Effect Utilization of Human Resource Management

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Effect Utilization of Human Resource Management

For a company, Human Resource [HR] is the most important asset it can have. It is only this asset whose value increases with time while others depreciate (Mathur, 2002). Mathis and Jackson (2003, pp.4) defines Human Resource Management [HRM] as
‘The design of formal systems in an organization to ensure effective and efficient use of human talent to accomplish organizational goals’.
This is further explained by Newman and Hogetts (2003) as functions of HR i.e. employment, training and development, compensation and benefits and human resource planning.
McDonald’s, a fast food company has nearly 32,000 restaurants in about a 120 countries with a workforce of 1.6 million. HR at McDonald’s is an independent department performing functions like policy making, job analysis, recruitment and selection, training and development, performance appraisal, compensation and benefits, In policy making, HR department establishes major policies which take into their ambit the place and importance of people. McDonald’s conducts regular job analysis to hire new employee at a yearly or quarterly basis. In recruitment and selection it uses internal and external recruitment. In Internal recruitment they either selecting candidates from inside on the basis of their past performance and by putting up placement adds on their website and notice boards called job positioning or succession planning i.e. hiring senior employees on the basis of their performance. When it comes to training and development, McDonald’s has an extensive training program which using on-job-training, lectures, job rotation and audio-visual based trainings. Performance appraisal at McDonald’s is done through the graphic rating scale which evaluates an employee on traits such as communication, personal effectiveness/efficiency, teamwork, productivity, quality of work and reliability. It also plans and forecasts personnel needs using “trend analysis” in which managers



References: Jitendra, M. D., 1999. Resource management. Delhi: Deminant Publishers and Distributors. Worldwide Corporate Responsibility Online Report: The Values we Bring to the Table, 2009. McDonald’s Worldwide Corporate Responsibility Report [online] 2008 Available at: <http://www.mcdonalds.at/presse/maps/McDCSR.pdf> [Accessed June 1, 2011]. Mathis, R. L. and Jackson, J. H., 2003. Human resource management. 10th ed. Southwestern College Publishing. Mathur, B. L., 2002. Human resource management. New Delhi: Mohit Publication. Newman, D. R. and Hodgetts, R. M., 2003. Human resource management: a customer-oriented ppproach. Prentice Hall International, Inc.

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