Discuss about the Personal and Professional Development for McDonald.
It is essential for the company or a business to provide benefits in terms of financial and non financial over and above the salaries provided to the employees. The provision of rewards to employees on the basis of their performance on the job results in increasing their motivation level in the organization. This results in increased overall productivity of the company. Companies should bring transparency in their business operations and provide clear information regarding different policies and programs to employees. This helps in improving their performance at the workplace (Terera and Ngirande, 2014). The thesis statement for the essay is ‘whether provision of rewards results in attracting and retaining talent in the organization.’
The company recruit young people as a crew member so that they gain knowledge and skills to perform the job. This company has adopted job rotation method in which the employees are transferred from one department to other department so that they have the knowledge regarding all the functions performed by the company. This shows that the employees have relevant experience and understanding about the goal of the business. This method also helps in developing and upgrading new and existing skills among the employees which in turn helps them to become future leaders of the company. The company believes in succession planning and help employees to come up the ladder by developing the skills required at the next level in the organization (Rhoades and Eisenberger, 2002).
This organization provides huge opportunities to its employees for the purpose of career development. This results in retention of the employees in the organization. Mc Donald’s believes in providing high quality customer service by providing standardized quality products at their stores by making investments in human resources of the organization. This helps in achieving high returns on investment by the company. It also makes investment in training and development programs conducted in regular intervals in the organization for the purpose of developing the required skills among its employees in order to get operational excellence in the organization (Ramlall, 2004).
The company invests heavily in the training and development programs for the purpose of providing standard quality products to its customers. This results in increasing the customer base of the company and has a significant impact on its top and bottom line. Majority of the investments related to training and development is done for the frontline crew as these employees have a direct contact with the customers who are considered as the main stakeholders of the company. In addition to this, proper examination is conducted for the review of the succession plans in a timely manner in order to attain high performance by its employees in the organization. In addition to this, for the purpose of motivating employees to perform better, they are provided recognition as the best employee of the month or year and their names are published in monthly staff magazine named as WRAPT and awarded by a gift or discount card (Allen, Shore and Griffeth, 2003).
Such practices facilitates in increasing the satisfaction level of the employees in the organization. This in turn results in an increase in the level of commitment among the employees in the organization. In order to provide recognition to its high performing employees, the company conducts formal annual events and development programs at store and corporate level which helps in enhancing the motivation level of the employees in the organization. Such activities helps in increasing the loyalty of the employees towards the organization (Tymon, Stumpf and Doh, 2010).
In addition to this, the company adheres to the structured approach towards the remuneration for the purpose of making objective and sound decisions related to the pay. It also results in maintaining equity between different roles and consider that individual employees have a better understanding of their total pay package. The company is able to engage its employees in the operations with developing necessary skills required to perform the job in a well manner (Karatepe, 2013).
Increase in competition regarding scarce skills, the retention and attraction of quality employees is considered as the biggest challenge in the human resource management in the organization. This results in increased turnover rate in the organization. It is essential for the organizations to engage its employees in the decision making process along with the provision of the monetary rewards to them as it facilitates in building a feeling of sense of belongingness among the employees in the organization (Chew, 2005).
It is important for the employers to treat their employees as valuable for the purpose of reducing employee turnover in the organization. Increased turnover of the employees in the organization results in increasing the cost of recruiting new employees and providing training to them for the purpose of development of the necessary skills required to perform the job in a well manner. Increased in employee turnover has a significant negative impact on the overall production and performance of the organization. It is important for the organizations to develop efficient reward system that helps in fulfilling the individual needs of the employees in a better manner in order to increase the motivation level of the employees in the organization (Kelley, Blackman, and Hurst, 2007).
This also results in increasing the satisfaction level of the employees in the organization. Besides this, another factor that hinders the employee retention in the organization is the presence of competition in the industry of providing increased salaries by their competitors to the available skilled human resources. It is requisite for the organization to match with the salaries offered by the organization. It is also required for the organization to predict the needs of the employees in a well manner and provide effective rewards to them in order to fulfill their needs in a well manner. It is essential for the organization to implement effective rreward system in thew organization for the purpose of increasing their commitment level and retaining them in the organization for long time. Provision of effective rewards to the employees helps them to gain a social status in the society and helps in fulfilling their material needs (Urrabazo, 2006).
The best suitable human resource theory related to motivation and pay structure for Mc Donald is expectancy theory. Expectancy theory states that the potential candidates and employees are attracted towards the company which provide equitable rewards as per the performance of the employee at the job. It is necessary for the company to fulfill the expectations of employees at the job which helps in increasing the level of motivation of the employees at the work place. As per this theory performance of the employees at the workplace is influenced by several factors such as the capability to perform the task, clear information related to the roles and responsibilities to be performed at a given job position and availability of required resources and support for performing the job in the organization (Glen, 2006).
The high motivation at the job performance can be achieved by providing rewards to the employees. Besides this, this can also be achieved by providing rewards to the employees for their behavior at the work place. There is an increase in the satisfaction level of employees towards the job if they are able to achieve equitable rewards at the work place. The monetary incentives or rewards help in increasing the extrinsic motivation of the employees in the organization. The intrinsic motivation of the employees can be increased by the way of the interest of the employees to work in the organization (Holland, Sheehan and Cieri, 2007).
Provision of monetary incentives or rewards may result in reducing the intrinsic motivation of the employees in the organization. It is regarded as monetary rewards are not the only way to motivate the behavior of employees. In addition to this, problems related to motivation of the employees cannot be answered only by monetary rewards. In addition to this, there is also a requirement of providing safe and healthy work environment to the employees. In case of Mc Donald, the company provides monetary rewards to its employees for motivating them to become high performers at the stores (Scott, 2012).
In addition to monetary rewards, the company also provide recognition to its employees by publishing their names in the staff magazine. Besides the monetary rewards, the company also provides training to its employees which results in building and upgrading the existing and new skills in the employees which results in increasing the intrinsic motivation level of the organization. This method helps in generating interest among the crew members to perform well in the organization and helps in retaining the talent in the organization (Tsui and Lai, 2009). Along with this, the employees of the Mc Donald are highly motivated as the up gradation of the skills in the employees helps them to perform the task in a well manner. In addition to this, the company also provides equitable monetary compensation to its employees and ensures that the employees have clearly understood their pay structure in a well manner. Besides this, these practices help in generating team spirit among the employees of the organization (Ready, Hill and Conger, 2008).
Not for profit organization such as Spastic Centre has used salary packaging method for the purpose of attracting and retaining talent in the organization. In this method, along with monetary compensation, the company also provides other benefits to its employees in order to fulfill their needs (Bussin, 2014). This helps employees to exercise their power in the organization to take quick decisions which helps in increasing their productivity in the organization. Yes, the approach used by Mc Donald for the management of human resources is also applicable to Spastic Centre. The company provides different benefits to its employees along with the salary such as laptops, novated leases, superannuation contributions to employers, PDAs for the purpose of attracting employees towards the organization (Hughes and Rog, 2008).
In addition to this, the company also caters to the basic needs of the employees by providing them facility related to food and drink, child care centre, gym and licensed restaurant at the campus. The Spastic Centre provides $16500 in a year for the expenses other than the salary to its employees which facilitates in retaining the talent in the organization. In order to reduce the employee turnover in the organization the company provides market rates compared to other NGOs in the country (Baker, 2014). The approach is not directly applicable to the not for profit organization as the company does not provide training to its employees for the purpose of developing and upgrading the skills of the employees which inhibit the intrinsic motivation level of the employees in the organization. It is requisite for the organization to provide training to employees related to the necessary skills need by them. This results in increasing their performance at the job and also increases their level of commitment towards the job and the organization (Vaiman, Scullion and Collings, 2012).
Conclusion
It can be concluded that rewards are the significant factor that helps in attracting and retaining talent in the organization. It can be concluded that Mc Donald make heavy investments in training and development of the employees in order to develop necessary skills in them which helps them to carry out their tasks in an effective manner. Besides this, the company also provide financial rewards to them in order to increase their motivation level to perform well in the organization. This in turn results in increased satisfaction level of the customers in the organization. Besides this, the not for profit organization has also used the approach used by Mc Donald for attracting and retaining talent in the organization. Thus the thesis statement can be restated as provision of rewards have a significant impact on attracting and retaining talent in the organization.’
References
Allen, D.G., Shore, L.M. and Griffeth, R.W. 2003. The role of perceived organizational support and supportive human resource practices in the turnover process. Journal of Management 29(1), pp. 99-118.
Baker, T. 2014. Attracting and Retaining Talent: Becoming an Employer of Choice. Springer.
Bussin, M. 2014. Remuneration and Talent Management: Strategic compensation approaches for attracting, retaining and engaging talent. Knowres Publishing.
Chew, Y.T. 2005. Achieving Organisational Prosperity through Employee Motivation and Retention: A Comparative Study of Strategic HRM Practices in Malaysian Institutions. Research and Practice in Human Resource Management 13(2), pp. 87-104.
Glen, C. 2006. Key skills retention and motivation: the war for talent still rages and retention is the high ground. Industrial and Commercial Training 38(1), pp.37-45.
Holland, P., Sheehan, C. and Cieri, D.H. 2007. Attracting and retaining talent: Exploring human resources development trends in Australia. Human Resource Development International 10(3), pp.247-262.
Hughes, J.C. and Rog, E., 2008. Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organizations. International Journal of Contemporary Hospitality Management 20(7), pp.743-757.
Karatepe, O.M. 2013. High performance work practices and hotel employee performance: the mediation of work engagement. International Journal of Hospitality Management 32, pp. 132-140.
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Ramlall, S. 2004. A review of employee motivation theories and their implications for employee retention within organizations. The Journal of American Academy of Business, pp.52-63.
Ready, D.A., Hill, L.A. and Conger, J.A., 2008. Winning the race for talent in emerging markets. Harvard business review 86(11), pp.62-70.
Rhoades, L. and Eisenberger, R. 2002. Perceived organizational support: A review of the literature. Journal of Applied Psychology 87(4), pp.698-714.
Scott, D., 2012. Rentention of key talent and the role of rewards. WorldatWork Journal, pp. 58-70.
Terera, S.R. and Ngirande, H. 2014. The impact of rewards on job satisfaction and employee retention. Mediterranean Journal of Social Sciences 5(1), pp. 481-487.
Tsui, A.P.Y. and Lai, K.T. 2009. Professional Practices of Human Resource Management in Hong Kong: Linking HRM to Organizational Success. Hong Kong University Press.
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