ASSIGNMENT

Topic: The impact of COVID-19 on the Accounting

professiom
Course Title : Managerial Accounting
Date of Submission
1 December 2022

SUBMITTED TO

Mrs. Shafaitun Nahar

Lecturer
Discipline of Accounting,
Department of Business Administration
Premier University

SUBMITTED BY

Name ID
Md. Zia Uddin 1803810109792
Upama Barua 1803810109742
Momoching Marma 1903910109859
Mujammal Hossen Chowdhury 1803810109790
Rakib Chowdhury 1803810109788
Pranta Mojumdar 1803810109739
 Introduction
What is HRM?

The outbreak of COVID-19 has created a crisis in

health, education, profession, and another social
phenomenon. The pandemic at COVID- 19
changed all industry sectors, including the
accounting profession. Accounting professionals
experienced a storm of financial disruptions and
coronavirus in 2020.

Introduction of McDonald’s:

Changes in Accounting

There are some changes in accounting due to COVID19 pandemic. Accounting professionals have to
aware of it when preparing financial reports. They are given below:

1. Going Concern: Before publishing the financial statements, evaluating the going concern must be
performed. Uncertainties should be made clear, which are material.

2. Issues Regarding Financial Instruments: The announcement should now be repented by the
entities that recognize the clusters of areas or sectors that have been hit by the pandemic not
previously reported (airlines, hotels, travel, etc.). – Any substantial fluid changes resulting from the
coronavirus epidemic should be noted, and this should follow their assessment of the present
concern. A modified financial asset or obligation is not disregarded. The increase in the credit
quality for the loan portfolios and the exchange of claims due to the epidemic would significantly
impact ECL calculations. The ECL's estimate is based on a weighted, uniform amount of probability
based on evaluating specific probable results and economic time value

3. Income taxes: Latest government reaction to the coronavirus outbreak includes income tax cuts
and other subsidies. The effect of these regulatory amendments on their income tax statements
should be taken into account by businesses.

4. Assessment of Impairment: The anticipated cash flows may indicate the best economic
management estimate, depending on the evaluation of the investment in the operation, that
prevails on the remaining productive life of the active. In these conditions, many of these findings
are subject to substantial ambiguity. Entities should also consider
thorough theory and sensitivity disclosures (Alao & Lukman G, 2021).

5. Government Grants: As a result of the extreme consequences on the

operations of specific organizations due to COVID- 19, relevant
initiatives have been (or are planned to be) adopted by states, agents, or
other related agencies in many countries to assist entities. However, all

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initiatives are not the government grants. Organizations should closely analyze interventions and
assess the criteria for the respective accounting procedure.

6. Leases: The spread of coronavirus has exacerbated financial uncertainty, and central banks have
lowered interest rates in many jurisdictions. In these conditions, it will also be appropriate to
determine an updated incremental borrowing rate.

7. Revenue Recognition: To assess the impact of coronavirus-related instability on their revenue

account.

Vision

“TO BE THE WORLD’S BEST QUICK SERVICE RESTAURENT EXPERIENCE”

Mission

“TO BE OUR CUSTOMER’S FAVOURITE PLACE AND WAY TO EAT AND DRINK”

HRM process of McDonald:

The Human Resource department at McDonald’s is working as a separate department and holds
and important place in almost all major operation of the organization bat all managers across
McDonald are given responsibilities for selecting, motivating, developing and evaluating employees
so that they can have a share in the organizational affairs. All managers therefore take on human
resource responsibilities. Employees are the most important resources in McDonald’s, particularly
in creating a competitive edge.

Functions of HR:

The functions of HR in McDonald’s are:

 Policy making: Establishing major policies that cover the place and importance of people in
McDonald’s.
 Welfare: Concerned with looking after people in McDonald’s and their needs.
 Supportive: Corporative and helping with other managers in their work.
 Administrative: Responsible for pay rate system and super vision of health and safety laws,
etc.

Recruitment and
Selection

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Recruitment:

Recruitment is one of the most essential parts for any organization, which is governed by human
resource management. According to (Neo R.A, 2004), “Recruitment is any activity carried on by the
organization with the primary purpose of identifying and attracting potential employees.” The
recruitment, selection and retention of competent, reliable, motivated managers have been the
cornerstone of any organization (Van Dyke, 1990). Thus recruiting and selecting the right
individual can be proved as paramount for any organization. Overall we can say that, identifying,
sourcing and recruiting people for an opportunity.

Internal Recruitments:

Internal recruitment is a process seeking applicants from inside the property to fill the open
positions (Johanson, 1992). In other words, as explicit policy organizations may also adopt a policy
of giving preference to qualified internal employees over external applicants. An employer with
larger number of workers having managerial, potential, in turn, has a great probability of filling its
managerial position with an internal promotion. Managers should take into that when an employee
promoted, his/her position is vacant, then recruiter have to hire a new employee to fill that position
that should be more costly. (Morita, 2013)
Job posting: The internal job posting is a recruitment process where a candidate is selected for the
job who is already working in the same company. In other words internal job posting process finds
a candidate among the employees of the company. It delivers a sense of support from internal
employees of the company. (Moser, 2005)
Promotion: is an upward movement of employee from current job position to a hierarchically
higher job position with increased payment and responsibilities. Promotion is a recognition and
reward for knowledge efficiency and talent. (Moser, 2005)

External Recruitment:

External recruitment approach has a vital role for any organization is the available position cannot
be filled by existing employees managers approaches the external candidates to find the available
vacancy. External recruiters are usually e used by recruiters at initial level but it is more expensive
than internal one. External workers are usually recruited only if they are significantly superior to
existing one. Specifically in the fast food industry there are many
ratios of part time employees. Therefore hospitality managers
should keep in mind that part time employees frequently change
their job or might be lower company productivity. (Chan, 1996)

External recruitment methods:

External recruitment methods are considered most difficult to

handle in any organization. The methods of external recruitment
are job advertisements employment agencies executive search
firms and educational institutions. Job portals and sides are used
the most and stay on top with 28% where as social media is on number second with 23% of uses as
sourcing channel. On campus hiring participates as a recruitment source with 22% and employee

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referral are at 11%. Rest of sourcing channels like recruitment agencies, company websites and
advertisement on 7% 5% and 4% respectively.

Company Websites Advertisements

5% 4%
Recruitment Agnecies
7%
Employee Referals Job portals
11% and sites
28%
Re-
cruit-
ment
Source
22%
Social Media
23%

Selection:

Selection of best potential candidate in other words this means minimizing the pool of applicants by
using screening tools that includes test assessment centers background check reference check and
intuition etc. Supervisor can make a hiring decision after interviewing likely candidates one of the
most important ask in an organization is so high right employee as it has a direct impression on
performance cost and legal obligation. Few decisions are easy to rectify but most of them are
impossible. Selecting a wrong person can be extremely expensive and travel making for clients,
colleagues and organization. (Dessler, 2014)

Employee Testing:

Assessment instruments and physiological test that evaluate prospective employee’s personality,
reactions in stress situation and interpersonal skills, have gained attention by human resource
researchers and professionals over past 20 years. A test is one of the most popular tools for
selection. Artist is a simple of person’s behavior it is assumed reliable and valid. The validation
process consists of five steps analyze the job choose the test administrator the test relate your test
scores and criteria and cross validate. (RD Gatewood, 1998)

Assessment centre:

Assessment Centre is a complete standardized procedure in which various assessment techniques

such a situation all activities and job simulation for example Business games group discussion
presentation and reports are used to evaluate individual for various purposes. Assessment centers
have many positives they can measure difficult attributes, pertain credibility, face value reputation
for participants and expedite adverse impact. (Thronton III, 2013)

Background and other investigation methods

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According to study 61% of candidates provide falsified information on resume regarding their
education, job designation and dates of employment. It can be verified easily but if education is
mentioned falsified or exaggerated it becomes very risky especially for such positions where
education is necessary for success in job role or organization.

Best way to make background check more valuable contains few steps:

1. Statement of declaration should be attached with application form signed by applicants that
will authorize employer or background check.
2. It is good to make phone calls but if it is preferable to use the reference check as it is
considered relatively more reliable and accurate as source.

Recruitment in McDonald’s:

Recruitment process in McDonalds is done through the

following process:

1. Online application: Recruitment starts with the filling up

of online application form of McDonalds. A part of application
process is that the candidate will be asked to go through a
short quiz. Before filling up the application form the
candidate must have the following info:

 Contact details of the candidate

 Contact details of two guardian ( 1 personal and 1 academic)
 Working hours
 Consent of parents if the candidate’s age is below 16.
 Work permit(For citizens other than Australia or New
Zealand)

2. Interview: If the first process goes well then the candidate will
be invited to an interview. The interview gives both the candidate
and McDonald’s if they are well enough for each other. The
candidate must bring the followings: Resume, completed job
application form, passport, birth certificate and (if applicable-) right
to work and guardian consent form.

3. Reference and background check: McDonalds will go through a

reference check of the candidate. If the candidate is not an
Australian or New Zealand citizen or resident, then they will run though to confirm the work permit
of the candidate. The candidates who are 18 or above will be asked to complete a criminal
background check at the reference check stage of the application process. (McDonalds)

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Selection in McDonald’s:

The final selection is made from among those candidates who have successfully cleared tests,
interview and reference checks. After this, candidates will require to go through a medical
examination so that if any disease is present in any candidate then it may affect their food products
or other employees. When the candidate passes all the formalities of recruitment process then
McDonalds provides the job offer to the candidate. A contract of emplacement is signed between
them. The contract includes:

 Job title
 Duties and responsibilities
 Date of joining
 Allowances
 Working time
 Rules and regulations

Training and Development

Training:

Training is a teaching operational on technical employees how to do the job for which they were
hired. Human resource management training is an important part. McDonald’s applied some
training method in worldwide for McDonald’s training is an investment we have to make in the
leaders of tomorrow, we want to model that it’s important.

There are some training methods in McDonalds:

Training versus education: People mix up training and education. When it comes to employee
training especially when limited financial resources are available many companies seem to favor
are more cores sensitive, but for less effective, approach. They turn to education instead of training.
Education typically takes place in a classroom and involves a transfer of knowledge through the use
of formal methods searches lectures and directed discussion learning is also very time consuming.
On the other hand training typically entails personal involvement commitment and experiential
gains. Training involves learning by doing. Training aims to provide employees with proficiency in
the execution of given task. Many training programs focus on the modification of employee
behavior in a direction that is deemed advantages to both the company and the individual. So
training is more important than education.

Role of training manager: Training manager seems to be fairly common job title in any company.
Training managers have the responsibilities entail some form of employee training. Ford IMO most
large corporation have a staff of several full time professional whose sole function is to SS training
needs and institute training program a training program tends to be related to companies size and
other factors company size and other factors. All training managers share at least one common
characteristic they have to demonstrate the effectiveness of their training pursuits and thus justify
the need for their position. Then the training manager trains the new employees help them to
understand their policy and encourage them to work properly.

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In McDonald's training managers firstly need to know which employee needs to be trained what
information the employee need to do what do they already know. Then the following training
managers should set the training objectives: 1. Specific and 2. Measurable

Evaluation of training:

Training programs should always typical evaluation approaches include measuring what are more
relevant criteria before and after the training. Evolution measures collected at the end of the
trainee are easy to get but actual performance measures collected when the training is on the job
are more important. Trainees may say that they enjoyed the training and the learnt a lot but the
true test is when the performance improves after training.

Training centre:

Some large business have started creating their old self contained training facility often called are
corporate University McDonald’s was among the first to start this practice with its so-called
hamburger University in Illinois.

1. It was founded in 1961 the first class had 15 students.

2. It has 7 locations around the world.
3. It has 200+ students per week.
4. It has 7500 + students per year.
5. Since 1961, more than 275000+ students graduated from here.
Development:

Development stitching managers and professionals the skills needed for both present and future
jobs. Development is the use of knowledge skills and abilities by the employees which the
employees can use for the performance of tasks today and in future.

Benefits of employee development:

In today's work environment employee development is the number one factor for the employee
retention especially among millennial investments in employee development directly impact
employee engagement and productivity improving overall business success metrics.

Development program:

In 1999 Janet Kottke describe that employee development programs must be comprises with core
proficiency appropriate structure through which organizations develop their business of corporate
level. The basic function of the theory is to gain knowledge, corporation, inventive thinking and
resolving the problem employee development programs includes a variety of teaching technique
schedule and helping learning environment that ensure employee to improve their skills and later
apply on their jobs.

Organizational benefits from development program:

Employee development programs are important for McDonald's to stay solvent and competitive in
market. Though it is expensive for the organization to spend money on their employees but their
investment is positive for the organizations to hold the place in the market. Employee development
not only increase the profit of organizations but also provide difference within their native market

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organizations can practice development opportunities to support them available to the current
employees prospective employees and clients of the company.

Individual benefits from development:

Employee gets a lot of benefits from the employee development program. They learn the soft and
technical skills as required in McDonald’s. Employee development program helps an employee
individually to survive in the future and develop their abilities to cope with new technologies in
McDonald’s an employee gets to improve their skills and other
things by development.

Performance Appraisal
Introduction:

Performance appraisal has widened as a concept and as a set

of practices and in the form of performance management has become part of a more strategic
approach to integrating HR activities and business policies. As a result of this, the research on the
subject has moved beyond the limited cones of measurement issues and accuracy of performance
ratings and has begun to focus more of social and motivational aspects of appraisal.

Definition:

Performance appraisal is a systematic process in which employee’s job performance is evaluated in

relation to the projects on which employee has worked and his contribution to the organization. It
is also known as an annual review or performance review. It helps the managers place the right
employees for the right jobs, depending on their skills. Often, employees are often curious to know
about their performance details and compare it P iw
la
nR s
A
with their fellow colleagues and how they can
o
v
e
Dp
rfm
improve upon it. So every company needs a
good performance appraisal system. The basic
purpose of performance appraisal is to identify
an employee’s worth and contribution to the
company. (Mayer, 1999)

Methods:

Performance appraisal is the systematic

observation and evaluation of employees’
performance. Some of the most commonly
used performance appraisal methods include the
judgmental approach, the absolute standards
approach, and the results-oriented approach.
However, the performance appraisal process is
far from accurate and objective, sometimes resulting in rating errors. Common rating errors include
strictness or leniency, central tendency, halo effect, and recency of events. (Lunenburg, 2012)

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Use of Performance Appraisals

1. Promotions
2. Confirmations
3. Training and Development
4. Compensation reviews
5. Competency building
6. Improve communication
7. Evaluation of HR Programs
8. Feedback & Grievances

Methods of Performance Appraisal:

Numerous methods have been devised to measure the quantity and quality of performance appraisals.
Each of the methods is effective for some purposes for some organizations only. None should be
dismissed or accepted as appropriate except as they relate to the particular needs of the organization or
an employee.
Broadly all methods of appraisals can be divided into two different categories.
1. Past Oriented Methods
2. Future Oriented Methods

Past Oriented Methods:

1. Rating Scales: Rating scales consists of several numerical scales representing job related performance
criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from
excellent to poor. The total numerical scores are computed and final conclusions are derived.
Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large number of
employees covered, no formal training required. Disadvantages – Rater’s biases

2. Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or No
based questions is prepared. Here the rater only does the reporting or checking and HR department
does the actual evaluation. Advantages – economy, ease of administration, limited training required,
standardization. Disadvantages – Raters biases, use of improper weighs by HR, does not allow rater to
give relative ratings

3. Forced Distribution Method: here employees are clustered around a high point on a rating scale.
Rater is compelled to distribute the employees on all points on the scale. It is assumed that the
performance is conformed to normal distribution. Advantages – Eliminates. Disadvantages – Assumption
of normal distribution, unrealistic, errors of central tendency.

4. Critical Incidents Method: The approach is focused on certain critical behaviors of employee that
makes all the difference in the performance. Supervisors as and when they occur record such incidents.
Advantages – Evaluations are based on actual job behaviors, ratings are supported by descriptions,
feedback is easy, reduces recency biases, chances of subordinate improvement are high. Disadvantages
– Negative incidents can be prioritized, forgetting incidents, overly close supervision; feedback may be
too much and may appear to be punishment.

5. Field Review Method: This is an appraisal done by someone outside employees’ own department
usually from corporate or HR department. Advantages – Useful for managerial level promotions, when

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comparable information is needed, Disadvantages – Outsider is generally not familiar with employees
work environment, Observation of actual behaviors not possible.

6. Performance Tests & Observations: This is based on the test of knowledge or skills. The tests may be
written or an actual presentation of skills. Tests must be reliable and validated to be useful. Advantage –
Tests may be apt to measure potential more than actual performance. Disadvantages – Tests may suffer
if costs of test development or administration are high.

7. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different
methods that compare performance with that of other co-workers. The usual techniques used may be
ranking methods and paired comparison method.
Ranking Methods: Superior ranks his worker based on merit, from best to worst. However, how best
and why best are not elaborated in this method. It is easy to administer and explanation.
Paired Comparison Methods: In this method each employee is rated with another employee in the form
of pairs. The number of comparisons may be calculated with the help of a formula as under.
N x (N-1) / 2.
Future Oriented Methods:

1. Management By Objectives: It means management by objectives and the performance is rated

against the achievement of objectives stated by the management. MBO process goes as under:
1. Establish goals and desired outcomes for each subordinate
2. Setting performance standards
3. Comparison of actual goals with goals attained by the employee
4. Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial
positions.
Disadvantages – Not applicable to all jobs, allocation of
merit pay may result in setting short-term
goals r ather than important and long-
term goals etc.

2. Psychological Appraisals: These appraisals are more

directed to assess employee’s potential for future
performance rather than the past one. It is done in the
form of in-depth interviews, psychological tests, and
discussion with supervisors and review of other
evaluations. It is more focused on employees
emotional, intellectual, and motivational and other
personal characteristics affecting his performance. This
approach is slow and costly and may be useful for
bright young members who may have considerable
potential. However quality of these appraisals largely
depends upon the skills of psychologists who perform the evaluation.

3. 360-Degree Feedback: It is a technique which is systematic collection of performance data on an

individual group, derived from a number of stakeholders like immediate supervisors, team members,
customers, peers and self. In fact anyone who has useful information on how an employee does a job
may be one of the appraisers. This technique is highly useful in terms of broader perspective, greater
self-development and multi-source feedback is useful. 360-degree appraisals are useful to measure

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inter-personal skills, customer satisfaction and team building skills.
However on the negative side, receiving feedback from multiple
sources can be intimidating, threatening etc. Multiple raters may
be less adept at providing balanced and objective feedback.

Performance Appraisal in McDonalds:

McDonalds uses a 360 degree appraisal system where all the

information on performance and feedback is derived from a
number of stakeholders within the company. The existence of
an appraisal program indicates to an employee that the
organization is genuinely interested in their individual
performance and development. Employees of receives a
performance review twice a year. Its enables the employees to
measures their productivity, set objectives and discuss their
training and development needs of the employees. The section of the review is aligned with overall
company strategy and each individual’s job description. Each section has the opportunity for the
reviewer to rate an employee’s performance through both written comment and numerical rating
on a scale of 1-4. The employees have the opportunity to grade themselves within each section.

Conclusion:

The need of strategic human resource management for a multinational company like McDonald
holds a great importance for the current business operation and future growth opportunities.

McDonald’s strategy must attract more new customers and also encourage the present customer to
visit restaurants more often, build brand loyalty and eventually create long term profitable growth
for the company.

References:

BIBLIOGRAPHY

Chan, W. (1996). External Recruitment Versus internal promotion. Journal of Labour Economics .

Dessler, G. (2014). Human Resouce Managment. Person Higher Ed.

Johanson, W. R. (1992). Managing Hospitality Human Resouces.

Lunenburg, F. C. (2012). Performance Appraisal: Methods and Rating Errors. INTERNATIONAL

JOURNAL OF SCHOLARLY ACADEMIC INTELLECTUAL DIVERSITY .

Mayer, R. (1999). Effect of Performance Appraisal System. Journal of Applied Psychology .

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Morita, D. V. (2013). Internal promotion and external recruitment: A theoritical and empirical
analysis. Journal of Labour Economics .

Moser, K. (2005). The Mediating role of Unment Expectation. International Journal of selection and
Assessment .

Neo R.A, H. J. (2004). Fundamentals of Human Resouce Managment.

RD Gatewood, S. H. (1998). Human Resouce Selectiion. Dryden.

S, V. D. (1990). Recruitment, selection and retention of managers in the hotel and restaurent industry.

Thronton III, B. (2013). Assessment Centre Managerial Performance.

Van Dyke, T. S. (1990). Recruitment Selection and Retention of managers in the hotel and restaurent
industry.

https://apply.mcdonalds.com.au/public/index.cfm?
action=showPublicContent&assetCategoryId=4310

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