This report was written in order to identify the HRM practices of the McDonald’s chain. Moreover, the choice of the company, its market and its current global position was approached in the purpose to outline the importance of the company. The report was focus on McDonald’s to evaluate the change needed to the future regarding the current approach to HRM. Also, staffing issues were considering within McDonald’s as a part of any future decision on continuing global expansion. To build this report, was using first hand research from academic sources, secondary articles from newspapers, journal, videos and web site and finally knowledge about Human Resource Management and McDonald’s policies. The main findings of the report were to target HR approaches with models and theories in order to write future changes within McDonald’s company. It was concluded that organisation requires be aware about competitors and economical changes in the purpose to stay the most attractive and successful fast-food chain.
HRM approach of McDonald’s
Evaluation of possible changes needed
Ethical aspect of culture
Supply of potential employees
LIST OF FIGURES
EPRG framework and companies size
Talent Management Model
In 1954, the first restaurant of the chain was opened in the world. Today, more than 32,400 restaurants are managed by McDonald’s to provide to customers “high quality food, quick service and value for money everyday” (Investor in People, 2008). Currently McDonald’s is archetypal multinational restaurant chain. Indeed, needless to specify that the fast food restaurant chain ranks first in the market place with over £23 billion turnover in 2009 (McDonald’s Corporation, 2009) ahead of many organizations. Currently, the company is employing over worldwide 1.7 million people. In addition, worlds’ largest company has an essential impact on economy due to its notoriety and its strength. Furthermore, its strength is to adopt a strict and effective HRM process to recruit, train and manage employees at all levels in order to deal with contingent and complex situations (About McDonalds web site, 2011). Indeed this strict and effective Human Resource Management (HRM) process allows the company to face competitors, such as Burger King in the UK. The company most years adapts procedures within purpose of improving relationships between organisation and employees. In fact, cultural diversity and equal opportunity are the main ideas of McDonald’s. However these different functions, such as planning, integrating or evaluating (Bratton and Gold, 2007) give a way for the business to approach issues, allowing the development of McDonalds’s global activities and practices. Thereby, McDonald’s revolutionized the market due to profits and benefits being the result of good HRM planning. This report will tackle HRM procedures in McDonald’s industry and will try to explore possible future trends in the HRM within the chain. Finally it will discuss how the organisation can consider the staffing issue according to future decisions. 2
HRM APPROACH OF MCDONALD’S
If McDonald’s is the major brand of fast food outlet it is due to tapproaches taken by it. Before treating with some theories, it would seem wise to give a definition of HRM. Following Bratton and Gold (2007) “HRM is a strategic approach to managing employment relations […], this being achieved through a distinctive set of integrated employment policies, programmes and practices”. In fact, HRM’s procedures aim to develop organisation with the relationship and the involvement of employees. Currently, McDonald’s is a single international chain that operates with a specific level of resource involvement. Douglas and Perlmutter (1969 –...
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