Management of Human Resources in McDonald's Canada

Running head: MANAGEMENT OF HUMAN RESOURCES
Management of Human Resources
University Name
Student Name
Authors’ Note

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MANAGEMENT OF HUMAN RESOURCES
Table of Contents
Background of the company:.....................................................................................................2
Way internal equity is established..............................................................................................3
Pay for new hires determined and aligned with existing staff to ensure internal equity...........4
Procedures that company use to make sure their compensation is aligned with market...........6
Type of benefits received for working with that corporation....................................................6
Effectiveness of compensation programs...................................................................................7
Recommendations provided to enhance their compensation program system..........................9
References................................................................................................................................11

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Background of the company:
Function, Size, Type of employees (diverse occupations) and location
The company selected for the current study is the McDonald’s Restaurants of Canada that is
the master franchise in Canada of the chain of fast food restaurants of McDonald’s owned by
the American parent corporation McDonald’s Corporation. It being one of the largest chain of
fast food restaurants, franchise markets food items, counting hamburgers, French fries,
different soft drinks and chicken throughout the nation.
McDonald's Canada operates through 1,400 stores (counting locations in Canada) and this
includes Canada, and over and above 85,000 Canadian workforces (Around the World
McDonald’s 2018). There are different types of employment that can be observed in this case
namely, permanent employment, contract employment, part time employment as well as
other types of employment. McDonald’s has permanent employees who usually get base
salary, different health benefits, bonuses, company stock option schemes along with other
personal incentives among many others. Also, the employees of the company include part
time employees who work in food as well as retail, stores and are mainly service jobs
(Cascio, 2018). The locations in which the firm operates include North and South America,
Europe, Africa as well as Asia & Oceania. However, the area served by McDonald’s Canada
is the Canada.
Way internal equity is established
Management of McDonald’s makes certain preservation of internal equity that refers to
comparison of different positions within the enterprise to ensure fair pay. Employees also
need to perceive that they are paid fairly in comparison to their co-workers. In order to
generate fair pay, there is need to compare different employees who undertake identical jobs

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for the business enterprise (Cascio, 2018). There is requirement to take into account different
tasks that employees undertake. At the time when two different employees undertake
identical tasks, there is need to earn identical wages (Bratton & Gold, 2017). Management of
the firm does not base wages of the employees solely on titles of the job. Management of the
firm ensures that in case when two different workforces possess diverse titles but undertake
identical tasks need to have identical wages. Identical tasks can be considered to be main
concern at the time of establishing wages of employees. Fundamentally, this includes
educational qualification as well as experience of each and every employee (Bratton & Gold,
2017). In a bid to maintain and preservation of transparency as well as fairness within the
payroll of the business and there is need to explicate decisions of compensation of
employees. At the time of establishing wages of employees, management of the firm register
different facets that help in framing the decision. In case if a specific employee ever question
their wages, it is important to explicate the specific reasons for selecting the wage (Brewster,
2017).
Pay for new hires determined and aligned with existing staff to ensure internal equity
Internal equity refers to an appropriate association between wages disbursed for diverse jobs
within the business enterprise. For instance, when salary earned by a Sr. Manager is lesser
than that of a manager; then there is short of internal equity. Again, pay differentials need to
be associated openly to differential in job necessities. In case of fair pay differentials between
different jobs can be instituted with the aid of analysis of job (Armstrong & Taylor, 2014).
Internal equity subsists at the time when different employees in a specific corporation
observe that they are being rewarded fairly as per relative value of the jobs within a specific
business enterprise. Management of the firm McDonald’s consider another method of
mentioning this and this includes statement of perception of person regarding their