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Strategic Human Resource Management: McDonalds - Case Study Example

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The link between business strategy and human resource strategy is analyzed by looking into a representative service organization which is McDonald's Corporation. McDonald's business strategy employs serving the untapped market of informal out of home eating in a way that is evasive of head to head competition…
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Strategic Human Resource Management: McDonalds
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Download file to see previous pages Fast and quality service that comes with quality foods is the primary element in the operations of the organization. As such, operations mainly depend on the functions of the human resource pool which undertakes the strategy. Investments in the company allot a considerable proportion for the employees to motivate them. Studies show that labor intensive organizations need to address the need of the human resource to succeed since success depends on the most heavily used factor.
McDonald's investments throughout the years have been geared towards employee development. This includes training, incentives for good performance and recognition for quality. With the long years of investments in human resource, the organization has been reaping success in various locations worldwide where it operates. The human resource has been complementing the physical capital employed by the company. When traced what implements the business strategies that define the company through relationships on investments, motivation and productivity, factors point out to the link in human resource of the organization.
Human resources are probably the best assets that an organization could utilize to undertake its business strategies and obtain market advantage particularly on service sectors. Due to the labor-intensive nature of service sectors, it is technically the manpower that performs the necessary functions developed to target strategic management needs. The aim of this discussion is to provide a paradigm in which to analyze the contribution of human resources in bringing success to business operations. With a review of an organizational strategy, this discussion will present a link between business strategy and human resources strategy. In addition, this discussion will identify issues and influences of business strategy on the human resource strategic process. To adequately illustrate the point of this discussion, descriptions on business strategy will be drawn from a chosen service sector firm.
The methodology employed to demonstrate the primary elements of the discussion is practical analysis of technical processes embedded on the business operations of the representative service sector company. It is essential to explain certain studies that have been done to connect business strategy with human resource techniques utilized so as to provide a clear picture of the analysis. Researches done on similar labor intensive industries will be used for the over all framework on demonstrating the primary elements of this discussion. As an applied illustration of the link of business strategy to human resource strategy, this discussion will provide certain actual strategies used by the chosen organization.
This discussion focuses on the relationship of business strategy with human resource strategy in a service sector setting. Since the center of the discussion is mainly on the nature of a labor intensive sector organization, several points might not be applied to other companies with different organizational orientation. Further, the company used in this discussion as the representative organization employs a strategy which is fairly distinct to other organizations and therefore could not be a conclusive effort to relate with other companies. The representative organization chosen for the purpose of this discussion is the global firm McDonald's Corporation.
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