McDonald's HRM: Challenges, Workforce Planning & Solutions (SHR018-2)

This report examines the human resource management challenges faced by McDonald's, a global fast-food chain, focusing on issues such as insufficient training, attracting suitable candidates, and retaining talented employees. It applies theories like the human capital theory, AMO model, and dynamic capabilities theory to analyze these problems and propose solutions. The report highlights the importance of HRM in organizational growth and development, addressing areas like staffing, training, and compliance. Recommendations include implementing reward systems for employee referrals, providing comprehensive training and development opportunities, and fostering strong employee relationships. The goal is to enhance employee skills, motivation, and retention, ultimately improving McDonald's overall performance and competitiveness. Desklib provides access to similar solved assignments and resources for students.

Human Resource Management
SHR018-2

Executive summary:
human resource management is defined as the process that is related development of
planning and strategies related to human resources of organisation, provide them training, decide
their compensation and take various decisions of their welfare. The main objectives of this report
is to identify various key challenges and problems that are faces by the McDonald to conduct all
organisational operations properly. Organisation analyse all these issues and develop various
policies to overcome these challenges and attain all defined business goals and objectives. There
are various recommendations also covered in this project report that help organisation to perform
in appropriate manner.

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Problems related to human resource management......................................................................4
CONCLUSION ...............................................................................................................................8
RECOMMENDATIONS.................................................................................................................8
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management is defined as the strategic approach that ensures effective
and efficient management of organisational employees in order to gain various competitive
advantages then other competitors. It is used in the organisation for employment, their
development as well as well-being. In human resource management various decisions and
actions are taken which affect the relationship between organisation and employees. It is
designed by the human resource management department of organisation for enhancing
employees performance as well as accelerate their contribution towards attaining organisational
defined goals and objectives (Wilkinson, and Dundon, eds., 2021). In this report the chosen is
McDonald which an American fast food organisation founded in 1940 by Richard and Maurice
McDonald. Headquarter of organization situated in Chicago Illinois, US. It serves its services
worldwide through 38,695 restaurant. According to revenue McDonald is the largest restaurant
chain that serves over 69 million customers over 100 countries. The report covers problems
related to human resource through using various theories such as human capital theory, dynamic
capabilities as well as AMO model. Apart from that there are recommendations regarding to
respective problems are covered in th8is project report.
TASK
Problems related to human resource management
There are various problems are raised in organisation related to human resource that
impacts on overall organisation performance and operations. As human resource management
department is related to accruing appropriate employees in organisation for the purpose of
attaining defined goals and objectives properly. As per the fluctuation in economy as well as
local and global environment there are various issues raised. These issues are related to
workforce, HR planning, job description and recruitment and selection (Stewart, and Brown, ,
2019). These issues with relative theories are mentioned below:
Insufficient training: Insufficient workforce training is the most effective problem in the
McDonald organisation that limits employees capabilities. As McDonald is one of the leading
organisation in fast food industry that is expanding business regularly in global market. So,
skilled and capable employees are able to take new responsibilities as well as complete
challenging task more efficiently that facilitates organisation to gain various competitive

advantages. If organisation do not adopt proper structure of training and do not teach new skills
and techniques to employees through suitable process than employees are not able to perform
new job roles properly. Insufficient training creates frustration and burnout among employees
and reduces their productivity as well. Lake of proper training and development programme de
de-motivates employees so they can not perform their defined task with full effectiveness and
efficiency. Insufficient training demotivate organisational employees and reduce their work
efficiency that affect overall performance and functionality of McDonald.
Human capital theory: Human capital is defined as the educational attainment,
experiences skills as well as knowledge in organisation employees. The respective theory is
stated that education as well as training is the most important investment for organisation that
enhances productivity of McDonald organisation. In highly competitive business environment
the requirement of physical capital is enhanced who perform all business functions accordingly
for the purpose of gaining organisational goals and objectives efficiently (Pucik, Evans, and
Björkman, 2017). As education and training become most important component for workforce
that enhances their working performance and various skills and capabilities. Human capital
theory states that human capital is essential factors of economic success of McDonald (Bailey
2018). Through applying the theory organisation provides proper education and training to
employees that enhances their skills, knowledge that boost their performance and productivity.
Human resource management department of McDonald develops proper schedule of employees
training that enables them to perform their all defined task properly and contribution in achieving
organisational growth and development objectives. Respective organisation invest high amount
in the growth and development of employees through providing various training and
development that helps McDonald to enhance business proficiency in highly competitive
environment.
Attracting right and suitable candidate: It is the most effective challenges that is faced
by the McDonald to attract suitable or appropriate candidates for organisation who perform all
business operational in well-defined manner and facilitates organisation to attain all business
goals and objectives. It is very difficult task to attract right candidate form the pool of applicants
that is full of unqualified talents (Nankervis, 2019). McDonald face difficulty to hire suitable
employees who provides proper services to customers. As the respective organisation conduct
business operations at large scale in various countries so, it is essential for organisation to select

highly qualified, skilled and capable employees who are able to perform all business functions
properly in different business conditions. Although McDonald publishes various advertisements
related to vacant jobs in organisation that attract huge number of employees in organisation that
enhances human resource management department to select suitable candidate among that. If
there is wrong decision is taken by organisation about recruitment and selection affect whole
organisational performance and functionality (Armstrong, and Taylor, 2020). As attracting as
well as retaining top talent in organisation is the most important for McDonald that facilitates
organisation to attain various business goals and objectives in efficient manner and run business
operations properly. For recruiting suitable employee at job, human resource manager identify
the requirements of related job position but job roles as well as expectations are keep changing
that make the task more difficult to attract appropriate and suitable employee in McDonald. The
respective problem affect overall functioning and performance of organisation.
AMO Model: AMO model is defined as the well-defined as structures framework that
provides better understanding and knowledge about relationship between human resources
management practices and performance. McDonald adopt the model to mitigate all problems or
challenges regarding employees recruitment and selection. Organisation provides various
training and development opportunities to employees that motivates them to perform all task
with full efficiency and effectiveness. As human resource management department is related to
discipline of Ability, Motivation as well as Opportunities theory which explains the complex
relationship between how organisational employees manages their performance outcomes. The
respected theory is the combination of various factors like ability, motivation and opportunities
that provides measure of organisational employees performance (Macke, and Genari, 2019). All
these three working system factors shape the employee characteristics as well as motivates them
to take active participation in attaining all organisational objectives. After attract suitable
employee in McDonald enhance employees abilities through providing work related training,
motivates them and provides various career development opportunities so they can contribute in
accomplishing business goals. McDonald adopts AMO model to analyse employees
performance and provides them various training and development opportunities that motivates
them to achieve higher work performance as well as retain them with McDonald for long period
of time. The model facilitates organisation to allocate all work among organisation according to

employees abilities and provide them training to gain various future opportunities that motivates
organisational employees.
Retaining talented employees: As human resources are the most important resource of
organisation who contributes in attaining all organisational goals and objectives properly. It is
most challenging task for organisation to retain experienced, capable, skilled as well as talented
employees with McDonald that impacts overall performance of McDonald. Diversify and
talented employees are required to ensure organisational long term success and development. In
high competitive business environment it becomes important for organisation to retain skilled
employees to gain various competitive advantages than other competitors. McDonald creates
effective and positive relation with employees and provides various retirement plans and
insurance plans that reduce employee turnover of McDonald (Crawshaw, Budhwar, and Davis,
eds., 2020). Human resources enhances overall organisational capabilities to attain business
goals and objectives if effective employees leave organisation that enhances overall cost of
organisation and affect organisational profitability ratio as well.
Dynamic capability theory: Dynamic capability theory is defined as the extension of
resource based view of the respective organisation. As resource based value is that concept that
is statistic in nature as well as sufficient for explaining various competitive advantages that are
gain by the McDonald in changing market environment. The respective concept is looking for
unique, imitable and rare that provides various competitive advantages to organisation than other
competitors. The process of gaining competitive advantages in the dynamic process so it is
necessary for organisation to develop various capabilities in human resources through providing
continuous learning. As the lack of dynamic capabilities prohibit McDonald to gain various
competitive advantages in extremely changing business environment (Carbery, and Cross, eds.,
2018). As the respective organisation conduct business in various other countries so, it becomes
necessary for the organisation to respond towards various environment complexity.
dynamic capability is the focus on the area of strategic management that depends upon
the proper utilisation of organisational resources as well as capabilities in the market in which
organisation operates its operations. According to this theory, McDonald enhances capabilities
of organisational employees through providing training and development programmes that
differentiate respective organisation from others. Reattainment of talented employees with

organisation reduce organisation cost to hire employees again and provides sustainable
competitive advantages as well.
CONCLUSION
As per above report, it can be concluded that human resource management department
plays important role in the growth and development of organisation through appointing suitable
employees and develop various policies and strategies related to human resources so, they can
perform their work in efficient manner. There are various roles and responsibility of HRM
department is organisation such as staffing, providing appropriate training to employees,
compiling all employment related laws and legislations and protect customers from any kind of
misconduct in organisation. There are various problems or challenges are faced by the
McDonald to perform all business operations. All these problems impacts on overall proficiency
and organisational operations. These problems are relates to workforce, job description, human
resource planning, recruitment and selections as well as job analysis. All these issues and
challenges are identifies by the respective organisation through applying various human
resources practices and theories like human capital theory, AMO model and dynamic capabilities
theory (Brewster, Mayrhofer, and Farndale, eds., 2018). Human resource management
department faces difficulty in retaining employees enhancing their productivity and maintaining
their health and safety related issues. Respective organisation apply various theories for the
purpose of finding appropriate solutions of relative problems and boost organisational overall
performance and productivity. McDonald organisational develops various human resources
strategies and planning to resolve all conflicts in organisation and maintain effective employee-
employer relationship that facilitates organisation to accomplish all defined objectives in best
possible manner.
RECOMMENDATIONS
As human resource management department faces various challenges and problems in
then competitive business environment. There are various role and responsibilities are performed
by the HR specialist of McDonald such as recruiting, selecting, provide training, maintaining
human relation and develop various policies for employees of organisation. Some
recommendations that facilitates organisation to mitigate all problems are mentioned below:
 For attracting appropriate candidate in organisation, it recommendate that there are
various rewards system is adopted for encouraging referrals in organisation. Organisation

should create various videos regarding employee testimonial and building effective
working environment in organisation through appreciate employees, adopting transparent
leadership and encouraging collaboration.
 It is recommendatate McDonald to provide proper training and development
opportunities to employees for enhancing their skills and capabilities so they can perform
all organisational functions properly. It enables employees to contribute organisational
success.
 McDonald should maintain effective and strong relationship with employees so
employees are motivated to perform their defined task is best possible manner (Berman,
2019). Respective organisation should adopted clear and open communication to convey
all strategies to employees and enhance mutual understanding that reduce conflicts in
organisation.
 McDonald should provide appropriate compensation as well as development
opportunities that motivates them to retain with organisation for longer period of time.
There is proper strategies are adopted by the McDonald for resolving employees issues
that enhance their working performance and productivity as well.
 McDonald should develop effective workforce planning and strategies that guide and
lead employees to perform their task in well-defined manner and retain with organisation
for long period of time (Banfield, Kay. and Royles, 2018).

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice.
Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management. Oxford
University Press.
Berman, E.M. And et.al., 2019. Human resource management in public service: Paradoxes,
processes, and problems. CQ Press.
Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018. Handbook of research on comparative
human resource management. Edward Elgar Publishing.
Carbery, R. and Cross, C. eds., 2018. Human resource management. Macmillan International
Higher Education.
Crawshaw, J., Budhwar, P. and Davis, A. eds., 2020. Human resource management: Strategic
and international perspectives. Sage.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human resource
management. Journal of cleaner production, 208, pp.806-815.
Nankervis, A. and et.al., 2019. Human resource management. Cengage AU.
Pucik, V., Evans, P. and Björkman, I., 2017. The global challenge: International human resource
management.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Wilkinson, A. and Dundon, T. eds., 2021. Contemporary human resource management: text and
cases. SAGE.