Human resource management is a new idea which has not fully been looked into although plays a large part in all organisations. It is still in its growth stage in its life cycle but what has come out so far is fairly in depth but not to the fullest extreme
In the following report I will be studying a fast food restaurant named Macdonald’s. This company has over eight hundred and fifty restaurants in the United Kingdom alone and is present world-wide. The company is the largest Franchise Company in the world with over seventy percent of restaurants being run by independent entrepreneurs. In the United Kingdom alone there are approximately seventy five percent of the companies being run by managers for the company and twenty five percent being run by franchises. The company I am talking about is around twenty-five years old and has one of the quickest growth rates known in this type of business. The aim of Macdonald’s in the next 3 years is to increase the proportion of franchises to company owned business to one third over the next three years.
Section3: Background and history of company
The company I am going to talk about in particular is located at the retail and leisure complex in Stoke on Trent this company is only six years old and is one of the busiest in the region. The General Manager is Julie Room. The sales of the company on a weekly basis are around ?50, 000 and 40%of that comes from the drive-thru part of the business. The restaurant has approximately 16, 000 people come through it a week and the company itself has 103 employees and 10 managers. Seventy percent of workers are only part timers. The manager seems to think that this is quite good as it makes everyone more flexible therefore helps to increase the availability of the pool of labour. The Manager herself classes everyone as a big team and there is no different class between management and crew. The management know that there is a high employment turnover as people are always leaving therefore recruitment and training is needed so as to make sure that there personnel are equipped properly to deal with the customer needs. All the employees are hired on a three week trial period which the company reserve the right to terminate employment at any time.
Section4: Human resource function
There are four fundamental principles on human resource management
1) Human Resources.
2) Personnel policies and procedures are closely linked and make a major contribution to the achievement of corporate objectives and strategic plans.
3) Corporate culture and values, organisational climate and managerial behaviour that emanate from that culture will exert a major influence on the achievement of excellence. This must be continuously reinforced and started from the top of the hierarchy.
4)Finally it must be fully integrated within the organisation involved so as to give the workers a common purpose.
“The human resource function is part of the generality of the management” (Mullin’s, 1993).
Firstly I will define the difference between human resource and personnel management. Human resource management is “directed mainly at management needs for human resources not necessarily employees to be provided and deployed. There is a greater emphasis on planning, monitoring and control, rather than problem solving techniques and mediation. It is totally identified with management interests, being a general manager activity, and is relatively distant from the workforce as a whole.”(Torrington and Hall, 1987)
Personnel management is directed mainly at the organisations employees; finding and training them; arranging for them to be paid; explaining management expectations; justifying management’s actions; satisfying employee’s needs, dealing with there problems. (Torrington and Hall, 1987)
There is always some degree of being in between the management and the workforce, mediating the needs of each to the other.
The structure of the business I am studying is hierarchical although they do try to completely integrate all the workers within the company.
1) Crew member
2) Five star crew member
3) Training squad member The hierarchy moving
4) Hourly paid floor manager up in Stature.
5) Salaried floor manager
6) First assistant manager
7) Store manager
8) General manager
The purpose of having a successful human resource department is to fulfill, and ensure that a number of aspects are considered. A simple and common analysis of these essential factors is as follows:
Macdonald’s HR function is to comply with any particular of the above. Other essential ideas that the “personnel” manager maintains is as follows:
Manpower planning and employment
Salary and wage administration including related reward systems
Education, training and development
Employee services, welfare, health and safety
For successful human resource management to take place in any organization there is a need for a clear structure that defines a strategic plan. The primary reasons for human resource management planning is as follows:
Determine recruitment levels
Anticipate redundancy and avoid unnecessary dismissals
Human resource planning is a key aspect of personnel as it links together business strategy and the management of people. In order to ensure successful human resource management, a clear strategy needs to be used.
Section5: Human resource management strategy
The company itself has an induction and at this they test the knowledge of the prospective employee upon subjects such as health and safety as well as hygiene. There is a video, which is shown to all new applicants it is called the team video, which gives information upon and about working in McDonalds. The promotion within the company is very high. Almost 80% of the top manager’s have started out as crewmembers (the bottom of the hierarchy). Also one the presidents’ was a crew member therefore giving more incentive to the workers at the lower levels to continue being motivated. Not all restaurants have a General manager only the large ones.
“Training is a systematic effort to modify and develop knowledge and skills and attitudes through learning experience to achieve effective performance in an activity or range of activities” This is the aim of the MacDonalds’ training regime. Although firstly they have to pass a three-week probationary period but once this has happened they are part of the team. For full training to be completed on a full time worker the general manager says that they need to work for approximately 6months and for a part time worker they need to work for 11 months. This is due to them having to learn about 16 different areas in the restaurant. These areas include: grilling
filet and pies
The learning process is done through a “Buddy” system which is when someone first starts they are teamed up with a partner who is an experienced employee and part of the training squad. For approximately 3weeks or until they think they are experienced enough to work in that area of the restaurant. Once they are considered competent at this they are given a star and it continues like this up the hierarchy. To get a star the employee needs to pass a test. This will consist of verbal tests and observations by their “Buddy”. The observations from the “buddy” are written down on a checklist that consists of about 25 procedures, the employee should know about for each area of the restaurant. Each month normally an employee can gain a star at the start until they get up to the five star region in the hierarchy then from then on it gets harder to continue up the hierarchy.
“Having the right staff, that are trained in the right positions is essential” (Reed, 1999).
The goals the company set itself start at the start of the year and their main goal is 100% customer satisfaction. Also to gain market share and increase profitability. The overall success of the company is down to teamwork and everyone who works here is committed and has a good working relationship between them and this is essential.
After investigating the human resource function and structure of the particular organisation in question and looking a little more in-depth to their training methods, some key points have arisen. As shown below:
Human resource management is essential for an organisation to survive
Human resource management changes the perceptions of both employees and employers
There is defined differentiation between “personnel” and “human resource”
The human resource management function includes the “Le PEST & Co” factors which essentially need considering to ensure success
Training involves growing in knowledge, skills and attitudes through learning experience.
Training can act as a reason for motivation.
M. Armstrong “A handbook in Human resource management”
Published 1988 Kogan Page Ltd
R. Pearson “The human resource”
Published 1991 McGraw Hill Ltd
D.C. Wilson “A strategy of change”
Published 1992 Routledge
D. Torrington ; L. Hall “Personnel Management”
Published 1987 Prentice Hall Ltd