Classical and human resources approach of McDonald
Operating the business at international level is not an easy task. It is something which demands huge level of understanding about the cultural aspects, management style and most importantly the fundamental principles must be clear. The McDonald has commenced its operations in Australia when this concept was new to this world and very organizations were active into the process of internationalization. But with the help of classical approaches to management the organizational handles its business operations and develops the huge market share and organizational structure in short period of time. Here in this report the relevancy of classical approaches has been judged within the business operations of McDonald. The Henry Fayol’s five principles (planning, organizing, command, controlling and coordination) has been measured and assessed with respect to the McDonald and its decision making process. Further the flow of communication has also analyzed in an appropriate manner.
Ahead the special consideration has been given to the analysis of human resources approaches as well. On the ground of human resources approaches the applicability of motivational theories and leadership style of cited organization has been assessed. It provides better knowledge about the reason behind the high level of employee satisfaction. The outcomes provided the fact that the transformational and situational leadership style is the basis of organizational success for McDonald. Thus it is clear that in current scenario may be lots of food retailers are doing well all across the globe but actually the dimensions of internationalization has been changed by McDonald only and it is quite understandable with the context of sustainability and profitability gained in Australian market.
1.1: Purpose and scope:
The main reason behind the construction of the study is to understand the classical and human resources approaches with the perspective of Australian organization. This study can provide huge intellect with respect to understand the human resources strategies of the companies operating within the territories of Australia.
The human resources approaches and theories have gain huge consideration so that the cultural values of McDonald could be easily understandable (in order to handle the employees and operational issues) and most importantly the role of culture in determining the values and operational activities of cited organization could be identified easily. The classical approaches are mainly responsible for bringing the transformations in business activities and always act as guidelines to the world leaders.
Ahead in current scenario the impact of classical approach has also assessed in painstaking manner in order to handle the internal management like communication, employee relation, planning process and decision making process etc. and dealing with the negative aspects in an appropriate way. Thus here the human resources theories along with classical approaches have been tested on McDonald.
In order to conduct this study the secondary information has been gathered from different secondary sources. Mostly the books, online articles, published journals have been referred so that the proper intellect could be developed about the working of McDonald and understanding the different human resources approaches.
It is assumed that the information or data that has been included within the study is completely reliable and valid and could be used for the future reference. Another assumption is that the cultural aspects need to be handled both internally and externally as it strengthen the human resource strategy. The pressure of cultural aspects is always a challenge for the multinational companies. The human resource management is highly affected by the cultural aspects or it could be assumed that human resource management and cultural aspects are interlinked to each another. Further the list of assumptions include that the McDonald is highly influenced by the classical approaches to management.
The cited organization is one of the giant organizations in the field of food and retailers industry. The company has its outlets all across the globe and serve millions of people every day. The major positive factor, which provide distinctiveness to company is that they deliver fast and quick services to its customers. They have approximately 30000 restaurants all across the globe and have their operations near to 1209 countries. It is huge availability of at various regions and it increases their responsibility towards the classical and human resource approaches.
In Australia the mentioned food retailer opened their store at Sydney suburb Yagoona in Australia and till now the number of restaurants has reached near to 800. The number of employees has been reached to the 85000 employees who put their effort to increase the credibility of company among the customers. Here in Australia also the company followed the four principles which are quality, standard, services and value. These four principles are the only management philosophies that never changed whether they operate in any part of the world. The cited organization has developed its strong roots into the Australian land and has successfully captured the huge market share. The customer satisfaction is their major priority and always focuses on building the strong relationship with various stakeholders in Australia.
2.1: Human resources:
Human resource is one of the major factors that can help in determining the organizational success by managing the workforce and organizational culture. If the human resource management is not effective then the execution of policies and strategies could be in vain. In very simple manner the human resource management is an approach to deal with employees and molding them as per the organizational objectives or culture. There are various theories of human resource management that provides huge level of strength to the management and its structure (Richard and Johnson, 2001).
2.2: Classical management theories:
The classical management approaches are highly based upon the basic principles of management and focuses on the fundamentals of management that helps on the ground of dealing with operational issues and challenges. The reflection of these theories could be realized on the management activities of McDonald as well.
2.2.1: Henry fayol’s basic five principles:
The Henry Fayol theory focuses on the five major factors and the cited organization has always tries to make alignment with these aspects. The major factors are planning, organizing, command, coordination and controlling. These five principles given by the author has been followed by the McDonald in an appropriate manner (Ordiz and et,al., 2003). The discussed business entity has huge level of relevancy with the proper planning of all the resources and activities that has been undertaken into the outlets. The element of quickness has been attained only through proper planning process. Further the element of organizing also allows the food retailer to get hold on delivering the excellent services to the customers. It is to acknowledge that through command the company is able to get access to all the activities and can easily focus upon making the alignment between all the operations. Coordination could be reflected again in their principles like quickness and services (Daily and Huang, 2001). Through effective coordination among the team members and various other departments the customers get effective services from the McDonald. Ahead the cited restaurant retailer focuses on maintaining the coordination with outside business stakeholders as well so that strong business model could be developed (Mariappanadar, 2003). Further the element of control helps the mentioned organization to ensure the effectiveness of their system and business model. They control their values and get hold on the standards as well. Every aspect of business and management remains in control.
2.2.2: Communication and its role according to classical approach:
In classical approach the role of communication is very huge and McDonald has made effective use of transformation took place in communication and interaction process. It is to acknowledge that whether the communication has been improved in modern management era but its expediencies has been explain in classical approach also (Koprowska, 2010). Most of the management experts have mentioned that if the organization is dedicated to get hold on their business operations then the communication flow must be proper and effective. Here the role of communication is effective in all the aspects like establishing the communication outside stakeholders like suppliers, vendors, investors and customers and influencing the internal stakeholders like managers, board of directors and employees (Matiza, 2013). The McDonald has focused on improving the communication aspects in very strong manner. It has allowed them to build relationship with community and they were able to communicate their vision and organizational value as well. The cited organization adopts different communication strategy to attract various stakeholders and make maximum use of all the mode of communication. Thus here also the role of classical approach is very huge in influencing the management activities. Therefore on the basis of above discussion it becomes clear that the McDonald has followed the classic approaches to management in modern era as well.
2.3: Human resources approaches:
It is well saying that other organizational resources are tough to control but when it comes about human resource management then this activity is toughest and challenging task for the companies. The changing moods and emotions, the fluctuations in behavioral aspects there are various factors which make the human resource dynamic (Dowling, Festing and Engle, 2008). But there are various theories and approaches of human resource management that can help on the ground of dealing with these identified challenges of human resource management.
2.3.1: Motivational theories:
Most of the human resources theories revolve around the productivity enhancement approach, leadership style, cultural aspects and increment in the motivation of employees. There are various theories related to the motivational aspects of employees but the role of Maslow need hierarchy theory is immense in understanding the basic reasons behind the high motivation of employees (Sheldrake, 2003). The McDonald has aligned with these aspects at very large scale and creates the motivational factors for its workforce. The psychological needs have been fulfilled by providing the highly secure working conditions for the employees. It is to acknowledge that the pay scale of McDonald is justified as per the roles and responsibilities and it just allow staff people to fulfill their basic needs (Gardiner and Tomlinson, 2009). Ahead the safety needs includes the job security. The McDonald works in very ethical manner and never terminates the employees without any reason. It is something which stimulates the morale of employees while associated with the cited organization. In Australia the reputation of McDonald with same aspects is very positive. The affiliation needs has also fulfilled by the cited organization. In order to increase the motivation of employees the managers tend to build string relationship with employees and sense of understanding with co workers and managers is also appreciable. It’s an effort of top management to build such working environment where all the employees feel at home and feel motivated. Esteem needs are something which has been taken care of by McDonald at very large scale. The mentioned business entity has created its value to provide equal growth opportunities to each and every employee (Berghman and Vloeberghs, 2003). The company appreciates the efforts and hard work of employees no matters which hierarchy level they belongs to. The rewards structure is properly affected by the performance assessment and there is no place of any kind of favoritism while promoting the employees. Thus the esteem needs has gained huge priority by the McDonald. At last the values and philosophy of food retailer also revolve around the fulfillment of self actualization needs of employees. The staff people get full opportunities to ensure their growth and development within the organization. The provision on internal promotion is very good which fosters the high level of working motivation among the employees. Thus in this way this motivational approach of human resource management has been applied in an appropriate manner (Analoui, Doloriert and Sambrook, 2013).
It is actually influenced by the managerial grid proposed by Blake and Mouton. They establish the relationship between the combination of human resources approach and classical management approach. Here the leadership style has been proposed with respect to ensure the motivation of employees or it can be said that these leadership styles can affect the organizational culture as well. Now days various aspects of human resource management like employee retention, motivation, engagement and job satisfaction are highly affected by these leadership theories (French, 2011). It has become most influential human resource approach. The reflections can also realize in the case of McDonald. There are four kinds of leadership styles that could be adopted by the managers. Exploitative authoritative, benevolent authoritative, consultative and participative leadership styles have been explained through likert system that could be adopted by any organization. However with the changes has been experienced within these approaches over the period of time. Form the very beginning the cited organization has adopted the transformational and situational leadership style. The transformational leadership was in the basis or core of the management activities and situational leadership style affect the regular business operations or decision making aspects (Krakel, 2007). It is very interesting fact that the McDonald has huge relevancy with the visionary approach and they expand their outlets all across the globe very rapidly. Even in Australia the success story of food retailer is very transforming and inspiring for others. They become so innovative and visionary form the beginning (the main characteristics of transformational leadership style) and adopt situational leadership as well. Here situational leadership depicts the mix of participative and autocratic leadership style. The company never compromise on the customer satisfaction and adherence towards the quickness, cleanliness, values and excellent services which represents their autocratic leadership style. For the same purpose the strict set of instructions were given to each and every employee. Further the company has valued its each and every employee and focus on fulfilling their needs which represents the participative leadership style. The ideas have been accepted form lower management also and changes have been done as per their suggestions (Neff, 2006). Thus in this way the reflection of both the leadership style (participative and autocratic) corroborates for situational leadership style.
With the help of above study proper understanding about the classical and human resource approach could be developed among the individuals. It becomes clear that the role of such approaches is very huge in managing the business activities. The major learning of the study is that if the giant organization like McDonald is stick to these basic fundamentals proposed into the classical and human resource approach then the small and medium sector organizations should also focus on aligning with the principles of these approaches.
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