HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM) is a formal system designed to recruit, guide and manage productivity of an organization. Human Resource Management is intended to maximize the productivity by optimizing the talents of the employees. In this project the functionalities and the objectives of Human Resource Management will be discussed. Here, the different approaches of employee selection and recruitment will be elaborated, along with its strengths and weaknesses (Boella, 2017). This project also discusses the Human Resource Management practices which benefits both employee and employer along with the practices to increase the profit and productivity of an organization. The importance of employee relations and employee legislations in Human Resource Management decision making is elaborated in this project. Finally, the application of Human Resource Management in work related context is analyzed (Marchington et al. 2016).
P1 Purpose and Functions of Human Resource Management
Human Resource Management plays a critical role in recruiting new employees for the organization, looking after the payment and wellbeing of the employees and allocating work to the recruited employees. Human Resource Management is also responsible for maintaining the working environment and the productivity of the organization. First Human Resource Management identifies the department where new employees are required. The Human Resource Management then starts the recruitment process. Considering that McDonald’s require new employees for the post of ‘Order Taker” in any one of their franchise. The Human Resource Management of McDonald’s will search for the following criteria in an aspiring employee: - good communication skills, knowledge of basic mathematics, knowledge of English & locally spoken languages and natural tendency to work in team. Based on these criteria the Human Resource Management of McDonalds will select some candidates. They will then be trained to match their job profile. Though the candidates are selected for the “Order Taker” post, they will be trained in every workstations of that franchise, in order to give an overview of all the departments present in that franchise.
If more than one department is vacant at the same time, them the Human Resource Management of McDonald’s with recruit for both the departments simultaneously. Again considering that there are vacancies for both “Order Taker” and “Grill Team” post. The criteria of the “Grill Team” will be listed out by the Human Resource Management. The criteria can include- good communication skills, basic knowledge of cooking or grilling, knowledge of English & locally spoken languages and natural tendency to work in team (Bratton and Gold, 2017). McDonald’s Human Resource Management will recruit candidates simultaneously for both the posts. The candidates will be trained in all the workstations of the franchise and according to their performance on those workstations, they will be sorted out. Those who performed well in the “Order Taker” department will be employed as “Order Taker” and those who performed well in the “Grill Team” , will be employed as a part of “Grill Team”.
Another function of Human Resource Management is to maintain the work environment. The Human Resource Management of McDonald’s accomplishes this by resolving any inter employe dispute or by resolving any issues regarding the appliances of equipments used. The Human Resource Management looks after the well being of the employees by providing them leave when required and paying them accordingly (Bamberger et al. 2014). The Human Resource Management motivates the employees by creating rewards such as “Employee of the Month” and giving special gifts to that employee. The Human Resource Management increases the profit and productivity of McDonald’s by keeping everyone happy. If all the employees are happy, they will work with dedication; which will maximize the productivity. This in turn will result in customer satisfaction, thus increasing the profit of McDonald’s.
P2 The strengths and weaknesses of various approaches of the recruitment and selection process
The various types of recruitment process that are followed by McDonald’s are: Internal Sourcing, External Sourcing and Third Party Sourcing
Internal Sourcing: In Internal Sourcing, McDonald’s Human Resource Management advertises about the vacant positions to the existing employees. This method of upward recruiting reduces the expense of advertising and training the new employees. The employees recruited by internal sourcing me require little or no training. McDonald’s Human Resource Management are also spared from running a background check (Nankervis et al. 2013). Internal Sourcing also establishes equality and loyalty among team members. The main disadvantage of internal sourcing is that a new vacancy will be created whenever the employee takes the new role (Armstrong and Taylor, 2014). No new ideas will come to the business. Internal Sourcing also reduces the potential number of candidates.
External Sourcing: In External Sourcing, McDonald’s Human Resource Management recruit candidates from external recruitment tools like newspaper advertisements, trade publications and job boards. External Sourcing increases the number of potential candidates by bringing candidates with or without any kind of experience (Elnaga and Imran, 2013). These candidates may have the potential to bring out of the box ideas that can help the organization to grow significantly. External Sourcing can be applied is Internal Sourcing fails that is no current employee is fit for that vacant position. The disadvantage of External Sourcing is its expense of advertising and arranging interviews. External Sourcing usually takes more time than Internal Sourcing. Another disadvantage is that, there is no assurance that the selected candidate will fit with the work culture of McDonalds.
Third Party Sourcing: Third Party Sourcing involves a recruitment agency to find qualified candidates. The McDonald’s Human Resource Management provides some amount of money for the appropriate candidates provided by the recruitment agency. Third Party Sourcing spares the McDonald's Human Resource Management from checking the backgrounds of the candidates. One of the main disadvantages of Third Party Sourcing is the cost of recruiting (Karin Andreassi et al. 2014). Other disadvantages may include lack of control, indirect candidate access and communication issues.
P3The various practices of the Human Resource Management that facilitate the employee and the employer
The Human Resource management is the most important and essential pillar of an organization because it helps in building a stronger bond between the employees and employer in order to accomplish the projects. Human resource management plays the role of viaduct that links the employer and employees in aspect of meeting their own criteria. The human resource management manages the organization to improve the productivity and the profit that helps in improving the overall growth of the organization. The functions of the human resources are vast and it is the pillar of the organization which maintains the integrity (Cascio, 2018).
In this context, we are discussing about McDonalds which is a public limited organization and it has the ideal body of Human resource management. The McDonalds has the various branches around the world and different sections of human resource management that controls the huge number of employees. McDonalds has their own organizational goals and to meet this objectives they never compromised to make any changes in their organization. Thus they have created many sub sections so that they can able to manage each and every employees of it. However, the human resource management has several functions that practices in an organization. The below points are the practices of the human resource management that provide benefits to employers and the employees both (Fallatah and Syed, 2017).
Human resource management set the goal for every employee in order to increase the productivity and setting a goal that indirectly help the employees to work with the target. When a target is there the employees will be systematic and focused it helps the organization as well to accomplish the objectives (Hoque, 2013).
The human resource management also provides the feedback to all the employees according to their performances. This practice helps the employees to know their flaws that they can rectify themselves in order to deliver the perfect products and also to learn more from their mistakes.
The other important practice of the HRM is providing best facilities inside the organization so that the employees can feel more encouraged to accomplish the jobs. On the other hand, maintaining the proper infrastructure is also an important practice of the HRM. Human resource team always connect with the employees in order know the feedbacks about the workplace so that they can provide the best services to the employees.
The work environment is also created by the human resource management by making all the activities transparent towards the employees. Transparency always declines the biases from the environment of the workplace. This practices trigger the extra energy to all individuals to work with full effort.
The practices of providing leisure time to employees are also the tricky effort from the human resource management. It is an attitude that creates the additional pressure upon the employees to work even on the off days if there is a need. HRM Provides awards and the special benefits to employees according their performances (Kuutti, 2015).
P4 Evaluate the effectiveness of the different Human Resource management practices in order to increase the productivity and the profit/ revenue
Here we are discussing about the McDonalds and the agenda of McDonald’s is getting the customer satisfaction in order to spread their business around the world. Hence, they have created their organization customer friendly and passed this value to each employee. Now every employee is aware of it that they are serving the public and the feedback of each customer and their satisfaction is the best award for them (Mahajan, 2017).
In every sector that deals with public has an extra pressure and the productivity and marginal revenue are depend on their effectiveness of the HRM practices. Human resource practices make a organization and disciplined in aspect of providing excellent products. In this context, McDonald's serves public and the face of the brand McDonalds is their employees who represent the organization. The Human resource must provide proper training to the employees so that the employees can understand the organizational values and the objectives. The human resource management team must provide proper training to make them accustomed with the culture of the organization (Mahajan, 2014).
The main agenda of McDonald's is providing the same feeling to the entire customer irrespective the geographical area and the employees must learn this activity to accomplish this goal of the organization. If the human resource team fails to make the employees understand the values and the culture of the organization, it will fail to provide their special product they are aiming for. Thus, the effectiveness of the human resources inherited into the productivity as well as in the profit. The organization must provide the promised quality of services to its customer otherwise the customer will not visit McDonalds and it will affect the organization to retain the marginal revenue.
The productivity and the performance of a particular organization is depending on the efficiency of a human resource management thus, the HRM must be attentive towards the employees and its duties in order make the organization successful to reach the long term and the short term goals of the organization (Mahajan, 2014).
P5 Analysis of the employee relations in terms of the HRM decision making process
Good employee relations indicate that employees are happy about their job, their identity as well as being a part of McDonald’s. In McDonalds, there can be several issues which can a single employee cannot take decisions alone. He/she needs the support and guidance of others. Sometimes some important point can be missed out by an employee, which can be pointed out by his/her fellow employees. A healthy employee relation will decrease the workload of the employees and increase the productivity (Reiche et al 2016). A single employee cannot do everything on his own. Responsibilities should be divided among team members to reach the organizational goal quickly. If an employee has good rapport with his co-workers, they will always be eager to help him with his work. An employee cannot focus on his work if he has a bad relation with his co-workers.. Without unnecessary stress or tension, an employee can be more dedicated to his work, which in turn will increase the productivity of the organization (Alfes et al. 2013). When an employee feels secure and confident, he can deliver his best. He feels motivated in an organization if he has somebody whom he can trust. A healthy employee relationship will minimize the chance of conflicts and fights among employees. In a healthy working environment people do not waste their time in meaningless disputes and conflicts, rather focus on their work and tries hard to perform better and keep everyone happy. A healthy employee relation stops the employees from complaining against each other and encourages them to be more focused to their work.
Employees having warm relations can take a leave when needed, without taking any tension since they have some trusted colleagues who can handle their work on his behalf (Nadolny and Ryan, 2015). Healthy employee relations spread positivity around the organization. If a healthy employee relationship is present in the working environment, then the employees will feel like a team. If all the employees of McDonald’s become happy and behaves like a team, then it becomes easier for the McDonald’s Human Resource Management to take any organizational decisions on behalf of a team. The entire team of employees will follow any decisions taken by the McDonald’s Human Resource Management.
P6 Key elements of the employee legislation that affect Human Resource Management in the decision making process
The elements of employee legislation that affect the Human Resource Management decision making are: Anti- Discrimination, Wage and Hour, Leave Provisions and Medical & Disability.
Anti Discrimination: The Human Resource Management of McDonalds should not discriminate any employee on the basis of “religion, race, sex, color, or place of origin”. The Human Resource Management of McDonald’s cannot dismiss any employee from his employment, or cannot refuse to hire an employee or discriminate otherwise for any of the above reasons.
Wage and Hour: The Fair Labor Standard Act (FLSA) states the minimum wage that can be provided to an employee. The Human Resource Management of McDonald’s cannot pay less than the minimum wage. The Fair Labor Standard Act (FLSA) gets updated periodically so that the employees get a fair wage. The Fair Labor Standard Act also requires the Human Resource Management of McDonald’s for pay for any overtime done by the employee. Failing to follow the Fair Labor Standard Act may result in penalties (Nickson, 2013).
Leave Provisions: The Family and Medical Leave Act (FMLA) allows qualified employees to take a unpaid leave of up to 12 weeks in a one year period, for various circumstances such as serious health condition of the employee or his family, or welcoming a new baby into the family. The employees are given job protection during this period of time. Their health coverage also continues during this period, as if they have never left work.
Medical and Disability: Many federal laws guide the Human Resource Management of McDonalds on how the employees with disabilities should be treated. The laws prohibit the Human Resource Management of McDonalds from discriminating against employees based on his/her disabilities. The laws also require the Human Resource Management of McDonalds to provide reasonable accommodations to the employees with disabilities.
P7 Demonstration and the explanation of the application of Human Resource practices in the work related context
Knowledge of basic mathematics
It can therefore be concluded that with emphasis being paid on the purpose and functions of HRM in McDonalds, several aspects have been identified. Furthermore, the strengths and weaknesses of the various approaches of recruitment and selection process have been taken into consideration with emphasis on various HRM practices. Further, evaluation has been carried out on the effectiveness of HRM practices with focus on the company’s profit and increased productivity. The significance of employee relation has been given due emphasis with thereby determining the decision making processes accordingly. The key elements of employee legislation are taken into account that would further have a positive impact on the decisions taken by the human resource manager in determining increased productivity and performance of the company. Lastly, a demonstration has been carried out for the effective application of HR practices for McDonalds and how it has helped them further to enhance their business processes and performance.
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