Mgnt 206 - McDonalds Fairy Meadow II Nsw

MGNT206 Assessment 3: Final Report

Executive Summary

This report will focus on the human resource policies and practices relevant to performance appraisals at McDonalds Fairy Meadow II NSW, a corporate owned McDonalds franchise. The purpose of the report is to describe the company’s human resource policies and practices relevant to performance appraisals, provide a critical analysis of these policies and procedures and give recommendations for improvement based on relevant literature. Two employees of McDonalds Fairy Meadow II NSW were interviewed for this report; Jackson, M (Store manager) and Miceski, K (Shift manager) to determine what the current .

A critical analysis of academic literature regarding performance appraisals finds that whilst there is no best way to conduct performance appraisals, relevant literature advocates that performance goals must be specific and clearly designed, agreed upon by both the appraiser and employee and that pay/ promotion are closely tied with performance (Rankin & Kleiner, 1988). Some of the best methods of performance appraisal involve Edwin Locke Goal Setting Theory and 360’ appraisals (Stone, 2013).

Current issues with performance appraisals include defining employee effectiveness, employee perceptions, reluctance to criticise and performance appraisal training (Banner & James, 1985).The report illustrates that defining job context and employee effectiveness, performance goals and employee rewards, rater of employee performance and performance appraisal training are they key issues in performance appraisals at the McDonalds Fairy Meadow II NSW franchise.

Recommendations include amendments for defining employee effectiveness by implementing behavioural anchored rating scales and management by objectives appraisal systems, defining performance goals using goal setting theory, introducing multi-source evaluations and improved training on common errors and biases for managers conducting performance appraisals.

Introduction

A performance appraisal (PA) is defined as, ‘being concerned with determining how well employees are doing their job, communicating that information to employees, agreeing on new objectives and establishing a plan for performance improvement” (Stone, 2013).  Through a critical analysis of the human resource policies and practices at McDonalds Fairy Meadow II NSW evidenced during interviews with staff, the following report will describe the processes used by the organisation to conduct performance appraisals and use relevant human resource management theories and concepts to critique the organisation's performance appraisal system. Based on this analysis, recommendations will be made

regarding challenges that the organisation faces in respect to performance appraisals.

Description of the company's HR policies and practices

McDonalds Fairy Meadow II NSW as a part of McDonalds Australia Pty Ltd conducts all of its human resource policies and practices relevant to PA’s through a comprehensive Diversity and Inclusion Policy (McDonalds, 2014). This policy encompasses Equal Employment Opportunity principles and is communicated to all new employees during their orientation to the organisation (Jackson, 2016). Training and promotions are not determined by age, colour, race, sex, religion, appearance, parental or marital status, disability, sexual preference, impairment or national origin, rather individuals are assessed on their individual performance and promotion is based on merit (McDonalds, 2014).