Managing Human Resource

Introduction

Human resource management plays an important role on the organization. Guest’s model helps to describe the human resource management properly. There is a basic difference between HRM, personnel and IR practices according to Storey. Every company’s line manager and employees must have a major role of developing a strategic approach to HRM. McDonald must need to identify the model of flexibility, types of flexibility, and flexible working practices for gaining better outcome from their personnel. They also need to remove the discrimination between personnel within organization to ensure the fresh environment and mind for their personnel. Performance management is determined based on the performance of personnel that must identify by McDonald in order to evaluating the actual activities. McDonald will also need to provide personnel welfare for motivating personnel toward organization.

Task 1

1.1 Explain Guest’s model of HRM

Human resource management is a process of an organization that undergoes to manage people in order to achieve its goal. It includes conducting job analyses, planning personnel needs, recruiting the right people for the right job, orienting and training, managing wages and salaries, resolving disputes, and communicating with all employees at all levels (Armstrong, 2008).

Guest’s model of HRM has six components and these are very closely related with many others company like McDonald. This model is shown below:

Figure:  Guest’s model of HRM

Here financial outcomes refer to profits, ROI which largely depend on performance outcomes. Performance outcomes mean positive productivity, innovation, improve quality, negative turnover which are the result of employee behavior. Behavior outcomes deal with motivation, co-operation, and organizational citizenship. Actually, behavioral outcomes are needed employee commitment, product quality, and flexibility to become successful within an organization. Human resource practices need to hire right people, train them, and maintain good relation with them. McDonald is the world’s largest fast food restaurant. They are operating in 119 countries through 3600 outlets all over the world. For effectively running their business they need to follow a strategy Like Guest’s model. If they want to get more profit by serving the customer properly, they need to follow from HRM practices to financial outcomes to earn more profits (Boella, 2012).

McDonald also maintain soft and hard approach to achieve their objectives. Soft approach emphasizes on proper communication, motivation and leadership whereas hard approach emphasizes on the close integration of human resource policies with business strategy. The other dimension like loose and tight that McDonald try to maintain.

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

In 1992 Storey has established a theoretical model based on his own perception of how organization has evolved from predominant personnel and IR practices to HRM practices. He called his theory by another name that is a model of the shift to human resource management. He began his approach by defining four elements which distinguished HRM (Boselie, 2005). The differences between Storey’s definition of HRM, personnel and IR practices are shown below:

Dimension	Personnel and IR	HRM
Contract	There is a written contract	There is no written contract
Management action	Maintain a procedure	Sometimes follow procedure if business needed
Behavior system	Norms, customs and practices	Values or mission
Management task completed by labor	Completed through monitoring	Completed through nurturing
Speed of decision	Slow procedure	Fast procedure
Key relations	Labor management	Customer management
Management role	Transactional role	Transformational role
Key managers	Personnel/IR specialists	Business managers
Communication system	Indirect system	Direct system
Payment system	Job evaluation	Performance evaluation
Labor management	Collective bargaining contract	Individual bargaining contract
Job design	Division of labor	Teamwork
Job categories and grade	Many categories	Few categories
Prized management skill	Negotiation	Facilitation

McDonald have HRM department, personnel and IR practices to complete their assign task and achieve their goals. Like Storey’s perception and beliefs, the department of HRM of McDonald aim to go beyond written contract, it is more customer oriented approach with fast speed of decision making and central cooperate plan. HRM maintain more transformational leadership rather than the personnel and IR practices which maintain transactional leadership (Boxall, 2009).

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

There are many suggestions for line managers and employees of developing approach to HRM. Depending on the basis of human resource management, Delery and Doty (1996) said that, organizations which adopt a particular HR strategy that have different forms to meet different purposes of organizations, then the organization have the ability to enjoy the superior performance (Budd, 2010). They identify three HRM perspectives-

1    )      The universalistic perspective: There are some better HR practices rather than other HR practices, most of the organization should implement these best practices. McDonald always try to maintain some universal relationship between individual best practice and firm performance.

2   )      The contingency perspective: It refers to the consistency with other aspects. In order to be effective, McDonald follow those HR policies which must be consistent with other aspects of the organization. The basic consistency factor is the organization’s strategy.

3     )      The configurationally perspective: It is the holistic approach that emphasizes the importance of the pattern of HR practice. There are two variable one is dependent variable and another is independent variable. McDonald always concern about the differences between independent variable and dependent variable for developing a strategic approach to HRM.

Task 2

2.1 Review and explanation a model of flexibility

Human resource is a process of conducting job analyses, planning personnel needs, recruiting the right people for the right job, orienting and training, managing wages and salaries, resolving disputes, and communicating with all employees at all levels that help the organization to get competitive advantage over the market. Like others, McDonald have a business flexibility model in their workplace. This model is shown in the following and described briefly.

Production capability is very much crucial for every organizations. McDonald have the capacity to produce their products in that workplace where they try to sell. Logistic is the part of supply chain management that controls the flow of goods and information from point of origin to point of customer effectively and efficiently. McDonald strictly maintain their all flow of information from their workplace. Another flexibility option is sales priorities that means after knowing customers demand they provide their goods for fulfilling customer’s need. McDonald distribute their goods thorough not to export but to draw a distribution network from that very workplace. This business flexibility model helps McDonald to achieve friendly working environment, to elicit more effective employee, and to get competitive advantage over the market place. Sometimes the personnel of McDonald additionally have the implication especially regarding job security (DeCenzo, 2005).

2.2 Types of flexibility

Flexibility strategy is to be developed for a flexible firm by providing greater operational and distribution flexibility. Flexibility is used by McDonald to utilize the resources of others workplace, to encourage employees for multitasking. Different types of flexibility are available that McDonald used for their firm. These types are exposed and discussed in the following.

Functional flexibility is used so that employees can be redeployed between activities and tasks in the quickest and smooth way. It is also used for completing multitask of an organization. McDonald use functional flexibility for reducing the differentiation line between occupations or the limitations between employees. Financial flexibility focuses on the ability of a company to react against unexpected expenses and find out the investment opportunities. Here McDonald should have the ability to adapt with the situation when unexpected expenses are occurred. Numerical flexibility is the ability of a company to adjust the number of employees or the working hours that reflect the business needs. McDonald should recruit part time employees to better match the hours when customer prefer to visit the shop. Location flexibility is a flexibility for employees to work anywhere based on the organization’s office. McDonald should train their employees to adjust any workplace for achieving organizational goals (David. M, 2000).

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

Flexible working place is not used for either employee or employer. It must be used from two sides that means from both the employee and the employer perspective. From the employer side McDonald use some common factors-

Ø  Should increase competitiveness both nationally and globally

Ø  Bring new technologies

Ø  Should change in labor demand and supply

Ø  Should maintain govt. Policies

Ø  Try ro reduce fixed costs and variable costs

Ø  Try to reduce the absence of labor and their turnover

Ø  Reduces the period of time in production

Ø  Aids to recruit and retain employees From the employee side McDonald also use some common factors

Ø  Try to increase the ability to work with outside

Ø  Provide greater job satisfaction

Ø  Reduce tiredness

Ø  Try to increase motivational level

To maintain these factors McDonald face some problem from both employer and employee perspective. Form the employer perspective they face higher training costs, higher direct costs, more complex administration, communication difficulties. From the employee perspective they face job security problem, stress problem, training facilities problem, career development problem (Giannantonio, 2001).

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

Labor market is changing day and day in various reasons and it has affected flexible working practices and models in numerous aspects. However the major changes in labor market are focused.

Ø  Population: The number of population all over the world is increasing day by day. Because of the increasing population the pattern of workplace have changed and that can affect the flexible working practices. Thus personnel want to work anyplace where they can get better satisfaction.

Ø  Education: It helps personnel to increase or change their mentality for working with team, group, or any place. Education enhances the mind that’s why personnel being more flexible. McDonald train their employees before working for educating personnel (Haberberg, 2008).

Ø  Increasing expenditure: Daily expense of human life is increasing day by day. For this reason personnel want to get part time job besides main job. McDonald has been able to provide part time job for students, part time job hunter.

Ø  Society: It is a topical issue in the labor market that have an impact on the flexible working practices. In a state, few societies have large labor supply than needed, again few societies have small labor than needed. As a result, personnel are switching all over the world because of insufficiency. McDonald employ their personnel based on lacking in the state (Hill, 2005).

Task 3

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

Discrimination is a major problem within an organization. Many reasons are available like- disability (including mental illness), culture, religion or belief, color, ethnic origin, language, political beliefs, gender, sexual orientation, age, marital status, responsibility for dependent that have taken place in the workplace. Here major discriminations are shown in the following figure and described briefly.

Ø  Direct discrimination: Direct description is occurred when one person treated less favorably rather than another in the same situation or similar circumstances, or segregating them from others solely because of their disability or illness. McDonald have refused those people for recruiting who have disability, deaf problem, or over a certain age problem despite of their required skills (Holsapple, 2000).

Ø  Indirect discrimination: Although there is no direct discrimination problem but there is an impact over the employee or people. It is occurred when some rules and regulations applied for all people or employee to complete the assign task. Like mcdonald circular job vacancy for all people to work in the outside of the organization but it indirectly affects women to work in this organization. Because they are unable to work outside of the organization for the long time.

Ø  Abuse/ Harassment: Basically this problem is faced by the ethnic minority group, a lesbian, or an older person.

Ø  Racist incident: it is an incident which perceived to be racist by another person. If the victim does not complain, then another person may do so (Huselid, 2011).

McDonald should monitor staff appointment to ensure no discrimination is occurring in the selection process.

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

From prior to the 1970s, typical personnel practitioners tried to reduce such types of discrimination in the workplace. They have understood what is required to equal the opportunities in the workplace? They have developed some laws and legislative framework relating to equal opportunities.

Act	Areas covered
Sex Discrimination Act 1975	Sex and marital status related. It has been developed for the people who are married.
Sex Discrimination (Gender reassignment) Regulation 1999	It has been developed for the persons who intended to undertake sex change.
Race Relations Act 1976	It has been developed to reduce the color, race, nationality or ethnic problems
Disability Discrimination Act 1995	It has been advanced for the disable person
Equal Pay Act 1970	Male and female must be gotten same pay for work
Employment Equality (Sexual Orientation)	It has been oriented for the same sex, for the opposite sex, shift of the both same sex and opposite sex.
Human Rights Act 1998	It has been established to prohibit of forced labor and slavery.
Employment Equality Regulations 2003	It is supported for the same religion and same belief.

McDonald have regulated, if appropriate, few Acts against discrimination through the line manager. But in the different case they should develop, if not appropriate, few Acts against discrimination through senior manager (Traynor, 2002).

3.3 Compare the approaches to managing equal opportunities and managing diversity

Equal opportunity refers to the opportunity where all people will be treated equally or similarly in the same workplace and not disadvantaged by prejudices or bias. This means that the best person is promoted for the job based on the experience, quality, and knowledge without any discrimination.

Sometimes it is used to concentrate or avoiding discrimination and unfairness between people, group, or nation, but it should be practical rather than emotional. McDonald should grow some proactive rules and regulations against discrimination by which all of the people have the same facility to participate (Jain, 2005).

Managing diversity is a way of selecting where everyone is valued based on their differences. Diversity includes not only race but also gender, age, education, background of the culture. On the other hand, approaches concerning management of equal opportunity basically focus on personnel recruitment, awarding, promotion, and rewarding them by providing same opportunities. McDonald should identify those people who can bring fresh ideas and perception to do the work more effectively and efficiently. According to the CIPD ‘managing diversity needs to become a conventional issue which has motivations to all employment policies and working practices.

Task 4

4.1 Compare different methods of performance management

Performance management is a systematic evaluation of an individual with respect to performance on the job. In another way it is formal, structured system of measuring, evaluating job related behavior and it measures how to perform effectively in future so that society, employee, and organization all benefited.

Numerous methods have been used to measure the quantity and quality of performance management by McDonald. Broadly, all methods of performance management can be divided into two different categories which are exposed in the following figure and discussed briefly (Cheatle, 2001).

Past oriented methods: Past oriented method refers to the measurement of the employee’s performance based on past experience, knowledge, and practices. There are some methods available like

Ø  Rating Scales represents several numerical scales of job related performance criterions such as dependability, initiative, output, attendance.

Ø  Checklist is a statement of behavior of employee in the form of yes or no based questions. Here the line manager does the reporting or checking and HR department does the actual evaluation.

Ø  Forced choice method is a series of statements arranged in the question paper from which employee can mark one for measuring their performance.

Ø  Field review method is done by the outside employee’s own department usually from corporate or HR department (Lloyd, 2007).

Future oriented method: it is organized by evaluating the current performance as well as the objective of the organization. There are some methods available like

Ø  Management by objectives process goes to establish goals and desired outcomes for each subordinate, to set performance standard, to compare the actual goals with the targeted goals.

Ø  Psychological appraisals are done through in-depth interviews, psychological tests, and discussion with supervisors and it is more directed to the future performance rather than the past performance.

Ø  360-Degree feedback is a technique by which performance data are collected based on an individual group, team members, customers, peers and self.

Ø  Assessment centers basically focus on the observation of behaviors across a series of select samples. Here manager may come together to have their perception in job related exercises that is evaluated by trained manager (Hook, 2005).

McDonald should follow above these two types of performance appraisals to measure their employee’s performance.

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

McDonald offer numerous types of managing employee welfare to their employee. Actually it gives to the employee for working in the satisfied environment and company can gain better outcome from their employee by providing employee welfare. However, McDonald provide various employee welfare to their employee but the basic issues are revealed.

Ø  Family and Personal Safety: Every personnel not only in mcdonald but also in any organization want personnel assistance not related to work for reducing mental stress at the working sector. It aids them to be free from extra pressures that can affect their productivity. If they are free then the production also increase and organization can be benefited by producing large products.

Ø  Income Protection: It is a program that related to the personnel working life. It helps them to achieve fiscal security both during employment and during retirement period. By providing income protection McDonald can retain their personnel for the long life.

Ø Development and Training: it is another issue of managing employee welfare. It aids personnel to achieve increased skills and it also helps expertise to enable increased productivity and performance levels.

There are also include two approaches like- Blanket approach and Cafeteria approach in the managing employee welfare. Cafeteria approach helps personnel to choose involvement in such programs based on their need whereas Blanket approach helps personnel to get same equality for attaining such programs. Cafeteria approach is more complex comparatively blanket approach. Thus, McDonald should determine personnel needs before implementing any management activity (Nieto, 2006).

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

Health and safety legislation usually affects HRM in various ways. Normally, human resource management is the act of HR manager. Broadly, it refers to the process of recruiting, selecting, organizing, managing, motivating, controlling over the personnel and the task related to the management.

Health and safety legislation adds some extra expenses to the organization. Health legislations usually demand to the HRM that company must ensure acceptable health status of personnel both during working period and during retirement period. McDonald are responsible to provide health security as penalties in case of violation instances to their personnel both during working period and retirement period.

Safety legislation normally demand to the HRM that company must ensure both company personnel and company environments security. Safety legislation also adds additional costs to the organization. Although safety legislation is provided by the organization but it is the main task of supervisor (Morden, 2007).

There are various reasons for occurring accidents within organization like- limited exit path, using old machineries, short circuit, and unfavorable organizational environment. McDonald should follow some policies to prevent those accidents. These are-

Ø  Available emergency exits 

Ø  Presented fire protection

Ø  Ensuring healthy environment

Ø   Using new equipment

Ø  Replace old wire with new wire

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

In the previous question it has been said human resource management is a process and act that is monitored by manager. Numerous topical issues are available that can affect HRM across all sectors. Labor supply is an issue that can affect HRM practices through either under supply or over supply.

Under supply of labor occurs when a particular system is unable to provide an adequate qualified personnel to the organization. It may happen because of those factors such as lack of educational background, lack of experiences, lack of efficiency, lack of knowledge, and lack of intention to hard work.

Over supply of labor occurs when a particular system churns out to provide more qualified labor than needed. It may happen because of those factors such as highly qualified personnel, extremely knowledgeable, intention to hard work.

Here e-recruitment is another major topical issue that can affect HRM practices in McDonald. It involves the use of internet to search the potential employee. E-recruitment also helps the personnel in order to applying over the internet. Sometimes McDonald conduct online interviews. Thus McDonald get competitive advantage by maintain this policy (Thomson, 2002).

Conclusion

Human resource management is a process of conducting job analyses, planning personnel needs, recruiting the right people for the right job, orienting and training, managing wages and salaries, resolving disputes, and communicating with all employees at all levels. McDonald should recruit their personnel based on knowledge, experience, education, flexibility. They have to determine the model of flexibility, types of flexibility, and the implications of flexibility in the workplace that can affect HRM practices. Discrimination is a major problem in every organization. McDonald must strictly maintain Acts like- Sex Discrimination Acts, Race Regulations Acts, Equal Opportunities Acts, and Gender Discrimination Acts against discrimination. They also provide same facilities for all the personnel to do job. McDonald should measure every personnel performance based on their activity. They have to provide health and safety legislation program to their employees for working in the fresh and secure environment. Sometimes they need to evaluate the impact of e-recruitment for both employer and employee in order to facilating the recruiting process.