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Revised - BS > Human Resources Case Studies > Flashcards

Human Resources Case Studies Flashcards

1
Q

strategic role of human resources

A

MCDONALD’S

McDonald’s directly employs approximately 200 000 people; however, accounting for employees under franchisees, the figure rises to 2 million

Since 95% of McDonald’s restaurant are under the ownership of franchises, a coherent, company-wide approach towards human resource is difficult

A McDonald’s booklet called Standards of Business Conduct – The Promise of the Golden Arches sets out the standards and expectations of employees

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2
Q

outsourcing
- human resource functions
- using contractors – domestic, global

A

APPLE

  • Foxconn is the largest electronics manufacturer in the world, producing 40% of all electronic goods
  • Approximately 50% of Foxconn’s annual revenue is generated from the production of Apple products
  • Media attention began in 2009 when an employee was reportedly beaten to death by factory guards after losing an iPhone prototype
  • Foxconn factories are rife with suicides, riots, and strikes
  • In 2012, Apple commissioned an audit on the working conditions at Foxconn factories
  • In 2013, the Fair Labor Association also commissioned an in-depth investigation into Foxconn factories
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3
Q

stakeholders – employers, employees, employer associations, unions, government organisations, society

A

MCDONALD’S

McDonald’s employs 7% of restaurant and cafe workers
Spending AUD 1.5 billion annually on wages
In October 2021, McDonald’s Australia announced a recruitment drive, seeking to add 11 000 individuals to the workforce

McDonald’s Australia is a member of The Franchise Council of Australia (FCA), who represent franchisors, franchisees, and suppliers
McDonald’s Australia is a member of the Australian Industry Group (AiG), an employer association promoting members’ views

McDonald’s employees belong to Shop, Distributive & Allied Employees’ Association (SDA) and the Retail and Fast Food Workers Union (RAFFWU)

During the COVID-19 pandemic, the Federal Government implemented he JobKeeper package, which enabled businesses who experienced an 30+% decline in revenue to access $750 per week for eligible employees – McDonald’s franchisees were entitled to such privileges

Responsible Student Employment Policy restricts the working hours of school students

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4
Q

legal – the current legal framework

A

MCDONALD’S

Employees at McDonald’s Australia worked under the McDonald’s Australia Enterprise Agreement 2013; however, in 2019, Xzavier Kelly represened by the Retail and Fast Food Workers Union (RAFFWU) took the case to FWC, winning the case and McDonald’s employees to be employed under the Fast Food Industry Award, making the McDonald’s Australia Enterprise Agreement 2013 obsolete

The Lost Time Injury Frequency Rate (LTIFR) is a metric of hours lost to injury per million worked hours. The goal is to have less than 8.5 hours lost per million

McDonald’s has a partnership with Job Centre Australia, running a program called Golden Opportunities which aims to place job seekers with a disability into employment with McDonald’s

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5
Q

economic

A

APPLE

  • Internal surveys have indicated a high level of dissatisfaction level within Apple’s employees
    The growth of the Chinese economy has increased demand for workers
  • Apple allowed employees to work from home as a response to the pandemic
  • In a petition letter, Apple employees asked the company to allow employees to work from home on a full time basis – Apple agreed to let employees work from home 2 days a week with exceptions
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6
Q

technological

A

APPLE

A Foxconn factory reported reducing its number of employees from 110,000 to 50,000 with the introduction of robotics. Considerable cost savings were achieved by the company, which has publicly announced plans to invest heavily in such technology in the near future

MCDONALD’S

McDonald’s employees use Metime or myJob – online platforms for rostering, paying, and training
The human resources has been influenced by technology, reducing staff numbers and/or work hours
- Self-service kiosks and MyMaccas app
- Automated drink machines
- Voice recognition and machine learning for Drive-Thrus

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7
Q

social – changing work patterns, living standards

A

MCDONALD’S

  • McDonald’s offers eighteen weeks paid parental leave for company employees
  • Parents are offered discounted child care and designated breast-feeding rooms
  • Employees have the option to gain an additional 4 weeks leave annually by reducing their pay
  • In the US, a major campaign called Fight for $15 calls for the minimum wage to be set at USD 15 per hour –> response to fast-food industry
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8
Q

ethics and corporate social responsibility

A

APPLE

  • Foxconn has been bombarded with allegations of unethical business practices, with the emphasis on underaged labour and a string of employee suicides

Apple’s Supplier Responsibility Progress Report revealed:
- “Ten Chinese factories that had hired workers under the age of 16 years, the minimum age for employment in China”
- Poor working conditions resulting in a string of suicides within Foxconn factories

As the poor working conditions are within Foxconn factories as opposed to Apple’s facilities, Apple avoids blame as they are associated indirectly

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9
Q

acquisition

A

MCDONALD’S

McDonald’s United States uses a centralised approach to staff acquisition with potential applicants submitting details through one central website

McHire is a recruiting platform that gathers preliminary information on candidates

AI has been incorporated into the process

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10
Q

development

A

MCDONALD’S

McDonald’s Australia spends AUD 40 million annually on training

Prior to the first shift at McDonald’s, employees must complete an induction program

McDonald’s Australia has a clearly-defined pathway of progression for employees, supported by structured on-the-job training

Hamburger University

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11
Q

maintenance

A

APPLE

  • Apple established an initiative called “Blue Sky”, which allows a small group of staffers to spend a few weeks on a pet engineering project – sparking innovation and creativity
  • Apple CEO, Tim Cook has signalled that he is open to letting employees take sabbaticals
  • Apple lists its stock grants by monetary value as opposed to the quantity, making offers appear more generous
  • Apple’s salaries are in line with other large technology companies
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12
Q

separation

A

APPLE

  • In 2004, Apple outsourced operations to partners in China, leading to the retrenchment of hundreds of employees in the USA
  • In 2008, in response to the Global Financial Crisis, Apple reduced its full-time retail employees by 1 600
  • In 2014, Apple acquired Beats Electronics for USD 3 billion, making 200 Beats employees redundant in overlapping positions
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13
Q

leadership style

A

MCDONALD’S

  • Complaints have been made over corporate management decisions – increasing store rent, running promotions, and changing menu items
  • McDonald’s maintains that the business works closely with franchisee

Ronald McDonald was an idea from a franchisee

  • McDonald’s hierarchical structure is very structured with a defined chain of command, consistent with autocratic leadership
  • This autocratic leadership style allows for consistency and uniformity
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14
Q

job design – general or specific tasks

A

MCDONALD’S

McDonald’s employees have specific tasks with little or no scope for change

The task-oriented job design sprouts from the Speedee System –> consistency, efficiency, and uniformity

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15
Q

recruitment – internal or external, general or specific skills

A

MCDONALD’S

  • McDonald’s employees tend to start as crew members and are recruited externally
  • A central application process makes the recruitment process efficient and streamlined for local managers, and consistent online screening of applicants can help ensure that new recruits fit McDonald’s requirements

Managers have more specific skills
McDonald’s also recruit for corporate jobs directly from the external environment

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16
Q

training and development – current or future skills

A

APPLE

Foxconn - lack of training and quality control issues. Media reports indicated that Apple returned 5 million+ iPhones to Foxconn in 2013 due to some kind of unnamed defect, with a reported cost to Foxconn of $1.6bn to cover the cost of making replacement handsets

17
Q

performance management – developmental or administrative

A

APPLE

Employees were judged on the number of accessories they can add to the sale of a core product; employees are being told to direct customers to buy accessories through the EasyPay system but those sales are credited to the store and not the employee, which in turn affects the worker’s job rating

18
Q

rewards – monetary and non-monetary, individual or group, performance pay

A

APPLE

  • Apple released its Employee Stock Plan that permits the granting of incentive stock options, stock purchase rights, and performance-based awards
  • By rewarding employees with stock, it further emphasises the efforts of employees directly contribute to the business’ success
19
Q

global – costs, skills, supply

A

APPLE

  • Apple could reduce the cost of production by outsourcing operations to partners, such as Foxconn
  • Apple has adopted a “China-plus-one” strategy aiming to reduce its dependence on China where 90% of Apple products are current manufacturing
  • Wages in China has doubled in the past decade
20
Q

workplace disputes

A

MCDONALD’S

  • McDonald’s has clear employee grievance procedures set out in the Standards of Business Conduct – The Promise of the Golden Arches booklet
  • In recent years, the Fair Work Commission is the dispute resolution method of choice for both McDonald’s Australia (usually represent by employer group AiG) and employees (represented by unions)
21
Q

Apple - indicators

A
  • Apple’s corporate culture is shaped by a history of innovation
  • The annual retention rate for individuals that work behind the Genius Bar is 90%, which is unheard-of in the retail industry
  • The demands of Apple places Foxconn and its employees under intense pressure, resulting in high incidence of disputes, turnover and suicides
  • 137 employees at an an Apple supplier were injured after they were ordered to use a poisonous chemical to clean iPhone screens
    Foxconn employees regularly strike over the working conditions and pay
22
Q

McDonald’s - indicators

A

5% of Australia’s population has worked for McDonald’s

Data from surveys
- 95% of employees in Australia believe working at McDonald’s helped them succeed in life
- More than 80% of employees feel they’re receiving training that equips them for a career
- McDonald’s Australia was selected as an Employer of Choice in the Australian Business Awards for 4 consecutive years – 2018, 2019, 2020 and 2021

Revised - BS (12 decks)

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