Analyse the case titled “Retaining talent with salary packaging”

Assessment task 3 requires the writing of an argumentative academic essay. The essay should therefore contain an argument that is used as the structuring element. Students are expected to engage in extensive research within the academic literature in Human Resource Management, particularly focusing on employee attraction and retention, career progression, performance management, remuneration and reward.


The assessment item is based on the case study titled “Retaining talent with salary packaging (Pg. 492-494 of textbook): Human Resource Management in Australia (5th Ed.) by Kramar, Bartram, De Cieri, Noe, Hollenbeck, Gerhart & Wright, McGraw-Hill Australia). Read, and carefully analyse the case to write an argumentative essay which addresses all of the following: 1. Discuss how the recognition scheme supports McDonald’s culture and attracts future leaders. 2. Discuss which theory(ies) you think would support McDonald’s recognition scheme. 3. Would McDonald’s approach to managing human resources be directly applicable in a not-forprofit organisation such as the Spastic Centre? Justify your answer



Retaining Talent with Salary Packaging

McDonald’s is a fast-food giant with approximately 36,000 restaurants in more than 100 countries, and it is estimated to serve 69 million people on a daily basis. The organization has around 1.9 million people working for it around the world. In the UK alone, the number of staffs plus that of franchises is 100,000. There are 1,200 restaurants in the UK, 400 of these are company owned while the remaining two-thirds are franchised.  The employees’ gender is balanced with an age profile of fewer than 25 years old. It is known for its employee-centered culture with objectives of aligning benefits to the business strategies. On the other hand, Spastic Centre was founded by a group of 25 parents concerned about their children who suffered from cerebral palsy in 1945. It is based in New South Wales, and at the time it was found Audrie and Neil McLeod were its leaders. This essay argues that McDonald’s management has effectively employed the use of recognition to attract and retain its employees by the expectancy theory (Anon, 2012; Nadolny & Ryan, 2015). The not-for-profits firms, however, cannot apply the same strategies due to inadequate funding.

McDonald’s Recognition Scheme

The training and development programs at McDonald’s are aligned to its culture of individual and organizational learning to ensure it upholds its quality standards as well as building a pool of qualified future leaders CITATION Sch16 l 1033  (Schaarschmidt, 2016). The training and development programs are based on the organization’s belief that individual and organizational learning corresponds to increased productivity, effectiveness and quality. As a consequence, the organization set aside Hamburger University for leadership training and development, internships, and global mobility.  Besides, McDonald’s Australia training ground is fully registered with the authorities and has an annual budget of more than $40 million to mainly facilitate the training of frontline crew. The company management takes succession seriously with Frank McManus reportedly spending about 40 percent of his time at work on talent development and administration. It is, therefore, clear that the company will have trained its staff for future leadership and perpetuity

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