Human Resource Management of McDonalds

Introduction

McDonald is a multinational company works basically with fast food as a retailer. They run their business almost all part of the world basically in Europe and Asia. All of the larger organizations like Walmart, McDonald follows some specific strategy to manage their human resources in their organization. These strategies include models, principles and so on. One of the popular model applied by the organization is Guests model. Organizations also use some other model to control their HR and IR practices like Storey’s model to identify the types of flexibility, use of flexible practices and so on. Organizations like McDonald follows some special approaches to make their employee more satisfied in their workplace. Well known of these are equal opportunity and managing diversity. The company also tries to reduce discriminatory issues over their organizations because they are multinational company and they have employee from various country, region and color. So organizations are follow this to maximize their productivity.

Task 1

1.1    Explain Guest’s model of HRM

There are six basic dimensions of Guest’s models of HR and companies like McDonald follows these dimension to manage their HR function. This model is established and developed by David Guest. Six dimensions of Guest’s model are as follows:

From these six dimensions one is financial outcomes which refer to profit gathered by the organization by a project which largely depended on performance of the employee, innovation, improved quality, negative turn over. McDonald always tries to get maximum financial outcome from their system. The second outcome of the model is behavioral which includes motivation, cooperation, and better correlation within organization and their employee which make McDonald more productive. Then McDonald needs to apply perfect use of HR practices through the hire of right people to the right position as like McDonald prefer their recruiting notice by finding out what post is empty or less productive. McDonald also follows soft and hard approaches to achieve their goal more easily they run their business more than 119 countries so it is difficult to maintain all of them at a time.

1.2    Compare the differences between Storey’s definitions of HRM, personnel and IR practices

There are several models of HRM, personnel and IR practices and among them companies like McDonald mostly followed the model of Storey which is established and developed by Storey in 1992. Most of the companies called this theory a model of the shift to the human resource management.

Differences between Storey’s definition of HRM, personnel and IR practices are as follows:

Subject of comparison	Personnel and IR	HRM
Management Task	Managers complete the task through monitoring	Complete through nurturing the employee
Decision making process	The process of decision making is slow	The process of decision making comparatively fast
Contract	It has written contract	It has no written contract
Managerial action	Managers maintain a procedure to run the business.	Managers follow the procedure at the time of business needed.
Behavioral action	Organization follows Values, customs and practices	Organization follows Values or mission
Role	Management follows transactional role	Management follows transformation role
Relationship status	Dependent on labor management	Basis on the customer management

These are the basic differences between Storye’s HRM, personnel and IR practices. McDonald follows IR practice to establish greater relation with their customer to make their decision more effective.

1.3    The implications for line managers and employees of developing a strategic approach to HRM

On the basis of purpose there are many suggestion for line managers and employees to complete their tasks. There are also many advice for managers to how they can use this approach successfully. There are different needs of an organization and they meet this on the form of their ability and dependent on superior performance. Delery and Doty scholar of HRM and they identified three perspectives of HRM in 1996 which are given below:

  

Universal perspective

In an organization management implies several practices of HRM. They follows popular one as well as no popular. They follows universal one and also use less important one. McDonald should follow universal one to reduce complexity in the future.

Contingency Perspective

The use of different model is only for the needs of the organization so McDonald should follow only this kind of models which are related with other aspects of the company.

Configurationally perspective

It is cover over all operations an organization does. It also called holistic model of HR. McDonald should select a model which can capture all of their operation within one frame. It is used if the organization wants to run its all activities in a frame.

Task 2

2.1 Review and explanation a model of flexibility

The model of flexibility refers to employee and employer will do a work whenever they want and whereas they want. It means an employee is able to do his job any time of the day as morning shift or evening shift and anywhere that is if they wants to do the job at their home the company will allow to do so if they want to done their job even in moving the organization will not interfere in this.

Capacity of producing product is very much essential element for any organization. It indicates that how smoothly an organization run their business. McDonald is capable to maintain their all of production activities to run their business. As like all other company McDonald also strictly maintain their internal information secure from third party to keep their information more effective. McDonald sometime trying to sale a product to the customer at a discounted rate in order to make the product available to their customer.

2.2 Types of flexibility

There are several types of flexibility a company use for their strategy. These flexibility may be functional, financial, numerical and locational. McDonald use flexibility strategy to combine their liability and resource at a frame. Several types of flexibility given below:

Functional flexibility

It refers and indicates that an employee will do his job as smooth as they can. McDonald uses this policy to get extra benefit from their employee. They seek from their employee that they will done their job as quickest as they can.

Financial flexibility

It is the ability of a company to an unexpected accident. McDonald has a fund for this. There are several accident can be occur in an organization so organization make a fund to handle this type of occurrence.

Numerical flexibility

A company measures their employee performance in several way. If they do it comparing number of employee and their work then it will numerical flexibility. McDonald does this.

Location flexibility

It permits an employee to do his job anywhere or any place based on the office or outlet of the company. McDonalds employee can do their job anywhere of America because they have several office in America.

2.3 Assess the use of flexible working practices from both the employee and the employer perspective

Flexible working practices not only used for employee or employer but this strategy is used for both side. It means an employee can share his job with another can done extra job in a week to get extra vacation in another, can done their job at anywhere like home and even in moving. From employer side McDonald follows:

§     Both national and global competitiveness strategy.

§    Use of new technology.

§    Change in labor demand and supply

§    Handling government rules and regulation.

§    Get an overall cost leadership.

§    Elimination of labor absence.

§    Elimination of production time.

From employee perspective McDonald follows:

§    Ability to work in the outside by the employee

     Satisfy their employee by motivating them perfectly

§   Try to refresh the employee to reduce their tiredness.

§   Try to apply financial oriented motivation.

McDonald faces several factors to maintaining these strategy. If employees do their job in home they pay less attention. When they do a job outside of the office it is found there are several errors in their task.

2.4 Discuss the impact that changes in the labor market have had on flexible working practices

There are several reasons behind the changing of labor market. These changes are taking place through affecting by several factors. These factors are illustrated below:

                                 

Population

Increasing population all over the world is one of the greatest fact for changing labor market. When population increase the price of commodities also increase that’s why they seek for more salary. This situation creates change in labor market.

Education

Education makes a man concern about his rights so that the labors seek extra benefit from the organization such as extra vacation, extra salary on overtime, medical care and so on. McDonald makes their employee benefited all this aspects.

Increasing expenditure

The price of daily commodities have been increasing day by day that’s why employees seek extra salary from the organization in this situation McDonald make their employee satisfy by motivating them financially.

Society

There have a great impact of society on the organization all over the world. An employee primarily gets aware of their needs and wants from their society. So McDonald should concern about what society culture they want to serve.

Task 3

3.1 Explain the forms of discrimination that can take place in the workplace

Discrimination is one of the greatest problem within an organization. It happens because of people discriminate among them on the basis of race, region, religion, color, sex, national origin and so on. This discrimination can be divided into basic four types such as:

Direct discrimination

It refers to when one person treated less favorably by the organization on the basis of his gender, color, national origin and so on. McDonald should strictly forbade this action on their organization to get better output from their employee.

Indirect discrimination

It seems to be there have no direct discrimination in the organization but there remain some indirect discrimination such as the person who has societal status will treat better. McDonald should concentrate on this.

Abuse/Harassment

There are several workers in an organization such as lesbian, older, ethnic minority and if the organization looks them less than others then this discrimination occurs.

Racist incident

Some of the employees of McDonald may be get victim by the other employee and in this situation if he doesn’t take any initiative then other person will also do so.

3.2 Discuss the practical implications of equal opportunities legislation for an organization

Organization and some of the labor association with scholars established various law to protect employee rights and regulation. From these some of the popular laws are given below:

Ø  Sex and discrimination act 1975: developed basically for preventing discrimination happens for sex and gender.

Ø  Race relations act 1976: Developed for reduce discrimination raise for race, color and nationality.

Ø  Disability discrimination act 1995: established to protect the rights of disable people.

Ø  Equal pay act 1970: established for paying equal right to both male and female, young and old.

Ø  Employment equality act: established for paying equal attention to all employee.

Ø  Human rights act 1998: established to prohibit forced labor and slavery.

Ø  Employment equality regulation 2003: established for the same culture employee

McDonald has to follow these roles and regulations to make their working environment more beneficial and get their expected output. They should also concentrate on providing their employee all of their rights. Also they should prevent discrimination to make their work place healthier.

3.3 Compare the approaches to managing equal opportunities and managing diversity

Equals opportunity indicates provide of an organizations facilities equally to all their employee such as black and white, younger and older, male and female and employee of all religion and region. Equal opportunity facilitate the same facility which a man can get will also get by female. McDonald establishes protection against discrimination in their organization to facilitate all of the employee equally. It is not only necessary to a company’s discipline but also needed to achieve a company’s desired outcome. McDonald developed their EO policy to develop their employee’s mental satisfaction which can ensure them larger amount of profit.

On the other hand managing diversity is managing continuous workplace change. It is a way to adjust a company’s policy to its continuous change. McDonald should adjust their salary to match with the continuous labor change environment. They should meet with their employee needs to satisfy them or when it is not possible then try to satisfy them by discussion. They should establish several flexible work practice to make their employee more productive and can attain their desired goals.

Task 4

4.1 Compare different methods of performance management

Larger organization all over the world always compares their employee’s performance with their established standard. These companies set a standard when they start a project. Then after a period of time they compare their employee performance with the established standard to get a view about their progress. If the performance matches with the standard then they try to keep it up and if not they establish some correction to reduce their mistakes. McDonald measure there employee performance through to way. Which are:

Past oriented

This model of performance measure applies to find out an employee’s past experience, ability done a task and concentration on it. McDonald uses this model to find out their employees past experience and on the basis of it they can find out their employees ability handle a task. McDonald uses numerous rating scale to find their employee performance, they also uses a series of question to find out their employee performance.

Future oriented

Future oriented performance can find out by the ability of an employee performance such as what time period was taken to done his previous task. McDonald uses management by objective, psychological appraisal, 360-degree feedback to find out their employees performance.

4.2 Assess the approaches to the practice of managing employee welfare in a selected organization

All of the organization over the world establishes some specific principles to maintain their employee welfare to make them more productive. It provides the employee mental satisfaction to do any job. It includes workplace security, availability of ante fire equipment and so on.

Family and personal safety

It includes permanent salary flow, security of the job, and work place security like healthy workplace, adequate of ante fire equipment and so on. McDonald should provide these security to their employee as well as make them sure that their job is permanent.

Development and training

To get better outcome from an employee it needs to train them perfect. Because a train person can done more than 30% over than a normal one. So to get better outcome McDonald should train their employee.

Income protection

The primary purpose to a man to do a job is to income and if he feels risk about his income then he will not provide his better performance. So in order to get better outcome McDonald should make their employee sure that their income is secure.

4.3 Discuss the implications of health and safety legislation on human resources practices

Employee’s works in an organization seeks security and health protection to the organization and if they got so they remain liable to the organization and provide better performance. And if they not get it there working performance and motivation start to decline.

Health and safety legislation includes keep a workplace more healthy that is establish no smoking zone, providing adequate fire restrict equipment, emergency medical support service, pure drinking water and hygienic food supply and so on.

Safety legislation basically seeks security in the workplace such as security of the personal data, personal equipment like mobile phone and so on. Employee provides some personal data while joining an organization. Organization should protect them and should provide them when the employee resigns from the organization.

McDonald provides their employee better health and safety issue in order to get them more liable. It adds some extra cost to the company but by this they can also get extra profit through the better outcome of the employee.

4.4 Evaluate the impact of one topical issue on human resources practices

The process by which a company seeks for employee, select them, train, motivate and develop them to achieve organizations desired outcome is human resource management. There are several topical issues in human resource management such as identify where recruit for employee, seek for employee and then finally select the best one by interviewing them. In this situation an organization faces two problems. One is under supply of labor and another is over supply.

An organization faces the problem of under supply of labor when the supply of labor is lower than the company seeks. Suppose McDonald seeks for 100 employee and their HR provide those 70. In this situation McDonald matches their regular employee with their part time employee.

Another situation is over supply of the employee. If McDonald seeks 100 employee and their HR supplied those 120 then this situation occurs. In this situation McDonald lay out their new extra employees to adjust the vacancy.

Conclusion

As a fast food producer company there are several employee works in McDonald. They are from several region, country and race. Also they are several color, and gender. So McDonald should concentrate on their employee so that they cannot create discrimination among them. As Fast Food Company basically works with fire so McDonald should provide adequate fire restrict equipment to save their employee. They should also establish a smoke free workplace and emergency care in their work place. McDonald should establish equal opportunity among their organization so that no one can get extra benefit and no one less. They should also establish some specific act to protect their minor and disable employee. They also need to provide their employee security on their workplace. Flexible work schedule should be establish to make their employee more productive.