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Human Resource Management

Human Resource Management


• Introduction
• Recruiting Goals
 Factors that affect recruiting efforts
 Constraints on recruiting efforts
• Recruiting: a global perspective
• Recruiting sources
 Internal search
 External search
• Recruitment alternatives

It refers to the process of screening and

selecting qualified people for a job at an
organization or firm. It is a linking activity
that brings together those with jobs to fill
and those seeking jobs.

• The business began in 1940, with a restaurant

opened by brother Dick and Mac McDonald in San
Bernardino California.
•Their introduction of the “speedy service system” in
•McDonalds restaurants are found in 119 countries
and serve nearly 47 million customers each day.
•McDonalds operates over 31000 restaurants
worldwide, employing more than 1.5 million people.

Human Resource Management

• September 1998, Lahore
• Operating in 6 major cities
• Network of 20 restaurants

“when you are green you are growing”

Human Resource Management

McDonald's Pakistan

• McDonald’s Pakistan is part of the Lakson

Group of Companies, a leading business
house in Pakistan.
• With a head office in Karachi and regional
office in Lahore.

Human Resource Management

McDonald's Mission

…to be our customers favorite place and way to eat

with inspired people who delight each customer with
unmatched quality service, cleanliness and value every

Human Resource Management

Recruiting goals
• Significant pool of candidates
• Diversity
• Encourage qualified candidates
• Discourage unqualified candidates
• Minimize the cost

Human Resource Management

…In McDonalds

• Quality recruitment
• Employees with core-competencies
• Addressing diversity in organization

The varied personal characteristics that

makes the workplace heterogeneous. This
can be along the dimensions of race,
ethnicity, gender and sexual orientation.
…In McDonalds

• 100% diversity is followed in McDonalds

(ratio depends on market)
• No discrimination
• Worker diversity resulting in higher profits
Factors affecting recruiting efforts

• Size
• Employment conditions
• Working conditions
• Salary and benefit packages
• Skill shortages
…In McDonalds

• Culture (flexibility, opportunity, equality

and diversity)
• Its demographics and norms
Constraints on recruiting efforts

The factors that can limit recruiting outcomes.

Lets focus on five specific constraints:
• Organization image
• Job attractiveness
• Internal organizational policies
• Government employees
• Recruiting costs
Organizational image

Poor image may limit its attraction to

applicants. Engaging in practices that
result in polluted environment, poor quality
products and unsafe working conditions
…In McDonalds

Their overall image and local reputation as

an employer is shaped daily by many
• Benefits programs
• Compensation packages
• Fun working place
• Employee development programs
Job attractiveness

Jobs should not be

• Boring
• Hazardous
• Anxiety creating
• Low paying
• Lacking in promotion
…In McDonalds

• Respect and recognition

• Value and leadership behaviour
• Total compensation
• Learning, development and personal
• Resources to get the job done
Internal organizational policies

“promote from within where ever possible”

…In McDonalds

McDonalds form policies according to the

fluctuations in market and availability of
Government influence

An employee can no longer seek out

preferred, individuals based on non-job
related factors such as physical
appearance, sex or religious background.
…In McDonalds

As per other MNC’S McDonalds is also

greatly affected by government
intervention. Thus it also follows minimum
wage law.
Recruiting cost

• Expensive
• Budget restrictions
…In McDonalds

Being a MNC McDonalds does not face

recruiting cost as a constraint
Recruiting: a global perspective

• Home-country nationals
• Host-country nationals
• expatriates
…In McDonalds

There are currently no expatriates and

home-country nationals working in
McDonalds. But there are many host-
country nationals serving McDonalds.
• McDonalds hire employees within the
country it is working in.
Recruiting sources

Some employers find it necessary to use

several recruiting sources in order to
generate a sufficient number of qualified
• Internal search
• External search

…internal search:
It is when the business looks to fill the
vacancy from within its existing workforce.
• Employee referral
A recommendation from a current employee
regarding job applicant
…In McDonalds

Employee referrals lower level

Professional acquaintance higher level

…external search
It is when the business looks to fill the vacancy from
any suitable applicant outside the business
• Advertisements
• Employment agencies
• Schools, colleges and universities
• Professional organization
• Unsolicited applicants
• Cyberspace recruiting

To attract employees advertisements must

arouse hope or desire, they should have
• Prominent display
• Motivating content
• Proven outcomes

 Blind box-ads
Employment Agencies

It is an organization which matches

employers to employees. Three types of
agencies come under this heading:
1. Public or state employment agency
2. Private employment agency
3. Head hunters
Schools, Colleges and Universities

May provide entry-level or experience

workers through their placement services.
May also help companies establish co-
operative education assignments and
Professional Organization

• Publish list of people for vacancies

• Placement services at meetings
• Control the supply of prospective applicant
Unsolicited Applicants

When the company has no current

openings, the applications can be kept on
file for later needs. The number of
unsolicited applicants depends on:
• Economic conditions
• The job seeker’s perception
Cyberspace Recruiting
By adding a recruitment section to their website to recruit
new employees which carries typical information such
• Employment advertisement
• Qualification sought
• Experience required
• Benefits provided
• Organization products
• Organization services
• Corporate philosophy
• Mission statement
…In McDonalds

External recruitment totally depends on demand

of the organization
• Advertisement
• Cyberspace recruiting
• Schools, colleges and universities

70-75% employee hiring is done through online

Recruiting alternatives

• Temporary help services

• Employee leasing
• Independent contractors
…in McDonalds

The part time and temporary workers are do

hired by McDonalds as it saves money
and increase the worker flexibility.
McDonald's People

Mission Statement:
“We value you, your growth and your

Human Resource Management

Training Training
Consultant Coordinator


Equipment FM
Consultant 2nd
Op. FM
GM Manager Op. Res. 1st

Operations Consultant Manager Asst

Op. 2nd FM
DO Manager Asst
Country FM
Production Manager

Asst. Coordinator
Country HR M
Karachi HR
HR Coordinator
Manager HR M

Real Estate
Human Resource Management
•Brand Recognition

•Leader in Quick Service Food Industry

•World’s Largest Burger Chain
•Over 30,000 Stores, $41 billion in sales
•Strongest International Presence
•120 Countries
•Real-Estate Holdings
•Prime time high-traffic locations
•Have control over what to do with the land
•Easily Recognizable Product
•Big-Mac as Trademark

•Variety Sources of Income

•Franchise – Rent and %-of-Sales
•Company-owned Restaurants
•Brand Portfolio of Restaurants
•Franchise Business Model
•Customer Service Level

•No Flexible Timings for employees

•Time hours
•Working environment

•Poor Marketing

•Not attentive to customer’s needs

•Failed of healthy menu/low fat products
•High Employee Turnover
•Nature of Industry at 300%
•Higher than Rivals
•Believed to be One of the Factors for Poor
Service Rankings

•Growth in Global Food Service Industry

•International Expansion
•Grow more than 200 billion

•Initial Public Offerings in Other Countries

•Success in US and Japan
•120 countries
•Acquisition of Other Restaurants
•Diversifying Brand Portfolio

•Retail Sales of Merchandises

•McDonald’s family characters
•License Agreements
•Increased Competition from Various Industries
•Quick Service Restaurants Industries
•Non-Traditional outlets
•Health Conscious Consumer Trend
•increased consumption of fried food, junk food, and
red meat
•Value-Conscious Consumer Trend
•Demand Quality for Good Value for Price

•Saturation of fast-food Market

•Aggressive Expansion no longer an option

•Price War Business Practices

•Weak Economy – attract value conscious
•Hurt Profitability
Mission Statement:
“We know we can’t afford everything for every one but
neither do we deny to any one.”

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
Increased vacation time per years of service.

Human Resource Management

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.

Human Resource Management

Social Activities: Enjoy a variety of activities with
his team which could include an annual Convention,
summer picnic or outing, Eid Party etc.

Human Resource Management

• Provision for part-time employees
• One female manager must be in every branch
• Recruitment must be conducted for higher posts
• Selection process should be clear and transperant
• There should be more than one feedback session for
improvement of performance of employees
“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,