What is HRM?

The report starts with the introduction to Human Resource Management (HRM) and the role it has to play within an organisation followed by brief introduction of the chosen organisation for the discussion-McDonald’s Restaurants Ltd. Also, it gives the reasons why this organisation has been chosen. The report presents the key strategic issues and corporate strategy of McDonald’s. Then it carries out an analysis of McDonald’s HR strategy and HR activities. Furthermore, it deals with outcomes of the analysis by comparing and contrasting them with different HRM thinking models.

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At last, it presents conclusions and recommendations that can improve HR activity within the organisation. During 1970’s, the US and European organisations couldn’t compete with the organisations from the Pacific region. They managed to gain competence again by improving quality and cost control but suffered again during 1990’s because of factors like currency rate collapses. This trend was defined as “Globalisation”(Giddens,1990). Also, the technological change forced them to adapt changes. The industry felt that it was necessary to have different approach to the management so as to stand in the global market.

And eventually, concept of Human Resource management emerged. Human Resource Management is an unique approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce using an integrated array of cultural, structural and personnel techniques. (Lecture Notes,2004 Topic 1) It identifies people within an organisation as capital capable of development who can improve productivity of the organisation and hence help the organisation to achieve its goals or targets.

It makes it realistic by motivating the workforce, developing commitment in them and improving communication. (Armstrong M,2003) Traditional Personnel management deals with short term planning and controlled externally. With employee relations’ perspective, it has low trust and less communication. It has lot to do with labour management. (limited to the people and not deals with strategy) On the other hand, HRM emphasizes that employees are critical to achieving sustainable competitive advantage and is central to organisational strategic performance. (Bratton and Gold,1999).

HRM plays great role with organisation’s corporate strategy. But to do this, all HR strategies must be integrated and must be in line with overall business strategies. (Lecture Notes,2004 Topic 1) Thus, HRM has lot more to do compared to Personnel management. Why McDonald’s? McDonald’s is global organisation with a huge workforce. Depending on the nature of their business, HRM is involved at a great extent in their functioning. So, it’d be a great opportunity to deal with different HR aspects by going with McDonald’s. Also, personal experience with McDonald’s is helpful in the analysis that is presented in this report.

McDonald’s Restaurant Ltd. McDonald’s began in the USA in 1955 with one restaurant. McDonald’s is now the largest and fastest growing Quick Service restaurant in the world. (Employee Handbook,2003) Now McDonald’s, with sales of over $30 billion, operates over 21,000 restaurants in more than 101 countries. Over the next few years the plan is to open 2500 to 3200 new restaurants, not only in existing markets but in new parts of the world. (John Hawkes,VP) McDonald’s opened its first restaurant in the UK in 1974 in Woolwich, London and now it operates over 1000 restaurants. (www. mcdonalds. co. uk)