Essay on Retaining Talent McDonalds

Question: WritetheEssay on Retaining Talentfor McDonalds. Answer: Introduction It is observed that hiring employees is just a start to creating a strong workforce. The next initiative is keep the employees and provide them the required facilities for the wellbeing of the organization. It is identified that high employee turnover costs business owner in time as well as productivity. Therefore, the organization should take the initiative to retain their employees. It is evident that by acquiring the skilled or talented employees, the organization could positively influence the productivity of the firms. The current essay revolves around the talent retention strategies applied in the McDonalds. The purpose of the essay is to understand how McDonalds use its retention strategies to hold the skilled employees and gain the success. The organization is usually observed to be providing a competitive benefits package that fits employees needs and demands. The existing studies have mentioned that employee retention can be done with the implementation of effective HRM str ategies. Moreover, the existing strategies have mainly focused on the HRM studies when it comes to retaining the existing skilled employees. More specifically, McDonalds is Australias one of the largest fast food chain with workforce around 75000 people (McDonald's Australia, 2017). The firm has gained the award of best companies to work for in Australia. The organization is famous of developing a healthy and strong culture of developing its future leaders. In addition to this, the firm has also gained the popularity in contributing to the employment development. The firm has observed the rush of developing the strategies of retaining the skilled employees. One developed concept is in order to gain or increase the productivity, the firm has to focus on the internal development such as retention of key employees. Thus, to understand the retention strategies and its relevancy, the essay provides an intensive analysis based on the case study featuring McDonalds Australia. Discussion It is studied in the case study, McDonalds has strong and healthy organizational culture that helps the employees to perform better and provide positive output to the organization. The firm has developed a strong culture in improving the skills of future leaders. More specifically, one of the managing directors of the last 30 years started the career at 15 years old. In addition, almost 80% of the restaurant managers started the operation with McDonalds as the significant part of the crew in the restaurant (Barrick, Mount Li 2013). The firm has boosted performance as well as productivity by assuring all of its reward programs that are aligned to the business strategies of McDonalds. The organization has been recognized for its approach in 2012, when they won an Employee Benefits Award for the best alignment of benefits to the business strategies. McDonalds business strategies transformation was facilitated by insisting on the employees towards five principles of employee engagement that are called the five significant ingredients to great customer experience, to which the recognition strategies of the firm is aligned. The organization believes in one principle that if the business strategies go in one direction as well as the reward strategy in another, this will not help the business. The firm has assured that reward is never out of the alignment. In this context, Mowday, Porter, and Steers (2013) commented that employee recognition is the timely, informal and informal acknowledgement of an individuals or teams behavior or efforts. By implementing the employee recognition scheme, the organization could generate a developed business result. In the case study, it is observed that McDonalds has the culture that revolves around or focuses on its people. McDonalds has observed that better-run operations, enhanced quality of customer service, cleanliness as well as the quality products could generate a positive result based on the investment made on the people or the human resource. The firms has built the culture that bring people through the rank of the organization, which means firm wants its people to gain a strong understanding about the focus and the purpose of the business. In order to implement this, the firm has hired the people who are school students aged between 14 and 18 years. These employees could provide a wide pool of skilled managers as well as leaders for McDonalds organization. Hau et al., (2013) argued that McDonalds recognition strategy is not effective for the future growth and employee benefits as the firm relies on the young employees who do not have much experiences regarding dealing with the customers. Customers are the major resource that determines the growth of the business. Thus, it is necessary to hire the experienced employees to deal with the potential customers. On the contrary, the existing studies also indicate the recognition schemes should developed based on the experience and performance of the employees. Conversely, McDonalds irrespective of all level, all employees are equally treated with their performance. The case study indicates that Road to Rio initiative in 2014, developed by McDonalds incentivized the top 5% of the restaurants based on customer satisfaction rating. The employees from some outlets were entered into a prize draw to win a trip to World Cup in Brazil. This initiative helps to learn that this sort of schemes is effective for the young employees who might demonstrate this sort of interest. As opined by Watson (2013), the employees in the current days rather prefer the future growth and job security. Although, the initiative of guiding the young employees in becoming a skilled manager at their early age, when it comes to customer satisfaction the firms needs to think of something more innovative such as providing them job security and career growth opportunities. Hence, Blader, and Tyler (2013) commented that praise as well as recognition are significant to an outst anding workplace. It is true that people want to be respected as well as valued for their contribution. Every individual thinks or feels the need to be recognized as the individual or member of a group as well as feel a sense of achievement for the work they accomplished. Moreover, recognition scheme of McDonalds further indicate that McDonalds develops a unique culture that are underpinned by five different key strategies including people, place, price and promotion. A well developed and strong recognition culture has been instilled in the firm. It has done this by running formal annual events as well as developing programs, which can be operated in restaurant and corporate level. Kanfer, Beier and Ackerman (2013) commented that in order to build an effective recognition culture, it is necessary for the organizations to focus on the Human Resource policies. The HR policies guide the overall performance of the organizations. Moreover, when the firm needs to focus on employee performance, it has to focus on the HR policies. Effective HR polices control over both employee performance and organizational performance (Pinder, 2014). In addition to this, in growing organizations like McDonalds, the employees mostly look for the growth opportunities. Hence, in order to gain the effective outcome from the employees, it is necessary for the firm to provide required benefits (Siemens, 2014). These benefits can be used as the motivational factor to encourage the employees. The case study indicates that recognition scheme developed by McDonalds helps to keep the balance of employee performance and organizational fair treatment. The organization provides the scheme to gain effective output from the employees. This recognition scheme is quite similar to recognition theory developed by Adam. Adams equity theory helps to learn that people seek to keep a balance between their inputs and thee outputs (Miller, 2014). The employees receive such outcome in respect to the outputs of other. The principles of the theory helps to know that fair treatment creates motivation, it includes crucial additional perspective to motivation theory (Pettigrew, 2014). Furthermore, the principles of equity theory help to observe that this theory encompasses the quality as well as the quantity of the workers contribution to this their work. The typical inputs include time, effort, loyalty, hard work as well as commitment. If the employer observes such inputs, the organization prov ides the faire treatment to their employees. In addition, the outputs in equity theory are described as the positive as well as negative consequences that an individual perceives an individual has incurred as the consequence their relationship with other. Hence, Naylor, Pritchard and Ilgen (2013) commented that outputs can be both tangible as well as intangible. Hence, the outputs that organization could provide to its employees in the form of job security, esteem salary, employees benefits, expenses, recognitions as well as responsibility as well as sense of achievement (Hogg Terry, 2014). Therefore, the case study on McDonalds indicate that it provides the outputs to its employees in the form job security, growth and other form. The high-performing employees of the month are recognized as the employee of the month and quarter of the year. These employees are named in monthly staff magazines. The high performing employees are paid well. Conversely, training as well as development is a significant part of ensuring McDonalds. In order to gain positive input from the employees, the firm provides training and development session to its employees; thus, they could perform effectively and return a positive outcome to its firm (Jex Britt, 2014). Therefore, this output and the inputs well discussed about in the theory developed by Adam. Furthermore, the authors in the existing studies have mentioned that Adams equity theory is far more complex as well as sophisticated motivational model than barely assessing the efforts and the outputs. As opined by Kark and Shamir (2013), eq uity does not depend on the input to output ration. It could rely on the comparison between ratio made by the firm and the ration of others. Eventually, it can be added that most McDonalds recognition culture can be supported by Adams equity theory as both inputs, the outputs are well balanced, and they are quite similar to the principles embedded in Adams equity theory. Apart from the Equity theory, the recognition scheme developed at McDonalds can be related to the principles of the expectancy theory. The principles of the expectancy theory indicate that behavior at work in terms of the expectation people carry completely working in a particular organization. As put forward by Bell (2013), effort people put on their work is based on the availability of the desired reward and expectation. There is a belief that successful job performance could result in the achievement of this reward. The job performance of the employees are largely influenced by some significant factors such as efficiency to the perform better , clear perception of thee role as well as necessary of the organizational role. Furthermore, it can be added that when the employees perform better for the wellbeing of the organization, they expect a fair treatment from their employer as well. In such circumstance, the organizations must take the initiative to satisfy the needs and demands of their employees. Eventually, it can be mentioned that recognitions schemes or the strategies developed by the firm can also be linked with the principles embedded in the expectancy theory. This theory partially support the recognition culture developed at McDonald. It is observed that McDonalds approach for dealing with the human resource may not be applicable to the non-profit organizations. A private organization like McDonalds has the ability to make large investment on employee training and development; whereas the non-profit organizations hardly could afford such amount of money for the development of employee training and development programs. In profit organizations, huge investments are made to internal development (Griffin, 2013). For the purpose of gaining effective output from the employees, the organization take the stand of making investment in developing the training and development programs. It is evident that this initiative helps to gain positive outcome from their employees. On the contrary, non-profit organizations largely focus on the service users rather than the employees. Compared to organizations for profits, the non-profits organizations perform bigger responsibilities and duties. However, the degrees of the profit or g ains are less than the profits organizations. Therefore, it can be added that human resources approaches applied to McDonalds would be effective for the non-profit organizations like Spastic centre. Furthermore, it is also identified that non-profit organizations are mostly busy in developing their range of services rather than focusing on the employee benefits. However, some of the non-profit organizations, apart from Spastic centre take the initiatives to invest on their employees. Some non-profit firms take care of their employees by providing them batter career opportunities. For example, the employees of non-profit organizations have to deal with large number of the employees or the volunteers. In profit organizations, the employees at different level has to perform different sort of responsibilities (Rowlinson, Hassard Decker, 2014). Thus, the human resource manager has to play significant role in managing such wide organizational population (Mitchell, 2013). The manager gains the opportunities to increase their experience in such platform. This could help the employees further brighten their career in the profit organizations. This can probably be considered as the oppor tunity or the benefits for the employees in non-profit organizations. Conversely, in profit organizations growth opportunities or employee benefits are larger than the benefits provided by profits organizations for human resources. In addition to all these, the financial challenge is the major challenge faced by the non-profit organizations when it comes to development of the human resource. Non-profit organizations, due to lack of financial stability, do not take such initiative. Moreover, organizations for profits have the shareholders. This means the shareholders of the firms have the ability to make investment for the organizations, which can be further applied for the development of human resource. On the contrary, due to lack of number of shareholders, the non-profit organizations do not always take such initiative. Therefore, it can be added that strategies applied to profit organizations cannot be applied to the non-profit organizations. Conclusion On the completion of the report, it can be mentioned that organizations recognitions scheme play a significant role in motivating the employees. Employee recognition scheme is highly required for the benefits employees, which could further lead to organizational profits. The current essay effectively discusses the importance of employee recognitions and its application at McDonalds. The analysis implies that by providing required benefits to the employee, the organizations could gain the desired outcome from the workforce. However, it has also been identified that some strategies such as hiring young employees for treating the customers effectively may not be effective strategies. In order to deal with the skilled employees, the organizations should rather rely on the skilled employees. The firm should develop the recognitions schemes based on the skills, experience and the performance of the employees. The current essay can be further extended by including some statistical calculati on on the motivational strategies used by McDonalds or other large organizations. References List and Bibliography Barrick, M. R., Mount, M. K., Li, N. (2013). The theory of purposeful work behavior: The role of personality, higher-order goals, and job characteristics.Academy of Management Review,38(1), 132-153. Bell, N. (2013). Leading to make a difference: A field experiment on the performance effects of transformational leadership, perceived social impact, and public service motivation.Journal of Public Administration Research and Theory, mut033. Blader, S. L., Tyler, T. R. (2013). 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