Employee Motivation and HRM at McDonald's Restaurant in Oman - Case Study Example

Employee Motivation and HRM at McDonalds Restaurant in Oman Name: Class: Student ID: Contents Introduction 2 Practices used by McDonalds Oman to reward and motivate the employees. 3 Taylorism 4 Maslow’s hierarchy of needs 5 Hertzberg two factor theory 7 Equity theory 8 Expectancy and ERG theory 8 McGregor X and Y theory 9 Recommendations to McDonalds Oman 9 Human Resource Management (HRM) functions of McDonalds Oman (Recruitment and Training and development) 11 Recruitment 11 Training and development 13 Conclusion 15 Bibliography 16 Introduction McDonalds is one of the most successful fast food restaurants globally. The restaurants retails in over 117 countries including UAE employing over 60 million workers. At Oman, the fast food outlet has three main outlets in Muscat (Mcdonaldsarabia.com, 2016). McDonald’s is well known for their human resource management and has won awards on recruitment, training and their incentives program. The organisation is classified as a large scale employer. Most of the employees working in the restaurant are paid per hour and are commonly referred as the ‘crew members’ (Lashley and Morrison, 2000). Their main task involves serving the customers, preparing foods and drinks among other tasks which ensure that all activities run smoothly. Each of the MacDonald’s outlets is treated as an independent business where the management is responsible for accounting, inventory, customer relations and human resource management. For McDonalds, human resources are a vital asset (Tschoegl, 2007). This had led to the organisation hiring the best talent and striving to provide them the best working environment. This report assesses the practices used by McDonalds to reward and motivate their employees. This will involve use of extrinsic and intrinsic rewards and various theories of motivation and come up with justified recommendations. Secondly, the report will critically evaluate two human resource management functions of McDonalds. This will include highlighting differences between traditional practice of personnel management and the modern practices of HRM. Practices used by McDonalds Oman to reward and motivate the employees. Poston (2009) claims that to gain the highest output from the organisation, there is need for motivated and enthusiastic employees. Having positive motivation helps an organisation to grow in a smooth manner, increase productivity and become more effective. The ability to motivate employees in a successful manner has given McDonalds a competitive advantage (Tschoegl, 2007). Jobs at McDonalds are seen by many as temporary, untrained and low pay for the young people. These are jobs where skills are not necessarily needed ad have high turnover rates. At McDonalds, almost all tasks are rationalised (Gould, 2010). This is through taking a task and breaking it into smaller tasks and coming up with the most efficient way of doing them. Also, most of the employees are students with average age of 20 years. Students are employed due to their flexibility and are not interested in full time jobs. Students are also able to work during the odd hours required by McDonalds since they open for long hours (Vignali, 2001). Most of the students prefer working with McDonalds due to amount of flexibility offered by the job. They are able to choose their working hours so that they can balance with their student life. This avoids their job schedules conflicting with their education (Gould, 2010). Through working at McDonalds, students are able to gain finance which supports their needs as well as social activities. The students are able to make new friends, mix with the customers and gain new skills (Lashley and Morrison, 2000). This also contributes to their confidence in future careers. Also, some of the McDonalds branches offer their workers free meal, discounts and movie tickets. This analysis shows that most of the students working at McDonalds have an instrumental mentality to their job. This is due to fact that the students are driven by their self-interest while working (Gould, 2010). In fact, few of the students seek to have full time career at McDonalds. This makes it hard for the students working at McDonald to contribute skills and knowledge to the organisation. The workers in the low levels such as the students are trained on maintaining the policies instead of making policies (Schaaf, 1994). Taylorism The economic motivational aspects are based on Taylorism and scientific management. According to economic theories people works for their own interests. In this case, the payments are directly linked to the work outcomes. Also, based on Taylorism people dislike their work and can only work through being forced. Also, employees are seen as untrustworthy and cannot be relied on (Jones, 2000). This leads to call for supervision and direction for the employees. The jobs have to be subdivided and standardised before being allocated to the employees. Taylorism advocates for a hierarchical authority. The employees are taught on the best way in which they can perform their tasks where the more they produce the higher the pay (Gould, 2010). At McDonalds, Taylorism is implemented by the management through tasks. The management at McDonald gives their employees instructions and imposes task management. This acts to reduce laziness and also reduces individual thinking by the employees at the restaurant (Jones, 2000). McDonalds utilises pre-set registers and standard equipment which reduces the need of individual thinking. In fact, employees working at McDonalds acts just like instruments. They carry out tasks in predetermined and standard manner. The rationalisation of tasks leads to high efficiency at McDonalds. Through use of webers bureaucracy, the array of administrative tasks is implemented (Gould, 2010). There is also high level of predictability leading to high consistency on the foods and drinks offered. Maslow’s hierarchy of needs Human being hierarchy is based on five needs. This starts with the basic need to self-actualisation needs. Based on Maslow’s, these needs are psychological, security, social, esteem and self-actualisation (Zalenski and Raspa, 2006). Based on Maslow theory of needs, they can be separated into higher and lower level needs. While the psychological needs are the lower level needs, self-actualisation, self-esteem and social are the higher level needs. Lower level needs can be easily satisfied using wages while higher level needs can only be satisfied internally to the employee (Poston, 2009). McDonalds is led by transformational leaders who are able to inspire and motivate employees. This is through rallying the employees towards a common goal. Zalenski and Raspa (2006) points out that people are motivated to attain given needs. When the needs are attained, people move to fulfil the next one. Once a person is able to satisfy the basic level needs, they progress to meet the higher level needs. People continue moving to self-actualisation. McDonalds satisfies the lower level needs through wages and benefits. For the employees such as students, they are paid adequate cash to cater for their daily needs. With this, they are able to cater for their daily needs as well as social needs (Poston, 2009). Employees are also given adequate time to rest. Safety needs are addressed through being provided a safe working environment. This includes ensuring that the working area is safe with all warning required on hazards. McDonald’s management always trains their employees on their workplace safety (Poston, 2009). This includes keeping the workplace tidy and ensuring that there are no wet surfaces that can lead to falls. Social spirit is created through teamwork. McDonalds have very successful teams who work towards a common goal (Vignali, 2001). This is especially through their rotary training where employees are trained as a team and taught on all jobs. The employees are made to have a sense of belonging by McDonalds. This is reinforced by the organising parties and events which are done in a frequent manner. The employees are given a flexible working schedule which makes it possible to have family time as well as time to be with friends. For the employees at the McDonalds, esteem needs are met through rewarding of their achievements. There are awards for the best performing employees as well as those who are able to meet the organisation goals. When employees performs well, they are praised and in most cases given a reward. The promotions at McDonalds are also based on achievements rather than seniority. Despite this, there is low emphasis on self-actualisation needs for the low level staff (Poston, 2009). This is due to fact that low level jobs at McDonalds are viewed as part time and there is low innovation and creativity. The employees are not able to meet their maximum extent since there are few meaningful assignments. Hertzberg two factor theory According to Herzberg, the productivity of an employee does not only depend on the job satisfaction but also on the work motivation. This is due to employees have their job expectation based on what they want. The theory points out that job satisfaction comes in two distinct set of factors. These are the hygiene factors and true motivators. Hygiene factors refer to the extrinsic factors which are found in the job environment (Bassett-Jones and Lloyd, 2005). At McDonalds, these are the job context factors which remove the level of discomfort. They help in supporting the employees’ mental health through are not motivators in themselves. Although having the hygienic factors does not always warrant satisfaction, their absence leads to dissatisfaction hence low levels of motivation. At McDonalds, this is represented by their job security, working conditions and job allowances. The organisation also creates a great working environment where it is easy to create interpersonal relationships (Bassett-Jones and Lloyd, 2005). If McDonalds lacked these, there would be high levels of job dissatisfaction among the workers. True motivators are directly connected to the job and reward system. These are rewards which are directly connected to the job being done. Bassett-Jones and Lloyd (2005) points out that through use of true motivators, it is possible to encourage superior performance among the employees. This includes the use of recognition for the work well done. McDonalds ensures that employees are encouraged to achieve which has led to an increase in productivity. McDonalds have for long time used the motivators like future opportunities and enhanced job satisfaction. Based on survey on the best place to work, McDonalds have been nominated severally. The firm does the things which are required for employees’ satisfaction. Most of the employees at McDonalds are young and the organisation has been working hard to make them satisfied in their work environment (McDonalds, 2016). Equity theory Carrell and Dittrich (1978) claims that Equity theory is based on the employees’ comparison between their inputs to the output they receive in their workplace. When the ratio is unequal, there is dissatisfaction and employees are motivated to work towards equity. When the ratio is equal, there is job satisfaction and the current ratio is maintained. They can also raise their inputs with expectations of higher outcomes. McDonalds have been able to create an environment where the inputs and outputs ratio is equal. The inputs in the case of McDonalds include training, work experience and level of education. This is everything that the employees feel that they contribute to the organisation. The outputs that the employees gain from McDonalds are benefits, status, better pay and being given a flexible working environment where there is work life balance (McDonalds, 2016). Expectancy and ERG theory Based on the expectancy theory, individuals are defined as rational beings. Individuals have goals and are motivated if they are able to meet these expectations (Wigfield and Eccles, 2000). Thus, management at McDonalds ensures that employees are rewarded for their efforts both financially and non-financially. ERG theory sees needs as a hierarchy based on the existence, relatedness and growth (Arnolds and Boshoff, 2002). McDonald’s management recognises that the employees have varying and multiple needs which are supposed to be satisfied simultaneously. This has led to McDonalds providing their employees with growth needs to ensure that they do not regress to relatedness needs. The organisation has created an environment where varying needs can be pursued in a simultaneous manner. The existence need which includes salary, working conditions and meals is well satisfied. Relatedness at McDonalds is based on provision of common goals and friendships among the employees. McDonalds have one of the most successful social systems in the workplace. There is also recognition awarded to the employees in their social network. Lastly, there is growth which is based on professional growth. The main problem is the fact that only few of the young employees looks for career growth at McDonalds. This is due to their work being viewed as temporary job. This may have led to regression to the lower need such as relatedness (Arnolds and Boshoff, 2002). McGregor X and Y theory According to McGregor theory X and Y, most of the managers tend to use theory X. but modern management utilises more of theory Y to allow their employees grow and increase productivity (Bassett-Jones and Lloyd, 2005). For McDonalds, the senior employees are mostly managed through theory Y. this is through being given a chance to grow and make their own decisions. Theory X is mostly used on the new employees and those in the lower positions. This is through being given high level of supervision on their tasks and a bureaucratic management (Carson, 2005). McDonalds is a hierarchical organisation and the decisions are made by the management. Recommendations to McDonalds Oman Motivating workers is the work of the management to support the workers and impel them to work (Wrzesniewski and Dutton, 2001). McDonalds should be aware that the staffs are concerned with more than just the pay. They want to attain both personal and professional success. The staff should be engaged by the management and given a chance to participate in decision making (Bain et al., 2002). McDonalds must work to identify staff aims and motivations. This will make it possible to improve the employees’ motivation. With most of the employees being students, there is need for McDonalds to improve the wages. Employees are paid wages which may not lead to self-actualisation (Poston, 2009). These are wages which only cater for their expenses up to social needs. It is clear that management at McDonalds applies Taylorism scientific principles in their job. This leads to the employees working hard and with close supervision. Despite the aim that the approach will lead to maximum output, it has led to instrumental mentality (Bain et al., 2002). This has led to most of the employees looking the job at McDonalds as a short term job with no future prospects. This approach should be changed by reducing scientific management to collaboration and ensure that employees start valuing job at McDonalds and looking for future prospects in the organisation. Another factor that affects motivation at McDonalds is less reward. It is clear that McDonalds believes that their employees are motivated by the Herzberg two factor theories (Bassett-Jones and Lloyd, 2005). The rewards are based on performance and employees are promised of future development opportunities. This may not be working due to fact that most of the employees still view the organisation as a temporary job provider. The organisation should work to make their employees to have motivation from job instead of hygiene factors only. It is also important for McDonalds to utilise Theory Y more than X in employees’ management. The organisation should also strive to attract employees who are theory Y than X (Carson, 2005). Lastly, providing employees with feedback is very important in an organisation. The employees should be given feedback on their performance to motivate them. McDonald’s management should invest in providing feedback based on regular periods. This will help the employees to determine where they are not performing well and improve. With the organisation being highly bureaucratic, it would be important if McDonalds reduced their control on employees. This would open room for creativity and innovation hence creating a good environment for motivation. Relationship between the management and employees must also be improved (Wrzesniewski and Dutton, 2001). Task 1: 2328 words Human Resource Management (HRM) functions of McDonalds Oman (Recruitment and Training and development) Aswathappa (2005) points out that Human Resource Management (HRM) involves recruitment, training and development, safety, compensation, employees’ relations and compliance. With a large employee’s base, human resource management is a vital aspect of McDonalds. McDonalds have won several awards associated with human resource management. This includes awards on recruitment, training and offering benefits. Despite the jobs being seen as derogatory, there have been a lot of efforts to improve them through human resource management. Two areas of HRM which have been a success at McDonalds are recruitment and training and development (Kaufman, 2002). Recruitment McDonalds uses recruitment practices which are aimed at attracting and identifying the best talent. The organisation is a large scale employee with employees in part-time jobs, hourly jobs, management and others employed in the franchises. Based on research, a typical McDonald’s restaurant outlet can have a minimum of 60 employees. The employees are mostly crew members who are paid hourly. McDonald’s recruitment aims at getting workers who have the right skills and attitudes. First, the positions are advertised with the right descriptions. The jobs have their duties and responsibilities well outlined with skills and responsibilities outlined. Based on McDonald’s recruitment policy, the organisation is as an equal employment provider (Mcdonalds, 2016). Individual stores are allowed to post for their job opening and also look at the database to fulfil their recruitment needs. In addition, applicants are allowed to fill the recruitment forms electronically even when there is no job posting. This creates a pool of candidates when the need arises. Through use of psychometrics, it has been possible to determine the fit candidate for the job and ability to work within McDonald’s culture (Mcdonalds, 2016). This is through use of the modern HRM which has a different approach compared to the old personnel management. Unlike PM, the recruits are given motivation and developed based on McDonald’s culture (Aswathappa, 2005). The new recruits are coached to value the organisation values and mission. To ensure that the interview is able to get the best people, the organisation uses an interview guide. This helps in predicting the past behaviour of those applying for the job which can impact their performance. The interview ensures that only the candidate with the best ratings is offered the job. After a successful interview, the new employees are taken through a welcome meeting. This is where they are given the overview of the organisation based on the job roles, administration, policies and safety training among other work etiquette (McDonalds, 2016). At this point, the new employees are able to meet their trainer and enter into the three months’ probation period. This shows a modern HRM where there is track of innovation and technological development which is unlike the traditional PM (Bratton and Gold, 2012). According to the traditional PM, the routine does not change and there is less emphasis on technology and engagement of external stakeholders. Training and development Bratton and Gold (2012) points out that under the traditional PM, there is low focus on training and development. This is unlike the modern HRM utilised by McDonalds where training and development is used to enhance productivity and effectiveness. This has led to an organisation which has no glass ceiling and employees are able to fully exploit their talent. Well trained crew at McDonalds have helped the organisation attain its full potential (McDonalds, 2016). After the welcome meeting, the company sets the standards and expectations to the new employees. This creates the beginning of training and development. The crew members are introduced to their trainers and the process begins. Among the skills learnt are the service delivery, cleanliness, quality delivery and others based on their job (Eaglen, Lashley and Thomas, 2000). After the initial training, the employs joins the firm where training is an ongoing process (McDonalds, 2016). The ratings done during the training are then used for appraisal grading. While PM views employees training as a cost which should be eliminated, HRM sees employees as valuable resources which should be developed. Training is low under the PM since the organisation fears that workers will be taken by the competitors. This is unlike McDonalds which have employed the use of HRM to enable continuous development. Annually, McDonalds spends about $40 million on training (McDonalds, 2016). This is costs incurred in training the crew members, coming up with the development programs and training the managers. The organisation also budgets about $1 million for the corporate training. The investment in employee training and development is a proof of the firm commitment in ensuring that they have the best employees for maximum output (McDonalds, 2010). The training offered by McDonalds makes the employees to be valuable and enhance their capabilities in the organisation. The employees become well rounded such that they can succeed in any other organisation based on this training. This has led to the training program winning various awards (Eaglen, Lashley and Thomas, 2000). McDonalds have an established process which makes it possible to maintain part time employee trained using management entrance exam. There is a curriculum which has been developed by the management to ensure that new recruits can progress in their positions (McDonalds, 2010). The curriculum is aimed at those aged 21 years and above both graduates and those with the management experience. This is a structured programme that makes it possible to join the management (Mcdonalds, 2016). Successful completion of the management entrance exam makes it possible to training courses which are given by the regional office. This opens up possibility for the employees to join management positions. The recruits are able to move from being trained managers to be the restaurant managers (Mcdonalds, 2016). Among the programmes taught are shift management, systems management, restaurant leadership and business leadership. This is an approach that is in-line with the modern HRM as compared to traditional PM (Aswathappa, 2005). The approach has made it possible to optimise the human resources with an aim of fulfilling the organisation goals. Employees are given specific guidelines and trained on what is allowed and what is not allowed. This is in-line with the modern HRM. In the traditional HRM, employees are expected to know what is right and wrong with less emphasis on training (Bratton and Gold, 2012). The organisation trains their employees with an aim of creating a competitive advantage and enhancing their output (Kaufman, 2002). This approach to employees’ development has made McDonalds to be a leader in the industry with their employees well trained. Better management of people have led to better performance for the organisation. Training and development has also helped the organisation in enhancing their staff retention. This is due to fact that trained employees especially in the management roles are promoted (Mcdonalds, 2016). They are also made to value McDonald’s work ethics and goals. With the use of modern HRM, McDonalds continues being a market leader in human resources management. To sum up, McDonalds believes that their success is based on people. This is why the firm trains their employees to gain the best skills. The organisation offers their employees training based on their positions and promotion when it arises (Eaglen, Lashley and Thomas, 2000). The training quality through online platforms is also accredited. The online training program is flexible which allows the employees to study at any time and place (Mcdonalds, 2016). The trainees are then evaluated based on an accredited exam (Schaaf, 1994). Task 2 :( 1245 words) Conclusion In conclusion, McDonalds is one of the most successful organisations globally and has presence in Middle East. This is an organisation which has gained a reputation as a great place to work due to motivated and engaged employees. Through motivation, McDonalds is able to enable job satisfaction among the employees through motivation. The organisations have been improving on their pay and incentives to enhance motivation. Despite the fact that the organisation have been working to improve motivation, most of the employees have instrumental mentality to their jobs. This is where the employees do not see the organisation as their future employer. The organisation has to work hard to improve motivation and make McDonalds a reputable long term employer. The the organisation has excelled HRM recruitment and training and development. This is through their comprehensive recruitment and employee development programs. McDonalds utilises modern HRM instead of traditional HRM to ensure that they treat employees as the most valuable resources. Bibliography Arnolds, C.A. and Boshoff, C. 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