Human Resource Development, McDonald's, and Entrepreneurship Report

This report provides a comprehensive analysis of Human Resource Development (HRD) principles and their significance in a diverse cultural context, specifically in relation to McDonald's expansion into China. It explores the principles supporting global HRD, the importance of workforce planning, and the appraisal of HR practices that can enhance entrepreneurial behavior. The report evaluates diversity management strategies, including the advantages of diversity in terms of cost, resource acquisition, marketing, creativity, problem-solving, and organizational flexibility. Furthermore, it assesses the best strategies for maintaining sound international relationships, relevant to McDonald's organizational structure and expansion goals. The report incorporates case studies and real-world examples to illustrate key concepts and provides recommendations for optimizing HR practices to achieve organizational objectives.

HUMAN RESOURCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Principles supporting global human resource development and its importance in a diverse
culture.....................................................................................................................................1
QUESTION 2...................................................................................................................................4
Appraising human resource practices that can enhance entrepreneurial behaviour...............4
QUESTION 3...................................................................................................................................6
Evaluate the management and practice of diversity among own employees, suppliers and
customers................................................................................................................................6
QUESTION 4...................................................................................................................................8
Critically assess the best strategy for maintaining sound international relationship relevant for
McDonald's organisation........................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Illustration Index
Illustration 1: Diversity Management..............................................................................................5
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INTRODUCTION
Human Resource Development (HRD) is a multi-disciplinary department of any
organisation and with globalisation, it has evolved generously. It has brought in new technology,
market innovation, talent and various changes in the organisational structure. With the rise in
time, role and significance of human resource it has provided varied services. Nowadays,
companies are focusing on this concept so that they can retain their skilled and talented
employees. Thus, HRD plays a vital role in enhancing the competencies of individuals in an
organisation.
The present report incorporates critical evaluation of HRD and its importance in
developing entrepreneurial behaviour of individuals. This report undertakes a proposed new
market and the impact of global HRD practices which will define its strategical structure. Human
Resource Management of the company will undertake a new segment of buyers for the existing
product of the company. The report undertakes McDonald's expansion into a typical new market
that is China. McDonald's is aiming at making China its second largest market globally.
QUESTION 1
Principles supporting global human resource development and its importance in a diverse
culture.
The human resource is a multidisciplinary area which includes managing of employees as
well as development of their skills which will help them in carrying out organisational objectives
(Seino and et.al., 2017). HRD of McDonald's is focused on improving the performance of their
employees and enhancing their skills and knowledge so as to perform better in a globalised
economy.
Human resource development
McDonald's being one of the leading fast food retailer serving 119 countries with 36000
restaurants is on a continuous expansion. The human resource planning and development
department of McDonald's has a clear objective of employing the right people for the right job
and providing them appropriate training and development programs. Thus, in order to meet the
goals and objectives of McDonald's, the company is recruiting the best talent thereby making
efficient use of it (Davidson and Wang, 2011).
The various objectives of human resource planning of McDonald's in relation to a diversity and
cultural environment.
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 It aims at creating the efficient and effective use of the resources available,
 To take up challenging tasks with appropriate human resources,
 Provide efficient training and build an effective workforce of talented employees,
 Recruit talented employees internally thereby saving cost of selecting workers from
external sources (Diversity Management, 2009). Thus, Human Resource Planning is a
continuous process which evolves employees and their skill levels in a systematic manner
so as to add value to the company. It identifies the need of human resources in present or
in future and prepares plans to either recruit internally or from external sources.
Workforce planning
HRD of McDonald's is engaged in workforce planning which refers to a systematic
planning through analysing the need of the company in terms of size and quality of workforce. It
is a crucial task performed by HR department of McDonald's by ensuring right people for the
right job so as to achieve objectives in an efficient manner and at a particular time (Chang, Gong
and Shum, 2011). The managers are assigned with a core responsibility of managing employees
thereby critically evaluating the changes in the external environment.
The managers at McDonald’s are engaged in planning for future requirement of
workforce as they are expanding its operations in a proposed new market. Thus, the company
needs to have a proper workforce with said objectives to be fulfilled in future as McDonald's
prepares to expand in to China with 500 more restaurants in the year 2020. For such a strategic
plan the company needs to continuously involve ion the process of workforce planning.
HR planning Techniques
It is a process which forecast demand and supply. Management at McDonald's requires to
predict the quality of human resources which it will require while expanding into new market so
as to achieve strategic goals.
Demand forecasting - This type of manpower forecasting includes the total requirement
of human resource in an organisation for a given time period. At McDonald's the demand
forecasting is used to identify the quality and quantity of man force needed to accomplish
objectives of the company. These forecasts are usually associated with particular job categories
and skill areas that support the organisation’s current and future goals (Klopf and et.al., 2017).
The external and internal demand forecasting takes into account factors such as competition,
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economic climate, various laws and regulations, changes in technology and internal forces like
budget, levels of production etc.
Trend analysis - This type of analysis of workforce takes into consideration historical
data of staff so as to forecast future requirements. It is majorly done to link both past and future
staff information using operational index. At McDonald's this type of analysis is used to predict
requirement of employees for a vacant position.
Ratio analysis - Another type of workforce planning technique used by the HR
department includes ratio analysis which takes into consideration casual factors and is mainly
used by those industries who have less than 5 years past data of staff. It can be calculated by
taking one task and requirement of human resources for accomplishing that task (Chang, Gong
and Shum, 2011). At McDonald's it is another analysis of forecasting human resources
requirement.
Supply forecasting - This type of forecasting undertakes internal and external supply of
employees. Internal supply of human resources takes into consideration the use of replacement
chart which identifies skilled internal employees for a vacant position. Though the external
supply is usually one by hiring and recruiting new workforce which is up to date.
Needs Analysis
Since McDonald's is engaged in proposing a new market it needs to analyse the need of
human resources based on the various jobs and its roles. The existing employees of the company
can be recruited by offering performance based appraisal.
New hires - It includes analysing the various jobs and its roles and responsibilities. This
will help McDonald's to take corrective action thereby hiring new faces for the company. The job
description is a clear narration of the job duties and activities which are needed to be
accomplished by the selected candidates. Since McDonald's is planning to expand its scale of
operations to China the employees needs to undertake working accordingly.
Existing employees - The existing employees could also be recruited for the new
planning undertaken by McDonald's HR department. It implies appraisal of employees by
rewarding them a hike and new position simultaneously (Davidson and Wang, 2011).
Strategic Plan
McDonald's thus undertakes a strategic plan thereby deciding on the workforce and its
planning for the expansion of its operations to china (Seino and et.al., 2017). The manager now
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considers a step-by-step- planning of how to implement the expansion plan using the existing
and new employees so as to achieve competitive advantage in the new market. As the existing
employees are known about the process company follows less training will be requires though
the new workforce needs a competitive training to achieve targets.
QUESTION 2
Appraising human resource practices that can enhance entrepreneurial behaviour.
The human resource practices are related to entrepreneurship and influences the
behaviour of employees. Appraisal of human resources is necessary for retaining talented
employees in the organisation. McDonald's is engaged in this activity as its new expansion will
require talented employees from with the geographical locations of the company.
Diversity management
(Source: Diversity Management, 2009)
Every company incorporates a diverse group of workforce for accomplishing objectives.
The management of diversity is crucial for effective working of an organisation. Diversity
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Illustration 1: Diversity Management

management is a part of human resource management at McDonald's which includes recognizing
effective employees and incorporating them so as to achieve competitive advantage. Successful
diversity management helps managers to maximise employee's knowledge and expertise to better
achieve organisational objectives. The diversity management is important as individuals identify
with groups that positively affect their self-esteem, and evaluate their own groups by social
comparisons to other groups (Diversity Management, 2009).
The diversity management of McDonald's is different from Equal employment
opportunity (EEO) and affirmative action so as to achieve equality of opportunities as well as
outcomes to enhance its expansion plan. The EEO has liberal approach and aims at eliminating
discrimination amongst employees by providing equal access and opportunity to all. The
affirmative action has a radical approach towards employees which targets mostly to underutilise
group and at times, involve positive discrimination (Currie, Finn and Martin, 2010). Diversity
management on the other hand is different from both these approaches and has a business
outlook which aims at maximising the potential of employees by valuing their different cultural
backgrounds.
Advantages of diversity management
There are various benefits of diversity which will help McDonald's to create competitive
advantage by managing diverse group of employees in an effective manner. Since McDonald's
has proposed to enter into a new market thereby expanding its company to China though being
an American based organisation has provided it a totally different workforce to handle
(Bamberger, Meshoulam and Biron, 2014).
Cost - It is a crucial aspect which McDonald's need to consider before planning to
expand into Chinese market. As the company workforce grows divers it will incur some extra
costs in one form or the other. Huge turnover rates and absenteeism costs company a lot of
expense.
Resource acquisition - The major task of McDonald's is to retain talented employees in
the organisation so as to make the best possible use of them by recruiting them to diverse cultural
groups. Feeling included and appreciated increases loyalty and feeling of belongingness.
Marketing - Markets are becoming more diverse and each market has its own cultural
preferences and sensitivities which attract candidates to join such a company. McDonald's
expansion of new market to China will have a significant impact on its market share.
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Creativity - With so many different and diverse group of people encourages creativity
and innovation which will help McDonald's achieve success by expanding its operations to
China. A diverse team holds different attitudes and perspectives which gives higher results and
lower conformity in thoughts (Boxall and Purcell, 2011).
Problem-solving - The diverse group of people helps resolve issues quickly as every
person has a distinct way of thinking and reacting which helps in taking decisions abruptly.
Organisational flexibility - Diverse group of people while interacting shared diverse
views and knowledge which helps them to attain organisational objectives clearly. This leads to
greater flexibility in the system and better problem-solving in the company which is the main
motive of McDonald's thereby incorporating diversity in its expansion project.
The diversity management to be implemented at McDonald's proposed new market.
McDonald's has planned to expand in the new market of China is faced with a diverse
group of people both employees and skilled workers which has different languages, food habits,
talking sense and the way of looking at a problem. All these diverse nature of people at
McDonald's will help the company achieve organisational objectives effectively.
The company for effective management of diversity needs to incorporate better facilities
which suit all (Davidson and Wang, 2011). The company should incorporate in-house child care
facilities which will impact on women employees’ turnover and absenteeism. The flexible
working hours would also impact on the performance of the new venture in China. As each
diverse group has a different religion and practices, the company should give emphasis to all in
proper equality. Therefore, recruitment of employees should focus on incorporating diverse
cultural people with different languages so as to help company resolve issues and problems
effectively (Diversity Management, 2009).
QUESTION 3
Evaluate the management and practice of diversity among own employees, suppliers and
customers
In order to expand the business in the new market, it is very important for management to
manage the employees in such manner as they can effectively carry out their working at
workplace. In the absence of human resource, corporation can not able to carry out business
activities and functions (Currie, Finn and Martin, 2010). It is very important for management to
maintain and motivate workforce in such manner as they retain within organisation for long time
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and perform in excellent manner. In addition to this, management should understand the actual
requirement of employees and deliver them working environment, condition, wages, rewards etc
accordingly.
Performance management plays a very crucial role within the company in order to
motivate and manage the personnel. By help of this aspect, company can effectively address the
determined objective in an effective and efficient manner. While organisation adopts the
performance management techniques and system then it provides effective motivation by
provide monetary and non-monetary rewards to its workforce (Chang, Gong and Shum, 2011).
Performance management technique always applies by analysing the employee's capability and
productivity. In order to motivate and manage the workforce within an organisation, it is very
important to conduct the performance management. On the basis of personnel skill, talent,
capability and efficiency, management provides the promotion, increment and higher
responsibility to them. In addition to this, reward management is also a very significant aspect by
which organisation can effectively motivate and encourage workforce for address the determined
objective. By help of reward system, company can motivate employees for higher productivity
and performance. In order to get effective reward and recognition, employees do high level of
task and perform their responsibility in more effective and efficient manner. In the context of
McDonald’s, company can manage the diversity by use of the effective technique of reward
management and performance management. Cited venture can manage employees by provide
effective rewards and incentives to them. While corporation provides the attractive rewards and
incentives to employees then they can more motivate for perform in higher standard.
Furthermore, employees working capability, quality and ability can more improve while
management provides rewards to them. Reward system has direct relationship with the
performance and productivity of personnel within McDonald’s. In order to get attractive rewards,
personnel perform in well manner and achieve the objective in more effective and efficient way
(Bamberger, Meshoulam and Biron, 2014). Reward system divided into two aspects that are
monetary and non-monetary. While company provides incentive, compensation, bonus, fringe
benefits, perquisites and other money related gift then it is known as the monetary reward
system. This reward helps to the employee in addressing their finance related need. On the other
hand, non-monetary rewards include promotion, increment, higher responsibility, growth
opportunity etc for its employees. McDonald’s can manage the diversity within the company by
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provide the equal opportunity for growth of employees and also provides reward according to the
performance and efficiency of them (Boxall and Purcell, 2011). Apart from that, reward
management and performance management practices can also help to cited venture in managing
diversity at workplace. While McDonald’s launches the new venture and product in the new
market then it is very important for venture to understand the various approaches that help in
managing the diversity among employees. It has to manage its workforce by deliver them
attractive rewards and recognition.
In the new start up business, management also have to manage the customers and
suppliers by meet their expectation. Customer always required high quality of product and
services in the reasonable price so as company have to deliver high quality of services in the
reasonable cost.
QUESTION 4
Critically assess the best strategy for maintaining sound international relationship relevant for
McDonald's organisation
In case of managing international relationship of international relationship organisation,
varied of factors existing in the international food industry market in which is needed to be
considered by its professionals in order to gaining proper development of the business entity in
relevant form (Bamberger, Meshoulam and Biron, 2014.). In terms of international market, they
are getting engaged to several types of barriers which are needed to be resolved in order to
generate more revenue from the market sufficiently.
Focus on building credibility with your global business partners: McDonald's
company need to making major focus in some areas such as focusing on building effective
credibility with its global business partners in proper manner. So its outcomes could improve in
case of international market efficiently. In order to managing credibility of the company, its
HRM professional need to modify all professional strategy of doing international business in
various countries around the world effectively. Maintaining creditability may influence upon the
business strategy to representation of our genuine product and services in the market in an
effective form. So, its HRM professionals require formulating effective strategy for building
great credibility of the business on its global business partners which can assist them to
accomplish its desired goals and objectives in the new market efficiently.
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Listen to its global customer and adapt organisational offering accordingly: The
professionals of the company need to listen its global customer demands and requirements
effectively and as per their expectation from McDonald's organisation, they need to formulate
effective strategy to satisfy them accordingly. The company need to set up attractive
advertisement and promotional activities in new international market in order to get promotion of
their various food products in the industry efficiently. In new emerging market, McDonald's have
new customers in the market which is needed to introduced its numbers of products and services
in the country properly, so they need to regular update on their websites and outlets about several
changes of the company in order to getting proper response from its new market in the world
efficiently.
Give more than you receive: Varied numerous food products are being served by
McDonald's around the world effectively. In case of managing international relationship with
others, its professionals need to identify its several international clients' requirement and dreams
expected from the company effectively and furnish them proper opportunities to fulfilling
whenever it is possible in the country efficiently (De Haas, 2010). The company needs to make
efforts towards provision of more effective product and services as per customers' requirement in
the new market appropriately. Various challenges have been faced by the company in
international market, so they have to perform well in respect to giving more than they receive
from the market, this approach could assist the business professionals to achieve desired success
from the market sufficiently.
Offer quality: HRM professionals of McDonald's business need to make sure that, they
are offering quality of food product and services to their new customers in the international
market. This is one of effective approach to managing good business relationship in several
countries properly (De Haas, 2010). Provision of quality of services by the company depends on
the management level and process level of the firm, so in terms of getting more value and
response from the market, they need to maintain quality of their product and services for running
business a long while in international marketplace.
Provide international services: McDonald's must provide international services as they
are operating business functions in several countries in relevant manner. They need to make
efforts for resolving several international business barriers such as language barriers etc. Thus,
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these business exercises could lead the business performance at international level sufficiently
(Seino and et.al., 2017).
CONCLUSION
The report concludes the importance of diversity while expanding into a new business
venture. It also shows the importance of HRD in planning for workforce either internally or
externally. As McDonald's proposes to enter into a new market and takes China into
consideration to expand its operations, it has to critically evaluate various strategies. The
company has focused on incorporating diverse cultural group and developed a performance
management plan for rewarding and recognising talented employees. Manager at McDonald's is
continuously engaged in linking performances of employees with reward system so as to offer
divers reward packages for their efficient work. Moreover, various motivational theories are
taken into consideration for effective reward management.
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REFERENCES
Books and Journals:
Bamberger, P. A., Meshoulam, I. and Biron, M., 2014. Human resource strategy: Formulation,
implementation, and impact. Routledge.
Chang, S., Gong, Y. and Shum, C., 2011. Promoting innovation in hospitality companies through
human resource management practices. International Journal of Hospitality Management.
30(4). pp.812-818.
Currie, G., Finn, R. and Martin, G., 2010. Role transition and the interaction of relational and
social identity: new nursing roles in the English NHS. Organization Studies. 31(7). pp.
941-961.
Davidson, M. C. and Wang, Y., 2011. Sustainable labor practices? Hotel human resource
managers views on turnover and skill shortages. Journal of Human Resources in
Hospitality & Tourism.10(3). pp.235-253.
De Haas, H., 2010. Migration and development: A theoretical perspective. International
migration review. 44. 1. pp. 227-264.
Klopf, R. P. and et.al., 2017. Restoration and management for plant diversity enhances the rate of
belowground ecosystem recovery. Ecological Applications. 27(2). pp.355-362.
Seino, K. and et.al., 2017. The Diversity Management for Employment of the Persons With
Disabilities: Evidence of Vocational Rehabilitation in the United States and Japan. In
Handbook of Research on Human Factors in Contemporary Workforce Development (pp.
333-356). IGI Global.
Online:
Diversity Management. 2009. [Online]. Available through:
<https://www.kbmanage.com/concept/diversity-management>.
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