Discuss about the Starbucks Human Resource Management.
In present scenario, organizations are taking use of effective recognition programs and employee welfare policies increasing the retention rate of the employees. The effective human resource management is the key to organizational success (Atambo, et al., 2012). The essay will emphasize over one of the globally recognized organization, McDonald’s and its recognition scheme and programs. The employees always want to work at such an organization where they can achieve their individual goals too (Choudhary, 2011). The employee development trainings help the employees in developing their skills and competencies. The rewards are the motivators which make the employees work harder and with increased effectiveness as well as efficiency (Njanja, et al., 2013).
Salary packaging is one the recognized aspect of rewards and recognitions. McDonald’s is recognized as one of the best place to work at for the individuals as the organization offer extensive opportunities to its employees. One of the opportunities is the high salary package; this monetary incentive helps the organization to retain its employees for a longer time period. In comparison with other hotel industries or fast food chains McDonald’s provide much high employee compensations (Brun and Dugas, 2008). McDonald’s is one of the world recognized organization for incorporating and implementing the best recognition and benefit scheme for its employees. McDonald’s have several elements in its recognition scheme which acts as the motivator for all the employees. It has been highly ensured by the company that all its business strategies completely aligned with its reward and recognition programs. In the year 2012, McDonald’s received an Employee Benefits Award for its continuous and highly potential employee benefit programs and schemes. The rewards and pay program of McDonald’s works over a philosophy known as “pay for performance”. In this approach the employees are getting increasing high pay opportunities with their continuous better results (Crawford, 2015). All the employees get a base pay which is the fixed pay amount which the workers get against their daily work at McDonald’s. This base pay is comparatively high then the pay the workers receive at other various restaurant chains of several other brands. Other than the base pay, the next benefit in the remuneration scheme is the short-term benefits. These are the benefits which the organization pays to its employees on an annual basis as per the employees’ performance. The next benefit is the long term incentives, these benefits include various benefits such as LTI stock (McDonald’s, 2017). These benefits are provided to the eligible employees who are beneficial for the organization in a longer time frame. These employees have a sustainable employment with McDonalds.
There are McDonald’s recognition programs which are majorly designed in such a way that they recognize and reward the vibrant performers. There are two major awards given by the company. The first is the Circle of Excellence Award, in this the top teams of the organizations are recognize for their potential contributions in the vision advancement of McDonald’s. The second is the President’s Award; in this the top one percent of the overall performers across the world is recognized for their efficient performance. There is one specific program of the company named the company car program, in this program the eligible employees are offered with a car from organization’s side which can be used by the employees for both personal as well as business use. The cost of repair, maintenance and insurance are covered under the program only (Shahid and Azhar, 2013).
The culture of McDonald’s has its focus upon the development of the human resource and its efficiency. The organizational culture of McDonald’s is highly people-centric, laid emphasis upon inclusion, diversity, organizational learning and individual learning. It is the culture which promotes the development of the employees of McDonald’s. The recognition scheme extremely supports the culture of McDonald’s as the scheme is framed and developed in such a manner that the primary emphasis in the recognition scheme is laid over the growth of the workers in the utmost possible way (SAMPLE, n.d.). The incentives provided in the recognition have a direct connection with the cultural aspects of the company. There are several initiatives taken by the company to promote business effectiveness, quality and productivity. These initiatives are in the form of rewards and recognitions offered to the employees (Kwenin, Muathe and Nzulwa, 2013). The greater the employment welfare takes place the higher is the organizational learning which is one of the elements of McDonald’s culture. Thus it can be clearly analyzed that the recognition scheme supports the culture of the company (Billett, 2005).
McDonald’s provide extensive opportunities to the employees to become future leaders and attain high growth and development. The various benefits and employee welfare programs attract the individuals to be a part of the organization as well as help them to be a part of the organization for a longer time frame (Selden, n.d.). The greater benefits increase the engagement of the employees with the organization and its functions (Saks, 2006). The potential and effective recognition scheme attracts the employees as they find several opportunities in the company which can help them in becoming future leaders (Mone, et al., 2011). McDonald’s have various programs in which it give a chance to its existing employees to become mangers and promote on several other higher authoritative positions. Thus the future leaders are fascinated by the incentive programs and recognition scheme of McDonald’s (Werhane and Mead, n.d.).
The social as well as organizational recognition is use by the higher authorities as the rewards. The employee recognition helps in achieving higher employee involvement and engagement with the organizational (Danish and Usman, 2010). There are several theories which laid emphasis over the significance of employee recognition; employee motivation and employee benefit programs. The theories explain the linkage between the employee recognition and the organizational success (Manzoor, 2012). There is one theory which supports the recognition program of McDonald’s is the reinforcement theory. This theory of reinforcement explains that a response of a recognition program or reward is very much likely to persist in future (Uzonna, 2013). The effects of the compensation management is that whenever the employees’ performance is the result of the monetary rewards then in the upcoming future it will remain continue. As well as the less recognition or the less reward will result into decreased performance in the coming time frame (Renwick, 2003). The theory of reinforcement focuses upon the vitality of an individual experiencing the recognition. Another theory which relates to and supports the recognition program of McDonald’s is the expectancy theory. This theory emphasize upon the connectivity between the behaviors and the rewards (Skinner, 2014). While the main focus is upon the expected rewards and recognitions rather than the experience a reward. The expectancy theory and the reinforcement theory both have a common factor in between i.e. motivation (Shields, et al., 2015). The employees get motivated when they expect rewards against their work and they successfully achieve these rewards and recognitions. But the expected theory is more related with the trainings and the job design rather than the pays and monetary benefits. The employees of McDonald have also provided higher recognition in terms of authorities. Thus the expectancy theory supports the McDonald’s recognition programs (Armstrong and Taylor, 2014).
The next theory is the equity theory. This theory explains that the employees always develop perceptions regarding what all they have achieved from the organization in terms of rewards and recognitions in comparison with what all contributions they have made in the success of the organization (Breevaart, et al., 2014). These ratios of contribution-return are compared with other employees both externally and internally (King and Grace, 2010). The results of comparison helps the employees in determining that whether they are getting adequate rewards as well as they try to analyze their employment association. The perceptions of the employees are extremely vital as if they found equity in their rewards and employment relationship then there are in increased chances of higher employee engagement and greater productivity (Kim, 2006). On the other hand, if the employees found inequity then they get detached from the organization which results into employee turnover and lack of employee engagement. Agency theory is another theory which supports the recognition program of McDonald’s. This theory mainly focuses upon the different goals and interest of the organizations and its stakeholders as well as the manner in which the employee compensation and recognition is used to support these goals and interests (Nyberg, et al., 2010). There are diverse goals for the employee, the manager and the organization. Thus it is necessary to align these interests of all these groups (Samuel and Chipunza, 009). The employee compensation helps in forming this alignment. The more aligned the interest and goals are the higher are the chances of organizational and employee development (Presslee, Vance and Webb, 2013). Thus it is analyzed that the organization must develop such strategies which can help in attainment of the individual and organizational goals together. All these theories are linked with a common factor that is motivation. If the organizations have effective employment benefit programs and potential recognition scheme then there is increased motivation of the employees. They tend to deliver their best and strive hard to achieve the organizational objectives (Islam and Zaki Hj. Ismail, 2008). McDonald’s provide most beneficial recognition plans and programs to its employees which regard the organization as one of the best place to work at (Herzberg, Mausner and Snyderman, 2011).
Spastic Centre is a world recognized not-for profit organization which works with a primary aim of supporting adults as well as children with cerebral palsy. In the year 1945, this organization was established with the efforts of a group of parents run by Audrie McLeod and Neil. The reason of establishment of this organization was that their daughter was also one of the individual experiencing cerebral palsy. Earlier the organization was recognized by the name ‘Spastic Centre’ but later on because of extensive negative connotations they changes the name of the organizations and it was then recognized as Cerebral Palsy Alliance (GLENDiNNING, 1982). The organization offers several services such as support, equipment, programs for life skills and therapies to the people suffering from cerebral palsy and their associated families. The objective of the organization is to enhance the community participation of the people with cerebral palsy. The employees of the organization working within the disability department are provided with several trainings of professional development.
The employees working at CPA have their high involvement in the uplifting the status and social engagement of the people with cerebral palsy. There is a recognition scheme initiated by the organization named, ‘make a difference peer awards’. In this scheme, the employees of CPA are provided with an opportunity to reward, recognize and acknowledge the individual contributions of the peer and colleagues in areas such as innovations and service excellence (Bond, 2014). The achievements and acknowledgements of the employees are celebrated and recognized by several means of appreciation. The organization not only helps the people suffering from disability but also provide several career opportunities to the employees. These opportunities help them to attain growth and success in their individual careers. The various trainings provided to the employees related to personal development of the employees help them in developing their individual confidence, competence and skills. The registered training organizations provide trainings to the employees which ultimately helps in achieving success in their work and career. There are also scholarships programs offered to the employees such as an award prize of $1,500 is provided to all the students of CPA who successfully complete the final clinical placement (Herbert, et al., 2016).
It has been analyzed that the McDonald’s approach to managing human resources is directly applicable in CPA as in McDonald’s the employees get the best employment benefit programs and recognition being a private and business organization. The way by which McDonald’s mange its human resource is highly efficient which encourages employees to work hard and give their best in attainment of the organizational objectives. Thus it is moreover necessary that the not-for profit organizations must change their employee benefit programs and the recognition schemes (Grawitch, et al., 2009). If the employee will get the adequate benefits and incentives then it will encourage the workers to work harder and achieve the organizational aims (Evans and Kersh, 2004). Employees working in voluntary organizations or the not-for profit organizations usually switch to other companies because of the reason that they do not get much benefits and recognitions which they can get in other organizations (Van Puyvelde, et al., 2012). The work performed by the employees in the not-for profit organizations are of much higher responsibility and effectiveness (Hansen, Smith and Hansen, 2002). Hence it is essential that to retain them there must be initiatives taken up by the not-for profit organizations so that the employees can be retained. The organizations spend a lot of money as well as time in providing adequate trainings to the employees but due to less effective benefit and recognition programs the employee turnover is high and the cost of trainings also get waste (Galbreath, 2010). To achieve longer term sustainability as well as high retention rate of the employees it is vital that these organizations must follow the footstep of McDonalds as it provides the best employment benefit programs (Blesch, 2013).
Conclusion
From this essay it can be conclude that there is extreme importance of the effective recognition programs in the development of the organizations. The recognition programs help the organization in retaining the employees and avoid switching off the employees to other competitive organizations (Markos and Sridevi, 2010). It has been analyzed that McDonald’s is one of the globally recognized organization for providing its employees with the best recognitions programs. The employees are highly satisfied with the work culture of the organization which leads to high employee engagement. It has been evaluated that there are several theories which supports the recognition scheme of McDonald’s such as reinforcement theory, equity theory, agency theory etc. The approach of human resource management of McDonald’s is directly linked with not-for profit organizations as in those organizations there is a must need of these recognitions and rewards so that the employees can deliver the best possible productivity. Thus from the overall report it can be conclude that the organizations must take use of the effective recognition programs for retaining their employees and maintaining a string brand image in the market.
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