Discuss about the Managing Human Resource in McDonald.
Hiring employees is an important factor in creating a tough workforce that is only going to deliver better results in future. Selecting right employees is key and retaining the same is even more important. Organizations are coming into terms with the competition that is increasing with every passing day in retaining good employees with attractive salary. Each industry witnesses a different level of retention of employees where there is evidence of some organizations suffering internally. Provision of maximum satisfaction is essential to employees as an organization is built around its people and much of its profitability and performance depends on the employees (McCloskey, McDonald & Cook, 2013). McDonald’s Australia is a big player in the sector of fast food restaurant chain employing 75000 people.
The main aim of this essay is to focus on the recognition schemes of McDonald’s and the ways it has been successful in shaping up future leaders from within an organization. The recognition scheme of McDonald’s is studied in details to appreciate the importance it holds in shaping up of future leaders. Different theories are also taken in to understand the ways they are applied in the policies and strategies of McDonald’s. Moreover, the organizational perspective of non-profit seeking organizations is also taken into consideration and whether it has the ability to perform like a profit-seeking organization like McDonald’s. This essay is all about the increase of employee motivation through rewards and recognition, which in turn helps in their retention.
McDonald’s human resource department plays an important part in determining the quality of the workforce and the attainment of eventual goals. The HR department of McDonald’s is responsible for selecting the right candidates possessing the right skills and knowledge that comes at right cost. Ample training is required for employees, which needs to be properly kept track of. It is the responsibility of the HR department to keep focus on the compensatory matters of employees along with training, administration and employee recognition (Fallon & Rice, 2015). Recruitment should be the time when companies should take account of retention factors. Retention is only possible if the HR department recruits the right people for the right job. McDonald’s recruitment policy has been one of the best as the focus has been directed towards the ability of the candidate matching with the objectives of the company (Wilkinson & Johnstone, 2016).
It is the duty of the Human Resource Management to deal with the ‘Human’ nature of an organization where encouragement is provided to new talent along with allowing the best potentials to flourish and protect the future of the organization. McDonald’s DNA boasts of passion of employees where each team member illustrates adequate interest in engaging oneself in teamwork and shaping a team that enables the restaurants to remain triumphant, even though the teams are different for all its chain of restaurants. Mystery shoppers play a significant part in determining the top employees of McDonald’s eligible for company awards and recognition. Even the managers of McDonald’s restaurants are eligible to obtain a quarterly bonus based on the measures that are being estimated equally like the score of mystery shopper, efficiency and augmentation in sales. Motivation is essential for everybody and what better way than giving recognition to employees who have strived hard and given their best for the company over a period (Frey, Bayón & Totzek, 2013). Recognition of some would be an example for many to motivate them and follow their examples and work hard to gain their own. Customer service is an important factor for McDonald’s and its focus should always be on providing the best possible service to employees, both new and loyal.
Restaurant of the Year, Restaurant of the Quarter are some of the titles that is made eligible for both the franchises and the restaurants owned by companies (Aguinis, Joo & Gottfredson, 2013). McDonald’s motivation and recognition schemes boasts of rewards and recognitions like service awards, champion of the month, identifying service of employees and Ray Kroc Award for Business Managers. Recognition and rewards are those factors that create a healthy competition among the employees within an organization. The company believes in maintaining a balanced recognition scheme that is upgraded repeatedly, exploiting the employees’ motivation. McDonald’s believes in changing and regulating its recognition programs in a way that it attracts the employees. The last few years has seen the comprehension of employee of the month scheme of McDonald’s into its Olympic Champion Crew (OCC) submission, for which it acknowledged, ‘Most Motivational Benefits’ at the Employee Benefits Awards ceremony in 2013.
McDonald’s is a company that witnesses the process of recruitment all through the year. McDonald’s have been recruiting from both its internal and external sources, though to fill up its managerial and leadership positions it pushes in candidates from within the organization. It can be concluded that McDonald’s leaders are products of their own system, which is somewhat beneficial from the viewpoint of the company. It so happens that McDonald’s believes in shaping their own leaders from the start, which helps in reducing cost and process related to training. Such employees who are promoted to top positions internally take less or no time to adapt and get going, with reports suggesting that around 50% of its managers and leaders are from within the company. Those employees are well aware of the working procedure of the company the policies and regulations they abide by. McDonald’s has always had belief on its people and that is evident from the amount they invest on their human capital. The company has understood the principle of valuing the one that matters the most. McDonald’s organizational structure has been depicted to be a distinctive one with management stressing on five important strategy positions like price, place, people, products and promotion. Assessment of employees is apparent from the verity that McDonald’s endows $40 million in its training process, more fro people that are in the frontline crew.
McDonald’s implies various training programs for different factors like motivating its workforce to be customary, improving their job satisfaction and plummeting of labor turnover. Training programs are an essential part of any organization, and it should be held regularly to augment the skill factor of previous employees and helping them in surviving the effects of labor shortage. Technological aspects along with new equipments are other factors that McDonald’s should take into account in offering training to its employees.
The human resource planning and the goals of the organization have always been amalgamated and depicted to be McDonald’s Corporation’s important facade. For achieving the goals of the organization, it is imperative to recruit the right candidates and using them in proper manner to get the best out of them (Bradler et al., 2016). All the employees of McDonald’s play an important part in the operations of the company, upgrading their skills through proper training to be acquainted with latest technologies. Retaining employees who are of immense value would never be a problem if companies recruit the candidates who have the potential to perform in the long-run and be effective (Mountford, 2013). The main problem that crops up, if proper candidates are not taken in is this can lead to job disappointment, reduced efficiency level, high malingering level, dismissal, and replacement of employees.
McDonald’s need to evaluate and assess its position and forecast on the fact whether it does boast of candidates who have it in them to serve the organization in the long run. McDonald’s is a company that has provided recognition to employees those who have strived hard, shown dedication and enough motivation to perform in a way that is beneficial from the organization’s perspective (De Gieter & Hofmans, 2015). Admiration can come in assorted forms from managers saying a simple well done job to the appreciation that comes from every nook and corner of the organization like management leadership admiration and ‘Employee of the Month’ design. Rewards and benefits are at plenty in McDonald’s, which also includes competitive salary packages other benefits, related to performance to develop skill intensification. Employees of McDonald’s who are fully employed are qualified for benefits like Comprehensive Group Insurance plan offering insurances in dental and life (Paillé, 2013).
There are certain connections between the HRM concepts of McDonald’s and the motivation theories. According to Taylor’s scientific management theory, money has been concerned as single motivator. This theory is trying to resolve the ways of performing a task. It advocates pay by a “piece rate” technique on “fair day’s pay”. It implies that works put their best foot forward and perform better to receive bonus. this theory states that competitive wages are a part of the payment policy of McDonald’s, very similar to the method of piece rate in Taylor’s scientific management (ArunKumar, 2014). A simple equation of employees is that if they put in those extra hours of work and perform in a way desired by the company, they can achieve greater salary. However, for McDonald’s, wages is not the only motivating factor, it offers other things like flexible working hours, discounted meals and certain other fringe benefits to play the part of motivator (Rayton & Yalabik, 2014).
According to the Two-factor theory of Herzberg, factors that have the ability to motivate employees were classified into hygiene factors and motivators. For motivators it has always been the job related interest and the future prospects that provides employees with the required job satisfaction (Dias, 2016). Apart from the salary that the organization offers, job satisfaction is another feature that eases of the issue of retaining good caliber employees. Hygiene factors include the safe working environment that if not provided can often lead to employee dissatisfaction. McDonald’s have been using this theory to perfection. The rewards that their employees achieve from displaying great performances, and the chances that exists in the future development of themselves, works as a motivating factor for employees (Gursoy, Chi & Karadag, 2013). McDonald’s may sometimes try to motivate their employees by their work as an alternative of hygiene factors that includes the salary part.
According to Douglas McGregor, employees are divided into two completely different types: one being Theory X comprising of people who are selfish, does not like to work hard and needs to be monitored and controlled, the other being Theory Y that consists of people who enjoy their work, enjoys responsibility when motivated and have proper job knowledge (Mondy & Martocchio, 2016). There is certain difference between the people divided in segments of Theory X and Theory Y, motivated with the money that comes from performing a job or other needs. In case of Theory X the assumption is people are motivated only by the money factor, but for people in Theory Y it is something quite opposite (Talwar & Thakur, (2016). McDonald’s has always been able to attain the motivation of their workers produced from various factors exclusive of the wage aspect. Therefore, it can be concluded that McDonald’s are never encouraged to recruit or attract employees that fall in the category of Theory X. On the other hand, McDonald’s put enough importance on its flexible hours which is one of their important facet of HR policies.
However, several researchers have pointed out that recognition and rewards cannot be the only factor that provides job satisfaction to employees. The employees need to believe that the effort they would put in would actually lead them to be recognized and rewarded for the same (Allisey et al., 2014). McDonald’s employees view of the rewards and recognition schemes can be adversely affected if they do not consider those to be equitable. This might lead to downfall in the performance of employees. The expectancy theory states that employee performance and rewards are directly related with an increase in the number of rewards would in turn increase the efforts of employees along with their motivation (Martins, Rindova & Greenbaum, 2015). However, it can be pointed out that providing benefits related to money helps increasing extrinsic motivation. Extrinsic motivation takes care of rewards and compensatory benefits whereas intrinsic motivation is all about the work and the satisfaction it provides to its workers.
The pay and reward program of McDonald’s is based on the attitude of “pay for performance”. The belief of the company has always been on the fact that results need to be enhanced to achieve the objective of opportunities regarding pay. This program of McDonald’s generally takes in stuffs like short term incentives, basic pays, long term incentives and company car programs. These sort of rewards always helps in increasing the motivational factor of employees to perform better and take immense pleasure out of those benefits. However, it can be concluded that motivating employees is one of the toughest jobs in the world where employees might at times feel lethargic of performing the same tasks on a repeated basis (Shvetsova, 2016, October). Employee needs vary that keeps shifting its base under different circumstances, making it complicated for employers to fulfill all the demands of employees at single point of time (Shields et al., 2015).
Non-profit organizations need to focus on selecting both the volunteers and the staffs as both plays important role in the sustainability factor of the organization. Even non-profit organizations need trainings and recognitions for their employees so that they get motivation out of the work they perform. Non-profit seeking organizations are more into social work and the younger graduates are showing keen interest in joining these organizations and having a career out of it (Li et al., 2014). They believe that working in these organizations would earn them social recognition in life. Motives vary in case of profit-seeking organizations like McDonald’s and that of non-profit seeking organizations like Spastic Center. A manager working in a non-profit seeking organization needs to motivate its employees more in order to get the best out of them. The financial capability of non-profit seeking organizations is limited and restricted to an extent where Spastic Center can only spend $16500 other than the salaries, whereas, McDonald’s invests around $$0 million annually in its training programs for employees.
The case of volunteers is even more difficult to handle in case of non-profit seeking organizations, though volunteers have always been an essential part and plan of non-profit organizations. Harsh treatment is meted out to volunteers at times that can lead to adverse effects on other volunteers of the organization. No matter what organization is being focused on, an individual’s emotions should always have the value it deserves. At times the managers of non-profit organizations are not able to establish associations with the volunteers the way the organization would have liked which brings about its downfall. However, the same is not the case with may be a manager of a McDonald’s restaurant who values his employees or staffs the way they want it to be. Organizations like Spastic Center should clearly specify their employees and volunteers about the job role and requirements along with training and orientation. Spastic Center manages their progression towards employee benefits, employee compensation and policies. Organizations like Spastic Center have limited budget, affording either full time or part time help which at times seems a thing of luxury.
It can be concluded that organizations such as McDonald’s comprises of reward and recognition programs that have always motivated employees to better their performance. Employees grow with organizations they work in, and the career progression path of an organization helps employees to perform better in achieving their desired results. Every employee has a goal of their own and those goals only become viable if organizations provide them the required path towards success. HRM policies have always proved beneficial for McDonald’s that has led the company to achieve and grow. Organization like the non-profit Spastic Center have identified that retaining employees needs to be achieved through either good salary or the career progression. Non-profit organizations have started offering other fringe benefits to attract employees.
Reference:
Aguinis, H., Joo, H., & Gottfredson, R. K. (2013). What monetary rewards can and cannot do: How to show employees the money. Business Horizons, 56(2), 241-249.
Allisey, A. F., Noblet, A. J., Lamontagne, A. D., & Houdmont, J. (2014). Testing a model of officer intentions to quit: the mediating effects of job stress and job satisfaction. Criminal Justice and Behavior, 41(6), 751-771.
ArunKumar, S. (2014). An Empirical Study: Relationship between Employee Motivation, Satisfaction and Organizational Commitment. International Journal of Management and Business Research, 4(2), 81-93.
Bradler, C., Dur, R., Neckermann, S., & Non, A. (2016). Employee recognition and performance: A field experiment. Management Science, 62(11), 3085-3099.
De Gieter, S., & Hofmans, J. (2015). How reward satisfaction affects employees’ turnover intentions and performance: an individual differences approach. Human Resource Management Journal, 25(2), 200-216.
Dias, L. (2016). Human resource management. Human Resource Management.
Fallon, B. J., & Rice, S. M. (2015). Investment in staff development within an emergency services organisation: comparing future intention of volunteers and paid employees. The International Journal of Human Resource Management, 26(4), 485-500.
Frey, R. V., Bayón, T., & Totzek, D. (2013). How customer satisfaction affects employee satisfaction and retention in a professional services context. Journal of Service Research, 1094670513490236.
Gursoy, D., Chi, C. G. Q., & Karadag, E. (2013). Generational differences in work values and attitudes among frontline and service contact employees. International Journal of Hospitality Management, 32, 40-48.
Li, N., Barrick, M. R., Zimmerman, R. D., & Chiaburu, D. S. (2014). Retaining the productive employee: The role of personality. Academy of Management Annals, 8(1), 347-395.
Martins, L. L., Rindova, V. P., & Greenbaum, B. E. (2015). Unlocking the hidden value of concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship Journal, 9(1), 99-117.
McCloskey, D. J., McDonald, M. A., & Cook, J. (2013). Community engagement: definitions and organizing concepts from the literature.
Mondy, R., & Martocchio, J. J. (2016). Human resource management. Human Resource Management, Global Edition.
Mountford, H. (2013). I’ll take care of you: the use of supportive work practices to retain older workers. Asia Pacific Journal of Human Resources, 51(3), 272-291.
Paillé, P. (2013). Organizational citizenship behaviour and employee retention: how important are turnover cognitions?. The International Journal of Human Resource Management, 24(4), 768-790.
Rayton, B. A., & Yalabik, Z. Y. (2014). Work engagement, psychological contract breach and job satisfaction. The International Journal of Human Resource Management, 25(17), 2382-2400.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., … & Plimmer, G. (2015). Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.
Shvetsova, O. A. (2016, October). Staff loyalty formation as a management tool in international business. In Quality Management, Transport and Information Security, Information Technologies (IT&MQ&IS), IEEE Conference on (pp. 211-215). IEEE.
Talwar, E., & Thakur, M. (2016). Training and Development and its Impact on Employee Performance. We’Ken-International Journal of Basic and Applied Sciences, 1(1), 18-27.
Wilkinson, A., & Johnstone, S. (Eds.). (2016). Encyclopedia of human resource management. Edward Elgar Publishing.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download