1.0                       Introduction

The report discusses strategic human resource policies and practices adopted by the organization, McDonald’s. internal and external forces influencing the organization are discussed in the report about its strategy. The report also discusses theories and models related to the practice and as linked to the organization. Behavioural and cybernetic systems theory are discussed about practices at the UK-based business. Recommendations and conclusions are made at the end.

2.0                       Task 1: Analysis of international and external environment

Internal environment

The internal environment is described using several analytical tools such as SWOT, VRIN, and Porter's Value Chain. The tools are used to assess the potential that an organization has within itself to offer services desired by customers and to stay competitive in the industry.

SWOT analysis

It is used to describe the strength and weaknesses in its internal organization as well as external factors that are either opportunities or weaknesses to its success of targeted objectives. The tool is easy to apply and understand and, hence widely used. However, its many factors do not inform a decision maker on the direction to follow or what to do to realize its objectives. The following is a summary of internal and external factors influencing the profitability and strategy of the organization.

VRIN model

The model is based on resource-based theory of organisation and was formulated by Barnes (1991) in a model to explain competitive advantage of an organisation as source of success. The theory noted that sustained competitive advantage is needed and to achieve it, a business needs to have resources that are characterised as valuable, rare, inimitable and non-substitutable or organisation.

Valuable

McDonald’s has financial and human resources that are considered valuable resources for achievement of its objectives. Human resources are especially useful for the business given that it is service-based where degree of contact between people and customers is high. Financial resources are needed in training of staff to maintain high quality of service that is offered.

Rare

Although financial resources may not necessarily be rare, human resource skills are. The firm has certain value with which employees have been trained to handle customers, process goods in specific quality that is replicable in all its branch outlets. It has workers that are innovative in production of goods that are relevant to customers in a specific cultural location. These skills may be unique due to experience and understanding of one’s trade that it becomes difficult for the same to be easily found anywhere.

Inimitable

Besides being rare, the skills associated with function of human resources are inimitable. They are not easy to replicate by other competitors to achieve the same goal. McDonald’s values of quality, service, cleanliness and value have been preserved and used throughout due to quality and standardised training at especially McDonald University where a good number of its employees and franchise managers are admitted and trained.

Non-substitutable

The resources considered in this case are human resources, some which are skilled and cannot be easily substituted to achieve similar results. There is time, proper motivation and investment in resources to train workers to acquire necessary skills for the purpose.

External environment

These are external conditions in an organisation which an organisation does not have control over as a single firm. These conditions, which are often unpredictable, however possibly influence an organisation in realising its objectives. PESTEL model is used to assess forces affecting organisation’s in a certain environment.

Political

UK has democracy that is considered mature and therefore less likely to influence business operations or cycles. Businesses can be sure to operate without interference of political activities such as elections. Besides, the country has low corporate tax rates and is considered among the least among developed economies at 21%, compared for example, 40% for USA.

Economic

UK is a developed economy, classified among high income countries with per capita income of US$40,550 as of 2015, which is high enough to access disposable income needed to access some of goods sold by the company (World Bank, 2017). Rate of unemployment is also declining, which is a sign of development of economy.

Social

UK has a lifestyle tradition of dining outdoors and fast food consumption, which is a boost to commercial activities of the organisation. According to Donnelly (2017), UK has allowed dining out and fast food to be part of their weekly diet rather than an occasional treat especially among the youth. This has played a key role on obesity. Green (2015) averred, adding that this culture had fuelled an increase of fast food restaurants in the country by 45% in the last 18 years. Some of the foods sold include “fried chicken shops, fish and chip shops, pizza and kebab”.

Technological

Technology is driving major business operations and in the restaurant business, delivery is the avenue being researched, as was forecast by Whiteman as “restaurants without seats, seats without restaurants” (Lander, 2016). UK has also invested in mobile communication and internet connectivity which restaurants are using to connect with customers for orders and deliveries and other business stakeholders such as suppliers among others. This makes business operations more efficient.

Environmental

As of 2013, UK had The EU Waste Framework Directive whose guidelines covered waste collection, transport, disposal and recovery of waste materials (GOV, 2014). Fast food chain stores were also noted to be among the major polluters in the country, making up to a quarter of all wastes that is found in streets. Gray (2009) noted that McDonald’s had signed up an agreement that regulated wastes that left off their packages. As of 2009, McDonald’s accounted for 29% of all wastes that was found in streets.

Legal

The UK has regulatory environment on health and safety, competition and product quality laws that ensures people are not exposed to harmful products and business practices are fair and ethical. Food Standards Agency enforces The Food Standards Act 1999 that ensures food sold is safe and preparation does not in any way make the food unsafe to the consumer (GOV.UK, 2013). Quality and quantity should be the same as declared by producer. Issues of food hygiene and food inspection, labelling and packaging are also covered in this regulation.

3.0                       Task 2: Analysis of SHRM policies

Several theories have been linked to strategic human resource management as the discipline has evolved over time. Some of these include resource-based view of an organisation, behavioural theory, cybernetics systems and agency/ transaction cost theory. These theories are used to carry out and implement strategic objectives of an organisation. These are discussed in relation to policies adopted by McDonald’s in management of its human resource management.

Cybernetics systems theory

This is a systems theory where there are inputs and processes that are meant to achieve certain intended outcomes. The products that are needed are productivity, fast service delivery, attentive and reliable service that are results in higher output, satisfaction of customers and employees. It is therefore considered to be closed where results are directly dependent on HR policies, knowledge and skills that are applied. It also depends on throughput, which are policies and HR behaviours applied by the organisation.

Source: Wright & McMahan (2001)

McDonald’s considers training as key to success to its restaurants that are dotted in several places of the globe and especially in developed and emerging economies. The organisation offers employees an opportunity to “learn while they earn”, which is a programme aimed at enriching experience of employees at the workplace. The firm has inhouse training, where it has training crews, managers and fellow employees that guide an organisation to acquire necessary skills. This also develops teamwork and helps them to acquire necessary skills need for the job such as leadership, communication, customer service, responsibility and time management. It has a training dubbed Restaurant Operations and People Leadership Practices that empowers employees to acquire necessary several skills such as in operational and people excellence, leadership, diagnosis of food quality, restaurant management plan, use of various tools and techniques, conducting performance management and building employee engagement. Training offered is supposed to enable the learners translate classroom theory into practice in its business unit.

The McDonald’s Business Leadership Practices has several objectives, among them, creating awareness and imparting responsibility, enabling them to think critically and creatively. These are all necessary in developing business leaders that are needed to steer successful McDonald businesses. Managers need to have skills to manage several stakeholders including customers, employees and the government.

Besides training and leadership development, the organisation has benefits and rewards that it offers to outstanding employees to motivate them and encourage creativity and innovation in the organisation. Benefits are offered beside the usual salary that is offered to them to increase their earning power. Free uniforms are also offered while Restaurant Staff are offered at discounted prices. These benefits are befitting to work in the organisation that considers nature of their work and welfare. Others such as Comprehensive Group Insurance Plan that includes health, dental, disability and life insurance for employees and their families.

Recognition is part of the organisation’s employee management plans where it recognises hardworking employees, their hard work was recognised and Ray Kroc Award is usually given to top 1% of Restaurant Managers (McDonald's, 2015). Such awards are given to employees that are promising and have their passion for their work to yield results that support McDonald’s goals and values. The rewards ought to be calculated to ensure each employee is suited to motivational strategies applied. According to Robbins (2009), employees ought to receive awards equating to their input and this also means that it should match their abilities, skills, experience as well. Where rewards do not match, employees could be demotivated and create divisions within the workforce. Thus, the firm should put in place mechanisms to ensure employees. McDonald’s has a policy of informing its employees performance management of its employees and this makes the employees see the whole process being fair and just for all. These and other actions such as observation of

Behavioural perspective

It is an approach that is used to ensure employees have certain attitudes and behaviour needed to perform their roles effectively.  

Source: Wright & McMahan (2001)

Certain actions are needed to ensure employees conform to desirable behaviour and these are needed for the organisation to deliver as expected. They are trained with intent on a given strategy to achieve a given objective. Several dimensions can be described as low risk to high risk, flexible or inflexible, repetitive or innovative. The dimension used and applied is contingent in the conditions of the organisation at that time. It also means that employees are trained to acquire behaviours on the need of the organisations. Where an organisation needs to be innovative, it trains employees to acquire relevant behaviour for that goal. It is for that reason that the theory is also called contingent theory where the approach used depends on prevailing circumstances.

Benefits and rewards offered by the organisation are meant to encourage commitment and motivate employees to be more productive and achieve goals needed by the firm. Truss et al. (2012) noted that behavioural approach applied also depends on age or stage development of an organisation. McDonald’s work culture and organisational values enables the organisation to accommodate divergent opinions that result from different communities working for the organisation. For example, 70% of US employees are minorities and women (McDonald's, 2015). Flexibility in working hours at McDonald’s is another strategy that is applied by the organisation. It is also a strategy that is aimed to balance work and life at the organisation that is meant to encourage mature employees work for the organisation and support social life of employees. This flexibility will also encourage personal development through studying and other life commitments (McDonald's, 2017).

4.0                       Task 3: Recommendation on talent management

The recommendations are offered in view of the findings of the organisation and the need to attract and retain talent to the organisation. Human resource management was recognised as an important source of competitive advantage for an organisation and this implies that there is need for an organisation to invest enough resources in managing it the right way.

Diversity is needed at the organization especially given that that firm operates in several parts of the globe where some of these communities come originate. Besides, the organization needs to create a dynamic workforce where all employees of all ages, races, and cultural backgrounds. Both part-time and full-time are accommodated by the organization. This is a strategy that is used by the firm to attract skilled employees to offer their time to an organization while being committed elsewhere.

Team building where the management and workforce work closely may learn closely issues affecting an organisation, McDonalds can do the same and it does this to get channel of communication between employees and the management is shortened the time that it takes to get orders implemented but even much more, getting information directly from employees on issues affecting them. Getting the issues at the ground level is necessary to get right solutions that work for the rest of the workers in a particular restaurant. This is also important as it ensures employees are motivated and they deliver right service to the satisfaction of employees. 

According to Armstrong (2006), talent attraction and retention need policies that work together to ensure they get good talent that stays to ensure realisation of specified objectives. Talent attraction needs to consider strategy of the organisation. Once talent has been identified, they have to be managed to make them commit and productive in their roles in an organisation. Policies made need to ensure they are aligned with objectives, values and mission of a business organisation. Attraction policies need to ensure based on working environment, fair compensation and flexible work environment. Inclusion and diversity is also a strategy that an organisation can use to ensure it attracts diverse talent from various communities. Using affirmative action or quotas on policy representation of all cultures and minorities may work to attract a talent. This may happen because of positive reputation to employees and extended opportunity to employees that qualify to work for the organisation. This may be a challenge especially in the face of competition but may be necessary for long term performance of an organisation. McDonald’s has such policies where old people, women and minorities are given an opportunity to work or supply the firm with needed products needed for manufacturing.

For example, McDonald’s needs to offer employees a chance to develop their talents, skills and abilities. These abilities and skills are acquire by offering training and development opportunities in the workplace. Employees need to ascend in their career ladder. The firm has a role to provide an opportunity to grow once they are deployed in their roles in the organisation. These opportunities are supposed to ensure employees commit in the organisation and get to implement skills and abilities acquired while learning in the organisation. McDonald’s has supervisory and management levels where qualified employees can be ascend to after a given period once they fulfil required requisites.

Given that the organisation has several employees from diverse cultures and generations, there is no single way to motivate them all. There is need to ensure all employees are recognised according to their needs and preferences. Vaiman and Vance (2010) noted that younger employees or generation Y tend to be more flexible and need and tend to be more selective in organisation they choose to work for. Zolkifi (2013) noted that they create flexible work environment such that employees can work as full time and part time. This described behavioural approach so used to describe approaches that some firms use to manage employees to get that desired outcome such as commitment and willingness to market the firm to other peers to join the same organisation.

Armstrong and Murlis (2013) emphasised that organisation need to develop a positive psychological contract between the organisation and employees. The contract is such that employees feel that are part of an organisation and that it cares for their welfare. Total and contingent reward policies should be made evident by the organisation to attract employees and be implemented to keep in the organisation. Well thought-out policies that are not necessarily monetary can be used to motivate workers. Truss et al. (2012) observed that communication and transparency in rewards can be used to encourage employees to commit. Relationship between employers and employees work to ensure they understand their needs. This can be used to promote commitment.

Conclusion

Employees are recognised as unique resources that can help and organisation achieve competitive advantage. The process of training and motivating them is what makes them unique compared to other resources. They need to be trained strategically to realise desired objectives. McDonald’s is one of the renowned organisations globally and besides its financial resources, management resources. Reputation and multiple store outlets globally were identified as some of its strengths. Two models of strategic human resource management of systems theory and behavioural approach were described and linked to policies of human resource management at the organisation. Recommendations made for attraction and retention of talent include using policies that identify and accommodate various cultures, providing matching perks and using transparency policies that ensure barrier between employees and management is limited. Training and development and opportunities for career growth were also identified.

 References

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