Report on McDonald's HR Management

Human Resource Management


Introduction• McDonald’s is the largest and best known

global food service retailer with more than 30,000 restaurants in 121 countries, and best known global food service.

• McDonald’s serves less than one percent of the world’s population.

• McDonald’s outstanding brand recognition, experienced management, high quality food, advanced operational systems and unique global infrastructure ensure a position that enables them to capitalize on global opportunities.


Vision“The world’s best quick service restaurant experience.”

World Wide Strategies1. Be the best employer for people in each

community around the world.

2. Deliver optional excellence to customers in each restaurant.

3. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of McDonald’s system through innovation and technology.

To achieve their vision they are focused on three world wide strategies:


Welcome to McDonald's Pakistan

• McDonald’s Pakistan is part of the Lakson Group of Companies, a leading business house in Pakistan.

• McDonald’s first restaurant opened its doors to the people of Pakistan in September 1998 in Lahore. This launch was met with great enthusiasm from the citizens of Lahore, who are known for their liveliness, vigor and desire for quality food.

• Karachi opened its first restaurant a week after Lahore.


• There are now 21 restaurants in four major cities of Pakistan ( 9 in Karachi, 1 in Hyderabad, 8 in Lahore ,1 in Faisalabad,1 in Islamabad and 1 in rawl).

• McDonald’s is firmly committed to give back to the community where it operates. They are happy to become involved because they recognize that organizations have a role to play in helping communities to work successfully.

Welcome to McDonald's Pakistan


GMReal Estate

DOCEO

CountryHRManager

GMFinance

CountryProduction Manager

GMOperations

GMEquipment

GMMarketing

TrainingConsultant

HR MKarachi

HR MLahore

HRCoordinator

HR Coordinator

Op.Manager

Op.Manager

1st Asst

2nd Asst

2nd Asst

FM

FM

FM

FM

Op.Consultant

Op.Consultant

Res.Manager

TrainingCoordinator

Asst.HR M


Human Resource Country HR Manager says:

“HR means keeping a balance between employer & employees because it is our strong belief that it is people, not machines, which make the difference.”

Objective“To satisfy the internal customers because they are the window to the external customers.”


HR Department Activities• Recruitment and Selection

• Training and Development

• Performance Appraisal

• Employee Benefits

• Incentives

• Medical Cover

• Welfare amenities

• Health & Safety


Designing of JobMission Statement:

"Don't worry about making moneyLove what you're doing and always put the customer first...

And success will be yours!"

Country HR Manger says:

“We actually blended the business needs of our local business with the international guidelines, then create the job and accountability profile and define the scope of the work and responsibilities.”


Job profile of a Restaurant Manager • A Restaurant Manager is responsible

for running an independent restaurant.

• Training, motivating and leading a team of 50-100 employees.

• Independently managing the restaurant's operations in terms of sales, profitability and community relations.

• Delivering 100% Total Customer Satisfaction to every customer - every time.


Recruitment & SelectionMission Statement:

“Some people wait for the future. Some push it along. We don't have waiters.”

Core ValuesAt McDonald’s, people are the most important factor. They seek only those people, who can think, feel, express themselves, learn, teach and hence grow. Their growth is the company’s growth.


Fresh People:McDonald’s provides thorough In-house training to fresh people relatively inexperience people. Hiring people having no previous work experience also helps them greatly in adjusting to the distinct culture of the organization.

Justified Selection: The selection is entirely based on merit which conforms the selection criteria without any bias towards gender, religion, race, color, nationality, age.

Core Values


Role of HR Department

• Develop guidelines and procedures.

• Provide recruiting services and staff support.

• Council Restaurant Manager to make final employments decision.

• Provide basic training to newly hired employees.


Techniques for Forecasting

Two models:

1) TCPMH Transaction Count per Man Hour

2) SPMHSales per Man Hour


Types of Recruitment

• Internal

• External

Sources in Internal Recruitment

• Job Posting


• Advertisements in Print Media

• Advertisements on website

• Internship Programs

• Walk-ins

Sources in External Recruitment

McDonald’s advertise depending on the vacancies as the need arises.


Selection Procedure1. Screening of ApplicantsAfter building a pool of candidate’s applications, short listing of selective applications is done by the HR manager.

2. W-I-SThis is the written test. The reason for the written test is to assess that whether the recruits are able enough to fulfill the general practical requirements of the job.The HRD department designs and conducts the tests as and when hiring needs arises.

3. Initial InterviewThe ONE to ONE interviews conducted by Restaurant Manager.


Selection Procedure4. Reference ChecksThey look at the references that have been provided by the candidate, they check if the references are valid or not.

5. Final InterviewCandidates who have passed their TEST are called for the final interview. Interview is done by a panel of five or six interviewers.


Mission Statement:

“Values that last a lifetime”

Orientation

• Provides new employees with basic background information they need to perform their job satisfactorily.

• New employees get a handbook:-- Working hours- Performance reviews

- Vacations - Employee benefits - Personnel policies - Safety measures and regulations

The orientation is performed by the HRD Manager and the employees are introduced to their supervisors.


Mission Statement:

“We value you, your growth and your contributions.”

McDonald's People Promise


Training & Development

Mission Statement:

"Learn while you earn"

According to training coordinator Mr. Khalid:

“Training is an important part for our employee’s McDonald’s work experience and starts as soon as he joins the McDonald’s team. Crew Trainers, Managers and other employees will work shoulder to shoulder with him”


Types of Training

1) On the Job Training:Every day, around the world, restaurant members receive on-the-job training and coaching in skills and procedures essential to their work.

2) Classroom Training:Classroom courses, developed and led by training experts, prepare outstanding restaurant employees for advancement.


Types of Training

3) Computer-Based Training:A new computer-based training system is bringing interactive learning experiences to crew members and managers right in the restaurants.


Levels of Training

1) Crew Member’s Training:

. Crew members are trained extensively on all food safetAt McDonald's, training never. Trainees work while they learn the operational skills necessastopsy and food handling processesry for running each of the 25 positions in restaurant - from front counter to the grill area.


2) Manager’s Training:

McDonald's is dedicated to professional training and development. The average McDonald's restaurant manager spends more than 2,000 hours over four years in training of one kind or another. This is about the same amount of time that a typical four-year college student spends in the classroom.

Levels of Training


Conclusion about the Training

"." Part of training focus ensures that every one of our employees, from regional managers to crew members, understands Ray Kroc's prescription of Q, S, C and V - quality, service, cleanliness and value," says Mr. Khalid, "That's what brings people into our restaurants day-in and day-out. Our training also shows them how to serve one burger to one person at a time, thousands of times a day


Specific Training Courses

1. Floor Management Course (FMC)

2. Management Development Program (MDP)

3. Operations Consultant Course (OCC)

4. Training Consultant Course (TCC)


Performance AppraisalMission Statement:

"None of us is as good as all of us."

According to Country HR Manager:

“To embed our values, we give our people 360-degree evaluation, with inputs from superiors, peers, and subordinates. These are the roughest evaluation we get, because people hear things about themselves they’ve never heard before.”


Performance Review is a formal process in McDonald’s twice a year where each employee is evaluated in order to determine how he or she is performing. The appraisal process in McDonald’s includes PA forms for every particular job which involves:

- International McDonald‘s standards.

- Assessing the employees’ actual performance relative to these standards.

- Providing feedback to the employees.

Performance Appraisal Process


Out Standing

Excellent

Good

Need Improvement

Levels ofPerformance Appraisal

After giving the total grade to the employee the appraiser writes down about the strength and the areas needing improvement of the employee.


IncentivesMission Statement:

“The best results come when you combine profit sharing with greater worker involvement and give employees information about the Company’s financial performance.”

1. Cash Based

2. Non Cash Based

Types of Incentives


Cash Based Incentives

• Attendance Allowance

• Annual Allowance

• Medical Allowance

• Hard Soft Furnishing [HSF]:Once in every year certain categories of employees can furnish their houses with the carpet, furniture, curtains etc at the McDonald’s expense.

• Leave Fair Assistance [LFA]:Once in two year managerial level employees are allowed to choose any area for tourism in Pakistan with family for 10 days.


• Crew of the Year

• Crew of the Month

• Branch of the Year

• Access to gift certificates

• Merchandise

• Free food

Non Cash Based Incentives


Benefits

When employee joins the McDonald's management team, he will receive the following:

Profit Sharing: Fully funded by McDonald's. Share in the profits of the most successful quick service restaurant in the world.

Vacation:Increased vacation time per years of service.

Mission Statement:

“We know we can’t afford everything for every one but neither do we deny to any one.”


Benefits

Leaves: McDonald's employees can also apply and obtain a leave of up to two months for personal reasons or to study for examinations or school projects.

Company Car:Restaurant managers are eligible for a company vehicle after only three years of service.

Educational Assistance:McDonald's offers an educational assistance program for its employees.


BenefitsSocial Activities: Enjoy a variety of activities with his team which could include an annual Convention, summer picnic or outing, Eid Party etc. Uniform: All the employees accept those working in the offices are given uniforms

Flexible hours: The restaurant opens for business 18 hours a day and that means work at McDonald's can fit into anyone's schedule. Schoolwork, family or personal activities can be scheduled around working hours.


Workplace Safety

“McDonald's restaurants have workplace safety programs in place to ensure that McDonald's high safety standards and procedures are clearly communicated and reinforced day-to-day. As an important member of McDonald's team, Employee will be taught to identify and report any potential hazards and encouraged to suggest ways that health and safety can be continually improved.”


Special Precautions• Use gloves

• Apron

• Hand Cleansing Gel (HCG): After every 30 minutes, there is a call from the floor Manager to all the employees on the floor to apply HCG on their hands to kill the bacteria.

• Hand Washing: After every 1 hour, there is call from the floor manager to all employees on the floor to wash their hands.

• Tender Loving Care (TLC)

• Fire prevention program


Separation:-

Reasons:

1)Disciplinary:

Violation

Stealing

Confrontation

2) Performance:

Poor Performance


Country HR ManagerMian Tahir Javed’sMessage

“People are hired on the basis of their personality traits (i.e. education, family, social class, style, experience, etc), but are fired due to character traits (i.e. dishonest, cheater, untruthful, corrupt, etc.)”

• No doubt McDonald's is a huge giant size organization but it also has some weaknesses.

• Provision for part time employees.• One Female manager must be in every

branch.• McDonald's must start its services

for customers as well as product.• Recruitment must be conducted for

higher posts.


SUGGESTION AND

RECOMENDATION

• Selection process should be clear as transparent.• There should be proper and flexible

arrangements for training of managerial level employees.

• Job enlargement and job enrichment should be applied for retention of employees.

• There should be more than one feed back session for improvement of performance of employees.


SUGGESTION AND

RECOMENDATION


McDonald’s on Web

McDonald’s International

http://www.mcdonalds.com

McDonald’s Pakistan

http://www.mcdonalds.com.pk

BIBLIOGRAPHY

http://www.mcdonalds.com/

http://www.mcdonalds.com.pk/


ReferencesURL:

http://www.mcdonalds.com.pk

Other sources:

Notes provided by the Country HR Manager,

http://www.mcdonalds.com.pk/

• Interview• Questionnaire• Observation• Portals of Company• Catalogs• Annual Report


Data Collection Methods


Interview Questions

How many workers working in your organizations?What is the current situation of your organizations?From where you recruit your employees?What is your recruitment process?On which media you generally advertise?Do you recruit through any agency?Do you recruit on internet?Do you recruit according to seasons?Do you use new technologies to predict

personnel requirement?

• Do you follow merit policy or some reference?• What are your communication systems?• Do you give any break to your employees

during working time?• Is smoking prohibited or allowed in your

organization?• Have you equal opportunity to managers

and clerical staff?• What is your policy for employees

vacations and leaves?• Do you have any orientation program?


Interview Questions

• What is your training process?• How do you predict personnel requirement?• Do you have any morality program in your

organization?• Do you give any diploma to employees

who complete their trainings?• How you access that current employee

need training? • Is there reward for the person, who do

something for organization?


Interview Questions


ThankYou

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My Perception

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