Strategic Human Resource Management Sample Assignment (GC0612)

University of Sunderland London -Faculty of Business and Law

HRM32: Strategic Human Resource Management

Table of Contents

Introduction.

Task 1: McDonald’s’ Environment Analysis.

Task 2 Human Resource Policies and Procedures.

2.1 Matching Model of developing HRM policies.

Task 3 Recommendation for McDonald’s plc.

3.8 Motivating employee.

3.9 Workforce management

3.10 Improve barrier awareness regarding cultural factors.

Conclusion.

Reference.

Introduction

Strategic human resource management (SHRM) is the process of connecting human resource functions with the organization’s strategic objectives in order to develop business performance. McDonald’s is chosen for this assignment. This report focuses on different issues of SHRM and used in a specific company named McDonald’s plc. Firstly, this report provides an overview of McDonald’s plc. This report makes the situational analysis of McDonald’s plc by implementing a number of models and theories. This report describes several policies of HRM and rules for McDonald’s using different models and theories. This report provides recommendations for McDonald’s plc, thus, it can target talents from different backgrounds and can retain them for a long time, and can create barriers awareness out the cultural factors.

Task 1: McDonald’s’ Environment Analysis

SWOT is the business administration tool that mainly stands for strengths, weaknesses, opportunities, and threats. SWOT is utilized as a part of a business connection and it helps businesses to cut a practical corner in the business sector (Palmer, 2014). The SWOT analysis provides an acceptable perspective of the business’s strengths and permits organizations to develop on them to achieve the targets of the business. In addition, it identifies the weaknesses of an organization and also provides opportunities to business organizations to overturn them. It provides for a business sneak peek into the opportunities that dwell ahead. Kotler et al. (2014) said that the five forces in Porter’s model are the bargaining power of buyers and suppliers, threat of new competitors, the threat of substitute products, and industry rivalry.

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Porter’s five forces determine the competitive environment of a company that affects the business profitability. Kotler et al. (2014) stated that PESTLE is the strategic framework to understand the external influences on the business. PESTLE stands for “Political, Economic, Social, Technological, Legal and Environmental” and is applied for business and also for strategic planning, marketing planning, organizational change, business and product development, and research reports (Palmer, 2014). McDonald’s has faced a number of challenges from its political, social, economic, technological, legal, and environmental factors, where the main challenges come from social, political, and technological factors. So, McDonald’s can take effective initiatives to achieve these challenges as well as develop business performance.

Task 2 Human Resource Policies and Procedures

HRM or, Human resource management means the approach for managing people to achieve the strategic objectives of a business. Mullins and Laurie (2015) stated that strategic human resource management means a process of connecting human resources functions of a business organization with the strategic objectives to develop the performance of a business.

2.1 Matching Model of developing HRM policies

Fombrun proposed the ‘matching model’, which indicated that HR systems and the organization structure should be managed in a way that is congruent with organizational strategy (Kotler et al., 2015). This point was made in their classic statement that: ‘The critical management task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization’. Thus they took the first steps towards the concept of strategic HRM.

Diagram: A matching model of HRM Source: Fombrun et al. (1984)

According to the above model, both employee and business performance rely on the strategies of human resources which are taken by a business organization. Therefore, organizations such as McDonald’s should improve their effective selection process policies, HR development policies, performance appraisal policies, and reward policies to achieve effective employee performance and also motivate them in the workplace.

Task 3 Recommendation for McDonald’s plc

A number of recommendations are provided to McDonald’s to target talents and also retain them for supporting McDonald’s future performance. On the other hand, this section of this report has taken some new methods or policies to manage the human resources properly in McDonald’s plc. Last, of all, this section focuses on the awareness of the barriers to proper implementation such as cultural differences of a business and working legislation or practices.

McDonald’s should follow the sequences of recruitment and selection procedures to target the talents and also retain them for a long time. McDonald’s plc should assess the needs of the talents as well as defines the vacancy for the talents. McDonald’s has to give effective advertisements on the vacancies that help to target the talents. After that, McDonald’s should develop the plan of recruitment by creating a number of recruitment techniques. After that, McDonald’s needs to manage effective recruitment and selection committees. Then, McDonald’s needs to implement a recruitment and selection plan as required. In the following steps, McDonald’s needs to review the applications and should make shortlists based on their skills and experiences. Then, McDonald’s should arrange interviews following scientific methods and should find out the right candidates who fulfill its recruitments. Last, McDonald’s has to provide the jobs to its selected candidates by using letters and conducting valid written agreements. Satisfaction and security of a job is the essential issue to target the talents and also retain them in the business for a long period. Dowling et al. (2013) said organizations need to treat their employees as valuable assets to make sure of the commitment, job security, high quality, adaptability, and proper rewards.

3.8 Motivating employee

Torrington et al. (2013) said that Employee motivation is a factor, or factors, that induce(s) an employee to pursue work-related tasks or goals. Two theories of motivation include extrinsic motivation and intrinsic motivation.

In the case of McDonald’s, McDonald’s should use Maslow’s hierarchy model of motivation theory to encourage or motivate the employees in its organization. On the other hand, McDonald’s has to pursue the five-level of hierarchy to recognize the needs and expectations of employees and it should improve different rewards or incentive systems to motivate the employees in the workplace.

3.9 Workforce management

According to Mullins and Laurie (2014), Workforce Management (WFM) is an integrated set of processes that a company uses to optimize the productivity of its employees. WFM involves effectively forecasting labor requirements and creating and managing staff schedules to accomplish a particular task on a day-to-day and hour-to-hour basis. Thus, McDonald’s has to develop a number of strategies to monitor, analyze, and review the employees’ performance and activities in the workplace. Therefore, McDonald’s can apply a number of key indicators to evaluate employee performance in the workplace.

3.10 Improve barrier awareness regarding cultural factors

Psychologist Dr. Geert Hofstede published his cultural dimensions model at the end of the 1970s, based on a decade of research. Since then, it’s become an internationally recognized standard for understanding cultural differences. These six cultural dimensions are power distance, uncertainty avoidance, masculinity, long-term orientation, uncertainty, and individualism.

Diagram: Hofstede’s Cultural Dimension Source: Mullins (2014)

McDonald’s has about 25000 employees who are come from diverse cultures and backgrounds. Therefore, the six cultural dimensions described in the diagram should become below the deep consideration of McDonald’s. Thus, it can also take different business strategies and can avoid the cultural barriers in I workplace and can minimize the staff conflicts in the workplace. On the other hand, effective strategies also increase the motivation level of the staff and decrease the high turnover, as well as develop staff retention and motivation in the workplace.

Conclusion

McDonald’s is chosen for this assignment. This report has focused on different issues of SHRM and used in a specific company named McDonald’s plc. Firstly, this report has provided an overview of McDonald’s plc. This report had made the situational analysis of McDonald’s plc by implementing a number of models and theories. This report has described several policies of HRM and rules for McDonald’s using different models and theories. This report has provided recommendations for McDonald’s plc, thus, it can target talents from different backgrounds and can retain them for a long time, and can create barriers awareness out the cultural factors…………..

Reference

Boxall, P. and Purcell, J. (2013) Strategy and Human Resource Management 3^rd Ed. Harlow: Palgrave Macmillan publications.

Dowling, P. J. et al. (2013). International Human Resource Management. 6th Ed. London: Thomson Learning publications.

Dessler, G. (2014). Fundamentals of Human Resource Management. 5th Ed. London: Prentice-Hall.

Edwards, T. and Rees, C. (2013) International Human Resource Management. 4th Ed. London: Prentice-Hall publication.

McDonald’s Annual Report (2017) McDonald’s Annual Report-2016. Available at: www.McDonald’s.co. the UK. [Accessed on 20 April 2017]

McDonald’s plc (2016) McDonald’s HRM policies and requirements. Available at: www.McDonald’sfamily.co. the UK. [Accessed on 25 April 2016]

Mullins, J. and Laurie, J. (2014) Management and Organizations Behaviors. 8th Ed. London: Pearson Education Ltd.

Torrington, D. (2013). Fundamentals of Human Resource Management. 4th Ed. Harlow: Prentice-Hall.

Human Resource Management