Sunday, February 24, 2019
Human Resource at McdonaldÃ¢â¬â¢s Essay
I. IntroductionIn todays intensely rivalrous and spheric commercialise manoeuver, having a loftyly committed or competent hands is one(a) of the to a greater extent or less critical factors in maintaining a competitive advantage (Millmore et al., 2007). in that respectfore, in a growing number of organizations, strategical human choices heed (SHRM) is instanter viewed as a source of competitive advantage. strategic human resource concern is designed to help companies meet the needs of their employees while promoting union goals. As an most-valuable aspect of strategic human resource centering is employee maturation, organisations engage to consider employees may want or need and what the association tidy sum reasonably supply ( baker, 2009a Tarique and Schuler, 2010). This research paper tries to discourse how organisations action this mission. We will dissertate to the highest degree two very(prenominal) important aspects of SHRM, strategic international H RM (SIHRM) and physical exertion alliance. Although these two fields will be analysed separately, we can see the link mingled with them when we declare them to the exercise McDonalds (Goldsmith et al., 2009). In separately section, we will discuss about the theories and rides relating to each of those aspects and how these theories showed up in McDonalds.II. McDonalds and Strategic International HRMII.1. Literature review of SIHRM and its modelsThe main trend of recent studies on changes in the business surroundings is the growth of internalisation, for example Ferenbach and Pinney (2012) Hitt et al. (2012) and Zain and Kassim (2012). As businesses bring about more and more worldwide, SIHRM plays an important role in the development and succeeder of multi-national corporations (MNCs) (Festing et al., 2012 Smale et al., 2012 and Stahl et al., 2012). jibe to Briscoe (2012) international human resource management (IHRM) can be situated as set of managerial tools for manag ing organisational human resources at international level to master organizational objectives and competitive advantage over competitors, two domestic and international. IHRM, therefore, includes typical HRM functions much(prenominal) as recruitment, selection, upriseing and development, surgical procedure appraisal and rewards and punishment done at international level and special activities such as spherical management sciences, expatriate management and so on (Millmore et al., 2007).Milliman et al. (1991) developed a SIHRM frame black marketplace based theory of conniption and flexibility. The construct of IHRM fit include external and internal side. outside(a) IHRM fit indicated the MNCs capability to do by with the cross-national purlieu, which includes the social, legal, political and cultural factors of diversified alien countries where they operate. On the separate hand, internal IHRM fit stressed on the management ability to ensure appropriate control and co- ordination between corporate and contrasted subsidiaries. In addition to fit concept, supple was in like manner important as it specified the organisational capability to smoothly consume changes and adapt to divers(prenominal) circumstances. Zheng (2013) commented on the frame range that in todays open global environment in which information and knowledge is transferred freely and quickly, an integration of fit between internal HRM and external functions is required and should not be treated as two separate functions.The SIHRM framework of Schuler et al. (1993) seems to implement this point (Figure 1). The framework naturalized of two major elements inter-unit linkages and internal operations. Inter-unit linkages showed the MNCs ability to differentiate its in operation(p) units thorough the world while, at the same clock time, keep them well incorporated and controlled. Internal operations indicated the fit between each units confines of its local environment, laws, polit ics, finis, economy and society and its own strategic objectives disposed(p) by the corporation. Schuler et al. (1993) frameworks limitation is to ignore the role of human-beings (managers and faculty) which is wide considered as a very important constituent of SIHRM (for example Briscoe et al., 2012 Shi and Handfield, 2012 and Sanchez-Arias et al., 2013). The SIHRM framework of Taylor et al. (1996) stressed on how smoothly top managers can transfer the raise companys SIHRM orientation to affiliates HRM frame, then to contribute organisational values and top managers belief to specific employees within the affiliate (Figure 2). Although Taylors model (1996) can complement the limitation of Schulers framework (1993), we all the same need a more detailed and practical model to reserve in the real business world. This is the point at which the framework for global talent management of Tarique and Schuler (2010) comes in handy. In the next section, we will discuss about the fra mework in details and in the case of Mc Donalds (Figure 3).II.2. The framework for global talent management and the case of McDonaldsa. spheric natural endowment Challenges for McDonaldsThe major driver of global talent challenges for McDonalds is the globalisation. Although globalisation enables firms to employ workers in the developing economies of the world at much lower wages than is thinkable in the developed economies of the world (Wise and Covarrubias, 2012), it also leads to increasing competition in dissipated food industry (Asif et al., 2011 Gupta, 2012 and Royle, 2012). In such circumstance, global competitive advantage is merely for those multinational firms that succeed in locating and relocating its workforce over the world, adapting to local differences, learn continuously, and transfer knowledge more in effect than their competitors do (Molinsky, 2013 Steers et al., 2013).Therefore, human recourse becomes more and more important in maintaining competitive advant age at MNCs. In addition, as McDonalds, like opposite MNCs, expand its business into numerous other countries, its consumers continue to pitch very different buying patterns from region to region. The organisation therefore must get down a talent management dodge in place that continually assesses whether employees have the ability to address the particular needs of a diverse customer base (Podsiadlowskia et al., 2013). In 2011, Manpower Group conducted research among or so 25,000 companies across 39 different countries and territories, which shed light source on that 32% of American companies were looking for foreign workers, higher than any other subject (that number of the whole world was 24%). This raises the demand for workers with competencies and motivation well high, especially for American companies.While the demand was getting higher, the foreign parturiency supply for MNCs was not so abundant. The research of Manpower (2011) showed that 74% of American employers (among 5,820 surveyed companies) found it difficult in recruiting foreign labours. In addition, Pearson (2012) believed that high employee disturbance is a threat for todays businesses. These issues made the labor market more competitive for employers, especially operates in an industry whose the rate of employee overthrow is as high as unfluctuating food industry (Harris, 2012). For McDonalds and other fast food restaurant, there is another specific obstacle. consort to Sharma and Kiran (2012), employees nowadays do not only look for organisations offering high wage but also those whose philosophies and operating practices match with their own principles. This powerfulness ca-ca an issue for McDonalds to compete in recruiting best talents as fast food restaurants usually have bad reputation of causing just healthy issues such as obesity (Fraser et al., 2012 Jeffery and Utter, 2012). Tarique and Schuler (2010) summarised global talent challenges as too little needed talent and too much supernumerary talent, or quite a the needed talent is available in the maltreat place.b.McDonalds Human Resource Actions to Address Global talent ChallengesTalent management chess openings can only be effectively successful when colligate to the strategies of the organization. Since 2005, McDonalds global workforce strategy has been designed to be line up with and support the execution of its business objective, which is to become everyones favorite place and way to eat (Harkins et al., 2005). Interestingly, the global talent management practice initiated by McDonalds nearly ten years ago was very similar to the Tarique and and Schulers framework (2010).Prior to 2001, McDonalds developed its performance assessment system comprised of six performance drivers (Figure 4) on which managers and staffs annual performance will be measured not just on the what of their accomplishments but also on how they accomplished it (Goldsmith et al., 2009). However, when it was roll ed out globally in 2003, it was clear that received elements of the parvenu system re-design were not suited for the foreign cultures and legal structures that existed in certain countries. As a result, all of its affiliate and franchising stores were given flexible to make certain changes to adapt local requirements. This managers initiative reflected the fit and flexible concept of Milliman et al. (1991) as discussed in the last section.In 2003, McDonalds introduced its Global Talent Review Process of which main purpose is to train and develop next coevals of leaders and managers and in 2006, the organisation added a more in-depth analysis of who needs development moves to enhance their experience and a process that facilitates this battlefront (Goldsmith et al., 2009). The initiative allowed potential leaders of next generation to move more freely to various organizational departments in target to realise development seam opportunities with support of their mates and devel op their own talents (Brown and Lent, 2012).With the innovation of attracting and retaining high-performing talents, The McDonalds Leadership Institute and the Global Leadership Development architectural plan were introduced in 2006 (McDonalds, 2013). The Institute was a virtual community that provides a culture of accomplishment and development and to which anyone from any geographic location can accessed. The Global Leadership Development platform focused on preparing participants for broader leadership responsibilities and grammatical construction a strong peer network that will support these individuals in developing their leadership path.The qualitative impacts of these initiatives were managers and staffs became much more aware of the strengths and talent gaps in each area, so they can recognise their own development needs and develop their talents more effectively. In addition, as the number of cross-organizational movement increased, organisation had better selections f or all tasks.Schuler et al. (2010) pointed out several(prenominal) barriers of talent management to which McDonalds and other MNCs should pay attention. First, managers at all levels rather spend time on their own pressing tasks than on talent management schedules. Second, organizational structures index inhibit collaboration and the sharing of knowledge across boundaries. Finally, HR departments might be short of the respect of other executives whose cooperation is needed to implement appropriate HR actions and might not be able to deal with the global talent challenges.III. McDonalds and Employment RelationshipIII.1. Literature review of employment human relationship and new ERM modelIn last section, we discussed how important talent management is for McDonalds to maintain its competitive advantage in todays widely open business. Although McDonalds already has a quite off talent management course of instruction, the organisation should be noticed that its workforce strategy c ould not be successful without great employment relationship. Gospel and Palmer (19933) define employment relationship as an economic, social and political relationship in which employees provide manual and mental labour in exchange for rewards dispense by employers. Rose (2004) clarified that rewards can be not only economic but also social and mental. Millmore et al. (2007) believed that psychological reward is an natural part in employment relationship. They went on to define two let on fruit strategic concepts that were labour management partnership and psychological engagement. According to Millmore et al. (2007), key values of a successful labour management partnership included share of goals, culture, knowledge, effort and information.Armstrong (1996) discussed that the labour management partnership initiated when employees provide skill and effort to employers and the employers provide the employee with a salary in return. However, the employment relationship can al so be expressed in terms of a psychological concentrate be by Rousseau (1994, cited by Millmore, 2007448) as the taking into custody people have regarding the commitments made between themselves and their organisations. Noe (1999, p. 290) states, a psychological contract is the expectation that employers and employees have about each other. According to CIPD (2006), psychological contract breach occurs when employees believe that the organization has failed to deliver its promises or obligations.There were many research works about psychological contract and its vastness in employment relationship, for example Robinson and Morrison (2000) Coyle-Shapiro and Kessler (2000) Guest and Conway (2002) Turnley et al. (2003) Conway and Briner (2005). These works however did not point out a model that is practical and easy to apply and measure in the workplace. In addition, because of globalisation and todays fast changing business environment, the needs of organizations and workers expec tations changed significantly (Burke and Ng, 2006). Therefore, the traditional psychological contract might not work as well as it had been. Besides, most of the research in the past has emphasised the employee, while it should be on both employees and employers thoughts (Baker, 2009a). Baker (2009a) believed that there is a need to develop a new concept of employment relationship that enables corporations to attract good staff and retaining talented employees in todays business environment of volatility, unsealedty, and global competition.In such a business environment the traditional perspective on employment relationship such as that of Gospel and Palmer (1993) might not work. According to Baker (2009a), the new employment relationship model must base on the workers needs with organisational outcomes. He then provided burden attributes of the model including flexible environment, customer-focus, focus on performance, project-based work, human spirit and work, loyalty, breedin g and development and open information. In next section, we will discuss about these core attributes with the illustration of McDonalds.III.2. McDonalds and the application of new employment relationship modelThe first aspect of the relationship is flexible employment which defined by Baker (2009a) as organisation policy to encourage workers to work for other units or departments. In 2006, McDonalds conducted an in-depth analysis of which staffs could be potential leaders and managers, what skills and experience they needs, to which units they should be moved to get these skills and knowledge, and how to facilitate the movement (Goldsmith et al., 2009). The murder of flexible employment strategies can create opportunities for workers to develop their career beyond the confines of their specific specialization. Kappia et al. (2007) proved these career development opportunities could be more motivating than monetary rewards. The concept of customer-focus, which becomes more and more important in business techniques (Bharadwaj et al., 2012 Idris, 2012 Kanti, 2012), is the second attributes of new employment relationship model (ERM). The concept of customer-focus places employees in the unique position of answering to two bosses, the organisation and the customer (Baker, 2002). Baker (2009b) believed that a successful customer-focused strategy depend on managers and workers good communication with external sources such as local communities and culture. Related to the case of McDonalds, its customer-focused Plan to Win relies on local talent to develop a deep connection between McDonalds and the local communities in which it operates (Goldsmith et al., 2009).According to Baker (2009a), the concept of focus-on-performance suggests that customers should focus on the achievements of their job and the way they achieve them instead of job specifications. Organisations, on the other side, should link rewards and benefits with performance rather than organisational polic ies and rules. Moreover, new ERM suggests that an effective multidimensional performance system promotes workers to contribute beyond their regular task while organisations can utilise and reward workers for these non-job contributions (Baker, 2009b). Since 2001, McDonalds redesign its performance measurement system with six performance drivers for which employees be measured not just on the what of their accomplishments but also on how they accomplished it (Goldsmith et al., 2009).The system also enable top managers to signal the splendour of needed culture change in which employees are encouraged to be more innovative and contribute more than merely doing their regular tasks. The quaternary aspect of new ERM is project-based work. As business environment is increasingly uncertain and unstable, project-based work gains more interest from both corporations and employees (Watson, 2012). This initiative includes several forms such as temporary and fixed term contracts, outsourcing, flexible time, part-time working, overtime, job rotation, or functional mobility, which provides job flexibility (Peir et al., 2002) The project-based work is also widely applied in McDonalds as the senior managers often depend on peers assessment in providing employees development job opportunities (Goldsmith et al., 2009).With the increase in market competition and dynamic work environment, many employees are suffering from work overload that could seriously affect the organisational performance (Altaf and Awan, 2011) and many researchers believes that workplace church property is one way to deal with this problem (Karakas, 2010). Baker (2009a) also mentioned human spirit and work as a function of new ERM. The strength of the workplace spirituality on work performace, however, is still criticised by several researches and hypothesis tests, for example Bell et al. (2012) and Weitz (2012). There is also no depict that this concept has ever been applied at McDonalds. Another aspec t of new ERM doubted to be effective and not applied at McDonalds is open information. consignment and commitment, on the other hand, has no doubt to be a so important attribute of new ERM. According to Baker (2009b), these aspects should come from both sides. Employees loyalty is to enhance organisational outcome rather than processes, while organisational commitment is to emend employees personal objectives and development. McDonalds has paid significant attention to its employees for years. McDonalds has its committal Survey to assesses employee satisfaction with the support and recognition they receive, the extent to which their skills are utilise and developed, the degree of their empowerment, working condition and their compensation (Goldsmith et al., 2009).A managers scores on the Commitment Survey are one of many important factors considered in assess employees effectiveness and potential for advancement. Much related to to this aspect is learning and development. As dis cussed in last section, McDonalds initiated its The Leadership at McDonalds Program, which aimed at identifying developing high potential talent, in 2004 (Goldsmith et al., 2009). Having been accessed as qualified candidates of the program, employees will be granted for many individual learning opportunities. First, each participant will have a coach to discuss progress against objectives and receive objective feedback and developmental coaching passim the program. They also have opportunities to work closely with McDonalds high potential peers throughout the program and with talented management peers from other companies/industries as part of the Thunderbird Program in order to build strong internal and external peer networks (Goldsmith et al., 2009).The application of these attributes brought McDonalds several positive signs. As of mid-2006, 34% of the 104 graduates of the LAMP Program have been promoted while only 4% of the them have left the company for other opportunities. It is a key objective of the program for its participants to know they are super regarded and that the company will continue to invest in their ongoing development. The program also made itself a strong brand identity and fair play within the organization and more and more employees want to join the program (Goldsmith et al., 2009).IV. ConclusionAs SHRM becomes more and more important for organisations, it is critical for managers to take in not only its related theories and concepts but also discover and devise the most practical models for which they can apply to their organisation. As businesses become more and more global SIHRM and the model of global talent management of Tarique and Schuler (2010) plays an important role in the development and success of MNCs. Even when organisations already have a quite complete talent management program, they should notice that its workforce strategy could not be successful without good employment relationship. Baker (2009a) believed that th ere is a need to develop a new concept of employment relationship in todays business environment of volatility, uncertainty, and global competition and he introduced the new ERM. The case of McDonalds (Goldsmith et al., 2009) has shed the light on how practically successful these models could be when appropriately and effectively applying in an organisation. This is, however, just the beginning of these relatively young models and the question of whether these models can create sustainable competitive advantage will need more faculty member and practical researches in the future.