HRM REPORT SAMPLE 2023
1. Introduction
1.1 Key Factors about Case Study
McDonald’s of UK has 120000 employees, 1300 restaurants across the UK among which 1100 outlets have been franchised by them, and 36000 restaurants in more than 100 countries and territories, and the employee turnover rate is 44% (Mcdonalds.com, 2021).
1.2 Reason for investigating
In the past few years, the company has been rocked with allegations of sexual harassment where the company execs have been accused by its female employees of being sexually harassed and this is the main reason for this investigation (Mcllvaine, 2019).
1.3 Structure of the report
The report has been divided into four sections such as ‘Introduction’, “HR roles”, and “HR methods”, and “conclusion and recommendations”.
2. Roles of HR
2.1 Evaluation of HR roles using a theoretical model
The Ulrich model has been adopted to gain a deeper understanding of the topic. The model has been developed to organize the functions of human resources. According to the model, large businesses should be compartmentalized into four different sections, namely strategic partner, change agent, administrative expert, and employee chain. The model has been developed to organize the roles and functions of an effective human resource manager in a business organization. According to the view of Mazurchenko&Maršíková (2019, pp.75), this model depicts that the functions of an effective HR manager need to be compartmentalized into these four sections. It is beneficial for a business organization to operate a large-sized organizational structure effectively.
Figure 1: Ulrich Model
(Source: Nadiv, Raz& Kuna. 2017, pp 2-6)
Different roles of an HR manager are “strategic partner”, “administrative expert”, “change agent”, and “employee champion”. The role of an HR manager as a strategic partner suggests that the workforce can be developed through strategic partnership. As stated by Dhanpat et al. (2020, pp.10), looking into customer requirements is the main function of an HR manager that helps them to identify effective aspects to be considered while producing products for customers. Administrative expert HR managers are highly focused on their roles and they are responsible to check the day-to-day business delivery. Change agent helps in improving organizational culture through the development of both personal and professional skills of the employees. Besides, employee champions aid in providing employees with the feeling to belong to the organization. Health and safety of the employees along with their job satisfaction levels are supposed to be ensured by the HR managers through this function of the effective HR manager.
2.2 Critical analysis for choosing this model
The use of the Ulrich model will help in providing a clear understanding of the roles along with responsibilities of HRM and how they are accountable for the organization (Nadiv, Raz& Kuna. 2017, pp 2-6). Hence, analyzing this model will help in getting a better idea as to what went wrong with HR at McDonald’s. This model has been beneficial to understanding the various roles and functions of an HR manager in any organization. Based on the four key roles and functions of the human resource manager, it is easier for the HR manager of McDonald’s to understand if they are doing their jobs properly. For example, the issue of sexual harassment among female employees in this organization has become a major issue for the organizational reputation and HR functions.
This theory is going to be beneficial for McDonald’s to evaluate its organizational performance such as understanding consumer requirements from their food products. Additionally, it is the responsibility of this organization to look after the health and safety of its employees that have not been properly obtained by its HR management (Priya, 2021, pp.4373). Otherwise, this issue of sexual harassment to its female employees would have not happened. Besides that, personal and professional skills of the employees have not been developed through proper training and education that has reflected through the major complaints from customers regarding the attitude and behaviour of its employees. Moreover, this theoretical model has been beneficial in identifying the failings in the HR functions of McDonald’s.
2.3 Evaluation of the framework
The roles of HRM at McDonald’s will be analysed using the Ulrich model to find the strategic importance of HR when issues of harassment occur within the organization. The case of McDonald’s will be assessed using the four segments of the model and reasons will be established regarding the reason for its failure. This model has been considered to be beneficial in evaluating the roles and responsibilities of an effective HR manager in McDonald’s (Nadiv, Raz& Kuna. 2017, pp 2-6). Understanding these HR functions could have been beneficial to enhance organizational culture in McDonald’s. Development of organizational culture through the application of this HR model will be beneficial for this organization to reduce the sexual harassment-related issues in its business place.
3. Methods of HR
3.1 Evaluation of HR Methods using a theoretical model
The 8-box model of HRM has been adopted in this case to help provide a better understanding of the HRM methods at McDonald’s. The model talks about both the internal and external factors that affect the effectiveness of HR and cause its success or failure. Different HR strategies are used in this theoretical model that helps to understand the reason behind shortage of employability skills in the organizations (Ringle et al. 2020, pp.1618). The issues in McDonald’s suggest that proper HR management roles and responsibilities have not been adhered to. As a result, female employees in this organization have faced issues like sexual harassment that have not only impacted organizational reputation but its morals.
Figure 2: 8 Box model of HRM
(Source: Bilal et al. 2020, 217-229)
Intended HR practices have not been followed in this organization which as a result impacted the organizational revenue and reputation. Research and development on customer satisfaction level are one of the major responsibilities of its HR manager that has not been followed by them (Stahl et al. 2020, pp.100708). It caused a major decline in the employee turnover rate of this organization. Besides that, problems with attitude and behaviour have also arisen due to the lack of training and education provided to the employees of McDonald’s.
This model suggests that evaluation of the external general market and external population market such as macro-economic & labour market, market competition, products, and technology are the responsibilities of HR managers. Based on the organizational cultural background and history, the HR manager develops strategies that are usually practiced in the organization (Bilal et al. 2020, 217-229). Besides that, understanding of the business legislation and other important factors of the competitive business market are supposed to be considered by the HR managers to improve its organizational culture.
3.2 Critical analysis for choosing this model
The use of the 8-box model will help in providing a better understanding as to the reason the HRM of McDonald’s was influenced and how it impacted their decision-making process when it came to the allegations against the company (Bilal et al. 2020, 217-229). The present situation suggests that the HR managers of McDonald’s have not conducted their duties properly. In this aspect, sexual harassment has been obtained by the other management staff in the organization. However, it is necessary for the HR management in McDonald’s to look after the health and safety of its employees, reputation and belonging, customer requirements, and other factors for the development of this organizational performance. As a result, the job satisfaction level of the employees in this organization will be increased and the annual employee turnover of this organization will be balanced. Moreover, employees will gain motivation to work with full dedication and maintain proper codes and conduct at the workplace so that customer satisfaction levels can be increased.
3.3 Evaluation of the framework
The framework consists of 8 distinct steps each outlining a specific aspect that influences the decisions made by the HRM concerning the company. Each of the steps is interconnected and consists of both internal and external factors important to the organization. As stated by Bilal et al. (2020, pp. 217-229), this model of human resource management is essential in enhancing their employability skills. This model describes various HR strategies such as “intended HR practices, actual HR practices, perceived HR practices, HR outcomes”, and others. Critical HR goals and objectives are achieved through cost-effectiveness, legitimacy, flexibility, and others and that can be turned into ultimate business goals. This framework is useful in enhancing the employability skills of HR managers and increasing the competitive advantages of this organization in this current competitive business era.
4. Conclusion
It can be concluded that HRM plays a major role in ensuring that allegations of harassment that are sexual or labour-related do not arise. Thus, the HRM is responsible for managing these issues and maintaining the reputation of the company. Various models on HR management have been critically analysed and evaluated in this study that has been helpful for this organization to enhance its organizational culture. Based on the conclusion, it can be recommended to McDonald’s that this organization can apply useful HRM frameworks so that the ethical and safety issues faced by the female employees can be reduced. On the other hand, implementation of proper HR management tools can also be beneficial to monitor the training and education of its employees.
References
Bilal, H., Farooq, N., Waseem, M., & Ali, S. (2020). Training, Performance Appraisal and Compensation Moderating Impact on the Relationship of Employee Engagement and Organizational Citizenship Behavior. Journal of Business & Tourism, 6(1), 217-229. https://jbt.org.pk/index.php/jbt/article/download/190/169
Dhanpat, N., Buthelezi, Z.P., Joe, M.R., Maphela, T.V. &Shongwe, N., (2020). Industry 4.0: The role of human resource professionals. SA Journal of Human Resource Management, 18(1), pp.1-11.https://sajhrm.co.za/index.php/sajhrm/article/download/1302/2053
Mazurchenko, A., &Maršíková, K. (2019). Digitally-powered human resource management: skills and roles in the digital era. ActaInformaticaPragensia, 8(2), 72-87. http://aip.vse.cz/pdfs/aip/2019/02/01.pdf
Mcdonalds.com, (2021), About, Retrieved from: https://www.mcdonalds.com/gb/en-gb/help/faq/18349-how-many-people-does-mcdonalds-employ-across-the-uk.html [Retrieved on: 5th December, 2021]
Mcllvaine, AR., (2019), Here’s why McDonald’s turmoil may also be an HR opportunity, Retrieved on 13th November 2021 from https://hrexecutive.com/heres-why-mcdonalds-turmoil-may-also-be-an-opportunity/
Nadiv, R., Raz, A., & Kuna, S. (2017). What a difference a role makes: Occupational and organizational characteristics related to the HR strategic role among human resource managers. Employee Relations. Pp 2-6. https://www.researchgate.net/profile/Shani-Kuna/publication/319989510_What_a_difference_a_role_makes_Occupational_and_organizational_characteristics_related_to_the_HR_strategic_role_among_human_resource_managers/links/5ba285d845851574f7d688f1/What-a-difference-a-role-makes-Occupational-and-organizational-characteristics-related-to-the-HR-strategic-role-among-human-resource-managers.pdf
Priya, R., (2021). A Review of Digital Technologies in HRM. Psychology and Education Journal, 58(4), pp.4373-4382.http://psychologyandeducation.net/pae/index.php/pae/article/download/5670/4863
Ringle, C.M., Sarstedt, M., Mitchell, R. &Gudergan, S.P., (2020). Partial least squares structural equation modeling in HRM research. The International Journal of Human Resource Management, 31(12), pp.1617-1643.https://www.researchgate.net/profile/Fawad-Hussain-3/post/When-we-use-simple-PLS-bootstrapping-and-consistent-PLS-bootstrapping/attachment/5f291ddbce377e00016b74ce/AS%3A920728291524608%401596530139318/download/2018Ringleetal_IJHRM.pdf
Stahl, G.K., Brewster, C.J., Collings, D.G. &Hajro, A., 2020. Enhancing the role of human resource management in corporate sustainability and social responsibility: A multi-stakeholder, multidimensional approach to HRM. Human Resource Management Review, 30(3), p.100708.https://www.researchgate.net/profile/Guenter-Stahl/publication/335583397_Enhancing_the_role_of_human_resource_management_in_corporate_sustainability_and_social_responsibility_A_multi-stakeholder_multidimensional_approach_to_HRM/links/5d724e34a6fdcc9961b21aeb/Enhancing-the-role-of-human-resource-management-in-corporate-sustainability-and-social-responsibility-A-multi-stakeholder-multidimensional-approach-to-HRM.pdf
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