Essay about Human Resources Area Of Performance Management

Essay about Human Resources Area Of Performance Management

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This report has been commissioned to review the Human Resources area of performance management (“PM”), specifically performance appraisal (“PA”) in the context of McDonald’s Restaurants (New Zealand) Limited (“McDonald’s”). An overview of PM and its sub-elements will be given, with PA being the main focus. Finally, concerns and improvements relating to line managers’ roles and the PA process itself will be examined with reference to industry concepts and frameworks.


There are over 30,000 McDonald’s restaurants in more than 120 countries, and it is considered to be one of the most recognisable brands in the world (McDonald’s NZ, n.d.-b). The enduring motto of the Corporation and its subsidiaries is “Quality, Service, Cleanliness and Value” (QSC&V), and seven core principles guide McDonald’s operations and franchisees worldwide (McDonald’s Corporation, 2011). 80% of McDonald’s New Zealand restaurants are operated by franchisees, with a Head Office overseeing and reviewing national operations (McDonald’s NZ,n.d.-a).

Performance Management

Armstrong (2015, p 9) summarises PM as the
continuous process of improving performance by setting individual and team goals which are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing and assessing progress, and developing the knowledge, skills and abilities of people.
Marchington, Wilkinson, Donnelly & Kynighou (2016) identify five primary elements of the PM process:
1. Recruitment and selection
2. Induction and socialisation
3. Reviewing and appraising performance
4. Enhancing and reinforcing performance standards; and
5. Counselling and support.

This report will focus primarily upon the third element. McDonald’s has stro...

... middle of paper ...

.... Train line managers
Line managers conducting PAs are often not given the proper training to perform the PA effectively, leading to poor results (Kondrasuk, 2011, citing multiple authors). Training managers in this area and how to best carry out PAs is the most important step McDonald’s can do to improve this element and see positive outcomes. This may involve education about the biases that can affect validity, how to ensure a consistent process, collaborating on what feedback is both important and constructive, and the importance of ensuring the PA is individualised. Fletcher (2001, p 478), citing Kikoski (1999) notes that the interview between the line manager and employee is the “point of delivery” of PA, and much can depend upon it – but it is still the “Achilles heel of the entire process”. Therefore, sending line managers to an external training consultant to

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