Unit 21 HRM
Unit 21 HRM
SOURC
ANAGE
ENT
gle INC. &
Donald’s
Contents
Task 1: Google Inc. Human resource management.....................................................................................2
1.1. Difference between Personnel management and HRM in Google Inc.............................................2
1.2. Contribution of HRM of Google Inc. to organizational purpose.......................................................3
1.3. Contribution of Line management in Google Inc. to its HRM..........................................................4
1.4. Google Workforce under Sex Discrimination Act 1995/97 and Race Amendment Act 2000...........5
2.1. Reasons for human resource planning in McDonald’s and Google Inc.................................................6
2.2. Stages in Human resource planning in McDonald’s and Google Inc.....................................................7
2.3. Recruitment and selection processes in McDonald’s and Google Inc...................................................8
2.4. Effectiveness of recruitment and selection processes in McDonald’s and Google Inc..........................9
3.1. Reward System at McDonald’s in relation to motivational theories...................................................10
Herzberg hygiene factor theory.............................................................................................................10
McClelland theory of needs...................................................................................................................11
McDonalds reward system....................................................................................................................11
3.2. Contribution of Job evaluation in pay system at McDonald’s.............................................................11
Job Evaluation........................................................................................................................................11
Significance of job evaluation in an organization..................................................................................11
Role of Job Evaluation in pay system of employees at McDonalds.......................................................12
3.3. Effectiveness of Reward systems at McDonald’s................................................................................12
3.4. Monitoring of employee performance at McDonalds........................................................................13
4.1. Reasons for cessation of employment in McDonald’s and Google Inc...............................................15
4.2. Employment exit procedures used by management of McDonald’s and Google Inc.........................16
4.3. Impact of legal and regulatory framework on employment cessation arrangements within
McDonald’s and Google Inc.......................................................................................................................18
References.................................................................................................................................................21
1
Task 1: Google Inc. Human resource management
The management for hiring and maintenance of satisfied workforce at an organization refers to
personnel management. It involves planning, organization, integration, compensation and
maintenance of people at workplace[ CITATION Sha04 \l 1033 ]. This area of management is
specifically concerned with workforce and its relationship within an organization.
Google Inc. has employed a unique technique of HR management i.e. “People analytics” which
helps it to manage most effective workforce among all companies worldwide. The personnel and
human resource management of Google Inc. has several differences. Each segment plays a
different and significant role in effective management of workers and operations. The major
differences are explained as follows:
Google Inc.
Personnel Management Human Resource Management
Personnel management of Google Inc. is HRM of Google Inc. has a major focus on
concerned with the relationship of workers effective use of human resources for
with the organization. accomplishment of organizational
goals[ CITATION Haj10 \l 1033 ].
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Approach
It follows traditional approaches for It follows modern approaches for effective
management of workforce at Google Inc. and efficient management of workforce.
[ CITATION Abh17 \l 1033 ].
Function Type
It deals with routine function for management It deals with strategic function of workforce
of workforce including daily performances to establish and implement policies and
procedures for healthy workers management.
Remuneration Basis
The personnel management function focuses HRM function put major focus on
on job evaluation for rewards and performance evaluation of workers to
remuneration. reimburse them in long run[ CITATION Maj12 \l
1033 ].
Focus
It has primary focus on mundane activities It treats workforce as a resource of Google
like hiring of effective workers, Inc. to develop them for accomplishment of
reimbursement process, training etc. goals like free access to information
[ CITATION Haj10 \l 1033 ]. worldwide.
Strategic capabilities
HRM function of Google Inc. has specific features such as technological capabilities, innovative
design and effective training processes to keep workers motivated. It led to the success of overall
functions of Google Inc.[ CITATION Abh17 \l 1033 ]. Which helped in achievement of its mission
and objectives to provide access to user towards vast information on one click.
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HRM function of Google Inc. has been playing a direct and significant role in its success. The
company has maintained an innovative work culture which drives commitment among
workforce. The key features of innovative culture of Google Inc. has played a significant role in
its attainment of 2nd place. These features include
It is a direct manager who is responsible for management of employees and other operations at
workplace[ CITATION Sha04 \l 1033 ]. Line manager deals with lower management and report to
upper management about performance of workers and accomplishment of tasks.
A line manager is responsible for wide range of duties and responsibilities. He has to manage
recruitment and hiring process of employees and training sessions as well[ CITATION Maj12 \l 1033
]. Coaching, performance feedback and establishment of quality standards is also responsibility
of line manager at an organizational culture.
Google Inc. is a highly successful and well known organization who has managed a strong and
intact hierarchy of line and high ranking managers. Line managers of Google Inc. have been an
important factor in its long term success. Line manager at Google Inc. have established a culture
of innovation and ideas from sub-ordinates are welcomed. It has led to new and innovative ideas
which not only reduced organizational costs but also helped in providing high quality services to
users worldwide[ CITATION Abh17 \l 1033 ]. Line managers at Google Inc. have been playing a
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direct role in improving efficiency of HR function. It has led to improved performance of
workers and quick operations for facilitation of users.
Google Inc. has implemented this act to protect equality between workforce on gender and
designation basis. The act is concerned regarding employment, education, training, harassment
and provision of goods and services of employees. The line managers of Google Inc. ensure that
the act is implemented properly and its provisions are taken into account to protect right of
employees without any discrimination[ CITATION Equ17 \l 1033 ].
In order to take into account the equality concerns of workers, the management of Google Inc.
has adopted this act to mitigate inequality among workforce for race discrimination[ CITATION
the11 \l 1033 ]. HR function of Google Inc. has established processes to trace measures taken for
successful implementation of race act to avoid direct or indirect victimization of workers due to
their race, ethnicity or creed. Due to race equality and gender empowerment to all workers,
Google Inc. has established a trained and loyal work force.
5
2.1. Reasons for human resource planning in McDonald’s and Google
Inc.
Human resource management is one of the integral functions for effective operations of any
organization. It helps in management of employees and workers to control and direct their
performances to achieve organizational goals and objectives. Different organizations have
different size of human resource management department and budget[ CITATION Sha04 \l 1033 ].
The HRM planning is essential to keep the activities of an organization on track regarding hiring,
evaluation and management of workers. The reasons for HRM planning of McDonald’s and
Google Inc. have stated as follows:
McDonald’s
The reasons for HRM planning at McDonalds is to manage its workers effectively to use their
skills for serving customers. The core reasons for management and planning of HRM of
McDonald’s include:
Selection and hiring of right kind of employees for the fast food chain
Planning for use of available resources for benefit of the organization [ CITATION HRM17 \l
1033 ]
To figure out strategies how to attract and retain talented employees in long term
To shape all functions of the fast food chain as workers are bloodline of the whole
organization
To align improvement, growth and development of the organization in short and long
term.
Google Inc.
It is one of the leading companies worldwide who has hired workers from all over the world.
Google Inc. has gained immense success in market due to its innovative employees. The human
resource management function of this company has immense importance in its functioning. The
HR planning of Google Inc. plays a direct role in effective operations of its all
functions[ CITATION uHy14 \l 1033 ]. Google Inc. has capitalized its human resources. HR planning
serves the core purpose to attract and retain talented and innovative people in long term. It is
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necessary to keep on hunting for employees with new and innovative ideas to maintain
competitive advantage of the company in market.
McDonald’s
Each stage of HR planning has is equally important for effective functioning of whole
organization. The first stage involves analyzing the objectives of an organization which need to
be fulfilled. The objective of an organization relate to production, marketing, sales, finance and
various other functions. The second stage involves the complete analysis of presently available
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employees including their qualifications, experience and abilities. Third stage involves short and
long term forecast of human resource available for the company[ CITATION Mot11 \l 1033 ]. It
involves demand and supply of required workers in market. Fourth stage is concerned with
forecasting the manpower gaps in market regarding supply and demand of workers. Fifth stage
deals with formulation of an effective HR plan to deal with deficit or surplus of human resource
in an organization. Sixth and last stage deals with monitoring, control and feedback to be taken
for human resource.
Google Inc.
The HR planning of Google Inc. is a detailed process which involves major focus on
management of human resources available for the organization. Google Inc. depend on its
employees for its management and new ideas. It believes that an organization majorly depends
on effective management of its employees[ CITATION uHy14 \l 1033 ]. The major stages of HR
planning of Google Inc. comprises of same stages of McDonald’s. It has major focus on
forecasting, supply and demand balance and supply shortage of employees at the organization.
Rest of the processes involved in HR planning are same like McDonald’s.
McDonald’s
The recruitment and selection processes involved in hiring process of McDonalds include several
stages. The processes include:
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Sourcing of candidates to hunt suitable candidates in response of job advertisement from
the company
Tracking of candidates in order to review their resumes and applications. It helps in
finding out suitable candidates for interview purpose[ CITATION HRM17 \l 1033 ].
The shortlisted candidates are selected for interviews. Multiple interviews are conducted
including face to face interview, telephonic interview and other types of interviews as per
ease of managers and candidates.
After employees are able to pass all above stages, they are offered jobs.
Google Inc.
The recruitment and selection procedures are almost same in all kind of organizations except few
more processes which are required to be added. Google Inc. hire workers on the basis of their
intellectual level and progressive ideas. The recruitment and selection processes involved include
all stages mentioned in case of McDonalds, except it has few more processes. The IQ level of
employees is checked through several tests and quiz[CITATION Goo16 \l 1033 ]. The tests include
personality tests, IQ level tests and educational tests. These tests help in selection of highly
compatible employees. They are also provided with hypothetical situations in order to provide a
quality solution. This way workers are selected who later contribute in development of the
organization with innovative and different ideas.
McDonald’s
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have been able to serve worldwide customers leading to higher satisfaction level and loyalty by
consumers in long term[ CITATION HRM17 \l 1033 ].
It has resulted in decline in law suits and legal actions from customers due to mistakes
committed by workers. McDonald’s conducted annual training sessions for employees in order
to keep them motivated and skilled. Due to effective recruitment process, the number of
employee turnover has gone down leading to improved customer service offered by the
company.
Google Inc.
Google Inc. recruitment and effective selection procedures have helped in choosing workers with
innovative and new ideas. The company keeps on investing in its employee development. Due
to effective recruitment, the talent selection and investment process pays back to the company in
the form of its effective operations and constantly highest ranking among all companies
worldwide[ CITATION Goo16 \l 1033 ]. It has also resulted in high morale among workers and to
keep them engaged and committed to the company in long term. Effective recruitment process
has acted as a milestone in success of Google Inc.
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McClelland theory of needs
It is concerned with the core needs of humans which they want to be fulfilled. David McClelland
removed extra hierarchies from the Maslow’s hierarchy of needs to present the most important
needs of employees. He stated that human are concerned for “need of achievement” “need of
affiliation” and “need of power”.
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Role of Job Evaluation in pay system of employees at McDonalds
McDonalds have established a distinct job evaluation system which has been contributing in
establishment of its pay system. The pay system of McDonalds includes bonuses, perquisites and
commissions on the basis of their performance. Besides this, the pay system at McDonalds have
been established after taking into account job descriptions and responsibilities associated with
each job. The salaries and bonuses associated with each job have been taken into account
properly to keep employees satisfied and fulfilled. Workers are compensated for their
performances which keep them satisfied and motivated and increase their loyalty with the fast
food chain.
Loyalty
The reward system of McDonalds has resulted in increased loyalty of employees due to their
enhanced satisfaction level[ CITATION Rob151 \l 1033 ]. Employees show enhanced loyalty for the
organizational goals of McDonalds due to their fulfilled concerns and interests.
Performance
Due to effective reward system of McDonalds the satisfaction level of employees have enhanced
leading to improved performance level[ CITATION Dan03 \l 1033 ]. The effective performance of
workers led to enhanced customer satisfaction which led to improve in turnover of fast food
chain worldwide.
Commitment
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Workers feel committed to work in case they are offered high compensation and reimbursed for
their efforts properly. They show high level of commitment as a result of high reward and
satisfactory pay system.
Observation
Workers are observed for their performances in all branches of McDonalds under direct and
unbiased supervision of managers and assistant managers[ CITATION Maj12 \l 1033 ]. Employees
are observed for their abilities and contributions and how they serve customers. The process of
observation is helpful in evaluating the performance of workers to reward them accordingly.
Self-monitoring tools
It is a latest trend in evaluation of performance of employees at work place. This type of self-
evaluation helps employees to find out the level of their performance. Self-monitoring tools
include rating scales, checklists and frequency counts[ CITATION Sha04 \l 1033 ]. McDonald
management has used rating scales and checklists to help employees to find out whether their
performance is up to mark or not.
Performance appraisal
Employees are evaluated and monitored through performance appraisal process. The
performance of employees is measured by tracking the results of their input. Employees are
encouraged to participate in performance appraisal processes[ CITATION Rob151 \l 1033 ].
McDonald management has set up several employee performance appraisal processes on annual
and semi-annual basis. Employees are rewarded on the basis of their performance appraisal on
yearly basis.
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Client survey
Customer opinion and client surveys are one of the effective ways of employee performance
monitoring at McDonald. Customers are welcomed to share their opinion regarding performance
of employees of McDonalds who are directly involved in customer services[ CITATION Den14 \l
1033 ]. Employee performance is evaluated in the light of feedback provided by the fast food
chain customers.
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4.1. Reasons for cessation of employment in McDonald’s and Google
Inc.
Employee termination is normal process in any organization. Workers come join and leave
organizations at a point. The cessation of employment can be voluntary or involuntary.
Voluntary cessation may include quitting employees because they get better job options or get
retired after completing their period. Involuntary cessation may cause due to poor performance
of workers or any other legal or policy breach which may declare an employee incompatible for
working position. Termination in different organization occur due to different reasons.
These reasons include employment at will, termination for cause and mutual termination.
Employment at Will
This type of termination involves cessation of job with or without cause. In this case employer is
not answerable to employee for the reason of firing them. Employers are required to keep
complete termination documentation in order to avoid any legal action from employees[ CITATION
KCh02 \l 1033 ]. Paper trail is essential to ensure that employees don’t file suit against employers.
In this instance, an employee is terminated due to a valid reason for breach of a company’s
policy or procedure[ CITATION Ter13 \l 1033 ]. The employment is terminated after taking into
account the mistakes or breaches committed by employees. The termination for cause may
include several reasons including:
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Mutual termination
This type of termination is a mutual agreement between employee and employer. In this
situation, employees show mutual consent for the cessation of a job. Both parties mutually agree
to the terms and conditions of parting ways[ CITATION KCh02 \l 1033 ]. This termination approach
involves safe exit strategy. In this case both the employee and the job are unwanted for each
other.
McDonald’s
The workers of McDonald’s follow strict organizational policies and procedures. They are
required to follow code of conduct. In case of any breach of policy or procedures, McDonald’s
management issue warning letters to employees and then cease their jobs. Different types of job
cessation reasons are chosen by HR management of McDonald’s.
McDonald’s opt different ways of job cessation for workers depending on different situations. In
case workers choose different options, they are terminated through different options. In each
termination option, workers are provided safe exit strategies[ CITATION Saf07 \l 1033 ].
Google Inc.
Google Inc. hunt workers from all over the world. Employees are hired after taking into account
complete analysis and through long term recruitment procedures. Workers are terminated due to
several reasons but in each case direction termination is not opted. Termination with mutual
consent is the most prevalent option at Google Inc. It is very rare that workers find their jobs at
Google unwanted and leave their jobs[ CITATION Arn01 \l 1033 ]. Rarely Google has fired its
employees. This year Google has fired an engineer for its intimidating memo to a peer over
challenging for giant diversity efforts[ CITATION Dan172 \l 1033 ]. Google Inc. has devised suitable
exit strategies to be followed in case workers want to switch their jobs or they are no more
required.
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4.2. Employment exit procedures used by management of McDonald’s
and Google Inc.
Employment exit procedures are used to ensure safe termination of employees at work place. A
number of tasks are required to be performed in order to ensure that employees are terminated
safely without any legal issue. The exist procedure ensures that workers take release from an
organization[ CITATION Arn01 \l 1033 ]. The exist procedures include a closure meeting with
employee, removal of access to all physical and virtual assets of the company and withdrawal of
all data records on behalf of employee.
Exit interview:
Employees are welcomed to take part into exit interview to share their concerns and grievances
over policies and procedures of the company. They share their work experience and what
problems and obstacles they faced while working for the company. Employees feel free to share
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their thoughts and opinion due to lack of any fear for managers or supervisors due to job
termination[ CITATION Arn01 \l 1033 ]. It helps management of a company to focus on those areas
and provide better working conditions for other employees.
Record retention
Closure meeting
A closure meeting is conducted in case employee has terminated job with mutual consent. It
helps in a farewell meetup and also adds to the goodwill of a company among other workers. It
leads to increasing morale of other workers that they are valuable for their company.
McDonald’s
McDonald’s HR function has chosen quality exit procedures to ensure that their workers take
suitable termination strategy[ CITATION McD17 \l 1033 ]. It helps in retaining goodwill of the fast
food chain. Employees are offered safe closure and compensation in case they are offered early
termination from jobs.
Google Inc.
Google Inc. has also devised suitable and compatible exit procedures for employees to ensure
that employees feel valuable and worth[ CITATION Abh17 \l 1033 ]. The core agenda of Google Inc.
is to retain good workers who have formed the foundation of the world’s highest ranking
company. Suitable exit procedures have helped in retaining employees in long term at Google
Inc.
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4.3. Impact of legal and regulatory framework on employment cessation
arrangements within McDonald’s and Google Inc.
Legal and regulatory procedures have a direct impact on employee cessation procedures. These
frameworks bind companies that they employ suitable policies to ensure safe exit for workers.
The legal and regulatory framework require companies to take into account all steps for safe exit
of employees including documentation and exit interviews[ CITATION Ter13 \l 1033 ]. In case legal
frameworks are not followed, employees may file suit against an organization for uninformed or
unjustified removal.
McDonald’s
The fast food chain has implemented legal and regulatory frameworks for safe cessation of
employees. McDonald’s opt different ways of job cessation for workers depending on different
situations[ CITATION Dan03 \l 1033 ]. In case workers choose different options, they are terminated
through different options. In each termination option, workers are provided safe exit strategies.
Google Inc.
Google has devised suitable legal and regulatory framework to ensure safe exit of employees.
Employees are hired after taking into account complete analysis and through long term
recruitment procedures. Workers are terminated due to several reasons but in each case direction
termination is not opted[ CITATION Abh17 \l 1033 ]. Termination with mutual consent is the most
prevalent option at Google Inc. It is very rare that workers find their jobs at Google unwanted
and leave their jobs. Rarely Google has fired its employees.
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