Human Resource Management (HRM) by McDonald's (2023)

This report has analyzed and found what human resources management theories and techniques are actually implemented or practiced by human resource management at McDonald's. The field study carried out included a visit to the McDonald's human resources office at Notting Hill Gate in London. All practices were observed throughout the visit. The work culture and motivation factors at McDonald's as well as teamwork were also observed. Due to the ranking of recruitment, training, business strategies and performance management. After analyzing McDonald's books and website, he is able to explain the theories of human resources management and also some of McDonald's corporate values. Over the course of the study and research, it has emerged that McDonald's improves the recruitment of workers and employees and how they train their employees. The success of McDonald's is due to the employees and the different market strategies, so this task is to understand the HR strategies of McDonald's. The purpose of this study is to know in detail the recruitment and selection process and also about the training program at McDonald’s for their employees to achieve the goals of the company. Here we will also discuss the business strategies used by McDonalds to keep the better position in the market and the strategies used by McDonalds to respond to the new competition in the market. McDonald's performance management system also contributes to the achievement of goals; it contains the strategies for motivating employees.

COMPANY PROFILE

McDonald's was founded in 1954 in California, USA. McDonald's Corporation, together with its subsidiaries, operates as a grocery retailer worldwide. McDonald's franchises operate the McDonald's restaurants, which offer a variety of groceries, soft drinks, coffee, and other food and beverages. According to a survey, as of December 31, 2009, the Company operates or operates 32,480 restaurants in 117 countries, of which 26,215 were operated by the franchisees and 6,265 by the Company.

The McDonald's Corporation is a franchisee and operates its restaurants in the hospitality industry. McDonald's supplies the products to most McDonald's restaurants where McDonald's owns and operates independent distribution centers approved by the company. Where restaurant staff and staff are highly trained in storing, preparing and handling produce and providing good customer service. In February 2009, the Company sold its interest in REDBOX AUTOMATED RETAIL, LLC

McDonald's franchise operates McDonald's Restaurant in the food and service industry. These restaurants offer varied yet inexpensive menus in more than 117 countries worldwide. Most restaurants are operated by the company or by franchisees, franchisees are included under the franchise agreement, and foreign-related markets and development licenses are included under license agreements.

McDonald's Human Resources Strategies

recruitment

As we know, McDonald's is the largest family restaurant company in the world. Providing by far the best family dining experience is McDonald's vision. To achieve this, we put people at the center of everything we do, and that applies to our employees as well as our customers.

People perform well when they feel more comfortable in their job, and McDonald's recognizes this, so McDonald's strives to create the right and good work environment for everyone. That's a lot of people to consider, which is why McDonald's strives to offer a variety of rewards and benefits that fit all types of lifestyles. McDonald's succeeds in achieving the best work experience for its employees; They aim to bring the restaurant experience to the customers. Employees working at McDonald's You will not only be part of one of the largest global brands, but also an evolving organization that provides an environment of flexibility, equality, diversity and opportunity. Reflects the society and communities in which McDonald's operates. McDonald's probably offers the most diverse cultural work in Great Britain. People come to McDonald's from all walks of life and they share a common approach, i.e. H. a positive one. HIRE THE SMILE is McDonald's policy when hiring crew members and this helps foster a workforce of employees with a positive attitude and attitude, in return we deserve a happy and friendly atmosphere. McDonald's believes that it's not just about hiring happy and cheerful employees, it's about making them smile through everything. McDonald's offers rewards and benefits that fit your lifestyle, whether you're a part-time employee funding your high school or college education or you're a trainee business manager straight out of college.

Recruitment and selection at McDonald's

Recruitment of Suitable Applicants: Whether employees wish to join as a Crew Member or Trainee Business Manager, McDonald's always offers exceptional support, real advancement opportunities, a range of excellent compensation and all the potential that comes with working at McDonald's world-renowned global brand.

Team members

McDonald's has developed a three-step application process for prospective crew members to ensure they are a good fit for everyone. The first application phase is online; People go through an online process that includes a few questions. If the candidate is successful in the first phase, they send the candidate the invitation for an interview with the HR manager, after that they send the successful candidate for (OJE) on-job assessment and for the restaurant interview with the manager. The on-job assessment serves two purposes: First, it helps and provides a good opportunity to compare the candidate's customer service skills to what is required to be a successful member of the McDonald's team and allows the candidate to do so Also, recognizing that McDonald's high-energy environment suits her preferred work style. This OJE process takes approximately 15 minutes and the candidate will work in one of the customer facing areas and the candidate will be given full instructions on what to do. Additionally, the candidates will have an interview with the General Manager and the whole process will take around 30 minutes to evaluate the candidates.

Crew Benefits:

• McDonald's grants 28 days of paid vacation per year.
• After three years of service, they offer free private health care.
• Shareholder pension fund.
• Bonuses related to restaurant services.
• Offers vouchers from Argos, Thomas Cook, Debenhams, Marks & Spencer and
• House of Fraser is recognized at service milestones
• Annual salary reviews
• Great discounts, around £13 at Alton Towers and Thorpe Park. It's about £12
• 50 percent savings at LEGOLAND
• 10 percent discount at dress-for.com
• £63 savings on the special BSM learner starter pack
• 25% off many short breaks and vacations
• 65 percent discount in universal cycles.

welcome meeting

After completing the entire application process and selecting candidates and hiring a crew member, they will be invited to the welcome meeting at their chosen restaurant or recruitment center. In this meeting you inform and engage new starters for the one hour in this meeting. The meeting includes watching a DVD that contains important information about McDonald's and also allows for interaction between the manager and the new starter. The second part is the mandatory orientation. It is an online process that includes information on the health and safety test that the newcomer must complete in their own time. The beginning of the orientation begins with the tour of the store highlighting key health, safety and food safety procedures. And it is also recommended that it should be the last for the first two hours of the shift.

Business administration trainee

A Business Trainee takes part in an award-winning management training program and the Business Trainee Manager must demonstrate strong leadership skills.

Earning a spot on McDonald's management development program is no small feat. It is not a short-term commitment, but a long-term career decision. McDonald's wants to ensure that the candidate and McDonald's are a good match, so candidates must go through the four-step selection process. The first step is all about the screening process that ensures candidates meet the basic criteria. The successful candidates will be asked to complete the next step which includes the personality questionnaire that the candidate must complete online. This ensures that the candidate has the desired qualities and preferred working style. After that, the next step is based on Restaurants OJE or On Job Evaluation. The candidate will spend a day doing a real job learning what there really is to do in a McDonald's restaurant. After completing the OJE process, the last step is the selection process, i. H. an interview with the senior manager. First, the trainee business manager has to complete an intensive 18-week management development program. This program provides the candidate with thorough training in the business of McDonald's and also trains the candidate on the commercial skills needed to flourish and develop into an effective assistant manager. Later, an Assistant Manager can be promoted to Business Manager or Operating Consultant, i.e. Area Manager, as desired.

Advantages

Candidates receive a professional rewards package that includes a starting salary of up to £21,500 including London weighting. There is also the possibility of a quarterly bonus within the week of joining. The candidate could run their own restaurant under the age of three and also earn a salary and a £45,000 package. The successful candidates can expect additional

• Vacation of 5 weeks per year and can be increased to 6 weeks from April 2009
• Annual performance related to salary review
• life insurance.
• retirement provision
• After six months of service, they cover private health care as well as a company car or cash alternative.
• Help with the phone bill at home.
• Eight weeks paid leave for every 10 years of service.

Trained at Mc Donalds

Including full development. McDonald's constant success is based on the highest principles of quality, service delivery and cleanliness to the customer in each of McDonald's restaurants. These standards are achieved by the well-trained crew member and also the well-trained manager. McDonald's policy of providing career opportunities that allow workers to improve and develop their full potential. This policy program for both crew and operations management and a career advancement allowing for a “first job” for employee advancement to leadership through merit-based promotions.

Around 55,000 employees are trained at McDonald's every year. McDonald's spends around £10m each year on staff training to give people valuable skills.

McDonald's work experience is a foundation for future employability, especially as the UK labor market continues to develop. As the demand for skilled employees increases, a job that offers ongoing education with a leading company is the best career investment. People from all over the world are living McDonald's first job recognition by cooking it up with ingredients for success.

Training of employees

The Employee Education Program at McDonald's is a workplace experience that allows others to learn the skills that are transferrable to other industries. At McDonalds, the entire new employee begins their experience with an introduction to the company. Here the instructors work shoulder to shoulder with other trainees as they learn the operating skills to operate all 11 workstations in each restaurant, from the front counter to the grill area. Each individual employee learns how to use modern catering equipment and acquires knowledge of McDonald's operating processes.

All manuals and videocassettes cover every detail starting with preparing a Big Mac and they also teach how to provide customers with exceptional service. Not only these employees also learn to train and supervise other people. First-time employees at McDonalds, McDonalds are an important "mentor" who instills the interpersonal and organizational skills necessary to perform effectively in any job. McDonald's business requires effective teamwork, discipline and accountability. The outcome of McDonald's experience is the improvement in self-confidence and communication skills, and McDonalds emphasizes customer care and attitude where organizational professionals are known to be an essential element to business success.

McDonald's business strategies

As we know, McDonald's is the most successful fast food chain in the world. In the success of McDonald's we can perhaps easily identify a number of successful business strategy operations. From time to time, McDonald's enriches its own brand image through various social activities and sponsors special events and sports such as

The reason behind McDonald's success is that McDonald's implements many strategies, such as Porter's competitive strategies model, which includes differentiation and leadership at low cost, or Miles n Snow's strategy typology, which includes the strategy of prospectors, defenders, reactors and analyzers described. It is evident that McDonald's must implement or select the most appropriate strategy for its success.

How does McDonald's execute its business strategies?

McDonald's business structure is based entirely on a geographic structure. Because when we access their website, they ask the person to select the country they are interested in. In fact, McDonald's has divided its operations into five geographic areas.

As the figure shows, 65% of McDonald's restaurants in the United States and Europe generate 75% of sales. McDonald's key strategic approach to maintaining its leadership position in the market is to retain its major markets while growing its business in emerging markets. However, there are different consumer groups in different countries with different tastes and requirements. Therefore, each entity with full geographic capabilities of McDonald's had to take full care of marketing and manufacturing its products in that particular region. Through this regional or geographic structure, McDonalds not only satisfies the needs of consumers in that or other geographic areas, but also pursues maximum local development. McDonald's main strategy is that they produce and market the slightly different types of products in different geographic areas, and even those products have different prices. Jim Skinner, the chairman of McDonald's, once said that if you're looking for a one-button command center to serve our restaurants in every corner of the world or in different countries with different cultures, you won't find it.

Although there is a QSC&V quality service, cleanliness and value philosophy are omnipresent. McDonald's is right when it understands the consumer that the customer needs fast service, affordable prices and better standard hygiene. In most countries, McDonald's has a similar product where they serve well, including beef, chicken and bread potatoes and milk. In different countries, consumers have different preferences and needs, and McDonalds launches the new products for their regional customers from time to time.

Influence of the external environment on McDonald's strategies

There are two areas that affect McDonald's strategies, namely the competitive and the social concept.

Competitor: McDonald's is unlikely to be #1. In an annual consumer satisfaction survey, McDonald's was ranked last among fast food restaurants since 1992, and in Q4 2002, McDonald's announced its quarterly loss for the first time as a reason for consumers switching to McDonald's competitor, e.g. Which led to McDonald's having to close its 719 malfunctioning restaurants around the world? And all of those results proved that McDonald's may no longer be competing in the fast-food market. If McDonald's does not adapt to the external environment changes, they can gradually decrease and even be replaced by other competitors. To maintain market share and grow sales and profits, McDonald's must respond to competitive threats. In 2003, McDonald's introduced its new product McGriddles sandwiches as part of breakfast in the US and Canada, and in the UK they introduced the premium and savory McChicken, and in other countries McDonald's tried to please customers by offering premium offered products at affordable prices. Even more McDonald's offers a good selection with Happy Meals for the kids. For example, Happy Meal includes chicken dishes, fruit drinks with added sugar, and coffee that appeals to adults. And these products were made to attract existing customers and attract new customers. In addition, McDonald's has renewed its menu and McDonald's is also remodeling and relocating its restaurants to make the environment more convenient for customers. McDonald's differentiates itself by creating more relevant experiences to attract customers, e.g. B. by allowing customers to access the Internet using wireless technology.

Social Problem - Healthy Problem: As the economy grows, so do people's living standards. People are more worried about their health now. There is no question that McDonald's has made itself more convenient for the customer. Most people think that such fast food restaurants are not good for health. The WHO report showed that such foods not only cause childhood obesity, but can also cause cancer. Health issues have been the biggest hurdle in the development of McDonald's customers switching to healthier competitors like Subway and KFC products. McDonald's has responded to this healthy trend. In order of competition, McDonald's added the salads and other healthier items to its menu. When a mother comes to the restaurants, she not only finds a happy meal for her children, but also a meal for herself. The lighter and healthier option encourages the existing customer to come back more often as there is more choice.

Focus on children: Different tastes and local needs do not matter McDonald's pays great attention to children in all countries. McDonald's has created happy land for the kids and offers them amazing happy meals with great toys.

And even more McDonalds have just launched the computers with games that engage children's imaginations while shaping their personal characteristics. There are 3 main reasons for McDonald's to focus on the kids viz.

McDonald's largest consumer group is children, and McDonald's is said to be their favorite place. The children are familiar with the “happiness” brand culture.

McDonald's belief to focus on children is that it will build a stable business, and also provide the best booster to encourage the whole family to come to McDonald's, for example, McDonald's can give the whole family other products with Happy Offer meals for children.

By building brand loyalty among children, McDonald's is more likely to be successful today and in the future.

PERFORMANCE MANAGEMENT

Employees are the company's most important resources. They ensure that finance, industry and resources work together to make the organization work. Today, some of the senior managers think that financial rewards cannot remain the only form of employee encouragement or inspiration. It is necessary to consider the needs of employees as a unit, leading to the search for non-financial incentives. There are many non-financial incentives associated with employee need satisfaction, such as employee participation in decision-making, self-actualization, personal growth, and others.

The organization's full utilization of human resources is the most important advantage that enables the organization to conquer the position in the global market.

McDonald's thrives on the logical involvement of staff in problem solving. The company follows the principle "The result is made by one man", McDonald's regards its employees as the primary performers in the area of ​​quality and productivity. McDonald's built its success on the theories of motivation and changed only a few aspects of it. McDonald's follows four simple principles that offer opportunities to improve employee performance:

The organization needs to innovate the different motivation system for each department.

There must be a clear and achievable goal for the staff, it's better to have a goal for each person

There has to be a change of destination. The manager must have two goals for the year. For example, the first manager checks the number of employees and customers, then the manager checks the number of returning customers, and then the manager should analyze the increase in sales. This process offers the opportunity to find out the qualities and skills of the employees and also to check the new way of working.

The salary increase must be affordable for the employee.

McDonald's implements three components of motivational theories, namely financial incentives, non-financial incentives, and social policies. All three of these components are mentioned in Maslow's theory of motivation. Although Maslow describes that all needs must be one after the other. The research of McDonald's and its strategy & structure shows that only immediate fulfillment of employee needs and thus employee performance can be increased. It is not important to meet all needs of all levels. In reality, every human being has a set of needs in every present moment.

McDonald's has an effective motivational system that allows employees to increase their performance and also increases the productivity of the company. McDonald's administrative staff used the situational approach, which turned out to be the most relevant to the current situation. The administration department used the special techniques to create motivational theories. After adopting the assembly line method in food preparation, McDonald's has ensured the standard quality of production and high output. In addition, McDonalds has employed a current motivational strategy based on motivational theories.

CONCLUSION AND RECOMMENDATION

In the discussion above, we only got to know about McDonald's HR strategies. The assignment discussed four McDonald's HR strategies: recruitment and selection, training, business strategies, and management performance system. McDonald's believes that the growth and success of restaurants and businesses is achieved and achieved with the help of their employees. It is McDonald's aim and goal to recruit the best employees, to retain them through a range of further training opportunities appropriate to their position and to promote them if they are suitable. Recruitment policies, procedures and practices demonstrate purpose to achieve its objective. It is analyzed that there must be some merit and promotion activities for the crew member like McDonald's offered to its business management trainee. If McDonald's fails to anticipate new competitors, shifting consumer interests, and innovative technology and social trends, there's a good chance they'll lose market share. In 2003, McDonald's decided to shift its focus to increasing sales at existing restaurants. To achieve the main goal, McDonald's strategy needs to attract more new customers while also encouraging existing customers to visit restaurants more often, build brand loyalty, and eventually create long-term profitable growth for the company.