Unit 22 Managing Human Resources Assignment McDonalds

Program	Diploma in Business
Unit Number and Title	Unit 22 Managing Human Resources
QFC Level	Level 5

Introduction

This Human resources assignment McDonalds deals with the different approaches undertaken by the Human Resources of a company for the elevation of its productivity. The company, which has been assessed in this report, is McDonald’s which is considered to be one of the largest fast food chains all over the world. The first deals with the HRM practices proposed by John storey and David Guest in their respective models. It is followed by the importance of flexible working practices in an organization like that of McDonald’s. The third part deals with the problems of discrimination, which are prevalent in workplaces, and the steps taken by the management for marketing of McDonalds has to deal with them. Lastly, the importance of maintaining the health of the workers is stressed in this report.

Task 1

1.1 Explain Guest’s model of HRM as applied to the organization of your choice

Professor David Guest in his HRM model proposes several HR practices which the management of a company can follow in order to enhance the productivity of the company. He explains the differences between personnel management and HRM practices. (Spicer, 2013) The model comprises of the following components:

• HRM policies
• HRM strategies
• HRM outcomes
• Financial outcomes
• Behavioural outcomes
• Performance outcomes

(Professional Shiksha)

For a better understanding of the Guest model, we have selected McDonald’s where the management implements various HRM strategies for the development of the firm. The suitable HRM outcomes need to be achieved with the help of the following ways:

• Employee commitment: According to Guest, commitment of the employees is necessary for achieving desired productivity and also for retaining the able ones is the company. In McDonald’s, the employees are provided with adequate training practices so that they can improve their working capabilities. (Spicer, 2013)
• Quality: The floor managers and supervisors of McDonald’s explain the targets to the employees so that they can act accordingly. This transparency helps to build a relationship of trust where both the employees and the supervisors can work with each other. The management also seeks information from the employees before formulating any policies.
• Flexibility: It refers to the performance of the employees when the management decides to undergo certain changes (Rees and Smith, 2014). The pay structure of the workers is revised from time to time. Flexible working hours are also provided to the workers. Incentives are also given depending on their performances.
• Strategic Planning: McDonald’s provides its benefits with several benefits for motivating them. The proficient workers also get the opportunity to attend the development program, which is an initiative of the McDonalds University.

1.2. Using an organization of your choice, compare the differences between Storey’s definitions of HRM, personnel and IR practices

The basic assumption of the John Storey HRM model is that HR practices is important for a company to survive in the competitive world. His model comprises of the following:

• Assumptions and beliefs
• Key levers
• Implementation of strategies, and
• Key functions of line managers

Storey divides the HRM practices into two categories:

• Soft HRM: The employees are not considered objects but assets of the company who are required for the growth in the production (Armstrong, 2012). McDonald’s is one such company that provides the employees with several benefits to retain them in the firm.
• Hard HRM: In this case, the employees are considered the ‘resources’ of the company who are utilized for enhancing the productivity. For example, in McDonald’s employee performances are measured by calculating the overall productivity of all its franchisees.

The primary differences between Storey’s definitions of HRM, personnel and IR practices with respect to McDonald’s are as follows:

	Personnel and IR Practices	HRM Practices
Contracts	Practiced as per the written contracts.	Flexible in nature, these can be practiced beyond the written contracts.
Management	Supervises the work.	In McDonald’s, all the performances of employees are monitored and evaluated in order to enhance the performance of the company by increasing the productivity of the franchisees. (Cogin and Williamson, 2014)
Key Relation	The focus in mainly on workforce management	McDonald’s takes care of all the stakeholders of the company other than the employees, like customers, shareholders, etc.
Speed	The process of  decision-making  is comparatively slower.	Decisions in McDonald’s are taken swiftly because of the presence of a developed communication system among managers and employees.

1.3 Assess the implications for line managers and employees of developing a strategic approach to HRM for McDonalds

Line managers are responsible for the smooth functioning of any organization. Similarly, they play a vital role in McDonald’s along with the employees. Both the employees and the line managers drive towards achieving the objectives of the firm but their roles are completely different from each other that are as follows:

• It is the responsibility of the line managers to monitor the performances of the employees and to let them know the future targets of the company. On the other hand, the employees put in their maximum efforts in return of salaries, incentives and other bonuses (DeNisi and Griffin, 2015).
• The lines managers promote teamwork in the organization. Employees are also given a chance to share their suggestions with the management for the improvement of the workplace. They also try to meet the needs of the consumers by developing strategic plans.

Following are the implications of line managers and employees in McDonald’s for developing a strategic approach to HRM:

• Participation is considered the main element of McDonald’s strategic plan because employees, supervisors and the managers coordinate with each other and work as a team for achieving the goals of the company. The flat organizational structure helps in the formation of a well-knit communication system that facilitates this kind of functioning.
• The line managers develop a leadership style, which gives the employees the liberty to share their opinions. This participative style of leadership motivates the employees to give their maximum efforts that increase the productivity of the organization (Wagner III and Hollenbeck, 2014).
• The supervisors inform the employees about their daily works and objectives right at the beginning of the working hours. This prevents the chances of misunderstandings among employees and managers.

Task 2

2.1 Explain how a model of flexibility might be applied in your organization

Flexibility can be explained as the necessary changes that are made in an organization which has an impact on the performances of the employees. Flexibility in the work hours increases the productivity of the employees as they can choose the work timings as per their convenience. This also increases the creativity of the workers. Flexibility is helpful for both the employers and the employees.

The flexibility model of McDonald’s resembles Shamrock Model of Flexibility. The various aspects of this model are as follows:

• Core Workers: The main employees of an organization like McDonald’s are known as core workers. They are provided with training facilities in order to enhance the productivity of this already competent group of workers. They are able to handle all sorts of situations owing to their experience and training. Monitoring the performances of fresher is also another major responsibility of the core workers (Edgell, 2012).
• Contractual Fringe: The group of employees working at the franchisees of McDonald’s falls under this category. Although they are not permanent workers, yet they have adequate knowledge of the objectives, rules and regulations of the firm. These workers are also provided with published training booklets that help them to enhance their performances. This set of workers experience high flexibility as they get the privilege to change the locations of they wish to.
• Flexible Workers: McDonald’s organizes apprenticeship programs for a year, which are mainly attended by students. The students select the course timings as per their vacations and other conveniences (Leekha Chhabra and Sharma, 2014). They also gain knowledge about the working of the restaurant chains that helps them to decide if they wish to make a career in this industry.

2.2 Discuss the types of flexibility which may be developed by your organization

The fact that flexibility is an integral part of McDonald’s is evident from the very beginning of the job process. The employees are asked about the amount of time that they can spend in the workplace and their preferred working hours. Accordingly, the candidates are grouped as part time workers and full time workers. The management of the company has mentioned that the flexibility of the organizational structure helps to increase the productivity of the firm. Even students who are associated with the apprenticeship programs enjoy this facility of work flexibility.

(Types of Workplace Flexibility)

Part time work model- The students and other employees work in the part time model. Although they work as part time employees, yet they are not deprived of the incentive and bonus options. The franchisee management decides the working hours of the students keeping their convenience in mind. It has been noticed that these workers give their maximum efforts in the productivity of the firm due to the prevailing flexibility in the workplace (Sardar and Talat, 2015).

Job sharing model- In McDonald’s, the employees are moved within departments so that they can gain a basic knowledge of the workings of all the departments. This will help them to develop their versatility and productivity. If the company faces any kind of crisis, then these workers will be able to share responsibilities and provide the customers with a good quality service.

Participation- The managers encourage team working in the company. Employees are given the freedom to express their opinions about various issues of concern (Emerson and Prang, 2015).

Convenience- Selecting work timings and work places is one of the major advantages that the employees of McDonald’s get which helps in the work practices.

2.3 Assess the use of flexible working practices from both employee and employer perspective

Flexible working practices are beneficial for both the employers and the employees. This holds true for the members of McDonald’s as well. The main objective o the employers is to elevate the productivity of the firm, whereas, employees are keen on getting appropriate incentives, remunerations and a good working environment. Both the employees and employers have realized that their requirements can be fulfilled by the flexible working practices that have some disadvantages as well.

Employees

• The employees get spare time for their personal works due to the flexible work hours at McDonald’s. They feel valued and give more efforts in the production process of the company.
• At times, the employees use this spare time in the development of McDonald’s itself.
• As discussed earlier, the management encourages team working but this can be hampered as the workers are often shifted from one location to another and from one department to another (Gould, 2010).

Employers

• More and more candidates get attracted to McDonald’s due to the prevalent flexible work conditions. This helps the company to get hold of skillful candidates who can further improve the total yield of the company. Even fresh candidates are willing to put more effort as compared to the experienced ones.
• Flexible work practices can cause conflicts among employees which the management may find difficult to manage. The shifting of members from one department to another does not give them ample time to develop a friendly relationship among themselves. This can also result in conflicts.
• Another drawback of the flexible work practices in McDonald’s is the absence of capable employees during the peak sales hours (Wetherly and Otter, 2014). This can have a negative impact on the business because the customers will not get superior quality service.

2.4 Discuss the impact that changes in the labour market have had on flexible working practices

Globalization has led to several changes in the labour market of the world. The strategies adopted by the management vary from place to place and from one company to the other. Increasing the output of the company and retaining able employees are the main motives behind the implementation of such practices and McDonald’s is not an exception. The company engages itself in such practices without compromising on the aim of profit maximization. These changes influence the working practices as well:

• The employees are benefitting from the immense development in technology and education facilities. These facilities are provided by the Government and also by the management of different organizations which will help the employees to gain diverse knowledge about the various types or works that take place in an organization. For examples, students are provided with apprenticeship programs during their vacations and holidays where they get to know the work culture in the leading food chains of the world. These one-year programs educate students as well as help them to earn money.
• With the growing access to the internet, employees have the opportunity to gather more information about the working conditions present in the various fields of occupation (Lloyd, 2016). The Government of UK has come up with several vocational training programs for the workers to improve the quality of their work. The traineeships and internships are advantageous for the fresher who are about to make their careers in different industries.
• The Government also provides loans to young people for their startups and other trainings who repay the money after acquiring a minimum amount of wealth (BBC News, 2012). McDonald’s make all decisions after going through the changes in labour market due to education and technology.

Task 3

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

(Pinterest)

When an employer does not treats all his employees equally based on caste, creed, gender, race and colour, it is known as discrimination at a workplace. One can categorize discrimination into two:

• Direct Discrimination occurs when an employee is differently treated due to his or her race, colour, gender, etc. The Equality Act 2010 prohibits such practices and the employees are given the liberty to report these incidents to the Employment tribunal (Davies, 2011).
• Indirect Discrimination is practiced indirectly through the implementation of rules and regulations in an organization. Discrimination can also take place during training, transfer and selection processes. These incidents can also be reported if they affect the victims.

The year 2016 witnessed a case of direct discrimination at a McDonald’s outlet in Virginia where 12 employees accused the franchisee and the franchisor of treating them unfavourably (Shah, 2016). They complained that the supervisor made racial comments, jokes and slurs towards them since they were Hispanic and African American in origin. The services of the employees were also terminated. In order to get justice, the employees reported the case to the federal court in Virginia. The franchisee was heavily penalized due to the harassment meted out to the employees.

McDonalds prohibits such acts of discrimination in its code of practice. However, the authorities need to take strict actions against franchisees that perform such acts by removing their partnership from the food chain. The failure to do so will prove to be negative for the brand reputation of McDonald’s. The company should also make a more detailed selection of the franchisees before granting membership to them. It is important for McDonalds to function in adherence to government rules and regulations against discrimination.

3.2 Discuss the practical implications of equal opportunities legislation for an organization

The UK Government works towards achieving equality in workplaces, which has resulted in the formation of several disciplinary bodies. The Equality and Human rights Commission is one of the bodies which safeguards the interests of the minorities in organizations. According to the Equality Act 2010, the employees have the privilege to utilize the various benefits that are provided to them in an organization even before starting work in the company (Butler, 2016). Discrimination based on gender, colour, race, etc. is prohibited. Unfavourable behaviour during recruitment, transfer and training of employees is also restricted. Even the targets and benefits given by the company should be equal for everyone. For instance, McDonald’s clearly describes the responsibilities, roles, salary and benefits of candidates in recruitment advertisements. In case of conflicts between the employer and the employees, the government acts as the mediator. Employees can report incidents of discrimination to the trade unions and can move to the courts if proper actions are not taken.

The positive implications of the equal opportunities legislation are:

• A transparent work environment will help the employees to give their best performances.
• The employees are treated equally and incentives are given as per performances.
• Organizations like McDonald’s attract eligible candidates for work due to their strict code of practice against discrimination.

The negative implications of the equal opportunities legislation are:

• True or false allegations by the employees can harm the reputation of the company, McDonald’s (Gabriel, 2012).
• The court may decide to penalize the company due to such practices.
• Such incidents demoralize the employees who restrict themselves from giving their maximum efforts which results in the low productivity of the company.

3.3 Compare the approaches to managing equal opportunities and managing diversity

It is the responsibility of the management of a company to manage equal opportunities and diversity in an organization for motivating the employees. These two major factors lead to the formation of a positive workplace environment that helps in enhancing productivity. Although these two attributes vary in their approaches, yet they are applicable to McDonalds.

Managing equal opportunities is to make sure that no acts of discrimination take place within the organizational structure of McDonald’s. The management makes sure that all the employees are given equal targets, incentives, and trainings in the workplace. During the recruitment process of McDonald’s, the company mentions the details of the vacant posts, the salaries, locations and all other important factors very clearly in the advertisements of the newspapers and job portals. This level of transparency is maintained in all the levels of the recruitment process. The management of McDonald’s has also started the Women’s Leadership Program in order to motivate the female workers. Any forms of discrimination based on gender, race, colour are strictly prohibited by the company (McDonald’s, 2016). Employee benefits are also provided in the form of discount coupons, insurances, etc.

Managing diversity aims to support the various kinds of religion and culture in a workplace. The employees of McDonald’s are selected based on their expertise and not on their cultural or religious background. The management makes sure not to sell any kind of food item that might hurt the religious sentiments of the people of a place. As for example, in India the company does not sells any kind of beef products. Job rotation among employees also helps in managing diversity.

Task 4

4.1 Select an organization you work or have worked for, identify and compare the performance management methods used

Performance management is the responsibility of the HR department of a company that involves the evaluation of the performances of employees by measuring the difference between their actual output and the expected productivity. After a detailed evaluation, the management adopts several measures to meet the deficiencies. In this task, I have selected McDonald’s where performance management is done twice in a year.

(NHC School of Business)

The methods that are used are as follows:

• 360-degree feedbacks: This particular method is used in McDonald’s involves the gathering of responses from all the employees of the company for a particular member. The feedbacks are generally on performances, behaviours, targets, and so on. The advantage is that this method is transparent as the assessment is done by several responses (Eagly and Chin, 2010). This has a disadvantage as well as an employee can be popular in the organisation leading to partial opinions.
• Observation method: In this method, the supervisors in the different outlets of McDonald’s are given the responsibility to observe the performances of employees and evaluate them accordingly. This is a very fast process as the responses can be sent immediately. However, if the employee shares a negative relationship with the supervisor then that can have an impact on the feedback.
• Participation: Employees are given the liberty to express their opinions and suggestions in McDonalds before the management takes any particular decision. This makes the employees feel valued which enhance their productivity (Chuang and Liao, 2010). On the other hand, these feedbacks include the personal interests of the employees, which the management may find difficult to fulfil. The developed communication system also makes the workplace environment transparent.

4.2 Assess the approaches used to managing employee welfare in your organization

It is very important for the management of a company to implement various methods for employee welfare for increasing the productivity and to retain the skilled employees in the organization. The strategies that are adopted by the arrangement motivate the employees to give their maximum efforts so that the output of the firm improves. According to Maslow’s theory, employees generate one need after the other when they find that their initial desires are being fulfilled. Therefore, the management of the organizations have identified the major needs and planned strategies to meet them.

(Great Place to Work Reviews)

McDonald’s has come up with Mc Resource, which provides financial help to the families of the employees. Safe drinking water facilities along with safety in the workplace are a few of the measures that have been adopted by the HR department to maintain the health of the employees. The training and development courses that are initiated by the McDonald’s university are a part of the welfare schemes (McDonald’s, 2012). Employees can also enrol themselves in different courses of McDonald’s that will be helpful for their future endeavours. Through these welfare approaches, the management of McDonald’s is able to retain the employees and has also been able to increase their enthusiasm for work by motivating them. However, this has a negative impact as well because the expenditure of the company per employee increases to some extent.

4.3 Discuss the implications of health and safety legislation on human resources practices

It is very important for the management of an organization to look after the  health and safety  issues of the employees.

In UK, the Health and Safety Act 1974 was formed to safeguard the health of the employees in various organizations. It aims to decrease the number of workplace accidents and hazards. This is done mainly by the enforcement of certain laws regarding the control of explosives and harmful emissions from the factories (Hughes and Ferrett, 2015. For example, McDonald’s uses fire alarms and fire extinguishers for protecting employees against probable dangers.

The Health and Safety Commission also helps in the process by educating the employees with various steps that they can take to maintain their safety in the organization. This particular body also helps the Government of UK by proposing different ways of bringing about the necessary changes in the areas of health and safety. McDonald’s maintains a daily check of its equipments and the quality of its food.

Another measure was taken by The Working Time Regulations 1998, which focused on the work timings of the employees. It was stated that an employee must not be asked to work at night for more than eight hours. It was also stressed that employees have the freedom to take leaves in order to take care of the newborn babies (Méndez and Serrani, 2016). Implications of health and safety legislation on HR Practices are:

• These measures will motivate the workers and will enhance security at workplaces.
• Employees will refrain from being absent which will increase the productivity of the firm.
• The reputation of the company will also be heightened.
• A lot of time will be spent for the risk assessment process, which will hamper the productivity.

4.4 Evaluate the impact of another topical issue on human resources practices

It has been noticed that most of the organizations remain indifferent towards the need of the employees when it comes to their personal time. The difficulty of the employees in maintaining balance between work and personal life is regarded as another major topical issue on human resources practices. To help the employees in maintaining a work-life balance, the management of McDonald’s has developed a number of programs.

The management of the company has identified the problem and has realized that the right balance between work and life will lead to higher productivity. Employees are given holidays on the anniversary, shorter working Fridays during the summer season, several family holidays, maternity leaves, childcare schemes, etc. Educational assistance is also provided up to a reimbursement of $5250 per year. Other than these, employment benefits of shopping cards, discount coupons and health insurances are also given (Reilly and Williams, 2016).

It has been noticed that due to the measures taken by the management to maintain work-life balance, the employees feel valued and they put more efforts in their work. On the contrary, the management may not be able to provide holidays due to immense work pressure, which results in conflicts among employees and their employers. Even excessive work pressure, over time can have negative impact on the performances of the employees. Therefore, it is very important for the management of any company as McDonalds to implement strategies that will help the employees to strike a correct balance professional life and personal life.

Conclusion

This particular report draws attention to the areas where the Human Resources department of an organization needs to focus so as to implement advanced HRM practices instead of traditional personnel management. The Guest’s model and Storey’s model has been applied to the organizational structure of McDonald’s. It has been noticed that flexibility is one of the major factors that lead to the enhancement of the productivity of the employees. However, any workplace like that of McDonald’s is not bereft of discrimination practices which hampers the reputation of the company. The management is trying to prohibit such acts of discrimination by following governmental rules and regulations. Not only that, the management of McDonald’s is also following the various legislative measures of the Government to safeguard the health of the employees.

References

Armstrong, M., 2012. Armstrong's handbook of management and leadership: developing effective people skills for better leadership and management. Kogan Page Publishers.
BBC News. 2012. Start-up loans scheme to help young people launched. [Online] Available: http://www.bbc.com/news/business-18231285 [Accessed 28 Oct. 2016].
Butler, M., 2016. Equality and anti-discrimination  contract law : the Equality Act 2010 and other anti-discrimination protections. Spiramus Press Ltd.
Chuang, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service context: Taking care of business by taking care of employees and customers. Personnel Psychology, 63(1), pp.153-196.
Cogin, J.A. and Williamson, I.O., 2014. Standardize or customize: The interactive effects of HRM and environment uncertainty on MNC subsidiary performance. Human Resource Management, 53(5), pp.701-721.
Davies, A., 2011. Workplace Law Handbook 2011: Employment Law and Human Resources. Workplace Law Group.
DeNisi, A. and Griffin, R., 2015. HR3. Cengage Learning.
Eagly, A.H. and Chin, J.L., 2010. Diversity and leadership in a changing world. American Psychologist, 65(3), p.216.
Edgell, S., 2012. The sociology of work: continuity and change in paid and unpaid work. Sage.
Emerson, L. and Prang, Y., 2015. Compensation and Benefits: Company-Provided Benefits at McDonald’s.
Gabriel, J., 2012. Racism, culture, markets. Routledge.
Gould, A.M., 2010. Working at McDonalds: some redeeming features of McJobs. Work, Employment & Society, 24(4), pp.780-802.
Hughes, P. and Ferrett, E., 2015. Introduction to Health and Safety at Work: For the NEBOSH National General Certificate in Occupational Health and Safety. Routledge.
Leekha Chhabra, N. and Sharma, S., 2014. Employer branding: strategy for improving employer attractiveness. International Journal of Organizational Analysis, 22(1), pp.48-60.