Human Resource Planning and Development:
Human resource development is a concept that has existed even before the 1980s and has played an important role in the success, growth, and development of organizations. The emergence of this concept can be attributed to the establishment of apprenticeship programs in the 18th Century (Werner & DeSimone, 2011, p.5). The significance of human resource development in today’s business environment is attributed to its role in organizational profitability. Human resource planning involves the use of business activities to forecast how management strategy changes will impact human resource needs in the future. On the contrary, human resource development activities help an organization to ensure its workforce has necessary competencies or skills to meet the current and future job demands. In essence, human resource planning and development focuses on labor supply and demand in an organization.
McDonalds’ Labor Demand and Supply:
McDonalds Corporation is the leading fast food restaurant chain across the globe that serves tens of millions of customers on a daily basis. The corporation has fast food chains in more than 200 countries worldwide and customizes its food products to meet the demands of customers in these regions. This company has achieved tremendous success and profitability throughout its operations to an extent that it is regarded as the epitome of globalization. The ability of McDonalds to maintain its profitability is influenced by its excellent customer service and growth through various strategies including franchising and acquisitions.
The other significant aspect in McDonalds’ operations is the firm’s labor demand and supply. Since its inception, McDonalds Corporat...
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...s labor supply. The impact of globalization and technological change on the organization’s labor supply is its effect in the nature and location of jobs, required types of human resources, and employees’ skills and competencies. These changes and development are increasingly contributing to radically changing and different working conditions that affect employee recruitment and maintenance. As a result, the corporation must develop new measures for hiring and maintaining in light of the changing working conditions. Actually, globalization and technological change is an environment factor that has contributed to changes in employees’ mind set from traditional to modern thinking. Technological advancements contribute to the introduction of new machinery in the workplace, which creates the need for proper and adequate training for effective work (Yusufzai, n.d.).
McDonalds. What had started as a humble family owned drive-through has become a multi-million dollar industry. Everywhere one goes, there are reminders of how amazingly widespread this company has become, whether it be seeing McDonald’s famous golden arches on a billboard or hearing the catchy “I’m Lovin’ It” tune in a commercial. But more than this, McDonalds has become part of our global identity– our McWorld.
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
Their constant changes are more directed at customer satisfaction than keeping in line with their competitors. New market entrants, although small and initially insignificant, are exerting the most force over McDonalds Canada. They are able to cater to individuals a lot easier than a multinational company is and it should be these that McDonalds model any future changes on. As mentioned above, the introduction of organic products and the presentation of ‘greener’ images are essential for McDonalds to compete in a changing consumer environment.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
According to The Statistic Portal “McDonald’s has grown into a global giant with increasing restaurant numbers years-on-years – in 2014, McDonald’s had 36,258 restaurants worldwide.” In 2015, number of franchises in the United States are 12,836, Canada are 1,181, and international are 15,527; the company personally owned 6,714 restaurants. The numbers of people who visit McDonald’s has increasing from 108.52 million in 2009 to 113.82 million in 2013 (The Statistic Portal). McDonald’s serves 1% of the population every day. People can easily find a McDonald’s restaurant around them; it is everywhere: in the malls, air ports, and even in hospitals. People have been eating McDonald’s since the company opened in 1948. Nowadays, it is often being
Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
Tracey, W. R. (1994). Human resources management & development handbook. Amacom books. Retrieved from EBSCOhost.
In education, human resource planning serves as a link between human resource management and the overall strategic plan of the sector (Human Resource Planning, 2012, p.17). According to Beardwell & Holden (...
Human resource management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. (1)
Human resource management and the organizations in which it takes place are facing challenges from a changing environment. Hiring the proper people with the appropriate skills is an essential part of maintaining the workplace. Economic issues which include downsizing, organizational culture, productivity, ethics, demographics, and diversity plays a significant role when redesigning a company 's Human Resource Department. Success in the field of Human Resource requires an update of knowledge continually. Training, certifications, hands-on experience, and tactic knowledge helps to perform a difficult redesigning task with speed and sensitivity. Human Resource actions are comprised of but not limited to equal employment, staffing, compensation, benefits, labor relations, and safety. Ethical issues are
McDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. However, McDonald’s earnings has declined in the late 1990’s and 2000s. This is mainly due to a fiercely competitive industry and variety in customer tastes and preferences.
Much like a smile, the “Golden Arches” can be understood in any language. The McDonalds brand is the most well-known, internationally embraced fast food empire. McDonalds operates over 31,000 franchises throughout the world, with the United States leading the way with a whopping 13,381outlets as of May 2009 [1]. McDonalds has the fast food market cornered, offering an increasing variety of food of beverages, marketed to people of all ages to eat at any time of the day. However, being a corporate giant has its issues. McDonalds has faced a lot of criticism for its high-fat, high-sugar, potentially addictive menu. While the corporation is not likely to outright admit responsible for its actions, McDonalds has seen some changes to address some of the issues. Despite the flaws in the public elements of the brand, McDonalds has established an almost recession-proof economic base [2].
McDonalds uniform menu offerings can be mass produced; therefore helps to lower production costs. Additionally, the company bargaining power with its suppliers lowers its input costs and boost margins and even more importantly, McDonald 's offers a very large advertising budget which gives the company a significant competitive advantage over its competitors. Much of McDonald 's sales occur outside the United States and thus, with McDonald 's tapping extensively into global expansion therefore the company’s international operations will continue to strive and