McDonald's HRM: Recruitment, Employee Relations, and Legal Compliance

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Human Resource Management

Table of Contents
Introduction......................................................................................................................................3
About Organisation..........................................................................................................................3
LO1..................................................................................................................................................4
1.1 Purpose and scope of Human resource management.............................................................4
1.2 Functions of Human resource management...........................................................................4
1.3 Strengths and weaknesses of internal and external recruitment and selection.......................5
LO2..................................................................................................................................................7
2.1 Benefits of different HRM practices within an organisation for both the employer and
employee......................................................................................................................................7
2.2 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity:.................................................................................................................................8
LO3..................................................................................................................................................9
3.1 Importance of employee relations in respect to influencing HRM decision making.............9
3.2 The key elements of employment legislation and its impact on HRM decision making.....10
LO 4...............................................................................................................................................11
4.1 Illustrate the application of HRM practices in a work-related context, using specific
examples.....................................................................................................................................11
4.2 Provide a rationale for the application of specific HRM practices in a work-related context.
....................................................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Introduction
Every organisation or industry has a system which focuses on managing the human resources
available in it. It is considered as the most important part of any organisation as the human
resources help the organisation to achieve its goals and strategies. The following report will be
based on the various components and factors related to human resources management in the
context of McDonald’s. In this report, the purpose and the functioning of the human resource
management will be discussed along with the key elements of it in McDonald’s. Also, the
internal and external factors which impact the decision making of human resource management
will be covered. It will also discuss the various applications of human resource management in
McDonald’s or any other organisations.
About Organisation
The organisation on which this report is prepared is McDonald’s. McDonald is an American
company which is famous for fast foods. The company was founded by McDonald brothers
named Maurice McDonald and Richard McDonald in the year 1940 in San Bernardino,
California. It is a global company which is dealing in many countries all over the world and
having franchises of fast foods. About 1, 20,000 employees are working in McDonald’s just in
the UK, and if the employees were included from all over the world who are working in the
franchise then the number will become about 2 million. Its one of the famous slogans is “I’m
lovin’ it" from the year 2003. The revenue of McDonald's at the end of the year 2018 was about
21.03 billion American dollars which were less than in previous years (Statista, 2019).

LO1.
1.1 Purpose and scope of Human resource management
The purpose of human resource management is to handle all the activities and the actions which
are related to the workforce of an organisation to make them achieve the goals and objectives of
the organisation. The management of human resource deals with the selection of the talented
employees, the training of the employees, and the other related tasks to improve the efficiency of
the work done by the employees for the organisation. Human resource management has a huge
scope in the organisations as it helps the management to plan the activities for the welfare of the
employees and the organisation (Brighthubpm, 2019). In McDonald’s, the mission of the
organisation is to become the favourite place of the customers to eat and drink and also to
become the favourite way of the customer when they want to each fast foods. The vision of
McDonald's is to increase their growth of profit and to become the better McDonald's every day
from the previous one. Also, their vision is to serve their tasty food to more and more customers
around the world. These missions and visions of the company can be achieved only with the help
of proper functioning of the human resource management (Panmore, 2019).
1.2 Functions of Human resource management
Fig. Functions of HRM
Source: (Medium, 2016)
Managerial Functions
Planning
Controlling
Organising
Directing
Staffing
Operative FunctionsHiring
Performance Appraisal
Training and development
Job analysis and design
Labor relations
Welfare of employees
Personal research and record
Maintainence
Salary administration

In McDonald's or any other organisations, human resource management has to perform these
functions as mentioned in the above table. The managerial function includes the planning for the
organisation for the betterment in the growth of organisation so the HRM also makes strategies
for the employees and company. In organising and staffing, human resource management will
decide the specific number of persons required for the particular job and assigning the right job
to the right person at the right time. Directing and controlling will cover the function of human
resource to activate the employees to perform their assigned task and then control their work and
performance.
McDonald’s need the variety of employees to perform various tasks at the outlets and offices and
for this, there is a need for hiring of employees which is done by the human resource
management by bringing pools. There is a specific need of skills to carry out the outcome and for
this, human resource management has to analyse the job and design a set of skills for hiring the
correct employee. The other functions which are performed by the HR management are training
and development of employees for achieving the desired outcome, motivate the employees to do
their work, maintenance of the human resources to decrease the turnover or to fire the
inappropriate employees from the organisation, etc. These all functions will help in creating a
better workforce for the organisation and for the workplace.
1.3 Strengths and weaknesses of internal and external recruitment and selection
The internal recruitment is the process in which the employees are recruitment within the
organisation. There will be no involvement of external processes.
Strengths of the internal recruitment process:
 The time required for the hiring process is short in internal recruitment. Like if the
management of McDonald’s announce a new post within the organisation in which the
existing employees apply for that job
 The cost needed for the hiring process will be less the human resource management don’t
need to go out of the organisation
 Employees become more attached to the organisation which will increase the employee
engagement with the organisation and it can add loyal employees to the organisation.
Weaknesses of the internal recruitment process:

 Only a limited number of applicants will be there for recruitment which is a drawback for
the management for not getting more talent addition from the outside of the organisation.
 It will change the whole workforce structure by creating a gap because when an existing
employee is hired for an upper post then his previous position will become vacant.
In the external recruitment process, the pools and drives are conducted to hire the right candidate
from the outside of the organisation. Human resource management of McDonald's has to conduct
this type of recruitment process as they open their franchise all over the world.
Strengths of External recruitment process
 It will help the organisation to get new skilled employees in the system who can have
new creative ideas which can also increase the growth of the organisation
 External recruitment can also help the organisation in getting more qualified candidates
for their job
 Hiring externally may also help in knowing about the other competitive companies in the
market
Weaknesses of External recruitment process
 It is a more time-consuming process
 It requires more cost investment
 Risks factors are high if the higher candidate cannot satisfy the needs of the organisation.

LO2.
2.1 Benefits of different HRM practices within an organisation for both the employer and
employee
In the case of McDonald's, there is a requirement of some skills like good communication and
cooking skills which need to be improved of every employee and it can be done by the use of
human resources practices. Similar to this, there are many other practices of human resource
management which are useful for the employees and employers. Following are the benefits of
human practices for the employees and employers in an organisation:
 Training and development: The training and development programs are one of the best
human resource practices because, in this, the employees are trained to achieve the
objectives and the desired outcome of the organisation. It will improve the efficiency of
the employees. By this, the employees get training to learn new things or enhancing their
skills which can help them in increasing their experience in the particular field. The
employees have opportunities to improve and increase their career growth. In return of
conducting these training and development programs, the employers get the support of
employees which will decrease turnover and increase the productivity of the organisation
(Scott, 2019).
 Resolve conflicts: The human resource management also resolves the conflicts within
the organisation which is beneficial for the employees to raise their voice if they go
through any conflict with the other employees. It can handle the cases of disrespect,
abusing language, etc. and can create a better environment for the employees and the
employers which is beneficial for both of them.
 Performance-based rewards: There was no great equality or justice of management
towards the employees before the human resource management and because of this, the
employees were not getting extra pay for their extra efforts. But because of this practice
of human resource management, the employees started getting extra rewards for their
extra efforts (Qureshi & Hassan, 2013). It becomes beneficial for employees as they are
getting rewards for their work and the employers are beneficial by getting their work
done from the employees of good quality or at the time of need.

2.2 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity:
All the practices of human resource management are considered as effective for increasing the
profit and productivity of an organisation. Following are the HRM practices which are helpful
for the organisation:
 Motivation: The motivation is the method used by the human resource management of
the organisation to make the employees connected to their work by emotions. It helps in
increasing the productivity and the profit of the organisation because it is the technique
by the employees does their work with their full dedication. The motivation can be given
to employees in various ways like by offering rewards.
 Employee relationship: The relationship between the employees improves because of
human resource management as it helps in resolving the issues and conflicts between the
organisation and employees or among the employees. It will help the McDonald's in
creating a better organisational team and will also help in increasing the productivity of
the organisation which will further result in an increase in profitability of the
organisation. The human resource management also keeps transforming the employees
on the basis of their skills and interest which is also beneficial for the organisation.
 Competitive advantage: The human resource management helps the organisations in
collecting and knowing about the competitors in the market which can be used for doing
improvements in the strategies and the plan of McDonald’s. This can increase the profit
by building new strategies for the organisation which can be better than the competitors.
The financial performance will also be improved by this and the productivity will also get
increased as it can give unique ways which are different from the already existing ones
(Vermeeren et.al, 2013).

LO3
3.1 Importance of employee relations in respect to influencing HRM decision making
A good environment of the workplace will always help in building a good relationship with the
employees and this can also affect the decision-making process in the organisation. If the
employees have a good relationship with the organisation then it will result in various advantages
for the organisation. Following are some of the importance of employee relations for
McDonald's organisation in the decision-making process:
 If the relationship of management with the employees is strong then the adaptability of
the employees regarding the new strategies and plans will be more and they can be easily
implemented in the organisation. It will also help the organisation to achieve its goals and
objectives easily without thinking about the methods of introducing the new strategies
and work in the organisation (Aladwan et.al, 2015).
 A good relationship with the employees helps in increasing the trust and loyalty of the
employees towards the organisation. Having a loyal team is so helpful such that the
organisation can handle all the situation and problems without any hesitation. The
conflicts and the issues between the management and the employees will also decrease as
the employees start believing in the policies and the strategies of the organisation
(Nescoresource, 2019).
 The decision-making practices regarding the learning and training of the employees will
be fully supported by the employees which will increase the knowledge of them. By these
training and development programs, the productivity of the employees and organisation
will get increased. It will be an asset for human resource management for making a
decision and taking any step for the employees and the organisation (Hamid et.al, 2017).
To introduce a good employee relationship between the organisation, the management can use
various methods and strategies, some of them are:
 Appreciate them for their services and work they do for the organisation
 Reward them for their good quality work and give them recognition

 Create a system which treats everyone equally and there should be fairness between the
management.
 Assign the right job to the right person according to the interest of the employee
3.2 The key elements of employment legislation and its impact on HRM decision making
For legal employment and other related factors, the HR manager should aware of the various
laws and acts which affects human resource management. Some of the key elements of
employment legislation which affect the human resource management of McDonald's are:
 Avoid discrimination between the employees: The HRM should aware about the various
acts related to the discrimination and the circumstances related to it. The Civil right act
which was established in the year 1964 states that the organisations cannot do
discrimination between the employees before, during or after hiring on the basis of
colour, race, sex, religion, and nationality (Chron, 2019).
 Fair labour standard act: It states that there should be fairness between the employees
regarding their wages or salary, overtime, etc. It will also have laws related to the
minimum amount of wages need to be paid to the employees by the organisation and
timely increment in the wages. The law also states child labor is prohibited in the
organisations (Bizfluent, 2017)
 Health and safety act at the workplace: This act covers the duty of the organisations to
give their employees a safe environment and also the organisation should care about the
health organisation. It has provision related to providing safety or the insurance of the
employee's life at the workplace. It is the duty which is followed by the HRM and affects
decision making because, for smooth working, these laws need to be satisfied and
followed.

LO 4
4.1 Illustrate the application of HRM practices in a work-related context, using specific
examples.
The McDonalds have been an organization who have achieved great heights in the market and
have been among the greatest restaurant chains in the world. An organization with such a
reputation is needed to hire employees who could do really good for the organization.
JOB DESCRIPTION
Job Title: Team member and services.
Specialty: Customer handling and providing good services.
General Information: The McDonalds has been the world’s leading chains of restaurants from the last
few years and that is due to the quality of food and services which they provide to their customers, thus
the team members are required to perform few things in order to achieve good results. The employees are
needed to be very polite towards the customers and enthusiastic towards the work.
Duties:
 Greeting customers.
 Taking accurate food orders.
 Preparing food for the customers and making good Macs for them.
 Cleaning the restaurants.
 Managing the stocks.
Interview Questions:
1) Why do you want to prefer this service providing job?
2) What are the essentials that you have for providing better results to the organization?
3) Why should the organization hire you? State the reason as per the profit perspective of
the organization.
4) The behavior and approach towards the work of the person are to be analyzed.

JOB LETTER:
OFFER LETTER
Dear, Michael Robertson
McDonald's is very excited to bring you on board as Team member of McDonald's organization.
We’re just a few formalities away from getting down to work. Please take the time to review our
formal offer. It includes important details about your compensation, benefits and the terms and
conditions of your anticipated employment with McDonald's.
The McDonalds is offering a full-time job position for you as the team member, reporting to the
Assistant Manager of the London branch, starting on 15th June 2019 at London. The expected
hours of work is 8 hours every day at a pay scale of 2609.84 GBP per annum. You will be paid
on a monthly basis.
As an employee of McDonald's, you will be eligible for name benefits, such as health insurance,
stock plan, dental insurance, etc.
Please indicate your agreement with these terms and accept this offer by signing and dating this
agreement on or before 12th June 2019.
Sincerely,