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Employee Compensation and Motivation
As a service company, the performance of employees determines the success or failure of the company. McDonald’s should seriously consider not taking enough measures to make up for the criticism of employees. According to human capital theory, HR managers have a long way to go to judge employment and employee income behavior (Strober 2008). Lack of adequate compensation can affect a worker’s motivation level. The organization should ensure that its employees have sufficient motivation to achieve the best results. There are many motivational theories about the level of human motivation (Lindner 1998). The following is a list of these theories:
- Maslow’s hierarchy of needs
- Herzberg’s two-factor theory
- Vroom’s expectancy theory
- Adam’s equity theory
- Skinner’s reinforcement theory
There are two main ways to motivate employees in any organization to pay and recognize. According to Frum’s theory of expectation, the decision of motivation will depend on the desire for results. If employees have high expectations of the desired outcome, they will get a job from them and they will work hard to achieve organizational goals. The expectation theory of Porter and Lawler (1968) also argues that one’s motivation is to accomplish a task that depends on their expected benefits. Herzberg’s two-factor theory also involves organizational compensation, such as a salary that increases employee satisfaction and motivation for growth. From all the above theoretical discussions, one can be motivated to rely on monetary/non-monetary rewards to follow their energy.
McDonald’s HR managers should come up with a better compensation structure for their employees. Among them, the best way to maintain employee satisfaction is to come up with a salary structure, which always pays its employees a good grade, exceeding the minimum wage legally prescribed by the government. Because employee-related costs are bound to increase due to the increase in the minimum wage of McDonald’s, McDonald’s should maintain its cost control in other ways. Employee performance should also be strictly bundled and compensated by obtaining each employee. According to the reinforcement theory, Skinner is propounded, and the reinforcement is the result of the subsequent specific stimulus. Intensive stimulation is a stimulus that rewards employees who receive compensation and other benefits as they receive.
Lack of proper reinforcement stimulates employees leading to lower motivation levels and higher turnover rates. McDonald’s should try to improve the performance appraisal mechanism of employees so that it can easily explain the compensation paid to employees. McDonald’s also pays very little money to employees to meet their other expenses, such as health care (US $20 months) and rent (Strasser 2013). The sharp increase in the amount of money paid to employees to meet such expenses should also be considered by the company. In the United States, like In-N-Out Burger and
Chiptole Some restaurant chains pay more employees per US $ 10.53 and US $ 8.57 (Nolledo 2013 years) hourly wage. The wage figures paid through these restaurants are close to Obama’s proposed US$9 but they are still very short, and American fast food restaurants in the US are being asked for $15 per hour.
Chipotle pays significantly higher wages to maintain the satisfaction of its employees, keeping a distance from protests and lawsuits against the company. Even if it is not directly comparable to McDonald’s fast food restaurants, a good example is the US company Costcowhich exceeds the legal minimum wage to increase employees’ wages (almost 100%) (Chongyi 2014). The city has paid us a minimum wage of $21 per hour for employees who are far ahead of the US workers with a statutory minimum wage of $10 for such good grades, beyond the law, helping to minimize the need to keep employees happy and get A reputation as a leader in sustainable social development.
Overtime Abuse
Although McDonald’s does not work, in most of the shops, overtime abuse committed can affect its reputation through its franchise partners. According to Herzberg’s two-factor theory, health factors, such as improper working conditions, lack of job security, lack of benefits and can act as a morale factor against employee performance. McDonald’s franchisees may work overtime, which may be an incentive factor that does not meet the level of staff. Demand (1943) Maslow also addresses the various needs of people at different stages of their lives. One of the most important is that people like financial security, personal safety, and work safety, which will affect their motivation level for security needs. Lack of safety in workplace requirements can lead to loss of power and employee insecurity. Overtime overtime can seriously affect the safety level of employees and make them lose motivation. McDonald’s should be able to prevent abuse by overtime franchises every step of the way. The theory of fairness was proposed by JC Adams (1963), which is another important motivation for seeking a workplace between employees who talk about the fairness of the work they get. According to theoretical expectations, obtained from employees when they compare the work/output compared to the same office to be accepted by others in another industry output. Overtime abuse McDonald’s franchisee commitment to employees so that employees can see them contributing input and output (compensation) gap between receiving them. This has the potential to hit a level of enthusiasm and commitment of employees to the organization.
The best way to prevent its franchise partners’ overtime abuse by employees working in the conditions of its franchise partner of relevant policies. As the franchisor and the franchisee have entered a part of the franchise agreement, the franchise lays down the conditions, of the partnership between them. These issues range from the use of the conditions for payment of its fees to the franchisor franchisor will take full responsibility for marketing and promotional issues. Some franchisors also promised to help recruit franchisees and staff training franchisees. In this case, McDonald’s can put on the practice of overtime, and then pass the conditions of the franchisee. Monitoring and statistics on how employees work in strict time can prevent abuse of their franchisees’ overtime work. According to the same theory of human capital, it’s McDonald’s franchisee stern conditions can help control their overtime related to abuse.
McDonald’s can implement a new system, check-in and check-out process workers at its franchise stores are monitored by McDonald’s human resources managers regularly. This unique monitoring system can resort to overtime abuse franchise to stop. Abuse control of employees will also increase the level of enthusiasm of employees, customer satisfaction, and the company’s reputation in the public. A typical example, human resource practice in which the franchisor has put its franchise Subway is strictly controlled. Metro to conduct a strict monitoring mechanism for its employees, which involves the violation of anyone’s resources will be strictly punished (metro date unknown). Terms of entering the franchise agreement by Subway and its franchisees including the terms and human resources need to follow the practice.
Conclusion
Abuse of employees and protection of good human resource management practices compensation paid to them on combat work-related help increase employee productivity and well-maintained public about the company’s reputation. There are such as Wal-Mart, where allegations of unfair treatment of employees, damage the public reputation of countless examples. The company also had to face costly litigation and spend millions of dollars to come out of these proceedings. Another big problem is the destruction of organizational activities due to protests from employees. A lawsuit filed by some of its employees may be just a trend of begging. Therefore, McDonald’s should follow these recommendations, out the relevant compensation, and prevent the abuse of overtime staff-friendly practices, to maintain the enthusiasm of their employees and increase the contribution of growth in the company’s future.
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