BTEC Level 4 HND Diploma in Business: HRM Assignment Report

This report, prepared for a BTEC Level 4 HND Diploma in Business, focuses on Human Resource Management (HRM) within McDonald's. It begins with an introduction to McDonald's, outlining its mission, vision, and core values. The report then defines HRM, exploring its purpose and scope in terms of resourcing an organization with talent and skills to meet business objectives. It delves into the underpinning theories of HRM, including organizational behavior, motivation, and resource-based theory. The report examines key HRM functions such as workforce planning, recruitment and selection, training and development, performance management, and reward systems. It explains the strengths and weaknesses of different approaches within each function and evaluates their effectiveness in raising organizational profit and productivity. The report concludes with an assessment of the overall impact of HRM practices on McDonald's, providing a practical application of HRM principles.

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 3 Human resource management
Submission date Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Student ID
Class Assessor name
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.
Student’s signature
Grading
P1 P2 P3 P4 M1 M2 D1 D2

 Summative Feedback:  Resubmission Feedback:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:

ASSIGNMENT 1 BRIEF
Qualification BTEC Level 5 HND Diploma in Business
Unit number Unit 03: Human resource management
Assignment title Human Resources Employee Induction Manual
Academic Year
Unit Tutor
Issue date Submission date
IV name and date
Submission Format:
Format: This assignment is a Individual assignment. The word limit is 2.500 words +/- 10%,
You must use font Calibri size 12, set number of the pages and use multiple line spacing at
1.3. Margins must be: left: 1.25 cm; right: 1 cm; top: 1 cm and bottom: 1 cm. The reference
follows Harvard referencing system. The recommended word limit is 2.000-2.500 words.
You will not be penalized for exceeding the total word limit. The cover page of the report
has to be the Assignment front sheet 1.
Submission Students are compulsory to submit the assignment in due date and in a way requested by the
Tutors. The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/
Note: The Assignment must be your own work, and not copied by or from another student or from
books etc. If you use ideas, quotes or data (such as diagrams) from books, journals or other sources, you
must reference your sources, using the Harvard style. Make sure that you know how to reference properly,
and that understand the guidelines on plagiarism. If you do not, you definitely get fail
Unit Learning Outcomes:
LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing an
organization with talent and skills appropriate to fulfil business objectives
LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an organization
Assignment Brief and Guidance:
You’re working as a HR consultant for your chosen company (the students will be advised to choose
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different companies). Your main task is to design a HR system for the company. The document will
provide details on the purpose of HR and the main HR functions within the organisation with an overview
of different HR practices.
The document should cover then following:
(1) An introduction to the chosen organization including mission statement, purpose and core business
objectives.
(2) An explanation of the purpose of the HR function and the key roles and responsibilities of the HR
function, highlighting the significance that HR plays in acquiring talent to meet business
objectives.
(3) A description of workforce planning, recruitment and selection, development and training,
performance management and reward systems that are proposed to apply in the chosen company.
The consultant is required to eplain why those HR processes are proposed.
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Grading criteria
LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing an
organization with talent and skills appropriate to fulfil business objectives
P1 Explain the purpose and the
functions of HRM, applicable to
workforce planning and resourcing an
organization.
P2 Explain the strengths and
weaknesses of different approaches to
recruitment and selection
M1 Assess how the functions of HRM
can provide talent and skills appropriate
to fulfil business objectives
M2 Evaluate the strengths and
weaknesses of different approaches to
recruitment and selection.
D1 Critically evaluate
the strengths and
weaknesses of
different approaches
to recruitment and
selection, supported
by specific examples.
LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an
organization
P3 Explain the benefits of different
HRM practices within an organization
for both the employer and employee.
P4 Evaluate the effectiveness of
different HRM practices in terms of
raising organizational profit and
productivity.
M3 Explore different methods used in
HRM practices, providing specific
examples to support evaluation within
an organizational context.
D2 Critically evaluate
HRM practices and
application within an
organizational
context, using a range
of specific examples.
Table of Contents
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Introduction............................................................................................................................7
Theories & Application............................................................................................................8
1. Definition of HRM..................................................................................................................8
Underpinning theories of HRM....................................................................................................................8
Goals of HRM.............................................................................................................................................10
HRM function............................................................................................................................................10
The charging role of HR function...............................................................................................................11
Key role and reponsibilities of HRM..........................................................................................................11
2. Workforce planning & resourcing.........................................................................................12
Definition...................................................................................................................................................13
Application................................................................................................................................................ 14
3. Recruitment & selection......................................................................................................15
Comparison...............................................................................................................................................15
Application................................................................................................................................................ 17
4. Training & development......................................................................................................17
Overall.......................................................................................................................................................17
Objective and benefit................................................................................................................................18
Process...................................................................................................................................................... 18
Methods....................................................................................................................................................18
Application................................................................................................................................................ 19
5. Performance management...................................................................................................20
Overall.......................................................................................................................................................20
System.......................................................................................................................................................20
Performance Management System Types.................................................................................................21
Process...................................................................................................................................................... 21
Application................................................................................................................................................ 22
6. Reward management...........................................................................................................22
Reward system..........................................................................................................................................22
Overview of Different Modes of Reward System.......................................................................................23
Application................................................................................................................................................ 24
7. Evaluate the effectiveness of different HRM practices in terms of raising organizational profit
and productivity............................................................................................................................25
Effectiveness..............................................................................................................................................25
Application................................................................................................................................................ 26
Conclusion.............................................................................................................................26
References List......................................................................................................................27
Introduction
This report will present two learning outcomes. First, it is explaining the purpose
and scope of Human Resource Management in terms of resourcing an organization
with talent and skills appropriate to fulfil business objectives. Lastly, Evaluate the
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effectiveness of the key elements of Human Resource Management in
anorganization.
Chosen company: McDonald’s
McDonald’s is the leader in global food provision service retailers with over
32,000 local restaurants providing services to over 60 million people in 117
countries each day. Over 75% of McDonald’s restaurants located around the world
are owned and operated by independent locals . McDonald’s offer the world its
famous foods like globally famous fries, Big Mac, Quarter Pounder, Chicken
McNuggets and Egg McMuffin.
At McDonald’s, their people are their most important asset. They provide the best
employment experience for their employees in order for McDonald’s to achieve
their goal of providing their valued customers with the world’s best quick-service
restaurant experience. They strive to recruit the best, hire the best, and provide the
best place to work. The commitment to their workers is shaped on the simple fact
“We value you, your growth and your contributions” and this is they strive to
achieve through their actions every day.
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Vision is “to move with velocity to drive profitable growth and become an even
better McDonald’s serving more customers delicious food each day around the
world.”
Mission is “to be our customers’ favorite place and way to eat and drink.”
Core value is McDonald’s People and Communities experiences – Lovin’ it.
Theories & Application
1. Definition of HRM
There are two different definitions. The first definition of HRM is that “It is the
process of managing people in organizations in a structured and thorough manner.”
This covers the fields of staffing (hiring people), retention of people, pay and perks
setting and management, performance management, change management and
taking care of exits from the company to round off the activities. This is the
traditional definition of HRM which leads some experts to define it as a modem
version of the Personnel Management function that was used earlier.
The second definition of HRM encompasses “The management of people in
organizations from a macro perspective, i.e. managing people in the form of a
collective relationship between management and employees.” This approach
focuses on the objectives and outcomes of the HRM functions. It means that the
HR function in contemporary organizations is concerned with the notions of people
enabling, people development and a focus on making the “employment
relationship” fulfilling for both the management and employees. (Human Resource
Management (HRM) - Definition and Concept, 2020)
Underpinning theories of HRM
Nine significant theories that endorse HRM policies and practices in any
organization are listed in this section by several researchers trying to design a name
for the HRM theories.
Organizational behavior theory: Organizational behavior is an field of research that
explores the impact that individuals , organizations and systems have on
organizational behavior in order to use this information to maximize an
organization's effectiveness.
Motivation theory: In order to accomplish organizational goals, motivation is a
way to produce a high level of passion and this condition is resolved by satisfying
such individual needs. Observations show that well-motivated employees are more
effective and innovative in achieving business or organizational objectives. Less
motivated workers, on the other hand, are less efficient and tend to deviate from
the achievement of organizational objectives.
AMO theory: The three-independent work-system elements that shape employee
characteristics and ultimately contribute to organizational performance are the
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components of Ability, Motivation , and Opportunity. Organizational objectives
are better served by these three components because the principle of AMO paves
the way for line managers to use proactive methods that result in employee
motivation using HR policies and practices.
Theory of human capital: Human capital is an example of the investment of people
in themselves, in other words, in their talents, which ultimately enhances their
economic efficiency. Their theory is based on the premise that human capital
contributes to innovation that ultimately leads to greater personal income.
Supporters of this theory assume that educated people are prosperous individuals,
meaning educated individuals earn greater personal income than the rest of the
population.
Resource-based theory: The resource-based view is used in HRM as a theoretical
basis based on the assumptions that company resources have been heterogeneously
distributed and stable over time. The tools of a company include materials,
expertise, organizational processes and systems, plus the organization's knowledge
and data.
Institution theory: Institution theory implies that the culture within the organization
has a direct influence on the development of structured organizational structure.
Features of the organizational environment include cultural elements, symbols,
normative values, and the hierarchical structure of other types.
Transaction Cost Theory: Transaction cost theory is one of the primary
organizational theories for the strategy and organizational problem of analysis and
has recently been applied to the HRM functions for employee behavior
management , which focuses on the financial and economics-based problem of
human exchange (contract). This idea for the HR department is about knowing the
contract of the employee.
Agency theory: Agency theory uses some decision-making authority to explain
circumstances in which a principal (owner) assigns duties on his behalf to an agent
(employees). This theory applied to HRM by mitigating conflicts of interest
between principal and agents when responsibility was delegated by behavioral
control and employee relationships were formed.
Contingency Theory: This theory proposed that HRM functions should align with
the aspects of the company or external environment to achieve organizational
objectives in order for organizations to be successful. (The Underpinning Theories of
Human Resource Management, 2020)
Goals of HRM
Maintaining productivity through workforce planning: One of the HR department's
primary objectives is to sustain productivity by supplying an sufficient number of
qualified and productive employees to the organization. The workload should be
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constantly analyzed by a good HR manager and know where there are possible
employee challenges and where it is time for additional support.
Establish assessment processes and training programs: Within the department,
maintaining a professional workforce should be a key priority since workers are
the most important resource of the company. Jobs who are paid fairly and believe
like they can grow professionally are among the most pleased. A more trained and
efficient workforce would be generated by the the number of training and
professional development programs in your company.
Increasing Employee Engagement: When employees perform at their best and they
feel respected as essential members of the corporate mission, businesses operate
well. It is the responsibility of the HR staff, along with upper management, to build
and promote a corporate culture where workers feel active, motivated and willing
to perform well in order to achieve company-wide objectives.
Regulation Development and Education: A formalized collection of policies and
procedures should be maintained by every organization. As employees are required
to relate respectfully to fellow employees and be in accordance with company and
often government legislation, the human resources department is also the maker of
these policies. HR employees should constantly be on top of evolving regulations
in the industry of their organization and strive to maintain enforcement as required.
HRM function
Strategic HR Management: By using HR metrics and HR technologies, strategic
planning for HR effectiveness can be improved as part of sustaining organizational
productivity. The function of human resource planning (HRP) determines the
number and type of employees required to achieve organizational objectives. HRP
involves creating a balanced skill-mix of venture teams, recruiting the right
individuals, and voluntary assignment of teams.
Equal Employment Opportunity: All other HR operations are impacted by
compliance with equal employment opportunity ( EEO) laws and regulations.
Staffing: The purpose of staffing is to provide an appropriate supply of skilled
people to fill positions in an organisation. The primary functions of staffing are
role analysis, recruiting and selection. Workers' role design and job analysis laid
the groundwork for staffing by describing what different people do with their
employment and how they are influenced by them.
Talent Management and Growth: Starting with the orientation of new personnel,
various forms of preparation are included in talent management and development.
Total Rewards: The rewards offered to workers for doing organizational work are
compensation in the form of pay, bonuses and benefits.
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Risk Management and Safety of staff: By meeting regulatory requirements and
becoming more sensitive to occupational health issues, HRM tackles different
workplace hazards to ensure employee safety.
Employee and Labor Relations: It is important to deal with the relationship
between managers and workers lawfully and efficiently. It is necessary to address
employer and employee rights. Developing, communicating and reviewing HR
policies and procedures is critical so that managers and workers alike know what is
planned. Union/management ties need to be discussed in some organizations as
well.
The charging role of HR function
The HRM (Human Resource Management) feature is a critical component of every
company among all the support functions. In addition to finance, which acts as the
lifeblood of the functions of organizational support, the HRM role has the
responsibility of ensuring that organizational policies and procedures are followed
and that employee complaints are taken care of, more than any other support
function. For example, balancing recruiting, training, providing assistance during
appraisals, mentoring workers, and deciding on pay structures and grades is typical
for the HRM role of many organizations. This implies that the HRM feature has its
job cut out in which it has to take care
of the organizational processes'
"people" side.
Key role and reponsibilities of
HRM
HRM 's role is to plan , create and
administer policies and programs
designed to allow optimal use of the
human capital of an organization. It is
the aspect of management the affects
people at work and their relationships
within businesses.
HR management's administrative role
has been heavily oriented towards
administration and record keeping,
including critical legal documents and
policy enforcement. In recent years ,
significant changes in the administrative
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role of HR have occurred. The transformation of the administrative role will be
driven by two major changes: greater use of technology and outsourcing.
In line with the policies and operations defined by management, HR managers
oversee most HR activities and function as an employee "champion" for employee
complaints and concerns. The advocacy position of the HR can generate conflicts
with operational managers. However, employers could face even more litigation
and regulatory concerns than they do now without the position of HR advocate. In
order to define and enforce needed programs and policies in the organization, the
organizational position requires HR professionals to collaborate with different
departmental and operating managers and supervisors.
The role of HR as a strategic business partner is also described as "having a seat at
the table," and contributing to the organization's strategic direction and progress.
That means that HR, in addition to implementing strategy, is involved in the
development of strategy. Part of the contribution from HR is to have financial
experience and to generate financial results, not just to raise the morale of workers
or administrative efficiencies.
Role of HR manager
HR role Welfare role Clerical role Fire fighting, legal
role
Advisory-advising
management on
effective use of
HR
Research in
personnel and
organizational
problem
Time keeping Grievance
handling
Training &
development
employee
Managing
services, grain
shop,
transportation, etc
Salary & wage
administration,
incentive
Settlement of
disputes
Measurement or
assessment on
individual and
group behavior
Group dynamic-
group counselling,
motivation,
leadership
Maintenance of
records
Handling
disciplinary
actions
Human
engineering, man-
machine
relationship
Collective
bargaining
Joint consultation
2. Workforce planning & resourcing
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