Contents
Human resource management....................................................................................................................1
McDonalds Human resource management..............................................................................................1
Different HRM Areas and comparison........................................................................................................2
Changing Effects on Mcdonalds and its Business Environment............................................................4
LO2.............................................................................................................................................................5
Recruitment and Selection at McDonald’s..............................................................................................5
Field based Jobs at McDonalds...............................................................................................................5
Office based jobs at McDonalds..............................................................................................................5
The process of Recruitment and Selection at McDonalds......................................................................5
Remote Testing.......................................................................................................................................6
Assessment Centre.................................................................................................................................6
McDonalds Selection Process.............................................................................................................7
Strategies used by McDonalds to enhance retention;.............................................................................7
Evaluation of the role of recruitment and retention...............................................................................8
Strength and Weakness of HRM..............................................................................................................8
Weakness of HR.........................................................................................................................................9
Bad Reputation of the company.......................................................................................................9
Power can backfire..........................................................................................................................10
Internal and External Factor......................................................................................................................10
External Factors;........................................................................................................................................11
Recommendation for Sustainable Organizational Performance..........................................................11
References.................................................................................................................................................12
Human resource management
Human resource management involves the planning, leading, and supervising the company's
current staff to ensure that the company has its goals, vision, and mission are met at the time.
This also covers the hiring, selecting, given education, compensating, retaining, and motivating
of the employees. (Staff, 2023).Employees in the HRM also works to develop the policies and
the guidelines that can promote the security for the workers working. The group responsible for
that human resources management monitors and adherence to state and federal regulations in
order to protect the employees' private information, and also ensure their safety on the job,
and advance their psychological and spiritual well. HRM is crucial to ensuring the seamless and
effective functioning of companies of all sizes and in all industries. (Staff, 2023)
Introduction of Mcdonalds
In 1954, Ray Kroc stumbled upon a small hamburger business in California, which is how that
McDonald's history started. With its humble beginnings as a little cafe, McDonald's has
expanded to become among the most well-known dining corporations in the world, with over
36,000 restaurants in operation in over one hundred nations (mcdonalds, 2024).
McDonalds Human resource management
For employees and administer an organization, McDonald's uses personnel planning as an organisational
function. These workers deal with matters pertaining to certain individuals within the organization. They
provide methods of managing benefits, payroll, and routine tasks in addition to initiatives for employee
development and recruitment. Human Resources (HR) can be more engaged in employing the right
citizens, attending to job-related requirements, soaking workers a voice, advising teamwork, and handling
conflicts in a way that maximizes productivity, efficacy, and rivalry as manufacturing enterprises have
comparatively intricate organizational frameworks and employee-level procedures. (Essays, 2015). The
HR division at McDonald's handles far more than merely managing workers as a supplier of resource.
From a strategic standpoint, Toyota views employee development as a crucial element of the business's
edge over competitors. Developing great individuals is also the company's most critical task, and the
organization has become incredibly emotionally mature in addressing this responsibility. It only requires a
cursory glance at management whose go through HR to realize whatever is off at McDonald's. Executives
in human resources have served as vice chairman of production, both of company directors, and some of
the leading experts on the McDonald's manufacturing process(Essays, 2015).
Different HRM Areas and comparison
Talent Acquisition at Mcdonlads
Mcdonalds makes a huge investment on hiring those employees who have great skills and
knowledge about the automobile sector. Terri Von Lehmen is the general manager of talent
acquisition in north America. Mcdonalds also offers different incentives to their employees while
hiring them (glasdoor, 2024). Talent acquisition process at Mcdonalds is typically by
identifying the needs of every department. After that the talent acquisition team create jobs
descriptions. After intrevieing the candidates, the perfect people which fits the job descriptions
are selected.
Motivation, Welfare, health and safety of employees
The hr department of Mcdonalds have a very major role in maintain the workforce of the
company. The HR team make different strategies to to maintain the workforce. The employees
are given different incentives like health insurance, a safe workplace environment is provided
and the queries and question of the employees are answered. In this way it creates a friendly
environment between the employees and the Hr team. By this it helps the company to achieve
the goals set by the management teams to be achieved in the future. It creates a competition
between the employees to work hard and achieve those incentives to.
Workplace safety and risk management
To protect the health and welfare of its workers, Mcdonlads prioritizes risk management and
workplace safety. They encourage an environment of continuous risk identification and
reduction. Mcdonlads have strict security measures in the workplace, and they offer
comprehensive instruction on safety precautions. Mcdonlads wants to provide an environment
which is safe and healthy for all of its workers working in the company. That’s why safety is the
top concern for Mcdonlads. Mcdonlads complies with all applicable laws regarding health and
safety, as well as guidelines for working on customer property. In addition, the company will set
up any internal guidelines and standards that must be followed in order to raise the standard of
health and safety management (Corporation, 2024).
Employer and Employee Relations
The relationship between an employer and its employees is known as employee relations. The
HR professional's main duty in an organization is to manage and grow employee interactions.
They could achieve this by serving as a single point for communication for the workers and the
company. Solving disputes between both of them may also be essential for these experts to keep
their relationship together (Indeed, 2024). The Hr manager also has the duty to make strategies to
attract more applicants through the selection processes. The hr manager also identifies the
problems between the employees which they face and helps to figure them out to. The employers
rech the hr managers if they face issues. Mcdonalds has created great strategies for their
employees and employee relation. Some of them are as follows
Employees can directly communicate with the employers
The employees can give suggestions to the employees regarding business development.
If the employee has great performance the Hr manager of Mcdonalds appoints him in the
decision making for the company.
Changing Effects on Mcdonalds and its Business Environment
Each day, McDonald's provides meals to hundreds of hungry individuals worldwide, which gives
us them chance and responsibility to use its size and reach to improve the worldwide nutritional
[Link] of the main problems confronting the nutritional system is climate change,
which calls for immediate response. Here are a few of the ways we're working towards feeding
people more sustainably while also lowering emissions, regenerating the environment, and
becoming ready to respond to climate change.
Reducing emissions on beef
In the case of beef, Mcdoanlds have special opportunity to leverage their size to quicken the
pace and broaden the acceptance of best practices that lower emissions and protect farmer
livelihoods. Since 2011, in order to assist identify and expand the most sustainable farming
practices across the sector, we have collaborated with ranchers, beef farmers, and civil society
organizations in each of our main sourcing regions. Among these initiatives is the Global
Roundtable for Sustainable Beef, which was co-founded to hasten the industry's adoption of
sustainable agricultural methods. In order to progress the science behind sustainable beef
production practices, we are also collaborating with partners. One instance is the research we're
conducting to examine how regenerative grazing works in partnership with US universities and
the Foundation for Food and Agricultural Research (mcdonalds, 2023).
Putting money into ecological design for restaurants and energy sources that
are renewable
A big component of our plan to lower emissions of greenhouse gases in every one of our
restaurants and headquarters is renewable energy. For instance, McDonald's debuted a first-of-
its-kind restaurant in July 2020 that aims to generate sufficient green power on-site to meet all of
its own energy requirements on an annual basis. We made investments in two renewable energy
projects in the United States in 2019; once operational, these projects are anticipated to
contribute greater amounts of clean energy to the nation's electrical grid than any other restaurant
company in the country to date. This will avert over 700,000 metric tons of carbon emissions
annually, or in excess of 11 million trees. Additionally, approximately 6,000 McDonald's
restaurants across twelve markets received electricity from European renewable energy
purchases in 2018. Austrian McDonald's restaurants (mcdonalds, 2023).
Conclusion
Through demonstrating to the general market and consumers it is an environmentally concerned company
that is making a concerted effort to reduce the quantity of environmental occupants, Mcdonalds will
improve its reputation. Additionally, by implementing these measures, Mcdonalds may draw in more
customers, thus increasing sales and earnings.
LO2
Recruitment and Selection at McDonald’s
McDonalds offers diverse range of jobs. Currently more than 360,000 employees are working at
McDonalds. McDonalds has its existence in more than 190 countries worldwide. McDonalds
provides many opportunities to the people to come and work in a sustainable environment in
which more than 90% of employees work with full effort for the company. McDonalds has a
very different workplace environment from other companies. It provides many incentives to its
employees, health insurance, allowances and much more. This attracts many people from other
companies to join McDonalds and work for them (mcdonalds, 2024).
Field based Jobs at McDonalds
McDonalds a provides more than 35 field jobs. These workers have to work outside of the office
for the company. This includes the manufacturing jobs, logistics, supply chain, marketing racing
development jobs and many more. The employees usually oversee the production processes, they
give services to the customers at McDonalds restaurants (mcdonalds career, 2024).
Office based jobs at McDonalds
McDonalds offers many office-based jobs. These employees at McDonalds are only engaged
with official work they don’t have any connections with the restaurants and other work. These
employees are engaged with sales department, data entry, at head offices and other office jobs.
McDonalds provides a very good workplace environment to the employees. The employees are
trained how to work in the offices many seminars are arranged for the newly hired employees
(mcdonalds career, 2024).
The process of Recruitment and Selection at McDonalds
First of all, the company describes the jobs description of each job and then people are given a
chance to apply for those jobs.
Job descriptions
McDonalds offers a wide range of jobs opportunities across various departments like
manufacturing, marketing, finance and much more. McDonalds outlines each job description in
which the responsibilities, qualification and the skill which are required for the role. McDonalds
checks the employee’s criteria if the fall for the job which have been described by them (haul,
2024).
Applying online
After McDonalds have described the job. Candidates upload their CVS’s and other information
which McDonalds have asked for the job. After that the candidates attach the cover page and
upload their entire information at the website or drop them at the postal address given by
McDonalds (haul, 2024).
Remote Testing
After the employees have met the criteria of the jo which was given by McDonalds the next step
for the candidates is the online test. This will have a one-way video interviewing in which the
candidate would be tested. After that the personality and the skills would be tested of the
candidate (haul, 2024).
Assessment Centre
If the candidate has passed the remote testing of McDonalds, they would be invited to meet the
group of assessment at the company. The candidates would be tested all the day. They would be
assigned to take part in individual and group activities that will help the assessment team know
their potential they have competency and motivation. The candidates will also get a chance to
meet the stakeholders and managers and they can ask any questions they would have regarding
their job or other complexities regarding the company. After that McDonalds will tell the
employees to do some preparation before they come in and present themselves (haul, 2024).
Situational Judgement Test
McDonalds tests the candidates through the SJT exam in which they look how the candidates
respond to the fictitious events that can arise while working. The candidates should fully be
prepared while passing this test while McDonalds will use the answers of the candidates to
match with their company beliefs (haul, 2024).
Tests according to the job
McDonalds tests the candidates in different ways. While the job for which the candidate has
applied McDonalds tests them according to it. They have many exams for example
Personality Test
SJT tests
EEFCT
The candidates which have applied for relevant jobs to each test has to pass them to be selected.
As the company has no place for those who fails to pass them.
Interviewing
In the last stages of selection, the most talented candidates which have passed all the
complexities and requirements of McDonalds they are interviewed. McDonalds acknowledges
the leadership skills, communication, risk taking and in last their presentation. If the candidates
which are being interviewed are able to pass this question that ‘what would be the upmost
priority while working in this organization and how would you faceup challenges being faced to
the company’ then the interviewer passes them.
McDonalds Selection Process
After all the tests, interviews and every phase of the McDonalds recruiting process. McDonalds
selects the most talented and skillful candidates for the job. Many employees are shortlisted as
some are with lack of qualifications, some with skills and some because of talent. The need of
McDonalds is to have employees which have all the qualities in them and can face all the
challenges. Thus, The candidates selected will be sent an offer and would be required to fill out
the pre-employment documentation which is required by McDonalds. After that they would be
selected and would join the company from the start of the next month (haul, 2024).
Strategies used by McDonalds to enhance retention;
Ensuring Equal Opportunities
McDonalds is working to provide a transparent and a human resource system and an
environment where all are workers are equal regardless of their gender. They can fully use their
potential to compete the workers. Elimination of the major career track and general level job
classification, active recruiting of women for professional-track positions, and several additional
programs to facilitate juggling work and family life are some of the measures put in place thus
far (haul, 2024).
Supporting Balance between Family and Work
McDonalds is actively involved in creating programs and encouraging a workplace culture that
enables employees to balance their family and workplace commitments, without having to
sacrifice one for the other. McDonalds allows 47 leaves to its employees in one year which
would balance the work and the employees would be able to give their precious time to their
families. In this way this would encourage the employees to work more harder for the company
as the company facilitates them. (mcdonalds, 2024)
Focus on Safety and Health Management of employees
A healthy and pleasant work environment depends on all workplaces having high standards for
health and safety as well as the wellbeing of all employees. McDonalds is prioritizing prevention
of accidents and diseases when it comes to health and safety management of the employees
(mcdonalds, 2024)
Management of Working Hours and Encouragement to Take Paid Annual Holiday
McDonalds is trying to control working hours and promote taking paid yearly breaks in order to
maintain staff wellness and guarantee smooth corporate operations. Reserving a day to leave
work on time and keeping in touch with supervisors about job-related topics can prevent
excessive working during working hours. When an individual works more than 40 hours of
overtime per month, they are urged to complete a questionnaire and seek counsel from an
industrial physician. An employee's physical and mental health are assessed through a health
check and consultation with the industrial physician if they work more than 60 hours per month
or if they work more than 40 hours per month for four months in a row (mcdonalds, 2024)
Evaluation of the role of recruitment and retention
Recruiting and retention of workers are essential to an organization's ability to be financially
sustainable as well as to sustain a high standard of result, engagement, subject-matter knowledge,
and satisfaction with clients. Also, it assists a business establish an excellent track record with
clients and potential staff members. Both of these jobs are difficult for a HR manager but hiring
talented employees and retaining them in the company helps the company to achieve its goals
and objectives set (bond, 2023).
Strength and Weakness of HRM
Strengths of HR
Progress in technology in HR
The HR departments have seen a very big boost after the technological advancements. Some
ways by which they changed are as follows
Directing Tasks
Software can now easily handle the routine tasks like employee benefit
administration, scheduling projects or work, and allowing up human resources staff to focus on
more important projects (Pollock, 2022).
Finding Talent
The Ats systems have helped a lot in finding new employees for the company. The HR uses this
system that sort through resumes, it schedules interviews and it can also conduct initial
screenings. (indeed, 2023).
Improving the employee’s experience
The technology has made easy for the HR department to use the onboard hires of employees,
providing them training and create an engaging work environment. For example, the chatbots are
used that can answer the employee’s questions and the self-service portals which allows the
employees to manage their information (indeed, 2023).
McDonalds can use these technologies advancements in their HR department to lessen the
burden and work more efficiently.
Employee Rights Protection in HR
The HR department plays a very crucial role in the upholding of the employee rights. Some of
the ways are as follows
The HR department supervises the fulfillment of local labor laws and follows them.
These laws often cover issues like the bare minimum wage, payment for overtime work,
equality among all the employees, safety and health needs, and rules for holidays, leave,
and layoffs (indeed, 2023).
HR also offers the training courses to educate staff members of their rights and how they
can file complaints for violations if they face. This gives employees more greater power
and also fosters a respectful work environment (indeed, 2023).
Low turnover rate
One of the biggest strengths of HR is that it organizes the staff in such a good way that the
turnover rate is very low. The HR department listens to the queries of the employees, helps in
solving their problems, gives them many incentives like medical facility, allowances and increase
in their wages which retains the employee in the company. This is the strength of HR department
which organizes the staff and the employee leaving ratio stays very low. The employees are
satisfied and are provided with every facility.
Weakness of HR
Limited Budget;
According to research it has been derived that only 25% of the HR departments of the company
have collaboration with the finance department. While the finance and HR departments are
closely related. Both of them maintains the assets and balance of the company. For HR it is very
important to understand for them to know the financial data and analytics as it would help them
in hiring and the management decisions they take. The HR department has to set a budget and
would present ahead the finance department so they allow them to give them that budget as, the
HR has to spend the money of producing productive employees for the company but for that they
need efficient amount of funds which is a key for both the business and the satisfaction of
employees. (marketing tutor, 2024)
Bad Reputation of the company
For whatever reason, if the company's reputation is poor in the marketplace, then HR
management will have to put in greater effort to improve it by hiring competent employees and
boosting production. The issue normally arises when an organization has a poor reputation
because of the people the joining candidates will be hesitant to become part of such a company
which has a bad reputation, which makes it difficult for the HR positions even more challenging.
The problem is this that staff members who are willing to join would ask for an environment
which is friendly in the company and the HR department's lighthearted approach would drive
them away from the company (marketing tutor, 2024)
Power can backfire
The HR department has the power to terminate the entire employees working in the company. It
is because the HR departments hires and recruits the type of employees which the company
needs. So, if any of the employee even misbehaves with HR department no matter how much
important he is for the company the HR has the power to terminate him. This is the biggest
weakness witnessed in the HR as they also are working for the company. So, the power can
backfire the company the company’s growth and its object set to be achieved (marketing tutor,
2024)
Conclusion
As we know every single thing has its weakness and strengths. The same goes for HRM its also
have strengths and weakness thus, the HR department should make sure that they overcome their
weakness to perform smooth functioning in the company. A well-functioning HR would help the
company the to achieve their goals set and, in their growth, while a HR which doesn’t overcomes
its weaknesses would lead the company towards downfall.
LO3
Internal and External Factor
Internal factors are those that can be seen within a company and have an effect on the way it functions
and acts. Even in the absence of total control, the mechanism itself typically has some influence on these
factors. The business's internal weaknesses and strengths are typically considered internal components.
They may also have an important influence on the firm's goals; if they are strong, they can be viewed as
such, but if they are weak, they will have a detrimental effect on the organization's objectives. (quan,
2023).
Internal Factors include the following below;
Mission
"To make delicious feel-good moments easy for everyone" is McDonald's stated purpose. This mission
statement emphasizes the value of clients and providing excellent customer service in order to keep the
organization a top choice for people looking to buy drinks and food.
Communication
McDonald’s aims to provide an environment to their employees in which the management and
the employees can have clear communication regarding anything. For this initiative McDonald’s
has given its employees the right to take part in the decision making and communicate any
problem or suggestion they want. The organizations which have set strict communication route
between the employees and the management often faces issues (vestil, 2022).
External Factors;
External factors are those factors which effect the business from outside which includes the
variables like inflation, interest rates, currency and political factors. External factors are totally
opposite to the internal factors (CORNALD, 2023).
Political Factors;
Political factors include a lot of things which influences the performance of the company.
McDonald’s has to start their operations in those countries where there is political stability as it
would help McDonald’s in the trade policies, favorable government regulations would be given
for business and the government would give incentives in the production to McDonald’s. It also
includes the laws by which McDonald’s has to abide while performing their operations.
Industry Factor
McDonald’s operates in a highly competitive industry where there are huge organizations
evolving their operations. To compete with those competitors McDonald’s management plan out
different strategies which they use to tackle other companies and keep McDonald’s on top in the
industry. For this the company has to do proper market research, highlight the objectives to pass
over its competitors and produce something unique to compete in the industry.
Recommendation for Sustainable Organizational Performance
The business trends in past few years have moved towards environment friendly products and
customer prefers those to. Some are shared below
Use solar panels
McDonald’s can help in saving the environment by installing solar panels in the manufacturing
planets. McDonald’s produces its own electricity in their planets from petrol and water which
produce different types of gases which effects the environment. By using solar panels, they
would be totally environmentally friendly and this would be a great initiative towards sustainable
environment.
Eco-friendly packaging
McDonalds’ should use ecofriendly packaging which would help to reduce 78% of the plastics
from their packaging. They also should aim to be 100% recycle guest packaging in their
restaurants and should use recycling infrastructure from city to city and country to country.
Conclusion
HRM plays a very crucial role nowadays in the businesses. They ensure wellbeing, development
and productivity. HR helps the companies to grow quickly by motivating the employees towards
the goal set to be achieved which also helps the employees to get paid more. Hr also focuses on
the policies and rules of the business, the more efficient the business is and the more profits it
makes.
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