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The HRM model emphasizes: The need to search for new ways of working.

. The central role of managers in promoting change. The treatment of workers as individuals rather than pan of a Collective work force. The encouragement of workers to consider management as "partners" rather than as opponents: 'us and us', rather than 'us and them'

largest food service company. biggest employers US, with over 1.7 million workers . 10,000 locations. franchises operated in over 32000 restaurants worldwide in 118 countries serving food to over 45 million people daily.

Don't worry about making money Love what you are doing and always put the customer firstAnd success will be yours!

Being the best means providing outstanding quality service and cleanliness so that the company makes every customer in every restaurant happy. To achieve this mission Macdonald's is focused on three worldwide strategies: 1 Be the best employer for the people in each community around the world. 2. Deliver optional excellence to the customers in each of the restaurants. 3. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of McDonalds system through innovation and technology.

In 1937, Patrick McDonald opened "The Airdrome" restaurant. Hamburgers and orange juice. In 1948, his sons introduced the "Speedee Service System", which established the principles of the modern fast-food restaurant. After they realized most of their profits came from selling hamburgers, cheeseburgers, french fries, shakes, soft drinks, and apple pie. In 1953, the McDonald brothers began to franchise their successful restaurant. In 1954, Ray Kroc, a seller of Multimixer milkshake machines, came to visit the restaurant. Kroc suggested that they franchise their restaurants throughout the country. He returned to his home outside of Chicago with rights to set up McDonald's restaurants throughout the country, Kroc's first McDonald's restaurant opened in Chicago, in 1955. McDonald's grew slowly for its first three years. By 1958, there were 34 restaurants. In 1959, however, Kroc opened 68 new restaurants, bringing the total to 102 locations.

McDonalds is part of the Lakson group of companies. McDonalds first restaurant has opened in September 1998 in Lahore. Karachi opened its first restaurant after one week. There are now 18 restaurants in four major cities of Pakistan: 7 in Karachi, I in Hyderabad, 9 in Lahore and 1 in Faisalabad.

Products
o o o o o o

Burgers Chicken, fish and pork Breakfast Beverages Desserts Other products

Customers
o o o o

Parents with two children Children Teenagers Business customers

Markets

Strengths:

It has a strong global presence and is considered as a market leader in both the domestic as well as the international markets. They own an active childrens charity by the name The Ronald McDonald House. It takes steps in adjusting the Ingredients and product offerings in order to comply with the upgraded health standards deemed necessary by the USDA. It earns revenue by fast food sales as well as a franchiser of restaurants. It has branded menu items i-e Big Mac, Chicken McNuggets,

which further promote McDonalds. It has located itself in major airports, cities, highways, tourist locations, theme parks. It has an efficient food preparation style that follows the process in a systematic way. It takes food safety extremely cautiously. It was the first to provide the customers about nutrition facts.

Weaknesses:
o It uses advertising that mostly targets

children. o Price competition with the competitors resulting in low revenue. o Lack of innovative products

o o

o
o

It can adapt to the needs of the societies and undergo an innovative product line. It can create new product offerings, use mobile text messaging to offer services that appeal to consumers. It can upscale some of its restaurant settings at luxurious locations to attract more customers. It can slow down the level of expansion in order to increase the profitability of the organization.

The recession negatively impacts the holding position

of the firm regarding its revenue streams, even though they are quite diversified. Foreign currency fluctuations are regarded to be a major problem as it uses standard pricing for its food items. More restaurants that are increasing their food offering and declining the price. Health issues regarding the fast food chain. Heavy investments on promotional campaigns which decrease the gaining of market share. Sued various times for unhealthy food, usually with addictive additives. Emergence of major fast food competitors: Burger King, Starbucks.

1.

Core functioning departments


1. 2. 3.

Food and beverages department House keeping Food production department

2.

Support departments
1. 2. 3.

4.
5. 6.

Marketing and selling Engineering and maintaining Finance, accounting and control Safety and security Administration Human resource

Job analysis:

HR specialist does not know the details of job as well as operating managers do. As job description is the process to understand the responsibilities of the job and in McDonalds it is done in these different ways.
1. Questionnaire 2. Observation

The hiring process has two components:


1. 2.

Recruitment. Selection Trainee Managers. Crew Members.

At McDonald, Hiring is done at two levels:


1. 2.

Recruitment

Process of generating a pool of qualified candidates for a particular job.

Types
Internal sources
Advertisement on intranet and bulletin board

External source
Advertisement in newspapers Advertisement on website internships

Selection
1. 2. 3. 4. 5. 6.

Screening of applicants Written tests Aptitude tests Reference checks Initial interview Relocation

Orientation
New employees get a handbook:- Working hours - Performance reviews - Vacations - Employee benefits - Personnel policies - Safety measures and regulations Common orientation to all:We value you, your growth and your contributions.

The training period for a crewmember is three months and for others it is one month or 10-15 days.
o Direct training o Training abroad

Training methods:
o On the job training o Classroom training o Computer based training

Levels of training:
o Crew members training o Managers training

The appraisal process in McDonalds includes PA forms for every particular job which involves:
o International McDonalds standards o

Assessing the employees actual performance relative to these standards

Levels of appraisals:
o Out Standing o Excellent o Good

o Need Improvement

Incentives:

Cash Based Incentives:

Cash Based Non Cash Based

Non Cash Based Incentives:


Crew of the Year Crew of the Month Access to gift certificates Merchandise Free food

Attendance Allowance Annual Allowance Medical Allowance Hard Soft Furnishing [HSF]:3 Once in every year certain categories of employees can furnish their houses with the carpet, furniture, curtains etc at the McDonalds 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.

Profit sharing Leaves Vocation Company car Educational assistance Social activities Uniform Flexible hours

McDonald's guides all the actions according: To organizational values as working in team. To feel passion for the work always offering the best of themselves. To be committed with the partners and with the mission of the company. To be entire in each one of the actions, to be leaders.

No doubt McDonald's is a huge giant size organization but it also needs some improvements which are McDonald's must start its services for customers as well as product. There should be more than one feedback session for improvement of performance of employees. Recruitment must be conducted for higher posts also to select more skilled persons.

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