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ST.

HRM
PRESENTED TO:
PROF: SOHAIL SALEEM
PRESENTED BY:
ADEEBA ASLAM
SUNNA AHMED
HIRRA PERVAIZ
MCDONALD’S CORPORATE PROFILE

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


sales, with about 32,000 restaurants serving burgers and
fries in about 120 countries. (There are nearly 14,000
Golden Arches locations in the US.) The popular chain is
well-known for its Big Macs, Quarter Pounders, and
Chicken McNuggets. Most of its outlets are free-standing
units, but McDonald's also has many units located in
airports and retail areas.
PRODUCTS
McDonald's is proud to offer a wide variety of high-quality, great tasting
menu options. The restaurants offer substantially uniform menu
consisting of hamburgers and cheeseburgers. The menu includes the
following
Big Mac
Quarter Pounder with Cheese
Filet-O-Fish
Several chicken sandwiches
French fries
Chicken Mc Nuggets
Salads
Low-fat shakes,
Mc Flurries
Sundaes. Cones
Pies
Cookies
Soft drinks as well as other beverages
COMPETITION
McDonald’s restaurants compete with
international, national, regional and local retailers
of food products. McDonald’s competes on the
basis of:
• Price
• Convenience
• Service, by offering quality food products.
Its competitors include:

• Burger King
• Wendy’s
• Hardees
• Taco bell and
• KFC
ORGANIZATIONAL ANALYSIS
EXTERNAL ENVIRONMENT
 POLITICAL
 ECONOMICS
 SOCIAL/CULTURAL
 TECHNOLOGY
 LEGAL
 ENVIRONMENT
SWOT FRAMEWORK ANALYSIS
STRENGTHS
• Leader in the Quick Service Sandwich Industry,
• Brand Recognition
• Strongest International Presence and Highest
Worldwide Sales
• Real-Estate Holdings
• Easily Recognizable Product
• Variety of Sources of Income
• Franchise Business Model
WEAKNESSES

• Continuous Struggles in Offering Value-Priced


Items and Expensive Items

• High Employee Turnover Rate


OPPORTUNITIES

• Growth in Global Food-Service Industry


• Initial Public Offerings in Other Countries
• Acquisition of Other Restaurants
• Retail Sales of Merchandises
THREATS
• Increased Competition from Various
Industries
• Health Conscious Consumer Trend
• Value-Conscious Consumer Trend
• Saturation of US fast-food market
• Slow Growth in the Sandwich Segment
• Price War Business Practices
CORPORATE STRATEGY

It includes the following,

• Philosophy

• Vision
CORPORATE
STRATEGY

CORPORATE
GROWTH DIVERSIFICATION
SOCIAL
STRATEGY STRATEGY
RESPONSIBITY
Vision:
McDonald’s vision is

“ TO BE THE WORLD’S BEST


QUICK SERVICE RESTAURANT
EXPERIENCE.”
To achieve this vision, McDonald’s is focused on
three worldwide strategies:

• To be the best employer for its people in each


community around the world,
• To deliver operational excellence to its
customers in each of its restaurants, &
• To achieve enduring profitable growth by
expanding the brand and leveraging the
strengths of McDonalds system through
innovation and technology.
Philosophy of McDonald’s:

Company’s philosophy is

“ Q.S.C. & V.”


GROWTH
STRATEGY

IMPROVING
ADDING MAXIMIZING
INTERNATIONAL
RESTURANTS SALES & PROFIT
PROFITABILITY
• Adding restaurants can be achieved with
people and capital resources.
• Maximizing sales & profit can be
accomplished through better operations,
reinvestment, product development, effective
marketing and lower development costs.
• Improvement of international profitability can
be achieved as economies of scales are
achieved in individual markets.
CUSTOMER SATISFACTION:

• Healthier Foods
• Food Quality and Nutrition
• Larger Menus
• Restaurant Diversity
• Kids
UNTAPPED MARKETS:

• Diversification:
Recently McDonald’s began a series of acquisitions. Now the company
operates several restaurants concepts, such as Aroma café, it’s a small
chain of coffeehouses serving prepared sandwiches and pastries,
Chipotle Mexican Grill, it’s a fresh max grill serving gourmet burritos and
tacos and Donatos Pizza, and it’s a restaurant business that sells pizza,
subs and salads. The company also welcomed Boston Market, a U.S.
chain specializing in fresh, convenient meals, featuring fresh vegetables,
sandwiches, salads, and side dishes to the “MCFamily”.
• International:
currently operates in 119 countries, added about 650 stores in
Asia/Pacific, 550 in Europe, and 350 in Latin America in the year 2000
and plans to add more during 2001.
• SOCIAL RESPONSIBILITY:
Healthy Growing Up:
• It’s a program designed to encourage students from
kinder garten through third grade to adopt lifelong
habits of good nutrition, exercise, and positive self-
esteem,
• Book Some Time Together:
McDonald’s partnered with the American Library
Association to encourage families to read together
through their local libraries.
• Cartoon All Stars to the Rescue:
McDonald’s sponsored this animated, anti-
substance abuse television special, which was broad
cast on every major network in North America.
HUMAN RESOURCE
STRATEGY
Managing Diversity/ Labor
Shortages
McDonald’s has created program
• McJobs for disabled people age of
16-60,
• McMasters
is a nationwide program that
identifies, recruits, trains and
retains workers who are 55 years of
age and older.
• Equal Employment
opportunity
McDonald’s has made it
a point to attract and
retain a diversified
workforce. It has been
listed as one of the Top
Companies for
Minorities at Work.
Cultural Differences
Offers managers solid diversity
training, including workshop
designed to help managers so
that they have full advantage of
what everybody brings & also
want to ensure that people at all
levels of McDonald’s bring their
energy and creativity into the
work environment
HUMAN RESOURCE FUNCTIONS
JOB ANALYSIS
• In McDonald’s job analysis done on the basis
of interviews.
• In MacDonald’s they have predetermined
standards on which employees are awarded
on the basis of their skills, knowledge and
experience.
Recruitment, Selection and
Retention :

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.
• Recruiting Suitable applicants

Positions are generally advertised in


the restaurant. The company's
recruitment history shows this is the
best method of hiring quality staff,
McDonald's also uses local job
centers, career fairs and other local
facilities. It is vital to use effective
hiring material with a clear message
targeted at the right audience.
• 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.
McDonald's inducts all new
employees into the business
through a Welcome Meeting,
which they must attend.
The Welcome Meeting gives an
overview of the Company,
including:
• Job role
• Food, hygiene and safety training
• Policies and procedures
• Administration
• Benefits
• Training and development.
• RETENTION
McDonald's believes that the success of the
restaurants and the company is achieved
through the people it employs.
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
• classroom-based training sessions
• McDonald’s also has its own “HAMBURGER
UNIVERSITY”.
• McDonald’s also offers its mangers the solid
diversity training program. Training competencies
are also extend to McDonald ‘s QUALITY
MANGEMNT programs ,
• McDonald functions as a job training program by
teaching youth discipline and the basis of how to
work.
• McDonald's Management Development
Curriculum takes new recruits from trainee
manager to Restaurant Manager.
• The Management Development Curriculum is
divided into four key programs:
 Shift Management
 Systems Management
 Restaurant Leadership
 Business Leadership
• PERFOMANCE APPRAISAL SYSTEM OF
MACDONALDs:
Performance appraisal method:
• Graphical rating scale, and

• 360 degree feedback


• Rewards
The rewards are given on
the basis of the
performance There is a
raise of 10% in salary and
if performance is also
counted then 20%
increment given at any
time 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 a
diverse 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
• Profit sharing
• Preferred provider
organization (PPO)
• Educational assistance
program
• Sabbaticals
• Child care
Human Resource Management System
• McDonald has implemented K/3 HR Personnel
Management, Payroll Management and Report
module, as well as Performance Management,
Employee Capacity Quality module.
• McDonald has built HR management platform
and finished planning for organization structure,
managed personnel files, input dynamic human
resource data and managed payroll.
• Base on K/3 HR System Personnel Management
and Payroll Management, McDonald not only
records employee transfer, promotion and
transfer history but also adjusts the related
workflow.
• If a resigned staff come back and re-join in, K/3
HR system checks ID Card Number and lists all the
history of the staff, which helps the manager
make proper decision.
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 ongoing
training relevant to their
position and to promote
them when they are ready.
McDonald’s Framework for “Plan to Win”

Key Elements Relevant Measures

People Place

Well trained Clean


Fast and friendly service Relevant
Delighting customers Attractive

Product Promotion

Food tastes great Consistent with the brand


Lots of choices Relevant to the customers
Hot and fresh

Price
Best value to the most people
Affordable
RECOMMENDATIONS FOR AFC:
• Customer Satisfaction,
• Proper Advertisement campaign
• employees turnover rate
• No proper orientation
• No proper Performance Appraisal System
exists,
• Proper sitting
arrangements
• clearly communicate
employees benefits plan
• food preparation system to
ensure serve fresher, better
tasting food at the
customary speed,
• AFC should focus on
corporate social
responsibility