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McDonald’s International Practices and Diversity

The inclusion of diversity in the strategic management of human resources carves the success of companies operating in the international market. McDonald’s, a company that gained global recognition, has firm conviction in the value proposition of “diversity is inclusion” in its business practices (“Global Diversity, Inclusion, & Community Engagement”). According to the article, the company considers individual characteristics in terms of culture, experiences, identity, preferences, and values. Furthermore, the organization aims to cultivate community engagement, provide education and training opportunities to staff, and maintain employee business networks (“Global Diversity, Inclusion, & Community Engagement”). Thus, the inclusion of diversity considerations in McDonald’s international business practices consequently guaranteed the organization’s market dominance in the food chain sector.

McDonald’s acknowledge threats surrounding its business venture. With the approximately 420,000 employees of the organization as of the end of 2015, talent management poses a major risk (United States Securities and Exchange Commission). The institution indicates that McDonald’s capacity to recruit and retain the exceptionally-qualified personnel to work in the restaurants influences the firm’s progress. Workforce intelligence planning, described as correlating an organization’s needs to the number of employees in excellent competencies for the job description in the appropriate place and time (Scully et al. 139), is clearly exhibited by McDonald’s. According to the United States Securities and Exchange Commission, McDonald’s Corporation ensures compliance to the regulations of both the U.S. and international communities in terms of employment concerns relative to benefits, healthcare, wages, time of duty, safety protocols in work environments, immigration, retirement, and unlawful discrimination in the work stations. To possibly hire the most competent employees, McDonald’s may utilize the recruitment activities as emphasized by Woods et al. such as identifying the recruitment objectives (individual’s qualifications corresponding to the job description), developing the strategy (who/where to hire, what/how to communicate the need for personnel), and recruitment activities (who will conduct the recruitment process, how to attract possible employees, and promotional materials).

McDonald’s ensure that its employees’ capabilities are at par with the other international food chain industries. According to Mujtaba, the organization’s leaders perceive people as the most worthwhile resource in their quest to compete in the national and international arena of the fast food industry (55). As such, the author emphasizes the firm’s active involvement in investing for its employees’ growth, development, and job contentment. The article accentuates McDonald’s provision of employment to an immense number of minority groups in the U.S. (about 40% of owners/operators are categorized as minorities/women) and other countries (approximately 29.3% of McDonald’s workforce are Hispanics, of which 18% are restaurant managers) (55-56). Furthermore, the author reiterates McDonald’s sentiment in supporting staff progress through education, which include scholarship grants in collaboration with a national university (Argentina), free advanced education in business courses (HK), and monetary assistance amounting to $1,800 to each employee involved in sports, fine arts, trainings, and education (UK) (55). Employees are guaranteed with educational opportunities by the corporation’s management to facilitate enhanced competency.

McDonald’s also critically acknowledge cross-cultural variations where it operates business. One of the primary objectives of the company is to predict and respond to the emerging disparity in consumer preferences and demographics, global food trends, and food preparation techniques (United States Securities and Exchange Commission). The responsibility of the international Human Resource Management (HRM) comes into play and is highlighted when a company engages in global market ventures. According to Mujtaba, international HRM reinforce a headquarters’ comprehension and learning of the new market’s diverse culture (57). The extensive inquiry on a new nation’s culture with respect to food preference helped McDonald’s penetrate the food chain market of countries such as China (first international country infiltrated by the company where huge amount was invested in research) and India (the highest recorded revenue for McDonald’s in an international community) (Mujtaba 57). According to Shah and Mujtaba, McDonald’s adopted Indian culture in food preparation by offering food highly-demanded by the vegetarian citizens and removing beef and pork recipes from its cuisine (34). Adaptation to various cultures of distinct countries in terms of employee relations and food preparation has been a prime consideration for McDonald’s to maintain the diversity in its international practices.

Works Cited

“Global Diversity, Inclusion, & Community Engagement.” McDonald’s.com, https://corporate.mcdonalds.com/corpmcd/about-us/diversity-and-inclusion.html. Accessed 1 April 2019.

Mujtaba, Bahaudin G. ““McDonald's Success Strategy and Global Expansion Through Customer and Brand Loyalty.” Journal of Business Case Studies, vol. 3, no. 3, 2007, https://www.researchgate.net/publication/228490432_McDonald's_Success_Strategy_And_Global_Expansion_Through_Customer_And_Brand_Loyalty. Accessed 1 April 2019.

Scully, J. et al. Human Resource Management: Strategic and International Perspectives. Eds. Crawshaw, Jonathan R. et al. Sage, 2017. https://books.google.com.ph/books?id=4rw3DgAAQBAJ&pg=PA136&lpg=PA136&dq=Scully.+Work+Intelligence+Planning.+Chapter+6&source=bl&ots=za9ffMF9c_&sig=ACfU3U1Uc_vgGhJvpDLMnWQ2ZQ_KuRguNQ&hl=en&sa=X&ved=2ahUKEwittJyQ-K7hAhWlmuYKHY8WCr8Q6AEwAXoECAgQAQ#v=onepage&q=Scully.%20Work%20Intelligence%20Planning.%20Chapter%206&f=false

Shah, Shrabanee, and Bahaudin G. Mujtaba. “Contemplations for Opening the First McDonald’s Restaurant Franchise in the IT Capital of India’s Bangalore.” International Journal of Marketing Practices, vol. 3, no. 2, 33-46, http://www.onlinesciencepublishing.com/assets/journal/JOU0021/ART00084/1478323141_IJMP-2016-3(2)-33-46.pdf. Accessed 1 April 2019.

United States Securities and Exchange Commission. “McDonald’s Corporation.” sec.gov, https://www.sec.gov/Archives/edgar/data/63908/000006390816000103/mcd1231201510k.pdf. Accessed 1 April 2019.

Woods, Stephen A. et al. Human Resource Management: Strategic and International Perspectives. Eds. Crawshaw, Jonathan R. et al. Sage, 2017. https://books.google.com.ph/books?id=gF8CDgAAQBAJ&pg=PT263&lpg=PT263&dq=Recruitment+and+Selection+Stephen+A.+Woods,+Lara+D.+Zibarras+and+Daniel+P.+Hinton.+Chapter+7&source=bl&ots=TdtWOx9kEa&sig=ACfU3U34M8uUwmyOUtebqm-IxsxIZe8UDw&hl=en&sa=X&ved=2ahUKEwimzMKtia7hAhUHvY8KHaaJDIEQ6AEwAXoECAgQAQ#v=onepage&q=Recruitment%20and%20Selection%20Stephen%20A.%20Woods%2C%20Lara%20D.%20Zibarras%20and%20Daniel%20P.%20Hinton.%20Chapter%207&f=false