Human Resource Management: A Case Study of McDonald's

This presentation discusses the human resource policies and strategies of McDonald's, along with the challenges faced by the organization. It also explores the effectiveness of their strategies and the impact of global culture on local cultures.

NAME OF THE STUDENT
Human
resource
management:
A CASE
STUDY OF
MC
DONALDS

INTRODUCTION
– The Human resource Management is understood to be a crucial part of the
organization and with respect to this, it becomes considerably important by the firm
to ensure that the different Human resource Policies as formed by the firm need to be
in alignment with the goals of the organization so as to ensure success (Noe et al.
2017)
– The given presentation is based on the discussion on the Human resource policy and
strategies of the Mc Donald`s and the different issues as well problems which are
being faced by the organization.
– The information which will be provided will be supported by theories and relevant
data.

STRATEGIC HUMAN RESOURCE
MANAGEMENT
– The Strategic Human resource Management can be rightfully defined as the
practice of developing, attracting, rewarding as well as retaining the employees
for the benefit of the organizational employees.
– In the procedure of the Strategic Human resource Management, the different
departments in a firm do not work separately and instead work along with one
another (Wamuuru and Jamleck 2018).
– While the Human resource management considers training, recruitment and
hiring of the employees, the Strategic Human resource management considers
aligning individual goals to organizational goals.

STRATEGIC HUMAN RESOURCE
MANAGEMENT

DIFFERENCE BETWEEN SHRM AND HRM
Strategic Human Resource management Human Resource Management
The Strategic Human resource management can be
understood to be a managerial function which directs
the employees towards the goals of the firm.
The human resource management on the other hand
tends to imply the governance of manpower of the firm
in a structured manner.
The SHRM IS concerned with Internal and External
relations.
The HRM Is largely concerned with the employee
relations in a firm.
The SHRM has a long term perspective The HRM has a comparatively short term approach.
The SHRM follows a rather integrated approach (Wright
and McMahan 1992).
The HRM tends to follow a fragmented approach.

COMPANY OVERVIEW
– The Mc Donald's can be
understood to be the globe`s fourth
largest employer when considering
the number of employees which
can be understood to be 1.9
millions in number.
– The restaurant is the world`s largest
chain with 34480 restaurants
present in 119 countries.

ABOUT THE FIRM
– The firm Mc-Donald's is an
American fast food company which
was found in the year 1940 and can
be stated to be a restaurant which
was operated by Richard and
Maurice Mc Donald.
– The firm has its headquarters based
in Chicago, the United States
(McDonalds 2019).

Strategic business goals
and objectives
– STRATEGIC GOAL
– The strategic goal of the firm is to place the customer at the centre
of all the operations.
– STRATEGIC OBJECTIVES
– The customers are the reason why the firm is in existence. The firm
aims to provide them with high quality food and a welcoming
environment which provides them with a greater value
(Torrington 2009).

Strategic human resource
goals and objectives
HRM Goals
– The Mc Donald`s aims to ensure that it provides the different employees with an
environment which will make the work more useful for them.
– In addition to this, it will also ensure that the firm is successfully able create a welcoming
environment for employees and customers alike.
Objectives
– To hire the best employees
– To ensure that the firm is able to provide an environment to the employees which will
support them and make their career prosper.

ORGANIZATIONAL
STRUCTURE OF THE FIRM

Hr strategies, plans and
policies
Recruitment
– The firm usually hires young graduates and high school drop outs.
– Most of the employees are under 20
– The work at Mc Donald's is probably their first job
– The firm hires on the basis of capabilities and skills
Staff training and development
– The staff undergoes a rigorous training before they are hired for the job.
– They are provided training regarding customer service (Youndt et al. 1996).
– Additionally, they are also provided training on the overall operations of the firm.

Hr strategies, plans and
policies
Performance evaluation
– The performance evaluation and appraisal is done based on the competencies of the
employees.
– The review usually takes place twice a year (McDonalds 2019).
– The review areas are based on the overall firm strategy and individual job description of
the different employees.
Employee motivation
– The manager of the organization is required to provide the employees with considerable
leadership and motivation
– Moreover, bonus is also provided to the employees.

Hr strategies, plans and
policies
Employee retention
– The employee retention at Mc Donald's is considerably low.
– This is because, people at Mc Donald's are generally short term
employees looking out for better job opportunities.
Grievance Handling
– The employee handbook comprises of exquisite details on how
employee should carry out the procedure during the grievance.
– In case of any emergency, the immediate manager has to be

EFFECTIVENESS OF THE
STRATEGIES
– The firm has formed considerable goals and objectives with respect
to the human resource of the firm.
– In addition to this, they have come up with various policies as well
as strategies.
– However, not all their strategies have been successful.
– The firm is unable to retain the employees for a longer time frame
because they are unable to provide them with adequate support and
a suitable workplace environment.
– Additionally, the grievances policy are very weak and poor which
makes it difficult for the employees to get their queries resolved.

EFFECTIVENESS OF THE
STRATEGIES
– Additionally, there have been various complaints from the side of the employees
that they are not respected and treated merely as objects.
– However, many of the initiatives of the firm have been successful and the results
can be stated to be as follows:

CHALLENGES FACED BY
THE FIRM
Ethical and cultural issues
– The different ethical issues as faced by the firm are as follows:
– The different employees as present in the country are unwilling to work with
certain types of meat in accordance with the religion.
– The dress code of the employees in the firm is against the standard set as per
their beliefs.
Safety issues
– There are certain standards which the firm will be required to follow in a
restaurant and hence, with respect to this, Mc Donald's often fails to follow

Contemporary Issues faced by the
firm
– Some of the employees who are not well
trained and well aware often mistreat the
different customers and then end up , spoiling
the overall image of the organization.

THE COMPANY CULTURE

MC DONALDS-CULTURE
– The organizational culture of the firm supports the firm`s
positioning in the business environment.
– The culture of Mc Donald's is known to have attracted various
employees around the globe.
– The culture of Mc Donald's strongly encourages learning and
development of the employees.

Features of MC DONALD`S
CULTURE
1.People-centricity
2.Individual learning
3.Organizational learning
4.Diversity and inclusion

How the Global culture is
affecting the local cultures
– The Global cultures have had a huge impact on the Local culture as
well as the general society.
– There are certain positive as well as negative impacts of Global
culture on the local culture
– The positives are as follows:
– Increased cultural understanding
– Flexible labour market
– Enhanced International economic participation.

– The negatives are as follows:
– Loss of local labour
– Cultural violence (Storey 2007)
– Loss of local traditions
How the Global culture is
affecting the local cultures

SHRM policies affecting
the culture
– The SHRM Policies which will have an impact on the overall culture of the firm
can be stated to be as follows:
– Some Human resource policies may bring about negative impact on the culture
with respect to the dressing of the employees or the code of conduct to be
followed (Redman and Wilkinson 2009).
– Additionally, in lieu of profit making, some firms may lose out on the ethical
aspects which may go against the culture of the firms.

What are the cultural competencies
required?
– The cultural competency which is required in the employees can be stated to be
as follows:
– The employee must be willing to talk in different languages
– The employee must be willing to accept any dress code
– The employee must embrace diversity (Guest 1997)
– The employee must act in accordance with the overall objectives of the firm.

Linking of the company policies and
procedures with regard to
international law
– The Mc Donald's is committed to carrying out business ethically
and in compliance with the law as well as the spirit of the
organization.
– This is often reflected in the overall values of the firm.
– The employees are expected to complete a training on anti bribery
laws and other laws as well (Delaney and Huselid 1996)
– The company also follows the different human rights and policies.

Linking another organization in the
similar industry and and analyzing
how they differ
– The human resource at Burger King cannot be stated to be as organized as that
of Mc Donald's
– This is because, Burger King has not set out well defined policies for itself such
that Mc Donald's has set (Cascio 2015).
– The difference is suitable for Mc Donald's as they will have more employees
with them.

Analyzing how the goals
are related to the legal
structure– The goals of the firm are related to the legal structure in the following ways:
Contemporary issues
All the firm faces a huge number of contemporary issues like, social media scandals, health and safety
hazards, the organization is known to treat the employees responsibly (Boxall and Purcell 2011).
CSR
The company engages in various Corporate Social responsibilities as well. In lieu of this, the firm
engages in operations like Education, women empowerment and environmental safety.

The CSR Initiatives of the
Firm

REFERENCES
– Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Macmillan International Higher Education.
– Cascio, W.F., 2015. Managing human resources. McGraw-Hill.
– Delaney, J.T. and Huselid, M.A., 1996. The impact of human resource management practices on perceptions of organizational performance. Academy of
Management journal, 39(4), pp.949-969.
– Guest, D.E., 1997. Human resource management and performance: a review and research agenda. International journal of human resource management, 8(3),
pp.263-276.
– McDonalds 2019. FAQS –Performance Appraisal. [online]. Available at: https://www.mcdonalds.com/gb/en-gb/help/faq/18529-can-you-provide-information-
on-mcdonalds-performance-management-system-and-performance-appraisal.html (Retrieved on: 22 Feb. 2019).
– Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management: Gaining a competitive advantage. New York, NY: McGraw-
Hill Education.
– Redman, T. and Wilkinson, A., 2009. Contemporary human resource management: Text and cases. Pearson Education.
– Storey, J., 2007. Human resource management: A critical text. Cengage Learning EMEA.
– Torrington, D., 2009. Fundamentals of human resource management: managing people at work. Pearson Education.
– Wamuuru, C.G. and Jamleck, D.M., 2018. Human Resource Management Practices, Employee Behavioral Outcomes and Organizational Performance in
Public Service: A Critical Literature Review. Management and Economic Journal, pp.249-267.
– Wright, P.M. and McMahan, G.C., 1992. Theoretical perspectives for strategic human resource management. Journal of management, 18(2), pp.295-320.
– Youndt, M.A., Snell, S.A., Dean Jr, J.W. and Lepak, D.P., 1996. Human resource management, manufacturing strategy, and firm performance. Academy of
management Journal, 39(4), pp.836-866.

Thank
you