Recognition Scheme and Leadership Approach

Question: Discuss about the Recognition Scheme and Leadership Approach. Answer: Introduction: The aim of the study to focus on the Human Resource Management theories and models related to employee attraction and retention along with career progression, remuneration and reward. The purpose of the study is to explore the effectiveness of the HRM practices in the present dynamic business environment. This particular study is based on the case study of retaining talent with salary packaging by McDonald and the Spastic Centre. In order to carry out the study, a secondary research based on a number of HRM theories and models will be done. Discussion on the recognition scheme that supports McDonald's culture and attracts future leaders As evident from the case study, salary packaging plays an effective role in attraction and retention strategies of the employees. A number of other means of rewarding and retention process has also been mentioned in the case study. It has been found that the most popular means of salary packages include vehicle benefits, providing laptops or PDAs. This type of payment scheme has been evident in Spastic Centre. The employees only had to pay $1 a week to avail the scheme related to food outlets and other life necessities (Brown Capozza, 2016). However, an important thing has to be mentioned here that Spastic Centre is a non-profitable organization and keeping the same perspective in mind, the organization does not aim at increasing their profit. On the other hand, if the situation of McDonalds is considered, it has to be said that it is a profit making organization, thus, it has to think of various ways to compete with the other competitors of the market. The Organizational culture at McDonalds has provided unique pay and reward recognition scheme that has helped to motivate the employees of the organization. The Reading Lovewell-Tuck, (2013), it was understood that the fast food restaurant has always successfully managed to motivate the employees and engage them into the organizational activities. This has even boosted the productivity and performance of the organization. As commented by Wery and Thomson, (2013), this reward and recognition scheme falls under the organizational strategies of McDonalds. In fact, the reward programs aligned to the organizational strategy won the award for Employee Benefits Award and since then the strategy never lost its focus (Malik, Butt Choi, 2015). There was an increase in the sales of the products of McDonalds and thus, the motivating strategies can be easily considered as the important tool for the future managers as well to learn from. The management has always focused on making the work place resonate for the employees to work for the particular organization (Grbz, ?ahin Kksal, 2014). Organizational culture at McDonalds supports the goals and objectives of the Organization. Being the biggest fast food restaurant, the Organizational culture has to be designed in a way to attract more customers and eligible employees (Lawter, Kopelman Prottas, 2015). In the same manner, the organizational and the work culture at McDonalds is designed to encourage a learning process. The incentives and the other motivating factors reflect the effectiveness of the firms ability to achieve the desired level of human resource capabilities and excellence. Certain characteristics of the culture at McDonalds can be mentioned here. As mentioned by Crawford, (2015), the culture at McDonalds emphasizes human efficiency and human resource development. The management prioritize towards people-centricity, individual and organizational learning along with diversity and inclusion among the employees of the organization. The organizational culture at McDonalds has enabled the Organization to take advantage of the human resource and improve their quality as well by individual learning as well as organizational learning process (Faisal Ahammad et al., 2015). Therefore, it can be easily considered as the most effective and meaningful success factor in the business of McDonalds. From the above analysis and understanding, it can be easily said that the motivating factors that are used by McDonalds are definitely the best motivating schemes for the employees. Moreover, as known from the case study, the managing directors themselves had worked for the Organization since the time, they were young (Joseph Zacharia, 2013). Thus, they have the knowledge about the culture and the working of the Organization. Futures leaders definitely have true identification of rewarding and motivating employees. Discussion on theory (ies) that would support McDonald's recognition scheme. If the case study of McDonalds is considered, it has to be said that the management of McDonalds focuses on motivating the employees and increase productivity of the employees as much as possible. Therefore, motivational theories can be applied in this respect. Some of the employee motivational theories can be discussed in this respect. Expectancy theory: The Vrooms expectancy model proposes that an individual acts or behaves in a way they are motivated. Therefore, it is important to understand the specific behavior of a person that could determine the desirability of the outcome of the motivational factor. In this matter, Joseph and Zacharia, (2013) commented that understanding the behavior by the means of cognitive process produces desirable outcome. The motivational elements differ from person to person and thus, the outcome cannot be considered as the sole factor for determining the decision on behavior of an individual. Motivation is instrumentally important for achieving better result in terms of performance of an individual and the desirability of achieving the result is known as the valance. As stated by Grachev and Rakitsky, (2013), the management of an organization is highly responsible for taking care of the needs and the motivational factors of the employees. Whatever is promised to the employees should be ensured to them. The management should understand the needs of the employees that might include training or supervising the employees. The perception of the employees towards the management should be clear enough that the employees stay motivated to work at the particular workplace (Aitken, 2014). Motivational approach made by the management of McDonalds has helped to motivate the employees largely. As it has been evident from the case study that apart from providing monetary incentives to the employees, the management also recognizes the employees based on their performance. Recognizing the employees by different titles like Employees of the Month encourages the employees largely and is an impactful motivational factor that future leaders can learn from. Taylors Scientific Management: The Scientific management theory of management analyzes and synthesizes the workflow in an organization. The main objective behind this theory is to improve the economic efficiency focusing on the labor productivity. This attempt was made to apply a number of scientific thinking into the productivity of the organization (Grachev Rakitsky, 2013). The analysis includes logical and rational approach towards the work in an organization. The theory mainly focuses on increasing the efficiency of the workforce by transforming the craft production into mass production. A transfer of knowledge among the employees of an Organization helps to meet standardization of best practices to protect the social status of the particular workers with particular skills and abilities (Aitken, 2014). The theory also focuses on the accomplishing the improvement of the organizational management by improving the productivity of the workplace. If the motivational factor undertaken by McDonalds is considered, it can be said that the management has been focusing on improving the skills of the employees and at the same time, always try to motivate the employees by providing some monetary benefits. Therefore, the motivational factors that are used by McDonalds have helped to motivate the employees greatly and the result can be easily seen from their productivity. Herzbergs Two Factor Theory: Herzbergs Two Factor Theory talks about the important factors that act as the root of motivational factor for the employees of an organization. The motivation-hygiene theory is consistently related to job satisfaction. Kim, Kim and Heo, (2015) pointed out a number of factors that motivate the employees of n organization. These factors are achievement, recognition, responsibility, advancement and growth. When these mentioned factors are completely fulfilled by the management of an organization, there remains a greater chance that the employees get motivated and they focus on improving the organizational productivity (Cerasoli, Nicklin Ford, 2014). In addition to this, there are a number of factors that creates dissatisfaction among the employees (Band et al., 2016). These factors are certain Company policies, the work condition, insufficient salary, poor security and others. Therefore, the management should focus on eliminating or improving the situation that would create dissatisfac tion among the employees of an organization (Olafsen et al.2015). It is when the employees of an organization finds job enlargement and enrichment along with certain level of empowerment, the motivation level increases and the organizational activities increases considerably. The motivational factors that are evident at McDonalds are based on the expectations of the employees. It has been observed that the employees of the Organization have been promoted to the managerial position as well. This is one of the most impactful motivational factors that the Organization had undertaken. As commented by Kim, Kim and Heo, (2015), when the eligible employees are recognized and they are included in making important decisions for the organization, the employees get highly motivated and they focus on the improvement of the organization as well. Therefore, it can be said that the Herzbergs Two Factor Theory can be rightly applicable to the motivational factors of McDonalds. Theory X and Theory Y: The Theory X and Theory Y model is another exceptional motivational theory that is used by major organizations to motivate their employees. The theory suggests that the management style of an organization is strongly influenced by the beliefs and assumptions of the employees. It has been assumed that employees automatically get motivated if they like the work and they get unmotivated if they do not like the work at all (Band et al., 2016). In case, if there remains an authoritarian approach in the management style, there remain lesser chances of acceptability among the employees. Theory X assumes that employees are less intelligent and that they can be made intelligent if they are trained well. The average workforce can be easily motivated to perform better by the application of a number of motivational factors. In this respect, Turan, (2015) commented that it is in fact suitable for the management as well to find out various ways to motivate the employees and increase the productivi ty of the organization. Theory Y talks about the internal organizational structure of an organization. As stated by Aitken, (2014), employees are the most efficient and effective resource of an organization and thus, they should be rewarded for their part of work in order to boost their morale. If the employees get motivated, there remains a greater chance that the organization will prosper. Assuming the factors of X and Y, it can be easily said that McDonalds motivational factors are inclined towards improving the condition of the employees and has resulted in creating a relationship between the employees and the management. The motivational schemes like performance based pay scheme or rewarding them with the right title and designation has resulted in motivating the employees which in turn has improved the organizational capability to a great extent (Dobre, 2013). The theories explained in this part of the paper helps to understand the importance of motivational factors in improving the productivity of an organization. It can be rightly said that incentives and monetary schemes are greatly recognized by McDonalds to motivate their employees. Therefore, it can be said that it is the motivational factors that has helped McDonalds to reach the mark where the Organization presently stands. Application of McDonald's approach to managing human resources in a not-for profit organization such as the Spastic Centre. Justification of the answer The motivational factors used by the non-profit organization Spastic Centre was based on salary packages. In addition to this, childcare centers, gym and food and drink packages were aloes included in the packages for the employees of the organization. The employees have to pay very less amount to avail the services of food packaging. On the other hand, the motivational and the recognition schemes of McDonalds are based on the profit earned by the Organization. If the situation of McDonalds is considered, it has to be said that it is a profit making organization and the Company also have to fight against the intense competition from other fast food retailers as well (Grachev Rakitsky, 2013). Customer servicing is one of the major criterion that they have to perform in order to boost their sales and dominate the market. As stated by Lawter, Kopelman and Prottas, (2015), for a non-profit organization, the managerial responsibility remains to reduce the costs and expenses of the organization because not much is gained from the business activities or operations. Therefore, coming up with certain motivational schemes that include huge expenses levied on the employees will automatically increase the expenses of the non-profit organization. This might result in high payoff for the particular organization. As commented by Grbz, ?ahin and Kksal, (2014), that one of the most important work from the managerial perspective is to minimize the cost of the particular agency and move towards better benefits and increase the profitability of the particular organization. In case, if the non-profit organization, Spastic Centre adopts the motivational techniques as adopted by McDonalds, there remains a greater chance that the Company has to suffer monetarily. In this respect, Wery and Thomson, (2013) commented that pe rformance based pay and behavior oriented schemes are important in an organization to follow in order to boost the performance of the employees in an organization. However, the application of the major attractive and motivation al schemes are largely depended on the type of organization and the needs of the organization (Graves, Sarkis Zhu, 2013). With the analysis, it can be said that for every organization, motivating the employees is indeed very important and it is only by the means of motivating the employees, there remains better chances of increasing the productivity of the organization (Grbz, ?ahin Kksal, (2014)). However, it has to be understood that there remains a huge difference between a profit and non-profit organization. As it has been evident that McDonalds business largely focuses on increasing its profit margin and thus, expenses made on the employees fall under needs of the organization but for a non-profit organization, including monetary expenses for motivating the employees is not feasible at all. Conclusion: A detailed analysis had been done on the understanding of motivational factors that an Organization undertakes to motivate the employees. The case study on McDonalds has been taken into consideration for understanding the important factors that motivate the employees of the Organization. A number of motivational theories have been discussed as well to understand the theoretical perspective of the motivational factors. It has been observed that McDonalds has been utilizing a number of motivational factors either by the means of providing incentives or by recognizing the employees. If the same situation is considered in case of a non-profit organization, it can be said that the motivational factors might differ because providing money to the employees might not be feasible for the particular organization. References: Aitken, H. G. (2014).Scientific Management in Action: Taylorism at Watertown Arsenal, 1908-1915. Princeton University Press. Band, G., Shah, N. 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