Influence of Employment Regulations and Laws on McDonald's HR Management Functions and Decisions
Please write a paper based on your prior research about MacDonald's. Please keep the paper simple. THANKS!
Research journal articles and other sources about your research topic using the databases and websites listed in the syllabus.
2.After implementing suggestions the Professor has made on your rough draft, submit a Final Draft for the Professor’s final review. The final draft should include the required headings and page lengths. Submit it to the Blackboard class by Midnight (PST) on Sunday, February 21.
3.The format of the Final Draft should be in APA format, 6th edition. APA 6th Edition guideline is located in the weekly reading tab in Blackboard. .
Research Paper Guideline:
Each student will prepare a research paper that studies the laws and regulations that directly influence human resources management functions and decisions of a U.S. corporation. Students are required to select one company and analyze and identify its legal challenges and issues relating to employment relationship or employment discrimination or employment regulation.
Provide a comprehensive analysis of:
•What are the major employment law issues the company faces.
•How the company understands the legal environment that impacts HR functions.
•How the company resolves its legal employment issues.
•How the company realizes emerging challenges in the areas of employment law.
•How the company utilizes strategies to create and maintain a healthy business environment .
The research paper should contain the following headings:
1.Introduction.
2.Overview of the company.
3.Analysis of the state of the company’s legal issues in HRM Future Recommendation a.What are the major employment law issues the company faces.
b.How the company understands the legal environment that impacts HR functions.
c.How the company resolves its employment law issues.
d.How the company realizes emerging challenges in the areas of employment law.
e.How the company utilizes strategies to create and maintain a healthy business environment.
4.Future Recommendation.
5.Conclusion.
6.References .
Research Paper Requirement:
•The research paper should be 10-12 pages in length, excluding a title and reference page..
•The paper must be in APA 6th edition format, including a title page and.
•reference page, double-spaced, and using Times New Roman size 12 font. All references must be cited properly. You can use the Online Writing Lab (OWL) website, https://owl(dot)english(dot)purdue(dot)edu/owl/
•The paper must be comprised of at least six (6) scholarly sources that relate to your topic. These sources will most likely be journal articles from the online library databases You can also use the textbook as an additional source..
•The papers must be checked its originality score (close to 0%) with SafeAssign before submission..
•You must submit your final paper through the "Dropbox" button of Blackboard..
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Influence of Employment Regulations and Laws on McDonald’s HR Management Functions and Decisions
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Introduction
McDonald’s has been operating restaurants in many global markets across the world for more than 60 years now. Gudman & Steve (2006) explain that though the corporation has made prominence and large-scale operations across various parts of the world, McDonald's has failed not only to comply with recognized legal frameworks but also has failed to provide high-quality jobs and decent living wages to workers in most countries. Steve & Hazen (2012) highlight that any protests and demonstrations from workers show that McDonald's has adopted a poor employment strategy, becoming an employer of low-wage development and unsafe service jobs around the world. However, Allen (2015) reveals that the corporation has defended its long history track record of success. This paper reviews how employment regulations and laws influence McDonald’s HR management functions and decisions and examines its legal issues and challenges relating to employment relationships.
Overview of the Company
McDonald’s was established during 1940 in California, United States. The company has managed to become of one of the most respected and recognized brands around the world. The firm started as a barbecue restaurant owned by Maurice and Richard McDonald. In 1955, Ray Kroc (businessman) joined the firm as a franchise agent, and thereafter he bought the chain store from the McDonald's brothers and consequently oversaw its global growth (Gudman & Steve, 2006). Kieman (2015) discloses the Corporation has achieved the success that includes having created at least 36,000 stores operating in 119 countries, creating about $15 billion profits every year, and serving at least 68 million customers daily. Sloan (2014) opines that the McDonald’s hires 1.9 million employees, making the corporation the second biggest private-sector employer in the globe.
Analysis of the State of the Company’s Legal Issues
McDonald’s has been facing intense pressures for violating labor laws in its global restaurants. Allegations leveled against McDonald’s concerns breaching federal and state labor legal regulations particularly those dealing with hours of work and wage issues such as overtime pay, rest breaks, minimum wages, and deductions from salary (Steve & Hazen, 2012). In other words, such allegations revolve around wage thief (paying workers peanuts), unfair deductions from workers’ wages (unnecessary deductions not recognized under the federal minimum wage), and refusing to pay overtime compensations. McDonald’s has been negatively affected by lawsuits and protests from employees who demand higher pay (Jameson, 2016). The company has bad public relations regarding paying its workers poorly.
The company encounters several lawsuits regarding many cases of infringement of federal and state labor legal regulations. Jameson (2016) explains that some of these allegations include allegation that the company deny to pay workers overtime pay, denying employees rest breaks, forcing employees to work until late hours, intimidating and firing workers who talk against company’s unfair practices, denying workers the right to involve and take part in trade unions, and imposing unnecessary deductions on employees’ wage.
McDonald’s was recently accused of employment discrimination. In Virginia, former employees (10 black Africans and one Hispanic) filed lawsuits accusing that the company for unfair termination (Jameson, 2016). The former workers alleged that they were fired because the company felt that it had too many black people. McDonald’s faces labor violations at its franchisees, which have been accused of firing workers unfairly and intimidating those who participate in trade union organizations. An estimate of 90% of the McDonald’s restaurants are independently own and operated by franchisees. However, McDonald’s (a joint employer) defends itself arguing that it is not responsible for determining wages at its franchised restaurants.
Concerning work safety, recently McDonald’s encountered workplace safety complaints from employees who claim that they suffered burns and injuries at the workplace. Allen (2015) explains that the employees filed many complaints against 28 franchised restaurants in 19 cities and nine restaurants owned by the corporation accusing the company for hazardous working conditions and for failing to implement basic safety standards.
How the Company Understands the Legal Environment that Impacts HR Function
McDonald’s understands the legal environment that impacts HR functions since it has responsibilities to cater for its employees and customers. The company argues that it is dedicated to living up to high standards of legal frameworks and ethical behaviors. The McDonald's has managers who oversee the corporation’s commitment to compliance with legal frameworks governing business operations in various international countries (Twomey, Jennings, & Greene, 2016). To assist its employees to live up to the business conduct, McDonald's has created the Global Compliance Office, which is tasked with overseeing the corporation’s compliance with legal frameworks and business standards.
The corporation defended itself by claiming that it is dedicated to complying with international laws governing business operations, labor issues, and ethics. The company takes appropriate actions to make certain that it complies with all applicable laws in respective countries where it operates its restaurants (Gudman & Steve, 2006). McDonald’s reveals that it supports and respects fundamental human rights for all employees and anybody else according to applicable regulations and laws. The company argues that its most and first fundamental obligation is to obey the spirit of the law in every place it conducts its business.
Since franchise structures and the locations where the corporation operates are different, employee policies are different. Labor standards also differ across markets and countries where McDonald’s operates; thus, the company uses different approaches to handling employee issues and practices in respective countries (Cihon & Castagnera, 2016). McDonald’s expects its franchisees to share the company’s commitment to observe legal regulations and enforce efficient employment practices (Gudman & Steve, 2006). In this way, franchisees implement and define employee practices in their local-based restaurants.
How the Company Resolves Its Employment Law Issues
McDonald’s is aware that complaints, allegations, and criticisms leveled against it negatively affect the company’s reputation. Employees have held demonstrations and filed lawsuits against the company over the above labor issues. Such reactions taint the company’s image negatively and change the consumer perception towards the company’s products (Sloan, 2014). McDonald’s and its independent franchisees, therefore, are dedicated to investigating the complaints and allegations and take necessary measures to address the issues.
Recently, McDonald’s has made changes in its management practices to resolve employee concerns. First, the company hiked wage pay to solve the minimum pay issue and to address the negative publicity of employee protests (Trumbull, 2015). However, Trumbull (2015) identifies that the wage increase only affected the restaurants which are operated and owned the corporation itself, which are only 10% of the McDonald’s restaurants. This means that employees who work for the franchised restaurants have not received the wage increase. It is, thus, clear that the demand for wage increase has not been solved completely.
Secondly, Sloan (2014) reveals that McDonald’s resolved the issue of anti-union practice by allowing all employees across its stores including franchised restaurants to participate in trade union activities. This is because was against the law for franchised restaurants to deny workers the right for taking part in trade unions (Cihon & Castagnera, 2016). Thirdly, McDonald’s accepted to offer overtime compensations and paid-time off to give employees rest breaks (Trumbull, 2015). The company has also adjusted wages based on the employees’ performance and tenure, meaning that employees who work harder would earn more wages rather than paying their wages on a fixed basis. This is a performance pay structure aimed to motivate employees to work harder. Furthermore, McDonald’s decided to provide employee benefits that include paying for employees to attend classes to pursue the college education and to complete high school diplomas (Cihon & Castagnera, 2016). The benefit was extended to all employees including those who work for the franchised restaurants.
McDonald’s defended itself against the allegations that it does not enforce OSHA (Occupational Safety and Health Administration) safety standards. It argued that it the Corporation and its independent franchisees have always been dedicated to keeping working conditions safe and efficient (Allen, 2015). The company justifies that such complaints are schemes of a bigger strategy organized by individuals targeting its brand.
Lastly, regarding the issue of racial discrimination and unfair termination, McDonald’s responded that it ever since embraces a diversity of workers, suppliers, customers/clients, and independent franchisees (Twomey, Jennings, & Greene, 2016). The company argues that discrimination is entirely inconsistent with its values (Sloan, 2014). McDonald’s and its independent-owned franchisees share a commitment to the fair treatment and wellbeing of all employees.
Recently McDonald’s made such adjustments because it wants to become the most attractive and competitive employer. The company works hard to transform the organization’s struggling business by improving employee-employer relationships and employment image (Cihon & Castagnera, 2016). The company is aware that a motivated workforce results in better customer services; therefore, the company has taken the initial step to improve employer-employee relations, develop employee talents, and improve working conditions. The pay increase and other better benefits such as paid time off were introduced to respond to employee needs and are focused on enhancing the company’s image.
How the Company Realizes Emerging Challenges in the Employment Law
McDonald’s is up-to-date with the emerging trends and new laws in the current HR issues. The company has taken the emerging challenges in the employment law seriously because failure to comply with such...