Resource allocation
Efficient human resource planning permits management to recruit, improve and array the right people at the right place, at the right time, to meet organizational internal and external service level responsibility. (Fraser et al., 2009) Companies are continuously looking out for tactics to deal with skill shortages that are principally shrewd in the “knowledge intense” industries owing to high staff turnover.
Resource allocation is the essential concept for both product and service providers (Handfield et.al, 2011). McDonald is successful in managing resource allocation due to effective supply management. Working closely with local suppliers allows McDonald to provide high quality of products for customers in each country. Additionally, supplier monitoring system enables McDonald to offer consistent quality of raw material and ingredients including freshness and safety. On the other hand, McDonald is hurt by inefficient supply management in some countries. For example, poor supplier selection in China forced McDonald to be threatened by out-of-date meat scandal and unhealthy image (Youngchinabiz, 2014). As above, it can be implied that McDonald has both success and failure in supplier selection. They should avoid using Chinese suppliers but try to rely heavily on Thai or Vietnam suppliers. The next aspect of resource allocation is human resource management. It cannot be denied that human assets play a vital role in service tasks. Human resource is the key factor for delivering impressive services. However, McDonald has low ability to manage well-trained staffs and reduce employee turnover. In many restaurant chains, McDonalds’ staffs are demotivated to offer the great services to clients.