Strategic Innovation and Sustainability

Question: Discuss about the Strategic Innovation and Sustainability. Answer: Introduction Human resource management is an art of managing employees and other procedures in the organization. The process involves several stages such as selection, recruitment and training the individuals in the company. In other words, managing human resources refers to the process of hiring new candidates, offer them sufficient training, improving their skills through adequate training program and prepare them for the respective services according to the need of the company (Findsrud, Tronvoll Edvardsson, 2016). The primary objective of the effectual hiring process is that to ensure that the organization have enough employees in order to achieve the specific goals and objectives with the help of its workforce. The essay aims to investigate systematically the managing human resources in McDonalds, Australia with respect to their theory of retaining talents with effective salary packaging. The recruitment of employees is just the beginning of creating the efficient workforce. However, retain ing the employees requires strategic management and financial and non financial benefits offered to the employees (L?z?roiu, 2015). The human resource management at McDonalds aims at recognizing the talents of their employees and improving them in order to enhance their leadership skills. Discuss how the recognition scheme supports McDonald's culture and attracts future leaders? McDonalds Australia is one of the major employers of the country. There are around 75000 employees in the organization and its franchises across the country. Also, McDonalds won the award of being one of the best organizations for suitable work environment in Australia after a study by a research institute. McDonalds is known for its strong culture and developing future leadership skills in its employees. The company focuses on the management of motivating factors and the final outcome to boost the performance. The company motivates its employees to develop their skills and other talents. These motivating factors include several financial and non financial benefits that the company provides to its employees (Delahaye, 2015). Each branch of the restaurant operates as a separate unit and its employees have a keen interest in involving with the idea of teamwork and collaboration to make sure that the restaurant is as much flourishing as possible. Reports have shown that the company has a trend in developing its future leader from its existing employees. It is also seen that around eighty per cent of their restaurant managers have started as a part of the crew as well. This shows an exceptional trend of retention of the old employees for a long time, most of the time throughout their career. As far as the trend goes, a large number of the staffs of McDonalds, around seventy per cent, are the school goers of fourteen to eighteen years (Mahajan, 2014). McDonalds believe that this population of the employees has a strong potential of becoming leaders and managers in the company in future. The management of the company primarily focuses on the employees more than anything in the internal structure. It recognizes that effectual and efficient implementation of the human resources can enhance the primary objectives of the company and help in achieving them. The HR professionals in the company ensures that after hiring the employees they provide adequate training and developmental sessions to the fresh candidates and they feel motivated throughout their stay by the seniors and the authority (Fee, 2014). The management of McDonalds makes sure that it recognizes the better run functions by the employees, providing high quality consumer service, quality product management, and hygiene and cleanliness from the existing batch of employees and invests on them for better outcome in future. The company considers the training and developmental sessions to be a significant part in order to ensure that the renowned organization, McDonalds meet its standard throughout and develop the crew to be future leaders in the organization. The training sessions in McDonalds are arranged with a lot of motivation factors and care for the employees. A recent study has shown that McDonald Australia has been registered itself as a registered training institution with their annual budget of training around $40 million. McDonalds spend most of the allocated budget to train their frontline crew. Another policy of McDonalds in order to motivate and train their employees for the further betterment is the succession plans. The succession planning is thoroughly emphasized in the company. The plans are examined at their quarterly business review. Frank McManus, the senior vice president and the director of human resources of McDonalds Australia have stated that he along with the training and development team spend around thirty to forty percent of their time on the development of executives and talent management (McDonald's Australia, 2017). These initiatives are a significant part of the motivation and recognition scheme of McDonalds. Apart from these, the company has also developed a unique culture of recognition. The formal annual events, development programs which operate at each of the outlet and the corporate level are parts of the recognition scheme. There is also the crew recognition program that is operated in each of the outlets. This particular program helps the management to recognize the crew members who have made effective contribution to the performance of the outlet during their individual shifts (Lee, Raschke, 2016). The staffs with high performance rates are also recognized as the employee of the month or the quarter of the year. These employees are also mentioned in the monthly staff magazine WRAPT and they are awarded with discount cards or other gifts. These recognitions work as a strong motivating factor in the crew members. At the corporate level, McDonalds has the outstanding achievers award in order to motivate their employees. The employees who have contributed to the strategic business m anagement in an effective way or their delivery results were more than the expected outcomes, are further motivated and recognized with the outstanding achievers award, which is a $500 gift. The authority of the company presents this award in front of their peers and sub ordinates at their bi annual employee meeting. This recognition scheme has proved to be very much effective and supports the strong organizational culture in McDonalds and attracts the future leaders. From the managing directors of McDonalds in Australia in most recent thirty years, three of them started their career ion McDonalds as a young crew of 15 years old. In a national survey, the researchers have found that around ninety two percent of the employees believe that their training and development session have encouraged them towards performing well (Miner, 2015). Also, around eighty four percent of them acknowledged that they have offered adequate opportunities to learn more new skills. A recent survey also found that seventy six percent of the managers at McDonalds think that they ggot sufficient career opportunities from the organization. Discuss which theory (ies) you think would support McDonald's recognition scheme? The recognition scheme of McDonalds highly focuses on the motivation and the encouraging their employees to boost their respective performance. The human resource policies of the company focus on structuring the company and engage the workforce towards a common goal. While discussing the recognition scheme of McDonalds, it can be seen that several theories of motivation would support their scheme. According to the basics of the human resource management, the staff rewards system in the organizational culture can be very much helpful in motivating the employees (Wilton, 2016). The expectancy theory of human resource management states that, an employee would behave in a specific way, when they are motivated to opt for this specific behavior over other options as they expect certain result of the chose behavior in the end. This explains a lot about the behaviors or the job performances at the work place in terms of the expectations of the employees have at the end of their terms (Quested et al., 2016). Expectancy theory strongly focuses on the mental procedures of making choice. This theory is first proposed by Victor Vroom and defines the motivation as the procedure of governing the choices among the given alternatives of the activities. Expectancy theory also argues that the efforts employees make at their workplace in entirely based on the accessibility of their desired reward and the expectation of recognizing their effort by the management. The job performance of the employees are mostly influenced by three factors; a understandable perception of their job role, their ability to perform, and the necessary resources provided by the organization that will help and support them in the job performance. In McDonalds, the management have provided recognition scheme in order to motivate their employees, such as the discount cards, gifts, mentioning in the employee magazine (Lockyer, 2013). These appraisals work as a strong motivation for the employees and make them work towards a shared goal. In context of the recognition scheme, Maslows hierarchy of needs can be discussed as well. This theory refers to the basic levels of the requirements such as the physiological needs, safety needs, love and belonging needs, esteem needs, and self actualization. According to this theory, the guarantee of a favorable salary structure is one of the physiological needs of employees of any organization (Miner, 2013). As identified by researchers, it works as the most primary need of any staff. Making sure of a good salary structure in order to fulfill the physical needs of the survival is the basic expectation of the employees. McDonalds offers an appropriate salary structure and other financial benefits to its employees. In addition to that, other offers such as gift vouchers, mentioning the names of the employees in the monthly magazine give the employees a motivation boost to them. In addition to the previous theories, another theory of motivation can be discussed, that is the Agency theory. This theory refers to the relationship between the agents and the shareholders of the company. Also, this theory attempts to focus on the diverse interest and the aim of the stakeholders of the company and the way they recompense the employees in align to these aim and interest (Miner, 2013). Agency theory also deals with the conflict of interest between the management and the employees. In discussing the recognition scheme of McDonalds, it can be seen that the management ensures that both the interests of the employees and the management are fulfilled. The company offers a lucrative structure of salary and provides other tangible and non tangible benefits to all levels of employees. The management ensures the needs of the employees are satisfied, as they are the primary resources of the organization. Another theory of motivation, ERG theory of motivation, can be discussed in this context. Psychologist Alderfer addresses this model in order to explain the comprised version of Maslows hierarchy of needs and refers to three basic needs of survival; existence, relatedness and growth (Pinder, 2014). This theory states that, existence is the most primary needs of the human being; then the needs of relatedness comes, where an individual satisfies the interpersonal relationships; at the final level the growth is required in order to develop their current position. The training and development sessions offered in McDonalds can be identified as the most suitable tool of developing the current position of the employee. After analyzing the recognition scheme of McDonalds, it can be said that McDonalds almost fulfills all the basic needs of human resource management. Their performance goals help to satisfy the requirements of reaching the target of the company; the endorsement of leadership and intercompany promotions satisfies the need of the employees (Stone, 2013). Thus, the conflict of interest between the employees and the management are not that common in McDonalds. The organizational culture in McDonalds is entirely employee centric and the management makes sure, that they motivates each of their employee for further growth and attracts the future leaders. Therefore, it can be concluded that McDonalds has utilized several theoretical approaches in order to encourage and motivate its employees. Would McDonald's approach to managing human resources be directly applicable in a not-for-profit organization such as the Spastic Centre? Justify your answer. The Spastic Centre is a nonprofit organization is New South Wales, Australia, that have utilized the policy of salary packaging like McDonalds. Several researchers have found out that, a competitive salary packaging is very much required for the reduction of employee turnover. As far as Spastic Centre is concerned, the employee turnover rate is considerably higher than the other profit maker organizations (Nadolny Ryan, 2015). However, Spastic Centre has already followed the offering of lucrative salary package following the trend of McDonalds and agreed to bring their offer up to $16500 a year. This offer also includes a meal entertainment allowance for the employees. The organization has used this policy for the salary packaging for around twelve years and this is a clear evidence of the accomplishment of reducing employee turnover in the nonprofit organizations as well. In the nonprofit organizations, the offering of poor salary package and less employee benefits are mostly responsible for the huge turnover rate of employees in this sector. In addition to that, very few institutions in the NGO sector have the prospect to provide the opportunity od professional training and development sessions to their employees for the increasing the skills of the employees. However, providing the training would have been very much profitable for the organization itself. This lack of prospect of the professional development, most of the times, drives their staffs in switching their organization or the sector itself (Parker, 2014). However, Spastic Centre has not entirely been able to make the approach of McDonalds effective for their own organization in managing the human resources, because of several reasons. Lack of resources and provision of developing and provide training to their employees are the two most primary reasons of that. Therefore, it can be said that McDonalds salary packaging can be applicable to the nonprofit organizations as well. As the researchers have shown in a recent study, the competitive salary packaging will limit the amount of frustration among the general employees. Also, other non financial benefits such as health benefits, providing accommodation, tax relaxation, and food can be very much useful for the nonprofit organizations in offering a sense of satisfaction to the employees (McFarlane, 2015). Apart from that providing the training and development sessions to the employees will uplift the skills of the employees and attract more leadership qualities in them. Conclusion While concluding, it can be said that the recognition scheme in an organization can be highly motivational in making sure the operational silkiness and encouraging the employee commitment and satisfaction. If the organization provides lucrative salary package along with other benefits and developmental provisions, the company will be able to retain more employees. Several theories of employee motivation supported the provision of salary benefits in order to ensure the employee satisfaction and maintenance of the talents. McDonalds Australia have used the employee recognition scheme and developmental provisions to support their organizational culture. The lucrative salary package attracts more talent on one hand, and the training helps them to grow professionally on the other hand. In this way, the human resource management strategy of McDonalds serves the employee motivational factors and the organizational benefits at the same time. Reference List Delahaye, B. (2015).Human resource development. Tilde Publishing. Fee, M. C. (2014). Human resources management. Findsrud, R., Tronvoll, B., Edvardsson, B. (2016). 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