Discuss about the Prototype for Sustainable Agricultures.
Managing human resource is an important organisational activity as success of a company depends to a high extent on the skills and abilities of the recruited human resource. However, as pointed out by Bal & Dorenbosch (2015), only recruiting skilled human resource is not enough. Encouraging and recognising them is also an essential activity for a well improved organisational culture. This essay therefore focuses on understanding the recognition scheme of McDonald. Further, it focuses on analysing and interpreting theories that underpin the recognition scheme. The applicability of this recognition scheme in a non for profit organisation is also taken into consideration for analysis.
Critical analysis on McDonald’s recognition scheme and its impact on organisational culture, theories supporting it and its applicability in non profit organisation:
Within the organisational culture, one of the most significant elements and determinates are employees. They serve as the base of the organisational production. Lamine, Navarrete & Cardona (2014) has stated that through the application of the skills and efforts of the employees, the quality of the products and services is increased. This is directly attached to the organisational benefit regarding the enhancement of the customer loyalty. In the financial development and entire improvement, the impact of this is quite significant as through this the market share of the organisation is noticeably increased (Kramar et al. 2014). Therefore, it is also the sincere responsibility of the organisational management to focus on the expectations and needs of the employees in order to satisfy them. It is the fact that one of the most necessary expectations and demands of the employees is to avail the recognition scheme maintained by the organisational management. Kusluvan et al. (2010) has observed in this regard that behind the wide-range success of each of the global organisations is the sincere application of the recognition scheme by the managements for their internal leaders. This has the potency to empower the leader and staffs. This is also helpful in attracting the attention and interest of the future leaders to the organisational functions, too. McDonalds is not any exception regarding this.
There are several recognition schemes that are applied by the management of McDonalds for their leaders such as employee remuneration long with the opportunities to gain a reward. In the concept of the recognition scheme, the management of McDonalds has focused on the remuneration and reward and has been implementing changes in their employee pay scale, pay structure along with the job structure. According to Bradler et al. (2016), remuneration is a business term that signifies the process of returning the employee’s something back against their contribution for the benefit of the organisation. This remuneration, within McDonalds, is given through the form of special incentives, increments along with rewards. McDonalds is a fast food company that has more than 900 stores with around 91000 people (Mcdonalds.com, 2017). In fact, this company has to face a tough competition in the global market regarding the gaining of an effective market share.
There are the fast food companies like KFC, Mr. Burger, Subway, Burger King and others in the Australian as well as global market. Due to this, there is a monopolistic scenario in the fast food industry in this country. However, with the improved quality food with reasonable price, the management of McDonalds has enabled to occupy 25% of the entire market share (Statista.com, 2017). On the other hand, the companies like KFC, Mr. Burger, Subway, Burger King and others have their market share of 30%, 10%, and 15%, 5%, and 15% respectively. Therefore, it is quite clear a fact that the rank of McDonalds is just after the KFC that is satisfactory. The fundamental strength of this success is the service of the best effort by the leaders and employees of McDonalds. However, in a similar way, the leaders and the staffs are also encouraged by the remuneration and special offers, rewards along with increment opportunities provided by the management.
Within McDonalds, it can be noticed that the internal culture is quite healthy and positive with the recognition schemes and the employees are greatly influenced and motivated by this. The management uses to offer rewards through two specific ways, such as financial and non-financial processes. Sometimes they involve themselves in offering direct increment to the employees or even the cash payment or commissions, too. However, (Benmokhtar, 2014) remarked that indirect payment refers to the providence of medical insurance, increase of the holidays along with the reduction of the duty hours for some extraordinary contribution by the employees. Even, there are also the non-financial reward systems operated by the management of McDonalds through the application of job improvement and betterment of the working environment. Manzoor (2012) argued that job-related rewards satisfy the newly employed staffs as through this they can get an interesting, responsible, dutiful and challenging work that may help them to prove their personal skills and efficiencies more prominently. This is most effective for the leaders and employees associated with the customer service department of McDonalds as this increases their interest and enthusiasm to deal and communicate with the customers more passionately. On the other side, achieving a good working environment also encourage them to improve the quality of their services. The management of McDonalds also uses to provide the good and efficient employees with the most supportive and congenial colleagues. Even, Robst & VanGilder (2016) pointed out that some additional facilities such as career security, a better attachment to the management as well as direct communication facilities with the customers in order to improve their skills and experiences regarding the current market scenario and customer preferences are also provided to them.
It can be observed that the management of McDonalds uses to provide the bonus to those employees and leaders who ranks within the top 10% of the entire workforce (Mcdonalds.com, 2017). This bonus scheme supports the staffs and leaders regarding their hope for the future benefits. A special recognition scheme is also organised in every five years lapse. Even, they also feel interested in working collaboratively and the best performer is rewarded as per the restaurant performance. Due to this, other employees are encouraged to improve their own skill in order to get the highest rank. Even, the future leaders are also attracted to serve their best for this company for achieving the expected facilities and special recognitions. The next section focuses on the theories supporting the recognition scheme.
It is necessary for all the global business organisations to motivate and inspire their employees to serve their best effort for the betterment of that organisation. Through the systematic and active involvement of the employees in the functional activities, the managements of the business organisations can able to increase their profit with the help of the increase in market share. However, Wu et al. (2015) have argued that it is not only the ethical responsibility of the employees to participate actively in the organisational well-being, but also the management is also responsible for providing the leaders and staffs the facilities and recognition that they deserve. In the case of McDonalds, it can clearly be observed that the employees get the opportunity to enjoy special treatment and schemes based on their service quality and some additional efforts that are beneficial for this company. This support of the management can be related to the concept and idea of some theories.
The equal treatment is majorly related to the fair treatment of the organisational management towards the employees regarding the fact to provide them additional opportunities under the same scenario. De Roeck & Delobbe (2012) stated that the staffs of McDonalds associated with different sectors of the organisation such as production, marketing, customer dealing, the order receiving are always treated equally and also give the similar kind of opportunities to perform their skills abilities through applying self-experiences. On the other side, the management of this organisation is also fair in paying the deserving benefits for them, whether it is in cash or some other facilities. Anitha (2014) remarked that if there was some employee dissatisfaction regarding the unfair treatment of McDonalds towards their internal staffs based on the recognition scheme, the management could not have been able to run their worldwide business through both online and offline services with nearly 91000 people. The management of McDonalds has successfully been motivating their employees through the maintenance of the equal and fair opportunities as they perceive irrespective of their personal backgrounds (Li & Li, 2016). For example, if some employees attached with customer dealing section are selected as contributing some extraordinary effort to convince the customers regarding the genuine quality and price of their foods, they are generally promoted with increments as per their service standards. Even sometimes they are also rewarded with cash money or bonus schemes. This equal environment helps this company to avoid the occurrence of employee issues.
The second theory that can be linked is expectancy theory. People within the business organisations have some basic expectations from the management during their services for the organisation. Expectations of the organisational employees are one of the most significant behavioural aspects that are hugely moved by the organisational treatment towards them (Purvis et al. 2015). Not only the employees but also the management has also its own expectation that is entirely profit-related. Although the concern of the staffs centres round the gaining of special advantages from the management, the satisfaction of both of their expectations is effective in creating an improved business scenario. The expectations occur among the employees within McDonalds due to their system to provide the bonus and another promotional strategy for the staffs with an excellent restaurant performance. If the performance of the employees satisfies and make benefitted to the management of McDonalds to achieve a grand success, they naturally develop an expectation regarding some special treatment from the management, such as getting bonus or rewards (Kramar et al. 2014). This bonus scheme, in fact, is one of the most popular and existing processes of reward among the employees (HemaMalini & Washington, 2014). However, it is also another fact that the dissatisfaction generated due to the unfulfilled expectation of the employees may result into a declination in organisational profit.
Agency relationship within the business organisations refers to the interaction between the principals along with the mediums. Within the organisational context, there are different stakeholders such as the suppliers, employees, customers along with the management and their focus and concentration differs from one another. The principles and concepts of this theory make an integral association among these different interests through focusing on the staff recognition scheme in order to apply those (Pepper & Gore, 2015). The different demands and preferences of McDonalds serve as the agencies of McDonalds and the management use to keep the focus on those equally.
However in some extents, the marketing managers of McDonalds act as the significant agents for having the similar interest, that is to gain more profit through increasing their market share. However, the interest of the higher management differs from that of the employees of McDonalds in maximum cases (Shi et al. 2016). This scenario takes place due to the lacking in the management of McDonalds regarding the application of the most suitable recognition process for the employees based on the quality of their services. However, in the modern scenario, the division in the investment of the capital among the stakeholders regarding the business has generated a less risky organisational risk for McDonalds. It means that the recognition scheme is quite effective in profit organisations. However, the applicability of it in non profit organisations is not established. The next section of this essay focuses on understanding the application of McDonald’s recognition scheme on Spastic Centre, a non profit organisation.
Managing human resource effectively is significant in achieving the aim and objectives of the business organisations. For a global profit organisation, it is necessary to maintain the functional activities of that organisation in order to occupy the expected position in the global market (Manzoor, 2012). McDonalds is one of the greatest and leading fast food companies that operate its business at the global context quite successfully. Therefore it is quite prominent that the members of the human resource department of this company are quite efficient in handling the entire workforce through some strategies.
The management of McDonalds has imposed several roles and responsibilities to the human resource department majority of that are employee-centric. Through the operational activities of the HRM of McDonalds, the knowledge of the internal staffs regarding the global market along with the competitors is increased. On the other hand, through the arrangement of training, the unity and supportive attitudes among the employees also enhance (Bal & Dorenbosch, 2015). Even, to ensure a healthy and secure working environment for the employees, the role of the HRM is also quite significant. As the commercial success of McDonalds is also depended on the effective customer relationship through improved communication, the HRM is also focused on this. In fact, the recruitment and selection of the efficient employees through whom the marketing target can better be fulfilled are also performed by the HRM of McDonalds.
The sales rate through the same outlet of McDonalds has noticeably been increasing day by day. However, the sales rate of this company is quite greater as per the US perspective rather than that of the global platform. It is quite significant here to state that the contribution of the HRM of McDonalds cannot be avoidable for this gradual development.
As observed from the above discussion regarding the management approach towards the HRM for a leading profit organisation like McDonalds, it can be stated that the similar approach cannot be thoroughly applicable for a not-for profit organisation like Spastic Centre. Situated in New South Wales, this organisation has been serving for the children as well as adults suffering from cerebral palsy (Cerebralpalsy.org.au, 2017). The HRM of this organisation is majorly focused on providing a good support and treatment to the affected children by the specialists in order to bring them to the mainstream of life. Therefore, while the HRM of McDonalds is concerned about the improvement in their market share, Spastic Centre is more focused on taking care of their service users. Even, the training of the employees of McDonalds is completely organised based on market demand whereas the training of the care workers of Spastic Centre is all about people-centric for their betterment. The management and HRM of Spastic Centre need not give enough focus on the recognition scheme for the employees as per the target of their duties that completely differs from that of the McDonald’s. Therefore, although both McDonald’s and Spastic Centre have their specific target audiences with organisational purposes, the application of management approach of the human resource of McDonalds cannot be categorised in a similar way like Spastic Centre.
Conclusion:
Thus, from the above analysis, it becomes clear that McDonald’s recognition scheme is helpful in creating a good organisational culture where employees are satisfied and a good relation between the employees and employers are created. The analysis of agency theory, expectancy theory and equity theory has well supported the recognition scheme in McDonalds. However, it has found out that recognition scheme of a global profit organisation cannot be directly applied within a non profit organisation due to the differences in their purpose and business activities.
References:
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