Analysis of HRM: Strategic Approach, Flexibility, and Legislation

This report delves into topical issues in Human Resource Management (HRM), focusing on Guest's model and its application to MacDonald's, comparing Storey's definitions of HRM, personnel, and IR practices across organizations. It assesses the implications of a strategic HRM approach for MacDonald's line managers and employees, explores flexibility models, and discusses the impact of labor market changes on flexible working practices. The report also examines workplace discrimination, the practical implications of equal opportunities legislation for McDonalds, and compares approaches to managing equal opportunities and diversity. Furthermore, it identifies and compares performance management in a selected organization, assesses approaches to managing employee welfare, discusses the implications of health and safety legislation on human resources practices, and evaluates the impact of another topical issue on human resources practices. The paper highlights the evolving role of employees in driving organizational growth and the importance of HRM in creating strategy and ensuring the right personnel are in place.

Topical issues on Managing Human Resources

Contents
Introduction......................................................................................................................................3
1.1. Explain Guest’s model of HRM as applied to the organisation of your choice...................3
1.2. Choosing two organisations of your choice, compare the differences between Storey’s
definitions of HRM, personnel and IR practices.............................................................................4
1.3. Assess the implications for line managers and employees of developing a strategic
approach to HRM for MacDonald’s................................................................................................7
2.1. Explain how a model of flexibility might be applied in MacDonald’s....................................8
2.2. Discuss the types of flexibility which may be developed by McDonalds...............................9
2.3. Assess the use of flexible working practices from both the employee and the employer
perspective at McDonalds..............................................................................................................10
2.4. Discuss the impact that changes in the labour market have had on flexible working practices.
.......................................................................................................................................................11
3.1 Explain the forms of discrimination that can take place in the workplace using examples of
recent discrimination cases which has made the news..................................................................12
3.2 Discuss the practical implications of equal opportunities legislation for McDonalds............13
3.3 Compare the approaches to managing equal opportunities and managing diversity...............14
4.1 Select an organisation you work or have worked for, identify and compare the performance
management...................................................................................................................................15
4.2 Assess the approaches used to managing employee welfare in your organization.................16

4.3 Discuss the implications of health and safety legislation on human resources practices........17
4.4 Evaluate the impact of another topical issue on human resources practices...........................18

Introduction
In recent years, organizations have come to recognize the centrality of the employee in driving
growth and profitability. Gone are the days when people used to be employed as factors of
production that had to be run for lengthy periods of time so as to get the maximum results fro
them. Increasing educational levels and technological changes have transformed the role of the
modern worker from a replaceable part of the industrial machine to an integral part of an
knowledge and innovation based organization. In this paper, we are going to discuss some of the
topical issues that surround human resource management especially as applies to the
MacDonald’s Corporation, a global leader in the sale of fast foods.
1.1. Explain Guest’s model of HRM as applied to the organisation of
your choice.
In recent years, the concept of Human Resource Management (HRM) has become an intepral
part of organizations. Companies have identified the strategic role that an efficient workforce
plays in driving growth in the organization in the face of increased market competition. As such,
companies are increasingly paying greater attention to the HR component and its linkage to
overall organizational performance. HRM is central in the creation of strategy and setting up of a
roadmap on how to achieve the goals. It is therefore imperative that the human resources
department ensure that the organization has the right personnel through proper selection,
training, development, coordination, evaluation and appraisalA lot of research has been done in
the field of HRM in an endeavour to come up with best practice. Professor David Guest has

widely explored HRM theories in his scholarly work. One of his most widely used models is the
soft and hard paradigm. In this construct, Guest explores the opposing ways in which
organizations view the construct of human resource management. The soft approach sees the
workforce as a relation while the hard view sees it as a resource (Gratton et al., 1999). By
adopting the soft model in HRM, the organization seeks to address individual needs of employee.
The rationale is that the employee will respond positively and o what is in the best interest of the
company. This will result in turn drive business performance. The hard model aims at
implementing strategy through efficient application of the human resources available to the
organization. This is achieved through practices such as role definition, job scheduling,
outsourcing, job rotation, evaluation, downsizing and optimization.
McDonalds has been on the forefront in adopting best HR practice. As one of the largest fast
food service providers, the company has had to streamline its HR practice to ensure that it
continues to deliver quality service to its clients and maintains its market position. The company
largely employs the hard/soft HRM system. Through careful staff selection and development, the
company is able to meet its specific workforce needs based on company strategy. In addition, the
company aims to cultivate a close relationship with the employees so that it can understand their
daily needs and work to meeting these.

1.2. Choosing two organisations of your choice, compare the
differences between Storey’s definitions of HRM, personnel and IR
practices.
Human Resource Management (HRM), Personnel Management (PM) and Industrial Relations
(IR) are three constructs that have been subject to wide scholarship regarding their meaning and
implication in the face of the wider scheme of organizational behaviour. While PM and IR are
aimed at streamlining the workforce to be in line with industrial and regulatory standards, HRM
is more focused on integrating the workforce as a core component of the business strategy that is
geared towards better business performance.
Storey (1992) sought to explain the paradigm shift from PM/IR to HRM in organizations in
recent years. He identified fundamental differences between the two constructs which he broadly
grouped into four categories as follows:
beliefs and assumptions- PM/IR seeks clear definition of contract while HRM aims at
engagement beyond the contract
strategic aspects- HRM involves complete integration of the workforce in business strategy by
deliberate setting of an interactive framework. As such, decision making is fast as it is clearly
defined in the relationship. PM/IR however sees the workforce as peripheral to the main strategy
of the organization. This slows down decision making.
Line management- management in a PM/IR set up is transactional and communication is
conducted indirectly, mainly through intermediaries. However, in HRM model, management
seeks to create transformational leadership through direct employee communication.

Key levers- HRM seeks to drive strategy through a compact workforce model that is
characterized by fewer job categories and bidirectional information flow. On the other hand, the
PM/IR workforce structure is highly stratified with many job groups and restricted flow of
information.
Source: www.whatishumanresource.com – Professor John Storey: Model of HRM
Dimensions Personnel and IR HRM
Beliefs and assumptions
1. Contract Careful delineation of
written contracts
Aim to go beyond contract
2. Rules Importance of devising
clear rules/mutually
'Can-do' outlook;
Impatience with 'rule'
3. Guide to management
action
Procedures Business-need'
4. Behaviour referent Norms/custom and
practice
Values/mission
5. Managerial task vis-a-vis
labour
Monitoring Nurturing
6. Nature of relations Pluralist Unitarist
7. Conflict Institutionalized De-emphasized
Strategic aspects
8. Key relations Labour management Customer
9. Initiatives Piecemeal Integrated
10. Corporate plan Marginal Central

11. Speed of decision Slow Fast
Line management
12. Management role Transactional Transformational leadership
13. Key managers Personnel/ IR specialists General/business/line
managers
14. Communication Indirect Direct
15. Standardization High (e.g. 'parity' an
issue)
Low (e.g. 'parity' not seen as
relevant)
16. Prized management
skills
Negotiation Facilitation
Key levers
17. Selection Separate, marginal task Integrated, key task
18. Pay Job evaluation (fixed
grades)
Performance-related
At McDonald’s Storey’s model of HRM practice is evident. Employees are viewed as an integral
part of the business structure and are key to business success. As such, there is less job
differentiation and workers are given a high negating platform where they can advance their
interests. Through shareholding schemes and franchise models, workers can become business
owners hence feel as part of the company. Contrary to McDonald, Tesco follows a PM-based
model which relies having employees comply with regulation in order to achieve quality service
delivery.

1.3. Assess the implications for line managers and employees of
developing a strategic approach to HRM for MacDonald’s
Developing a comprehensive HRM scheme is a critical aspect of the business strategy at
McDonalds. It is imperative for line managers to incorporate HRM strategies such as effective
communication, relational leadership and compact HR structure in their policy if they hope to get
the best out of their workforce. These practices have to be a central part of organizational culture,
leadership and policy. The implementation of this model may have far-reaching implications for
those involved. On the part of the managers, they have to be deliberate and patient in the
implementation of proper HR schemes such as diplomatic conflict resolution, job rotation and
two way communications. This could be in the form of slowed business in the short term as the
company tries to implement and perfect the best scheme. However, the long term benefits in
terms of fast decision making and employee motivation are worth the time investment that it
requires to perfect the HRM model.
Employees at McDonalds will also have to be deliberate and positive towards the HRM process.
They have to be committed to programs such as job rotation and reporting mechanisms that are
meant to achieve the best outcomes for them. This will involve commitment and positive attitude
on their part. Flexibility and open-mindedness will also be key to achieving the best outcomes of
the program.

2.1. Explain how a model of flexibility might be applied in MacDonald’s
Work flexibility is a paradigm that has evolved with recent HRM theories as a factor that is key
to keeping the central component of organizations, the worker happy. This arose out of a need to
keep the workforce effective through better balance between the work life and the personal life
of the modern day employee. Flexibility models are varied and can be employed in many ways.
They range from short term solutions that are meant to constant refresh the work force to long
term schemes that are aimed at the career development of individuals.
In today’s organization, flexibility is key to both the personal development of the modern
employee and the increased efficiency of the organization. Employees who can perform different
roles in different places and at different times are indispensible to the organization. Multi-killed
workers help to reduce the numerical workforce need of the company. In addition, flexible work
schedules are critical to getting the best out of employees as the company can engage individuals
when they are most productive. By employing such schemes, McDonalds can be able to realize
good business and employee outcomes. These models are mainly applicable in areas such as
sales.
Online sales can reach more people than door-to-door sales due to the wide reach of the internet.
In addition, sales persons can achieve greater value for the company while conducting
merchandizing activities for the company away from the work stations. Teleworking is also a
model that be effective for McDonald’s sales people. One can get clients even from the comfort
of their home

2.2. Discuss the types of flexibility which may be developed by
McDonalds
McDonalds employs people across the entire length of the demographic spectrum. From nursing
mothers to part-time students, all these people have much to offer in terms of energy and skill to
the organization. It is therefore imperative that the company implements work schemes that suit
the various groups of people who work there. Part-time work plans can be used to ensure that the
mothers and students re not discriminated against and get a chance to contribute to the growth of
the company.
Through the use of models such as job-sharing, teleworking and flexible work weeks,
McDonalds can be able to get the best out of its workforce. This enables workers to come in
shifts at the time of their convenience depending on their work-schedules. Job rotation also helps
them to acquire new skill sets in areas different from those which they are trained in. This
enables them to be flexible and increase their transferrable skills. In addition, it also comes as an
added advantage to the company as worker roles become interchangeable and it does not suffer
from skill shortage in a particular area due to factors such as resignations or incapacitation of
workers.
In addition, McDonald’s is focused on the development of the leadership qualities of the
employees for better succession on company management. This is achieved by encouraging
career progression of employees through growth. The company encourages employees to take
study leaves in order to advance their education. To achieve this, the company paces its
programs to ensure that they are synchronized to ensure constant workforce supply throughout
the year. When students are on holiday, they are brought in to enable the permanent workers go

on study leave. This is important in the creation of a pool of managerial talent for the
development of industry and also for personal development of the individuals.
2.3. Assess the use of flexible working practices from both the employee
and the employer perspective at McDonalds.
Today’s paradigm of work flexibility has brought with it many benefits for both emloyers and
employees. Apart from ensuring compliance with proper labor practices and ensuring worker
satisfaction, this paradigm ensures diversification of the workforce through creation of a pool of
workers with varying skills.
Through the use of part-time student workers, McDonalds can be able to relieve its regular
workforce so that they can rest when the schools are off session. This provides dual benefit to
both the students and the company. It enables the student workers to earn extra income so as to
offset their living expenses which would otherwise have to be borne by parents and guardians,
hence creating economic burden. On the part of the fast food store, it does not incur any added
financial burden as the students are on a temporary arrangement and as soon as schools resume,
they take unpaid leave. This arrangement also helps to alleviate fatigue on the part of the regular
workers and hence ensures a happy and efficient workforce.
Work sharing and flexible work-weeks helps to distribute the work burden among the employees
depending on individual needs and capacities. For example nursing and expectant mothers can
work and be remunerated for less hours which can then be taken over as over time by the more
able-bodied workers who may be in need of the extra money. Teleworking helps to cut on costs
such as transport, office space and supervision.

With the internationalization of today’s organization, flexibility has become the norm, rather
than the exception especially for manages. Faced with the task of managing a remote workforce
across time zones, the global manager has had to change their working hours in order to suit the
demands of this new paradigm. For example, the MacDonnald’s global manager may have to sit
through the night as they hold a teleconference with the operations team in China. As such, they
have to switch their schedules in order to accommodate personal activities such as rest.
2.4. Discuss the impact that changes in the labour market have had on
flexible working practices.
Recently, there have been dramatic changes in labour practice. These have been occasioned by
technological and cultural changes. Technology and globalization have completely changed the
face of recruitment in today’s organization. Now companies can hire from anywhere in the world
and employees can work from remote locations without having to be physically present in the
workplace. In addition, increased education levels have seen companies raise their recruitment
bar. Today, graduates are scrambling for jobs that were initially a preserve of non-graduates.
On one hand, this is beneficial to organizations such as McDonalds as they get to hire the best
talent from anywhere in the world. In addition, the increased education levels of employees mean
that they are more open to new learning and new skill acquisition. This means that organization
are getting smart people that are more trainable at all levels of the organization at the same rates
as before. This has had instant benefit in terms job flexibility as role interchangeability become
easier.

Technology has also been an important tool in aiding workplace flexibility. The advent of new
media such as smart phones and social media has enabled people to work form anywhere. This,
coupled with the improved learning affinity of today’s workforce has helped the case of
flexibility a lot. Workers are now more trainable on new technologies that aide flexibility. In
addition, the projected technology revolution that will be characterized by the advent of robot is
set to completely redefine flexibility. With repetitive tasks taken over by machines, employees
will be able to focus on more intricate tasks and will have more free time available.
3.1 Explain the forms of discrimination that can take place in the
workplace using examples of recent discrimination cases which has
made the news.
Many businesses have put in place to ensure that they are fair to all their employees and
customers. However, without clear guidelines governing the social interaction between
management and employees, some conduct may be interpreted as discrimination.
Sometimes, action taken in good faith and with the interest of the company in mind may be
taken as bias. At other times, the company acts without regard for general tenets governing
social association with different kinds of people with the sole purpose of advancing the
business interest. Discrimination, real or perceived is along the lines of race, gender and
physical disability. This results in conflict that can degenerate to civil suits.
This was the situation that a Starbucks restaurant in London found itself after it was guilty
of discriminating against a woman with Dyslexia. As a result of her disability, Ms. Meseret
Kumulchew was demoted and ordered to retrain as she had problems performing her clerical

duties. The company was however ordered to make adjustments to accommodate people like Ms.
Kumulchew (http://www.bbc.com/news/uk-35521061). Even McDonald’s has not been spared
pain of discrimination suits. Given its franchise business model, the company has been especially
vulnerable legal tussles as it is often held responsible for the actions of its franchisees.
This case shows that even renowned organizations such as McDonalds are not immune to the
discrimination cases. These arise due to lack of information on employees psychological needs.
As such continuous employee engagement is important in order to identify the flash points of
discrimination.
3.2 Discuss the practical implications of equal opportunities legislation
for McDonalds
Equal opportunity legislation aims at safeguarding the rights of employees. McDonalds has
a zero-tolerance policy to discrimination that aims at ensuring all people get fair treatment
in the organization. External legislation is important to ensure that organizations uphold
the principles of fairness. As such, oversight helps organizations to create internal
mechanisms that ensure that they uphold principles of fairness and justice. They have to
institute a standing legal department that continuously looks or areas where they could be
culpable of violating the law
However, such regulation can be exploited by malicious employees seeking financial gain
or otherwise. The legal teams that are charged into looking into matters discrimination
come at an added cost for the company. This increases operational costs which are passed
onto clients. In addition, the existence of anti-bias law creates an air of mistrust between

employer and employee. Organizations now have to be extremely careful as to how they
treat their workers for fear that they can invoke this legislation if they feel that they have
not been treated fairly.
3.3 Compare the approaches to managing equal opportunities and
managing diversity.
Equal opportunity and diversity are correlated constructs that have become the core of the new
HRM paradigm in recent years. These practices are applicable in processes such as recruitment
and general workforce management. Today, employers endeavor to put in place best practices to
ensure that they provide equity in the competition for places within the organization, in provision
of resource for employees and in evaluation of job performance. Workforce diversity seeks to
exploit the differences that occur across the different demographics of the population in order to
create a workplace that has varying ideas and experiences.
However, the goals of managing diversity have not yet been achieved in the current world. Issues
such as gender inequality still plague the workplace. Women continue to receive less
consideration in development compared to their male counterparts. Openness to the value that
different demographics have to add to the company has however been the building block of
today’s global organization that is able to expand beyond borders that transcend race, gender,
colour and nationality. This is the basis upon which the principle of equal opportunity is
premised. This tennet advocates for the provision of a level playing field for all people when it
comes to employee recruitment and development processes.

Mcdonald’s prides itself in being an equal opportunity employer. The company has the
MacDonald’s Women Leadership Development Program helps to foster career growth of female
employee (mcdonald’s.co.uk). Through forums that are aimed at the special groups of people in
the organization, Mcdonald’s hope to create an environment that draws on the diversity of its
employees in order to enhance their experience and interaction in the workplace. In addition,
they leverage on the talents and skills of the different people to drive business growth.
By embracing the principles of equal opportunity, the company is able to create a healthy
working environment where every worker feels appreciated for their capabilities and not
discriminated based on physical traits. This has been achieved through the implementation of far-
reaching anti-discrimination policy that clearly defines the criteria for employee recruitment,
evaluation and support that should be applied to all individuals, while taking into account
physical limitations of the individual.
4.1 Select an organisation you work or have worked for, identify and
compare the performance management
Performance management is the practice of evaluating different performance segments of a
company in order to identify those which are doing well and those which are
underperforming. Performance management mechanisms at McDonalds focus mainly on
sales and marketing, production, franchises and customer service. Key to the realization of
optimal performance is the recruitment of the best employees. This is achieved through
talent spotting. The company has a competent team of HR experts who identify individuals
that can bring new ideas and innovations into the business especially in management
capacities.

Goal setting is also key to good performance management. This involves setting the metrics
against which recruited individuals will be evaluated. McDonnald’s encourages employees
to work towards achieving these goals through motivational leadership and incentives.
This has been found to work better rather than threating workers with repercussions of
not meeting the performance standards. It is also crucial to equip employees to be able to
achieve the set goals. This is done through training and support. Having a proper feedback
mechanism is important for effective reporting on any drawbacks that could be hindering
the employees from achieving their goals.
The next step in the PM model employed by McDonald’s is evaluation. Employee
performance is gauged against the set expectations. Rewards are offered in where targets
were met. Where performance was under par, the management looks at ways of remedying
the situation. This could be in the form of reshuffles or issuance of warnings. In extreme
cases, the company resorts to layoffs.
4.2 Assess the approaches used to managing employee welfare in your
organization
At McDonald’s employee welfare is of great interest to the organization. This is because a
happy employee means good performance for the company. McDonald’s is therefore very
deliberate in upholding employee welfare. This is not only done to comply with regulatory
requirements but to ensure improved positioning for both the company and the employee.
The company therefore goes beyond the basic legal provisions for the working standards of
employees. The company ensures flexible working hours and good working conditions for
its employees.

In addition to this, the company has various schemes to ensure the wellbeing of its
workers. These include workman compensation schemes as well as pension plans for its
employers.
However, some sources have faulted McDonalds blowing hot and cold when it comes to
employee welfare. While on one hand it offers workers great leeway in terms of decision
making, job security in the company is tenuous at best and workers are easily laid off when
the work is insufficient. In more ways than one, the company employs a functional model of
employee welfare. They only care about the workers welfare so long as the employee is
productive (http://www.hrmonline.com.au/section/hr-capability/mcdonalds-human-
resource-practices-still-order-day/)
4.3 Discuss the implications of health and safety legislation on human
resources practices
OHS legislation aims at preventing accidents and injury in the workplace. It provides
extensive guidelines which should be followed for the best outcomes of employees. In
addition to protecting workers from harm, this legislation also shields the company from
runaway insurance claims and suits that would arise from high number of accidents.
The health and safety practice at McDonalds dictates that employees abide by the OHS code
to the letter. To achieve this, all employees have to undergo requisite training on the code
in order to be versed on its statutes. In addition, there is a process for certification and
evaluation for compliance. This implies added cost and dedication of time to the activities
that comprise the process on the part of the company. However in the larger scheme of

things, it helps the company avoid greater cost in insurance claims. Also complementary to
the health and safety practice at McDonalds are other regulations such as the fire code. This
requires the installation of special facilities that can be used to combat fire in case of an
outbreak. This adds to the cost implication on the company.
4.4 Evaluate the impact of another topical issue on human resources
practices.
Human resource is a highly fluid area keeps changing depending on the environment and
organizational culture. The two factors are constantly at play in shaping HR practice. However,
organizational behavior at McDonald’s has remained more or less the same in terms of
recruitment procedure. These consist of the traditional methods of application and screening.
These methods have been developed over time to ensure a carful matching of the skills and need
to ensure that the new entrants fill specific voids in the organization. After the recruitment
process, the new employees are taken through an orientation stage and development through
training. This enables them to handle the diverse roles and situations which they are going to be
exposed to in the organization. Setting up communication systems is critical to the long term
success of McDonald’s. This helps management to be able to get feedback from employees and
apply necessary measures to ensure that workers remain satisfied and productive.
As we have seen, organizational managers will have to be aware of the topical issues that
surround HRM. In the face of rapidly changing HR culture, globalization and technology
revolution, today’s manager has to savvy and responsive to the needs of employees.
Management of cross-cultural workforce is another issue that has been brought about by

internationalization. The global manager will have to be informed of the norms and practices of
different cultures in order to effectively work with diverse people. Through an integration of
constructive local practice into business culture, progressive thinking in the embracing of
technology and new theory, the manger will be able to continue staying relevant in the face of
change.