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key elements of a HRM strategy.
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Introduction A comprehensive Human Resource Management Strategy plays a vital role in the achievement of an organisation 's overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. A comprehensive HRM Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments. In essence, an HRM strategy’s aim should be capturing the ‘people’ part of an organisation and its medium to long-term projection of what it wants to achieve, ensuring that: • It employs the right people • Those have the right mix of skills • Employees show the correct behaviours and attitudes, Furthermore, we will be attempting to critically review the link between McDonald’s’ current HRM strategy and its impact on wider organisational strategy. One of the reasons we have identified McDonald’s as a good candidate for reviewing the influence of HRM Strategies on wider organisational strategy is because they employ over 91,000 people in the UK alone and: “McDonald 's is the leading global foodservice retailer with more than 35,000 local restaurants serving nearly 70 million people in more than 100 countries each day” (About McDonald’s 2014). According to BrandZ100.com, McDonald’s is ranked 5th in the Top 100 most valuable brands in the world in 2014, and at number 1 in the Fast Food category (BrandZ.com 2014). Firstly, we will look at Human Resource planning which “is a process through which employers anticipate and meet their needs for staff” (Boddy, 2014). Typically, the starting point of such process centres on identifying and filling gaps in the organisation. While finding new recruits is one option of such strategy, reconfiguring existing resources could be another, furthering the bond between employer and valued employee by offering internal promotions or introducing new policies on flexible
This report will provide about world famous hamburger brand “McDonalds”. The business started in 1940 at San Bernardino, California. Now, it became world largest scale of hamburger fast food restaurants. Their principles of modern Fast food restaurant was originated from “Speedee Service System” in 1948. We can observe many of McDonalds logo very easily especially in mall or city area. Their main selling items are hamburgers, French fries, chicken and breakfast items. Not only these items, they are expanding their menu such as smoothies, salads, fish and wraps. As they provide various choice of menu. They can attract more customers. McDonalds serves around 68 million customers daily in 119 countries across 35,000 outlets. In 2012, the company showed annual revenues of $27.5 billion and profits of $5,5 billion. In addition, according to BBC report, the company is the world`s second largest private employer behind Walmart. The McDonalds provide not only indoor services, they also provide other type of services such as Drive-thru which allows customers to buy and pay in the car without getting off from it.
Mcdonalds have created a barrier that its competitor are hardly to fit in as much as they do in fast-food industry, because they have really good quality products and service that public and consumer have learned to expect from from fast food industry.
Human Resource Management (HRM) is the administration and control of employees. Its purpose is to ensure that the workers and the employer cultivate a valuable relationship. As a result, the company will record an exceptional performance particularly with regard to employee productivity (Paauwe, 2004). Further, the workers will benefit in terms of job satisfaction and self-development (Paauwe, 2004). Some of the activities involved in managing workers include selection and recruitment, training, development, motivation, and appraisal (Sharma, 2009). This paper aims to analyse the role of human resource management in organisations and its linkage to the wider organizational strategy using Tesco and Harrods as illustrations.
The McDonald's Corporation, headquartered in the United States, is the world's largest chain of quick service fast food restaurants operating in around 119 countries with a customer base of 68 million. A McDonald's restaurant operates either through a franchisee or the corporation itself and its revenue stream includes rent, royalties and fees or the sales of products respectively.
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).
sales. Similarly, McDonald's serves about 1% of the world's population on any given day through its 23,000 restaurants internationally. Big Mac, the world's most sold hamburger was developed by...
Ulrich (1997) defines strategic HRM&D is an outcome: ‘as organisational systems designed to achieve sustainable competitive advantage through people’. The responsibility for the HRM&D strategy implementation lies with the line managers of an organisation since they have to execute the HRM&D practices on the work floor. Indeed, Schuler and Jackson (1987) argued ‘HRM should ensure that HRM practices are accepted and used by line managers and employees as part of their everyday
While there are several medium, small chain and independent fast food restaurants in the world and many more opening every day there are very few that pose any threat in the immediate future to the juggernaut that is McDonald’s.
McDonald’s was started from a Bar-B-Q in 1940, and then it more and more people like it and it has more and more kind of food, so it was founded a restaurant in1948. with the development of restaurants, nowadays it already operates in 119 countries (224 countries in the world) and it had more than 36,000 restaurants worldwide. What’s more, it was by far the most valuable fast food brand, and it was also the ninth largest
For an effective implementation of HR strategies, it is necessary to engage top level management, also commitment, cooperation and involvement of line managers and staff is important. The problem with strategic HRM is that too often there is a gap between the rhetoric of the strategy and the reality of what happens to it. Factors contributing to gaps are:
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
In this assignment I will be looking at the role played by the Personnel Management to Human Resource Management (HRM) for Sainsbury's and there historic developments. I will also be looking at how the existing HR function for Sainsbury's could be developed to work more effectively with the rest of the organisation.
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
McDonald’s has the largest fast food market share in the world. As mentioned, it serves 68 million customers every day in 119 countries, allowing it to be the second largest outlet operator with more than 34,000 outlets.
In the 1980’s, the birth of a new concept called ‘Human Resource Management’ was born. This trend comes after an intense period of Taylorisation, Fordism and now, McDonaldisation. HRM came to counter balance these trends and to consider the concept of the Man as a Man and not as a machine. For the last several decades, the interests of companies in "strategic management" have increased in a noteworthy way. This interest in strategic management has resulted in various organizational functions becoming more concerned with their role in the strategic management process. The Human Resource Management (HRM) field has sought to become integrated into the strategic management process through the development of a new discipline referred to as Strategic Resource Management (SHRM). In current literature, the difference between SHRM and HRM is often unclear because of the interconnections linking SHRM to HRM. However, the concepts are slightly different. Thus, we can ask, what is strategic human resource management? What are the main theories and how do they work? What do they take into account and how are they integrated? What are the links between SHRM and organization strategy? In order to answer to these questions, we will precisely define strategic human resource management, followed by a look at the different approaches built by theorists, and finally, we will see the limits between the models and their applications depending on the company’s environment. Discussion Strategic Human Resource Management: definition Strategic human resource management involves the military word ‘strategy’ which is defined by Child in 1972 as "a set of fundamental or critical choices about the ends and means of a business". To be simpler, a strategy is "a statement of what the organization wants to become, where it wants to go and, broadly, how it means to get there." Strategy involves three major key factors: competitive advantages (Porter, 1985; Barney, 1991), distinctive capabilities (Kay, 1999) and the strategic fit (Hofer & Schendel 1986). Strategies must be developed with a relevant purpose to sustain the organizational goals and aims. SHRM is one of the components of the organizational strategies used to sustain the business long-term. SHRM defined as: “all those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of the business. (Schuler, 1992)” or as “the pattern of planned human resource deployments and activities intended to enable the firm to achieve its goals.