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Human Resources Management-McDonalds Essay

Furthermore, It explains the human resource actively of McDonald’s assistant Ltd and ending with an appropriate conclusions and recommendations that can improve the HARM strategy, HRS activities and the role of the HRS function within McDonald’s restaurant Ltd in order to achieve increased organizational performance. Introduction According to Armstrong M, (2003) human resource management is a strategic and coherent approach to the management of an organization’s most valued assets: the people working there who individually and collectively contribute to the achievements of its objective with the great efficiency.

The aim of HARM is to help the organization to achieve success with the help of people. HARM strategy Is an approach for making decisions on the plans of the organization. These plans are concerned with the employee relationship and its recruitment. Training development, performance management, rewards and employee strategies. The basic activities followed by HARM are that of providing services to internal customers. These include central management team leader, line managers and employees.

The services covering all the aspects of HARM Like human resource planning, recruitment and selection, employee development, employee rewards, health and safety management, employee relations and welfare. McDonald’s Restaurant Ltd. McDonald is the no. L fast food chain in world.

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It ranks among the top 10 most widely recognized brands around the world. The McDonald’s brand name Includes the name of Ronald McDonald, the Clown and Golden Arches. It has a worldwide chain of around 30,000 fast-food restaurants that prepare, package and sell a menu of ready to eat foods.

McDonald’s restaurants offer a substantially uniform menu for breakfast and daytime differently. Ray Crock was the first person who opened the McDonald’s restaurant In 1955. On the day of opening McDonald’s made a sale of $366. 2. In 1965 McDonald’s became a opened in Canada. In 1979 the happy meal for kids, compete with toy was introduced. By November 2003, McDonald’s had decided to discontinue its development of non-McDonald brands outside the United States. For the fiscal year ended Decembers, the company generated the revenues of $17,140. 5 million.

Human resource Strategies of McDonald’s restaurant Ltd According to Henry and Pettier (1986) Strategic human resource management has four meanings: The best use of planning. An approach to the business and management of personnel system based on an employment policy and manpower strategy. Matching human resource management activities and policies to some explicit business strategy. Seeing the people of the organization as a strategic resource for the achievements of competitive advantage. “Specific pattern of decisions and actions that managers take to achieve superior organizational performance. (Hill and Jones, 2001) The aim of strategic human resource management is to provide strategic capability by ensuring that the organization has the skilled, committed and well-motivated employees that needs to achieve constant competitive market. Strategic human source management should maintain a proper balance between soft and hard elements. Walker (1992), states that strategic human resource management as, the means of aligning the management of human resources with the strategic content of the business.

The main approaches to the development of human resource strategies as: 1) Best Practice Model 2) Contingency (Best fit) Models includes: 3 different schools of thought Strategic choices in terms of business life cycle of firm Strategy/structure configurations (“Lecture notes 2”) Best practice model The idea that a particular bundle of HRS practices have the potential to contribute to improved attitudes and behaviors, lower levels of absenteeism and labor turnover, and higher levels of productivity, quality and customer service, ultimately generation higher organizational performance and profitability. “Marching ton & Wilkinson, 2002: 177”) Comparison of McDonald’s HRS practices with the components of Best Practice HARM model: (Refer appendices 1) Employment security: To retain the best staff in the organization McDonald’s is paying high rate of pay to the staff plus employee meal discount card to every staff member and everyday free break-meal to every staff member. Selective hiring: more than 40% of staff in McDonald’s is promoted internally instead of taking directly from outside.

As I used to work in the kitchen at McDonald’s but now I am improving bit by bit. Proper training and classes are providing to the staff member for a particular designation. Self managed teams: every crewmen in McDonald’s works with the team spirit. A member of head of department takes 3 rounds a month to check the position of a particular store. This will in turn motivates the employee to work in a more efficient way and encourages the teamwork. Teamwork provides them with a chance to learn ewe skills and develop a sense of respect for each other.

High compensation contingent on organization: Performance reward system in McDonald’s is totally appraisal based not HTH performance based. In McDonald’s doing night shifts only can reward the creamers. Training to provide a skilled and motivated workforce: McDonald’s trains their creamers extensively on all food safety and food handling process. Trainees work shoulder to shoulder with crew trainers. They give proper knowledge from front counter to the grill area.

Ray Crock, the founder of McDonald’s believed that ” if you take care of your people the business take care of itself” Sharing information: From my personal experience in McDonald’s, I observed that the lowest level of employee like working as a crew member in the dinning area or the Hence the basis of above theory we can say that the McDonald’s is not following the best practice model completely. Best-Fit (Contingency) Models: There are three different schools of thought under best-fit model Business life cycle model: Generally there are 4 different stages of organizational development I. . Start-up, growth, maturity, decline. This model shows the critical human resource activities at different organizational or business unit stage. It is related to the human resource function like recruitment, selection and staffing, compensation and benefits, employee training and development and employer relation. During the Christmas time McDonald’s employee a lot and lot of number of employees to increase their sale. McDonald’s is trying to control the labor cost by employing part time labor like me.

For employees training and Development Company introduced lot of training programs. Proper classes are given to every crewmen extensively on all food safety and food handling process.. (Refer appendices 2) Strategy/structure configuration According to this model McDonald’s is focusing on quality, service, and cleanliness. McDonald’s thinks by providing good services, quality, and cleanliness, they can achieve 100% customer satisfaction.. (Refer appendices 3. Resources: Employee selection in McDonald’s is done with great care and in a systematic manner. The company arrange induction program so that every one can familiar with in the organization and its working style. Learning development: Special programs are designed to give the best possible start to the employees. The managers in the McDonald’s gain real-life work experience and re also able to apply that knowledge in corporate sector. Employee relation: In McDonald’s every employee tries to maintain better relationship with each other.

Some times there is an informal communication between the staff, which increases the motivation of the employees to work efficiently in the company. Reward system: Attractive salary packages, free life insurance to employee after 3 years, employee discount card and free meal to every employee during their shifts are offered to retain our services and us. Between the employees and the management and results are driven in forms of profit. McDonald’s trains their creamers extensively on all food safety and food handling process.

Trainees work shoulder to shoulder with crew trainers Conclusion After discussing the above models it shall be concluded that McDonald’s is still growing. The company keeps discovering new markets, product and services. The company human resource strategies are really in favor of its employees. Company provides a lot of benefits to its employees. The company focus on the quality, services and cleanliness. Human resource management is seen as an integral part of the overall organizational structure.

Recruitment and selection policy of the company is fine. McDonald’s provides a lot of benefits to the employee which help to motivate the employee in working. At the end, on behalf of my personal experience I would like to conclude that McDonald’s has implemented its human resource strategies and integrated it with corporate strategy in an appropriate manner, which is reflected in their success. Answer 2 HUMAN RESOURCE ACTIVITIES The basic activities followed by Human resource management are that of providing services to internal customers.

These include central management team leader, line angers and employees. The services covering all the aspects of Human resource management like human resource planning, recruitment and selection, employee development, employee rewards, health and safety management, employee relations. I am summarizing McDonald’s human resource activities in the following three areas: Performance management Motivation and rewards Human resource development 1 .

Performance management Performance management can be defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. (“Armstrong and Barron, 1998”) organization, individuals and teams by understanding and managing the performance of staff with in an agreed framework of planned goal. Performance management by McDonald’s McDonald’s thinks that the performance feed back is an ongoing process.

The sooner the problem is communicated to the employee the sooner it can be addressed and corrected. If the supervisor in McDonald’s believes and employee isn’t meeting expectations for his or her Job then it’s the supervisor responsibility to give the feed jack until performance is up to standard (“Data provided by Mr.. John Manley, Store manager, Cross Chipping, Coventry”) The methods for checking the performance of McDonald’s employees are as follows: Performance review (PR) Observation check list (COOL) Performance review: in McDonald’s every after 6-month there is an interim performance review of every employee.

After Judging the performance the supervisor can rise the pay of the employee and can give the promotion to the employee as he can promote crewmen to a Training scrod. Observation checklist: COOL is another method of Judging the performance of the employees. Observation checklist can be taken at any time depending upon the crewmen and a manager. Due to this COOL managers can Judge the employee performance and give remarks for his performance. This helps the staff to get the promotion. In McDonald’s consistent underperformed or repeated under performance is tolerated.

If an employee hasn’t met expectation in terms of performance results within the last 18-months, he or she may be terminated or put “on notice” and give a 30 day action plan to improve his or her performance. According to McDonald’s Performance management is a difficult task. Firstly, they think there might be chances of misjudgment. Second, it is very difficult to set the objectives of each Job so that the performance of each employee is Judged. Third, it is time consuming process, and, lastly, there might be a conflict between development and reward outcomes.

But in spite of these difficulties Performance management also help McDonald’s first, to increase the motivation of employee. Second, it increases the competitive spirit between the employees. Thirdly, it helps in continuous feed back, and, lastly, it helps McDonald’s to select people for development. What is motivation? A motivate is a reason for doing something. There are two types of motivation as originally identified by Herbert, Amasser & Sanderson (1957). Intrinsic motivation: The self-generated factors that influences employee to move in a particular direction.

These factors include the feelings that the work is important. Extrinsic motivation: What should be done to motivate employee. This includes rewards, such as pay rise, praise, promotion and punishment. Hence reward is the main part of motivation. The various rewards provided by the McDonald’s to motivate its employees are as follows: GAP buster Bonus: In GAP buster Bonus scheme, a mystery shopper take three rounds in a month, using the overall average of all three monthly visits, top 20 winning restaurants in each region will be identified and announced as the winner.

All hourly paid employees like me in the winning restaurant will receive a bonus of 50 p for every hour worked during the pay period for which the bonus is paid. Free life insurance after 3 years: every employee working in McDonald’s get the 3 years free life insurance. This reward motivates the employee to work with their full efficiency. Employee discount card: Each and every employee in McDonald’s gets a discount card. On behalf of that card any employee can get the meal at a half price. Free break-meal to employee: Every day to every employee of McDonald’s get a free meal on his break.

This would really motivate the employee to work with their full Free car to store manager: A free car is provided by the McDonald’s to the every store manager. Store manager’s doesn’t need to pay the car insurance even. The car schemes provided by the McDonald’s is really encourages the store managers to work hard with their full efficiency. Customer Satisfaction Review (CARS): It is the annual observation by the top-level management of McDonald’s. Once a year, on the Founder’s day all office employees leave their desk, put on a uniform and work in a restaurant for a day so that they can remember in what business they are. “Gilmore F, 1999”) 3. Human resource development Human resource development is concerned with the development of learning, team and organizational performance. The key elements of human resource development are: Education: In McDonald’s the store manager of every store takes regular classes to provide general information to its employees. Book like quality reference guide (GREG) provided to every employee to increase the knowledge of staff members. After going through this “GREG” book anyone can apply for the exam of training scrod.

Learning: The more and more employee work, more and more he get the experience. After having experience in McDonald’s staff members can learn a lot of things. The working speed of every staff member is increased bit by bit as more as they will get involved in work. Development: After getting the practical and theoretical knowledge, there is a growth of person’s ability and potential. In McDonald’s crewmen can apply for training scrod, after having the theoretical and practical knowledge. Training: McDonald’s provides training to its employees and the employees of its independent franchisees.

The management-training centre of McDonald’s is Hamburger University, with a faculty of 30 resident professors. The extensive training provided at this training centre includes basics of their operations and business. Almost 65,000 managers in McDonald’s restaurants have graduated from Hamburger University till date. McDonald’s also manages ten international training centers, including Hamburger Universities in England, Japan, Germany and Australia. McDonald’s trains their creamers extensively on all food safety and food handling process. Trainees work shoulder to shoulder with crew trainers.

The general conclusion drawn from the above analysis is that McDonald’s is using the best of its human resources and making optimum use of it. In McDonald’s managers support their team members rather than dictate to them. The manager Judges the performance of creamers and helps them in their promotion. Fast food is becoming an increasingly competitive sector. McDonald’s should differentiate itself with new formats and new menu items. Rewards provided by McDonald’s to its employee help it to motivate its employee. But if McDonald’s gives time-to-time promotion to every employee, it would be very beneficiary to motivate its employee.

McDonald’s is increasing its revenue by giving proper training to its employee. Training improves the efficiency of the employee and helps McDonald’s to increase its profits. As earlier, I said McDonald is the no. L fast food chain in world.

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But still there are some chances of improvement in McDonald’s restaurant Ltd. The recommendations to improve HARM strategy, HRS activities, and the role of the HRS function within the McDonald’s in order to achieve increased organizational performance are as follows: McDonald’s should focus on adding more customers to existing restaurants, rather than Just adding more restaurants.

This would really help McDonald’s to increase its revenue. One of the main weaknesses of McDonald’s is lack of product innovation. McDonald’s last break-through product launch was chicken Nugget in 1983. So McDonald’s should add some new items to its menus which customer want. As a result of working in McDonald’s the employees are not multi skilled. Due to that the labor cost of McDonald’s is very high. McDonald’s should train his or her employee in a multi skilled way, which help every employee to work in the kitchen and on the front counter as well. McDonald’s must be flexible with its employee.

When ever the employee ask for off or changing the shift to study, the managers should understand them and solve their problem. This would really help to motivate the employees. There must be a commitment between a manager and an employee. The most of the crew members in our store are not satisfied with the pay and reward system. McDonald’s should increase the pay of its employee and give some time-to- time rewards to every employee. Praise is also a good motivator to the employees. McDonald’s can enhance the taste, adding variety and extending value menus to its food.

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