Human Resources Management (HRM)
Human Resources Management (HRM)
Through strategic HRM, McDonald’s has been able to formulate various HR strategies that are essential to the overall running of their business. The use of strategic HRM assists the company to manage its human resources in accordance to their future intentions (Ahmad, 2003). The process allows them to make different decisions that are geared towards making patterns that are used by the organization over time. Areas that need to be developed are easily noticed and acted upon by the organization with ease. Changes can also be affected easily by the organization when HR strategies are put in place. The company’s strategies are provided to ensure a competitive advantage over other food chains around the globe.
Discussion and analysis of Macdonald’s HRM practices and strategies
According to Chen (2009) the different nature of businesses often provides them the advantage of choosing from a varied list of HRM practices and strategies. Companies make use of strategies that can ensure increased profits and strength in the market when compared to their rivals. It is vital to that there are no single set rules or characteristics that can be used to tie HR strategies because of their different nature. Most strategies and practices can be termed as general intent while others deal with the future plans of the organization in question and are always detailed (Collins, 2003). Macdonald’s makes use of overarching strategies, specific strategies and High-performance culture strategy in their operations.
Overarching strategies are crucial as they describe all the intentions of the company and how they plan to manage their staff workers while retaining their customers (Fabi, 2000). Such strategies make the organization attract the group of people they need for purposes of competitive advantage (Buller, 2012). The strategies allow the food chain store to develop appropriately the various steps they require to ensure that all their employees are engaged, motivated and committed to their various functions. Such provisions are crucial as they increase the morale of the workers who in turn provide quality services to the advantage of the food chain. The strategies are often perceived as broad brush statements that indicate the purpose and aims of the company while preparing for other specific strategies (Huselid, 2003).
HRM strategies are known to deal with the company’s effectiveness hence achieving HRM advantage and overall competitive advantage (Jayaram et al., 2006). The food chain has been able to employ the best people in their outlets, and this has made them increase their level of output in the long run. Macdonald’s competitors have not managed to increase their revenue over time because of such strategies that are at play in the company. The staff that is known as the best is using better processes and end up providing quality services to all their clients. This has made the organization to be a great place where workers can work without any hitches. Through such provisions the food chain has been able to maintain their staff for longer periods as they are always motivated by the management.
The food chain understands that they have a challenge in maintaining their competitive advantage hence the need to maintain and attract a high-level working group. They understand that the key differentiator on the operations lies fully on the people the food chain employees. The people in the food chain are recognized as the most important facet as they are in a position to ensure the success of their operations in the long run. The food chain understands that money can only become possible when they make use of high caliber employees in all their departments. However, they also consider training and manpower capabilities as they are components necessary for their success.
Specific HR strategies
Specific HR strategies in companies indicate what they want to do for purposes of continuous improvement, management of knowledge, employee relations, rewarding and talent management (Schuler, 2009). Macdonald’s manages their talents to increase their level of patronage and increase their overall competitive advantage in the long run. The food chain also is focused towards innovations that are geared towards marketing their brand around the globe without any problems. It has managed to maintain their brand name through their products and services hence keeping a high competition among other rivals.
The food chain has also started different practices of creating and sharing information on health issues to ensure an increased number in their portfolio. The make use of high-quality professionals during such provisions and increase in their learning and development processes. Learning and developing help organizations to ensure environments that are suitable for workers while providing different products and services to the people. Through resourcing, the company has been able to attract people who are of high caliber, and those that are in tune with their overall goals and objectives.
Rewarding outstanding members in an organization helps in increasing the morale of workers who in turn endeavor to provide quality services to all the customers (Kong, 2009). Such a strategy has led to increased profits and clientele base in the past. The employee relations facet has introduced new policies that are geared towards ensuring better relationships between the management and workers and all other trade unions concerned with their operations (Schuler, 2009). All the above processes have been at the forefront of ensuring increased competitive advantage in the long run as they capture a wider clientele base around the globe compared to other food chain outlets.
High-performance culture strategy
Companies need to have clearly set performance measures (Huselid, 2010). Leaders are often given the mandate of ensuring proper behaviors in the workplace to ensure success. This strategy is crucial as it helps the organization’s management to plan different activities that ensure cultures of working in conducive environments. When workers are appreciated, they often tend to provide services that are of high quality (Lengnick-Hall et al., 2009). In Macdonald’s, all the workers are always appreciated and encouraged to provide quality services to all the customers. Such provisions have made it possible for the company to increase their level of profit and clientele base within a short period. Workers are often recognized for their performance and ideas leading to increased motivation levels. The strategy has made the company increase their competitive advantage and proper future plans.
Developing an HR system that is effective is usually critical to the success and competitive advantage of any business operation (Budhwar, 2002). An effective strategy for any business should be one that achieves the stated goals and objectives (Shen, 2009). Businesses often have different needs that they desire to achieve within a particular working period. They often develop strategies that can make them become better after and achieve their goals in the long run. Such strategies are usually integrated and coherent with different components that are fitting to one another. The strategies also need to account for all the needs of the managers and employees without forgetting other stakeholders (Tiwari, 2012). HR planning in Macdonald’s has achieved this provision and is on the road to success.
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