• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Investigating the effectiveness of human resource management at McDonald's Restaurants Limited

Extracts from this document...


Table of Content Terms of Reference Page 1 Executive Summary Page 1 Introduction Page 1 Methodology Page 1 Its present and anticipated strategy Page 1 Its current HRM practices Page 3 How the HRM practice enables the business strategies to be achieved Page 4 How the HRM practice reflects the theories of strategic HRM Page 5 Recommendations Page 8 Bibliography Page 9 Word count = 2497 A) Terms of Reference On the 1st of October 2003, the management department requested a report written investigating the effectiveness of human resource management at McDonald's Restaurants Limited, and how this operation helps the organisation achieve their strategic aims. The report was to be submitted on the 9th December 2003. B) Executive summary McDonalds has various business strategies being introduced over the next two years. The report investigates how the Human Resource Management (HRM) practice enables the strategic plans to be achieved. McDonalds are expanding the number of restaurants in India, while closing selected stores in the UK, plans to change packaging, deco and uniform will affect the culture of the organisation. McDonalds are also diversifying, 'McKids', brand of clothing, and toys. It is the HRM policies that will ensure a smooth change over. The major concern is the cultural change; HRM must ensure that staff are involved in the changes allowing them to 'buy' into the plans. The extension plans should run efficiently as all the policies and legislation should already be in place. ...read more.


Staff are entitled to various benefits, health care, pension, company car, bonus scheme, sick pay and stock options. McDonalds supports the 'Opportunity Now' Campaign, increasing the number of women they employ, "43.30%"18 of their workforce is female. The company now allows qualifying staff up to eight weeks paid maternity or paternity leave. The company works closely with various disabled organisations, and employs where possible disabled people. The diversity development within the company insures the working environment is free from discrimination and harassment and job applicants and employees, will not be treated less favourably on the grounds of marital status, colour, age, gender, race nationality, ethnic origin or disability. McDonalds believes that "training is the foundation of their success and vital for improving the business"19. Hourly paid staff receive on the job training, supplemented by computer based and other training methods, Management staff receive training at one of the company's six British training centres. McDonalds "restaurants work to the standards which meet those required by legislation"20, they also have various policies covering food quality and nutrition, also working closely with suppliers ensuring animal welfare. The company has a number of franchises, which means that although McDonalds controls the majority of establishments, legislations, laws and policies are the responsibility of the franchise operator. G) How the HRM practices enables the business strategies to be achieved. Many policies are in place, covering a wide range of topics; enabling HRM to support the company in achieving their overall strategic plans. ...read more.


McDonalds has integrated this approach, by considering the environment with their packaging and adjusting menus to suit different cultures. This approach also influences staff promotions that the company offers, staff are offered appraisals, a means of increasing their job opportunities. Barney (1991) suggests that there is a "resource based model"; physical, financial, human and organisational resources are the main link between internal resources and the company's performance. Suggesting that it is not enough to have HR in line with strategy, and developing people will raise their commitment to the company, and provide an advantage over competitors. Although McDonalds do invest in people "66.26%"28 are under the age of 20, suggesting the majority of these are temporary, so will not progress through the company, leaving training costs continually rising. Gould's 'Model of Morale', should be considered, suggesting that high staff turnover, sickness, absences and low performance within the company, is caused by low staff motivation, job satisfaction and group cohesion. These problem stem from inadequate internal factors such as "perception of leaders, matching needs to the job and identification with organisational goals"29, and external factors such as "status, age, pay, conditions, job market policies, training, equipment and economic state"30. Hofstede undertook worldwide research into culture and concluded that different countries mainly have four different cultures, "individualism, power distance, uncertainty avoidance, and masculinity. Depending on how the country viewed these areas, Hofstede categorised the countries further, pyramid of people, well-oiled machines, village market and family. As McDonald's operates in 121 countries; consideration for this theory may allow a better understanding of the needs and values of staff. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Marked by a teacher

    McDonald's. What are the Management functions at McDonald's?

    5 star(s)

    Senior managers remain responsible for all delegated work; they 'carry the can'. Management Skills in Mc Donald's Management in Mc Donald's concentrates on building management skills. There are three basic management skills in Mc Donald's: technical, human and conceptual. A technical skill is the ability to use tools, techniques, and specialized knowledge to carry out a method, process, or procedure.

  2. Free essay

    Aims and Objectives of Tesco and McDonalds

    [McDonalds mission statement] McDonalds also have many other minor aims which are as follows: � Our People: Achieve a competitive advantage through people who are high calibre, effective, well motivated and feel part of the McDonald's team in delivering the company's goals.

  1. Classify the business according to its ownership - McDonalds

    Most recently established businesses like McDonald's have survival as objectives. This is because often they have intense competition in the market so they have to spend heavily on their advertising to attract customers. They have to ensure that they remain the Market leader in their industry.

  2. Human resources at McDonald's

    and then coming with solutions. Demand for labour McDonald's demand for human resources is estimated by analysing its future plans and by estimating the levels of activity within McDonald's. Methods of forecasting demand Management estimates Managers are asked to forecast their staff requirements. They will do this on the basis of past, present and likely future requirements.

  1. The Boots organisation is a public limited company (PLC).

    health and safety regulations. The new employee will usually be given an induction pack, which provides information about the firm. Coaching Coaching involves giving individuals a personal coach in the workplace. The coach and the individual being coached will need to identify development opportunities they can work on together - ways of tackling tasks and improving performance.

  2. Staff Training and motivation - McDonalds case study

    � Projecting and controlling accurate profit & loss line items. � Administering all in-restaurant records and procedures including benefits, payroll, inventories, security and employee personnel flies. � Ensuring that a respectful workplace exists in the restaurant. Opportunities beyond the Restaurant Manager position are also available based on interest and performance.

  1. The purpose of the coursework is to produce an analytical report on how a ...

    McDonalds encourage movement across business and functional boundaries within the company, to develop breadth and depth of experience, and offer opportunities for career development. There are several different types of training methods, the main types are 'on-the-job' and 'off-the-job' training: * On-the-job training - takes place when employees are trained

  2. Analyze and evaluate the strategic decisions made by Marks and Spencer (M&S) in different ...

    Many employees were used to the 'top- down' decision -making style. Leadership is a social agreement. The creation and changes of leadership will take years after people's experience. Therefore the top management has to be patient with the change and try to avoid inconsistency in change.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work