As to the relationships between organisation strategy and human resource strategy, there are five potential relationships: “separation, fit, dialogue, holistic, HR driven” (Derek et al.2002) Based on the status of McDonald’s, it is more likely the fit model namely ” employees are seen as key in the implementation of the declared organizational strategy, and human resource strategy is designed to fit with this.” (Derek et al.2002)
Moreover, fit or contingency model, which was stated by Fombrun et al. in 1984, is designed to ensure a close fit between the human resource strategy and business strategy. With regard to the fit or contingency model, “it based on two critical forms of fit. The first is external fit-that HR strategy fits with the demands of business strategy; the second is internal fit-that all policies and activities fit together so that they make a coherent whole, are mutually reinforcing and one applied consistently.” (Derek et al.2002) Four key functions of human resource management can be involved within the model of Fombrun et al: selection, performance appraisal, continuous development, and reward. Moreover, these four key functions are interacted with each other which can be “mutually geared to produce the required type of employee performance” (Derek et al.2002).
As was mentioned, on one hand, McDonald’s is a world’s leading food service organization, and its human resource management practices are integrative and complex. It is difficult to assess of the degree to which each its policy and activity of its human resource management practice enables the business’s strategy to be achieved. On the other hand, customer satisfaction is the most important strategy of McDonald’s present business strategies. Consequently, only two aspects: training, and reward are analysed the interactive with customer satisfaction through using the fit or contingency model in this section. Training and reward can be the means of motivation of the employees. In order to achieve the goal of organisation, motivation to the employees is essential.
Training: first of all, on-the-job training is provided with the restaurant crewmembers to coaching in skills and procedures essential. The basic skills and procedures essential coached help to keep and improve the quality of products and service of McDonald’s. As the fast food chain, the products and service of McDonald’s are and should be trump to attract customers. Secondly, the classroom courses training are provided for the outstanding restaurant employees for advancement.
Assuredly, this training is attractive to the employees. Career path was designed from new employee to senior consultant. It is sure that this classroom courses are important in the career path of an employee. Moreover, the outstanding restaurant employee was mentioned above. What criterion is an outstanding employee? The criterion can be various and alterable. For example, it might be the work efficiency in the past; it can be the quality of service now. It indicates the flexibility of Human resource strategy.
Thirdly, operations and business management training is provided to the restaurant managers, franchisees, mid-level managers, and corporate executives. As the corporation, where 1.5 million people work, mid-level managers are quite important. This operations and business management training are benefit for the understanding, conveying, and implementing of the business strategy of McDonald’s. Finally, a training system brought to the crewmembers and managers can be vehicle of the business strategy or use to learning satisfying customer experiences.
The reward and recognition program: Both base pay and Incentive pay are provided through an annual review of both external market data and internal peer data and depends on the performance meets and exceeds goals, respectively. Therefore, they can fit with the business strategy through alterable criterion. The recognition programs and company car program are designed to reward and recognize strong performers. They represent the customer satisfaction strategy per se.
Overall, some policies and activities, such as on-the-job training, the recognition programs, and company car program, completely fit with customer satisfaction strategy. Some policies and activities, such as activities operations and business, a training system management training were not designed wholly to fit with customer satisfaction strategy. However, they can be used as vehicle of conveying and implementing this business strategy. Finally, such as the classroom courses training, it can fit with this business strategy through the various and alterable criterion.
Ogbonna and Whipp mentioned that “Businesses have to change radically in response to the environment, any degree of human resource fit achieved will be disturbed shortly.”(Wang Yong 2003 Handout Week 4) In this report, McDonald’s changed its corporate strategy from adding new restaurants to building sales at existing restaurants. Simultaneity, customer satisfaction would be the most important business strategy highlighted. However, the change of its human resource management practice is laggard. Therefore, quickening this change is more likely important and urgent. However, change is difficult. Mullins mentioned that ” as to organisational resistance, there are five factors resistance to change: organisation culture, maintaining stability, investment in resources, past contracts or agreements, and threats to power or influence.”(Wang Yong 2003 Handout Week 7)
John Storey argued that “training and development should be regarded as central to anything that can sensibly be termed HRM”(John Storey 2001). The operations and business management training, which provided to the restaurant managers, franchisees, mid-level managers, and corporate executives, it more likely tends to act as a ‘catch-all’ banner. All these kinds of managers enter into this training without selection. It is possible to affect the function of its motivation.
1. The present corporate strategy and business strategy of the McDonald’s company are more likely defensive strategy and cost leadership strategy, respectively. Moreover, it is foreseen that these strategies will be implemented for a long term in the McDonald’s corporation. . In the training and reward and recognition program, some policies and activities completely fit with customer satisfaction strategy. Some training were not designed wholly to fit with customer satisfaction strategy. However, they can be used as vehicle of conveying and implementing this business strategy. 3. It is difficult that human resource fit with the business strategy, because of the changeability of environment. Moreover, the human resource of change is difficult and slow.
Books William P.ANTHONY, PAMELA L. PERREWE, K. MICHELE KACMAR(1996)”STRATEGIC HUMAN RESOURCE MANAGEMENT” Florida: Harcourt Brace College Publishers John Storey (2001) “New Perspectives on Human Resource Management” London: Thomson Learning. Derek Torrington, Laura Hall, Stephen Taylor (2003) “Human Resource Management” fifth edition Essex: Edinburgh Gate Wang Yong (2003) “Human Resource Management Handout” week 3 https://www.mcdonalds.de