Introduction Of The Importance Of Human Resource Management In The Company Assignment
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Human resource management is defined as the effective management of employees working in an organization. Human resources management helps the organization to full fill the gap between the performance of employees and the organization's objectives and strategies (Mathis et. al. 2016). Building efficient human resources management helps an organization achieve an edge over its competition.
The main objective of this report is to explain about human resources management of the case company McDonald. Mcdonald's is the world's largest food corporation serving over 69 million customers on daily basis. It was founded in 1940 as a fast food restaurant operated by Richard and Maurice Mcdonald, San Bernardino, California, US. Mcdonald's rechristened its business as a hamburger stand in the franchise with the golden arches logo (Spender, 2018). The company considers 3 main stools of their business which are franchises, suppliers, and employees. For training their franchise company offers a training academy known as Hamburger university, which has 275000 graduated employees, managers, and franchisees. McDonald's has restaurants in 120 countries, 37855 restaurants worldwide, and around 761,000 employees working in the company. The main focus of HRM of the company is to develop the personnel skills and abilities of employees to work with their full potential to achieve organizational as well as individual goals (Bratton et. al. 2021).
The report discusses the steps involved in the HRM of McDonald which are recruitment policies and strategies McDonald's, its selection process, and motivation strategies used by the company. The report also includes a critical analysis of the recruitment, selection, and motivation strategies of the company and what changes they need to implement in their current policies.
Discussion and Analysis
Company’s Existing Recruitment Strategy
Recruitment means finding a potential candidate and encouraging them to apply for the vacant position in the company. In case, a large number of people apply then the recruiter has more options to select the best candidate (Treweek, et. al. 2018). Recruitment means approaching, attracting, and making sure to supply the right people for a specific job position. Recruitment bridges the gap between who has a job and who needs the job. Some steps should be followed in the recruitment process, which is as follows:
Recognizing the hiring requirement -
in this step the manager identifies the need of employees in the company compared to the current workforce. If there is any gap then the management plans for the recruitment.
Analyzing the job –
this step involves determining the tasks and duties to be performed at the given job (Raven-Gregg et. al. 2021). Job analysis is a step that consists of the skills and qualities required to perform the job.
Preparing the job description -
a job description means a document that states the tasks, functions, duties, and responsibilities related to a particular job position. After recognizing the job requirements manager prepares the job description which is needed to be filled.
Make a person specification -
this step involves the preparation of a document that states the eligibility criteria for the job. Applicants who are applying for the job are required to mention their qualities and skills. This document helps the applicant to know if they are applying for the right job, which matches their qualifications.
Advertising the job vacancy -
advertisement of the job is an important part of the recruitment process. It helps in attracting applicants to apply for the job, it can be done internally as well as externally (DeCenzo et. al. 2016). In the case of Mcdonald's, their website provides information about the job vacancy, interested candidates can fill out the application form on the company's website.
Search for the right people -
in this step manager spot the most suitable talent, influence them and pursue them for sending the application for the job. The manager can search for the right people in both internal and external environments.
Mcdonald’s recruitment policy states that every restaurant is in charge of their outlet’s recruitment process. The company uses various ways to attract applications. Direct advertisement through the outlet, regional job fairs, and localized facilities. A good recruitment process attracts more applications for the available vacant post. The manager of a particular outlet conducts an interview and selects the best suitable candidate for the job.
Mcdonald's current staff includes 60% of employees who are below the age of 20 years. The company provides employment opportunities to young people who are freshers and looking for career opportunities (Taylor et. al. 2015). In an interview, the manager tries to get information related to the past performance of the candidate to predict future behavior in the company. The performance check will be based on facts, practical events, and, real-life situations rather than general responses.
In a nutshell, managers judge candidates and give ratings based on performance in the interview. The candidates who are the best out of all will be hired. Rejected candidates are informed about their rejection in written form and selected candidates are welcomed into the company by an induction program. The induction program will provide information about job roles, training, rules, policies, food preparation system, hygiene, and, safety measures (Kavanagh and Johnson, 2017). The new employee works on probation for 3 weeks and then according to the working skills and rating given by the manager it will decide whether the employee gets the job or not.
Company’s Selection Procedures
The selection process starts where the recruitment process ends. An efficient recruitment process results in a large pool of applications. Selection means recognizing the best candidate out of the all applications received which is best suitable for the job (Ed, 2015). In other words, selection means selecting the most suitable candidate and assigning the job. The selection process is very important for McDonald's because the selected person represents the whole business chain and their behavior will have a great impact on the business. The selection process includes the following steps:
Company’s Existing motivation
Motivation in the company is a very powerful tool that management uses to achieve team goals and also help employees to achieve their individual goals, which results in inspiring productivity and a good workplace environment. Motivation helps in encouraging employees to work to their full potential and also helps in creating good relations between managers and employees (Hu and Liden 2015) The practice results that proper utilization of human resources of an organization is the most significant advantage for the company, this help company to occupy a leading position in the market.
Referring to McDonald’s existing motivational strategies, McDonald's has a very effective motivational system that helps in increasing employees' performance which results in the company's productivity (Anantri et. al. 2021). The company follows the principle of examining its employee's progress in the field of productivity and quality. Mcdonald's follows four simple principles which provide the possibility to motivate employees and helps increase the performance of the workforce. The principles are as follows:
- Mcdonald's focuses on elaborating on different systems of motivation for every department of a company which provides detailed information about the strategies company is using for employee motivation. It also provides employees an opportunity to develop their skills and gain more knowledge.
- The most important part of employee motivation is to provide a clear view of the aims to be achieved. This principle states that personnel must have a clear vision of the aim that an individual need to focus on (Christensen al. 2022) It is better to have one aim at a time helps employees to focus on their goals.
- The aims must change with time, employees should not work on one thing for a long time, aims must change. By this method, employees will have the benefit to find new abilities and explore new methods of work. This will further help employees in skills development.
- Appreciation in post and salary is the most sensible point of employees' motivation system. Mcdonald's involves three key points in its motivation system which are financial encouragement, social policy, and nonfinancial encouragement. These three factors are part of Maslow's motivation theory, which states that all needs must be fulfilled step by step. According to McDonald's motivation system and strategy, fulfillment of employees' performance should be simultaneous, it is not necessary to fulfill all the needs of employees.
McDonald’s has an outstanding strategic human resource management that provides the company with talent, payroll, and performance solutions which are all our company's top priorities. Mcdonald's human resources management has an efficient incentive policy for its employees and also serves with great success (Rajawat et. al. 2020). The company uses expectancy theory which describes the law in process of external goals which drive people in the organization. This theory is used for analyzing the bonus system applied to employee incentives. In McDonald’s salary is fully paid to employees without any deduction, company also provides many different kinds of compensation that depends on the performance of employees. The managers of McDonald's effectively apply the expectancy theory which helps them to set up specific employee targets and plans for designing monitoring strategies and compensation plans. This system help employees to work with passion and make great hamburgers.
However, because of the high practice frequency of performance appreciation and clear standards regarding performance, the employees of the company are fully attracted by the expectancy and also by a free, equal, and challenging work environment (Perry and Vandenabeele, 2015). McDonald's has an effective and efficient motivation system that helps in increasing the performance of employees and also increasing the productivity of the company. McDonald's has implemented an effective motivational strategy that is based on various motivational theories like Maslow's theory and self-determination theory. These theories further help in directing managers and employees to focus on the aims and objectives of the company.
Challenges Identified Within the Recruitment, Selection, and Motivation Strategies
In today's market where there is very close competition, every organization is facing various challenges and one of the biggest challenges in this competitive market is the human resources management challenges (Pucik et. al. 2017). A big brand like Mcdonald's faces a lot of challenges in its HRM like demographic challenges, skills gaps, retaining the workforce, matching steps with the latest technology, and managing the global operations of the company (Stone and Deadrick, 2015). Not every employee of the company needs to work as required standard and it is also not possible that every strategy applied in recruitment, selection, and, the motivational system is favorable to employees. There are various challenges faced by the company in setting an effective plan or strategy to manage the recruitment, selection, and motivational process. The detailed description of challenges faced is as follows:
There are various challenges faced in the recruitment process of the company, the most important challenges are as follows:
There are various selection-related challenges in the company which are as follows:
Discrimination in the interview
- This challenge is very common in the selection process, it means the interview panel of the company is biased toward specific candidates. The discrimination may be related to the gender or cast of the candidate.
- This challenge occurs when the candidate is right for the job position but is not able to understand the company's internal culture like rules and regulations related to the work environment.
Candidates are getting multiple offers - Talented candidates are getting offers from multiple companies which means there is a high chance of rejection of the offer letter by the candidate even after getting selected (Cristian and ?tefania, 2020). When a candidate rejects an offer that is proposed by the company, it results in the waste of the company's resources.
When it comes to motivating employees there are lots of challenges, which are as follows:
Diversified workforce –
one of the main reasons behind motivation being a challenge for the company is the diversified workforce in the company. Different employees have different abilities, beliefs, attitudes, backgrounds, and most important thinking. The company is not aware of diversity challenges which create obstacles in motivating the employees in the company.
Different job roles –
change in the job role is a big challenge for the company because it affects employees and managers. When a company considers changing the job role of the employees or narrowing the hierarchy, affects the motivation of employees.
Behavioral factors –
vigorous nature also pose challenges in motivation which are caused by behavioral factor. The behavior of employees is affected by needs and expectation goals, if employees' needs and expectations are not fulfilled then it will impact employees' behavior and which will directly affect work.
Recommended Improvements and Justifications
There are so many different ways a company can improve its HRM which will further help the company to face the challenges and find effective solutions to them which will smoothen the work environment of the company. For facing challenges is recommended that the company should focus on building a strong employer brand, which will further help in attracting the right candidates for the job (Stewart and Brown 2019). It is recommended that the company should take the help of social media, it provides an excellent platform to highlight key points about a company, wellness activities, how inclusive is company towards employees' needs, etc. Investing more time in being specific and clear about job descriptions will help in attracting the right and qualified candidates for a job. It is recommended that the company should provide a flexible job description that gives priorities to some skills which depend on the needs of the job. The employees will feel more motivated when they can understand the primary aim of the company (Lorincová et. al. 2019). Giving them opportunities to ask questions shows how clear they are about company principles, mission, and, vision. Collecting feedback from employees about their work experience in the company and the environmental factors of the company helps managers make better motivational strategies for employees motivation.
This report discusses the importance of human resource management in the company. Hoe HRM helps the organization to fulfill the gap between the performance of employees and the organization's objectives and strategies. The report discusses McDonald's recruitment strategies and how the company is dealing with its recruitment process. It further talks about the selection process and how much it is important for Mcdonald's because the selected person represents the whole business chain and their behavior will have a great impact on the business. Next in the report is a detailed description of the motivational strategies of McDonald how the company is focusing on motivating its employees.
The report also states various challenges faced by McDonald's in recruitment, selection, and motivational process. It talks about how these challenges affect the company's performance. The report also recommends the best options to be followed for improving the management strategies regarding the recruitment and selection process, and what measures they can manager implement for better results. It further recommends some major points regarding the planning on improving the motivational strategies of the company.
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