Table of Contents Introduction: 2 Critical Analysis of Chosen Organisation: 2 Business Issues of the Organisation: 3 Principal Environment within which Different Parties of Organisation Interact: 4 Conclusion: 5 References: 6 Introduction Human resource is one of the essential components of the firms and the fate of the firm depends upon the employees of the same. Under the complex business environment of the 21st century, it has become essential for the firms management to comply with the human resource strategies which allows the employees fulfil the personal goal while completing the organisational goal (Thoman and Llyod, 2018). However, in certain scenarios, it has been observed that there is much amount of rigidity presents within the managerial domain regarding compliance with human resource strategies (Hossain and Shirazi, 2018). This is one of the main reasons that lead to business issues and the collapse of the organisational performance. Under this situation, this report aims at analysing the micro environmental principal under which different parties of the organisation interact and communicate with each other. For better understanding, the present study will consider the case of the McDonalds worker strike related to the pay hike issue that recently took place in London, UK. Critical Analysis of Chosen Organisation McDonalds is the third largest food chain in the UK and it was introduced in the UK by Powis St. Woolwich in South London (Wallop, 2014). The brand was introduced in London back in the 1970s and presently it is celebrating its 11th consecutive growth year in the UK with the ever-rising number of employees and stores around the different counties of the state (McDonalds, 2018). Since 2016, the brand has pledged to create 5000 jobs annually providing aid to the governments plan to reduce unemployment by 2020 to half (Wallop, 2014). Recently during 2014, McDonalds celebrated their 40 years in the UK and with the same the brand has showcased that it contributed 40 billion pounds to the economy of UK (McDonalds, 2018). As per the same source, the brand it has always tried to maintain good relationships with its stakeholders and the consumers allowing them to directly participate in the growth process of the firm. Moreover, it has also been showcased by the firm that there is potential growth prospect in front of the firm with the effective human resource management and the competitive edge over the brands like TGI, Costa, Greggs and others. As per the present market situation of McDonalds, it can be seen that the firm has been gaining much amount of focus due to its rising business over the other business like Uber Eats, TGI and other eateries (Murphy, 2018). Though the prices of McDonalds are comparatively higher than the alternative brands yet, it has managed to have a unique place in the market with their good service and strategic marketing policies. Business Issues of the Organisation McDonalds is one of the largest eateries around the world and it has 1,249 branches in the UK. Considering the brand value and food chain size it is third in the nation and employs more than 120,000 people in a different position of the business (Bbc, 2018). Considering the amount of business, it can be argued that McDonalds is obviously a good place to work; however, UK workers of McDonalds have a different tale to tell (Murphy, 2018). As per the recent payout structure of McDonalds, it can be seen that it pays less than the minimum wage by restricting the workers to work a full day. Moreover, the payout is much lower than the minimum sustainable range and it has made lives of many workers miserable. As the effect of this, a strike has been called in recently so as to protest against the autocracy of the McDonalds authority in London. As per the BBC news report, it has been found that McDonalds pays only 5p higher than the minimum wage for the 25 years old and the rate is much lower for the people who are 23 years old or less (Murphy, 2018). The scenario becomes more complex when McDonalds brought in the flexible working contracts that allow the workers to earn higher money with a flexible timing of the operation. Besides this, as per the new contract, workers are allowed to know their schedule only a few days in advance making job their life (BBC, 2018). As per BBC news report, a McDonalds employee argued that direct control of the management over their life has been arbitrated by the flexible job offer rather than fixed job offer (BBC, 2018). It means, during the time of high pressure, the firm will call upon them and instead of paying higher wages per hour only higher amount of table have to be served by them. On the other hand, during the low-pressure situation, working hours will be limited so as to reduce the cost burden of the firm. Moreover, the new contract has restricted the employees to have tips from the customers reducing their potential extra income; however, as per striking employees, the brand is playing a dual game by doing one thing in practice and showcasing something else in their webpage (Murphy, 2018). Thus, this has become and grave issue for the workers that has led to strike on the street of London during the recent day. Principal Environment within which Different Parties of Organisation Interact As per Ren et al. (2018), human resource is an integral part of every business that not only allows it to have smooth performance rather allow it to grow with time. Besides this, Hossain and Shirazi (2018) argue that human resources are the essential portion of the firm that can be acknowledged as the keeper of the working culture within the firm and guardian of the firms principles and values across the whole industry. In the case of the crisis situation, human resource professionals play a crucial strategic role and their presence reduces anxiety. More importantly, human resource operates as the bridge between the management and the employees by passing the information both ways (Thoman and Llyod, 2018). Though there are the different frameworks of information flow, yet in generic terms, human resource is entitled to act as the bridge between the employees and the managers. Thus, it has become clear that human resource is an essential part of the business (Jung and Takeuchi, 2018). Coming to the employees, they can be argued as the building blocks of the firm and depending upon the success or failure of the firm can be determined on the one hand. On the other hand, managers are the crucial factors of the business because they over watch the performance of the whole business and acts as per the board of directors discretion to make the business profitable (Ren et al., 2018). Under this situation, it can be argued that as per contemporary human resource management view, there should be an equivalent ground of communication, where managers, employees and the human resources need to interact to avoid a crisis situation. As per Harney et al. (2018), human resources need to consider the employees as the prominent factor of the organisation who adds value and contribute to the betterment of the whole organisation on the one hand. On the other hand, Renwick (2018) argues that, as per the human resource perspective, managers are executive officers who are entitled to take the managerial decision for the betterment of the organisation. And when it comes to the human resource they need to operate as the buffer who can mediate between the other parties involved in the operation of the business (Collings et al., 2018). In the case of McDonalds, it can be seen that the firm lacks in case of managerial participation and due to this, there is a lack of common ground where managers and the employees can discuss their issues. It has led to the growth of the payment issue and eventually strikes have taken place (Baudrillard et al., 2018). However, rather than a direct influence on the workers, if the managers could have brought in the flexible contract with the help of the human resource communication, then it would be better for the firm. Conclusion: As per the above analysis, it can be seen that it has become evident for the firm to comply with the human resource management strategies so as to enhance the sustainability and workability of the firm. Under the competitive environment of business working, culture can flourish and workers can enhance their opportunity for growth. However, considering the case of the McDonald, it can be seen that workers have been suffering from discrimination regarding their pay and it has led to a strike in London. The UK exercise minimum wage principal in order to maintain uniformity among the pay structure; however, as per the employees of the McDonald, the firm violets the same. Thus, the operational environment within the firm is hostile in nature and there is potential lack within managers, HR professional and workers interaction framework. References: Baudrillard, J., Poster, M. and Belk, R. (2018). Hyperreality and globalization, culture in the age of Ronald McDonald. InConsumer Culture Theory(Vol. 8, No. 34, pp. 1-15). Stanford, CA: Stanford University Press. Bbc.com. (2018).Fast-food workers strike over pay. Retrieved from https://www.bbc.com/news/business-45734662 [Accessed 6 Oct. 2018]. Collings, D.G., Wood, G.T. and Szamosi, L.T. (2018). Human resource management: A critical approach. InHuman Resource Management(pp. 1-23). Routledge. Harney, B., Dundon, T. and Wilkinson, A. (2018). Employment relations and human resource management. InThe Routledge companion to employment relations(pp. 122-138). Routledge. Hossain, T. and Shirazi, H. (2018). Quality of Work Life among Women Employees Working in RMG Sector of Bangladesh.Global Disclosure of Economics and Business,7(1), pp.27-40. Jung, Y. and Takeuchi, N. (2018). A lifespan perspective for understanding career self-management and satisfaction: The role of developmental human resource practices and organizational support.Human Relations,71(1), pp.73-102. Mcdonalds.com. (2018).History McDonalds UK. [online] Available at: https://www.mcdonalds.com/gb/en-gb/newsroom/history.html [Accessed 6 Oct. 2018]. Murphy. I. (2018). Why we are joining the McStrike action. [online] bbc.com. Available at: https://www.bbc.com/news/uk-england-45731076 [Accessed 6 Oct. 2018]. Ren, S., Tang, G. and Jackson, S.E. (2018). Green human resource management research in emergence: A review and future directions.Asia Pacific Journal of Management,35(3), pp.769-803. Renwick, D.W. ed. (2018).Contemporary Developments in Green Human Resource Management Research: Towards Sustainability in Action?. Routledge. Thoman, D. and Lloyd, R. (2018). A Review of the Literature on Human Resource Development: Leveraging HR as Strategic Partner in the High Performance Organization.Journal of International & Interdisciplinary Business Research,5(1), pp.147-160. Wallop, H. (2014).15 Fascinating facts about McDonalds in UK. [online] Telegraph.co.uk. Available at: https://www.telegraph.co.uk/foodanddrink/11223308/15-Fascinating-facts-about-McDonalds-in-UK.html [Accessed 6 Oct. 2018].
Human resource is one of the essential
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