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Case Study McDonalds Corporation

Introduction

Global human resource management refers to the art of balancing people and processes in an organisation. This process involves recruitment, selection and training individuals at the management position in an organisation. In other words, global human resource management refers to the process that recruits candidates, offer efficient training, improve their skills and prepare them for their services according to the requirement of the organisation (Werner, Schuler, Jackson, 2012). The overall objective of effective recruitment and selection process is to make sure that an organisation is able to achieve its objectives and goals through its workforce. The main aim of this analysis is to systematically investigate the processes and practices associated to human resource in McDonalds Corporation. The human resource management at McDonalds Corporation aims at escalating its distribution network by implementing its global HRM strategies effectively, based on their professionals and resourcefulness to attain certain set objectives.

Importance of HRM Strategies

Human resource management strategies enable an organisation to retain skilled, talented and committed employees that it demands for. The process of recruitment involves application of effective and efficient strategies to assess and meet upcoming demands of an organisation and create a number of employment opportunities by making constant development in practices and policies. Attracting, hiring and retaining a talented workforce are one of the most important functions of HRM strategies (Bianca and Media, 2014). A good recruitment and selection human strategy has the potential to develop organisational performance by offering employees with wide and extended responsibilities, so that they successfully make proper use of their skills and abilities.

Examine HRM goals of employee commitment, flexibility, equality and strategic integration

It is the workforce in an organisation that is responsible for carrying out a number of a number of work activities. Managers and HR professionals of McDonalds Corporation perform the most crucial job of managing people so that they can successfully conduct these work activities. This demands perceiving people as human assets, not costs to the company. Perceiving employees as assets is part of global human resource management and global human capital management. The global human resource management team of McDonalds Corporation explains various effective strategies to the management team to strategically organise employees as business resource (Barrows and Powers, 2010). These strategies involves managing recruiting and hiring candidates, maintaining employee benefits and proposing employee training and improvement strategies. In such way, HR professionals perform as consultants, not workers in an isolated business environment as they recommend managers on many issues associated to employees and also help the organisation in attaining its objectives.

Managers and HR professionals of McDonalds Corporation work in coordination at all levels to develop required skills in employees of an organisation. For instance, HR professionals give advice to managers and other executives at the time of assigning various roles to employees in the organisation, thus helping the company adapt effectively to its environment. It has been observed that in a successful organisation, employees are assigned to various business processes based on employee preference and business priority. HR professionals also recommend strategies and policies for boosting employee commitment to the organisation. This commences with applying the recruiting practice or matching employees with the appropriate positions based on their qualification or experience (Grandori, 2002). Once recruited, employees need to be dedicated to their professions and feel motivated throughout the year by their managers. Global human resource management team facilitates an organisation in developing a competitive advantage, which involves creating the potential of the organisation so it can provide a dynamic set of products or services to its customers.

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Figure 1: Recruitment as a strategic HRM tool
(Source: Compton, Morrissey, Nankervis and Morrissey, 2009)

The chief and important goal of global human resource management in McDonalds Corporation is to make sure that all employees carry out their work processes well in order to fulfil the demands of the organisation. Moreover, the global HRM are accountable for utilising the full advantage of the potentials of the employees and keeping the right employees in the required job positions. Global HRM consist of a number of business schemes and policies required to manage the employees within a business organisation. The human resource management strategies of McDonalds Corporation mainly encompass the anticipations that managers demands from their employees, as well as the benefits and compensation given to the employees. Some of the main important business work done by human resource professionals are the selection of employees, employee training and the retention of desired employees.

The global HRM of McDonalds Corporation creates programs and policies designed to make sure that the performances of the workforce within the company supports the mission of the organisation. HR managers and supervisors investigate the aim of the goal and create policies and practices to manage the selection and improvement of the employees in organisations. Along with applying the policies and practices to attract and retain desired employees, the global human resource management analyse the most crucial job responsibilities based upon the objectives of the company and categorize job profiles, as well as the duty for each job profile. HR managers and professionals are responsible for managing the diversity in the business organisation. In the era of globalisation, majority of business organisations consist of candidates with different backgrounds, experience and qualifications. Human resource maintains employee objectives with the motive that differences in employees are valued and respected. Such types of issues are usually mentioned in employee personnel manuals, which may also involve other company formalities.

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Evaluate the effectiveness of HRM strategy in achieving these goals

An organisation is unable to establish a good team of working professionals in the absence of good human resources. The global human resource management advances the bottom line of an organisation with its wide knowledge about the human capital and organisational factors. The HR managers and other professionals of McDonalds Corporation have proficiency in HR strategic management involve in company decision-making focuses on current staffing assessments and plans for future employees based on business requirement. Realistic compensation frameworks are developed by HR compensation experts to decide company earnings competitive with other organisations in the area, in the similar industry or organisations competing for candidates with same skills. They carry widespread salary and wage surveys to preserve compensation costs aligned with the current financial status and set revenue of an organisation.

The global human resource management of McDonalds Corporation motivates the people in a business organisation, to perform according to their skill and offer them guidance that can assist them to bring about changes in it. This result in better communication with the workforce individually from time to time and offers all the required information associated with their processes and also describes their respective roles. Employee relations experts in HR assist the organisation attain high performance, confidence and satisfaction levels throughout the employees, by developing ways to fortify the employer-employee relationship. They conduct employee opinion surveys, administer focus group and receive worker opinion related with job satisfaction and practices the worker can maintain effective working relationships.

The main objective of human resource management of McDonalds Corporation is to achieve the organisational goals and objectives. It ensures the efficient and effective implementation of resources and guides the utilisation of human and non-human resources in order to achieve the organisational goals and objectives. Business organisations aspiring to consume their resources efficiently encourage the HR professionals and supervisors to develop required aims and objectives. Training program which is an essential part of recruitment and selection procedure proposes measures for enhancing employee commitment to the organisation. The HR professionals of McDonalds Corporation make sure that employees, after hiring, will remain committed to their jobs and feel motivated throughout the year by their seniors. The global human resource management of McDonalds Corporation aims at intensifying its distribution network by effectively implementing its HRM strategies, based on their professionals and resourcefulness to fulfil certain defined objectives. At the time of issues and disputes in an organisation, human resource strategies act as a consultant and mediator to solve those conflicts in a successful manner.

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In other words, HRM of McDonalds Corporation implements timely action and avoid things from getting bad. It has been seen that the art of building successful and good public relations depends on HRM to a large extent. The HRM department is responsible for organising business meetings, conferences, seminars and different official gatherings for the organisation with the motive of building relationships with other business organisations. Sometimes, the HRM also plays a crucial role in creating the marketing and other business plans for the organisations. Human resource training and development officers of McDonalds Corporation manage new employee orientation, an integral aspect in implementation of successful and effective employer-employee relationship. The human resource strategies implemented by these officers assist in providing training that aids the organisation’s fair employment schemes and employee development programs to develop aspiring employees for management and supervisory roles.

An organisation without an appropriate setup for human resource management is likely to suffer from severe issues while coordinating its daily work activities. HR experts and professionals adopt efficient measures in reducing the organisation’s costs related with abrasion, turnover and hiring replacement employees. They are vital to the organisation as they have the talent and skills essential to consult group benefit packages for workers, within the set budget and reliable with economic conditions. They also are well aware with employee benefits need to attract new employees and retain skilled employees. Human resource strategies of McDonalds Corporation ensure that the organisation works in accordance with federal state employment laws. This is the main reason that today a number of organisations need to put a lot of efforts and energy into establishing a strong and effective global human resource management.

Relationship between HRM and Organisational Performance

HRM and Organisational performance are inter related and are the most significant aspect of McDonalds Corporation. Organisational performance is associated with various factors such as operation, strategies, aims, management and challenges. It is considered as a fundamental and crucial component of an organization functioning. Organisation performance is typically organisational behaviour and development occurring in an organisation both internally and externally. The McDonald’s Corporation is one of the famous fast food chains in the world, and it is an important part of the life of a number of people of all age groups. The iconic American restaurant has been implementing various techniques and human resource strategies for encouraging employees and teaching leadership techniques and skills. All these factors in McDonalds have provided an excellent opportunity to the management to hire a number of desired and talented employees.

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Theories related to HRM and Organisational Performance (diagram)

It has been observed that employees in the McDonald’s Corporation exhibit quality leadership as HR managers and professionals of the company adopt significant measures to influence and motivate employees. The work culture of the company is basically dependent on the specific line manager in charge at a specific period of time. The HR professionals of the company use effective leadership skills to encourage young or inexperienced workers. These HR professionals and experts successfully conduct business operations in a machine like manner, specifically at the time of high business. Nevertheless, it has been also experience that lot of business managers of the company seem comfortable, and sometimes, behave in the same manner like other employees of the company. The business managers of the company apply a number of leadership theories in their working style. In the McDonalds Corporation, human resource managers and professionals applied Situation Leadership Theory (SLT) and Path-Goal to motivate the working pattern of employees.

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(Source: https://www.mc.edu/rotc/files/9213/1471/9571/MSL_202_L09b_Situational_Leadership.pdf )

Situation Leadership Theory (SLT):

Situation Leadership Theory (SLT) is implemented continually by human resource managers to fulfil the necessary requirements of employees in the organisation, based on the specific situation (Wagner, 2006). Through the implementation of SLT, managers of the company work to introduce changes and innovations in their recruiting and selection process and do not motivate employees to follow managers’ style rather encourage them to introduce their own style. SLT focuses mainly on two types of organisational behaviour in an organisation; Task behaviour and Relationship behaviour.

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Figure 2: Situational Leadership Model
(Source:
https://www.kenblanchard.com/getattachment/Solutions/By-Offering/Situational-Leadership-Development/Situational-Leadership-II/The-SLII-Experience-Sample-PW.pdf )

According to this theory business environment and the willingness of employees determine to a great extent, how managers will perform in specific situations. The human resource managers by determining the relationship between environment and the willingness and inspiration of employees, can strengthen the leadership skills, achieve experience and self-esteem in their own leadership style. This theory typically relies on the ways employees respond to working and being associated in groups. As per the modern theories of situational leadership proposed by P. Hersey, K.H. Blanchard, and D.E. Johnson, employees cannot be influenced by a one single way (Situational Leadership, n.d). These theories suggest that the leadership style selected by human resource managers of McDonalds Corporation depends on the environment and the willingness or the capability of employees working in an organisation.

Path-Goal Theory

This theory was created to define the way that leaders motivate and assist their employees in attaining the objectives they have been set by offering the path that seems clear and easy. Path-Goal Theory is used by human resource managers of the McDonalds Corporation to motivate their subordinates and HR executives. This theory is applied by managers or leaders of the company to encourage and motivate employees by following leadership styles and behaviour of their leaders. This theory states that the behaviour of leaders is followed by employees of the company as they perceive it as a source of inspiration, motivation and job satisfaction. This theory also states that the perception of employees is influenced by the behaviour and leadership styles of leaders or managers of the company. The McDonald’s Corporation applied this theory to motivate employees to perform well as it offers many opportunities, such as promotion, incentive, and paid holidays, to enhance job satisfaction and motivation.

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(Source: https://www.managementstudyguide.com/images/houses-path-goal-theory.gif )

In the area of organisational performance and human resource management, the path-goal theory determines the impact of behaviour of leaders on employee’s job satisfaction, motivation and effectiveness. This theory consists of four leadership behaviours which are supportive leadership, directive leadership, participative leadership and achievement-oriented leadership. The aim behind these leadership behaviours is to enhance employee motivation and confidence by identifying the influence of both environmental factors and employee characteristics in work activities. Moreover, this theory states that achievement- oriented behaviour of HR managers and professionals concentrates on motivating performance excellence by aiming objectives and goals that challenges employees throughout the year. According to this theory, the main concern of the HR managers is to support and maintain the psychological well being of employees of the company. It also involves leaders or managers consulting with workers regarding individual choices in executing job requirements.

Impact of HRM on Organisational Performance

Over the last few years remarkable steps have been made in discovering the impact of HRM on organisational performance. McDonalds Corporation is specifically aim at expanding their sales to customers who are not yet familiar with company’s food items. The HR managers of the company achieve their objectives not only through advertising, but by expanding their distribution network as well. The strong human resource management of the McDonalds Corporation has created on effective association between strategy and performance of employees as well as HR professionals. The fundamental reason that keeps McDonalds Corporation apart from other organisations of its type and discovers the scope of its operations in product and services is described as the mission of the company. Effective set up of human resource management enables an organisation to develop consistency, which results in offering employees a clear direction to fulfil customer demands and achieve higher satisfaction.

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An effective management of strategic human resource of McDonalds Corporation is focussed on the harmonisation of organisational work activities and practices to the business strategy. The HR professionals and other managers of the company assist in identifying the business strategy by converting it into effective HR practices and processes. To meet the challenges in the highly competitive world HR managers and employees need to constantly renew their knowledge, skills and work activities and also invest highly in the improvement of their human capital. It has been observed in a number of researches that investment in training employees is responsible for bringing profitable organisation level outcomes.

McDonalds with the aim of development of desired worker behaviour and skills implements the use of appraisal mechanism. The implementation of performance appraisal by the McDonalds Corporation involves promotion, termination, assessments and performance improvement. As a result of which, development of performance appraisal is considered among the highest priorities of the McDonalds Corporation. Performance appraisal system in McDonalds Corporation has the capacity to bring lots of benefits for the organisation such as promoting more communication, increasing employee attention through promoting trust, improving performance, and estimation of training requirements.

Employee empowerment in McDonalds Corporation is considered as the process of enabling employees to think, behave, adjust, take proper action, coordinate work and decision making in an effective way to enhance work productivity and efficiency.

The process of employee participation and involvement in decision making enables employees to boost their confidence and self-esteem. This strategy is used by human resource management team to promote motivation in employees in different ways to attain the specific goals and objectives of the organisation. Another human resource strategy which promotes employees to work is the process of compensation. It has been observed by the management of HRM of McDonalds Corporation that compensation has an important impact on performance of employees.

Global Issues influencing the development and implementation of global HRM strategies

Organisations seeking new opportunities in new markets face many challenges and issues so human resource management of the organisation plays a crucial role in order to tackle these challenges. In this context, some of the challenges faced by organisations are differences in social, political and economic environment, resistance to change in the organisation, recruiting high quality employees, developing a long term HR plan and aligning HR strategies with the overall corporate objectives (Snell, 2011). In the world of 21st century, a high number of companies have been trying to compete globally; there is a high demand for employees, leaders and managers. HR managers have to find staff with global skills, as well as, offer appropriate training and skills to them.

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Organisational, National and cultural Issues

Organisations generally deal with a number of issues and problems while conducting its recruitment and selection process. The quality and talent of employees hired by an organisation depends on its valuable recruitment and selection human resource strategy (Berman, 2006). The process is not always smooth as employers face a lot of problems and conflicts such as cost offered for advertising job openings and various other barriers such as improving communication between recruiters and hiring agencies (Tan and Nasurdin, 2011).

The human resource department generally faces issues related with executing department audits, collaboration of performance management system and creating policies on worker attitude and behaviour.

The HR professionals face issues related to employee conduct involve low employee morale, high voluntary and involuntary revenue, and analysis of workers complaints filed with state enforcement organisations. The global HRM of McDonalds Corporation is also responsible for handling of diversity conflicts and partially responsible for diversity management (Stanleigh, n.d.). The compensation experts in human resource department are equipped with the duty of ensuring the McDonalds Corporation offers competitive salary and gives attractive inclusive benefits packages. Moreover, the compensation experts also build networking relations with their competitors and counterparts. These experts usually face challenges and issues that demand them to explain budget increases to stay competitive and hire the best, highly skilled job candidates. Even if salary and benefits are not considered as the priorities for few job searchers, they are aspects to be critically considered when searching at a potential employer.

In the recent few years, the HRM of McDonalds Corporation has been highly criticized for offering low wages to employees. Employees were feeling frustrated and stressed with the increasing responsibility and constant promotions. The company also faces complaints regarding slow service, high calorie food, etc (Huang, 2000). The famous fast-food company has been questioned for not offering overtime rates even when employees work in double shifts. In this high competition, the human resource management of the company was working with the strategy of high profits and low wage costs, resulting in understaffing wherein all employees are required to work harder and faster. This results in causing frustration among company’s employees and they start criticizing the company in public.

In context to McDonalds Corporation, where the achievement and accomplishment of the company depends on three factors i.e., hiring, training and developing creative workforce, the organisation is constantly facing challenges such as employee’s dissatisfaction and less retention level (Mieth, 2007). The company’s HR strategy has been again dealing with issue of retention of talented and skilled employees after the criticism for health food has been faced by company. As a result of, the company lacks succession planning that requires to be achieved in order to retain the talented employees and handle other major issues and conflicts associated to the HRM department. The company has been highlighted in public many times for its inability to treat its employees fairly. For instance, the employees of the company believe that the main reason for them to leave the job is that they are being offered low compensation.

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Systematically Analysis of Organisational, National and cultural Issue

Training and selection programs assist an organisation to understand different aspects of culture education and represents a good image of employees’ significance and value to the organisation. Human resource managers work hard to hire candidates who adjust with culture of an organisation. They need to keep their focus on diversity and equal opportunity as well as both moral and lawful hiring policies. At the time of issues and problems, the HR professionals need to resolve issues between the requirements of organisational culture and those of ethical practices (Adler, & Gundersson, 2008).

HR professionals need to perform the process of screening at the time of hiring. The process of screening leaves few candidates out and allows others to move in the company. When the culture of an organisation focuses minimum observance to the law, the HR professional sometimes experience an ethical issue while suggesting a highly qualified employee who does not adjust in the background required for an organisation quota.

Privacy is always an integral aspect of the McDonalds Corporation. Even though the company has a friendly culture and motivates employees to openly discuss personal information and lifestyles, the human resource managers of the company has a moral responsibility to keep such information private and confidential. Human resource challenges generally face by HR team includes maintaining productivity, hiring employees, executing training processes, keeping employees safe, resolving conflicts and avoiding discrimination (Catano, 2009). Creating and offering benefits, motivating and managing diversity, and maintaining outsourcing are important aspects as well. Each and every organisation faces specific human resource issues based on the HR manager as well as policy of the organisation.

An important and major objective of a human resource department of McDonalds Corporation is to handle and manage employees to keep them productive, which results in high revenue. HR managers, therefore, adopt specific measures regarding the number of employees per shift, team tasks, motivational offers such as bonuses, incentives, and keeping morale high. These elements can have powerful relationships, so the problem is how to do improvements in one area without highly affecting other (Nichols, Rourke, and Vlachopoulos, 2011). It is very challenging and difficult for HR managers to make modifications and correct arrangements that do not align with the budget of the company.

Human resource managers of the company are responsible for employee recruitment and selection.

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They need to work hard to discover processes, such as attending job fairs, forwarding promotional mailings, to produce interest in specific openings and the organisation as a whole. In the context of McDonalds Corporation, the HR professionals deal with lots of issues in this area because of globalisation as companies are competing with each other globally than in just one small region or country (Burnes, 2009). Well qualified employees are searching for jobs that offer more of stability between family and employment. In such cases, HR managers of McDonalds Corporation need to provide high in terms of profit packages or incentives, as well, because talented candidates constantly searching for jobs that minimise their risk in unfavourable economic situations.

Recommendation for addressing Organisational, National and cultural Issues

• The main issue that McDonalds Corporation is facing today regarding its recruitment and selection procedure is that the organisation is still focussing on traditional methods of HR practices and policies. Thus, it is vital that the company need to emphasis on using print advertisements and agencies while recruiting large number of skilled and talented employees. Moreover, the organisation can also implement other measures of effective recruitment processes for example job boards and virtual social networks (Compton et-al. 2009)

• The company can also take further efforts and measures in this area such as making use of referrals. This will assist the organisation to choose those employees who are highly qualified and skilled from leading college and university. In terms of recruiting young and skilled employees, referral system is considered to be the most efficient method as it assists the organisation to meet its talent demands.

• The company is recommended to work on fast innovation technology and thus meet the needs of its customers across the globe with its creative menu and healthy food items. The implementation of referral system will aid the company to monitor its core activities and processes.

• Other than this, with the help of private consultancy companies with the aim of recruiting the individuals, the organisation can be benefited as these agencies will be able to find more talented and efficient people (French, 2011). Even this activity demands high cost, but the process is appropriate for the organisation to make the talent acquisition process to be more successful and effective.

• For the recruiters who are appointed for the recruitment campaigns of the organisation, it is vital that the organisation should hire trained recruiters in their organisation. This is because efficient and skilled recruiters will help in maintaining the significant aspects or queries of the applicants who are placing their resume for employment in the company.

• Along with this, the recruiters of the McDonalds Corporation are recommended to be able to identify other factors in the candidates such as technical qualifications, high skills, innovation and creativity. This can be achieved by appointing a specialised team that consist of both human resource specialist and experts who are dedicated to generate high recruitment output for the organisation.

• Furthermore, the recruiters need to be responsible, helpful and technically competent (Barrows and Powers, 2010). The HR professionals and recruiters of McDonalds Corporation should be willing and should possess the information about the current changing business environment they are facing with, the competitors, the demand and the requirements of the candidates and necessity and demands of the current markets. This will assist the company to achieve a productive and effective workforce.

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April 12, 2016