The true effect of human resource management on an organizational Dissertation

The true effect of human resource management on an organizational performance - Dissertation Example This paper will begin with a brief background study on the topic of human resource management and then a brief overview of McDonald's. This paper will spell out the research problem and thereafter the objectives of the study as well as the research questions. Lastly, this essay will state the significance of the study and the scope that it will cover. The roots of human resource management can be traced back to the industrial revolution whereby companies started engaging in mass production for commercial purposes and therefore, there was an urgent need of hiring more employees to the extent that even children were introduced into the working life at a young age. During this particular time when human resources provided to be a critical part of an organization, there was little known about effective human resource management and this contributed to the widespread violation of employees’ rights since this labor sector had not been fully formalized and regulated. Stewart and Brow n stated that the numerous industrial strikes that characterized this area were necessitated by the widespread violation of employees’ rights that was going on in nearly all of the manufacturing companies. Employees’ plight during this era was denoted by low wages and poor working conditions. The industrial strikes led to the emergence of human resource management whereby the welfare of the employees received more focus from the management of the companies in order to avoid future strikes, which had proved detrimental to the companies that were affected. Factors that marked the emergence of effective human resource management included the abolishment of child labour, development of labor unions, strategic recruitment, and selection of workers. DeGraff (2010) further added that the studies by Fredrick Taylor on lean manufacturing sparked an interest on the actual contribution of the workforce on an organisation’s productivity and this contributed to human resourc es been acknowledge as a significant part in the productivity of an organisation. In the present world, human resource management is a source for organisation’s competitiveness meaning that it directly affects the performance of organisations. 1.3 McDonald’s Corporation According to Warwick (2013), McDonald Corporation is largest public traded hamburger fast food restaurant chain in the world, which serves averagely 60 million customers in over 115 countries across the world on a daily basis. The McDonald brothers originally started the company in 1940 but it was fully acquired by Ray Kroc who joined the company as a franchise agent in 1955. The McDonald’s restaurants offer a wide menu to their customers, which consist of French fries, hamburgers, chicken, cheeseburgers, soft drinks, breakfast items, desserts, milkshakes, fruits, smoothies, wraps, salads, and fish. Presently, the company boosts of total assets worth over $32 billion and total revenue of over $27 billion and a net income of over $ 5 billion in the past financial year. 1.4 Statement of the problem There are numerous studies, which have focused on the impact of human resource management but there is no or very little comprehensive studies that focuses on the relationship between human resource management functions such as selection and training, among others and how