McDonald’s Recognition Scheme: Supporting Culture And Future Leaders

McDonald’s Recognition Scheme

1. Discuss how the recognition scheme supports McDonald’s culture and attracts future leaders?

2. Discuss which theory you think would support McDonald’s recognition scheme?

1. The Following Case Study Deals With the Behavioural and the Ways McDonald’s use in their Business Scheme to Make Profit.

For the following case study, different scenarios will be discussed on the basis of McDonald’s organizational structure and their way of hiring the people and also the lucrative ways they keep in their schemes for their employees. It would also discuss if they are going to be a directly part of a non-profit organization (Renz, 2016).

For the following case study, McDonald’s human resource management is taken to be in consideration and the methods or ways they take in their organization to keep their employees intact. Also we would look into the internal strategies of the company and the difference in their approach on human resource management with some not for profit organization.

McDonald’s has a recognition scheme which gives their employees a chance to prove themselves and choose a future leader from that group.

McDonald’s in Australia has the largest employee with about seventy five thousand people. It won an award in the year 2008 for one of the best companies to work in Australia. It has a strong potential for developing its future leaders as many of its employers including the managing director of the company also started in the as young as fifteen years old. They have a strong understanding of the uplifting the people who got potential and who prove to be good for the company in the future. As many as seventy percent of the employees who work in McDonald’s are mainly school going student aged between fourteen to eighteen years. Having young people in the staff provide a large pool of potential managers and future leaders in the organization. Having young people at the workplace also prove to be beneficial as they tend to learn thing quite easily compared to others. Young minds also tend to give more and more innovative ideas and each in its unique way.

As McDonald’s is considered the biggest of all in the global fast food market, it uses its organizational culture to attract more and more employees. McDonald’s organizational culture motivates learning. This reflects the effectiveness to achieve the desired levels in the corporate culture of human resource capabilities (Purce, 2014). This highlights why McDonald is so famous and an established company worldwide. It has a unique culture that is followed by five strategies namely people, products, place, price and promotion. There is strong recognition in the company itself. It is possible because it runs formal annual events and developing programs that are operated in the corporate level. The one that runs at store level is the Crew Recognition Program as this is aimed to find out the one who have contributed the most during hi/her shift. The ones who are in high level are also recognized by giving them awards as the employer of the month or employer of the year.

McDonald’s Organizational Culture

They get their names printed in the monthly staff magazine named WRAPT and are also awarded some gift or discount card. There is also an Outstanding Achiever’s Award at the corporate level where employees get nominated by their managers for contributing the most to the business strategy or is delivering results which was not expected. They are approved by each recipient and are awarded a $500 dollar gift voucher and also get a formal recognition to their peers at the annual staff meeting. The main reason they prosper with their scheme is because the organization has some following characteristics. The first one is the People-Centricity where the employers need and development gets prioritizes (Purce, 2014). They encourage their employers to help improve processes and procedures to ensure the support for the people. Second is the individual learning where importance of lifelong learning are highlighted which in turn promotes the productivity, quality and business effectiveness (Sparrow, Brewster & Chung, 2016).

 It also offers training and development opportunities to enhance one are learning. The main aim is keep employees more motivated in learning. The third one is the organizational learning where they aims to use ones learning to develop organizational knowledge to push the business forward. They encourage their employees to give feedback and knowledge sharing through policies, programs and meetings. The last one is the Diversity and inclusion where the human resource management sees the importance of optimizing human resource capabilities that deals with diverse market. To keep a check on the diversity and inclusion, the employers are encouraged to give their feedback so that it can help the organization to grow more and more. By giving feedback, they can understand more about their internal problems and help in managing (Purce, 2014). Giving feedback also helps them to ensure they are well received in the organization and with this feedback they can get a clear picture of what is in the mind of the employees. This also helps in enabling the quality of service through people centricity, individual and organizational learning (Sparrow, Brewster & Chung, 2016).

McDonald mainly focuses on individual learning and strong team spirits. A strong culture has developed due to its recognition program which in turn contributes retention of staff. With more interactions with the employees’, they can get to know more about their talents which can help in their productivity and will give them more chance to prove themselves among their peers which will boost their confidence which will make them work for long (Doherty, Haugh & Lyon, 2014).

2.McDonald’s Recognition Scheme can be understood by Maslow’s Hierarchy scheme under which Motivation and Rewards are Included and Self-Determination scheme.

Maslow’s Theory and Self-Determination Theory

 Motivation and rewards are there at the core of recognition schemes as if the organization supports their crew members more, they can help in turning the productivity for the organization and if there are any rewards included in their work, the employees would try their best to get that which will keep them motivated for their work more and more. This will in turn also help them to get recognized in front of their peers at the annual staff meeting which will give them a chance for upliftment (Healy, 2016). Motivating someone will also help the employees to get more engaged in their work and if possible find a way to some innovative ideas which would help the organization to grow. Fulfilling the needs of an employee would also help in increasing the performance of the employer (Benn, Dunphy & Griffiths, 2014).

Effective motivation system helps in greatly increasing the performance of the employees’ performance hence productivity is also increased. Maslow’s theory and self determination theory should help the company’s recognition scheme. Maslow theory has been depicted as a pyramid which shows the needs of a human being (Healy, 2016). The first one is the physiological scheme in which the employee expects to have a goof working environment and should get monthly salary and also should provide essential facilities. The second is the safety needs where there would be a contract between the employer and the company and also benefit with pension and sick pays (Maslow, 2013).  The third one is the social needs where there will be groups working across teams at different levels encouraging team building through social activities. The fourth one is the self-esteem where one expects to get respect and praise from others. Feedback and appraisal system can help in recognizing the employees’ contribution. Celebrating employees’ achievement would also help them in regaining that self respect and appraisal. The last in the pyramid is the self-actualisation, where one employee is motivated to believe in one self so that he/she can have career discussions among managers and human resource and also they should have the confidence that they can fill any future vacancies (Maslow, 2015) (“Summary of Maslow on Self-Transcendence”, 2017).

The second theory would be the self determination theory or SDT which is concerned with the supporting of natural or intrinsic tendencies to behave in effective and healthy ways (“Extrinsic vs. intrinsic motivation: what’s the difference? – NTD.TV”, 2017). SDT is mainly concerned with basic three psychological needs that are competence, relatedness and autonomy can be used for the optimal development and functioning of human persons. Competence can be referred to as meeting the daily challenges and demands of environment. These can be achieved by effective outcomes and having desired goal sets. Autonomy can be defined as having the control in making choices from one’s own will (Van den Broeck, Vansteenkiste & De Witte, 2013). The essential elements that bring about the autonomy includes self awareness of one’s motives, external demands and emotions and having the chance of self direction and choice making and have active involvement. Both competence and autonomy are necessary for maintaining the intrinsic motivation (Kehoe & Wright, 2013). Relatedness can be defined as the need to achieve connections and closeness with others. This will further provide emotional security. SDT shows the need to get competence, relatedness and autonomy and describes it as compatible and universal. SDT says the people gets influenced by their culture in assigning the meaning and often interpret as positive or negative. With the help of SDT, many employees’ can get their recognition as they know what is good for them and what decisions will make profit for the company (Spence & Deci, 2013).

Conclusion

If they give any feedback or suggestion that can really help the organization, they will be automatically recognized by their managers and hence they can get some rewards or incentives which will motivate them to work more and more and they would prove to be more productive in the coming years. Autonomous academics help to adapt learning attitudes, academic studies and well being. Autonomous helps a person to decide what is good and what is bad (Kehoe & Wright, 2013). This helps those making decisions which are more effective and this helps them stand out of the blue. Their intellectual thinking helps them to think more deeply and this also helps in recognition of the employees among the peers and gives them a better chance for the upliftment (Renz, 2016). Hence, these theories can help in the recognition scheme as with the above theory, one can evaluate oneself more deeply and one can make him/her more useful.

McDonald’s approach is very much different from any not for profit organization. McDonald’s approach to managing the HR would not be directly applicable for the Non-profit organization as McDonald’s is doing business for which they need human resources to run that organization where as in any NGOs; they work there willingly to help people. McDonald’s is solely dependent on human labor so they need some rewards and motivation so as to keep their workers in place (Renz, 2016). They need some lucrative offers too so that their crew remains interested. Along with the rewards, they need to provide some allowances like free food, place to live, pensions and a good working environment whereas in case of Spastic Centre, as they are NGOs, they don’t find this attractive (Butler & Wilson, 2015). McDonald’s per year make millions of turnover and they are the longest chain in the fast food market and hamburgers. For McDonald’s, human resource management is required to look after every department and how it is operating and with time providing them with rewards occasionally (Grant, 2016).

The not for profit organizations is a company that is trying hard to find  quality staff for a long run. Therefore, the not-for profit organizations are trying hard for the retention of their existing employees (Butler & Wilson, 2015).

The essay is trying to highlight if McDonald’s human resource management strategies can be applied in a not-for-profit organization. A thorough study has proved that McDonald’s has been effectively maintaining good relationships with its employees and employees are given firm opportunity to improve their position on the assessment of their performance where it falls under the expectancy theory.(Renz, 2016). The essay says that the employees in the McDonald’s company are well taken care of on the basis of their performance and are also rewarded according to their performance. But on the other hand, the employees in the spastic centre are trained according to the conditions of the company that may face in the future.

McDonald’s style cannot be applied in case of any not-for-profit organizations. Company whose aim is in maximizing the profit for every fiscal year has to  implement different strategies in order to get the benefits from there employees. The same cannot be applied for any not-for-profit organizations as they tend to work for the betterment of the society and also encourages their employees to work for the benefit of others and should be selfless in their work (Renz, 2016). McDonald’s gives the power of authority to the managers who looking after a particular franchise. According to agency theory, they got the power to implement and can also execute the decisions that has been made and these decisions are not related to the ‘principals’.

There is a fine line that is underlying between a multibillion company and a not-for-profit organization. Not-for-profit has no aim in earning any sort of profits. The not for profit organizations generally hire and try to hold onto their working personnel so as to reach the aim they are working for. The company also offers quality training for their employees so that they can reach the goals that they up set for. Monetary rewards are hard to give to the employees working for any not-for-profit organization, as they do only work for the betterment of the society. The tax is deducted from the salary of the employees.  Facilities such as superannuation scheme, perquisites, and food provision scheme are given to the employees of Spastic Centre (Alliance, 2017); however there is no scope for any kind of opportunities. McDonald’s is able to give much better opportunities and security to the staff from all the investment and franchise that is under the company.

Since an argument always forms two way paths, there will be no topic untouched for the same argument. Managing strategies are also different for any not for profit organization. Some conditions are there that need to be checked before the proceedings where one needs to check if there is any opportunity in the growth of the company; whether it covers insurance of the employees and whether the employees can find any sort of competitiveness in there workplace .  

Conclusion

Rewards are really important for any organization but on the other hand, it is bad also as when there will be no rewards or any monitory benefit is included in any other work, then that individual may not want to do that task anymore. Good managers motivate their workers to do even good. Motivation helps anyone to do a task more efficiently and can prove to be more productive. With their productivity in line, they can benefit the company more and hence they get recognition from their peers. With rewards and incentives included, they can take their work more seriously (Wilton, 2016). Here we would consider the Maslow Theory where the basic needs of a human being are described and all organization should follow this structure so as to give their workers a safer environment to work.

References:

Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model. The international journal of human resource management, 24(2), 330-351.

Alliance, C. (2017). History | Cerebral Palsy Alliance. Cerebralpalsy.org.au. Retrieved 9 February 2017, from https://www.cerebralpalsy.org.au/who-we-are/history/

Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.

Benn, S., Dunphy, D., & Griffiths, A. (2014). Organizational change for corporate sustainability. Routledge.

Butler, R., & Wilson, D. C. (2015). Managing voluntary and non-profit organizations: Strategy and structure. Routledge.

Doherty, B., Haugh, H., & Lyon, F. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417-436.

Extrinsic vs. intrinsic motivation: what’s the difference? – NTD.TV. (2017). NTD.TV. Retrieved 9 February 2017, from https://www.ntd.tv/2017/02/08/extrinsic-vs-intrinsic-motivation-whats-difference/

Fee, M. C. (2014). Human resources management.

Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Healy, K. (2016). A Theory of Human Motivation by Abraham H. Maslow–reflection. The British Journal of Psychiatry, 208(4), 313-313.

Kehoe, R. R., & Wright, P. M. (2013). The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of management, 39(2), 366-391.

Maslow, A. H. (2013). A theory of human motivation. Simon and Schuster.

Maslow, A. H. (2015). A theory of Human Motivation. Classics of Organization Theory, 50, 142.

Purce, J. (2014). The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.

Renz, D. O. (2016). The Jossey-Bass handbook of nonprofit leadership and management. John Wiley & Sons.

Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.

Spence, G. B., & Deci, E. L. (2013). Self?determination theory within coaching contexts: Supporting motives and goals that promote optimal functioning and well?being. Beyond goals: Effective strategies for coaching and mentoring, 85-108.

Summary of Maslow on Self-Transcendence. (2017). Ieet.org. Retrieved 9 February 2017, from https://ieet.org/index.php/IEET/more/Messerly20170204

Van den Broeck, A., Vansteenkiste, M., & De Witte, H. (2013). Self-Determination theory.

Wilton, N. (2016). An introduction to human resource management. Sage.