and imporve the performance and effectiveness of the workers within the organization.
Mentoring and coaching help to develop and build the capabilities and skills of the existing staff in Aldi for future store management positions (Law, 2013). Further, if the company introduces a new system and program in the market then mentoring and coaching programs can be used by Aldi. In addition, the firm uses mentoring and coaching programs to maintain a balance between personal and professional life. Aldi can set the mentoring and coaching program which includes the following phases.
Further, leadership and motivation theories are used by Aldi to implement mentoring and coaching programs and sessions within the organization (Northouse, 2015). People learn many things from mentoring and coaching programs in the firm. The success and growth of Aldi depend on the mentoring and coaching programs. Aldi conducts mentoring and coaching programs in every week in order develop and identify the capabilities and skills for future store management positions (Alred, 2014). The company attains the desired goals and objectives by using these programs. These programs also help to maintain a favorable and dynamic culture within the organization. In addition, good and effective working relationship are built and developed by the mentor and coach in order to provide job satisfaction and job security to the employees. Along with this, utilization of resources can be done by using mentoring and coaching programs. These programs also help to maintain an effective communication among the workers (Allen, Finkelstein and Poteet, 2011). These programs also increase self-esteem and self-confidence of the existing staff in Aldi to fill the future vacancy of store management within the organization. Mentor and coach reduce the frustration and stress of the workers. As a result, employees feel happy and they start to do work with more effectively and efficiently (Garvey, 2011). Employee retention is possible by using mentoring and coaching programs in the organization. The mentoring and coaching develop and improve the performance and experience of the existing Aldi staff for future management positions.
Peer coaching model: Aldi uses peer coaching model in order to increase and enhance the efficiency of the workers. Peer coaching is an interactive process between two or more teaching professionals which is used to reduce the isolation among the employees and to support the new candidates for doing work effectively. It is also called the collegial coaching model. This model is not based on the judging and evaluating performance and efficiency. This model helps to understand and evaluate the best practices within the organization. This model also provides a mechanism to increase and improve the performance, skills, and experience of the workers (Carey, Philippon and Cummings, 2011).
GROW model stands for goal, current reality, options and will or way forward. This model was developed in 1980. Under this model, first Aldi needs to set the SMART goals to maximize the revenue and profit. After setting the goals, the company evaluates and examines the current reality of the workers. After evaluating the current reality, Aldi explores and flourish the options to attain the desired outcomes and results. By examining and evaluating the current acutality and exploring the options, the team members will have to provide the ideas and thoughts to accomplish the objectives and goals (Dia and Speershneider, 2012). Peer coaching and GROW model play an integral role in order to identify the capabilities and skills of the existing staff for future store management positions.
It is recommended that Aldi should develop a sustainable human resource management to run the trading activities and operations powerfully and effectively. Human resource management is the significant part of the company. The company can expand and explore its business by maintaining effective and sustainable human resource management. Proper recruitment and selection methods must be used by the firm in order to recruit and retain capable and potential employees in the organization. Further, the company should focus on the methods through which the firm identify and evaluate the capability gaps of existing staff. In addition, effective and dynamic policies and rules must be made by the company in order to beat the competitors in the world.
Apart from this, Aldi must focus on the mentoring and coaching programs in order to enhance and increase the productivity and efficiency of the existing staff. Further, the firm should develop and build job descriptions and job specifications to fill the future store management positions. In addition, HRM should develop an interviewing/hiring process to select the skilled and qualified employees. Further, the organization must develop and revise the performance evaluation process to analyze and measure the productivity and efficiency of the workers. Along with this, HRM should develop and build performance management system to review the performance and effectiveness of the existing staff. In this way, the company can appoint store manager for the future time period. The company should track the records to check and measure the background of the workers. The top management and leaders should promote and motivate the existing staff for performing task and duties effectively and efficiently. They should maintain a mutual and reciprocal relationship with customers in order to resolve their conflicts and disputes. The mentoring and coaching sessions and programs must be conducted by the company to develop the capabilities and skills of the existing staff for future store management positions.
On the above aforesaid information, it has been evaluated that Aldi is one of the biggest retail industry which provides various products and services to the customers in the market. The company uses various methods to identify and develop skills and potentials of the existing staff for future store management positions. Along with this, various theories and policies are also used by the company in order to determine the success and growth in the international market. Along with this, the difference between mentoring and coaching programs has been shown in the report. Mentoring and coaching programs and sessions are conducted by Aldi in order improve and enhance the skills, knowledge, and experience of the workers. Further, various policies, rules, and strategies have been made the firm in order to run the trading activities and operations successfully. In this way, the company analyses and identifies the policies and plans of the competitors in the international market.
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