Business Strategic Management on McDonald

Question: Discuss about the Business Strategic Management on McDonald. Answer: Introduction In todays business organizations the most area of concerned is the rapid turnover of the employees. The organizations are striving hard and taking potential initiatives to decrease the turnover rate such as various employee welfare programs, recognition plans, incentives etc. The organizations are also laying emphasis over their human resource management as with the effective HRM they can achieve higher organizational growth (Hansen, Smith and Hansen, 2002).The essay will focus upon the recognition plan of the worldwide renowned fast food chain, McDonalds. The companies which take use of improved recognition programs and effective employee welfare schemes generally attract employees and motivate them to retain in the organization for a longer period of time. The various development trainings support the employees in enhancing their competencies and proficiency. Retaining talent with salary packaging The effective salary package is one of the key aspects of the organizational recognitions and rewards. It has been analyzed that McDonalds is one the favored place of employees to work at. This is because the company has a number of proficient and sound programs and policies for the welfare of the employees. One of such prospect is the effective salary package. It is the incentive which facilitates the maximum number of the employees to remain associated with an organization. There are various studies which shows that McDonalds is on the leading organization in the fast food chain sector in term of providing employee welfare programs. The company offers the best benefit schemes and recognition plans to its workers and for the same the organization incorporate and implements several globally recognized programs. The recognition scheme of McDonalds comprises of a number of factors which helps in boosting the employees motivation. The organization made it obligatory that the re cognitio n plans must be aligned with the strategies and policies of business. The company has also been facilitated for its initiatives taken in the field of employee development such as it has been crowned with the Employee Benefits Award in 2012. The rewards and recognitions in McDonalds are provided on the basis of an idea i.e. pay for performance. As per this belief, the employees receive opportunities to get high pays with efficient results. In this approach, the employees are provided with their basic pay which is fixed in nature; this pay is provided for the routine work of the employees (SAMPLE, n.d.). The base pay is relatively much high in comparison with the salaries given to employees of other organizations in the same industry. McDonalds have sound recognition scheme which includes various other benefits too. The employees are eligible to gain these incentives as per the overall review of their yearly performance. The other benefits include few long term incentives which compri ses of LTI stock. But these benefits are offered only to those employees which have a long term association with the organization as well as which are the potential assets for the company (McDonald's, 2017). There are few arguments which can be presented to show that McDonalds is one of the best places to work at in terms of recognitions and employee welfare. It has been found that McDonalds have their recognition scheme which facilitates and appreciates the efforts of the efficient performers. The organization offers two primary awards to its employees. The first award is named as the Presidents Award. In this reward program, the supreme 1% of the vibrant performers in all the food chains of McDonalds across the globe is acknowledged for their great and potential performances. The second award is the Circle of Excellence; in this approach the company acknowledges the top most teams for their continuous and great contributions in the achievement of organizational aims and objectives. There are also other programs and schemes for employee benefit such as the car program (Crawford, 2015). The great performers are provided an additional benefit of a car which h the employees can take use fo r the official as well as for the personal work. The company also bears the expenses of insurance, maintenance and repair. Another supportive element for the company is the McDonalds culture as the primary emphasis of the organizational culture is upon the human resource development. It has been identified that the McDonalds culture is basically people-centric and as a result there is immense focus upon the aspects of individual learning, inclusion, organizational learning and diversity. The culture of McDonalds has a vital role in enhancing the employees welfare and development. There is a linkage between the organizational culture and the McDonalds recognition plan as the rewards and recognition scheme is planned in such a way that it can bring out the utmost benefits for the employees. The cultural aspects of McDonalds also have a direct association with the various incentives offered by the company (Shahid and Azhar, 2013). There are number of programs undertaken by the organization for promoting the overall productivity, quality and effectiveness of the employees. These can be analyzed in the form o f several recognitions and rewards provided to the organizational employees. The more there is employment benefit and welfare within an organization, the greater is the organizational learning. And the one of the primary aspect of McDonalds culture is organizational learning only. Hence through all these arguments it can clearly be stated that recognition plan of Mc Donalds aids the organizational culture of the company (Kim, 2006). There are extensive numbers of potential opportunities offered to the employees so that they can be the future leaders of the company. All these incentives and growth opportunities acts as the facilitation for the employees to have a longer term association with the company. Increased employee engagement and better productivity are the results of these benefits provided to the workers. The efficient and prospective recognition plan of McDonalds facilitate the employees to work hard as there is present several ,leadership opportunities available for them in future. These opportunities are available for the present employees of the company to become leaders and have vital role in the decision making (Billett, 2005). Hence the employees gets attracted from the recognition scheme, the various other reward programs as well as the leadership opportunities available. The companies take use of both i.e. the organizational recognition as well as the social recognition as a means of rewards. The primary aim of these employee recognition programs is to enhance the employee engagement. There are several literatures which present number of theories that have a direct link with the employee benefit plans, employee motivation and employee recognition. These theories show interconnectivity among the organizational success and the recognition programs. Expectancy theory is one of the well-known theories which supports and explains the McDonalds recognition scheme. The main emphasis of the expectancy theory is laid over the link between the rewards offered and the behaviour of the employees (Skinner, 2014). The key emphasis is on the expected recognition benefits and rewards instead of the experience gained while receiving award. Another theory is the reinforcement theory which also plays a major role in supporting the recognition scheme of McDonalds. It de monstrates that whatever reward or recognition is achieved by an employee has a direct impact over the employees future performances. The impact of the compensation management is it illustrates that the performance of an employee is majorly depended upon the monetary benefits an individual has gained. The greater the recognition is, the better are the results and on contrary, the decreased recognition results into declined employee performances. The individuals vitality is been emphasized in the reinforcement theory. In both the theories there is a common aspect i.e. motivation. It has been argument that if the recognition benefits and rewards are adequately offered to the employee then it acts as the motivation booster for them. But on the other hand there is more job specification and trainings offered to the employees in the expectancy theory. The employees are also eligible for getting the various recognition benefits (Armstrong and Taylor, 2014). Equity theory is another recognized theory which has a relation with the recognition scheme of McDonalds. The primary purpose of this theory is to demonstrate that the organizational employees always have a common perception in their minds. They try to compare the work they have performed within an organization through their effective job role with the individual recognitions and rewards the employees achieve. The employees make a comparison of their return-contribution ratio with the ratios of other employees both at internal as well as external organizational levels. The results attained from these comparative analysis helps the employees in analyzing that whether the organization remains equity in providing benefits to the employees or not (King and Grace, 2010). The greater rate of equity is required to be achieved as it helps the company in maintaining employees trust and faith in the organization as well as it also helps in enhancing employee productivity and engagement. If the employees analyze that there is inequity present in the rewards and recognition programs of the company then it acts as the negative influencer for the employees (Manzoor, 2012). It results into decreased employee engagement, reduced employee engagement and elevated attrition rate. The next theory which also has major role in this essay is agency theory. The McDonalds recognition program has a direct connection with the agency theory. The primary purpose of the agency theory is to lay emphasis over the various organizational goals, stakeholders and the way in which these goals and aims are achieved to aid the employee recognition and compensation programs. The organizations, managers as well as the employees are required to perform various different roles at diverse point of time (Samuel and Chipunza, 2009). Hence it is essential to align the diverse interests of all the groups. To form an alignment the major role is played by the employee compensation. The greater alignment result s into improved employee and organizational development. Hence it has been evaluated that there is a need to develop various potential strategies which can increase the achievement of the organizational as well as individual goals. Motivation is one of the chief aspects which are present among all the theories. To have higher motivation, it is required that there must be implement potential employment benefit programs in the organization. As a result the employees strive hard so that they can achieve the set organizational aims. McDonalds provide the best recognition plans to their workers which help in the brand recognition of the organization (Presslee, Vance and Webb, 2013). Spastic Centre, a NPO functions with a primary objective to offer effective support to the children as well as the adults experiencing cerebral palsy. It was founded in 1945 by Neil and Audrie McLeod. The story behind the foundation of this NPO is that the daughter of the founders of this organization was also going through cerebral palsy. The organization is now well recognized with a new name i.e. Cerebral Palsy Alliance i.e. CPA (GLENDiNNING, 1982). The primary objective of the NPO is to increase the involvement and participation of the individuals who are experiencing cerebral palsy. There are various services provide by the NPO such as therapies, support, programs and equipment. There are number of qualified training provided to the employees in the NPO related to the professional development (Grawitch, et al., 2009). Employees play a vital role in the effective functioning of CPA. There are various initiatives of the organizations for the development of the employees. One such plan is, make a difference peer awards. This program supports the employee welfare as it offers a chance to appreciate and recognize the efforts of the colleagues and peers in various area of concern such as service excellence as well as innovation (Bond, 2014). CPA helps the individuals in their overall development as well as offer career opportunities to its workforce. There are also provided trainings to the employees in regards with to personal development. These trainings results into organizational and career advancement. Another initiative of CPA is the award prize of around $1,500 which is offered to almost all the students of Cerebral Palsy Alliance who have completed their clinical placement (Herbert, et al., 2016). It has been evaluated that the practice of managing the HR of McDonalds is absolutely applicable in this NPO as in McDonalds the workers are offered with the great recognition schemes and plans. McDonalds effectively manage its human resource provide the employees with the utmost possible benefits and incentives (Van Puyvelde, et al., 2012). This results into upsurge employee motivation and engagement. The various NPOs are required to follow the recognition scheme of McDonalds so that there can be greater employee welfare. It is one of the general issues in the NPOs that the volunteers left the organization or join the competitive one. This happens because of the fact that they are not offered with adequate benefits and welfare programs. The employees of the NPOs are required to be highly effective and responsible and so the organization must also take care of them by providing them adequate recognitions and incentives (Evans and Kersh, 2004). There are trainings provided to the work ers but issues such as ineffective recognition schemes results into high attrition rate. This causes wastage of resources. And to attain future sustainability it is vital that these sorts of NPOs must improve their employee benefit programs. Conclusion From the overall argumentative essay it is concluded that organizations have a major need of improved recognition plans as these plans support the organizations in achieving competitive benefits and increased retention rate. McDonalds is well-known and worldwide recognized for its great recognition schemes. There is also greater employee engagement as the organizational culture of McDonalds support the recognition programs of the company (Markos and Sridevi, 2010). McDonalds recognition plan is also links with theories such as agency theory, expectancy theory, equity theory etc. The practice of managing the HR of McDonalds is absolutely applicable in this NPOs as these type of organizations demands greater employee recognitions so that there can be upsurge productivity. Hence it can be said that the NPOs a well all other companies must incorporate improved recognition schemes so that there can be increased retention rate of the employees as well as greater brand recognition. References Armstrong, M., Taylor, S. (2014).Armstrong's handbook of human resource management practice. Kogan Page Publishers. Billett, S. (2005). Recognition of learning through work. InInternational handbook of educational policy(pp. 943-962). Springer Netherlands. Bond, J. J. (2014).Differentyet equal(Doctoral dissertation, Macquarie University). Crawford, R., (2015). 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