Management Report: Zero Hour Contracts and Employee Motivation

This management report examines the implications of zero-hour contracts on employee engagement, using McDonald's as a case study. The report explores the nature of these contracts, their potential issues, and relevant legal policies like the National Minimum Wage and Paid Holiday regulations. It delves into motivational theories, including Maslow's Hierarchy of Needs and McClelland's Theory of Needs, to provide insights into retaining employee satisfaction and addressing the demotivation often associated with zero-hour contracts. The report highlights the importance of fair compensation, employee rights, and the application of motivational frameworks to foster a more engaged and productive workforce. The conclusion emphasizes the need for organizations to consider the impact of these contracts on employee well-being and to align their practices with legal and ethical standards.

MANAGEMENT
REPORT

Table of Contents
INTRODUCTION ..........................................................................................................................3
Understanding the nature and the issue of zero hour contract....................................................3
Legal policies...................................................................................................................................4
Maslow's Hierarchy Theory:.......................................................................................................6
McClelland’s theory of needs:....................................................................................................7
CONCLUSION ...............................................................................................................................7
REFRENCES...................................................................................................................................9
Books and Journal.......................................................................................................................9

INTRODUCTION
Management is universal and continuous process which is applicable and necessity into
every part of life. It has its applicability in every field of working area whether in business of
manufacturing, wholesaling or retailing. Without management an organisation would not able to
achieve its goals and objectives. Management work through its own principles into practical
aspect which consist many criteria into different levels. This report is going to study about
management into employee engagement and zero hour contract (Boella, 2017). This contract is
took place in between employee and employer under which employee is not obliged to work into
time boundation to complete their respective works. The organisation chosen for this study is
McDonald which eradicate the theories and claims against the zero hour contract and the need of
this contract into the firm.
Understanding the nature and the issue of zero hour contract
Zero hour contract is a verbal or documented contract which take place between the
employee and employer of the organisation. This contract does not set a time period or any
working hours for the employees. Employees are free to work as per their convenience into or
the purpose of organisation. mainly this contract is used for specific or particular project or
purpose. Under this contract, employee does not seem to look forward for office hours or any
permanent employment into the company, it set them free to work on other places also.
Employees make them available for companies specific project, the employee approach them
and make engage them for specified time hours. For example, these types of contract is mainly
used by retail or event industries which perform their function according to the occasions and
seasons. They proceeds their recruitment method for a minimum time period so that, they would
not indulge unnecessary or disguised unemployment. Employer have to pay respective amount of
the time in which they had completed their work. In simple words, employee get their
remuneration as per the hours decided by employer. This contract is beneficial for those
individuals who are in search of part time or occasional jobs. Sometimes, it creates issue of job
seekers in relation to limited time period of job hours (Brondoni, 2018). Employer hire part time
employee say for 20 hours but afterwards they complete their projects into 15 hours and make
their pay for the respective time only. This act of negligence and outspoken thinking behaviour
of employer make the employee less motivated and shows less interest towards taking

continuous project. This issues has been seen in the company McDonald which undertake this
contract as per their franchise opening and their campaigns. In 2017, the company has faces
employees strike due to the zero hour contact which doses not provide minimum wage to low
key workers and focus only welfare of superior and top authority workers, a situation has raise
into the company due to this contract. Mc Donald has decided to provide maximum 20 hours of
employment and make payment minimum wage as per the hours, but after sometime, it has not
responded towards their policies into positive way as they had breach the contract by not paying
the decided employment and pay (Cascio and Aguinis, 2018). This has lead to employee
demotivation and less interest towards working for Mc Donald Britain is the largest workplace
for the company, through where it make enormous profit and talented employees engagement.
The company is under violation of contract through employees who did Mc strike for a right to
get minimum wage of $10 per hour. This strikes has involved employees of other organisation
who were also suffering from less payment of Manchester and Watford. The employee making
issues of inequality because of the act of paving to high superior employees good amount of
remuneration and being unequal with low workers. Other employees of bakers and allied
institutions are also got merged with the strike in demand of fixed employment and elimination
of unfair and less and minimum pay. There are various legal laws which has taken into
consideration in order to solve these unfair practices from the organisation.
Legal policies
The National Minimum Wage and Living Wage: According to this regulation law
imposed by UK government, is secure the minimum employment wage to each and every worker
into the organisation whether it would be part time or full time workers. Every working
employee in terms of low key or superior is entitled to get their payment or apprentice. Any
breech of this law would lead the organisation to the court announcement which causes the
impact on company sustainability (Davis and Davis, 2017).
Paid holiday: Every employee is entitled to get their compensation for paid leaves. This
is not defined as that employer has to pay leave payment to the employee but Fair Labour
Standards Act (FLSA) has imposed a compensation for extra benefits to employees. As per this
law, employees are entitled for minimum payment of their leaves for 8 days . This gives
employees motivation in terms of extra rewards over the salary. Mcdonlads are in need to pay
these compensation to maintain employee engagement into the organisation. This makes

employee retention for long term growth into the organisation so that company would not looses
superior and talented workforce.
Pay for work-related travel: It is the pay which an employee is making during travel
into other cities or maybe at local area, this includes their expenses for fuel, or travelling charges,
stay and food expenses. Employees make these expenses in order to completion of companies
work, business meeting, training sessions and other functions. for that they are entitled to get
their pay back with some or not some benefits, it depends on the policies or concerns of
employers. This law also include fair compensation when an employee is associated to work
into another city or country with or without their family. In that situation, they are entitled to get
house facilities, house rent allowance, timely intervals to meet with family members. McDonald
has been providing these payment to their top authority employees as they dose not hire outsiders
individual for low key work operations (Davis and Davis, 2019).
Pay for being on call: According to this law, many employer perform their duty to on
call basis . This job is basically for travelling and roaming to one place to another, these
employees get their task assigned on phones calls by employers or their leaders. In this job
criteria, employee remain idol for some hours because of not getting connected with their leaders
but they are at their workplace but sitting idol. In that respect, they are entitled to get fair
compensation for their whole working hour without excluding their idol time of the employee.
In context with Mcdonals, the company must pay these fair compensation for enqueueing time
of the employee and make their efforts contributed positively.
In order to make employees feel motivated because of unfair practices of zero hour
contract. There are some motivation theory which could help to retain employee satisfaction in
McDonald (Haksever and Render, 2017).

Maslow's Hierarchy Theory:
After the demotivation in employees due to Zero hour contract, it is analysed that
company needs to apply Maslow's hierarchy theory that gives the basics to the organisation that
how they can motivate the employees of the organisation (Harper, 2018). They can increase their
wage rate so that they get motivation and encouragement to stay in this organisation.
Maslow's hierarchy theory is the theory where the employees get motivated and able to
perform their duties and responsibilities effectively so that they can achieve their targets and
goals. It have 5 stages in which motivation is given in the categorise and according to the needs
that are mentioned below:
Physiological Needs: The basic need that require to fulfil food, shelter and clothes. In
this stage the employees need very basic wages and salary that helps to fulfil their basic needs
such as food, clothes and shelter (Hutchins, 2019). It is analysed that Mc Donald's employees
faced issues regarding their salaries because they can not afford even their basic necessities.
Safety Needs: In this stage, the organisation need to fulfil safety and security needs of the
customers. It is the stage in which the employees need to get insurance so that they secured their
future.
Love/Belonging Needs: After securing the safety needs, it is important for Mc Donald's
that they fulfil love and belonging needs with the help of making good culture in the
organisation.
Esteem Needs: Esteem needs is the need in which the employees demands get rise, they
wanted to fulfil their prestige needs. These needs can be fulfil through high pays and wages.

Self Actualisation Needs: It is the need when organisation gives awards and recognition
to employees for their contribution in business growth and success. In practical life it is not
possible because this kind of need can not fulfil (Koumenta and Williams, 2019).
McClelland’s theory of needs:
This theory is essential to eliminate discrimination form the organisation which neglects
the factors of age or gender. This theory includes three motivational indicators which influence
on the practical experiences of life which an employee expect from an organisation. In order to
promotes motivation form unfair practices of zero hour contact. Mcdonalds must undertake this
theory into consideration. The main elements of this theory is mentioned below:
Achievement: This motivational drivers make an makes self independent and desires to
get achievement by putting their efforts anonymously into the organisation through which, it
gives their best and productive aspects to the company. McDonald employers are seeking
achievement in terms of their performance appraisal and promotion by giving them higher
authority and responsibility to perform any task by their own (Li, 2018).
Affiliation: This elements make a person seek for love and affection from their
collageous and team members. They require acceptance and attentions towards them whether
formal and informal way. These individuals could nit resist with conflicts and serious problems
and they are not being emotionally strong. This sense of feeling gave them motivation.
Mcdonalds have to maintain employee communication and engagement of informal relation
within the organisation. So that employee will not feel anxiety and loneliness. This could be a
better aspect towards employee motivation.
Power: This indicators drives a need of power and control into the organisation which
makes the employee feels superior and desires to take control over employees and operations.
The require high status and and affiliation in terms of their postilion and job security Mcdonals
could eliminate zero hour contract in replace with permanent employment power (Miller, 2018)
(Park, Yaduma and Williams, 2016).
CONCLUSION
This report is has analysed the issue of zero hour contract agreement which bound the
employee and trade unfair practices into the organisation which is not suitable of every

individual satisfaction. For the chosen company, employees feel demotivated in respected with
this, above discussed motivational theories are effective and relevant to make the organisation
fruitful. Also, government has imposed rights for employee fair wages which bound every
organisation to work according with that.

REFRENCES
Books and Journal
Boella, M. J., 2017. Human resource management in the hotel and catering industry. Taylor &
Francis.
Brondoni, S. M. ed., 2018. Competitive Business Management: A Global Perspective. Taylor &
Francis.
Cascio, W. F. and Aguinis, H., 2018. Applied psychology in talent management. SAGE
Publications.
Davis, B. and Davis, B., Kortek Industries Pty Ltd, 2017. Wireless Power Control, Metrics and
Management. U.S. Patent Application 15/319,706.
Davis, B. and Davis, B., Kortek Industries Pty Ltd, 2019. Configurable wireless power control
and management. U.S. Patent 10,503,234.
Haksever, C. and Render, B., 2017. Service and Operations Management. World Scientific
Publishing Company.
Harper, H., 2018. Management in Further Education: theory and practice. Routledge.
Hutchins, G., 2019. Supply Management Strategies. Greg Hutchins.
Koumenta, M. and Williams, M., 2019. An anatomy of zero‐hour contracts in the UK. Industrial
Relations Journal, 50(1), pp.20-40.
Li, Z., 2018. Transportation Asset Management: Methodology and Applications. CRC Press.
Miller, M. B., 2018. Quantitative financial risk management. John Wiley & Sons.
Park, S., Yaduma, N., and Williams, A. M., 2016. Demand fluctuations, labour flexibility and
productivity. Annals of Tourism Research, 59, pp.93-112.
Robertson, J. G., Harrison, G. P. and Wallace, A. R., 2016. OPF techniques for real-time active
management of distribution networks. IEEE Transactions on power systems, 32(5),
pp.3529-3537.
Shih, J. S., Swiedler, E. and Krupnick, A., 2016. A model for shale gas wastewater
management. Resources for the Future Discussion Paper, (16-44).