Human Resource Management McDonalds

Question: Discuss about theHuman Resource Managementfor McDonalds. Answer: Introduction McDonalds is one the worlds largest food and beverage service chain. It is considered one of the Australias biggest employers, employing around 75,000 people in Australia. Their wide market presence has ensured that they are not likely to disappear anytime soon. It also considered as one of the best companies to work at in Australia, with its strong leadership culture. They have always given importance to talent and potentiality and to support that they have a strong training and development policy included in their human resource management (HRM), along with an advanced recognition culture (Kramer et al. 2011). This essay would focus on the different theories and models that can be used for employee retention in an organization. Discussion Employee retention concerns itself with the keeping and motivating of employees so that they can be retained in an organization for the longest period. Das and Baruah (2013) describe employee retention as the technique that is adopted by businesses so that they can maintain an effective workforce alongside meeting operational requirements. Mehta, Kurbetti and Dhankhar (2014) defines it as the procedure with the help of which the workers get encouragement in remaining with the organization they are working for an extended amount of time or until at least the completion of any project. It has been observed that employee loyalty and retention is not just determined by one single factor but a multiple number of factors (Deery and Jago 2015). Commonly cited factors that have been identified to be developmental opportunities and quality control, employment stress and colleague stress, recompense and appreciation on task completion, proviso for difficult tasks, endorsement and expansion opportunities, comfortable work environment, colleague relationships, work-life balance, communication and regulation. The retention factors as counted by Kossivi, Xu and Kalgora (2016) are compensation and perquisites, training opportunities, reasonable and equal treatment, and organizational culture. Even as Allen and Shanock (2013) concentrated upon socialization and relationships with colleagues, George (2015) recognized eight factors determining retention of employees: administration, favorable environment, social support and advancement openings, independence, pay, structured workl oad, and work-life adjustment. From the observation of different researchers and authors, it is evident that employee recognition plays a huge role in the retention of employees. In McDonalds a strong recognition culture remains instilled, with focus entirely on its people (Aaker 2012). They believe that to ensure better functioning, superior quality customer services, hygiene and quality product, investments in its people are a prerequisite. Their unique culture has been underpinned by means of five major dimensions: people, place, product, price and promotion. The recognition schemes incorporated by McDonalds include formal annual events and development programs that run their operations at the restaurant and corporate levels (Corporate.mcdonalds.com 2017). Their Crew Recognition Program functions at their store levels. This recognition program specifically identifies crewmembers that have significantly contributed to the overall performance of the restaurant. Staffs who have records of highly contributing and p erforming receive recognition at the end of the month, quarter or year. After that, these employees get their names put up on the monthly staff magazines and publications, WRAPT or are rewarded by a gift or discount card. Their corporate level recognition schemes include outstanding achievement awards. These winners are selected by means of their contribution to the business strategy or delivered results that were beyond expectations. The senior management team provides approval for the recipient, who gets a gift voucher along with a formal recognition in the presence of all the employees. McDonalds believes in transparency and that is reflected in their structured approach to remuneration (Nadolny and Ryan 2015). The main motive of such recognition schemes are to attract and keep young, skilled employees who are important as well as difficult to find for todays businesses (Samek and Sheremeta 2014). It has become more and more difficult for employers today to retain the workforce, younger workforce having different attitudes towards work and the older workforce who are on the verge of retirement (Dychtwald, Erickson and Morison 2013). A good salary might attract people to come up to the front door, but something more is required to make them stay. Individuals have a basic need of being appreciated and praised for their work. Recognition and rewarding schemes assist in meeting that need (Stocker et al. 2014). For that, bonus and recognition schemes are becoming more and more important for employees, and have become one of the top factors for professionals looking to join certain organizations. Employers are becoming more aware of the fact that failing to include such schemes in the organizatio ns human resource policies can result in missing out on potential talents for their businesses (Shahid and Azhar 2013). McDonalds recognition schemes have made them what they are today one of the best organizations to work in. It blends flawlessly with their people-culture and appeals to potential talented employees. The HR policies include training and development also so that the potential can be trained and their talents polished to ensure an engaged workforce. With McDonalds people-oriented policies, staffs receive the right amount of backing and training, with new skills added to their specialization. Thus, the recognition schemes also motivate managers and assure them that they have a good chance to receive support for their development and career opportunities at McDonalds, resulting in the organizations maintaining of a pool of potential leaders and retaining staff (Kramer et al. 2011). Recognition scheme gets support from the managers and HR policies in organizations. It also gets support from the theoretical perspectives also. Employees of every organization expect to be recognized and rewarded for their contributions to the organization. Being rewarded motivates employees to contribute further towards the profitability of the organization (Yousaf et al. 2014). To best describe the role of expectancy in supporting employee recognition programs in organizations, expectancy theory by Victor Vroom of Yale School of Management is one of the best approaches. The theory of expectancy says that direct comes to fruition on account of perceptive choices among decisions whose reason it is to lift amuse and to farthest point torment. Vroom appreciated that an agent's execution depends on upon individual parts, for example, character, aptitudes, learning, data and breaking points. He conveyed that exertion, execution and motivation are related in a man's motivation. He utiliz es the factors Expectancy, Instrumentality and Valence to address this. The theory prescribes that despite the way that people may have specific game-plans of goals, they can be pushed on the off chance that they expect that there is a valuable relationship among endeavors and execution, great execution will accomplish a charming prize, the reward will fulfill an essential need and the aching to fulfill the need is sufficiently solid to endeavor being useful (Parijat and Bagga 2014). Laborers are impelled when they assume that more unmistakable effort on their part will incite to better occupation execution and better business execution will provoke to better illustrative prizes (higher remuneration, unique open entryways, association benefits and shares). Agents furthermore have confidence in these normal laborers affirmation, specialist motivations and the occupation rewards since they have a motivator to the specialist. Along these lines, managers must recognize, offer and execute appropriate and needed delegate motivations. This association between what delegates need and regard and the prizes offered will finally incite to extended laborer productivity and positive outcomes for the association (Brun and Cooper 2016). The role of agency theory in motivating employers to introduce recognition schemes is different than that of the expectancy theory. Agency theory has been used to grasp conditions in which an individual delegates obligation with respect to an endeavor to various individuals (Pepper and Gore 2015). The individual selecting the work is known as the principal, and the individual to whom endeavors are doled out is insinuated as the agent. Agency theory is used to explain elective strategies for controlling behavior remembering the true objective to diminish beyond reconciliation conditions that unquestionably rise when principals allot commitment to agents. The theory suggests that agency costs are constrained when the firm is controlled by the proprietors. Exactly when this is the circumstance, beyond reconciliation circumstances are discarded, and agency costs are lessened. Agency theory is of stimulus in the examination and plan of non-manager's remuneration. For this situation, the u niqueness of interests might exist between bosses (now in the bit of principals) and their masters (who go up against the bit of agents). Agency theory says that the principal must pick a contracting plan that adjusts the interests of the agent with the principal's own specific points of interest (i.e., diminishes agency costs). These understandings can be named either direct organized (e.g., legitimize pay) or result arranged (e.g., speculation openings, advantage sharing, commissions). Agency theory is concerned with settling two issues that can occur in agency associations. The first is the agency issue that develops when (a) the longings or targets of the principal and agent strife and (b) it is troublesome or expensive for the principal to affirm what the agent is truly doing. The issue here is that the principal can't affirm that the agent has acted legitimately. The second is the issue of risk sharing that rises when the principal and agent have differing dispositions toward peril. The issue here is that the principal and the agent may slant toward different exercises therefore of the unmistakable danger slants (Shogren et al. 2015). Isolating things further, affiliations that interface pay to individual execution will presumably attract individualistic sorts of delegates, while affiliations depending more strongly on gathering prizes will likely draw in more gathering focused laborers. Regardless of the way that there is no strong confirmation of this yet, it has been found that unmistakable pay systems attract different people depending upon their personality attributes and qualities. The recommendation is that the blueprint of pay ventures ought to be meticulously sorted out with the business and human resource approach. In comparison with the people culture in McDonaldss, and high remuneration plans, nonprofit organizations like Optus and Spastic Centre, following the salary packaging method for employee retention. In this way employees have a power over the way they receive their rewards. In these kind of packages some popular items are included like benefit vehicles, laptops and PCs, PDAs and employer superannuated contribution in excess to the minimum superannuation guarantee scheme. Both Optus and Spastic Centre used the means of salary packaging so that they can attract and retain talented employees. The salary packaging offering of Optus includes childcare center, food and beverage outlets, gym and licensed restaurant. The food outlets are leased out and those selected employees would be able to use a special card at the point of sale. The withdrawal happens from their payroll and goes as payment to the outlet. On site food provisions have been the most beneficial part of the whole scheme and met the needs of the employees. On the other hand, Spastic Centre has special amount of allowance per year, set aside for expenses that include meal entertainment allowance. They have been a follower of the salary packaging plan for almost more than 12 years. It was initially introduced with the aim of paying at least market rates comparable to NGOs, and played an effectual role in reducing turnover (Kramer et al. 2011). For quite a while, the business group has perceived the adequacy of yearly motivation pay grant arranges. An impetus grant program in the revenue driven division can be an intense motivational apparatus for drawing in and holding top ability, expanding profitability, and eventually, accomplishing corporate objectives (expanding benefits). Accordingly, more than 80% of top officials in the private segment take an interest in motivating force arranges. All together for a Non-Profit association to effectively do its central goal, and satisfy the general population's desires, it must pull in, hold, and propel equipped staff, especially in key administration and expert positions. An adequately oversaw Non-Profit association is for the most part more fruitful in pulling in group, business, and expert pioneers as volunteers. Not-for-profit associations ordinarily have less assets and less money to spend than revenue driven substances with regards to offering lucrative remuneration bundles. Non-benefit associations don't have enormous spending plans and their spending is frequently examined in a path that revenue driven organizations can't start to envision. One reason representatives work for not-for-profit associations, beneficent establishments or group benefit gatherings is they have confidence in the association's central goal and logic. In any case, representatives acknowledge motivating forces and acknowledgment, and bosses who make powerful impetus projects will probably discover laborers and workers who are completely locked in (Speckbacher 2013). Conclusion The essay fulfills its role in conveying and discussing about the need and importance of employee retention in organizations. The incorporation of recognition schemes in McDonalds were compared to that of the salary packaging offering in two non-profits, Optus and Spastic Center. McDonalds has a strong recognition culture and they believe that to ensure better functioning, superior quality customer services, hygiene and quality product, investments in its people are a prerequisite. On the other hand the non-profits have much lesser amount to invest and tries to include contribution from returns and employees themselves to settle upon benefits for everyone. The approaches of these organization proved one thing - to attract and keep young, skilled employees who are important as well as difficult to find for todays businesses employee recognition schemes are a must. References Aaker, D.A., 2012.Building strong brands. Simon and Schuster. Allen, D.G. and Shanock, L.R., 2013. Perceived organizational support and embeddedness as key mechanisms connecting socialization tactics to commitment and turnover among new employees.Journal of Organizational Behavior,34(3), pp.350-369. 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