People management at McDonalds

1. Introduction:

1.1 Manpower planning:

Manpower planning is one of the most vital task for any organization, therefore

requires immense thought and consideration before selecting the right alternative from

the pool of various choices available at hand. It can be best defined as hiring the right

type of candidate from the available sources for a right task at a precise time.

Manpower planning is also regarded as Human Resource Planning. It is managing the

humans in organization at all levels (Accroding to Dr. Hogan, 2007). The core

function of HRP is to keep a thorough eye on the excess or shortage of labour supply

in the firm and to adjust the right combination of labour at firm to keep the

productivity level at an optimum point.

1.2 Manpower planning at McDonalds:

Manpower planning at McDonalds is done by the professionals at Human Resource

Department. People are recruited to fulfil the posts by various means; some of the

ways to recruit people are outsourcing the demand to local recruitment agencies so

that capable candidates are selected for jobs at McDonalds through proper channel.

Apart from outsourcing hiring need, McDonalds also offer online applications for the

applicants to manage the labour supply for its outlets. McDonalds has the market

analysts who keep a constant updates of the labour market and the need of labour

different restaurants so that the work is not disturbed due to the shortage of labours

from the outlets.

Labour Trends in Supply labour to Hospitality sector:

Today, it is a modern regime so business environment has all the dynamics and

surprises for the existing firms. Hospitality sector is one of the important contributors

to the revenue of United Kingdom’s Gross Domestic Product (GDP). It entertains

people twelve months a year so it is therefore playing a significant role in generating

revenue for United Kingdom. It has its own blog and requires labour to run its

industry at main stream. Hospitality sector requires not much of skilled labour at

hotels and restaurants. It does not mean they require no skills but low skills, such as

for waiters and cleaners no special skills are demanded. It is just 50% require no

proper qualification, 64 % requires no proper training and good thing about this sector

is that in less than a month, they can learn the skills to handle task. Its labour trend

provides opportunity for upward mobility and due to high number of applicant the

shortage can be met easily. The labours are recruited from the high profile and local

recruiting agencies. Not only this, they can be hired by means of referencing to some

extent and most of the applicants who join in is through direct approach of sending

resume or applying online. One of the major trends in hospitality sector is managing

the labour recruitment through main stream local recruitment agencies, which has

number of candidates and firm appoints a required candidate who match the criteria.

Labour Supply trends for McDonalds:

McDonald’s restaurants have a large chain operating in the United Kingdom market.

It has approximately 3000 outlets within commercial areas, high streets and easily

accessible places. Majority if its labour is part time students who seeks job for limited

hours in a healthy environment. Students apply usually online. If they passed their

screening and short listing, they are called for on job training. Labours are also

supplied by the local affiliated agencies that have a pact to provide the shortage in

order to maintain the labour force equivalent to required task. Physical fitness is one

of the labour supply trends in which it is made sure that labour has no disability which

can affect the business. Undoubtedly, McDonalds follow the laws of equal

employment opportunity. It provides opportunity to all the employees on the basis of

their skills. It does not discriminate any worker of the grounds of ethnicity. Language

proficiency is always given a high preference so that customer’s satisfaction is

attained. One of the labour market trends is full timer and part timers. On the basis of

their legality to work hour permit, individuals are hired. McDonalds has this approach

of providing the local areas online for work to individual so they can have easy access

to work in time. Therefore we can say that they use a technique of hiring people on

the basis of convince. They have a technique of hiring in direct mode through online

and they also hire indirectly through locally trusted agencies. The criteria to evaluate

the selection is done on the basis of time feasibility, working hours, area zone and

past experience in hospitality services to certain extent (According to Peter

McDonalds, 2010).

Factors affecting the supply and quality of labour for McDonalds:

The quality and supply of labour for McDonalds are continuously affected by various

factors; some of these factors are very visible to notice while other’s impact comes

after some time has passed. To analyse the crucial factors affecting the supply and

quality of labour I would use analytical tool known as PESTLE. With the help of this

tool we would explore the factors and how much do these factors affect the

organization’s recruitment in depth. As we know that PESTLE stands for Political,

economic, social, technological, legal and environmental factors.

PESTLE Analysis of McDonalds:

Political Factors:

One of the most dominating external factors which affects the McDonald’s quality

and supply of labour as a company has no control over it. Recently the government of

United Kingdom announced that according to new rule, students as new immigrants

Political SocialEconomic

TechnologicalLegal Environmental

PESTLE Analysis of Labour supply McDonalds

after law take effect, they will be legally allowed to work only Saturdays and

Sundays. We know that majority of McDonald’s labour market is part timers, who are

students so this law is a political factor which can create a problem for the

organization to manage its labour force. Another political factor is that foreigner

students are allowed only limited hours to work. This affect the organization in a

negative way as most of the skilled labours are confined and restricted to certain

hours. The change in governmental policies has a huge impact on organization and

McDonalds is affected in both positive as well negative way. The positive aspect of

government’s policy to provide visa to other countries as they are on good notes with

other, provides a diversified labour. The multi cultural labour work under one roof

therefore the best of skills are transferred from one labour to another.

Economic Factors:

This is another vital external factor which has affected the quality as well supply of

labour. Due to recent inflation, the labour’s demand for wages has increased but

company has to manage is cost and expenditures as well. Due to this, labours leave

the organization and join the competitors who offer more. The quality of labour is

also affected when company in scenario to manage its cost tries to pay minimum

wages. On minimum wages some time company is compromising on the quality of

skills a labour possess. Increase in taxes has also affect the business which leads to

turnover and McDonald’s decides to take out the excessive number of labours. This

automatically increases the work burden on remaining staff members and their quality

do decline to some level.

Social Factor:

The multi cultural labour workforce is also affecting the McDonalds because most of

the labour force is from diversified culture and they are too much attach to the norms

of culture, for instance the labours from Hindu religion are reluctant to use beef or

prepare beef food, but the policy of McDonalds is to make all sort of cuisine. To

manage such labour force and achieve the hospitality target McDonald has to tackle

the social issues also in consideration. Most labours are reluctant to work on their

religious events and special days. To maintain the exact number of staff, Human

Resource Planning comes in action for McDonalds. The manpower planning has to

sort out these issues and they do through grievance handling department. McDonald

also makes sure that disability discrimination is not taking place while it’s the

selection of candidate. 14% of Employees at McDonald working 32 hours are from

ethnic background.

Technological Factors:

With the creative and constantly changing environment, the competition has increased

to a great extent. With the technological advancement, new machineries are used for

which labours need to be trained adequately. Proper and adequate training is given to

labour so that they work effectively and efficiently. McDonalds cop up with this

factor by giving on job training to its fresh employees. They work under the

supervision of outlet manager, who guides fresh employees in using the machines in a

proper way. Labours are given safety guide and tips to work on the machines so that

technological factor has a positive impact on the labours.

Legal Factors:

Legal factors are also affecting the manpower planning as law has a significant role to

play. No company exist in vacuum and it must abide to rule of law. As the law

changes regarding working hours and labour minimal wages, the manpower planning

has to take this in consideration. They cannot work over the law. As according to

prescribed law, no illegal immigrant or short visitors are allowed to work in

companies so no matter how skilled they are, but they are out of the pool of candidate.

Sometime legal factors affect the organization in negative means such as only 20

hours work permit for student so legality is only 20 hours which means although he or

she may be a very strong candidate to serve long hours but McDonalds can only allow

such labour less than 21 hours per week. No underage labour can be appointed by HR

department as it will be illegal act. Therefore we can say all legal factors do affect the

labour supply and quality of labour for McDonalds. The human rights should always

be considered such as physically fit employees should be allowed to work.

Environmental Factors:

McDonald’s labour supply is affected by the environmental factors because as there

are changes in the external environment, the labour supply has to be managed

accordingly. Changes in environment such as viral dieses etc if spreads, it affects the

labour force. Any change in weather can also create unease situation for McDonalds

to manage its labour quality.

McDonalds works in a close correspondence with the NFU to make ensure that the

expertise, skills, and leadership are properly utilized throughout the supply chain. Its

close link with other organization determines the fact that economic factors also are

vital one in determining the value chain.

Due to changes in the environmental factors, there have been changes in the

perception of employees. Their mind set has changed from their traditional thinking,

now they want more development rather than training. To cop up with this, McDonald

has grooming program so that more labour quality is improved.

Labour turnover’s causes and consequences:

Labour turnover is regarded as the movement of the employees both ways, in and out

of business. It is also referred as ‘wastage’ because of the number of employees

leaving the organization. As a matter of fact, when labour moves out of the business,

it increases the cost of company because they have to invest more on recruitment and

later on investing in the training and development of the new hired employees

(DocShare, 2011).

To measure the labour turnover for the organization, we have to find a ratio between

the number of leavers and average number of employees working in the organization.

Usually recently joined employees has more chances of leaving as compare to long

serving employees. Turnover of employees does affect the productivity of the

organization. Not only productivity but other expenditures also increases such as if

the turnover of labour is high in McDonalds, their cost of hiring or recruiting new

employees will increase, the training and development budget will also expand and

more financial resources will go in training part of fresh employee. If employees of

McDonalds decide to move out and go to competitor, it also emerges as a threat for

survival to some level. McDonalds will have to increase the package offer for their

employees. They will try to retain them by increasing their allowances or giving more

financial aid, which means a further reduction in the profit.

Ways to reduce turnover of Labours:

The turnover of labour can be reduced by bringing flexibility in polices, the proper

manpower planning by HR department the grievance handlings are done. One of the

tool management can use to reduce turnover is creating creative environment where

employees can feel they have more chances to inclined their career. The equality and

flexibility for all in legislation will also help to reduce the turnover. The respect for

one’s religious and ethnicity should also help to attain and retain employees.

McDonalds can also try to make a contract with employees on the basis of their

availability so they can retain and serve for a longer period of time. The Crew

Development Program should be given more preference for all sorts of employees.

McDonalds have over 37% of women as operational managers which shows the effort

to provide equal employment opportunities to labour force (According to Annual

report of McDonalds, 2010). McDonalds can reduce its labour turnover through job

rotation and providing an opportunity to expert labours to take initiatives and work

with participative approach. The compensation plans should be introduced to reduce

the number of turnover of employees.

References:

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