Background of McDonald’s

• Describe the problem, as much as possible in terms of the observable or measurable symptoms it manifests, for example: employee unrest, frequent industrial action, high absenteeism, workplace bullying/harassment, low morale, loss of profit, sabotage etc.

• The issue/problem should then be considered and analysed in terms of concepts/models/theories drawn from any two topics studied as part of this subject. To give some examples, your group may choose to adopt different negotiation tactics, change the existing recruitment and selection method, or re-design jobs, or arrange special training program and so on. Try to choose the topic that seems to offer the most useful insights into the problem. Topics must be taken from the BU5912HRM course schedule.

• Design a change program or set of activities and procedures utilising some aspect or aspects of your analysis (actual action plan). The change program should be intended to solve or improve the situation. Please note you are not merely being asked for a list of recommendations.

Human Resource Management is a process in any organization which is designed to maximize the performance of the employee to meet the strategic objectives of the employee. Human Resource (HR) is basically dealing with the people’s management within the organization. It also focuses on the policies and systems (Pricop, Branisteanu, Serban, Ungureanu & Serban, 2013).

In this paper, Mc Donald’s is chosen by the analyst to analyze the human resource management related problems in Mc Donald. The analyst focuses on one problem within the organization. The causes of the problem are later revealed. The description of the possible solution is also discussed in this paper. How this solution can be implemented in the organization is also mentioned in the paper.

Mc Donald’s is one of the world’s largest chains of fast food restaurants. It serves 68 million customers on a daily basis in 119 countries across 35,000 restaurants. Mc Donald’s was founded in 1940 in the United States. The serving operation inside the Mc Donald’s is operated by either affiliate, franchise or by itself. They had annual revenue of $27.5 billion and profit of $5.5 billion in 2012 according to BBC report. Mc Donald’s is world’s second private employer the first is Wal-Mart with 1.9 million employees. The products serve by Mc Donald’s are Burgers, chicken, breakfast items, soft drinks, desserts etc. The company always expands its product menu in response to changing test of the customer (Mcdonaldsindia.net, 2015).

Problem

Figure 1: Official Logo of McDonald’s

(Source: Mcdonaldsindia.net, 2015)

One of the dangerous problems that Mc Donald’s is facing nowadays include high turnover problem. High turnover refers as that when the employees of an organization are not satisfied with their job because there are a lot of opportunities to find a new job very easily (Dhulla, 2012). It is a subject of worry that only a few employees give performances which are satisfactory. This may happen due to poor candidate screening, inappropriate tools or processes etc. There is a lack of career opportunities and challenges and dissatisfaction with the job scope which also cause high turnover (Ddungu, 2014).

Mc Donald’s has its own unique turnover tools and the company continues do work for identifying the problems which cause high turnover in the company. Moreover, the cause of the attrition such as turnover in one department is completely different from the cause of turnover in another department (Fripiat, Sigman, Massé & Tison, 2015). Mc Donald’s must conduct an exit interview to recognize why employees are leaving the company and what are the problems they encountered in the workplace. High turnover indicates that the employees are unsatisfied, unhealthy, and unsafe and their performance is not satisfactory to the employer. High career opportunities, salary, management’s recognition and a comfortable workplace effect the decision of the employee to stay within the company. There are several management theories in Mc Donald’s regarding the job content types which is satisfied by the employees and it also minimize the external turnover (‘Increasing Turnover’, 2014).

Focus on estimation and development of a model specifies the factors of turnover. The factors that can be observed from these models are that the behavior of the turnover is a multistage process which includes attitude, behavior and decision component of the company. The model given below did a research on the behavior of the turnover (Jehle, 2012).

The employee turnover model of Model has shaped the turnover studies for the decade of the past. In this model, the psychological process of turnover is extensively explained. This model is based on the various preceding studies such as March and Simon’s theory which is about desirability and ease of work concept. Instead of descriptive the model is heuristic.

Figure 2: Mobley’s Model of Turnover Decision Process

(Source: Altamirano et al. 2013, pp-205 )

In figure 2 the schematic representation of the turnover decision process is shown. The process of termination is described as a continuous sequence of cognitive stages. This includes the process of evaluation of the current job with the emotional state of dissatisfaction and satisfaction. Dissatisfaction of consequence is invited with the help of quitting. The next step describes the evaluation of the search expected utility and of the quitting cost (Karatepe, 2013).

Analysis of Problem

If there were is a possibility of finding an alternative and the cost is not so high, the next step of the model is a behavioral intention for searching alternatives which are followed by the search. When an alternative exists then an alternative evolution will proceed. Thereafter a comparison of the present job alternatives is done (Pricop, Branisteanu, Serban, Ungureanu & Serban, 2013). If the comparison were in favors of alternatives then stimulation of the behavioral intention for quit is followed by a final decision. Other turnover models extend Mobley’s model with the use of several variables like examined factor which affect the job satisfaction in a precise manner and commitment of the organization (M. Abu Elanain, 2014).

Mobley’s model based on empirical evidence of conceptual difference among explanatory constructs. Mobley’s model is enhanced by subsequent model. One of theory to establish theoretical alternatives is Hom’s model. There is a lack of evidence in Mobley’s theory in conceptual distinction among explanatory constructs. However, their findings show that similar possible step in the process of turnover still there is a major distinction (Nyberg, 2010).

There are some important causes of a high turnover problem in Mc Donald’s. These problems include:

Due to the high demand for the product of the Mc Donald’s all over the world the stress of the employee of the Mc Donald’s is becoming more complex. Working stress is the stress which involved the work. This type of stress is occurring in Mc Donald’s because of the employee of McDonald’s feel difficulty to cope with the responsibility and demands at work. This type of stress also occurs when there is the mismatch between the reality and job expectation (Pricop, Branisteanu, Serban, Ungureanu & Serban, 2013).

Whitchurch (2013 argued that employee retention is the big challenge in these days of modern business. As opined by Watlington et al. (2010), majority of employee think that department of Human Resource Management performs the main tasks to identify skilled and qualified employee. Therefore, it has been identified that activities as well as role of the HR is to retain employee and utilize their talent. Majority of companies faces challenges to retain their employee just because of balancing performance between the remuneration and incentives. In most of cases, HR of McDonald unable to make right combination of safety and interests in the process.  If anyone rather easily spot the working place with the retention problem then there will be an extremely high rate of turnover. But not all places with high turnover are the sites of employee retention. Employees in small businesses often must take on a considerably larger role than their counterparts in larger companies because work is distributed among a much smaller work force in new businesses. A vice president of a new company, for example, may find himself fulfilling the roles of receptionist, administrative assistant, marketing director, salesperson and public relations representative.

Mobley’s Model

2.3.1 Solution for Working Stress:

Employees play an important role to any business for running, without the proper effort of the employee the business will be unsuccessful. However, it has been seen that a large number of employers have observed that the employees remain in Mc Donald’s for 23 to 24 months only, according to the survey on Mc Donald’s. It costs an average of $15,000 per employee which includes vacancy cost, paperwork, separation costs or temporary employee. There are some other types of cost which include advertisement, training and decreasing productivity when employees depart etc. By providing a stimulating environment of workplace, motivation, empowerment, losing employee turnover is achieved (Pricop, Branisteanu, Serban, Ungureanu & Serban, 2013). By promoting a work environment, professional and personal growth is reached which encourage and harmony in all the level of so that the effect become company-wide (Uyanik, Hayashi & Ishihara, 2014).

Training and reinforcement helps in building effective relationship with the worker (Pricop et al. 2013). Before the first day, exploring the new hires to an explanation of the company in the interview and hiring process is very important so that every individual have the knowledge that wheatear this job is their best choice or not. Strategizing and networking within the company give the facility of ongoing management of performance which further helps to build relationship among the employee. The motivation of the employee towards profitable growth, the well-being of the company and focus on customer demand is also very important. Employers can inform and include their employee in the new purchase, future plans, policy change and in introducing new employees in the company (Pricop, Branisteanu, Serban, Ungureanu & Serban, 2013). Early engagement shows that the employees are valuable in the reorganization of the rewards which make feel the employee that they are also included in this process. When the company hires employee people then new talent were hired and veterans are able to meet the company’s requirement and maximizing the investment of every employee (Whitchurch, 2013). Giving time for employee to listen to them and make them feel that they are also involved in the activity of the company create loyalty of the employee towards the company, which in turn reduce the turnover of the company.

There are four ways for implementing these solutions into the Company such as:

By maintaining the cultural consistency in Mc Donald’s, the productivity and employee satisfaction of the company is reached to a standard level. Pre-hire employ assessment is a great tool for gaining the needed information about the employee’s history, the background which will be needed to analyze the company culture compatibility of an individual (Zhang et al., 2010).

Causes of the Problem

Flexibility in the company make the employee feel valued and it shows that they are needed for the company. Life-Work balance is always a major consideration for job hence by providing flexibility and accommodations to an employee is an attractive factor which attract comparative high talent for the company (Watlington et al. 2010).

Referrals are the one of the attractive factor to attract the employee towards the company. Referrals are not only used for reducing turnover but also help in empowering the employee by giving them an opportunity to have inputs in the process of hiring for their company.

Trial period provide the facility to new employees as well as the company to mutually assess their compatibility with each other without any obligation. A trial period increases the loyalty of the new employee towards the company and reduces the turnover. A trial period includes the sharing of expectation of both employee and the company (Pelphrey, Hansen & Davies, 2010).

3.0 Conclusion:

The purpose of this paper is to search a problem in a particular organization. Mc Donald’s is chosen by the analyst to search a problem regarding human resource management. From the study, the problem of high turnover is arises in the company which has been described in detail in this paper. The problem is analyzed with the help of Mobley’s Model of the turnover decision process. It is shown in the paper that how this model helps in reducing the problem in the case of high Turnover of the organization. This model is helpful in solving the problem of high turnover in the organization. After analyzing the problem, corresponding solutions are provided to solve those problems. The implementation of such solution in the company is also discussed in this paper.

4.0 Reference List:

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