The purpose of the coursework is to produce an analytical report on how a medium-sized or large business manages their human resource department.

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Kajal Maisuria                                                     Unit 4 – Human Resource

Introduction

The purpose of the coursework is to produce an analytical report on how a medium-sized or large business manages their human resource department. For this coursework, I would need to show the importance of the human resources management to the business, providing a comprehensive overview of all four of the following functions and focussing in depth on one of the following functions, either:

  • Human resources planning
  • Recruitment & Selection
  • Training & development
  • Performance management

The objective of this coursework is to find out how the human resource department applies to the company, what the functions of the department are and how the human resource department contributes to the success of the company.

In 1974, McDonald’s opened it first restaurant in the UK. Today more than 2.5 million people in this country place their trust in McDonald's every day - trusting the Company to provide them with food of a high standard, quick service and value for money.

McDonald’s is the world's leading food service retailer with more than 30,000 restaurants in 119 countries serving 47 million customers each day. It’s one of the worlds most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which McDonalds is in.

McDonald’s was founded in 1954 by the McDonald’s Brothers, Dick and Mac. Raymond Kroc was the first franchisee for McDonalds in San Bernardino, California. In 1955, he opened his first restaurant in Illinois and that was when the McDonald’s corporation was created.

Functions of Human Resource

The role of Human Resource

Human Resources are the most important resource in any organisation and there is a direct connection between the quality of the workforce and commercial success. To succeed, an organisation needs staff who are committed to meeting its aims and objectives, equipped to do so by adequate training and motivated by management to achieve their potential. It is the job of HRM to recruit, develop and retain quality staff. Large organisations with many employees on the other hand, will have a whole section to personnel.

Human Resource in McDonalds

The human resource department in McDonalds are responsible for recruiting the right staff for the right job, they are also responsible for training of all staff and keeping records on them. Staff welfare is also a task carried out by this department and probably one of the more important one’s. Human resource try to make sure that the staff of McDonalds is happy with where they are working and try to make sure they are not being harassed in anyway, such as sexual or racial harassment. For McDonalds, human resources also decide on what bonus each individual member of staff should receive. Human resources are vital for McDonalds to exist as they help McDonalds with their second objective which is:

  • Be the best employer

Without the Human resource department no-one would be keeping track of staff welfare, and arranging all of staff benefits and bonuses. Human resource are also responsible for training staff, without the correct training, McDonalds staff would feel that they were no good at their job, so it is vital that training is done right. The other tasks that Human resource carries out are:    

  • Facilities
  • Hygiene and safety
  • Quality assurance
  • Customer service

The company understands, accepts, respects and values the differences that make each person unique we aim to make sure that no job applicant or existing employee is treated less favorably on the grounds of their gender, marital status, disability, race, colour, nationality or ethnic origin and that no-one is disadvantaged by conditions, requirements and policies that cannot be shown to be just and fair the person responsible for this policy is the Human Resources and Training Director, but it is the responsibility of all employees, particularly managers and area management, to challenge questionable behavior and practices.

The Human Resources department monitors the effectiveness of the policy at regular intervals and takes such corrective action to ensure that the tasks are met with.

McDonald's places emphasis on the training and development of its employees. They aim to provide career opportunities for people to achieve their potential. The firm offers both full and part-time career opportunities, which helps staff to combine work with family or educational commitments.

Job progression is used to encourage employees who got their first job in the company to progress to management positions. These promotions are based on the performance of the staff member. Over 40% of McDonald's managers started as hourly-paid staff members in the restaurants. Over half of the company's middle and senior managers have moved up from restaurant-based positions.

Human Resource Planning

Human resource planning can be defined as:

‘The activity of management which is aimed at coordinating the requirements and the availability of the different types of employee’

This basically means that the organisation has the right number of employees and of the right quality. To ensure that McDonalds have the right number of suitable employees for their needs, they need a good understanding of the labour market in the areas where the company’s branch operates and the effects it could have. The external labour market for any business is made up of potential employees, locally, regionally or nationally, who have the skills and qualifications required at that time.

They need to take into account these few factors:

  • Local employment trends

The local unemployment figures are very important to McDonalds, theses figures of the unemployment give us the indication of the general labour availability and whether it would be difficult or not to recruit new staff. Looking at the local unemployment is also a good factor to look at because you are able to see which organizations have been laying off workers. This can be seen as an advantage to some firms, having the choice of people who have been made redundant, as they may have the right skills or even have skills that are occupational or that may be transferable towards similar work within the business. The study of local trends can show whether there is a demand for a particular type of job or not.

  • Local skills shortages

Local skills shortages are an important aspect to any organization’s human resource department, as it informs them about the lack of people with certain qualities in the local area. No mater what area of the world you are in there is always a decline in a particular area of a job, because skills for that particular job are becoming redundant. At the same time as that there are new skills and capabilities that are rising, and the demand for these skills will be rising faster than supply. Due to this, skills shortages occur and this can cause a considerable disappointment for local employers. Wages of people in that area of skills shortages will increase, and can cause a competition to recruit and keep hold of these scare workers. When a local skills shortage occurs, employees tend to seek and recruit in other geographical areas. Many organizations need to be conscious of any local skills shortages, and take actions, like development of training programmes to make required skilled workers come through. This is also beneficial to local schools, colleges and university courses that train people in the specific industries, as it support local employers.

  • Competition for employees

Many organizations will be concerned to know whether their competitors are growing. There may be very few top quality people who want to work for a company like McDonalds. It would be in the interest of McDonalds to seek these people and recruit them, otherwise similar companies would recruit them and become McDonalds rivals. A way to get around this is to attract these upcoming employees, one simple way is to increase the wage. However, this is not always the case, as it may cause financial constraints on the company.

  • Availability of labour

The amount of labour in an area depends upon the number of people who are able to work. Modern transport systems make it much easy for users to travel to and from work, but many organizations may need to make it much easier for individuals to carry out the journey. Many of the modern organizations tend to locate themselves on the boundaries of towns, its important that they gain the right number of the right sorts of people. The availability of labour will depend on factors such as age distribution of the local population, attitudes to women working and the degree to which young people continue on at school, college or go on to higher education.

Human resource planning also involves looking at how labour is organised within a business.

  • Labour turnover (wastage rate)
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The labour turnover ratio is used to measure the total number of employees leaving an organisation in a period of time, which is usually a year. It is calculated in percentage terms using the following formula:

                                Numbers of leavers in a period

Labour       =                                                                   x 100

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