human resource practices at Mc.Donald

BY Mannat

Nitish Shahi Gurteshwar Singh Karishma Gurparvesh Kaur

HISTORY

The McDonald's restaurant concept was introduced in San Bernardino, California by Dick and Mac McDonald of Manchester, New Hampshire. It was modified and expanded by their business partner, Ray Kroc, of Oak Park, Illinois, who later bought out the business interests of the McDonald brothers in the concept and went on to found McDonald's Corporation.

McDonald's Corporation

• McDonald's is the world's leading fast-food company by sales

• 32,000 restaurants serving burgers and fries in about 120 countries

• .There are nearly 14,000 Golden Arches locations in the US

• Most of its outlets are free-standing units, but McDonald's also has many units located in airports and retail areas.

Vision “ TO BE THE WORLD’S BEST

QUICK SERVICE RESTAURANTEXPERIENCE.”

“

MissionDon't worry about making money Love what you are doing and always put the customer first…And success

will be yours!”

Products

• In order to cater to local tastes and culinary traditions, and often in respect of particular laws or religious beliefs, McDonald's offers regionalized versions of its menu among and within different countries. As a result, products found in one country or region may not be found in McDonald's restaurants in other countries.

• McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare

ValuesA) They place the customer experience at

the core of all they do

B) They are committed to their people.

C) They give back to communities.

D) They operate their business ethically.

E) They grow their business profitably.

Human Resource Management

• The human resource department at McDonalds is working as a separate department and holds an important place in almost all major operations of the organization

• 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 in McDonalds

• POLICY-MAKING

• WELFARE

• SUPPORTIVE

• BARGAINING AND NEGOTIATING

• ADMINISTRATIVE

HR PLANNING

• HR planning’s purpose is to determine what HRM requirements exist for current & future supplies & demands of workers.

• To realize the McDonald's service vision, the organization believes in strengthening their team and ensures to deliver the right skills and knowledge to the right person for getting the right job done.

HUMAN RESOURCE FUNCTIONS

JOB ANALYSIS

• In McDonald’s job analysis done in order to employee new people every year

• Helps the management to have a better understanding of the jobs

• In McDonald’s they have predetermined standards on which employees are awarded on the basis of their skills, knowledge and experience

The Job structure

restaurant workers corporate

staff

franchise owners

RESTAURANT JOBS

In the restaurant jobs, there is a clearly defined career path, from Crew Member to Crew Leader to Floor Manager to Assistant Manager to Restaurant Manager. And from there onwards the opportunities for growth and development are limitless. Area Supervisors, Operations Consultant and beyond are just a few to mention from.

-TRAINEE MANAGER

-CUSTOMER CARE REPRESENTATIVE

-CREW MEMBER

OFFICE JOBS

Managerial jobs are categorized as Office Jobs in McDonalds. At McDonalds office jobs are an excellent match, provided an employee can exhibit the right skill set up to excel in the areas of his/her expertise. Depending upon the knowledge, experience and right aptitude, there are 3 key entry points in the office jobs.

• INITIAL ENTRY LEVEL• MIDDLE ENTRY LEVEL• HIGHER ENTRY LEVEL

• INITIAL ENTRY LEVEL This entry level is specifically for beginners to start the career in a professional work culture, these positions will provide the opportunity to develop the skills as a successful business entrepreneur.

• MIDDLE ENTRY LEVEL As a middle entry level incoming employee will perform as a liaison with team members to deliver the team objectives while ensuring the execution of assigned tasks as per defined standards and procedures.

• HIGHER ENTRY LEVEL The higher entry level job are accountable for the execution of assigned tactics and strategic plan. The provision of leadership approach to work will enhance their sense of ownership and part of the winning team member.

Franchise owner

The personal growth and business knowledge you’ll develop from our extensive training and your experience as a franchisee is invaluable. We encourage all our franchise owners to grow and to continually improve themselves and their businesses. They welcome contributions and an open exchange of ideas between the company and our franchisees.

Recruitment, Selection andRetention :

For McDonald's, people are its most important asset. This is because customer satisfaction begins with the attitudes and abilities of employees and effective workers are the best route to success.

Recruitment • RECRUITMENT Recruitment is the first part of the process of filling a vacancy. It

includes examination of the vacancy, the consideration of sources of suitable candidates, making contact with those candidates, attracting application from them, short listening, interviews and finally induction of the selected candidates within the budget of the department company. In McDonalds recruitment process is decentralized. Every branch of McDonalds is independent to hire the employees. Usually at McDonalds employees are hired in a form of badge. Also the transformations of employees within the franchises of McDonalds took place for recruiting the employees. A typical McDonald¶s restaurant can employ about 60 people who include the both managerial and floor- basedstaff.

• RECRITMENT METHODS IN MCDONANLDS McDonalds follow the two basic types of recruitment such as:

• Internal Recruitment

• External Recruitment

INTERNAL RECRUITMENT McDonalds uses the following two basic methodsJOB POSITIONING In Job positioning McDonalds select candidates from inside by

considering their past performance. MCDONALDS publicize their open jobs on their site ,where their employees could apply for the job they also publicize it in their restaurants on Notice Boards. So that the working employees could be informed from the vacant position and apply.

SUCCESSION PLANNING For the executive posts McDonalds follow a succession planning technique where they recruit their managers or senior employees to executive level on the basis of their performance.

EXTERNAL RECRUITMENT McDonalds often goes for external recruitment though they mostly prefer internal recruitment or internal promotion of the employees to the higher posts.External recruitment of McDonalds Recruiting via

INTERNET Now a Days Recruiting via Internet is becoming very common. McDonalds has its own site where they publicize for the jobs and offer people to send their CVs through online process and often recruit employeesfrom their

ADVERTISING Advertising is the most used method for recruitment. McDonalds approaches the Newspaper or a magazineadds mostly to invite employees for jobs.

COLLEGE RECRUITING McDonalds follow the most common method of college recruiting known asInter ns hips because many floor base employees usually join McDonalds for internship. Here they have one advantage that theydon¶t have to pay them much and their workforce need is also fulfilled for a temporary period of time.

Selection After the final interview the manager will rate the

applicant's responses. A successful applicant will have demonstrated skills and behaviors that have been identified as being key to the position.

Selection process • Written Process• Initial Interview• Aptitude Tests• Reference Checks • Final Interview • Relocation

TRAINING AND DEVELOPMENT:

• The first stage of training is at the Welcome Meetings. These set out the company's standards and expectations. The majority of training is floor based, or "on-the-job" training

• The employees in McDonald’s are provided with training to achieve high standards in the organization.

• Training involves-Direct training, Training abroad

• Specific Training Courses- FMC ,MDP,OCC,TCC

Methods Of Training

A)OrientationB)On-Job-TrainingC)Classroom Training

Levels Of Training A)Computer-Based Training B)Crew Member’s Training C)Manager’s Training

PERFOMANCE APPRAISAL AND INCENTIVES SYSTEM OF MCDONALDs:

Performance Appraisals-• McDonald’s conducts performance review semi-annually.• Some standards are made and defined according to which

the employees have to perform.• Then after 6 months all the employees are evaluated that

whatever they come up to standards or not.• If an employee does not perform well then feedback is

provided to them so they can improve• There are four levels to evaluate the performance of

employees: out standing ,excellent, good, need improvement

Incentives Incentives in McDonald’s are given to employees on the basis of performance.

Types of incentives:1. Cash Based • Attendance Allowance• Annual Allowance • Medical Allowance• Leave Fair Assistance

2. Non Cash Based• Crew Of the year• Crew Of the month• Branch of the year• Access to gift certificates• Free food

Rewards

The rewards are given on the basis of the performance There is arise of 10% in salary and if performance is also counted then 20%increment given at anytime of the year.

Benefits

McDonald’s benefit program is designed to attract, energize, reward and retain talented people who will produce superior business results and enhance their leadership position. MacDonald provided health insurance benefit to its full-time employees.

Benefit communication planning team is designed to include a variety of people from various corporate departments to ensure adverse representation

The accomplishment of the benefit communication planning

team includes:

• Plastic insurance cards with a magnetic strip to automatically bill for prescriptions.

• Coworkers communication programs, which allow a group of trained employees to explain the program to other workers

Awards/Achievements

• HR Excellence Awards 2009:Best Learning and Development Strategy -McDonald's Restaurants

• HR Excellence Award 2007:HR Initiative “ The People Project”

• HR Excellence Award 2006:HR Director of the Year –David Fairhust

Major Findings

• At McDonalds, the corporate culture and management system are strictly imposed, detailed operating manuals followed to the letter and an extensive field organization checks on each store to enforce standards.

• The organizational development focused upon generating revenues from the existing operations.

• The biggest change is the expansion in the menus based upon the product development strategy, and market expansion strategy,

• They give different trainings to their employees/managers to work in more productive way, and to achieve the goals of the organization.

• The domestic growth has slowed as a result of market saturation but McDonald’s global food service business delivered good results, and was possible only due to expansion and positive comparable sales.

• McDonald's develop a deep connection between McDonald’s and the local communities in which it operates

• McDonald's believes that the success of the restaurants and the company is achieved through the people it employs.

• The company aims to recruit the best people, to retain them by offering on going training relevant to their position and to promote them when they are ready.