Discuss about the Managing Human Resources for Customer Based Brand Equity.
The paper focuses on the managing the human resources of McDonald. The main purpose of the essay is to develop the skills of HRM theories and models that is related to the attraction and retention of employees. Various theories that support the recognition scheme of McDonalds are discussed in brief. It finds out if the approaches can be applied to a not for profit organization like Spastic Centre. The organizational structure of McDonald refers to the value, tradition and habits, which can influence the behaviour of the employees. For this strong organizational culture McDonald became the most powerful business in Australia.
Key words: human resources, McDonald, salary package, recognition scheme
McDonald is a renowned company in Australia, which has the largest employers and approximately 75,000 people. The culture of McDonald is very strong for the future leaders so that they can develop themselves. The main purpose of the essay is to develop the skills of HRM theories and models that is related to the attraction and retention of employees. This also includes the performance management, career progression and typical business analysis.
The assignment focuses on the recognition scheme that supports the culture of McDonald and attracts the future leaders. Various theories that support the recognition scheme of McDonalds are discussed in brief. The assignment also tries to find out the approaches of McDonald to manage the human resources. It finds out if the approaches can be applied to a non profit organization like Spastic Centre.
McDonald may have two recognition schemes that support the culture of McDonald and also attract the future leaders. The first scheme is retaining talent with the salary packaging and the second one is staff appreciation with the recognition scheme.
The retaining talent with salary packaging can support the culture of McDonald as the main purpose of the company is to attract employees and customers. The organizational structure of McDonald refers to the value, tradition and habits, which can influence the behaviour of the employees. According to Collings (2014), it is important for an organization to encourage the employees so that they can various things from the organizational culture. However, the organizational culture of McDonald encourages the employees in learning. For this strong organizational culture McDonald became the most powerful business in Australia. The retaining talent with the salary packaging will help the employers to motivate the employees and will provide a chance to find out the suitable talent. However, Ndede-Amadi, Snead and Johnson (2015) argued that retaining talent with the salary packaging can have negative impact also. This may motivate the employees but can create discrimination. Retaining talent with the salary packaging can attract more employees and future leaders so that they can extend their business worldwide.
The main goal of McDonald is to priorities the needs and improvement of the employees who work in McDonald (McDonald’s Australia. 2017). Therefore, the scheme will help the organization to fulfil their needs and motivate them to improve themselves. Strohmeier (2014) mentioned that awarding system always motivate the employees, which help to increase the productivity. McDonald can include various offers in the retaining talent with the salary packaging. As McDonald has staffs of teenage who works to continue their studies and maintain other needs of life, therefore the scheme will attract them and will retain the talented employees. Taylor (2014) opined that this scheme can improve the organizational culture of McDonald. However, the management of McDonald should provide the scheme to the efficient employees and leaders only. The scheme can help to achieve the goals of the employees that will develop the organizational culture. The business quality can be developed by the scheme of retaining talent with the salary packaging (Pepper & Gore, 2015). The employees always deserve rewards for their good works and this is the best way to respect their efforts.
Staff appreciation with the recognition scheme is necessary for the organization. This helps the management of McDonalds to identify the efficient employees and leaders of the company that will be provided the recognition scheme. McDonald can arrange annual award ceremony program where the employees will be awarded. The employees will be given annual bonus or incentive. Employees deserve appreciation for their goods works and appreciation always motivates the employees. This will help to find out the talented future leaders and employees who have the ability to lead the company. The annual ceremony will help to show the talent of the efficient employees to others that will encourage others also. The nomination may include outstanding customer service, outstanding team and outstanding leadership.
As McDonald finds a strong way to maintain their culture of price, product, people, place and promotion, therefore the recognition scheme can help to improve the 5-Ps of McDonald. Nadolny and Ryan (2015) mention that recognition policy helps to develop the HRM of a company and therefore the productivity and reputation. As McDonald focuses on their employees and recognition scheme influences the team spirit therefore the scheme is suitable for the organization. However, the recognition scheme of McDonald is much popular and efficient as well as their HRM policies. This awarding program efficiently pulls up various talented employees as the future leaders. Zarkada-Fraser and Fraser (2015) mentioned that the strong HRM policy and such recognition schemes make McDonald successful and helps to retain their market position. On the other hand Thornton et al., (2016) argued that McDonald needs to develop the organizational policies and schemes for future to make the comparative advantage. In this way the recognition schemes can support the culture of McDonald and attract the future leaders.
The expectancy theory supports the recognition scheme of McDonald. According to Yuen and Cheng (2015), the expectancy theory refers to the behaviour of an individual in a specific way. This is because the employees are motivated to choose the particular behaviour over existing behaviour that they expect. Expectancy theory shows the attractiveness of jobs. This includes the valance, expectancy and instrumentality. Valance is the desirability of reward to a particular person. Expectancy is the belief that the efforts of the employee will affect the performance. Instrumentality is the performance of the employee that is perceived as the reward security. The theory explains the job performance at the workplace with regards to the expectation of employees in the workplace. Ernst (2014) mentioned the efficient people of a workplace deserve the reward on the basis of their expectation and behaviour or job performance. In McDonald, the efficient people try to give their best performance that made a huge change in the workplace. However, Nadolny and Ryan (2015) argued that there are three factors that can influence the successful performance of employees. These include the ability of the employees to perform to the desired standard, perception of employees’ role and required organizational resources. Organizational resources support the employees’ performance and their job role. McDonald provides a friendly environment to their employees so that they can work freely and develop their job performance.
In view of, the good performance should be motivated and rewarded, which the employees expect. In case of McDonald, they can motivate their employees by the giving money as a reward. Tis can include profit sharing, bonus and stock option. Rose (2014) stated that the expectancy theory is the motivation of the employees that is an outcome of the need of reward of the employees. The factor of effort level dependency of individuals is effort to the performance expectancy, outcome valance and performance to the outcome expectancy. All the three factors help to motivate the employees to work hard and get the incentive as a reward. Ernst (2014) opined that the employees should have positive attitude towards their works that will help them in self motivation. The expectancy theory has various interests, which is based on the self interest and the expectation of the employees who wants maximum satisfaction and minimizes the dissatisfaction. This theory focuses on the psychological development of the employees and therefore motivates the employees. The rewards will encourage the job performance but not the job satisfaction. Job satisfaction depends on the ranges of the belief of employees that if the reward is proper according to their performance. The management of McDonald needs to check that if the reward system is meeting the job satisfaction or not.
Expectancy theory indicates that increased rate of rewards is linked with the performance and motivates the job performance and job satisfaction. Collings (2014) argued that monetary rewards not only raise the extrinsic motivation but also decrease the intrinsic motivation. Extrinsic motivation is the motivation that is gained by the external rewards line money, grades, praise and fame (Pepper & Gore, 2015). In some cases the external motivation cannot motivate the employees much. On the other hand, the intrinsic motivation refers to the self motivation that an employee gets form self motivation. In this type of motivation, the employee enjoys his or her workman therefore; the employee gets performance rewards with the job satisfaction. In case of McDonald, the employees need intrinsic motivation as they need the job satisfaction with the rewards. Ndede-Amadi, Snead and Johnson (2015) mentioned that the monetary incentives can spoil the intrinsic motivation therefore, the employees lost interest in their jobs. Op de Beeck, Wynen and Hondeghem (2016) argued that the monetary incentives affect in very low amount in the workplace settings. In case of workplace, money plays a strong role to motivate the employees. McDonald needs to provide money as incentives or bonus to the employees to motivate them. However, money always cannot motivate the employees so the management needs to appreciate the employees for their good works. The employees also can be included in the organizational development, which can be another motivational factor for the employees. This can make the employees realise their roles and responsibilities of employees. They can also promote their employees for the severe good performance.
The approach of McDonald to manage the human resources can be directly applicable in a not for profit organization like Spastic Centre. The service of McDonald is less than one percent of the population of world. The brand image, experienced HR management, strong operational system, unique international infrastructure and high quality foods made McDonald the best brand of the World. The key point of the success is the best quality management of McDonald. They provide varieties of foods to their customers and therefore gain the customer satisfaction. They apply innovative ideas and technology in their management system. The HR management of McDonalds tries to balance the employees and employers relationship and creates a strong bonding with the customers (Anselmsson et al., 2016). They try to satisfy their internal customers as this is the key step to reach to the external customers. The HR department has various responsibilities and activities to perform. They select and recruit the employees. If the employees need any kind of training, they arrange training session for the development of the employees. They always look for the benefits of the employees and give incentives to the efficient employees. They look after the health and safety issues of the employees and provide performance appraisal to the employees who deserve this. The mission statement of McDonald is that the employees need to worry about money rather they should focus on their performance and love their work.
Op de Beeck, Wynen and Hondeghem (2016) mentioned that in the retail sector, the customers should get the first priority. However, McDonald provides main priority to the customers. As a non profit organization, Spastic Centre also needs to focus on their customers and recruit efficient employees so that they can provide best quality work to their customers (spastic centre. 2017). As they work for the development of common people therefore they need to focus on the individual. The organization mainly provides the life skill programs, therapies and support to the people with cerebral palsy. This includes the babies, teenagers, children and adults. To develop the organizational performance, they can provide training to the employees who work for them. They raise funds for the people with cerebral palsy. They need to motivate their employees and make groups of efficient employees to promote their service. As McDonald, they need to gain the customer satisfaction to develop their position internationally. McDonald recruits people who are able to think and express themselves by learning new things. The growth of the performance of the employees promotes the growth of the company (Dundon & Wilkinson, 2014). The management of McDonald always look for the fresh candidates who want to work in the retail sectors. They provide training to the fresher candidates so that they can easily understand their responsibilities. They hire new employees on the basis of their merits and avoid the biasness like race, gender, age, nationality, religion and colour.
McDonald forecasts on the two models for the techniques. The models are transaction count per man hour and sales per man hour. They perform two types of recruitments like external and internal requirement. Internal requirement includes the job posting and external requirement involves the advertisement in the print media, advertisement on the websites, walk in interviews and internship programs (Marler & Fisher, 2013). Their advertisements are very attractive, which catch the customers mainly the children. Their selection process is also very innovative. After receiving huge application from the candidates, the HR manager short lists some application. After that, they arrange a written test for the applicants. This test decides the knowledge of the candidates in this field. Spastic Centre can also arrange written test for the candidates. After that thee selected candidates are called for the initial interview (Armstrong, 2014). After that the HR manager checks the references that the candidates provide, if the references are valid or not. If the references are valid then the selected then the candidates are called for the final interview. The interview process of McDonald involves five stages. The panel of the interviewers consists of five or six people. Spastic Centre can adopt this interview process to develop the organization.
McDonald needs to focus on the service differentiation strategy to maintain their position as the superior restaurant. Service differentiation strategy is the offer of superior service to the targeted right customer. For the development of the business, they need to provide training to the employees and make well planned training programs. This will help the organization to make profit and develop the business. Integrated promotion mix can be implemented by McDonald to balance the modern and traditional digital media for the promotion of the brand (Parry, Stavrou & Lazarova, 2013). They can provide various offers like additional staffs with the ordered staffs to attract more customers.
It can be concluded on the basis of the above discussion that McDonald has various scopes to develop and also can develop their HR Management to attract more customers and retain the number one position in the market. They need to motivate their employees so that they can develop their performance and gain the customer satisfaction. Their advertisements are very attractive, which catch the customers mainly the children. However, their recruitment procedure is very strong, which Spastic Centre, a non profit organization can apply to their organization for the development. McDonald recruits people who are able to think and express themselves by learning new things.
References
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