Unit 3 Human Resource Management - Assignment

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Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 3: Human resource management
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1. Le Hai Minh
2. Dinh Quang Minh
3. Tran Tuyet Nhi
4. Nguyen Viet Duy
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Table of Contents
I. INTRODUCTION ............................................................................................................................................... 8
II. PURPOSE, KEY ROLES AND RESPONSIBILITY OF HRM FUNCTION ...................................................................... 9
A. WHAT IS HRM? ............................................................................................................................................ 9
B. ROLE OF HRM .............................................................................................................................................. 9
C. GOAL OF HRM ............................................................................................................................................. 9
D. IMPORTANCE OF HMR ............................................................................................................................... 10
E. THE OBJECTIVES OF HRM ........................................................................................................................... 10
F. PHILOSOPHY OF HRM ................................................................................................................................ 12
III. KEY HRM RESOURCE FUNCTIONS ................................................................................................................... 12
A. WORKFORCE PLANNING ............................................................................................................................ 12
B. RECRUITMENT AND SELECTION ................................................................................................................. 16
C. TRAINING AND DEVELOPMENT .................................................................................................................. 22
D. PERFORMANCE MANAGEMENT ................................................................................................................. 24
E. REWARD MANAGEMENT ........................................................................................................................... 27
IV. CONCLUTION ................................................................................................................................................. 29
REFERENCES .......................................................................................................................................................... 29

I. INTRODUCTION
MCDonalds Corporate
Establish: May 15, 1940
Founder: Richard and Maurice McDonald
Headquarters: Oak Brook , Illinois , USA
Number of headquarters: 36,000+ (global)
Product: Fast food
Website: McDonalds.com
McDonald's is a fast-food restaurant chain with about 36,000 restaurants in 119 countries serving 43
million visitors a day under its own brand name. The company was founded in 1940 by the brothers Richard
and Maurice ("Mick & Mack") McDonald. The foundation of today's successful business was acquired by
Ray Kroc of the McDonald's brothers and developed into one of the most successful fast food business in
the world. Mission of Mc Donald is to be the customer’s favorite place to eat and drink (Kempczinski, 2019).
The company's effort is to provide special experiences for customers worldwide. It also aims to develop
profitable business while increasing the development of the community (McDonalds Steel, 2019). Mc
Donald's vision is to become the best fast food restaurant in the world. Best includes providing quality
service, dishes with nutritional value and high cleanliness, from which every customer comes to experience
smiling when returning (McDonalds Steel, 2019). In order to achieve this success, the company's HRM

team has played an extremely important role in the company's development and in this report will
highlight the role and importance of HRM in the company.
II. PURPOSE, KEY ROLES AND RESPONSIBILITY OF HRM FUNCTION
A. WHAT IS HRM?
Human Resource Management is the process of recruiting, selecting, inducting employees, providing
orientation, imparting training and development, appraising the performance of employees, deciding
compensation and providing benefits, motivating employees, maintaining proper relations with employees
and their trade unions, ensuring employees safety, welfare and health measures in compliance with labor
laws of the land (Whatishumanresource.com, 2019).
B. ROLE OF HRM
Administrative
Clerical administration, recordkeeping, legal paperwork and policy implementation
Major shifts - Use of technology and outsourcing
Operational and Employee Advocate
Cooperate with managers and supervisors
Identify and implement needed programs and policies in the organization
Strategic
Address business realities
Focus on future business needs
Fit between human capital and business plans and needs (Coursehero.com, 2019)
C. GOAL OF HRM
The goals of HRM are to: Support the organization in achieving its objectives by developing and
implementing human resource (HR) strategies that are integrated with the business strategy (strategic

HRM). HR contributes to enhancing organizational performance by providing insights on the performance
issues affecting the organization and its employees. This means identifying the reasons for the issues,
exploring their implications for business and people management and conveying these messages to
management. The aim is to find new ways of meeting performance challenges. This means identifying the
reasons for the issues, exploring their implications for business and people management and conveying
these messages to management. The aim is to find new ways of meeting performance challenges
(iEduNote.com, 2019).
Thanks to the contribution of HRM in the company, the departments are connected and work closely
and effectively, thereby promoting the company's development and helping the company expand its
business market. of the fast food industry business worldwide.
D. IMPORTANCE OF HMR
Human resources are the valuable assets of the corporate bodies. They are their strength. To face
the new challenges on the fronts of knowledge, technology and changing trends in global economy needs
effective human resource management. Significance of HRM can be seen in three contexts: organizational,
social and professional (Bhattacharyya, 2016).
E. THE OBJECTIVES OF HRM
1. Defining Organizational Structure and Driving Productivity

Human Resource Management is a method to realize competence and drive efficiency in
organizational work. Therefore, its chief determination remains in accomplishing organizational goals. It
has to benefit organizations by outlining clearly defined aims and achieving them.
Apart from meeting the organizational goals, Human Resource Management also describes the key
problems to be taken care of and governs rules and urgencies. It engenders organizational efficacy, by
hiring efficient people, training them and effectively employing the workers.
It should also develop the service that organization provides to the society through structuring
employee confidence in a positive direction, which is at the front of effectual individual and group
performance (Bhattacharyya, 2016).
2. Building Coordination Between Organizational Departments
Human Resource Management is responsible for coordination and harmonious functionality within,
and between different departments. The resources are organized to achieve business objectives. Also, it is
to be made certain that there is functional utilization and all-out growth of human resources.
Human Resource Management should aim at making effective use of the workforce through proper
direction of the organizational sectors. This includes refining the conditions for successful outcomes, by
making appropriate decisions about human resource planning, recruitment, evaluation, rewards, training
and improvement and staff associations that are reliable and sustain the business strategy (Bhattacharyya,
2016).
3. Offering Employee Satisfaction
It has become harder than ever for companies to hire and sustain capable people because of the
rising global competition. Add to it, the lack of sufficiently skilled personnel. As such, it becomes an
undeniable priority for Human Resource Management to hire and train the right talent.
It should be ensured that there is an environment of respect among people in the organization, and
individual needs are catered to. The HR strategies, policies and ideas for individual improvement must be
cohesive with the organization’s strategic goals.

It should gratify individual objectives of employees so that personal and organizational objectives can
be aligned, conducive to reaching maximum productivity and establishing a certain competitive edge
(Bhattacharyya, 2016).
4. Keeping Up with The Societal And Ethical Models
It must be the responsibility of Human Resource management to ensure that legal, ethical, and social
environmental issues are suitably dealt with. It must make sure that the human resources are officially and
compliantly coped with and their requirements are recognized and fulfilled. It should also consider the
societal ethics and undertake social responsibility.
It must also try to enhance organization’s competitive advantage through social strategies, by
pitching in ethically to the necessities and challenges evolving in the society. The societal objectives also
involve legal issues such as equal opportunity and equal pay, which should be given due concern
(Bhattacharyya, 2016).
F. PHILOSOPHY OF HRM
Human resource policies should be integrated with strategic business planning and used to reinforce
an appropriate (or change an inappropriate) organizational culture, that human resources are valuable and
a source of competitive advantage, that they may be tapped most effectively by mutually consistent
policies that promote commitment and which, as a consequence, foster a willingness in employees to act
flexibly in the interests of the ‘adaptive organization’s’ pursuit of excellence. Resource dependence theory
states that groups and organizations gain power over each other by controlling valued resources. HRM
activities are assumed to reflect the distribution of power in the system. In the other side, organizational
behavior theory describes how people within their organizations act individually or in groups and how
organizations function in terms of their structure, processes and culture. It therefore influences HRM
approaches to organization design and development and enhancing organizational capability (the capacity
of an organization to function effectively in order to achieve desired results) (Sabry, 2019).
III. KEY HRM RESOURCE FUNCTIONS
A. WORKFORCE PLANNING
Workforce planning refers to the process of ensuring an organization has current and future access
to the human resources they need to perform effectively. Strategic workforce planning is to plan the

workforce in line with the organization's overall business goals and long-term vision (HRZone, 2019). It
includes the process of researching, determining human resource needs, making policies and
implementing programs and activities to ensure that the unit has sufficient human resources with the
qualities and techniques power suitable for carrying out work with high productivity, quality and efficiency.
Four steps of workforce planning
Step 1: Analyze your talent supply: To survive and grow McDonald's has effectively addressed issues
related to finance, production management, marketing and human resource management. Addressing
existing and emerging problems requires resolution and looking to the future to anticipate and deal with
problems that will occur in the future. Therefore, McDonald's human resource planning is to bring the
initiative, flexibility at work, minimize risks and increase efficiency. Since then, the work of human resource
planning is the basis for the efficiency of the use of human resources as well as the efficiency of production
and business activities of McDonald's (AnnualReport, 2018).
Step 2: Consider your future needs: McDonald's has constantly opened its market size, now
McDonald's is present in more than 118 countries with a chain of 35,000 restaurants across the country
continent, every day, McDonald's worldwide serves more than 70 million consumers, not only
guaranteeing to bring them delicious and safe meals, but also make them satisfied with McDonald's
service. McDonald's staff are mostly professional and friendly staff. McDonald said: "We always create
opportunities for employees to develop their career with the company; since then, together, we serve our
customers the best". Mcdonald was always concerned about the community, especially children and
families and bring joy and enrich people's lives. In the future, McDonald's needs to maintain and promote
its strengths, overcome weaknesses in all aspects (McDonald, 2019).
Step 3: Identify the gaps: Resources are still a difficult problem for businesses. Now there are so
many exciting jobs that McDonald's employees leave. This has worried McDonald's authorities and is
finding suitable solutions for it.
Step 4: Find the solution: In the difficult economic situation, it seems that investing in human
resources is a luxury for businesses, moreover it is a bet that its results cannot be recognized immediately
as trade in an item. However, instead of relying on destiny, being a talented and brave leader, McDonald
saw that this was a bet that they could control the outcome, bringing sustainable success. Thanks to the
early awareness of this right from the first days of its establishment and dubbed the "bet", but now,

McDonald's possesses talented people who have been 20, 30 years - seniority rarely seen in any
corporation any other (Vietnamnet, 2019).
McDonalds step by step to make the right plans so that it can employ the right number of staffs at
the accurate period that the company requires. Follow this process the company figures out the skilled
individuals are to be set at the right department and at the right time (Jurevicius, 2019).
The external environment greatly affects the operations of the business. After careful analysis of the
external environment, McDonalds set out the mission and goals of the entire business. From this goal,
Mcdonalds has set out strategies and manpower policies for the entire enterprise. This stage is called
workforce planning by the chairman of the board of directors and the general director, after consulting
with the lower management levels. All human resource requirements stem from the strategy of the
professional departments. This stage is also called task planning or human resource planning. Of course
the human resources department and other departments interact and interact with each other.
Understanding the relationship on the new human resource manager helps managers solve problems.
Moreover, social changes (such as sudden wars) can affect an organization's needs. That makes Mcdonalds
have a strategy to use manpower in a more selective and sophisticated way ... (AnnualReport, 2018).
The internal environment encompasses the mission and purpose of the company, its policies and
strategies, and corporate cultural atmosphere. Mcdonalds' strategic goals will influence its future needs.
When the forecast of growth, new investment to expand production or conduct a new job, a new product
... the demand for human resources will increase and vice versa, when there is a decline, or shrinking
production and business inevitably leads to reduced human demand. A new investment in technology or
a contraction in finance also caused Mcdonalds to reconsider his manpower. Because of this, Mcdonalds
has been recruiting employees in the company (employee promotions, e.g. from employees to managers)
to help the company achieve a lot of success (AnnualReport, 2018).
The pestle framework has several effects on the external workforce.
Political: Politics is the first factor that investors and business managers are interested in analyzing
to predict the safety level of operations in countries and areas where businesses are concerned, purchase
or investment system. Factors such as political institutions, stability or political volatility in a country or a
region are the initial signals to help administrators identify what is an opportunity or what is a business
risk to make decisions on investment, production and business in market areas within the national or

international scope. Political factors are very complex factors, depending on specific conditions this factor
will affect economic development within the country or internationally. McDonald's strategic managers
have developed the market and are sensitive to the political situation in each geographic area, forecasting
political developments on a national, regional and world scale to make decisions, appropriate and timely
strategy.
Social: The cultural and social differences in each region also significantly affect human resource
management. Therefore, depending on different regions and regions, McDonald has taken different
measures and policies on human resources.
Environment: In a market economy, managers do not only focus on market competition, product
competition but neglect human competition. Human resources are at the core of governance, companies
today are affected by a competitive and challenging environment. In order to survive and develop, there
is no way to effectively manage human resources. To accomplish this, McDonald has a reasonable human
resources policy, leadership, encouragement, reasonable promotions, creating an atmosphere of
attachment among employees. In addition, McDonald had a salary policy to keep employees working with
him, to improve the working environment, and to improve welfare regimes.
Economic: Due to the fluctuations of the economic market, McDonald has had personnel adjustment
policies, helping McDonald to quickly adapt to market fluctuations. When the economic market changed,
McDonald transformed businesses and adjusted personnel training policies accordingly. However, the
priority is to retain highly skilled and skilled personnel to always be ready to expand the business.
Therefore, McDonald has always had policies to develop, support employees, raise salaries, etc.
Technological: The progress of general science and technology in the world is increasing the pressure
of competition among businesses. Therefore, it is necessary for businesses to pay adequate attention to
constantly improving and innovating techniques and technologies to increase quality and lower production
costs. McDonald has applied the technology to produce quality products with the most advanced and
modern machines, serving quality meals for customers, increasing the prestige and trust in using
McDonald's products from the customer. Therefore, McDonald's needs skilled people, skillfully operating
machinery in combination with craftsmanship effectively.
Legal: The creation of a healthy or unhealthy business environment depends entirely on legal factors
and economic state management. The promulgation of a quality legal system is the first condition to ensure

an equal business environment for businesses, forcing businesses to do business in a right and responsible
manner. However, if the legal system is not complete, it will also have a significant impact on the business
environment, causing difficulties in production and business activities of enterprises. Will affect the
production and business activities of the business. The problem for businesses is to understand the spirit
of the law and comply with the provisions of the law, research to take advantage of the opportunities
provided by the provisions of the law and to have promptly respond to risks that may come from legal
regulations to avoid damages caused by a lack of legal knowledge in business.
The human factor here is the employee working in McDonald. In McDonald each employee is a
separate world, they differ in management capacity, aspirations, interests ... so they have different needs
and desires. Human resource management must carefully study this issue to find the most appropriate
management measures. Along with the development of science and technology, the level of workers is
also improved, awareness is also better. This affects their outlook on work, it also changes the
requirements, satisfaction and satisfaction of their work and reward. Through different periods, the needs,
tastes and preferences of each individual are also different, which greatly affects McDonald’s personnel
management. The task of McDonald's personnel work is to understand these changes so that employees
feel satisfied, satisfied and attached to McDonald because McDonald’s success is based on a market that
is highly dependent on people in many different aspects.
B. RECRUITMENT AND SELECTION
1. Recruitment
Recruitment is the recruitment of a company or unit to ensure resources to help businesses operate
and develop, successfully complete the strategies set out. During the implementation process, the
recruiting department will screen and select qualified people to meet the needs of the business.
Roles of Recruitment:
 For Businesses: Provide business with a team of experienced, creative and dynamic workers in
accordance with the requirements set out by the business. Work well to help businesses fulfill their
business goals most effectively, because good recruitment means finding people who perform the
work with competence and quality to complete the assigned work. In order to improve business
efficiency, develop employees and meet the requirements of business operations in the context of
globalization. To create the best quality human resources, thereby creating sustainable
competitiveness for businesses. Recruiting good human resources makes an important

contribution to creating the "input" of human resources, it determines the quality, capacity, staff
qualifications, meeting the personnel requirements of the business. Helping businesses reduce the
burden of business costs and effectively use the budget of the business and well fulfill the business
plan.
 For employees: Helping employees in the business to better understand the philosophy and views
of the managers, thereby guiding them according to those views. Create an atmosphere of
emulation, a competitive spirit within the employees of the enterprise, thereby improving business
efficiency.
 For society: Helping the implementation of socio-economic goals: workers have jobs, earn income,
reduce social burdens such as unemployment and other social evils. At the same time, the
recruitment of human resources of the enterprise also makes the best use of social resources.
Six steps of recruitment:
Step 1: Prepare the recruitment plan.
Step 2: Recruitment notice.
Step 3: Receive and select candidates.
Step 4: Interview and test multiple choice.
Step 5: Probation.
Step 6: Recruitment decision.
Companies are now using the methods to recruit employees:
Internal recruitment:
This recruitment method selects the candidates who are the existing employees in the company or
uses the people in the company as brokers. Employers can use the following methods:
Recruitment notice: this is a notice board about the positions that need to recruit people. The HR
department can send a letter to all employees in the company to provide them with detailed information
about the job as well as its requirements.
Introduction of officials and employees in the company: based on the relationship of colleagues in
the company with potential candidates, employers can find people who are suitable for the job. . Many
large companies are still applying this recruitment process. They also offer preferential policies for
employees who have merit in introducing talents to the company, which not only encourages human
resources but also motivates existing employees for the company.

Based on employee information in the Employee Records folder: Each company always makes a list
of employee records stored in the HR management software. In particular, there are detailed information
about the person, such as skills, education, career experience and factors to consider for the vacancy.
 Pros: With the process of recruiting personnel by this method, by using current human resources,
employers do not have to waste time and money for other headhunting brokers. Moreover, this is
also a way to reward the employees who have devoted to the company. For example, the company
is looking for a "manager" position, after considering the current capacity, the company promotes
the promotion to higher employees. This also makes them more excited and will also stick with the
more company. In addition, they are well acquainted with colleagues as well as the company's way
of doing things, and things are also getting easier.
 Cons: With this recruitment method, the company may face a difficult situation in managing
personnel, because the internal is opaque. Whoever wants to be promoted but not in a position,
there may not be many people who do. Therefore, it may lead to an underground struggle with
each other. Thus, employees will conflict with each other, affecting colleagues and sometimes, the
work efficiency is not high. In addition, by asking the company staff to introduce candidates, the
pull in the company is inevitable. Therefore, the company needs to have careful thinking.
External recruitment:
This recruitment method selects candidates outside the company. Employers can use the following
methods:
Post ads on the media: employers can post jobs via TV channels, newspapers, magazines and radio.
Currently, with the development of information technology, the most convenient method is via the
Internet. In Vietnam, there are many websites that support large recruitment. Employers only need to post
job information with a description and job requirements, then candidates will submit a resume online. Or
employers can post information on the main website.
Job placement center: for companies without human resources, this method is most popular. These
centers are usually universities, colleges and local labor authorities.
Job fair: this is also the place where employers contact and discuss directly with potential candidates. For
example, a job fair - a bridge for human resources at Hanoi Banking Academy. This is also an opportunity
for large enterprises such as Vietinbank, Sacombank, BIDV ... to find promising candidates, boosting human
resources.

 Pros: This method gives the company a lot of talent as well as new ideas. If you meet a candidate
who has a lot of work experience, the training cost is also less expensive. This method also creates
fair and equitable career development for everyone in the company.
 Cons: However, recruitment costs are also quite high, especially through employment agencies.
The company must pay them a hiring fee for recruiting services. In addition, this can also cause
significant difficulties for the management of available human resources in the company, because
of problems arising with internal employees who want to be promoted or valued. Because of the
newcomers, the company also needs a certain time to revise the organization chart.
The ways to build recruiting brand-named of company:
a. Assess the situation
In order to create a reliable and effective recruiting brand, HR Managers need to look back on the
image of the current business from the working environment, leadership, corporate culture and
remuneration mechanism. Both inside and outside the business can be used to evaluate employers' brand
status.
b. Define EVP
EVP (Employee Value Propositions) is a set of distinct attributes and benefits that motivates
candidates to apply for a business and the current employees associated with that business. (Jason Huynh,
2017). A recruiting brand must convince the candidate that the business is a great place to work. And to
define what a "great working environment" is, or define EVPs, requires profound internal insight.
c. Spread the brand with images
Words may be important, but the pictures are the most effective form of communication.
Many people say that they are more likely to interact with the business if the business posts the image on
any media. This image can include photos or videos of businesses. Their content can be moments of
employees at the company, some internal activities, the company's image at some events, etc.
d. Building a business recruitment page
Most workers look for job opportunities via the Internet, and most have at least one social media
account for work and personal purposes. So why not appear where they can see it?
A professional recruitment website (website and on social networks) must ensure the criterias:
Visible display
Simple to use
Minimize the direct registration process
Demonstrate the image and corporate culture

Compatible with mobile
Constantly updated
Interact regularly
e. Create recognition from the community
Workshops, community events, awards, press releases, meetings with representatives from the
government, industry departments ... do not contribute directly to revenue but are of great help to
recruiting brands in particular and corporate brands in general.
f. Develop a business description
A clear, coherent business description is not only a minimum for assigning responsibility to company
employees, but also helps to screen out the brightest factors, which is evidence of the company's
professionalism. Instead of trying to be creative but elusive, a precise job description will be more effective.
Clear business titles and keyword optimization for search.
Provide a specific picture of the role of the position for the business.
The head of the work is clearly specific.
Details of benefits and working environment.
Job requirements should be kept to a minimum.
g. Optimize candidate experience
Understand the position and the role of the new recruit.
Ensure easy application process for candidates.
Respond to candidates quickly and follow-up regularly.
Provide detailed interview information.
Respect candidates during the interview.
Stay in touch with potential candidates after hiring.
Be open to giving and receiving comments.
h. Call for sharing from employees in the company
Referring to candidates is considered the most effective way of recruiting because of low cost but
still ensures high quality of candidates. However, this activity is not so common, just because the
employees themselves do not care about it. A well-developed program for introducing internal candidates,
associated with the company's culture and policies, will not only help the company gain a large pool of
candidates, but will also bring a corporate image. career goes more widely.
i. Evaluation and measurement

Building a recruiting brand is a necessary business, but it is not so that the recruitment efficiency
measurement for business (or ROI measurement) is ignored.
The degree of employee engagement with the job.
Percentage of employees who remain with the company after the probation.
Quality new recruits.
Cost for new recruits.
Number of candidates.
Recruitment period.
Mc Donald’s recruitment strategies:
The company does not distinguish employees according to their service time when they are recruited.
Because efficiency is a major factor in determining wages, it is not uncommon for newly recruited middle-
aged workers to be compensated regardless of their age. All recruitment is published through the
Company's website. Language skills are essential for those who work in management or research &
development, but sales expertise is valued more than the language level in the sales field
2. Selection
Selection is the process of selecting or finding the right candidate, who is best suited for a certain job
position in an organization. In other words, selection can also be interpreted as the process of interviewing
candidates and evaluating their qualifications, necessary for a job they apply for and then selecting who
meets all conditions for this position.
Roles of Selection:
Recruiting is very important because when new employees fit the job requirements, they will increase
cooperation and commitment in the job.
Good selection will help the organization reduce the costs of re-recruiting, retraining as well as avoiding
the risk of loss during the employment process in particular and the production and business process in
general.
Good selection helps the organization to have a suitable workforce, meet the immediate work
requirements and ensure the organization's future development.
Core values: According to the HRM report of McDonalds, people(employees) are the most important
factor at McDonalds, they find only those people who can feel, think, express themselves, especially, who
are always try their best, learn, hence grow. They say that employees’ growth is the organization’s growth.

Besides, McDonalds provides in-house training for new people who have no previous work experience
because they can easily train them in adapting to the organization's different culture (Atif, 2014).
Justified Selection: The selection is entirely based on merits matching the selection criteria without any
bias for gender, race, nationality, age and color.
Selection process includes four steps: Recruiting candidates, W-I-S, Initial interview, References Checks and
Final interview (Atif, 2014).
 Recruiting candidates
Firstly, candidates will send their profile to the recruiter, after the selection process of the
candidates, the recruiter make a short list that includes the names of the people through the
selection.
 W-I-S
At McDonalds, the candidate has to do the written test to assess whether employers are able to
meet the general practical requirements of the job.
The HR department conducts and designs the test when they need to recruit.
 Initial interview
The ONE to ONE interview made by the restaurant manager that can ensure fairness and accuracy
in the interview.
 Reference Checks
Recruiters look at the information provided by the candidates, then they will check whether it is
authentic, valid or not.
 Final interview
Candidates who passed the test are called to the final interview. Selection process of McDonalds
are so strict; the interview is done by five or six interviewers.
Selection methods: There are many kinds of selection methods like interviews and CVs, test academic
background - experience, using tests (test of cognitive ability, test interests and personality), online
screening and interviews and so on.
C. TRAINING AND DEVELOPMENT
Learning: the process of absorbing information and retaining it with the goal of increasing skills and
abilities in order to achieve goals – but it is more than that. Learning is what we go through when we want
to be equipped for non-specific and unexpected situations and the two are not mutually exclusive. While

you do learn to do something specific, you are also inadvertently equipped with the knowledge and skills
to face future challenges. In essence, learning is all about equipping a person to tackle not just today’s
issues, but preparing to creatively come up with ways to tackle tomorrow’s issues.
Development: the growth or realization of a person’s ability and potential through the provision of
learning and educational experiences. McDonald’s is a large organization with many employees working in
different departments of the company. Every year the company hires many people for it executive as well
as managerial posts. In McDonald’s there are different types of development plans for management for e-
g.
Training: the systematic application of formal processes to impart knowledge and help people to
acquire the skills necessary for them to perform their jobs satisfactorily. The employees are given training
in the “Training Room” in the form of lectures. Firstly, the employee is given the on-job training and then
he/she is given the actual task to perform. McDonald’s arranges summer crash courses and wrap section
for the employees. Job Rotation is done within the specific departments and not outside the departments.
The benefits of Training and Development:
 Enhance the value of employees: give employees an in-depth understanding of their duties and
responsibilities while increasing their confidence. In addition, an effective Training and
Development program helps businesses improve their competitive position compared to
competitors in the same industry.
 Reduce employee turnover: most employees will feel more satisfied with their current job if they
receive the benefits that businesses bring through the Employee Training and Development
program such as professional knowledge, skills or opportunities. promotion. For an employee who
is satisfied and connected with the business, the chance of them quitting will be reduced, thereby
reducing the cost of hiring significantly.
 Repel the weakness: not everyone is born perfect, employees will certainly reveal weaknesses at
work. Therefore, businesses should focus on investing in a Training program that enhances the skills
that employees really need to develop and a Development program that helps employees reach
new heights, bridging gaps. professionally between individuals.
 Improve employee satisfaction level.
 Improve products and strategy.
 support the reputation of the company.

D. PERFORMANCE MANAGEMENT
Performance management is a set of systematic periodic processes for developing employees who
perform their jobs to the best of their ability and understanding (AIHR Digital, 2019). It is the whole process
from when an employee starts working at the company until the employee finishes the job, leaving the
company. The importance of performance management helps align the goals of an individual, a group
with the goals of the company; Increase the opportunity for managers to interact with employees, improve
skills to help an employee do their job better. It is important to engage an individual with the organization
because, in the process, the two sides will set a common goal, from which both will try to achieve that
goal, making the company much better more profit (Heathfield, 2019). To manage employee performance
in the company, managers will have to apply the cycle of performance into this process. So performance
management is a model that helps managers and employees achieve the company's goals in the best way
through the structured employee development process. The goal of a performance cycle is to improve a
company's performance. The performance management process consists of 4 stages: planning, act,
monitor and review. The first stage is planning. This is the fundamental stage of the entire cycle; it is
usually done at the beginning of the year. This phase includes the development of plans to improve skills
for employees. At the planning stage, managers set an overall strategic plan for the company, followed by
identifying performance goals for each employee. Often, employees will have SMART goals. This goal is
often a personal challenge, but employees can achieve SMART goal. It includes Specific, Measurable,
Achievable, Relevant, and Time-bound. Each employee will have a personal goal, consistent with the goals
of the company (Valamis, 2019). The second stage is the act – performance activities. According to
“Armstrong’s handbook of human resource management” (Armstrong and Taylor, 2014), this stage is the
stage of realizing the goals that managers set, implementing plans to improve the performance of each
employee, implementing personal development goals to bring high efficiency in the work. During the "ACT"
phase, managers are responsible for directly coaching their staff, carefully monitoring the process and
receiving and providing feedback (Armstrong and Taylor, 2014). The monitor phase is the third stage in
this cycle and it is the main function in achieving the set goals. Monitoring includes monitoring the increase
or decrease of performance and providing feedback on the progress of achieving the set goals. For
effective monitoring, managers should monitor monthly or quarterly to closely monitor the performance
development process, if employees need help and support to solve problems. Born in the process, it can
respond promptly (Valamis, 2019). And the final stage is the review phase. This is usually done at the end
of the year when managers and employees have a meeting to review and discuss what the past year has
done, the achievements of each employee, and how many items have been completed. targets and set

new goals for next year. This meeting is the meeting to end the cycle performance process and to start this
cycle again starting from the planning stage (Thepeakperformancecenter.com, 2019).
Source: Armstrong’s handbook of human resource management 14th
Currently, there are many ways to evaluate employee performance such as evaluation through
technology applications, paper assessments, etc. depending on which is better suited for which company.
Mcdonalds has reviewed and selected the employee evaluation method is 360-degree feedback. 360
Degree Feedback is a method of evaluating employees by collecting data about them in real-life situations
and about the performance qualities they show through the process of aggregating information from
people. Personal contact is assessed. This form of evaluation depends not only on the comments from the
immediate superior, but also on the observations, opinions, and assessments of its peers, subordinates,
customers and all regular contacts contact with you in the work environment (Ieit.vn, 2018).
McDonald’s will evaluate performance twice a year. Before evaluating performance, the company
must also plan and set goals for each employee. Each employee will have their own target to suit each
person according to their capabilities and abilities. Next, the manager of McDonald will have employees
perform these targets for a certain amount of time during the performance evaluation process. When

employees implement them, the manager will be responsible for monitoring the implementation process
of the employee's target. Not only managers but also colleagues, subordinates, customers and all people
who are in constant contact with employees in the McDonald environment can also be closely monitored
because they will eventually be evaluated but their partner. But they do not have the rights as a manager.
At the stage, there will be many unexpected risks, so the supervisor must closely monitor their staff so that
they can solve the problem as well as help the staff solve the problem. This is also an important stage to
assess whether employees in McDonald are doing well and productivity or reduction. And finally, managers
will sit down with their staff to comment on the past performance process. What employees have done,
not good at what point will be talked openly by managers and help employees know their weaknesses to
correct mistakes. During this period, McDonald will design a 360-degree feedback method, which will be
distributed to all employees working in McDonald assessing themselves and their associates and of course.
The manager will also have to do this assessment to be able to have the most objective assessment of the
employee's process of achieving the goal. After all the staff assessments are collected, they will have to
aggregate the ideas into a report. This report will help McDonald assess individual employees' qualities
and competencies and rank them on a scale of 1 to 5 points (Misa.com.vn, 2019). Base on this method,
the McDonald’s manager can measure the amount of reward to give to their workers. Not only can
managers evaluate employees, but employees can also evaluate managers. Employees can show what they
like and dislike about management, what they want, what they want to change so that McDonald's can
thrive in the fast-food market.
McDonald's has succeeded in using the performance management cycle to apply to human resource
management, connecting employees and management relationships, and making them more engaged
with the company. The application of the cycle of performance along with 360-degree feedback has helped
McDonald's have many strengths in how to manage the company's personnel. First of all, performance
management helps employees develop their goals easily. If this performance process is performed well,
bringing high efficiency, McDonald's employees will be more responsible in their work, increase
motivation, and help managers understand more about the ambition of their career. employees and
identify their development opportunities. In addition, this management will help McDonald's clean up poor
employees and train and manage to prevent employees from being able to do their jobs. This helps
managers not to waste time training people who are not suitable for the job. On the other hand, the main
benefit of this is that McDonald's improves the performance of employees and the company and fixes
outstanding mistakes in the development process (Smart Church Management, 2019). The 360-degree

feedback method makes it easier for McDonald to collect opinions from people so the evaluation results
are also more objective than avoiding gender, age and so on. Moreover, employees will receive two direct
responses from managers and colleagues’ feedback. So that they know their strengths and weaknesses to
develop strengths and improve weaknesses, helping them improve and improve their performance. The
diverse assessment process will provide an overview, covering all aspects of each person's work. Many
people think that this method is clearer and more reliable than the personal assessment methods from
only McDonald's manager or superiors. This method is a great opportunity to identify additional training
or training needs if needed, which will benefit both personal and organizational development (Ieit.vn,
2018). In addition to the strengths of the performance management process, there are still some
weaknesses. It is the internal competition between the employees at McDonald. They will compete for
the number of jobs, positions in the company and salary. Since then, there will be many conflicts among
employees that divide the company, resulting in reduced performance. in addition, it may be biased from
the manager to the employees they love or their family members are working in McDonald's. This will
cause employees to lose trust in managers, disagree at work and adversely affect the relationship between
employees. In short, these strengths and weaknesses are still ongoing, and McDonald is looking for ways
to address weaknesses and develop strengths (NirupamaA, 2017).
E. REWARD MANAGEMENT
According to Armstrong and Taylor (2014), he gave the definition of reward management that is
related to the strategies, policies, and practices necessary to ensure that the values of people and their
contributions to achieving the target of organizations, departments, and groups are recognized and bonus.
Management of reward relate to non-financial rewards such as recognition, learning and development
opportunities and increased job responsibilities, as well as financial rewards. The reward strategy
determines what an organization wants to do about rewards in the next few years and how it intends to
do it. It can be a huge issue, simply pointing out the general direction by which reward management should
go. In addition, or alternatively, the reward strategy may provide a list of specific intentions related to
specific aspects of reward management. The total reward is a combination of financial and non-financial
rewards for employees. Different aspects of rewards, namely basic salaries, back pay, employee benefits
and non-financial rewards, including internal rewards from the job itself, are interconnected and
considered is a unified whole and coherent (Armstrong and Taylor, 2014).
Reward management have tow type is financial reward and non-financial reward. Financial rewards
include work-based wages, providing wages related to the value of work and people-based wages,

providing rewards for recognizing an individual's contribution. They also include employee benefits and
pensions and financial recognition programs. Non-financial rewards focus on the need for people to be at
different levels of recognition, achievement, personal development, and acceptable working conditions.
These include non-financial recognition of achievement, design of work completion, providing people with
scope to develop their skills and careers, and providing a high quality work environment. of work-life and
the appropriate relationship between work and private life (work-life balance) (Armstrong and Taylor,
2014). The most obvious difference between a financial reward and a non-financial reward is that one will
reward employees and the other is rewarded mentally, achievements as well as advancing the ranks in the
company. In addition, the financial reward can lead to conflicts within the company between employees,
cracks in relationships and confusion among employees. And the non-financial reward will not incur any
conflicts other than a healthy relationship being encouraged. The financial reward is more negative
because employees only focus on money and do not care about professional ethics. Non-financial is more
positive for employees in the company, employees will focus more on emotional and psychological
benefits.
At McDonald's, we use both ways financial reward and non-financial reward. McDonald will raise
salaries and periodic bonuses for hard-working, long-term employees with the company. We will also
award cash to employees who complete the performance or exceed the target. The salary of part-time
staff will be 21,000 VND per hour but if employees meet the criteria or meet the criteria and managers set
out, they will be increased to 23,000 VND per hour. In addition, McDonald's will also pay employees an
extra salary when they go to work on holidays. On these days, employees will be paid up to 300% of the
salary for a working day. Moreover, when employees are on Tet Holiday leave, they will receive Tet bonus
based on their inherent salary. As usual, McDonald's bonus will be a bonus of 1 month's salary or more
based on each rank. And we will still reward each employee's productivity target. Moreover, the company
will also apply the 13th month salary bonus to employees. On the other hand, non-financial reward is also
a way to reward employees to improve their morale at work. Non-financial rewards are a spiritual gift for
employees to release stress after work. McDonald's will organize employees to travel periodically, all costs
will be paid by the company. In addition, McDonald's supports medical insurance, labor insurance,
unemployment insurance, labor accident insurance 24/7, food and beverage benefits, night shift and
holidays, and parking allowance, take part in annual health checkup, free staff uniforms, and so on
(Mcdonalds.talent.vn, 2019). And above all, when you work at McDonald's, you are well-trained in a
professional environment that not every working environment can bring you. Both of these rewards are

suitable for McDonald's as well as employees. In general, reward management does not need much
improvement because these bonus policies have been studied and censored over the years to come up
with this appropriate form of reward.
IV. CONCLUTION
McDonald's has grown strongly in the fast food market today based in part on the proper
management of its board of directors and managers. From that, we can see the importance of human
resource management, it has promoted the development of the company based on the set goals. Through
the processes and assessment of human resources, McDonald was able to find more talented employees,
choose the right position in the company for each person, creating goals for employees to improve their
skills. productivity to bring benefits and benefits to the company.
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